SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mercury Reduction and Energy 
Security Act of 2010''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The Environmental Protection Agency (``EPA'') was 
        required by the terms of the Clean Air Act Amendments of 1990 
        and a 1998 consent agreement to determine whether regulation of 
        mercury from electric utility steam generating units under 
        section 112 of the Clean Air Act was appropriate and necessary.
            (2) In a December 2000, regulatory finding, the EPA 
        concluded that regulation of mercury from electric utility 
        steam generating units was appropriate and necessary.
            (3) In 2005, the EPA withdrew its 2000 regulatory finding 
        in favor of a national cap-and-trade system for mercury 
        emissions from electric utility steam generating units, the 
        Clean Air Mercury Rule (``CAMR'').
            (4) CAMR was subsequently challenged in petitions for 
        review filed by 17 States.
            (5) The United States Court of Appeals for the District of 
        Columbia Circuit vacated the rule on February 8, 2008, finding 
        that once the EPA had listed electric utility steam generating 
        units as a source of hazardous air pollutants, it was required 
        by law to proceed with Maximum Achievable Control Technology 
        (``MACT'') regulations under section 112 of the Clean Air Act 
        unless it delisted the source category, under procedures set 
        forth in section 112(c)(9).
            (6) Mercury control technologies for coal-fired electric 
        utility steam generating units have advanced rapidly in the 
        last few years.
    (b) Purpose.--The purpose of this Act is to protect public health 
and welfare, and the environment, through mercury emission reductions 
from electric utility steam generating units.

SEC. 3. MERCURY EMISSION REDUCTIONS.

    The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at 
the end the following new title:

                    ``TITLE VII--MERCURY REDUCTIONS

``SEC. 701. DEFINITIONS.

    ``In this title:
            ``(1) Affected unit.--The term `affected unit' means a 
        coal-fired electric steam generating unit (including a 
        cogeneration unit) that--
                    ``(A) has a nameplate capacity greater than 25 
                megawatts; and
                    ``(B) generates electricity for sale.
            ``(2) Cogeneration unit.--The term `cogeneration unit' 
        means a stationary, coal-fired boiler or a stationary, coal-
        fired combustion turbine having equipment used to produce 
        electricity and useful thermal energy for industrial, 
        commercial, heating, or cooling purposes through the sequential 
        use of energy that produces during the 12-month period starting 
        on the date the unit first produces electricity and during any 
        calendar year after which the unit first produces electricity--
                    ``(A) for a topping-cycle cogeneration unit--
                            ``(i) useful thermal energy not less than 5 
                        percent of total energy output; and
                            ``(ii) useful power that, when added to 
                        one-half of useful thermal energy produced, is 
                        not less than--
                                    ``(I) 42.5 percent of total energy 
                                input if useful thermal energy produced 
                                is 15 percent or more of total energy 
                                output; or
                                    ``(II) 45 percent of total energy 
                                input if useful thermal energy produced 
                                is less than 15 percent of total energy 
                                output; and
                    ``(B) for a bottoming-cycle cogeneration unit, 
                useful power not less than 45 percent of total energy 
                input.
            ``(3) Inlet mercury.--The term `inlet mercury' means the 
        quantity of mercury found--
                    ``(A) in the as-fired coal used by an affected 
                unit; or
                    ``(B) for an affected unit using coal that is 
                subjected to an advanced coal cleaning technology, in 
                the as-mined coal used by the affected unit.

``SEC. 702. MERCURY REDUCTION PROGRAM.

    ``(a) Annual Limitation for Affected Units.--Except as provided in 
subsection (f), an affected unit in operation before or after the date 
of enactment of this title shall be subject to the following emission 
limitations on an annual average calendar year basis with respect to 
mercury:
            ``(1) Calendar years 2012 through 2014.--For the period 
        beginning on January 1, 2012, and ending on December 31, 2014, 
        the less stringent limitation of the following (calculated on a 
        one-year rolling average):
                    ``(A) 80 percent capture of inlet mercury.
                    ``(B) An emission rate of 1.60 pounds of mercury 
                per trillion British thermal units of input coal.
            ``(2) Calendar year 2015 and thereafter.--For calendar year 
        2015 and each calendar year thereafter, the less stringent 
        limitation of the following (calculated on a one-year rolling 
        average):
                    ``(A) 90 percent capture of inlet mercury.
                    ``(B) An emission rate of 0.80 pounds of mercury 
                per trillion British thermal units of input coal.
    ``(b) Averaging Across Units Within a Facility or State.--(1) An 
owner or operator of more than one affected unit at a single facility 
may demonstrate compliance with the applicable annual average emission 
limitations under subsection (a) by averaging emissions from all 
affected units at that facility, weighted by total input coal British 
thermal units.
    ``(2) An owner or operator of more than one affected unit or units 
within a State may demonstrate compliance with the applicable annual 
average emission limitations under subsection (a) by averaging 
emissions from all affected units owned or operated by that owner or 
operator within such State, weighted by total input coal British 
thermal units, if all affected units are owned or operated by the same 
entity.
    ``(3) If an affected unit is owned or operated by more than one 
entity, the State in which the affected unit is located shall allocate 
to each such owner or operator an appropriate portion of the generation 
from the affected unit for purposes of averaging emissions pursuant to 
paragraph (1) or (2).
    ``(c) Reference Methods for Measuring Mercury Emissions.--(1) The 
owner or operator of an affected unit shall use any of the following 
methods as a reference method to calibrate the instruments used to 
measure the mercury concentration in emissions from affected units:
                    ``(A) ASTM D6784-02, `Standard Test Method for 
                Elemental, Oxidized, Particle-Bound and Total Mercury 
                in Flue Gas Generated from Coal-Fired Stationary 
                Sources' (Ontario Hydro Method).
                    ``(B) 40 C.F.R. Part 60, Appendix A-8, Method 29, 
                `Determination of Metals Emissions from Stationary 
                Sources'.
                    ``(C) 40 C.F.R. Part 60, Appendix A-8, Method 30A, 
                `Determination of Total Vapor Phase Mercury Emissions 
                from Stationary Sources (Instrumental Analyzer 
                Procedure)'.
                    ``(D) 40 C.F.R. Part 60, Appendix A-8, Method 30B, 
                `Determination of Total Vapor Phase Mercury Emissions 
                from Coal-Fired Combustion Sources Using Carbon Sorbent 
                Traps'.
    ``(2) The Administrator may revise or supplement the list of 
permitted methods set forth in paragraph (1) to reflect improvements or 
other developments in the measurement of mercury emissions from coal-
fired electric steam generating units.
    ``(d) Monitoring System.--(1) The owner or operator of an affected 
unit shall install and operate a continuous emissions monitoring system 
(CEMS) to measure the quantity of mercury that is emitted from each 
affected unit.
    ``(2) For purposes of complying with paragraph (1), the owner or 
operator of an affected unit may use--
            ``(A) any CEMS that meets the requirements in Performance 
        Specification 12A (PS-12A), `Specifications and Test Procedures 
        for Total Vapor-Phase Mercury Continuous Monitoring Systems in 
        Stationary Sources';
            ``(B) a mercury concentration CEMS that meets the 
        requirements of 40 C.F.R. Part 75; or
            ``(C) a sorbent trap monitoring system that meets the 
        requirements of 40 C.F.R. 75.15 and 40 C.F.R. Part 75, Appendix 
        K, `Quality Assurance and Operating Procedures for Sorbent Trap 
        Monitoring Systems';
            ``(3) The Administrator may revise or supplement the list 
        of permitted monitoring systems set forth in paragraph (2) to 
        reflect improvements or other developments in mercury emissions 
        reduction technologies and mercury emissions monitoring 
        systems.
    ``(e) Excess Emissions.--(1) Except as provided in subsection (f), 
the owner or operator of an affected unit that emits mercury in excess 
of the applicable annual average emission limitation under subsection 
(a) shall pay an excess emissions penalty determined under paragraph 
(2).
    ``(2) The excess emissions penalty for mercury shall be an amount 
equal to $50,000 for each pound of mercury emitted in excess of the 
applicable annual average emission limitation under subsection (a). 
Such penalty shall be prorated for each fraction of a pound.
    ``(f) Best Practices.--(1) Effective, January 1, 2015, if the owner 
or operator of any affected unit fails to achieve the annual average 
emission limitation under subsection (a)(2), such owner or operator may 
notify the Administrator of such failure prior to March 1, 2015, and 
request an alternate emissions limitation for mercury with respect to 
such affected unit. Such owner or operator shall submit to the 
Administrator mercury emissions data measured by a CEMS that complies 
with subsection (d) for evaluation. If the Administrator determines 
that such owner or operator has properly installed and operated such 
CEMS and control technology designed to achieve such annual average 
emission limitation and is unable to meet such limitation, the 
Administrator may, not later than April 1, 2016, establish an alternate 
emissions limitation for mercury with respect to such affected unit 
based on the optimal performance of properly installed and operated 
control technology.
    ``(2) With respect to any affected unit, for any year for which an 
alternate emissions limitation for mercury is in place for such 
affected unit, the Administrator may review such alternate emissions 
limitation and impose a more stringent emissions limitation for mercury 
for the subsequent year based on new data regarding the demonstrated 
control capabilities of the type of control technology installed and 
operated at such affected unit.
    ``(3)(A) Except as provided in subparagraph (B), an owner or 
operator of an affected unit failing to achieve the annual average 
emission limitation under subsection (a)(2) that notifies the 
Administrator of such failure and requests and alternate emissions 
limitation for mercury pursuant to paragraph (1) shall be considered in 
compliance with this section (and not subject to any excess emissions 
penalty) for the period beginning on January 1, 2015, and ending on the 
date such an alternate emissions limitation is implemented.
    ``(B) An owner or operator described in subparagraph (A) shall pay 
an excess emissions penalty, as determined under subsection (e)(2), for 
the period described in such subparagraph, if such owner or operator 
operates or maintains the affected unit, including any associated air 
pollution control equipment, in a manner that is inconsistent with good 
air pollution control practices for the minimization of mercury 
emissions, as determined by the Administrator. In determining whether 
the owner or operator of the affected unit operates and maintains the 
affected unit in a manner that is consistent with good air pollution 
control practices for the minimization of mercury emissions, the 
Administrator may review the emissions monitoring data and operating 
and maintenance procedures of the affected unit and may inspect the 
affected unit.
    ``(4)(A) With respect to any affected unit for which an alternate 
emissions limitation for mercury is in place under this subsection, the 
owner or operator of such affected unit that emits mercury in excess of 
such alternate emissions limitation shall pay an excess emissions 
penalty determined under subparagraph (B).
    ``(B) The excess emissions penalty for mercury for an owner or 
operator of an affected unit described in subparagraph (A) shall be an 
amount equal to $50,000 for each pound of mercury emitted in excess of 
the alternate emissions limitation for mercury in place for such 
affected unit. Such penalty shall be prorated for each fraction of a 
pound.
    ``(g) Sole Limitation on Mercury.--This title shall apply the sole 
emission standard or limitation under this Act with regard to the 
emission of mercury from electric utility steam generating units and 
shall supersede any other such requirement under section 112 or any 
other provision of this Act.
    ``(h) Relationship to Other Law.--Except as otherwise specifically 
provided in this title, nothing in this title precludes a State or 
political subdivision of a State from adopting or enforcing any 
additional requirements for the control or abatement of mercury 
emissions, except that no State or political subdivision thereof shall 
adopt or attempt to enforce any standard relating to the reduction or 
control of mercury emissions from electric utility steam generating 
units that is less stringent than the standards provided in this 
title.''.
Output: Mercury Reduction and Energy Security Act of 2010 - Amends the Clean Air Act to require affected units (coal-fired electric steam generating units that have nameplate capacities greater than 25 megawatts and generate electricity for sale) to reduce mercury emissions by the less stringent limitation of: (1) 80% capture of inlet mercury or an emission rate of 1.6 pounds of mercury per trillion British thermal units (Btu) of input coal for the period beginning on January 1, 2012, and ending December 31, 2014; and (2) 90% capture of inlet mercury or an emission rate of 0.8 pounds of mercury per trillion Btu of input coal by 2015 and each year thereafter.

Specifies methods that owners or operators of affected units are required to use as reference methods in calibrating the instruments used to measure the mercury concentrations in emissions from affected units.

Establishes excess emissions penalties for mercury. Sets forth compliance provisions.

Authorizes: (1) owners or operators of affected units that fail to achieve such limitations to request an alternate emission limitation; (2) the Administrator of the Environmental Protection Agency (EPA) to establish alternate limitations if the Administrator determines that the owner or operator has properly installed and operated continuous emissions monitoring system and control technology designed to achieve such limitations and is unable to achieve such limitations; and (3) the Administrator, after granting alternate limitations, to impose more stringent emissions limitations in subsequent years. Makes such alternate limitations effective January 1, 2015.

Provides that this Act supersedes any other requirement in such Act with regard to the emission of mercury from electric utility steam generating units.