S 1168 ISCommentsClose CommentsPermalink

To amend the Clean Air Act to establish a regulatory program for sulfur dioxide, nitrogen oxides, mercury, and carbon dioxide emissions from the electric generating sector.CommentsClose CommentsPermalink

April 19, 2007

Mr. ALEXANDER (for himself and Mr. LIEBERMAN) introduced the following bill; which was read twice and referred to the Committee on Environment and Public WorksCommentsClose CommentsPermalink

To amend the Clean Air Act to establish a regulatory program for sulfur dioxide, nitrogen oxides, mercury, and carbon dioxide emissions from the electric generating sector.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Clean Air/Climate Change Act of 2007'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Findings and purposes.CommentsClose CommentsPermalink

TITLE I--GENERAL PROVISIONS

Sec. 101. New source performance standard.CommentsClose CommentsPermalink





Sec. 102. New source review program.CommentsClose CommentsPermalink





Sec. 103. Integrated air quality planning for the electric generating sector.CommentsClose CommentsPermalink





Sec. 104. Revisions to sulfur dioxide allowance program.CommentsClose CommentsPermalink





Sec. 105. Air quality forecasts and warnings.CommentsClose CommentsPermalink





Sec. 106. Relationship to other law.CommentsClose CommentsPermalink

TITLE II--GREENHOUSE GAS OFFSETS

Sec. 201. Greenhouse gas offsets.CommentsClose CommentsPermalink

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings- Congress finds that--CommentsClose CommentsPermalink





(1) in 1992, the United States became a signatory to the United Nations Framework Convention on Climate Change in recognition of the need to begin to decrease greenhouse gas emission levels to 1990 levels;CommentsClose CommentsPermalink





(2) fossil fuel-fired electric generating sources, consisting of units fueled by coal, fuel oil, and natural gas, produce nearly 2/3 of the electricity generated in the United States;CommentsClose CommentsPermalink





(3) fossil fuel-fired electric generating units produce approximately 67 percent of the total sulfur dioxide emissions, 23 percent of the total nitrogen oxides emissions, 40 percent of the total mercury emissions, and 40 percent of the total carbon dioxide emissions in the United States;CommentsClose CommentsPermalink





(4) as of the date of enactment of this Act, nearly 3/4 of all coal-fired electricity generating units are more than 30 years old;CommentsClose CommentsPermalink





(5)(A) many electric generating units have been exempt from the emission limitations applicable to new units based on the expectation that over time the units would be retired or updated with new pollution control equipment; butCommentsClose CommentsPermalink





(B) many of the exempted units continue to operate and emit pollutants at relatively high rates;CommentsClose CommentsPermalink





(6) many owners of electric generating units have failed--CommentsClose CommentsPermalink





(A) to install best available control technology for emissions reductions; andCommentsClose CommentsPermalink





(B) to retire the units, as anticipated by Congress in the new source review provisions of the prevention of significant deterioration and nonattainment programs of the Clean Air Act (42 U.S.C. 7401 et seq.);CommentsClose CommentsPermalink





(7) the Clean Air Act (42 U.S.C. 7401 et seq.) regulates substances (including carbon dioxide) that--CommentsClose CommentsPermalink





(A) are emitted into the ambient air; andCommentsClose CommentsPermalink





(B) affect the weather and the climate;CommentsClose CommentsPermalink





(8)(A) as of the date of enactment of this Act--CommentsClose CommentsPermalink





(i) many class I areas (as designated under section 162(a) of the Clean Air Act (42 U.S.C. 7472(a))) are impaired by haze pollution;CommentsClose CommentsPermalink





(ii) the ecosystems of many class I areas are adversely affected by deposits of acidic and toxic compounds; andCommentsClose CommentsPermalink





(iii) the air quality of many class I areas fails to meet national ambient air quality standards; andCommentsClose CommentsPermalink





(B)(i) fossil-fuel fired electric generating units are a major source of air pollution impacting class I areas; andCommentsClose CommentsPermalink





(ii) proposed new fossil-fuel fired electric generating units threaten to increase air pollution in class I areas throughout the United States;CommentsClose CommentsPermalink





(9) according to the Energy Outlook for 2006 of the Energy Information Administration, carbon dioxide emissions from electric generating units in the Unites States have increased by 32 percent during the period of 1990 through 2006 to at least 2,300,000,000 metric tons of carbon dioxide in 2006;CommentsClose CommentsPermalink





(10) the ability of owners of electric generating units to plan effectively for the future is impeded by the uncertainties surrounding future environmental regulatory requirements;CommentsClose CommentsPermalink





(11) according to the National Energy Technology Laboratory of the Department of Energy--CommentsClose CommentsPermalink





(A) as of the date of enactment of this Act, 159 new coal-fired electric generating units are proposed to be constructed, which would produce 96 gigawatts of new electric generating capacity; andCommentsClose CommentsPermalink





(B) if the units described in subparagraph (A) are constructed, the units would produce--CommentsClose CommentsPermalink





(i) an incremental increase of 500,000,000 tons of carbon dioxide per year from the production by the power sector in the United States as in existence on the date of enactment of this Act; andCommentsClose CommentsPermalink





(ii) an estimated 30,000,000,000 additional tons of carbon dioxide over the course of the useful lives of the units (assuming a lifespan of 60 years);CommentsClose CommentsPermalink





(12) by December 31, 2015, emissions of carbon dioxide from the United States electric utility sector should be limited to 2,100,000,000 metric tons;CommentsClose CommentsPermalink





(13) a report of the Congressional Budget Office, dated September 19, 2006, concluded that--CommentsClose CommentsPermalink





(A) relying exclusively on research and development funding is not the most effective strategy for reducing greenhouse gas emissions; andCommentsClose CommentsPermalink





(B) combining research and development funding with a gradually-increasing limitation on emissions is a more cost-effective approach;CommentsClose CommentsPermalink





(14)(A) agriculture can be part of the solution to reducing greenhouse gas emissions;CommentsClose CommentsPermalink





(B) less productive agricultural land can be reforested with carbon dioxide-consuming trees;CommentsClose CommentsPermalink





(C) farming practices can be improved to increase the absorption and retention of carbon in agricultural soils;CommentsClose CommentsPermalink





(D) biomass from agricultural sources (including corn and grass) can be used to produce biofuels that can take the place of high-carbon fossil fuels used in transportation and power generation; andCommentsClose CommentsPermalink





(E) many of the farming practices and land use changes involved in achieving those reductions have multiple benefits, including--CommentsClose CommentsPermalink





(i) improving soil, water, and air quality;CommentsClose CommentsPermalink





(ii) increasing wildlife habitat; andCommentsClose CommentsPermalink





(iii) providing additional recreational opportunities; andCommentsClose CommentsPermalink





(15) States and regions have adopted programs to address carbon dioxide emissions from electric generating units, and Federal regulations relating to carbon dioxide emissions should take those programs into consideration.CommentsClose CommentsPermalink





(b) Purposes- The purposes of this Act are--CommentsClose CommentsPermalink





(1) to protect and preserve the environment and safeguard public health by ensuring that substantial emission reductions are achieved at fossil fuel-fired electric generating units;CommentsClose CommentsPermalink





(2) to ensure that air quality of national parks and all other class I areas (as designated by section 162(a) of the Clean Air Act (42 U.S.C. 7472(a))) affected by emissions from fossil fuel-fired electric generating units is significantly improved;CommentsClose CommentsPermalink





(3) to reduce significantly the quantities of mercury, sulfur dioxide, nitrogen oxides, and carbon dioxide that enter the environment as a result of the combustion of fossil fuels;CommentsClose CommentsPermalink





(4) to encourage the development and use of renewable energy;CommentsClose CommentsPermalink





(5) to internalize the cost of protecting the values of public health, air, land, and water quality;CommentsClose CommentsPermalink





(6) to provide a period of environmental regulatory stability for owners and operators of electric generating units so as to promote improved management of existing assets and new capital investments; andCommentsClose CommentsPermalink





(7) to achieve emission reductions from electric generating units in a cost-effective manner.CommentsClose CommentsPermalink

TITLE I--GENERAL PROVISIONS

SEC. 101. NEW SOURCE PERFORMANCE STANDARD.

Section 111 of the Clean Air Act (42 U.S.C. 7411) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(k) Standard of Performance for New Electric Generating Facilities-CommentsClose CommentsPermalink





`(1) IN GENERAL- Each electric generating unit constructed or modified after January 1, 2015, shall meet a standard of performance equivalent to an emission limitation of 1,100 pounds of carbon dioxide per megawatt-hour or less.CommentsClose CommentsPermalink





`(2) ELIGIBILITY FOR CARBON DIOXIDE ALLOWANCES- Beginning on January 1, 2007, each of the first 30 electric generating units to achieve the standard of performance described in paragraph (1) (or a revised standard under paragraph (4), as applicable) shall be eligible to participate in the Climate Champions Program under section 707.CommentsClose CommentsPermalink





`(3) TREATMENT OF CERTAIN CARBON DIOXIDE- Carbon dioxide that is injected into a geological formation in a manner that prevents any release of the carbon dioxide into the atmosphere shall not be considered to be carbon dioxide emissions from an electric generating unit for purposes of the standard of performance under paragraph (1).CommentsClose CommentsPermalink





`(4) REVIEW-CommentsClose CommentsPermalink





`(A) IN GENERAL- Not later than January 1, 2015, and every 8 years thereafter, the Administrator shall review the applicable standards of performance for new electric generating units with respect to carbon dioxide emissions to determine whether the emission limitation for the units under paragraph (1) should be decreased, based on the best available technological system of continuous emission reduction.CommentsClose CommentsPermalink





`(B) TREATMENT- A determination by the Administrator under subparagraph (A) shall be--CommentsClose CommentsPermalink





`(i) published in the Federal Register not later than the deadline described in that subparagraph for the applicable review; andCommentsClose CommentsPermalink





`(ii) considered to be final agency action for purposes of section 307(b)(1).'.CommentsClose CommentsPermalink

SEC. 102. NEW SOURCE REVIEW PROGRAM.

Section 165 of the Clean Air Act (42 U.S.C. 7475) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(f) Revisions to New Source Review Program-CommentsClose CommentsPermalink





`(1) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink





`(A) AFFECTED UNIT- The term `affected unit' has the meaning given the term in section 701.CommentsClose CommentsPermalink





`(B) NEW SOURCE REVIEW PROGRAM- The term `new source review program' means the program to carry out this part and part D.CommentsClose CommentsPermalink





`(2) PERFORMANCE STANDARDS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Except as provided in subparagraph (B), beginning January 1, 2020, and on each January 1 thereafter, each affected unit that has been in operation 40 or more years as of that January 1 shall meet performance standards of--CommentsClose CommentsPermalink





`(i) 2 lbs/MWh for sulfur dioxide; andCommentsClose CommentsPermalink





`(ii) 1 lbs/MWh for nitrogen oxides.CommentsClose CommentsPermalink





`(B) EXCEPTION-CommentsClose CommentsPermalink





`(i) IN GENERAL- Notwithstanding subparagraph (A), an affected unit that, as of January 1, 2020, is required to meet a more stringent performance standard than the applicable standard under subparagraph (A) shall continue to meet the more stringent standard.CommentsClose CommentsPermalink





`(ii) MODIFICATION OF AFFECTED UNITS- The requirements of this section shall not affect in any way any requirement under section 111(a)(4), this part, or part D governing modifications of major stationary sources.CommentsClose CommentsPermalink





`(3) NO EFFECT ON OTHER REQUIREMENTS AND RETENTION OF STATE AUTHORITY- Nothing in this subsection affects--CommentsClose CommentsPermalink





`(A) any State authority under section 116; orCommentsClose CommentsPermalink





`(B) the obligation of any State or local government or any major emitting facility to comply with the requirements of this section.'.CommentsClose CommentsPermalink

SEC. 103. INTEGRATED AIR QUALITY PLANNING FOR THE ELECTRIC GENERATING SECTOR.

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

`TITLE VII--INTEGRATED AIR QUALITY PLANNING FOR THE ELECTRIC GENERATING SECTOR

`TITLE VII--INTEGRATED AIR QUALITY PLANNING FOR THE ELECTRIC GENERATING SECTOR

`Sec. 701. Definitions.CommentsClose CommentsPermalink





`Sec. 702. National pollutant tonnage limitations.CommentsClose CommentsPermalink





`Sec. 703. Nitrogen oxide trading program.CommentsClose CommentsPermalink





`Sec. 704. Mercury program.CommentsClose CommentsPermalink





`Sec. 705. Carbon dioxide allowance trading program.CommentsClose CommentsPermalink





`Sec. 706. Conventional pulverized coal facilities.CommentsClose CommentsPermalink





`Sec. 707. Climate Champions Program.CommentsClose CommentsPermalink





`Sec. 708. Auction of carbon dioxide allowances.CommentsClose CommentsPermalink

`SEC. 701. DEFINITIONS.

`In this title:CommentsClose CommentsPermalink





`(1) AFFECTED SOURCE- The term `affected source' means a source that includes 1 or more affected units.CommentsClose CommentsPermalink





`(2) AFFECTED UNIT-CommentsClose CommentsPermalink





`(A) CARBON DIOXIDE-CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `affected unit', with respect to carbon dioxide, means an electric generating unit that, on or after January 1, 2000, served a generator producing electricity for sale with a nameplate capacity of greater than 25 megawatts.CommentsClose CommentsPermalink





`(ii) EXCLUSION- The term `affected unit', with respect to carbon dioxide, does not include a unit that--CommentsClose CommentsPermalink





`(I) cogenerates useful steam and electricity; butCommentsClose CommentsPermalink





`(II) is not a cogeneration unit.CommentsClose CommentsPermalink





`(B) MERCURY-CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `affected unit', with respect to mercury, means a coal-fired electric generating unit that, on or after January 1, 1985, served a generator producing electricity for sale with a nameplate capacity greater than 25 megawatts.CommentsClose CommentsPermalink





`(ii) EXCLUSION- The term `affected unit', with respect to mercury, does not include a unit that--CommentsClose CommentsPermalink





`(I) cogenerates useful steam and electricity; butCommentsClose CommentsPermalink





`(II) is not a cogeneration unit.CommentsClose CommentsPermalink





`(C) NITROGEN OXIDES-CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `affected unit', with respect to nitrogen oxides, means a fossil fuel-fired electric generating unit that, on or after January 1, 1985, served a generator producing electricity for sale with a nameplate capacity greater than 25 megawatts.CommentsClose CommentsPermalink





`(ii) EXCLUSION- The term `affected unit', with respect to nitrogen oxides, does not include a unit that--CommentsClose CommentsPermalink





`(I) cogenerates useful steam and electricity; butCommentsClose CommentsPermalink





`(II) is not a cogeneration unit.CommentsClose CommentsPermalink





`(D) SULFUR DIOXIDE- The term `affected unit', with respect to sulfur dioxide, has the meaning given the term in section 402.CommentsClose CommentsPermalink





`(3) CAIR- The term `CAIR' means the rule promulgated by the Administrator entitled the `Clean Air Interstate Rule' (70 Fed. Reg. 25162 (May 12, 2005)) (as in effect on the date of enactment of this title).CommentsClose CommentsPermalink





`(4) CAIR STATE- The term `CAIR State' means each State that is subject to the annual emission limitation and allowance trading program for nitrogen oxides and sulfur dioxide under CAIR, including, as of the date of enactment of this Act--CommentsClose CommentsPermalink





`(A) Alabama;CommentsClose CommentsPermalink





`(B) Delaware;CommentsClose CommentsPermalink





`(C) the District of Columbia;CommentsClose CommentsPermalink





`(D) Florida;CommentsClose CommentsPermalink





`(E) Georgia;CommentsClose CommentsPermalink





`(F) Illinois;CommentsClose CommentsPermalink





`(G) Indiana;CommentsClose CommentsPermalink





`(H) Iowa;CommentsClose CommentsPermalink





`(I) Kentucky;CommentsClose CommentsPermalink





`(J) Louisiana;CommentsClose CommentsPermalink





`(K) Maryland;CommentsClose CommentsPermalink





`(L) Michigan;CommentsClose CommentsPermalink





`(M) Minnesota;CommentsClose CommentsPermalink





`(N) Mississippi;CommentsClose CommentsPermalink





`(O) Missouri;CommentsClose CommentsPermalink





`(P) New Jersey;CommentsClose CommentsPermalink





`(Q) New York;CommentsClose CommentsPermalink





`(R) North Carolina;CommentsClose CommentsPermalink





`(S) Ohio;CommentsClose CommentsPermalink





`(T) Pennsylvania;CommentsClose CommentsPermalink





`(U) South Carolina;CommentsClose CommentsPermalink





`(V) Tennessee;CommentsClose CommentsPermalink





`(W) Texas;CommentsClose CommentsPermalink





`(X) Virginia;CommentsClose CommentsPermalink





`(Y) West Virginia; andCommentsClose CommentsPermalink





`(Z) Wisconsin.CommentsClose CommentsPermalink





`(5) CARBON DIOXIDE ALLOWANCE- The term `carbon dioxide allowance' means an authorization allocated by the Administrator under this title to emit 1 ton of carbon dioxide during or after a specified calendar year.CommentsClose CommentsPermalink





`(6) COGENERATION UNIT- The term `cogeneration unit' means a unit that--CommentsClose CommentsPermalink





`(A) cogenerates--CommentsClose CommentsPermalink





`(i) useful steam; andCommentsClose CommentsPermalink





`(ii) electricity; andCommentsClose CommentsPermalink





`(B) supplies, in any calendar year, to any utility power distribution system for sale--CommentsClose CommentsPermalink





`(i) more than 1/3 of the potential electric output capacity of the unit; andCommentsClose CommentsPermalink





`(ii) more than 219,000 megawatt-hours of electrical output.CommentsClose CommentsPermalink





`(7) DESIGNATED REPRESENTATIVE- The term `designated representative' means a responsible person or official authorized by the owner or operator of an affected source to represent the owner or operator in any matter relating to--CommentsClose CommentsPermalink





`(A) the holding, transfer, or disposition of an allowance under this title; orCommentsClose CommentsPermalink





`(B) any submission concerning, and compliance with, any requirement of this title for the affected source.CommentsClose CommentsPermalink





`(8) FOSSIL FUEL- The term `fossil fuel' includes--CommentsClose CommentsPermalink





`(A) natural gas;CommentsClose CommentsPermalink





`(B) petroleum;CommentsClose CommentsPermalink





`(C) coal; andCommentsClose CommentsPermalink





`(D) any form of solid, liquid, or gaseous fuel derived from a material described in any of subparagraphs (A) through (C).CommentsClose CommentsPermalink





`(9) FOSSIL FUEL-FIRED- The term `fossil fuel-fired' means the combustion of any quantity of a fossil fuel during any calendar year.CommentsClose CommentsPermalink





`(10) GREENHOUSE GAS- The term `greenhouse gas' means any of--CommentsClose CommentsPermalink





`(A) carbon dioxide;CommentsClose CommentsPermalink





`(B) methane (CH4);CommentsClose CommentsPermalink





`(C) nitrous oxide (N20);CommentsClose CommentsPermalink





`(D) hydrofluorocarbons (HFC-23, HFC-32, HFC-41, HFC-43-10mee, HFC-125, HFC-134, HFC-134a, HFC-152a, HFC-143, HFC-143a, HFC-227ea, HFC-236fa, and HFC-245ca);CommentsClose CommentsPermalink





`(E) perfluorocarbons (CF4, C2F6, C3F8, C4F10, C-C4F8, C5F12, and C6F14); andCommentsClose CommentsPermalink





`(F) sulfur hexafluoride (SF6).CommentsClose CommentsPermalink





`(11) NEW UNIT- The term `new unit' means an affected unit that has operated for not more than 3 years and is not eligible to receive nitrogen oxide allowances under the regulations promulgated by the Administrator pursuant to section 705(b).CommentsClose CommentsPermalink





`(12) NITROGEN OXIDE ALLOWANCE- The term `nitrogen oxide allowance' means an authorization allocated by the Administrator under this title to emit 1 ton of nitrogen oxides during or after a specified calendar year.CommentsClose CommentsPermalink





`(13) SEQUESTRATION- The term `sequestration' means the action of sequestering carbon dioxide by--CommentsClose CommentsPermalink





`(A) enhancing a natural carbon dioxide sink (such as through afforestation); orCommentsClose CommentsPermalink





`(B)(i) capturing the carbon dioxide emitted from relevant industrial units and a fossil fuel-based energy system; andCommentsClose CommentsPermalink





`(ii)(I) storing the carbon dioxide in a geologic formation in a manner that prevents any release of the carbon dioxide; orCommentsClose CommentsPermalink





`(II) converting the carbon dioxide to a benign solid material through a biological or chemical process.CommentsClose CommentsPermalink





`(14) SULFUR DIOXIDE ALLOWANCE- The term `sulfur dioxide allowance' has the meaning given the term `allowance' in section 402.CommentsClose CommentsPermalink





`(15) UNIT- The term `unit' means a combustion device.CommentsClose CommentsPermalink





`(16) USEFUL ENERGY- The term `useful energy', with respect to a cogeneration unit, means the total quantity of useful energy (including electrical generation and useful steam) as determined by the Administrator.CommentsClose CommentsPermalink





`(17) ZONE 1 STATE- The term `Zone 1 State' means--CommentsClose CommentsPermalink





`(A) any CAIR State;CommentsClose CommentsPermalink





`(B) Arkansas;CommentsClose CommentsPermalink





`(C) Connecticut;CommentsClose CommentsPermalink





`(D) Massachusetts;CommentsClose CommentsPermalink





`(E) Maine;CommentsClose CommentsPermalink





`(F) New Hampshire;CommentsClose CommentsPermalink





`(G) Rhode Island; andCommentsClose CommentsPermalink





`(H) Vermont.CommentsClose CommentsPermalink





`(18) ZONE 2 STATE- The term `Zone 2 State' means any of the 48 contiguous States that is not a Zone 1 State.CommentsClose CommentsPermalink

`SEC. 702. NATIONAL POLLUTANT TONNAGE LIMITATIONS.

`(a) Sulfur Dioxide- The annual tonnage limitation for emissions of sulfur dioxide shall be equal to--CommentsClose CommentsPermalink





`(1) for each of calendar years 2010 through 2014, for affected units subject to CAIR, 3,500,000 tons, in accordance with CAIR; andCommentsClose CommentsPermalink





`(2) for calendar year 2015 and each calendar year thereafter, for all affected units in the 48 contiguous States, 2,000,000 tons.CommentsClose CommentsPermalink





`(b) Nitrogen Oxides- The Administrator shall allocate an annual tonnage limitation for emissions of nitrogen oxides in a quantity that is equal to--CommentsClose CommentsPermalink





`(1) for each of calendar years 2009 through 2014, for affected units subject to CAIR, 1,450,000 tons; andCommentsClose CommentsPermalink





`(2) for calendar year 2015 and each calendar year thereafter--CommentsClose CommentsPermalink





`(A) for affected units in Zone 1 States, 1,300,000 tons; andCommentsClose CommentsPermalink





`(B) for affected units in Zone 2 States, 320,000 tons.CommentsClose CommentsPermalink





`(c) Mercury- The emission of mercury from affected units shall be limited in accordance with section 704.CommentsClose CommentsPermalink





`(d) Carbon Dioxide- The annual tonnage limitation for emissions of carbon dioxide from affected units in the 48 contiguous States shall be equal to, as determined by the Administrator based on certified and quality-assured continuous emissions monitoring data for carbon dioxide reported to the Administrator by affected units in accordance with this Act--CommentsClose CommentsPermalink





`(1) for each of calendar years 2011 through 2014, 2,300,000,000 metric tons;CommentsClose CommentsPermalink





`(2) for each of calendar years 2015 through 2019, 2,100,000,000 metric tons;CommentsClose CommentsPermalink





`(3) for each calendar years 2020 through 2024, 1,800,000,000 metric tons; andCommentsClose CommentsPermalink





`(4) for calendar year 2025 and each calendar year thereafter, 1,500,000,000 metric tons.CommentsClose CommentsPermalink





`(e) Reduction of Emissions From Specified Affected Units- Notwithstanding the annual tonnage limitations and mercury emissions requirements established under this section, the Federal Government or a State government may require that emissions from a specified affected unit be reduced.CommentsClose CommentsPermalink





`(f) CAIR States-CommentsClose CommentsPermalink





`(1) IN GENERAL- Each CAIR State shall comply with the applicable requirements of CAIR.CommentsClose CommentsPermalink





`(2) EXCEPTION- Notwithstanding paragraph (1), CAIR shall not apply to--CommentsClose CommentsPermalink





`(A) annual emissions of nitrogen oxides emitted during calendar year 2015 and thereafter; orCommentsClose CommentsPermalink





`(B) annual emissions of sulfur dioxide emitted during calendar year 2015 and thereafter.CommentsClose CommentsPermalink

`SEC. 703. NITROGEN OXIDE TRADING PROGRAM.

`(a) Regulations-CommentsClose CommentsPermalink





`(1) IN GENERAL- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to establish for affected units in the 48 contiguous States a nitrogen oxide allowance trading program.CommentsClose CommentsPermalink





`(2) REQUIREMENTS- Regulations promulgated under paragraph (1) shall establish requirements for the allowance trading program under this section, including requirements concerning--CommentsClose CommentsPermalink





`(A)(i) the allocation, issuance, recording, tracking, transfer, and use of nitrogen oxide allowances; andCommentsClose CommentsPermalink





`(ii) the public availability of all information concerning the activities described in clause (i) that is not confidential business information;CommentsClose CommentsPermalink





`(B) compliance with subsection (d)(1);CommentsClose CommentsPermalink





`(C) the monitoring and reporting of emissions under paragraphs (2) and (3) of subsection (d); andCommentsClose CommentsPermalink





`(D) excess emission penalties under subsection (d)(4).CommentsClose CommentsPermalink





`(b) Nitrogen Oxide Allocations-CommentsClose CommentsPermalink





`(1) TIMING OF ALLOCATIONS- Not later than 2 years after the date of enactment of this title, the Administrator shall allocate nitrogen oxide allowances to affected units.CommentsClose CommentsPermalink





`(2) ALLOCATIONS TO AFFECTED UNITS-CommentsClose CommentsPermalink





`(A) ZONE 1 STATES- The Administrator shall allocate, to each affected unit in a Zone 1 State, a quantity of nitrogen oxide allowances that is equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(i) the quantity of nitrogen oxide allowances available for allocation under section 702(b)(2)(A); andCommentsClose CommentsPermalink





`(ii) the quotient obtained by dividing--CommentsClose CommentsPermalink





`(I) the adjusted average heat input (measured in mmBtus), of the affected unit during calendar years 2006 through 2008; byCommentsClose CommentsPermalink





`(II) the sum of the adjusted heat input quantities described in subclause (I) with respect to all affected units in all Zone 1 States.CommentsClose CommentsPermalink





`(B) ZONE 2 STATES- The Administrator shall allocate, to each affected unit in a Zone 2 State, a quantity of nitrogen oxide allowances that is equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(i) the quantity of nitrogen oxide allowances available for allocation under section 702(b)(2)(B); andCommentsClose CommentsPermalink





`(ii) the quotient obtained by dividing--CommentsClose CommentsPermalink





`(I) the adjusted average heat input (measured in mmBtus), of the affected unit during calendar years 2006 through 2008; byCommentsClose CommentsPermalink





`(II) the sum of the adjusted heat input quantities described in subclause (I) with respect to all affected units in all Zone 2 States.CommentsClose CommentsPermalink





`(C) ADJUSTED HEAT INPUT-CommentsClose CommentsPermalink





`(i) IN GENERAL- The adjusted heat input for a calendar year of an affected unit that begins operation before January 1, 2006, shall be equal to the product obtained by multiplying (using factors, emission rates, and categories of units determined by the Administrator)--CommentsClose CommentsPermalink





`(I) the heat input of the affected unit for the calendar year; andCommentsClose CommentsPermalink





`(II) a factor reflecting--CommentsClose CommentsPermalink

`(aa) the category of the affected unit, based on the types of fuels combusted by the affected unit during the calendar year; andCommentsClose CommentsPermalink

`(bb) the actual nitrogen oxides emission rate (expressed in tons of nitrogen oxides emitted per mmBtu) that is generally applicable to that category of affected units.CommentsClose CommentsPermalink

`(ii) AVERAGE- The average adjusted heat input of an affected unit for a 3-calendar year period described in subparagraph (A)(ii)(I) or (B)(ii)(I) shall be equal to the quotient obtained by dividing--CommentsClose CommentsPermalink





`(I) the sum of the adjusted heat input quantities, as determined under clause (i), for each calendar year of the 3-calendar year period; byCommentsClose CommentsPermalink





`(II) 3.CommentsClose CommentsPermalink





`(3) ADJUSTMENT OF ALLOCATIONS- If, for any calendar year, the total quantities of allowances allocated under paragraph (2) are not equal to the applicable quantities determined under section 702(b)(2), the Administrator shall adjust the quantities of allowances allocated to affected units on a pro rata basis so that the quantities are equal to the applicable quantities determined under section 702(b)(2).CommentsClose CommentsPermalink





`(4) ALLOWANCE NOT A PROPERTY RIGHT- A nitrogen oxide allowance--CommentsClose CommentsPermalink





`(A) is not a property right; andCommentsClose CommentsPermalink





`(B) may be terminated or limited by the Administrator.CommentsClose CommentsPermalink





`(5) NO JUDICIAL REVIEW- An allocation of nitrogen oxide allowances by the Administrator under this subsection, and a determination of a value used in calculating the allocation, shall not be subject to judicial review.CommentsClose CommentsPermalink





`(c) Nitrogen Oxide Allowance Transfer System-CommentsClose CommentsPermalink





`(1) USE OF ALLOWANCES- The regulations promulgated under subsection (a)(1) shall--CommentsClose CommentsPermalink





`(A) prohibit the use (but not the transfer in accordance with paragraph (3)) of any nitrogen oxide allowance before the calendar year for which the allowance is allocated;CommentsClose CommentsPermalink





`(B) provide that unused nitrogen oxide allowances may be carried forward and added to nitrogen oxide allowances allocated for subsequent years;CommentsClose CommentsPermalink





`(C) provide that unused nitrogen oxide allowances may be transferred by--CommentsClose CommentsPermalink





`(i) the person to which the allowances are allocated; orCommentsClose CommentsPermalink





`(ii) any person to which the allowances are transferred; andCommentsClose CommentsPermalink





`(D) provide that, to achieve compliance with paragraphs (1) and (4) of subsection (d)--CommentsClose CommentsPermalink





`(i) the owner and operator of an affected unit in a Zone 1 State shall use only nitrogen oxide allowances allocated to affected units in Zone 1 States; andCommentsClose CommentsPermalink





`(ii) the owner and operator of an affected unit in a Zone 2 State shall use only nitrogen oxide allowances allocated to affected units in Zone 2 States.CommentsClose CommentsPermalink





`(2) USE BY PERSONS TO WHICH ALLOWANCES ARE TRANSFERRED- Any person to which nitrogen oxide allowances are transferred under paragraph (1)(C)--CommentsClose CommentsPermalink





`(A) may use the nitrogen oxide allowances in the calendar year for which the nitrogen oxide allowances were allocated, or in a subsequent calendar year, to achieve compliance with subsection (d)(1); orCommentsClose CommentsPermalink





`(B) may transfer the nitrogen oxide allowances to any other person.CommentsClose CommentsPermalink





`(3) CERTIFICATION OF TRANSFER- A transfer of a nitrogen oxide allowance shall not take effect until a certification of the transfer, authorized by a responsible official of the person making the transfer, is received and recorded by the Administrator.CommentsClose CommentsPermalink





`(4) PERMIT REQUIREMENTS- An allocation or transfer of nitrogen oxide allowances to an affected unit shall, after recording by the Administrator, be considered to be part of the federally enforceable permit of the affected unit under this Act, without a requirement for any further review or revision of the permit.CommentsClose CommentsPermalink





`(d) Compliance and Enforcement-CommentsClose CommentsPermalink





`(1) IN GENERAL- For calendar year 2015 and each calendar year thereafter, the owner and operator of each affected source shall hold for the affected source and surrender to the Administrator a quantity of nitrogen oxide allowances that is equal to the total tons of nitrogen oxides emitted by the affected units of the affected source during the calendar year.CommentsClose CommentsPermalink





`(2) MONITORING SYSTEM- The Administrator shall promulgate regulations requiring--CommentsClose CommentsPermalink





`(A) installation, operation, reporting, and certification of continuous emissions monitoring systems, or any alternative monitoring system or methodology that, as determined by the Administrator, provides information with the same precision, reliability, accessibility, and timeliness as that provided by continuous emission monitoring system, to measure the quantity of nitrogen oxides that is emitted from each affected unit;CommentsClose CommentsPermalink





`(B) quality assurance, verification, and reporting of nitrogen oxides emissions at each affected unit; andCommentsClose CommentsPermalink





`(C) if continuous emission monitoring system data, or data from an alternative monitoring system approved by the Administrator, is not available for an affected unit during any period of a calendar year for which the data is required to be certified under this subsection, and if the owner or operator of the affected unit cannot provide information satisfactory to the Administrator on emissions during that period--CommentsClose CommentsPermalink





`(i) treatment of the affected unit as operating in an uncontrolled manner during the entire period for which the data was not available; andCommentsClose CommentsPermalink





`(ii) calculation of emissions for that period as prescribed by the Administrator.CommentsClose CommentsPermalink





`(3) REPORTING-CommentsClose CommentsPermalink





`(A) IN GENERAL- Not less often than quarterly, the designated representative of the owner or operator of an affected unit shall submit to the Administrator a report on the monitoring of emissions of nitrogen oxides carried out by the owner or operator in accordance with the regulations promulgated under paragraph (2).CommentsClose CommentsPermalink





`(B) AUTHORIZATION- Each report submitted under subparagraph (A) shall be authorized by the designated representative of the affected unit, who shall certify the accuracy of the report.CommentsClose CommentsPermalink





`(C) PUBLIC REPORTING- The Administrator shall make available to the public, through 1 or more published reports and 1 or more forms of electronic media, data concerning the emissions of nitrogen oxides from each affected unit.CommentsClose CommentsPermalink





`(4) EXCESS EMISSIONS- The owner and operator of an affected source the affected units of which emit, during a calendar year specified in paragraph (1), nitrogen oxides in excess of the nitrogen oxide allowances held for use by the affected source for the calendar year shall offset, and pay an excess emissions penalty for, the excess emissions by surrendering to the Administrator a quantity of nitrogen oxides allowances for the following calendar year, or such earlier period as the Administrator may prescribe, equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(A) the number of tons of the excess emissions; andCommentsClose CommentsPermalink





`(B) 2.CommentsClose CommentsPermalink





`(e) Effect- Nothing in this section limits or otherwise affects the application of section 113, 114, 120, or 304.CommentsClose CommentsPermalink

`SEC. 704. MERCURY PROGRAM.

`(a) Definition of Inlet Mercury- In this section, the term `inlet mercury' means the quantity of mercury found--CommentsClose CommentsPermalink





`(1) in the as-fired coal of an affected unit; orCommentsClose CommentsPermalink





`(2) for an affected unit using coal that is subjected to an advanced coal cleaning technology, in the as-mined coal of the affected unit.CommentsClose CommentsPermalink





`(b) Annual Limitation for Certain Units- An affected unit that begins operation on or after the date of enactment of this title shall be subject to the less stringent of the following emission limitations on an annual average calendar year basis with respect to inlet mercury:CommentsClose CommentsPermalink





`(1) 90 percent capture of inlet mercury.CommentsClose CommentsPermalink





`(2) An emission rate of 0.0060 lbs/GWh.CommentsClose CommentsPermalink





`(c) Annual Limitation for Existing Units- An affected unit in operation on 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 inlet mercury:CommentsClose CommentsPermalink





`(1) FIRST FULL CALENDAR YEAR BEGINNING 4 YEARS AFTER THE DATE OF ENACTMENT OF TITLE THROUGH 2014- For each of the first full calendar year beginning 4 years after the date of enactment of this title through calendar year 2014, the less stringent limitation of--CommentsClose CommentsPermalink





`(A) 60 percent capture of inlet mercury; andCommentsClose CommentsPermalink





`(B) an emission rate of 0.02 lbs/GWh.CommentsClose CommentsPermalink





`(2) 2015 AND THEREAFTER- Beginning on January 1, 2015, the less stringent limitation of--CommentsClose CommentsPermalink





`(A) 90 percent capture of inlet mercury; andCommentsClose CommentsPermalink





`(B) an emission rate of 0.0060 lbs/GWh.CommentsClose CommentsPermalink





`(d) Averaging Across Units- An owner or operator of an affected unit may demonstrate compliance with the annual average limitations under subsections (b) and (c) by averaging emissions from all affected units at an affected source.CommentsClose CommentsPermalink





`(e) Monitoring System- The Administrator shall promulgate regulations requiring--CommentsClose CommentsPermalink





`(1) installation, operation, reporting, and certification of continuous emissions monitoring systems, or any alternative monitoring system or methodology that, as determined by the Administrator, provides information with the same precision, reliability, accessibility, and timeliness as that provided by continuous emission monitors, to measure the quantity of mercury emitted from each affected unit;CommentsClose CommentsPermalink





`(2) quality assurance, verification, and reporting of mercury emissions data at each affected unit; andCommentsClose CommentsPermalink





`(3) if continuous emission monitoring system data, or data from an alternative monitoring system approved by the Administrator, is not available for an affected unit during any period of a calendar year for which the data is required to be certified under this subsection, and if the owner or operator of the affected unit cannot provide information satisfactory to the Administrator on emissions during that period--CommentsClose CommentsPermalink





`(A) treatment of the affected unit as operating in an uncontrolled manner during the entire period for which the data was not available; andCommentsClose CommentsPermalink





`(B) calculation of emissions for that period as prescribed by the Administrator.CommentsClose CommentsPermalink





`(f) Reporting-CommentsClose CommentsPermalink





`(1) IN GENERAL- Not less often than quarterly, the owner or operator of an affected unit shall submit to the Administrator a report on the monitoring of emissions of mercury carried out by the owner or operator in accordance with the regulations promulgated under subsection (e).CommentsClose CommentsPermalink





`(2) AUTHORIZATION- Each report submitted under paragraph (1) shall be authorized by a designated representative of the affected unit, who shall certify the accuracy of the report.CommentsClose CommentsPermalink





`(3) PUBLIC REPORTING- The Administrator shall make available to the public, through 1 or more published reports and 1 or more forms of electronic media, data concerning the emission of mercury from each affected unit.CommentsClose CommentsPermalink





`(g) Excess Emissions-CommentsClose CommentsPermalink





`(1) PENALTY-CommentsClose CommentsPermalink





`(A) IN GENERAL- The owner and operator of an affected unit described in subparagraph (B) shall pay an excess emissions penalty determined under paragraph (2).CommentsClose CommentsPermalink





`(B) DESCRIPTION OF AFFECTED UNITS- An affected unit referred to in subparagraph (A) is an affected unit that--CommentsClose CommentsPermalink





`(i) for an affected unit demonstrating compliance at the unit level, emits mercury in excess of an emission limitation described in subsection (b) or (c); orCommentsClose CommentsPermalink





`(ii) for an affected unit demonstrating compliance under subsection (d), is part of an affected source that emits mercury in excess of the emission limitation applicable to the affected source.CommentsClose CommentsPermalink





`(2) DETERMINATION OF EXCESS EMISSIONS PENALTY- The excess emissions penalty for mercury shall be an amount equal to $50,000 for each pound of mercury emitted in excess of the emission limitation described in subsection (b) or (c), as pro-rated for each fraction of a pound.CommentsClose CommentsPermalink





`(3) PENALTY ADJUSTMENT- For each fiscal year, the Administrator, by regulation, shall adjust the penalty specified in paragraph (2) to reflect changes for the 12-month period ending the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.CommentsClose CommentsPermalink





`(h) Petition for Extension- The Administrator, or the appropriate agency of a State with a program approved under title IV, may issue for an affected unit in existence on the date of enactment of this title a permit that provides an extension of not more than 1 additional year of a deadline for compliance with any standard under this section, if the Administrator or agency determines the extension is necessary for the installation at the affected unit of an appropriate control technology.CommentsClose CommentsPermalink





`(i) Effect of Section- Nothing in this section limits or otherwise affects the application of section 113, 114, 120, or 304.CommentsClose CommentsPermalink

`SEC. 705. CARBON DIOXIDE ALLOWANCE TRADING PROGRAM.

`(a) Regulations-CommentsClose CommentsPermalink





`(1) IN GENERAL- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to establish a carbon dioxide allowance trading program for affected units in the United States.CommentsClose CommentsPermalink





`(2) REQUIREMENTS-CommentsClose CommentsPermalink





`(A) OTHER REQUIRED PROGRAMS- In promulgating regulations pursuant to paragraph (1), the Administrator shall ensure that no carbon dioxide allowance is provided for an offset project the greenhouse gas reductions under which are effectively required by any other Federal, State, or local law (including regulations) or judicial or administrative order.CommentsClose CommentsPermalink





`(B) OTHER STANDARDS- In promulgating regulations pursuant to paragraph (1), the Administrator shall require that--CommentsClose CommentsPermalink





`(i) each reduction or removal of greenhouse gas emissions for which an offset project receives carbon dioxide allowances under this section--CommentsClose CommentsPermalink





`(I) is not double counted under this or any other allowance program;CommentsClose CommentsPermalink





`(II) is a permanent reduction in greenhouse gas emissions; andCommentsClose CommentsPermalink





`(III) is monitored as the Administrator determines to be appropriate with respect to the specific offset project type and quantity of carbon dioxide allowances provided for the reduction; andCommentsClose CommentsPermalink





`(ii) each offset project shall reflect a level of performance that, with respect to emission reductions or a technology or practice, is significantly better than average, as compared with recently carried out activities or practices.CommentsClose CommentsPermalink





`(3) STATE OFFSET METHODS- In promulgating regulations under paragraph (1), the Administrator shall take into consideration offset methods developed, as of the date of enactment of this title, by California or any other State pursuant to the Regional Greenhouse Gas Initiative or a similar regulatory program with of comparable rigor, as determined by the Administrator.CommentsClose CommentsPermalink





`(b) New Unit Reserve-CommentsClose CommentsPermalink





`(1) ESTABLISHMENT-CommentsClose CommentsPermalink





`(A) IN GENERAL- For each of calendar years 2011 through 2020, the Administrator shall establish, by regulation, a reserve of carbon dioxide allowances to be allocated to new affected units fueled by coal that meet the criteria under the Climate Champions Program under section 707 for the calendar year.CommentsClose CommentsPermalink





`(B) REQUIRED QUANTITY- For a calendar year described in subparagraph (A), the quantity of carbon dioxide allowances in the reserve established under this paragraph shall not exceed 5 percent of the annual tonnage limitation for carbon dioxide specified in section 702(d) for that calendar year.CommentsClose CommentsPermalink





`(2) REQUIRED ALLOCATIONS- For each of calendar years 2011 through 2014, the Administrator shall allocate allowances in the reserve established under paragraph (1) to each of the 30 entities identified under section 707(b)(1).CommentsClose CommentsPermalink





`(3) UNUSED CARBON DIOXIDE ALLOWANCES- For each calendar year, the Administrator shall reallocate, to all affected units, any unused carbon dioxide allowances from the new unit reserve established under paragraph (1) in the proportion that--CommentsClose CommentsPermalink





`(A) the number of carbon dioxide allowances allocated to each affected unit for the calendar year; bears toCommentsClose CommentsPermalink





`(B) the number of carbon dioxide allowances allocated to all affected units for the calendar year.CommentsClose CommentsPermalink





`(c) Carbon Dioxide Allocations-CommentsClose CommentsPermalink





`(1) ALLOCATIONS TO AFFECTED UNITS THAT ARE NOT NEW UNITS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Not later than 2 years after the date of enactment of this title, the Administrator shall allocate, to each affected unit that is not a new unit, a quantity of carbon dioxide allowances that is equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(i) the quantity of carbon dioxide allowances available for allocation under paragraph (2); andCommentsClose CommentsPermalink





`(ii) the quotient obtained by dividing--CommentsClose CommentsPermalink





`(I) the adjusted average heat input (measured in mmBtus), of the affected unit during any 3-consecutive-calendar-year period during the period beginning on January 1, 2000, and ending on December 31, 2007; andCommentsClose CommentsPermalink





`(II) the sum of the adjusted heat input quantities described in subclause (I) with respect to all affected units that are not new units.CommentsClose CommentsPermalink





`(B) ADJUSTED HEAT INPUT-CommentsClose CommentsPermalink





`(i) IN GENERAL- The adjusted heat input for a calendar year of an affected unit that begins operation before January 1, 2005, shall be equal to the product obtained by multiplying (using factors, emission rates, and categories of units determined by the Administrator)--CommentsClose CommentsPermalink





`(I) the heat input of the affected unit for the calendar year;CommentsClose CommentsPermalink





`(II) a factor reflecting the category of the affected unit, based on the types of fuels combusted by the affected unit during the calendar year; andCommentsClose CommentsPermalink





`(III) the actual carbon dioxide emission rate (expressed in tons of carbon dioxide emitted per mmBtu) that is generally applicable to that category of affected units.CommentsClose CommentsPermalink





`(ii) AVERAGE- The average adjusted heat input of an affected unit for a 3-calendar year period described in subparagraph (A)(ii)(I)(bb) shall be equal to the quotient obtained by dividing--CommentsClose CommentsPermalink





`(I) the sum of the adjusted heat input quantities, as determined under clause (i), for each calendar year of the 3-calendar year period; andCommentsClose CommentsPermalink





`(II) 3.CommentsClose CommentsPermalink





`(2) QUANTITY TO BE ALLOCATED- For each calendar year, the quantity of carbon dioxide allowances allocated under paragraph (1)(A) to affected units that are not new units shall be equal to the difference between--CommentsClose CommentsPermalink





`(A) the annual tonnage limitation for emissions of carbon dioxide from affected units specified in section 702(d) for the calendar year; andCommentsClose CommentsPermalink





`(B) the sum of--CommentsClose CommentsPermalink





`(i) the quantity of carbon dioxide allowances placed in the new unit reserve established under subsection (b) for the calendar year; andCommentsClose CommentsPermalink





`(ii) the quantity of carbon dioxide allowances made available for auction under section 708.CommentsClose CommentsPermalink





`(3) ADJUSTMENT OF ALLOCATIONS- If the total quantity of carbon dioxide allowances to be allocated under paragraph (1) for a calendar year is more than the total quantity of carbon dioxide allowances available for allocation under paragraph (2) for the calendar year, the Administrator shall allocate to each affected unit a quantity of carbon dioxide allowances equal to the proportion that--CommentsClose CommentsPermalink





`(A) the quantity of carbon dioxide allowances to be allocated to the affected unit under paragraph (1) for the calendar year; bears toCommentsClose CommentsPermalink





`(B) the total quantity of carbon dioxide allowances to be allocated to all affected units under paragraph (1) for the calendar year.CommentsClose CommentsPermalink





`(4) ALLOCATIONS TO NEW UNITS- The Administrator shall promulgate regulations to establish a methodology for allocating carbon dioxide allowances to new units from the new unit reserve under subsection (b).CommentsClose CommentsPermalink





`(d) Use and Transfer of Carbon Dioxide Allowances-CommentsClose CommentsPermalink





`(1) USE BEFORE APPLICABLE CALENDAR YEAR- A carbon dioxide allowance may not be used before the calendar year for which the carbon dioxide allowance was allocated.CommentsClose CommentsPermalink





`(2) TRANSFER-CommentsClose CommentsPermalink





`(A) IN GENERAL- Notwithstanding paragraph (1), carbon dioxide allowances may be transferred before the calendar year for which the carbon dioxide allowances were allocated.CommentsClose CommentsPermalink





`(B) LIMITATION- The transfer of a carbon dioxide allowance shall not take effect until receipt and recording by the Administrator of a certification of the transfer, which is executed by an authorized official of the person making the transfer.CommentsClose CommentsPermalink





`(3) USE BY PERSONS TO WHICH CARBON DIOXIDE ALLOWANCES ARE TRANSFERRED- Any person to which carbon dioxide allowances are transferred under paragraph (2)(A) may use the carbon dioxide allowances in the calendar year for which the carbon dioxide allowances were allocated, or in a subsequent calendar year, to demonstrate compliance with subsection (e)(1).CommentsClose CommentsPermalink





`(4) PERMIT REQUIREMENTS- An allocation or transfer of carbon dioxide allowances to an affected unit shall be considered to be part of the federally enforceable permit of the affected unit under this Act, without a requirement for further review or revision of the permit.CommentsClose CommentsPermalink





`(e) Compliance and Enforcement-CommentsClose CommentsPermalink





`(1) IN GENERAL- For the first full calendar year beginning 4 years after the date of enactment of this title and each calendar year thereafter, the owner or operator of each affected source shall hold for the affected source and surrender to the Administrator a quantity of carbon dioxide allowances equal to the total tons of carbon dioxide emitted by each affected unit of the affected source during the calendar year.CommentsClose CommentsPermalink





`(2) EXCESS EMISSIONS- The owner and operator of an affected source any affected unit of which emits carbon dioxide in excess of the carbon dioxide allowances held for use by the affected source for the calendar year shall offset, and pay an excess emissions penalty for, the excess emissions by surrendering to the Administrator a quantity of carbon dioxide allowances for the following calendar year or such other period as the Administrator may prescribe equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(A) the number of tons of the excess emissions; andCommentsClose CommentsPermalink





`(B) 2.CommentsClose CommentsPermalink





`(3) MONITORING SYSTEM- The Administrator shall promulgate regulations requiring--CommentsClose CommentsPermalink





`(A) installation, operation, reporting, and certification of continuous emissions monitoring systems, or any alternative monitoring system or methodology that, as determined by the Administrator, provides information with the same precision, reliability, accessibility, and timeliness as that provided by continuous emission monitors, to measure the quantity of carbon dioxide emitted from each affected unit;CommentsClose CommentsPermalink





`(B) quality assurance, verification, and reporting of carbon dioxide emissions data at each affected unit; andCommentsClose CommentsPermalink





`(C) if continuous emission monitoring system data, or data from an alternative monitoring system approved by the Administrator, is not available for an affected unit during any period of a calendar year for which the data is required to be certified under this subsection, and if the owner or operator of the affected unit cannot provide information satisfactory to the Administrator on emissions during that period--CommentsClose CommentsPermalink





`(i) treatment of the affected unit as operating in an uncontrolled manner during the entire period for which the data was not available; andCommentsClose CommentsPermalink





`(ii) calculation of emissions for that period as prescribed by the Administrator.CommentsClose CommentsPermalink





`(4) REPORTING-CommentsClose CommentsPermalink





`(A) IN GENERAL- Not less often than quarterly, the owner or operator of an affected unit shall submit to the Administrator a report on the monitoring of emissions of carbon dioxide carried out by the owner or operator in accordance with the regulations promulgated under paragraph (3).CommentsClose CommentsPermalink





`(B) AUTHORIZATION- Each report submitted under subparagraph (A) shall be authorized by the designated representative of the affected unit, who shall certify the accuracy of the report.CommentsClose CommentsPermalink





`(C) PUBLIC REPORTING- The Administrator shall make available to the public, through 1 or more published reports and 1 or more forms of electronic media, data concerning the emission of carbon dioxide from each affected unit.CommentsClose CommentsPermalink





`(f) Effect of Section- Nothing in this section limits or otherwise affects the application of section 113, 114, 120, or 304.CommentsClose CommentsPermalink





`(g) Allowance Not a Property Right- A carbon dioxide allowance--CommentsClose CommentsPermalink





`(1) is not a property right; andCommentsClose CommentsPermalink





`(2) may be terminated or limited by the Administrator.CommentsClose CommentsPermalink





`(h) No Judicial Review- An allocation or issuance of a carbon dioxide allowance by the Administrator, and the determination of any value used in calculating the allocation or issuance, shall not be subject to judicial review.CommentsClose CommentsPermalink

`SEC. 706. CONVENTIONAL PULVERIZED COAL FACILITIES.

`The correspondence of the Office of Air Quality Planning and Standards addressing best available control technology requirements for proposed coal-fired power plant projects and dated December 13, 2005--CommentsClose CommentsPermalink





`(1) shall be considered to be inconsistent with section 169(3); andCommentsClose CommentsPermalink





`(2) shall be treated as void and of no effect as of the date of issuance of the correspondence.CommentsClose CommentsPermalink

`SEC. 707. CLIMATE CHAMPIONS PROGRAM.

`(a) Establishment- The Administrator shall establish a program, to be known as the `Climate Champions Program'.CommentsClose CommentsPermalink





`(b) Rewards; Receipt of Allowances- Under the Climate Champions Program, the Administrator shall--CommentsClose CommentsPermalink





`(1) identify and provide such reward as the Administrator determines to be appropriate to each of the first 30 entities to complete construction of a new coal-fired electric generating unit that meets each applicable new source performance standard under section 102 after the date of enactment of this title; andCommentsClose CommentsPermalink





`(2) distribute to the 30 entities identified under paragraph (1) the carbon dioxide allowances reserved for the entities for the calendar year under section 705(b)(2).CommentsClose CommentsPermalink

`SEC. 708. AUCTION OF CARBON DIOXIDE ALLOWANCES.

`(a) In General- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations establishing a procedure for the auction of 25 percent of the quantity of carbon dioxide allowances available for calendar year 2011 and each calendar year thereafter.CommentsClose CommentsPermalink





`(b) Deposit of Proceeds- The Administrator shall deposit the proceeds from each auction carried out pursuant to this section into a fund of the Administrator for use, without further appropriation, for mitigating any increase in the cost of electricity to electricity consumers and energy-intensive industries, as determined by the Administrator.'.CommentsClose CommentsPermalink

SEC. 104. REVISIONS TO SULFUR DIOXIDE ALLOWANCE PROGRAM.

(a) In General- Title IV of the Clean Air Act (relating to acid deposition control) (42 U.S.C. 7651 et seq.) is amended by adding at the end the following:CommentsClose CommentsPermalink

`SEC. 417. REVISIONS TO SULFUR DIOXIDE ALLOWANCE PROGRAM.

`(a) Regulations- Not later than 2 years after the date of enactment of the Clean Air/Climate Change Act of 2007, the Administrator shall promulgate such revisions to the regulations to implement this title as the Administrator determines to be necessary to implement section 702(a).CommentsClose CommentsPermalink





`(b) Sulfur Dioxide Allocations-CommentsClose CommentsPermalink





`(1) ALLOCATIONS TO ALLOWANCE TRACKING SYSTEM ACCOUNTS-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Administrator shall allocate 95 percent of the quantity of sulfur dioxide allowances provided to achieve compliance with the requirement under section 702(a)(2) to accounts of the allowance tracking system under section 403(d) in accordance with the calculation under subparagraph (B).CommentsClose CommentsPermalink





`(B) CALCULATION FOR ALLOCATIONS-CommentsClose CommentsPermalink





`(i) DEFINITION OF EXISTING QUANTITY- In this subparagraph, the term `existing quantity', with respect to sulfur dioxide allowances, means, as determined by the Administrator in accordance with part 73 of title 40, Code of Federal Regulations (or successor regulations)--CommentsClose CommentsPermalink





`(I) for sulfur dioxide allowances allocated for any calendar year before calendar year 2016, the quantity of sulfur dioxide allowances allocated for the calendar year under sections 404 through 406, and recorded in an account of the allowance tracking system under section 403(d), as of 12:00 p.m., Eastern Standard Time, on the date that is 180 days after the date of enactment of the Clean Air/Climate Change Act of 2007; andCommentsClose CommentsPermalink





`(II) for sulfur dioxide allowances allocated for calendar year 2016 or any calendar year thereafter, the quantity described in subclause (I), reduced by--CommentsClose CommentsPermalink

`(aa) 7 percent for calendar year 2016; andCommentsClose CommentsPermalink

`(bb) an additional 7 percent for each calendar year thereafter.CommentsClose CommentsPermalink

`(ii) CALCULATION- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate to each account of the allowance tracking system under section 403(d) a quantity of sulfur dioxide allowances equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(I) the total quantity of allowances to be allocated under subparagraph (A); andCommentsClose CommentsPermalink





`(II) the proportion that--CommentsClose CommentsPermalink

`(aa) the total existing quantity of sulfur dioxide allowances for all calendar years in the account; bears toCommentsClose CommentsPermalink

`(bb) the total existing quantities of sulfur dioxide allowances for all calendar years in all accounts.CommentsClose CommentsPermalink

`(2) ALLOCATIONS TO CERTAIN EXISTING UNITS-CommentsClose CommentsPermalink





`(A) DEFINITION OF EXISTING AFFECTED UNIT- In this paragraph, the term `existing affected unit' means an affected unit that--CommentsClose CommentsPermalink





`(i) was an affected unit on December 31, 2006;CommentsClose CommentsPermalink





`(ii) began operation before January 1, 2001; andCommentsClose CommentsPermalink





`(iii) does not receive any sulfur dioxide allowance for a calendar year under section 404, 405, 406, or 410.CommentsClose CommentsPermalink





`(B) ALLOCATION- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate 3 1/2 percent of the quantity of sulfur dioxide allowances provided to achieve compliance with the requirement under section 702(a)(2) to existing affected units in accordance with the applicable calculation under subparagraph (C).CommentsClose CommentsPermalink





`(C) CALCULATIONS-CommentsClose CommentsPermalink





`(i) COAL-FIRED EXISTING AFFECTED UNITS- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate to each existing affected unit that is a coal-fired existing affected unit a quantity of sulfur dioxide allowances equal to the product (expressed in tons) obtained by multiplying--CommentsClose CommentsPermalink





`(I) the total baseline heat input of the existing affected unit, as determined under paragraph (4) (expressed in mmBtus); andCommentsClose CommentsPermalink





`(II) 0.40 lb/mmBtu.CommentsClose CommentsPermalink





`(ii) OIL-FIRED EXISTING AFFECTED UNITS- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate to each existing affected unit that is an oil-fired existing affected unit a quantity of sulfur dioxide allowances equal to the product (expressed in tons) obtained by multiplying--CommentsClose CommentsPermalink





`(I) the total baseline heat input of the existing affected unit, as determined under paragraph (4) (expressed in mmBtus); andCommentsClose CommentsPermalink





`(II) 0.20 lb/mmBtu.CommentsClose CommentsPermalink





`(iii) OTHER EXISTING AFFECTED UNITS- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate to each existing affected unit that is not a coal-fired or oil-fired existing affected unit a quantity of sulfur dioxide allowances equal to the product (expressed in tons) obtained by multiplying--CommentsClose CommentsPermalink





`(I) the total baseline heat input of the existing affected unit, as determined under paragraph (4) (expressed in mmBtus); andCommentsClose CommentsPermalink





`(II) 0.05 lb/mmBtu.CommentsClose CommentsPermalink





`(D) ADJUSTMENT OF ALLOCATIONS- If the total quantity of sulfur dioxide allowances to be allocated under subparagraph (C) for a calendar year is more than the total quantity of sulfur dioxide allowances available for allocation under subparagraph (B) for the calendar year, the Administrator shall allocate to each existing affected unit a quantity of sulfur dioxide allowances equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(i) the quantity of sulfur dioxide allowances to be allocated to the existing affected unit under subparagraph (C) for the calendar year; andCommentsClose CommentsPermalink





`(ii) the proportion that--CommentsClose CommentsPermalink





`(I) the quantity of sulfur dioxide allowances to be allocated to the existing affected unit under subparagraph (C) for the calendar year; bears toCommentsClose CommentsPermalink





`(II) the total quantity of sulfur dioxide allowances to be allocated to all existing affected units under subparagraph (C) for the calendar year.CommentsClose CommentsPermalink





`(E) EXCESS SUPPLY OF SULFUR DIOXIDE ALLOWANCES- Any sulfur dioxide allowance that is available for allocation under subparagraph (B) for a calendar year, but that is not allocated for the calendar year under subparagraph (C), shall be allocated in accordance with paragraph (3).CommentsClose CommentsPermalink





`(3) ALLOCATION TO CERTAIN NEW UNITS-CommentsClose CommentsPermalink





`(A) DEFINITION OF NEW AFFECTED UNIT- In this paragraph, the term `new affected unit' means an affected unit that--CommentsClose CommentsPermalink





`(i) was an affected unit on December 31, 2006;CommentsClose CommentsPermalink





`(ii) began operation during the period beginning on January 1, 2001, and ending on December 31, 2006; andCommentsClose CommentsPermalink





`(iii) does not receive any sulfur dioxide allowance for a calendar year under section 404, 405, 406, or 410.CommentsClose CommentsPermalink





`(B) ALLOCATION- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate 1 1/2 percent of the quantity of sulfur dioxide allowances provided to achieve compliance with the requirement under section 702(a)(2) to new affected units in accordance with the applicable calculation under subparagraph (C).CommentsClose CommentsPermalink





`(C) CALCULATIONS-CommentsClose CommentsPermalink





`(i) COAL-FIRED AND OIL-FIRED NEW AFFECTED UNITS- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate to each new affected unit that is a coal-fired or oil-fired new affected unit a quantity of sulfur dioxide allowances equal to the product (expressed in tons) obtained by multiplying--CommentsClose CommentsPermalink





`(I) the total baseline heat input of the new affected unit, as determined under paragraph (4) (expressed in mmBtus); andCommentsClose CommentsPermalink





`(II) 0.19 lb/mmBtu.CommentsClose CommentsPermalink





`(ii) OTHER NEW AFFECTED UNITS- For calendar year 2015 and each calendar year thereafter, the Administrator shall allocate to each new affected unit that is not a coal-fired or oil-fired new affected unit a quantity of sulfur dioxide allowances equal to the product (expressed in tons) obtained by multiplying--CommentsClose CommentsPermalink





`(I) the total baseline heat input of the new affected unit, as determined under paragraph (4) (expressed in mmBtus); andCommentsClose CommentsPermalink





`(II) 0.02 lb/mmBtu.CommentsClose CommentsPermalink





`(D) ADJUSTMENT OF ALLOCATIONS- If the total quantity of sulfur dioxide allowances to be allocated under subparagraph (C) for a calendar year is more than the total quantity of sulfur dioxide allowances available for allocation under subparagraph (B) for the calendar year, the Administrator shall allocate to each new affected unit a quantity of sulfur dioxide allowances equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(i) the quantity of sulfur dioxide allowances to be allocated to the new affected unit under subparagraph (C) for the calendar year; andCommentsClose CommentsPermalink





`(ii) the proportion that--CommentsClose CommentsPermalink





`(I) the quantity of sulfur dioxide allowances to be allocated to the new affected unit under subparagraph (C) for the calendar year; bears toCommentsClose CommentsPermalink





`(II) the total quantity of sulfur dioxide allowances to be allocated to all new affected units under subparagraph (C) for the calendar year.CommentsClose CommentsPermalink





`(E) USE OF OTHER EXCESS SULFUR DIOXIDE ALLOWANCES- The Administrator shall allocate to new affected units any excess allowance provided pursuant to paragraph (2)(E) in accordance with subparagraphs (C) and (D).CommentsClose CommentsPermalink





`(F) REMAINING SULFUR DIOXIDE ALLOWANCES- The Administrator shall allocate, on a pro rata basis in accordance with paragraphs (1) and (2), any sulfur dioxide allowance that is available for allocation, but that is not allocated, for a calendar year under subparagraph (C) to--CommentsClose CommentsPermalink





`(i) appropriate accounts of the allowance tracking system under section 403(d); andCommentsClose CommentsPermalink





`(ii) existing affected units (as defined in paragraph (2)(A)).CommentsClose CommentsPermalink





`(4) DETERMINATION OF BASELINE HEAT INPUT- For purposes of calculations under paragraphs (2)(C) and (3)(C), the baseline heat input of an existing affected unit (as defined in paragraph (2)(A)) or a new affected unit (as defined in paragraph (3)(A)) shall be equal to the quotient obtained by dividing--CommentsClose CommentsPermalink





`(A) the sum of the heat input of the affected unit for each of calendar years 2005 through 2007; byCommentsClose CommentsPermalink





`(B) 3.CommentsClose CommentsPermalink





`(5) WITHDRAWAL OF ALLOWANCES- After completing the allocations of sulfur dioxide allowances under paragraphs (1), (2), and (3), the Administrator shall withdraw from each compliance account and general account in the allowance tracking system under section 403(d), and from the special allowance reserve under section 416, all sulfur dioxide allowances allocated or deposited for calendar year 2015 or any calendar year thereafter.CommentsClose CommentsPermalink





`(6) TIMING OF ALLOCATIONS- The Administrator shall carry out each allocation of sulfur dioxide allowances required under this subsection for calendar year 2015 or any calendar year thereafter by not later than December 31, 2011.CommentsClose CommentsPermalink





`(7) NO JUDICIAL REVIEW- An allocation of sulfur dioxide allowances by the Administrator under this subsection, and the determination of a value used in calculating such an allocation, shall not be subject to judicial review.'.CommentsClose CommentsPermalink





(b) Definitions- Section 402 of the Clean Air Act (relating to acid deposition control) (42 U.S.C. 7651a) is amended--CommentsClose CommentsPermalink





(1) by striking paragraph (2) and inserting the following:CommentsClose CommentsPermalink





`(2) AFFECTED UNIT-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `affected unit' means--CommentsClose CommentsPermalink





`(i) for a calendar year before calendar year 2015, a unit that is subject to emission reduction requirements or limitations under section 404, 405, 406, 409, or 410; andCommentsClose CommentsPermalink





`(ii) subject to subparagraph (B), for calendar year 2015 and each calendar year thereafter, a fossil fuel-fired electric generating unit that, on or after January 1, 1985, served a generator with a nameplate capacity greater than 25 megawatts producing electricity for sale.CommentsClose CommentsPermalink





`(B) EXCLUSION- For purposes of subparagraph (A)(ii), the term `affected unit' does not include a unit that--CommentsClose CommentsPermalink





`(i) cogenerates steam and electricity; butCommentsClose CommentsPermalink





`(ii) is not a cogeneration unit.CommentsClose CommentsPermalink





`(C) RELATED DEFINITIONS- For purposes of this paragraph, the terms `cogeneration unit', `fossil fuel-fired', and `unit' have the meanings given the terms in section 701.'; andCommentsClose CommentsPermalink





(2) by striking paragraph (3) and inserting the following:CommentsClose CommentsPermalink





`(3) ALLOWANCE-CommentsClose CommentsPermalink





`(A) IN GENERAL- Notwithstanding any other provision of this title, the term `allowance' or `sulfur dioxide allowance' means--CommentsClose CommentsPermalink





`(i) except as provided in clause (ii), an authorization allocated by the Administrator under this title to an affected unit to emit, during or after a specified calendar year, a quantity of sulfur dioxide emissions equal to 1 ton of sulfur dioxide; andCommentsClose CommentsPermalink





`(ii) with respect to a sulfur dioxide allowance allocated to a unit in a CAIR State for any of calendar years 2010 through 2014, an authorization allocated by the Administrator under this title, or under CAIR, to a unit to emit, during or after the applicable calendar year, a quantity of sulfur dioxide emissions equal to 1/2 ton of sulfur dioxide.CommentsClose CommentsPermalink





`(B) RELATED DEFINITIONS- For purposes of subparagraph (A), the terms `CAIR' and `CAIR State' have the meanings given the terms in section 701.'.CommentsClose CommentsPermalink





(c) Compliance-CommentsClose CommentsPermalink





(1) PROHIBITION- Section 403(g) of the Clean Air Act (relating to acid deposition control) (42 U.S.C. 7651b(g)) is amended by striking the second sentence and inserting the following: `It shall be unlawful for the affected units of any affected source to emit sulfur dioxide during a calendar year in excess of the tons of sulfur dioxide emissions authorized by the allowances held by the owner or operator of the affected source for the affected source for the calendar year.'.CommentsClose CommentsPermalink





(2) PERMITS AND COMPLIANCE PLANS- Section 408 of the Clean Air Act (relating to acid deposition control) (42 U.S.C. 7651g) is amended--CommentsClose CommentsPermalink





(A) in subsection (a), by striking paragraph (1) and inserting the following:CommentsClose CommentsPermalink





`(1) annual emissions of sulfur dioxide in excess of the tons of sulfur dioxide emissions authorized by the allowances held by the owner or operator, or the designated representative of an owner or operator, of the affected source for the affected source for the calendar year,'; andCommentsClose CommentsPermalink





(B) in subsection (b), in the fourth sentence, by striking `to emit not less than the total annual emissions of the unit' and inserting `authorizing tons of emissions not less than the total annual emissions of the unit'.CommentsClose CommentsPermalink





(d) Excess Emissions- Section 411 of the Clean Air Act (relating to acid deposition control) (42 U.S.C. 7651j) is amended by striking subsection (e) and inserting the following:CommentsClose CommentsPermalink





`(e) Excess Emissions of Sulfur Dioxide-CommentsClose CommentsPermalink





`(1) PENALTY-CommentsClose CommentsPermalink





`(A) IN GENERAL- Notwithstanding subsections (a), (b), and (c), the owner and operator of an affected source the affected units of which emit, during calendar year 2007 or any calendar year thereafter, sulfur dioxide in excess of the tons of sulfur dioxide emissions authorized by the allowances held for use by the affected source for that calendar year shall offset, and pay an excess emissions penalty for, the excess emissions by surrendering to the Administrator a quantity of sulfur dioxide allowances for the following calendar year, or such earlier period as the Administrator may prescribe, authorizing a number of tons of sulfur dioxide emissions equal to the product obtained by multiplying--CommentsClose CommentsPermalink





`(i) subject to subparagraph (B), the number of tons of the excess emissions; andCommentsClose CommentsPermalink





`(ii) 2.CommentsClose CommentsPermalink





`(B) TREATMENT OF CERTAIN QUANTITIES OF EMISSIONS- For purposes of subparagraph (A)(i), a quantity of excess emissions equal to less than 1 ton shall be considered to be a quantity of excess emissions equal to 1 ton.CommentsClose CommentsPermalink





`(2) TREATMENT OF PENALTY- An offset and penalty imposed under paragraph (1) shall be in lieu of any offset and penalty required under subsection (a), (b), or (c) with respect to sulfur dioxide emissions.CommentsClose CommentsPermalink





`(f) Savings Provision- Nothing in this section limits or otherwise affects the application of section 113, 114, 120, or 304.'.CommentsClose CommentsPermalink





(e) Technical Amendments-CommentsClose CommentsPermalink





(1) Title IV of the Clean Air Act (relating to noise pollution) (42 U.S.C. 7641 et seq.)--CommentsClose CommentsPermalink





(A) is amended by redesignating sections 401 through 403 as sections 801 through 803, respectively; andCommentsClose CommentsPermalink





(B) is redesignated as title VIII and moved to appear at the end of that Act.CommentsClose CommentsPermalink





(2) The table of contents for title IV of the Clean Air Act (relating to acid deposition control) (42 U.S.C. prec. 7651) is amended by adding at the end the following:CommentsClose CommentsPermalink





`Sec. 417. Revisions to sulfur dioxide allowance program.'.CommentsClose CommentsPermalink

SEC. 105. AIR QUALITY FORECASTS AND WARNINGS.

(a) Requirement for Forecasts and Warnings- The Secretary of Commerce, acting through the Administrator of the National Oceanic and Atmospheric Administration, in cooperation with the Administrator of the Environmental Protection Agency, shall issue air quality forecasts and air quality warnings as part of the mission of the Department of Commerce.CommentsClose CommentsPermalink





(b) Regional Warnings- In carrying out subsection (a), the Secretary of Commerce shall establish within the National Oceanic and Atmospheric Administration a program to provide region-oriented forecasts and warnings regarding air quality for each of the following regions of the United States:CommentsClose CommentsPermalink





(1) The Northeast, composed of Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.CommentsClose CommentsPermalink





(2) The Mid-Atlantic, composed of Delaware, the District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia.CommentsClose CommentsPermalink





(3) The Southeast, composed of Alabama, Florida, Georgia, North Carolina, and South Carolina.CommentsClose CommentsPermalink





(4) The South, composed of Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.CommentsClose CommentsPermalink





(5) The Midwest, composed of Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Ohio, and Wisconsin.CommentsClose CommentsPermalink





(6) The High Plains, composed of Kansas, Nebraska, North Dakota, and South Dakota.CommentsClose CommentsPermalink





(7) The Northwest, composed of Idaho, Montana, Oregon, Washington, and Wyoming.CommentsClose CommentsPermalink





(8) The Southwest, composed of Arizona, California, Colorado, New Mexico, Nevada, and Utah.CommentsClose CommentsPermalink





(9) Alaska.CommentsClose CommentsPermalink





(10) Hawaii.CommentsClose CommentsPermalink





(c) Priority Area- In establishing the program described in subsection (a), the Secretary of Commerce and the Administrator shall identify and expand, to the maximum extent practicable, Federal air quality forecast and warning programs in effect as of the date of establishment of the program.CommentsClose CommentsPermalink





(d) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.CommentsClose CommentsPermalink

SEC. 106. RELATIONSHIP TO OTHER LAW.

(a) Regulation of Hazardous Air Pollutants- Section 112(n)(1) of the Clean Air Act (42 U.S.C. 7412(n)(1)) is amended by striking subparagraph (A) and inserting the following:CommentsClose CommentsPermalink





`(A) REGULATIONS-CommentsClose CommentsPermalink





`(i) IN GENERAL- Not later than 18 months after the date of enactment of the Clean Air/Climate Change Act of 2007, the Administrator shall promulgate regulations under this section limiting the emission from electric utility steam generating units of hazardous air pollutants, other than mercury, as the Administrator determines to be appropriate and necessary in accordance with the standards under this section, including subsections (b)(2) and (f).CommentsClose CommentsPermalink





`(ii) REQUIREMENTS- The regulations under clause (i) shall--CommentsClose CommentsPermalink





`(I) require compliance with applicable standards as expeditiously as practicable, but not later than 3 years after the effective date of the regulations; andCommentsClose CommentsPermalink





`(II) be in accordance with other applicable requirements under this section.CommentsClose CommentsPermalink





`(iii) EFFECTIVE DATE- The regulations under clause (i) shall be effective on the date of promulgation of the regulations.'.CommentsClose CommentsPermalink





(b) Safe Drinking Water Act- Section 1412(b) of the Safe Drinking Water Act (42 U.S.C. 300g-1(b)) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(16) CARBON DIOXIDE- Not later than 2 years after the date of enactment of the Clean Air/Climate Change Act of 2007, the Administrator shall promulgate regulations establishing standards for underground injection of carbon dioxide in a manner that protects human health and the environment.'.CommentsClose CommentsPermalink





(c) No Effect on Other Federal and State Requirements- Except as otherwise specifically provided in this Act, nothing in this Act or an amendment made by this Act--CommentsClose CommentsPermalink





(1) affects any permitting, monitoring, or enforcement obligation of the Administrator of the Environmental Protection Agency under the Clean Air Act (42 U.S.C. 7401 et seq.) or any remedy provided under that Act;CommentsClose CommentsPermalink





(2) affects any requirement applicable to, or liability of, an electric generating unit under that Act;CommentsClose CommentsPermalink





(3) requires a change in, affects, or limits any State law that regulates electric utility rates or charges, including prudence review under State law; orCommentsClose CommentsPermalink





(4) precludes a State or political subdivision of a State from adopting and enforcing any requirement for the control or abatement of air pollution, except that a State or political subdivision may not adopt or enforce any emission standard or limitation that is less stringent than the requirements imposed under that Act.CommentsClose CommentsPermalink

TITLE II--GREENHOUSE GAS OFFSETS

SEC. 201. GREENHOUSE GAS OFFSETS.

The Clean Air Act (42 U.S.C. 7401 et seq.) (as amended by section 101) is amended by adding at the end the following:CommentsClose CommentsPermalink

`TITLE VIII--GREENHOUSE GAS OFFSETS

`TITLE VIII--GREENHOUSE GAS OFFSETS

`Sec. 801. Definitions.CommentsClose CommentsPermalink





`Sec. 802. General requirements.CommentsClose CommentsPermalink





`Sec. 803. Standards for offset allowances.CommentsClose CommentsPermalink

`SEC. 801. DEFINITIONS.

`In this title:CommentsClose CommentsPermalink





`(1) ALLOWANCE- The term `allowance' means--CommentsClose CommentsPermalink





`(A) a carbon dioxide allowance, as defined in section 701; andCommentsClose CommentsPermalink





`(B) an offset allowance.CommentsClose CommentsPermalink





`(2) ANAEROBIC DIGESTER-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `anaerobic digester' means a device that promotes the decomposition of organic material to simple organic and gaseous biogas products, usually by collecting the material under controlled temperature and volume.CommentsClose CommentsPermalink





`(B) INCLUSION- The term `anaerobic digester' includes a biogas recovery system.CommentsClose CommentsPermalink





`(3) ANAEROBIC STORAGE- The term `anaerobic storage' means storage of organic material in an oxygen-free environment or under oxygen-free conditions, including by using holding tanks, ponds, or lagoons.CommentsClose CommentsPermalink





`(4) ANSI- The term `ANSI' means the American National Standards Institute.CommentsClose CommentsPermalink





`(5) ASHRAE- The term `ASHRAE' means the American Society of Heating, Refrigerating and Air Conditioning Engineers.CommentsClose CommentsPermalink





`(6) BIOGAS- The term `biogas' means a gas--CommentsClose CommentsPermalink





`(A) the principal components of which are methane and carbon dioxide; andCommentsClose CommentsPermalink





`(B) that results from the decomposition of organic matter under anaerobic conditions.CommentsClose CommentsPermalink





`(7) BOILER- The term `boiler' means a self-contained, low-pressure appliance for supplying heat in the form of steam or hot water to a residential building or commercial building.CommentsClose CommentsPermalink





`(8) COMMERCIAL BUILDING- The term `commercial building' means a building to which ANSI/ASHRAE/IESNA Standard 90.1 applies.CommentsClose CommentsPermalink





`(9) ELIGIBLE BIOMASS- The term `eligible biomass' includes sustainable harvested woody or herbaceous fuel sources that are available on a renewable or recurring basis (excluding old-growth timber), as determined by the Administrator, including--CommentsClose CommentsPermalink





`(A) dedicated energy crops and trees;CommentsClose CommentsPermalink





`(B) agricultural food and feed crop residues;CommentsClose CommentsPermalink





`(C) aquatic plants;CommentsClose CommentsPermalink





`(D) unadulterated wood and wood residues;CommentsClose CommentsPermalink





`(E) animal wastes;CommentsClose CommentsPermalink





`(F) other clean organic wastes not mixed with other solid wastes;CommentsClose CommentsPermalink





`(G) biogas; andCommentsClose CommentsPermalink





`(H) other neat liquid biofuels derived from any fuel source described in subparagraphs (A) through (G).CommentsClose CommentsPermalink





`(10) ENERGY CONSERVATION MEASURE- The term `energy conservation measure' means an activity the purpose of which is to increase the energy efficiency of a building or to improve the management of energy demand, including through--CommentsClose CommentsPermalink





`(A) physical changes to equipment;CommentsClose CommentsPermalink





`(B) modifications to the building;CommentsClose CommentsPermalink





`(C) revisions of operating and maintenance procedures;CommentsClose CommentsPermalink





`(D) software changes; andCommentsClose CommentsPermalink





`(E) new methods of training or managing users of the building or operations and maintenance staff.CommentsClose CommentsPermalink





`(11) ENERGY PERFORMANCE- The term `energy performance' means the relative energy efficiency of a building, building equipment, or building component, measured based on--CommentsClose CommentsPermalink





`(A) for a building, the quantity of energy required to provide building services; andCommentsClose CommentsPermalink





`(B) for building equipment and components, the impact of equipment or components on energy usage.CommentsClose CommentsPermalink





`(12) FORESTED CONDITION- The term `forested condition', with respect to land, means land--CommentsClose CommentsPermalink





`(A) the area of which is at least 1 acre, with strips of forest at least 120 feet wide, measured stem-to-stem from the outer-most edge, for a continuous length of at least 363 feet; andCommentsClose CommentsPermalink





`(B)(i) at least 10 percent of the area of which is stocked by trees of any size, or has been at least 10-percent stocked by trees at any time, and that is not subject to any nonforest-related use that prevents normal tree regeneration and succession, such as regular mowing, intensive grazing, or recreation activities; orCommentsClose CommentsPermalink





`(ii) for any western woodland species for which the stocking described in clause (i) cannot be determined, at least 5 percent of which has a crown cover of trees of any size, or has had at least 5-percent cover at any time, and that is not subject to any nonforest-related use that prevents normal tree regeneration and succession, such as regular mowing, intensive grazing, or recreation activities.CommentsClose CommentsPermalink





`(13) FURNACE- The term `furnace' means a self-contained, indirect-fired appliance that--CommentsClose CommentsPermalink





`(A) supplies heated air to a residential building or commercial building through ducts to conditioned spaces; andCommentsClose CommentsPermalink





`(B) has a heat input rate of less than 225,000 Btu per hour.CommentsClose CommentsPermalink





`(14) HVAC SYSTEM-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `HVAC system' means any system or combination of systems that provides, collectively or individually, heating, ventilation, or air conditioning to a building.CommentsClose CommentsPermalink





`(B) INCLUSIONS- The term `HVAC system' includes equipment, distribution networks, and terminals for a system described in subparagraph (A).CommentsClose CommentsPermalink





`(15) IESNA- The term `IESNA' means the Illuminating Engineering Society of North America.CommentsClose CommentsPermalink





`(16) MARKET PENETRATION RATE- The term `market penetration rate' means, as determined by the Administrator, the rate of diffusion of a technology, product, or practice in a defined market, expressed as--CommentsClose CommentsPermalink





`(A) a percentage of annual sales of the technology, product, or practice; orCommentsClose CommentsPermalink





`(B) a percentage of existing installed stock--CommentsClose CommentsPermalink





`(i) for a product or category of products; orCommentsClose CommentsPermalink





`(ii) that uses a technology, product, or practice.CommentsClose CommentsPermalink





`(17) OFFSET ALLOWANCE- The term `offset allowance' means an allowance awarded under this title for--CommentsClose CommentsPermalink





`(A) each sequestration of, reduction in, or prevention of, 1 ton of carbon dioxide or carbon dioxide-equivalent emissions, as determined by the Administrator; orCommentsClose CommentsPermalink





`(B) an eligible emission credit retirement under section 802(a).CommentsClose CommentsPermalink





`(18) OFFSET PROJECT- The term `offset project' means a project that--CommentsClose CommentsPermalink





`(A) provides for a reduction in greenhouse gases or greenhouse gas emissions through--CommentsClose CommentsPermalink





`(i) the capture and destruction of methane from a landfill;CommentsClose CommentsPermalink





`(ii) a reduction in emissions of sulfur hexafluoride;CommentsClose CommentsPermalink





`(iii) the sequestration of carbon through afforestation;CommentsClose CommentsPermalink





`(iv) a reduction or avoidance of carbon dioxide emissions from natural gas, oil, or propane end-use combustion through end-use energy efficiency; orCommentsClose CommentsPermalink





`(v) the prevention of methane emissions through the use of agricultural manure management operations;CommentsClose CommentsPermalink





`(B) is carried out in any State or other United States jurisdiction pursuant to a memorandum of understanding between the project sponsor and the Administrator; andCommentsClose CommentsPermalink





`(C) begins operation on or after the date of enactment of this title.CommentsClose CommentsPermalink





`(19) RESIDENTIAL BUILDING- The term `residential building' means a low-rise building (including a single family home, a multifamily structure of 3 stories or less above grade, and a manufactured modular or mobile home) to which ANSI/ASHRAE/IESNA Standard 90.1 does not apply.CommentsClose CommentsPermalink





`(20) RESNET- The term `RESNET' means the Residential Energy Services Network.CommentsClose CommentsPermalink





`(21) SF6-CONTAINING OPERATING EQUIPMENT- The term `SF6-containing operating equipment' means any equipment that--CommentsClose CommentsPermalink





`(A) is used for the transmission or distribution of electricity; andCommentsClose CommentsPermalink





`(B) contains sulfur hexafluoride.CommentsClose CommentsPermalink





`(22) TOTAL SOLIDS- The term `total solids' means the content of solid materials in a given sample, including suspended solids, dissolved solids, and suspended volatile solids.CommentsClose CommentsPermalink





`(23) TRANSMISSION OR DISTRIBUTION ENTITY-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `transmission or distribution entity' means an entity that transmits or distributes electricity from an electric generator to the electrical load of a customer.CommentsClose CommentsPermalink





`(B) INCLUSIONS- The term `transmission or distribution entity' includes all related assets and equipment of an entity described in subparagraph (A) that are located within the service area of the entity, as defined by the applicable State regulatory agency.CommentsClose CommentsPermalink





`(24) VERIFICATION- The term `verification' means any activity conducted by a project sponsor to ensure the adequacy and consistency of a component of an offset project, including monitoring and reporting to the Administrator on any violation of this title.CommentsClose CommentsPermalink





`(25) UNFCCC- The term `UNFCCC' means the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992.CommentsClose CommentsPermalink





`(26) VOLATILE SOLIDS- The term `volatile solids' means the fraction of total solids of a given sample that is comprised primarily of organic matter.CommentsClose CommentsPermalink

`SEC. 802. GENERAL REQUIREMENTS.

`(a) Eligible Carbon Dioxide Emission Offset Projects and Eligible Emission Credit Retirements- Subject to subsection (c) and in accordance with the calculations and other requirements of section 803, the Administrator may award offset allowances to the sponsor of any offset project or eligible emission credit retirement if the sponsor has met all applicable requirements of this title.CommentsClose CommentsPermalink





`(b) Project Sponsor- Any person may act as the sponsor of an offset project or eligible emission credit retirement if the person meets all the requirements established by the Administrator.CommentsClose CommentsPermalink





`(c) Requirements for the Award of Offset Allowances- Except as provided in section 803, with respect to the awarding of offset allowances under this section--CommentsClose CommentsPermalink





`(1) an offset allowance may not be awarded for an offset project that is required to be carried out pursuant to any Federal, State, or local law (including a regulation), other than this Act, or administrative or judicial order;CommentsClose CommentsPermalink





`(2) offset allowances shall not be awarded to an offset project that includes an electric generation component; andCommentsClose CommentsPermalink





`(3) an offset allowance shall not be awarded to an offset project that is awarded credits or allowances under any other mandatory or voluntary greenhouse gas program, as determined by the Administrator.CommentsClose CommentsPermalink





`(d) Offset Project Audit- The sponsor of an offset project shall provide to the Administrator (or a designee) access to the physical location at which the offset project is carried out to ensure compliance with this title.CommentsClose CommentsPermalink





`(e) Ineligibility Because of Noncompliance- If the Administrator determines that an offset project or sponsor of an offset project has not complied, or is not in compliance, with this title, the Administrator may--CommentsClose CommentsPermalink





`(1) revoke and retire any offset allowances in the account of the sponsor of the offset project; andCommentsClose CommentsPermalink





`(2) revoke any other approvals issued by the Administrator with respect to the offset project.CommentsClose CommentsPermalink





`(f) Regulations-CommentsClose CommentsPermalink





`(1) IN GENERAL- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out this title.CommentsClose CommentsPermalink





`(2) INTERACTION WITH DEPARTMENT OF AGRICULTURE-CommentsClose CommentsPermalink





`(A) IN GENERAL- Except as provided in subparagraph (B), the Administrator shall promulgate all regulations relating to greenhouse gas offsets under this title.CommentsClose CommentsPermalink





`(B) OFFSETS- The Administrator, in consultation with the Secretary of Agriculture, shall promulgate regulations, in accordance with the requirements of this title, relating to greenhouse gas offsets produced by agricultural sequestration practices.CommentsClose CommentsPermalink





`(3) ADDITIONAL PROJECT TYPES- In promulgating regulations pursuant to this subsection, the Administrator shall establish requirements, in accordance with the requirements of this title, relating to types of greenhouse gas offset projects not otherwise addressed under this title.CommentsClose CommentsPermalink

`SEC. 803. STANDARDS FOR OFFSET ALLOWANCES.

`(a) Landfill Methane Capture and Destruction Offset Projects-CommentsClose CommentsPermalink





`(1) IN GENERAL- An offset project for the capture and destruction of methane shall be eligible to receive allowances under this title if the offset project--CommentsClose CommentsPermalink





`(A) captures and destroys methane from a landfill that is not subject to--CommentsClose CommentsPermalink





`(i) the regulations entitled `Standards of Performance for New Stationary Sources; Municipal Solid Waste Landfills' under subpart www of part 60 of title 40, Code of Federal Regulations (or successor regulations); orCommentsClose CommentsPermalink





`(ii) any other relevant Federal regulations, including emissions guidelines for municipal solid waste landfills under--CommentsClose CommentsPermalink





`(I) subpart cc of part 60 of that title; orCommentsClose CommentsPermalink





`(II) subpart aaaa of part 63 of that title; andCommentsClose CommentsPermalink





`(B) meets the requirements of this subsection.CommentsClose CommentsPermalink





`(2) REQUIREMENT- To be eligible to receive an allowance under this subsection, an offset project described in paragraph (1) shall use a landfill gas collection system that provides for continuous metering and data computation of--CommentsClose CommentsPermalink





`(A) the landfill gas volumetric flow rate; andCommentsClose CommentsPermalink





`(B) methane concentration.CommentsClose CommentsPermalink





`(3) EMISSIONS CALCULATIONS-CommentsClose CommentsPermalink





`(A) EMISSIONS BASELINE-CommentsClose CommentsPermalink





`(i) IN GENERAL- The emissions baseline of an offset project that receives allowances under this subsection shall be the potential fugitive landfill emissions of methane (measured in tons of carbon dioxide equivalent), as calculated based on the quantity of methane collected and metered for thermal destruction as part of the offset project in accordance with the following formula: Emissions (tons of carbon dioxide equivalent) = (VCommentsClose CommentsPermalink

731.0A MCommentsClose CommentsPermalink

731.0A (1-OX)CommentsClose CommentsPermalink

731.0A GWP)/2000.CommentsClose CommentsPermalink

`(ii) ABBREVIATIONS- In the formula contained in clause (i)--CommentsClose CommentsPermalink





`(I) `V' represents the volume of methane collected (expressed in cubic feet);CommentsClose CommentsPermalink





`(II) `M' represents the mass of methane per cubic foot (with a default value of 0.04246 pounds per cubic foot at 1 atmosphere and 20 «C);CommentsClose CommentsPermalink





`(III) `OX' represents the oxidation factor, which is the estimated portion of collected methane that would have oxidized to carbon dioxide if not collected (with a default value of 0.10); andCommentsClose CommentsPermalink





`(IV) `GWP' represents the carbon dioxide-equivalent global warming potential of methane (with a default value of 23).CommentsClose CommentsPermalink





`(B) EMISSIONS REDUCTIONS-CommentsClose CommentsPermalink





`(i) IN GENERAL- The emissions reductions of an offset project under this subsection shall be the potential fugitive landfill emissions of methane (measured in tons of carbon dioxide equivalent) that would have occurred if metered methane collected from the landfill for thermal destruction as part of the offset project was not collected and destroyed, as calculated in accordance with the following formula: Emissions reductions (tons of carbon dioxide equivalent) = (VCommentsClose CommentsPermalink