S 2995 ISCommentsClose CommentsPermalink

To amend the Clean Air Act to establish a national uniform multiple air pollutant regulatory program for the electric generating sector.CommentsClose CommentsPermalink

February 4, 2010CommentsClose CommentsPermalink

Mr. CARPER (for himself, Mr. ALEXANDER, Ms. KLOBUCHAR, Ms. COLLINS, Mrs. FEINSTEIN, Mr. GREGG, Mrs. SHAHEEN, Mr. GRAHAM, Mr. KAUFMAN, Mr. SCHUMER, Mr. LIEBERMAN, and Ms. SNOWE) 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 national uniform multiple air pollutant regulatory program for 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.

This Act may be cited as the ‘Clean Air Act Amendments of 2010’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS AND PURPOSES.

Section 401 of the Clean Air Act (42 U.S.C. 7651) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 401. FINDINGS AND PURPOSES.

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





‘(1) the presence of acidic compounds and associated precursors in the atmosphere and in deposition from the atmosphere represents a threat to natural resources, ecosystems, materials, visibility, and public health;CommentsClose CommentsPermalink





‘(2) the principal sources of the acidic compounds and those precursors in the atmosphere are emissions of sulfur and nitrogen oxides from the combustion of fossil fuels;CommentsClose CommentsPermalink





‘(3) the problem of acid deposition is of national and international significance;CommentsClose CommentsPermalink





‘(4) strategies and technologies for the control of precursors to acid deposition exist now that are economically feasible, and improved methods are expected to become increasingly available over the next decade;CommentsClose CommentsPermalink





‘(5) current and future generations of people in the United States will be adversely affected by delaying measures to remedy the problem;CommentsClose CommentsPermalink





‘(6) reduction of total atmospheric loading of sulfur dioxide and nitrogen oxides will enhance protection of the public health and welfare and the environment;CommentsClose CommentsPermalink





‘(7) control measures to reduce precursor emissions from steam-electric generating units should be initiated without delay;CommentsClose CommentsPermalink





‘(8) exposure to sulfur oxides is associated with--CommentsClose CommentsPermalink





‘(A) decreased lung function and respiratory symptoms, in exercising asthmatics; andCommentsClose CommentsPermalink





‘(B) more serious indicators of adverse respiratory effects, such as respiratory-related emergency department visits and hospital admissions, in the general population;CommentsClose CommentsPermalink





‘(9) exposure to nitrogen oxides is associated with worsened asthma symptoms, increased respiratory illnesses and symptoms, and serious indicators of adverse respiratory effects such as respiratory-related emergency department visits and hospital admissions;CommentsClose CommentsPermalink





‘(10) gaseous emissions of sulfur oxides and nitrogen oxides may be transformed in the atmosphere to form particles;CommentsClose CommentsPermalink





‘(11) exposure to those particles has been associated with adverse health and welfare effects, including--CommentsClose CommentsPermalink





‘(A) premature mortality;CommentsClose CommentsPermalink





‘(B) aggravation of respiratory and cardiovascular disease (as indicated by hospital admissions and emergency department visits);CommentsClose CommentsPermalink





‘(C) changes in lung function;CommentsClose CommentsPermalink





‘(D) increased respiratory symptoms (such as coughing, wheezing, and shortness of breath);CommentsClose CommentsPermalink





‘(E) impairment of visibility;CommentsClose CommentsPermalink





‘(F) adverse effects on ecosystem processes;CommentsClose CommentsPermalink





‘(G) impacts on climate; andCommentsClose CommentsPermalink





‘(H) damage or soiling of structures and property;CommentsClose CommentsPermalink





‘(12) in addition to the public welfare effects of materials damage and visibility, the ecological effects due to both gas and particle deposition of nitrogen and sulfur compounds include acidification (due to both nitrogen and sulfur), excess nitrogen enrichment, and interactions between sulfur and methylmercury production;CommentsClose CommentsPermalink





‘(13) nitrogen oxide can react with volatile organic compounds in the presence of heat and sunlight to form ground-level ozone;CommentsClose CommentsPermalink





‘(14) exposure to ground-level ozone can--CommentsClose CommentsPermalink





‘(A) cause symptoms such as wheezing and shortness of breath;CommentsClose CommentsPermalink





‘(B) inflame the linings of the lungs;CommentsClose CommentsPermalink





‘(C) aggravate respiratory illnesses such as asthma, emphysema, and bronchitis, leading to increased medication use, school absences, doctor, and emergency department visits and hospital admissions;CommentsClose CommentsPermalink





‘(D) increase susceptibility to respiratory infection;CommentsClose CommentsPermalink





‘(E) in the case of long-term exposure, permanently damage lung tissue; andCommentsClose CommentsPermalink





‘(F) in the case of short-term exposure, be associated with increased nonaccidental and cardiopulmonary mortality;CommentsClose CommentsPermalink





‘(15) exposure to ozone damages vegetation and ecosystems;CommentsClose CommentsPermalink





‘(16) specifically, ozone exposure can visibly damage the leaves of plants and photosynthesis, the process by which plants produce food;CommentsClose CommentsPermalink





‘(17) impaired food production leads to reduced plant growth and reproduction, resulting in reduced forestry production, crop yields, and overall plant vigor;CommentsClose CommentsPermalink





‘(18) loss of vigor can result in increased susceptibility of plants to insect attack, disease, harsh weather, and interspecies competition;CommentsClose CommentsPermalink





‘(19) all of those adverse effects of ozone have implications for global crop production and food security; andCommentsClose CommentsPermalink





‘(20) visible ozone injury to leaves can result in a loss of aesthetic value in areas of special scenic significance, such as national parks and wilderness areas.CommentsClose CommentsPermalink





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





‘(1) to reduce the adverse public and environmental health effects caused by the emission of sulfur dioxide and nitrogen oxides, including the effects of acid deposition, particulate matter, and ozone, through reductions in annual emissions of sulfur dioxide and nitrogen oxides in the 48 contiguous States and the District of Columbia;CommentsClose CommentsPermalink





‘(2) to effectuate those reductions by requiring compliance by affected sources with prescribed emission limitations by specified deadlines, which limitations may be met through alternative methods of compliance provided by an emission allocation and transfer system; andCommentsClose CommentsPermalink





‘(3) to encourage energy conservation, use of renewable and clean alternative technologies, and pollution prevention as a long-range strategy, consistent with this title, for reducing air pollution and other adverse impacts of energy production and use.’.CommentsClose CommentsPermalink

SEC. 3. 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. INTERIM CLEAN AIR INTERSTATE RULE.

‘(a) In General- Notwithstanding any other provision of law, the Clean Air Interstate Rule and related Federal implementation plans promulgated and modified by the Administrator on May 12, 2005 (70 Fed. Reg. 25162), April 28, 2006 (71 Fed. Reg. 25288 and 25328), October 19, 2007 (72 Fed. Reg. 59190), November 2, 2007 (72 Fed. Reg. 62338), April 28, 2008 (73 Fed. Reg. 22818), and November 3, 2009 (74 Fed. Reg. 56721), shall remain in force and effect with respect to all provisions relating in any way to nitrogen oxides and sulfur dioxide emitted through calendar year 2011.CommentsClose CommentsPermalink





‘(b) Exceptions-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Subsection (a) shall not apply with respect to the response of the Administrator (71 Fed. Reg. 25328 (April 28, 2006)) to the petition of the State of North Carolina under section 126.CommentsClose CommentsPermalink





‘(2) OZONE PROGRAMS- Any provision of the rules referred to in subsection (a) relating to the establishment and implementation of a seasonal ozone emission cap-and-trade program for nitrogen oxides shall not expire, but shall remain in full force and effect, with respect to nitrogen oxides emitted in calendar year 2012 and thereafter.CommentsClose CommentsPermalink





‘(3) REVISIONS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Notwithstanding paragraph (2), if the Administrator makes the determination described in subparagraph (B), the Administrator may--CommentsClose CommentsPermalink





‘(i) not later than January 1, 2020, and every 5 years thereafter, revise the provisions referred to in paragraph (2) to reduce the total quantity of tons of nitrogen oxides in--CommentsClose CommentsPermalink





‘(I) the ozone season nitrogen oxides budget for electric generating units;CommentsClose CommentsPermalink





‘(II) any ozone season nitrogen oxides budget for nonelectric generating units; andCommentsClose CommentsPermalink





‘(III) the ozone season nitrogen oxides trading budget for any State that is, or the sources in which are, subject to those provisions; andCommentsClose CommentsPermalink





‘(ii) make those provisions consistent, to the extent the Administrator determines is necessary or appropriate, with the requirements of the regulations promulgated in accordance with section 419(e).CommentsClose CommentsPermalink





‘(B) DETERMINATION- The determination described in this subparagraph is a determination by the Administrator that emissions should be reduced further--CommentsClose CommentsPermalink





‘(i) to protect public health or the environment;CommentsClose CommentsPermalink





‘(ii) to assist with attainment or maintenance with respect to national ambient air quality standards; orCommentsClose CommentsPermalink





‘(iii) to assist States in meeting emission reduction obligations under section 110(a)(2)(D).CommentsClose CommentsPermalink





‘(4) ELIMINATION OF FUEL ADJUSTMENT FACTORS- Not later than 90 days after the date of enactment of this section, the Administrator may--CommentsClose CommentsPermalink





‘(A) eliminate any allocation of nitrogen oxide allowances based on fuel-adjusted heat-input under sections 96.140, 96.142, 96.340, and 96.342 of title 40, Code of Federal Regulations (or successor regulations); andCommentsClose CommentsPermalink





‘(B) use a different distribution method for those nitrogen oxide allowances.CommentsClose CommentsPermalink

‘SEC. 418. PHASE III SULFUR DIOXIDE REQUIREMENTS.

‘(a) Establishment- Not later than January 1, 2011, the Administrator shall promulgate regulations to establish, for affected units in the 48 contiguous States and the District of Columbia, a sulfur dioxide allowance trading program to reduce sulfur dioxide emissions from affected units.CommentsClose CommentsPermalink





‘(b) Applicability- After January 1, 2012--CommentsClose CommentsPermalink





‘(1) each affected unit shall be subject to regulation under this section; andCommentsClose CommentsPermalink





‘(2) each source that includes 1 or more such affected units shall be considered to be an affected source under this section.CommentsClose CommentsPermalink





‘(c) Limitations on Emissions-CommentsClose CommentsPermalink





‘(1) PROHIBITION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Beginning on January 1, 2012, it shall be unlawful for the affected units at an affected source to emit a total number of tons of sulfur dioxide during a calendar year in excess of the number of tons authorized by the sulfur dioxide allowances held for the affected source for that year by the owners and operators of the affected source and affected units.CommentsClose CommentsPermalink





‘(B) QUALIFICATION- Only sulfur dioxide allowances described in paragraphs (2), (3), and (5) of subsection (d) shall be held in order to meet the requirements of subparagraph (A).CommentsClose CommentsPermalink





‘(2) LIMITATION ON TOTAL EMISSIONS- The Administrator shall issue allowances authorizing an annual tonnage of emissions of sulfur dioxide from affected units in the United States equal to--CommentsClose CommentsPermalink





‘(A) for each of calendar years 2012 through 2014, 3,500,000 tons;CommentsClose CommentsPermalink





‘(B) for each of calendar years 2015 through 2017, 2,000,000 tons;CommentsClose CommentsPermalink





‘(C) for each calendar years 2018 through 2020, 1,500,000 tons; andCommentsClose CommentsPermalink





‘(D) for calendar year 2021 and each calendar year thereafter--CommentsClose CommentsPermalink





‘(i) 1,500,000 tons; orCommentsClose CommentsPermalink





‘(ii) a lesser quantity, if the Administrator determines that emissions should be reduced further--CommentsClose CommentsPermalink





‘(I) to protect public health or the environment;CommentsClose CommentsPermalink





‘(II) to assist with attainment or maintenance with respect to the attainment of national ambient air quality standards; orCommentsClose CommentsPermalink





‘(III) to assist States in meeting emission reduction obligations under section 110(a)(2)(D).CommentsClose CommentsPermalink





‘(3) REGULATIONS- The regulations promulgated by the Administrator to carry out this section shall establish requirements for the allowance trading program under this section, including requirements concerning--CommentsClose CommentsPermalink





‘(A) the selection of a designated representative for each affected source, who shall make all submissions to the Administrator under this section for the affected source;CommentsClose CommentsPermalink





‘(B) the issuance, recording, tracking, holding, transfer, auction, and use of sulfur dioxide allowances;CommentsClose CommentsPermalink





‘(C) the monitoring and reporting of emissions, quality assurance of data, and recordkeeping, which shall be consistent with subsections (a) and (d) of section 412, as applied to the owners and operators of an affected unit and an affected source, except that subsection (a) shall apply in lieu of the deadlines for promulgation of regulations under subsections (a) and (d) of section 412;CommentsClose CommentsPermalink





‘(D) excess emission penalties and offsets in accordance with section 411;CommentsClose CommentsPermalink





‘(E) permits in accordance with section 408(h)(3) and title V, as applied to--CommentsClose CommentsPermalink





‘(i) an affected unit and an affected source; andCommentsClose CommentsPermalink





‘(ii) allowances under subsection (d);CommentsClose CommentsPermalink





‘(F) provisions that require--CommentsClose CommentsPermalink





‘(i) a statement submitted by the designated representative of an owner or operator that the owner or operator will hold allowances authorizing emissions equaling not less than the actual emissions of the affected units at the affected source, in accordance with this section, to be considered to meet the compliance planning requirements of title V; andCommentsClose CommentsPermalink





‘(ii) recording by the Administrator of a transfer of allowances to amend automatically all applicable permit applications, compliance plans, and permits; andCommentsClose CommentsPermalink





‘(G) the public availability of all information concerning the activities described in subparagraphs (A) through (E) that is not confidential or is emission data that, pursuant to section 114(c), cannot be confidential.CommentsClose CommentsPermalink





‘(d) Allowances-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than January 1, 2011, the Administrator shall promulgate regulations providing for the distribution of sulfur dioxide allowances issued in accordance with subsection (c)(2).CommentsClose CommentsPermalink





‘(2) DISTRIBUTION- The regulations shall provide that--CommentsClose CommentsPermalink





‘(A) the same total number of allowances issued under section 405 that are required to be offered for sale at auction in calendar year 2011 under subsection (c)(7), and paragraphs (1) and (2) of subsection (d), of section 416 shall be auctioned in each of vintage years 2012 through 2017;CommentsClose CommentsPermalink





‘(B) for vintage year 2018 and each calendar year thereafter, the number of allowances auctioned shall increase by 10 percent each year; andCommentsClose CommentsPermalink





‘(C) subject to paragraph (3), the remaining allowances shall be distributed in 2 pools that are determined by the Administrator to provide for a fair and equitable distribution of allowances between--CommentsClose CommentsPermalink





‘(i) affected units that received Phase II allowance allocations under sections 403 and 405; andCommentsClose CommentsPermalink





‘(ii) affected units that did not receive any Phase II allowance allocations under sections 403 and 405.CommentsClose CommentsPermalink





‘(3) REQUIREMENTS RELATING TO POOLS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Administrator shall determine the fairness and equitability of the size of the pools described in paragraph (2)(C) based on the Phase II allowance allocations and not on the current ownership of those allowances.CommentsClose CommentsPermalink





‘(B) DISTRIBUTION-CommentsClose CommentsPermalink





‘(i) ACCOUNTS- Allowances in the pool described in paragraph (2)(C)(i) shall be distributed to the account of each facility and each general account in the allowance tracking system under section 403(c), without cost to the recipients, in a quantity equal to, as of the date that is 180 days after the date of enactment of this section, the proportion that--CommentsClose CommentsPermalink





‘(I) the pro rata share of each such account of the total number of allowances; bears toCommentsClose CommentsPermalink





‘(II) the total number of allowances that were held in all such accounts.CommentsClose CommentsPermalink





‘(ii) SIMILAR METHODOLOGY- Allowances in the pool described in paragraph (2)(C)(ii) shall be distributed using the same or similar allocation methodology as was used under sections 403 and 405.CommentsClose CommentsPermalink





‘(C) LIMITATION ON NUMBER OF ALLOWANCES- In no case may the total number of allowances distributed under paragraph (2)(C) exceed the annual tonnage limitation for emissions of sulfur dioxide from affected units specified in subsection (c)(2).CommentsClose CommentsPermalink





‘(4) TIMING OF ALLOCATIONS- Not later than January 1, 2011, and each year thereafter, the Administrator shall allocate allowances to affected units.CommentsClose CommentsPermalink





‘(5) PREVIOUSLY BANKED ALLOWANCES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Any sulfur dioxide allowances issued under sections 403 through 416 or the rules referred to in section 417(a) for any vintage year before 2012 that are not used to meet any requirements under sections 403 through 416 or those rules, and that are not otherwise retired by the Administrator, may be used to meet requirements under this section.CommentsClose CommentsPermalink





‘(B) VINTAGE YEARS BEFORE 2010- Each sulfur dioxide emission allowance issued for a vintage year before 2010 shall authorize a quantity of sulfur dioxide emissions equal to 1 ton of sulfur dioxide.CommentsClose CommentsPermalink





‘(C) VINTAGE YEAR 2010 OR 2011- Each sulfur dioxide emission allowance issued for vintage year 2010 or 2011 shall authorize a quantity of sulfur dioxide emissions equal to 1/2 ton of sulfur dioxide.CommentsClose CommentsPermalink





‘(6) NO PROPERTY RIGHT- An allowance issued under this section does not constitute a property right.CommentsClose CommentsPermalink





‘(e) Replacement of Sulfur Dioxide Program- Except as expressly provided in this section, the provisions and requirements of sections 404, subsections (a) through (f), paragraphs (1) through (5) of subsection (g), and subsections (h) through (j), of section 405, sections 406 through 410, and sections 412 through 416, concerning emissions of sulfur dioxide shall not apply to any such emissions in calendar year 2012 or any calendar year thereafter.CommentsClose CommentsPermalink





‘(f) Effect on Other Requirements-CommentsClose CommentsPermalink





‘(1) NO EXEMPTION OR EXCLUSION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Nothing in this section exempts or excludes the owner or operator of any affected source or affected unit from compliance with any other applicable requirements of this Act.CommentsClose CommentsPermalink





‘(B) LIABILITY- Any liability for excess emission penalties under this section shall not limit the application of section 113, 114, 120, or 304 to the owner or operator.CommentsClose CommentsPermalink





‘(2) SEPARATE VIOLATIONS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Each ton of sulfur dioxide emitted in violation of subsection (c)(1), as implemented in the regulations promulgated under subsection (c)(3), shall be a violation of this title.CommentsClose CommentsPermalink





‘(B) SEPARATE DAYS- For a calendar year during which an emission described in subparagraph (A) occurs, each day of that year shall be a violation of this title.CommentsClose CommentsPermalink

‘SEC. 419. NITROGEN OXIDE CONTROL AND TRADING PROGRAM.

‘(a) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) AFFECTED UNIT- The term ‘affected unit’, with respect to nitrogen oxides, means a fossil fuel-fired electric generating facility (including a co-generation facility) that--CommentsClose CommentsPermalink





‘(A) on or after January 1, 1985, served as a generator with a nameplate capacity greater than 25 megawatts; andCommentsClose CommentsPermalink





‘(B) produces electricity for sale.CommentsClose CommentsPermalink





‘(2) ZONE 1 STATE- The term ‘Zone 1 State’ means the District of Columbia or any of the States of Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, West Virginia, and Wisconsin.CommentsClose CommentsPermalink





‘(3) ZONE 2 STATE- The term ‘Zone 2 State’ means any State within the 48 contiguous States that is not a Zone 1 State.CommentsClose CommentsPermalink





‘(b) Establishment- Not later than January 1, 2011, the Administrator shall promulgate regulations to establish 2 nitrogen oxide allowance trading programs to reduce nitrogen oxide emissions for affected units--CommentsClose CommentsPermalink





‘(1) 1 of which programs shall be for affected units in the Zone 1 States; andCommentsClose CommentsPermalink





‘(2) the other of which programs shall be for affected units in the Zone 2 States.CommentsClose CommentsPermalink





‘(c) Applicability- Beginning on January 1, 2012, each source that includes 1 or more affected units shall be an affected source under this section.CommentsClose CommentsPermalink





‘(d) Limitations on Emissions-CommentsClose CommentsPermalink





‘(1) ZONE 1 PROHIBITION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Beginning on January 1, 2012, it shall be unlawful for the affected units at an affected source in a Zone 1 State to emit a total quantity of nitrogen oxides during a calendar year in excess of the number of nitrogen oxide allowances held for the affected source for that year by the owners and operators of the affected source and the affected units.CommentsClose CommentsPermalink





‘(B) LIMITATION- Only nitrogen oxide allowances described in paragraphs (1)(A) and (6) of subsection (f) shall be held in order to meet the requirements of subparagraph (A).CommentsClose CommentsPermalink





‘(2) ZONE 2 PROHIBITION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Beginning on January 1, 2012, it shall be unlawful for the affected units at an affected source in a Zone 2 State to emit a total quantity of nitrogen oxides during a calendar year in excess of the number of nitrogen oxide allowances held for the affected source for that year by the owners and operators of the affected source and the affected units.CommentsClose CommentsPermalink





‘(B) LIMITATION- Only nitrogen oxide allowances described in subsection (f)(1)(B) shall be held in order to meet the requirements of subparagraph (A).CommentsClose CommentsPermalink





‘(3) ZONE 1 STATE LIMITATIONS ON TOTAL EMISSIONS- The Administrator shall issue allowances authorizing an annual tonnage of emissions of nitrogen oxides from affected units in the Zone 1 States that are equal, in the aggregate, to--CommentsClose CommentsPermalink





‘(A) for each of calendar years 2012 through 2014, 1,390,000 tons;CommentsClose CommentsPermalink





‘(B) for each of calendar years 2015 through 2019, 1,300,000 tons; andCommentsClose CommentsPermalink





‘(C) for calendar year 2020 and each calendar year thereafter--CommentsClose CommentsPermalink





‘(i) 1,300,000 tons; orCommentsClose CommentsPermalink





‘(ii) a lesser quantity, if the Administrator determines that emissions should be reduced further--CommentsClose CommentsPermalink





‘(I) to protect public health or the environment;CommentsClose CommentsPermalink





‘(II) to assist with attainment or maintenance with respect to national ambient air quality standards; orCommentsClose CommentsPermalink





‘(III) to assist States in meeting emission reduction obligations under section 110(a)(2)(D).CommentsClose CommentsPermalink





‘(4) ZONE 2 STATE LIMITATIONS ON TOTAL EMISSIONS- The Administrator shall issue allowances authorizing an annual tonnage limitation for emissions of nitrogen oxides from affected units in the Zone 2 States that are equal, in the aggregate, to--CommentsClose CommentsPermalink





‘(A) for each of calendar years 2012 through 2014, 510,000 tons;CommentsClose CommentsPermalink





‘(B) for each of calendar years 2015 through 2019, 320,000 tons; andCommentsClose CommentsPermalink





‘(C) for calendar year 2020 and each calendar year thereafter--CommentsClose CommentsPermalink





‘(i) 320,000 tons; orCommentsClose CommentsPermalink





‘(ii) a lesser quantity, if the Administrator determines that emissions should be reduced further--CommentsClose CommentsPermalink





‘(I) to protect public health or the environment;CommentsClose CommentsPermalink





‘(II) to assist with attainment or maintenance with respect to national ambient air quality standards; orCommentsClose CommentsPermalink





‘(III) to assist States in meeting emission reduction obligations under section 110(a)(2)(D).CommentsClose CommentsPermalink





‘(e) Regulations- The regulations promulgated by the Administrator to carry out this section shall establish requirements for the allowance trading program under this section, including requirements concerning--CommentsClose CommentsPermalink





‘(1) the selection of a designated representative for each affected source, who shall make all submissions to the Administrator under this section for the affected source;CommentsClose CommentsPermalink





‘(2) the issuance, recording, tracking, holding, transfer, auction, and use of nitrogen oxide allowances;CommentsClose CommentsPermalink





‘(3) the monitoring and reporting of emissions, quality assurance of data, and recordkeeping, which shall be consistent with section 412(a) and section 412(d), as applied to the owners and operators of an affected unit and an affected source, except that subsection (a) shall apply in lieu of the deadlines for promulgation of regulations under subsections (a) and (d) of section 412;CommentsClose CommentsPermalink





‘(4) excess emission penalties and offsets in accordance with section 411;CommentsClose CommentsPermalink





‘(5) permits in accordance with section 408(h)(3) and title V, as applied to--CommentsClose CommentsPermalink





‘(A) an affected unit and an affected source; andCommentsClose CommentsPermalink





‘(B) allowances under subsection (f);CommentsClose CommentsPermalink





‘(6) provisions that require--CommentsClose CommentsPermalink





‘(A) a statement submitted by the designated representative of an owner or operator that the owner or operator will hold allowances authorizing emissions equaling not less than the actual emissions of the affected units at the affected source, in accordance with this section, to be considered to meet the compliance planning requirements of title V; andCommentsClose CommentsPermalink





‘(B) recordation by the Administrator of a transfer of allowances to amend automatically all applicable permit applications, compliance plans, and permits; andCommentsClose CommentsPermalink





‘(7) the public availability of all information concerning the activities described in paragraphs (1) through (5) that is not confidential or is emission data that, pursuant to section 114(c), cannot be confidential.CommentsClose CommentsPermalink





‘(f) Allowances-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than January 1, 2012, the Administrator shall promulgate regulations to establish a methodology for 2 distributions of the nitrogen oxide allowances to--CommentsClose CommentsPermalink





‘(A) each affected unit in a Zone 1 State in accordance with subsection (d)(3); andCommentsClose CommentsPermalink





‘(B) each affected unit in a Zone 2 State in accordance with subsection (d)(4).CommentsClose CommentsPermalink





‘(2) ACCOUNTING- The Administrator shall account in the nitrogen oxide allowance distribution methodology for a reserve of allowances for new units in Zone 1 States and Zone 2 States.CommentsClose CommentsPermalink





‘(3) TIMING OF ALLOCATIONS- Not later than January 1, 2011, and each year thereafter, the Administrator shall allocate allowances to affected units.CommentsClose CommentsPermalink





‘(4) DISTRIBUTION OF ALLOWANCES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The regulations promulgated under paragraph (1) shall provide that the Administrator shall--CommentsClose CommentsPermalink





‘(i) establish an auction for distributing nitrogen oxide allowances to affected units; andCommentsClose CommentsPermalink





‘(ii) require--CommentsClose CommentsPermalink





‘(I) a total of zero nitrogen oxide allowances in calendar years 2011 through 2013 to be offered for sale in an auction;CommentsClose CommentsPermalink





‘(II) that the total number of nitrogen oxide allowances to be offered for sale at auction in calendar year 2014 shall--CommentsClose CommentsPermalink

‘(aa) be the same as the total number of sulfur dioxide allowances issued under section 418(d)(2)(A) for that calendar year; andCommentsClose CommentsPermalink

‘(bb) increase by 10 percent for each calendar year thereafter; andCommentsClose CommentsPermalink

‘(III) subject to subparagraph (B), that the remaining allowances shall be distributed in 2 pools that are determined by the Administrator to provide for a fair and equitable distribution of allowances between--CommentsClose CommentsPermalink

‘(aa) affected units that shall receive Zone 1 allowances; andCommentsClose CommentsPermalink

‘(bb) affected units that shall receive Zone 2 allowances.CommentsClose CommentsPermalink

‘(B) NO ALLOCATION BASED ON CERTAIN ADJUSTMENT FACTORS- The Administrator shall determine the allocation methodology for use in implementing subparagraph (A)(ii)(III), but shall not allocate nitrogen oxide allowances to affected units based on baseline heat input fuel adjustment factors.CommentsClose CommentsPermalink





‘(5) PREVIOUSLY BANKED ALLOWANCES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Any nitrogen oxide allowances issued under the rules referred to in section 417(a) concerning annual nitrogen oxide emissions for any vintage year before 2012 that are not used to meet any requirements under those rules, and that are not otherwise retired by the Administrator, may be used to meet requirements under this section concerning annual nitrogen oxide emissions applicable to sources in Zone 1 States.CommentsClose CommentsPermalink





‘(B) NATURE OF ALLOWANCES- Each allowance described in subparagraph (A) is a limited authorization to emit, in accordance with the requirements of this section, 1 ton of nitrogen oxide.CommentsClose CommentsPermalink





‘(6) NO PROPERTY RIGHT- An allowance issued under this section does not constitute a property right.CommentsClose CommentsPermalink





‘(g) Effect on Other Requirements-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Nothing in this section exempts or excludes the owner or operator of any affected source or affected unit from compliance with any other applicable requirements of this Act, and any liability for excess emission penalties under this section shall not limit the application of section 113, 114, 120, or 304 to the owner or operator.CommentsClose CommentsPermalink





‘(2) SEPARATE VIOLATIONS- Each ton of nitrogen oxides emitted in violation of paragraph (1) or (2) of subsection (d), as implemented in the regulations promulgated under subsection (e), shall be a violation of this title, and, for a calendar year during which the emission occurs, each day of that year shall be a violation of this title.’.CommentsClose CommentsPermalink





(b) Conforming Amendments- Section 411 of the Clean Air Act (42 U.S.C. 7651j) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by striking the subsection designation and heading and all that follows through ‘That penalty’ and inserting the following:CommentsClose CommentsPermalink





‘(a) Excess Emissions Penalty- The owner or operator of any unit or process source subject to the requirements of sections 403, 404, 405, 406, 407, 409, 410, 417, or 418, or designated under section 419, that emits sulfur dioxide or nitrogen oxides for any calendar year in excess of the emission limitation requirement applicable to the unit or source or in excess of the allowances the owner or operator holds for use for the unit or source for that calendar year, shall be liable for the payment of an excess emissions penalty, except in a case in which the emissions were authorized pursuant to section 110(f). The excess emission penalty for the phase II sulfur dioxide requirements under section 418 and for the nitrogen oxide control and trading program requirements under section 419 shall be calculated on the basis of the number of tons emitted in excess of the allowances the operator holds for use for the unit for that year, multiplied by 2 times the market price of such allowances for the same vintage year emission allowances. Any such penalty shall be immediately due and payable without demand to the Administrator as provided in regulations to be issued by the Administrator under sections 418 and 419. For the requirements established under title IV of the Clean Air Act Amendments of 1990, that penalty’; andCommentsClose CommentsPermalink





(2) in subsection (b), by striking the subsection designation and heading and all that follows through ‘The owner or operator of the source shall,’ and inserting the following:CommentsClose CommentsPermalink





‘(b) Excess Emission Offset- The owner or operator of any affected source or any affected unit that emits sulfur dioxide or nitrogen oxides during any calendar year in excess of the emissions limitation requirement of the unit or of the allowances held for the unit for the calendar year shall be liable to offset the excess emission by an equal tonnage amount in the following calendar year, or such longer period as the Administrator may prescribe. The owner or operator of the source or the unit shall,’.CommentsClose CommentsPermalink

SEC. 4. MERCURY REDUCTIONS FOR THE COAL-FIRED ELECTRIC GENERATING SECTOR.

(a) MACT Mercury Requirement Reductions- Section 112(d) of the Clean Air Act (42 U.S.C. 7412(d)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(11) ELECTRIC UTILITY STEAM GENERATING UNITS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Administrator shall regulate coal- and oil-fired electric utility steam generating units under section 112(d).CommentsClose CommentsPermalink





‘(B) MINIMUM PERCENT REDUCTION IN EMISSIONS- In promulgating emission standards for the coal-fired electric utility steam generating units under this section, the Administrator shall--CommentsClose CommentsPermalink





‘(i) ensure that such standards achieve at least a 90-percent reduction in emissions of mercury when applied to the listed category as a whole; andCommentsClose CommentsPermalink





‘(ii) consult with States that already have a coal-fired electric utility steam generating unit mercury reduction program in place before setting the standard.CommentsClose CommentsPermalink





‘(C) FAILURE TO PROMULGATE LIMITATIONS- If the Administrator fails to promulgate nationally applicable emission limitations under this paragraph for electric utility steam generating units by January 1, 2012, electric utility steam generating units in existence as of that date shall be required to meet, by not later than January 1, 2015, maximum achievable control technology emission limitations, as determined on a case-by-case basis under section 112(j).’.CommentsClose CommentsPermalink





(b) Electric Utility Steam Generating Unit Monitoring and Reporting Program- Section 112 of the Clean Air Act (42 U.S.C. 7412) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(t) Mercury Monitoring and Reporting Program-CommentsClose CommentsPermalink





‘(1) MONITORING- The Administrator shall promulgate regulations requiring--CommentsClose CommentsPermalink





‘(A) the operation, reporting, and certification of continuous emission monitoring systems to accurately measure the quantity of mercury that is emitted by electric coal utility steam generating units; andCommentsClose CommentsPermalink





‘(B) verification and reporting of mercury emissions at each electric coal utility steam generating unit.CommentsClose CommentsPermalink





‘(2) REPORTING-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Not less often than quarterly, the owner or operator of an affected unit that is an electric coal utility steam generating 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 paragraph (1).CommentsClose CommentsPermalink





‘(B) AUTHORIZATION- Each report submitted under subparagraph (A) shall be authorized by a responsible official of the electric coal utility steam generating 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 mercury from each electric coal utility steam generating unit.’.CommentsClose CommentsPermalink

SEC. 5. EFFECT ON OTHER LAW.

Except as specifically provided in this Act or an amendment made by this Act, nothing in this Act modifies or otherwise affects any authority or obligation set forth in the Clean Air Act (42 U.S.C. 7401 et seq.), including sections 110(a)(2)(D), 112, and 126 of that Act (42 U.S.C. 7410(a)(2)(D), 7412, 7426).CommentsClose CommentsPermalink