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S. 1201 (110th): Clean Power Act of 2007


The text of the bill below is as of Apr 24, 2007 (Introduced). The bill was not enacted into law.


II

110th CONGRESS

1st Session

S. 1201

IN THE SENATE OF THE UNITED STATES

April 24, 2007

(for himself, Mr. Lieberman, Mr. Leahy, and Mr. Feingold) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works

A BILL

To amend the Clean Air Act to reduce emissions from electric powerplants, and for other purposes.

1.

Short title

This Act may be cited as the Clean Power Act of 2007.

2.

Electric energy generation emission reductions

(a)

In general

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

VII

Electric energy generation emission reductions

Sec. 701. Findings.

Sec. 702. Purposes.

Sec. 703. Definitions.

Sec. 704. Emission limitations.

Sec. 705. Emission allowances.

Sec. 706. Permitting and trading of emission allowances.

Sec. 707. Emission allowance allocation.

Sec. 708. Mercury emission limitations.

Sec. 709. Other hazardous air pollutants.

Sec. 710. Emission standards for affected units.

Sec. 711. Low-carbon generation requirement.

Sec. 712. Geological disposal of global warming pollutants.

Sec. 713. Energy efficiency performance standard.

Sec. 714. Renewable portfolio standard.

Sec. 715. Standards to account for biological sequestration of carbon.

Sec. 716. Effect of failure to promulgate regulations.

Sec. 717. Prohibitions.

Sec. 718. Modernization of electric generation facilities.

Sec. 719. Condition for treatment of electric generation facilities after 2020.

Sec. 720. Paramount interest waiver.

Sec. 721. Relationship to other law.

701.

Findings

Congress finds that—

(1)

public health and the environment continue to suffer as a result of pollution emitted by powerplants across the United States, despite the success of Public Law 101–549 (commonly known as the Clean Air Act Amendments of 1990) (42 U.S.C. 7401 et seq.) in reducing emissions;

(2)

according to the most reliable scientific knowledge, acid rain precursors must be significantly reduced for the ecosystems of the Northeast and Southeast to recover from the ecological harm caused by acid deposition;

(3)

because lakes and sediments across the United States are being contaminated by mercury emitted by powerplants, there is an increasing risk of mercury poisoning of aquatic habitats and fish-consuming human populations;

(4)

electricity generation accounts for approximately 40 percent of the total emissions in the United States of carbon dioxide, a major global warming pollutant causing global warming;

(5)

the cumulative impact of powerplant emissions on public and environmental health must be addressed swiftly by reducing those harmful emissions to levels that are less threatening;

(6)

1,803,000,000 metric tons of carbon dioxide equivalent were emitted during 1990;

(7)
(A)

the atmosphere is a public resource; and

(B)

emission allowances, representing permission to use that resource for disposal of air pollution from electricity generation, should be allocated to promote public purposes, including—

(i)

protecting electricity consumers from adverse economic impacts;

(ii)

providing transition assistance to adversely affected employees, communities, and industries; and

(iii)

promoting clean energy resources and energy efficiency;

(8)

an array of technological options exist for use in reducing global warming pollution emissions, and significant reductions can be attained using a portfolio of options that will not adversely impact the economy;

(9)

the ingenuity of the people of the United States will allow the United States to become a leader in solving global warming; and

(10)

it should be a goal of the United States to achieve a reduction in global warming pollution emissions in the United States—

(A)

to ensure that the average global temperature does not increase by more than 3.6 degrees Fahrenheit (2 degrees Celsius); and

(B)

to ensure the achievement of an average global atmospheric concentration of global warming pollutants that does not exceed 450 parts per million in carbon dioxide equivalent.

702.

Purposes

The purposes of this title are—

(1)

to alleviate the environmental and public health damage caused by emissions of sulfur dioxide, nitrogen oxides, global warming pollutants, and mercury resulting from the combustion of fossil fuels in the generation of electric and thermal energy;

(2)

to reduce the annual national emissions from electric generation facilities to not more than—

(A)

for calendar years 2010 through 2012—

(i)

2,250,000 tons of sulfur dioxide; and

(ii)

1,510,000 tons of nitrogen oxides; and

(B)

for calendar year 2013 and each calendar year thereafter—

(i)

1,300,000 tons of sulfur dioxide; and

(ii)

900,000 tons of nitrogen oxides;

(3)
(A)

to reduce, by December 31, 2012, the annual national emissions of mercury from electric generation facilities to not more than 5 tons; and

(B)

to the maximum extent practicable, to achieve a facility-specific reduction in emissions of mercury of more than 90 percent;

(4)

beginning in calendar year 2010, to reduce each calendar year the annual national emissions of global warming pollutants from electric generation facilities to achieve a reduction in emissions of global warming pollutants equal to—

(A)

by December 31, 2011, not more than 2,300,000,000 metric tons of carbon dioxide equivalent;

(B)

by December 31, 2015, not more than 2,100,000,000 metric tons of carbon dioxide equivalent;

(C)

by December 31, 2020, not more than 1,803,000,000 metric tons of carbon dioxide equivalent; and

(D)

by December 31, 2025, not more than 1,500,000,000 metric tons of carbon dioxide equivalent;

(5)

to effectuate the reductions described in paragraphs (2) through (4) by—

(A)

requiring electric generation facilities to comply with specified emission limitations by specified deadlines; and

(B)

allowing electric generation facilities to meet the emission limitations (other than the emission limitation for mercury) through an alternative method of compliance consisting of an emission allowance and transfer system;

(6)

to reduce, by December 31, 2050, emissions from power plants of global warming pollutants that cause global warming to facilitate the achievement of an economy-wide reduction, consistent with the goal of stabilization of worldwide atmospheric concentrations of global warming pollutants at 450 parts per million carbon dioxide equivalent; and

(7)

to encourage energy conservation, use of renewable and clean alternative technologies, and pollution prevention as long-range strategies, consistent with this title, for reducing air pollution and other adverse impacts of energy generation and use.

703.

Definitions

In this title:

(1)

Academy

The term Academy means the National Academy of Sciences.

(2)

Carbon dioxide equivalent

The term carbon dioxide equivalent means, for each global warming pollutant, the quantity of the global warming pollutant that makes the same contribution to global warming as 1 metric ton of carbon dioxide, as determined by the Administrator, taking into consideration the report described in section 705(d)(1).

(3)

Covered pollutant

The term covered pollutant means—

(A)

sulfur dioxide;

(B)

any nitrogen oxide;

(C)

mercury; and

(D)

any global warming pollutant.

(4)

Electric generation facility

The term electric generation facility means an electric or thermal electricity generating unit, a combination of such units, or a combination of 1 or more such units and 1 or more combustion devices, that—

(A)

has a nameplate capacity of 25 megawatts or more (or the equivalent in thermal energy generation, determined in accordance with a methodology developed by the Administrator);

(B)

generates electric energy, for sale, through combustion of fossil fuel; and

(C)

emits a covered pollutant into the atmosphere.

(5)

Electricity intensive product

The term electricity intensive product means a product with respect to which the cost of electricity consumed in the production of the product represents more than 5 percent of the value of the product.

(6)

Emission allowance

The term emission allowance means a limited authorization to emit in accordance with this title—

(A)

1 ton of sulfur dioxide;

(B)

1 ton of nitrogen oxides; or

(C)

1 ton of global warming pollutant.

(7)

Energy efficiency project

The term energy efficiency project means any specific action (other than ownership or operation of an energy efficient building) commenced after the date of enactment of this title—

(A)

at a facility (other than an electric generation facility), that verifiably reduces the annual electricity or natural gas consumption per unit output of the facility, as compared with the annual electricity or natural gas consumption per unit output that would be expected in the absence of an allocation of emission allowances (as determined by the Administrator); or

(B)

by an entity that is primarily engaged in the transmission and distribution of electricity, that significantly improves the efficiency of that type of entity, as compared with standards for efficiency developed by the Administrator, in consultation with the Secretary of Energy, after the date of enactment of this title.

(8)

Energy efficient building

The term energy efficient building means a residential building or commercial building completed after the date of enactment of this title for which the projected lifetime consumption of electricity or natural gas for heating, cooling, and ventilation is at least 30 percent less than the lifetime consumption of a typical new residential building or commercial building, as determined by the Administrator (in consultation with the Secretary of Energy)—

(A)

on a State or regional basis; and

(B)

taking into consideration—

(i)

applicable building codes; and

(ii)

consumption levels achieved in practice by new residential buildings or commercial buildings in the absence of an allocation of emission allowances.

(9)

Energy efficient product

The term energy efficient product means a product manufactured after the date of enactment of this title that has an expected lifetime electricity or natural gas consumption that—

(A)

is less than the average lifetime electricity or natural gas consumption for that type of product; and

(B)

does not exceed the lesser of—

(i)

the maximum energy consumption that qualifies for the applicable Energy Star label for that type of product; or

(ii)

the average energy consumption of the most efficient 25 percent of that type of product manufactured in the same year.

(10)

Facility

The term facility means any building, structure, or installation that is located—

(A)

on 1 or more contiguous or adjacent properties under the common control of at least 1 person; and

(B)

in the United States.

(11)

Global warming pollutant

The term global warming pollutant means—

(A)

carbon dioxide;

(B)

methane;

(C)

nitrous oxide;

(D)

hydrofluorocarbons;

(E)

perfluorocarbons;

(F)

sulfur hexafluoride; and

(G)

any other anthropogenically-emitted gas that the Administrator, after notice and comment, determines to contribute to global warming.

(12)

Global warming pollution

The term global warming pollution means any combination of 1 or more global warming pollutants emitted into the ambient air or atmosphere.

(13)

Lifetime

The term lifetime means—

(A)

in the case of a residential building that is an energy efficient building, 30 years;

(B)

in the case of a commercial building that is an energy efficient building, 15 years; and

(C)

in the case of an energy efficient product, a period determined by the Administrator to be the average life of that type of energy efficient product.

(14)

Mercury

The term mercury includes any mercury compound.

(15)

NAS report

The term NAS report means a report completed by the Academy under subsection (d)(1) or (e)(2) of section 705.

(16)

Nonwestern region

The term nonwestern region means the area of the States that is not included in the western region.

(17)

Renewable electricity generating unit

The term renewable electricity generating unit means a unit that—

(A)

has been in operation for 10 years or less; and

(B)

generates electric energy by means of—

(i)

wind;

(ii)

biomass;

(iii)

landfill gas;

(iv)

a geothermal, solar thermal, or photovoltaic source; or

(v)

a fuel cell operating on fuel derived from a renewable source of energy.

(18)

Small electric generation facility

The term small electric generation facility means an electric or thermal electricity generating unit, or combination of units, that—

(A)

has a nameplate capacity of less than 25 megawatts (or the equivalent in thermal energy generation, determined in accordance with a methodology developed by the Administrator);

(B)

generates electric energy, for sale, through combustion of fossil fuel; and

(C)

emits a covered pollutant into the atmosphere.

(19)

Western region

The term western region means the area comprising the States of Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

704.

Condition for treatment of electric generation facilities after 2020

If, by December 31, 2012, Congress does not enact, and the President does not sign, an Act affecting at least 85 percent of manmade sources of global warming pollution in the United States designed to reduce, on an economy-wide basis, the quantity of global warming pollutants emitted from those sources, the emissions limitations for electric generation facilities shall be successively decreased by at least 3 percent below the limitations required by this title for the preceding calendar year—

(1)

for each of calendar years 2026 through 2050;

(2)

until, as determined by the Administrator, the purpose described in section 702(6) is achieved; or

(3)

until Congress enacts, and the President signs, such an Act.

705.

Emission limitations

(a)

In general

Subject to subsections (b) through (e), the Administrator shall promulgate regulations to ensure that the total annual emissions of covered pollutants from all electric generation facilities located in all States does not exceed—

(1)

in the case of sulfur dioxide—

(A)

in the western region—

(i)

for calendar years 2010 through 2012, 274,500 tons; and

(ii)

for calendar year 2013 and each calendar year thereafter, 158,600 tons; and

(B)

in the nonwestern region—

(i)

for calendar years 2010 through 2012, 1,975,500 tons; and

(ii)

for calendar year 2013 and each calendar year thereafter, 1,141,400 tons;

(2)

in the case of nitrogen oxides—

(A)

for calendar years 2010 through 2012, 1,510,000 tons; and

(B)

for calendar year 2013 and each calendar year thereafter, 900,000 tons;

(3)

in the case of global warming pollutants, beginning in calendar year 2010, a quantity to be reduced each calendar year to achieve a reduction in emissions of global warming pollutants equal to—

(A)

by December 31, 2011, not more than 2,300,000,000 metric tons of carbon dioxide equivalent;

(B)

by December 31, 2015, not more than 2,100,000,000 metric tons of carbon dioxide equivalent;

(C)

by December 31, 2020, not more than 1,803,000,000 metric tons of carbon dioxide equivalent; and

(D)

by December 31, 2025, not more than 1,500,000,000 metric tons of carbon dioxide equivalent; and

(4)

in the case of mercury, by December 31, 2012, and during each calendar year thereafter, the lower of, as applicable—

(A)

5 tons; and

(B)

to the maximum extent practicable, with respect to an electric generation facility, a quantity of mercury emissions that represents more than a 90-percent reduction of emissions of mercury by the electric generation facility, as compared to the average emissions of mercury during calendar years 2009 through 2011.

(b)

Excess emissions based on unused allowances

The regulations promulgated under subsection (a) shall authorize emissions of covered pollutants in excess of the national emission limitations established under that subsection for a calendar year to the extent that the number of tons of the excess emissions is less than or equal to the number of emission allowances that are—

(1)

used in the calendar year; but

(2)

allocated for any preceding calendar year under section 708.

(c)

Reductions

For calendar year 2010 and each calendar year thereafter, the quantity of emissions specified for each covered pollutant in subsection (a) shall be reduced by the sum of—

(1)

the number of tons of the covered pollutant that were emitted by small electric generation facilities in the second preceding calendar year; and

(2)

any number of tons of reductions in emissions of the covered pollutant required under section 706(h).

(d)

Accelerated global warming pollution emissions limitations

(1)

Academy report on global change events

(A)

In general

The Administrator shall offer to enter into a contract with the Academy under which the Academy, not later than 2 years after the date of enactment of this title, and every 3 years thereafter, shall submit to Congress and the Administrator a report that describes whether any event described in subparagraph (B)—

(i)

has occurred or is more likely than not to occur in the foreseeable future; and

(ii)

in the judgment of the Academy, is the result of anthropogenic climate change.

(B)

Events

The events referred to in subparagraph (A) are—

(i)

the exceedance of an atmospheric concentration of global warming pollutants of 450 parts per million in carbon dioxide equivalent; and

(ii)

an increase of global average temperatures in excess of 3.6 degrees Fahrenheit (2 degrees Celsius) above the preindustrial average.

(2)

Acceleration of limitations

If a NAS report determines that an event described in paragraph (1)(B) has occurred, or is more likely than not to occur in the foreseeable future, not later than 2 years after the date of completion of the NAS report, the Administrator, after an opportunity for notice and public comment and taking into consideration the new information contained in the NAS report, may—

(A)

adjust any global warming pollution emissions limitation under this section; and

(B)

promulgate such regulations as the Administrator determines to be necessary—

(i)

to reduce the aggregate net levels of global warming pollution emissions from the United States on an accelerated schedule; and

(ii)

to minimize the effects of rapid climate change and otherwise achieve the purposes of this title.

(e)

Report on achievement of global warming pollution emissions limitations

(1)

Definition of technologically infeasible

In this subsection, the term technologically infeasible, with respect to compliance with a standard or requirement under this subsection, means that adequate technology or infrastructure does not exist, or is not reasonably anticipated to exist, within a sufficient time to permit compliance with the standard or requirement.

(2)

Technology reports

The Administrator shall offer to enter into a contract with the Academy under which the Academy, not later than 2 years after the date of enactment of this title and every 3 years thereafter, shall submit to Congress and the Administrator a report that analyzes—

(A)

the status of current global warming pollution emission reduction technologies, including—

(i)

technologies for capture and disposal of global warming pollutants;

(ii)

efficiency improvement technologies;

(iii)

zero-global-warming-pollution-emitting energy technologies; and

(iv)

above- and below-ground biological sequestration technologies;

(B)

whether any requirement under this title (including regulations promulgated pursuant to this title) requires a level of emission control or reduction that, based on available or expected technology, will be technologically infeasible at the time at which the requirement becomes effective;

(C)

the projected date on which any technology determined to be technologically infeasible will become technologically feasible;

(D)

whether any technology determined to be technologically infeasible cannot reasonably be expected to become technologically feasible before January 1, 2050; and

(E)

the costs of available alternative global warming pollution emission reduction strategies that could be used or pursued in lieu of any technology that is determined to be technologically infeasible.

(3)

Conclusion

If a NAS report concludes that a global warming pollution emissions limitation required by this section cannot be achieved because the limitation is technologically infeasible, the Administrator shall submit to Congress a notification of that conclusion.

(4)

Evaluation of certain purpose

Not later than December 31, 2037, the Administrator shall offer to enter into a contract with the Academy under which, not later than December 31, 2039, the Academy shall prepare and submit to Congress and the Administrator a report on the appropriateness of the purpose described in section 702(6), taking into consideration—

(A)

information that was not available as of the date of enactment of this title; and

(B)

events that have occurred since that date relating to—

(i)

climate change;

(ii)

climate change technologies; and

(iii)

national and international climate change commitments.

706.

Emission allowances

(a)

Creation and allocation

(1)

In general

Subject to paragraphs (2) and (3), there are created, and the Administrator shall allocate in accordance with section 708, emission allowances as follows:

(A)

In the case of sulfur dioxide—

(i)

in the western region—

(I)

for calendar years 2010 through 2012, emission allowances for 274,500 tons; and

(II)

for calendar year 2013 and each calendar year thereafter, emission allowances for 158,600 tons; and

(ii)

in the nonwestern region—

(I)

for calendar years 2010 through 2012, emission allowances for 1,975,500 tons; and

(II)

for calendar year 2013 and each calendar year thereafter, emission allowances for 1,141,400 tons.

(B)

In the case of nitrogen oxides—

(i)

for calendar years 2010 through 2012, emission allowances for 1,510,000 tons; and

(ii)

for calendar year 2013 and each calendar year thereafter, emission allowances for 900,000 tons.

(C)

In the case of global warming pollutants, beginning in calendar year 2010, a quantity of emission allowances to be reduced each calendar year to achieve a reduction in emissions of global warming pollutants equal to—

(i)

by December 31, 2011, not more than 2,300,000,000 metric tons of carbon dioxide equivalent;

(ii)

by December 31, 2015, not more than 2,100,000,000 metric tons of carbon dioxide equivalent;

(iii)

by December 31, 2020, not more than 1,803,000,000 metric tons of carbon dioxide equivalent; and

(iv)

by December 31, 2025, not more than 1,500,000,000 metric tons of carbon dioxide equivalent.

(2)

Reductions

For calendar year 2010 and each calendar year thereafter, the number of emission allowances specified for each covered pollutant in paragraph (1) shall be reduced by a number equal to the sum of—

(A)

the number of tons of the covered pollutant that were emitted by small electric generation facilities in the second preceding calendar year; and

(B)

any number of tons of reductions in emissions of the covered pollutant required under subsection (h).

(3)

Updates

Once every 5 years, the Administrator shall—

(A)

review the formula by which the Administrator allocates allowances under this title; and

(B)

update that formula, as the Administrator determines to be necessary given the results of the review.

(b)

Nature of emission allowances

(1)

Not a property right

An emission allowance allocated by the Administrator under subsection (a) is not a property right.

(2)

No limit on authority to terminate or limit

Nothing in this title or any other provision of law limits the authority of the United States to terminate or limit an emission allowance.

(3)

Tracking and transfer of emission allowances

(A)

In general

Not later than 1 year after the date of enactment of this title, the Administrator shall promulgate regulations to establish an emission allowance tracking and transfer system for emission allowances of sulfur dioxide, nitrogen oxides, and global warming pollutants.

(B)

Requirements

The emission allowance tracking and transfer system established under subparagraph (A) shall—

(i)

incorporate the requirements of subsections (b) and (d) of section 412 (except that written certification by the transferee shall not be necessary to effect a transfer); and

(ii)

permit any entity—

(I)

to buy, sell, or hold an emission allowance; and

(II)

to permanently retire an unused emission allowance.

(C)

Proceeds of transfers

Proceeds from the transfer of emission allowances by any person to which the emission allowances have been allocated—

(i)

shall not constitute funds of the United States; and

(ii)

shall not be available to meet any obligations of the United States.

(c)

Identification and use

(1)

In general

Each emission allowance allocated by the Administrator shall bear a unique serial number, including—

(A)

an identifier of the covered pollutant to which the emission allowance pertains; and

(B)

the first calendar year for which the allowance may be used.

(2)

Sulfur dioxide emission allowances

In the case of sulfur dioxide emission allowances, the Administrator shall ensure that the emission allowances allocated to electric generation facilities in the western region are distinguishable from emission allowances allocated to electric generation facilities in the nonwestern region.

(3)

Year of use

Each emission allowance may be used in the calendar year for which the emission allowance is allocated or in any subsequent calendar year.

(d)

Annual submission of emission allowances

(1)

In general

On or before April 1, 2011, and April 1 of each year thereafter, the owner or operator of each electric generation facility shall submit to the Administrator 1 emission allowance for the applicable covered pollutant (other than mercury) for each ton of sulfur dioxide, nitrogen oxides, or global warming pollutants emitted by the electric generation facility during the preceding calendar year.

(2)

Special rule for ozone exceedances

(A)

Identification of facilities contributing to nonattainment

Not later than December 31, 2009, and the end of each 3-year period thereafter, each State, consistent with the obligations of the State under section 110(a)(2)(D), shall identify the electric generation facilities in the State and in other States that are significantly contributing (as determined based on guidance issued by the Administrator) to nonattainment of the national ambient air quality standard for ozone in the State.

(B)

Submission of additional allowances

In calendar year 2010 and each calendar year thereafter, on petition from a State or a person demonstrating that the control measures in effect at an electric generation facility that is identified under subparagraph (A) as significantly contributing to nonattainment of the national ambient air quality standard for ozone in a State during the preceding calendar year are inadequate to prevent the significant contribution described in subparagraph (A), the Administrator, if the Administrator determines that the electric generation facility is inadequately controlled for nitrogen oxides, may require that the electric generation facility submit 3 nitrogen oxide emission allowances for each ton of nitrogen oxides emitted by the electric generation facility during any period of an exceedance of the national ambient air quality standard for ozone in the State during the preceding calendar year.

(3)

Regional limitations for sulfur dioxide

The Administrator shall not allow—

(A)

the use of sulfur dioxide emission allowances allocated for the western region to meet the obligations under this subsection of electric generation facilities in the nonwestern region; or

(B)

the use of sulfur dioxide emission allowances allocated for the nonwestern region to meet the obligations under this subsection of electric generation facilities in the western region.

(e)

Emission verification, monitoring, and recordkeeping

(1)

In general

The Administrator shall ensure that Federal regulations, in combination with any applicable State regulations, are adequate to verify, monitor, and document emissions of covered pollutants from electric generation facilities.

(2)

Inventory of emissions from small electric generation facilities

On or before July 1, 2008, the Administrator, in cooperation with State agencies, shall complete, and on an annual basis update, a comprehensive inventory of emissions of sulfur dioxide, nitrogen oxides, global warming pollutants, and particulate matter from small electric generation facilities.

(3)

Monitoring information

(A)

In general

Not later than 180 days after the date of enactment of this title, the Administrator shall promulgate regulations to require each electric generation facility to submit to the Administrator—

(i)

not later than April 1 of each year, verifiable information on covered pollutants emitted by the electric generation facility in the preceding calendar year, expressed in—

(I)

tons of covered pollutants; and

(II)

tons of covered pollutants per megawatt hour of energy (or the equivalent thermal energy) generated; and

(ii)

as part of the first submission under clause (i), verifiable information on covered pollutants emitted by the electric generation facility in each of calendar years 2002 through 2006 if the electric generation facility was required to report that information in those calendar years.

(B)

Source of information

Information submitted under subparagraph (A) shall be obtained using a continuous emission monitoring system (as defined in section 402).

(C)

Availability to the public

The information described in subparagraph (A) shall be made available to the public—

(i)

in the case of the first year in which the information is required to be submitted under that subparagraph, not later than 18 months after the date of enactment of this title; and

(ii)

in the case of each year thereafter, not later than April 1 of the year.

(4)

Ambient air quality monitoring for sulfur dioxide and hazardous air pollutants

(A)

In general

Beginning January 1, 2008, each coal-fired electric generation facility with an aggregate generating capacity of 50 megawatts or more shall, in accordance with guidelines issued by the Administrator, commence ambient air quality monitoring within a 30-mile radius of the coal-fired electric generation facility for the purpose of measuring maximum concentrations of sulfur dioxide and hazardous air pollutants emitted by the coal-fired electric generation facility.

(B)

Location of monitoring points

Monitoring under subparagraph (A) shall include monitoring at not fewer than 2 points—

(i)

that are at ground level and within 3 miles of the coal-fired electric generation facility;

(ii)

at which the concentration of pollutants being monitored is expected to be the greatest; and

(iii)

at which the monitoring shall be the most frequent.

(C)

Frequency of monitoring of sulfur dioxide

Monitoring of sulfur dioxide under subparagraph (A) shall be carried out on a continuous basis and averaged over 5-minute periods.

(D)

Availability to the public

The results of the monitoring under subparagraph (A) shall be made available to the public.

(f)

Excess emission penalty

(1)

In general

Subject to paragraph (2), section 411 shall be applicable to an owner or operator of an electric generation facility.

(2)

Calculation of penalty

(A)

In general

Except as provided in subparagraph (B), the penalty for failure to submit emission allowances for covered pollutants as required under subsection (d) shall be equal to 3 times the product obtained by multiplying—

(i)

as applicable—

(I)

the number of tons emitted in excess of the emission limitation requirement applicable to the electric generation facility; or

(II)

the number of emission allowances that the owner or operator failed to submit; and

(ii)

the average annual market price of emission allowances (as determined by the Administrator).

(B)

Mercury

In the case of mercury, the penalty shall be equal to 3 times the product obtained by multiplying—

(i)

the number of grams emitted in excess of the emission limitation requirement for mercury applicable to the electric generation facility; and

(ii)

the average cost of mercury controls at electricity generating units that have a nameplate capacity of 25 megawatts or more in all States (as determined by the Administrator).

(g)

Significant adverse local impacts

(1)

In general

If the Administrator determines that emissions of an electric generation facility may reasonably be anticipated to cause or contribute to a significant adverse impact on an area (including endangerment of public health, contribution to acid deposition in a sensitive receptor area, and other degradation of the environment), the Administrator shall limit the emissions of the electric generation facility as necessary to avoid that impact.

(2)

Violation

Notwithstanding the availability of emission allowances, it shall be a violation of this Act for any electric generation facility to exceed any limitation on emissions established under paragraph (1).

(h)

Additional reductions

(1)

Protection of public health or welfare or the environment

If the Administrator determines that the emission levels necessary to achieve the national emission limitations established under section 705 are not reasonably anticipated to protect public health or welfare or the environment (including protection of children, pregnant women, minority or low-income communities, and other sensitive populations), the Administrator may require reductions in emissions from electric generation facilities in addition to the reductions required under the other provisions of this title.

(2)

Emission allowance trading

(A)

Studies

(i)

In general

In 2015 and at the end of each 3-year period thereafter, the Administrator shall complete a study of the impacts of the emission allowance trading authorized under this title.

(ii)

Required assessment

The study shall include an assessment of ambient air quality in areas surrounding electric generation facilities that participate in emission allowance trading, including a comparison between—

(I)

the ambient air quality in those areas; and

(II)

the national average ambient air quality.

(B)

Limitation on emissions

If the Administrator determines, based on the results of a study under subparagraph (A), that adverse local impacts result from emission allowance trading, the Administrator may require reductions in emissions from electric generation facilities in addition to the reductions required under the other provisions of this title.

(i)

Use of certain other emission allowances

(1)

In general

Subject to paragraph (2), emission allowances or other emission trading instruments created under title I or IV for sulfur dioxide or nitrogen oxides shall not be valid for submission under subsection (d).

(2)

Emission allowances placed in reserve

(A)

In general

An emission allowance described in paragraph (1) that was placed in reserve under section 404(a)(2) or 405 or through regulations implementing controls on nitrogen oxides, because an affected unit emitted fewer tons of sulfur dioxide or nitrogen oxides than were permitted under an emission limitation imposed under title I or IV before the date of enactment of this title, shall be valid for submission under subsection (d).

(B)

Emission allowances resulting from achievement of new source performance standards

If an emission allowance described in subparagraph (A) was created and placed in reserve during the period of 2001 through 2009 by the owner or operator of an electric generation facility through the application of pollution control technology that resulted in the achievement and maintenance by the electric generation facility of the applicable standards of performance required of new sources under section 111, the emission allowance shall be valid for submission under subsection (d).

707.

Permitting and trading of emission allowances

Not later than 1 year after the date of enactment of this title, the Administrator shall promulgate regulations to establish a permitting and emission allowance trading compliance program to implement the limitations on emissions of covered pollutants from electric generation facilities established under section 705.

708.

Emission allowance allocation

(a)

Sulfur dioxide and nitrogen oxides

(1)

Initial allocations

For calendar years 2010 through 2012, the Administrator shall allocate emission allowances for sulfur dioxide and nitrogen oxides, consistent with applicable law (including regulations).

(2)

Subsequent allocations

(A)

In general

For calendar year 2013 and each calendar year thereafter, the Administrator shall allocate emission allowances for sulfur dioxide and nitrogen oxides as the Administrator determines to be appropriate in accordance with subparagraphs (B) and (C).

(B)

Allocation factors

In allocating emission allowances for sulfur dioxide and nitrogen oxides under subparagraph (A), the Administrator, in consultation with the Secretary of Commerce, shall take into consideration the factors described in subsection (c)(1).

(b)

Global warming pollutants

(1)

In general

For calendar year 2010, the Administrator shall transfer to each trustee appointed pursuant to paragraph (4)(A) for auction not less than 50 percent of the quantity of emission allowances available for allocation for global warming pollutants for the calendar year for the purposes described in paragraph (4).

(2)

Increase in quantity

For calendar year 2011 and each calendar year thereafter, taking into consideration the factors described in paragraph (3), the Administrator shall successively increase the quantity of emission allowances transferred to trustees for auction under paragraph (1) until, by not later than 15 years after the date of enactment of this title, 100 percent of emission allowances available for allocation for global warming pollutants for a calendar year are available for auction.

(3)

Allocation factors

In transferring emission allowances to trustees for auction under paragraph (1), the Administrator, in consultation with the Secretary of Commerce, shall take into consideration the factors described in subsection (c)(1).

(4)

Requirements

Regulations promulgated to carry out this subsection may provide for, as the Administrator determines to be necessary, the appointment of 1 or more trustees—

(A)
(i)

to receive emission allowances for the benefit of households, communities, and other entities;

(ii)

to sell the emission allowances at fair market value; and

(iii)

to distribute the proceeds of any sale of emission allowances to the appropriate beneficiaries; or

(B)

to allocate emission allowances, in accordance with applicable regulations, to—

(i)

communities, individuals, and companies that have experienced disproportionate adverse impacts as a result of—

(I)

the transition to a lower carbon-emitting economy; or

(II)

global warming;

(ii)

owners and operators of highly energy-efficient buildings, including—

(I)

residential users;

(II)

producers of highly energy-efficient products; and

(III)

entities that carry out energy-efficiency improvement projects that result in consumer-side reductions in electricity use;

(iii)

entities that will use the emission allowances for the purpose of carrying out geological sequestration of carbon dioxide produced by an anthropogenic global warming pollution emission source in accordance with requirements established by the Administrator;

(iv)

such individuals and entities as the Administrator determines to be appropriate, for use in carrying out projects to reduce net carbon dioxide emissions through above-ground and below-ground biological carbon dioxide sequestration (including sequestration in forests, forest soils, agricultural soils, rangeland, or grassland in the United States);

(v)

such individuals and entities (including fish and wildlife agencies) as the Administrator determines to be appropriate, for use in carrying out projects to protect and restore ecosystems (including fish and wildlife) affected by climate change; and

(vi)

manufacturers producing consumer products that result in substantially reduced global warming pollution emissions, for use in funding rebates for purchasers of those products.

(c)

Administration

(1)

Allocation factors

Before making any allocation or transfer of emission allowances under subsection (a) or (b), the Administrator, in consultation with the Secretary of Commerce, shall take into consideration—

(A)

the distributive effect of the allocations on household income and net worth of individuals;

(B)

the impact of the allocations on corporate income, taxes, and asset value;

(C)

the impact of the allocations on income levels and energy consumption of consumers;

(D)

the effects of the allocations with respect to economic efficiency;

(E)

the ability of electric generation facilities to pass through compliance costs to customers of the electric generation facilities;

(F)

the degree to which the quantity of allocations to the covered sectors should decrease over time; and

(G)

the need to maintain the international competitiveness of United States manufacturing and avoid the additional loss of United States manufacturing jobs.

(2)

Allocation recommendations and implementation

(A)

In general

Not later than 2 years after the date of enactment of this title, and before making any allocation or transfer of emission allowances under subsection (a) or (b), the Administrator shall submit a description of any determination of the Administrator relating to the allocation or transfer under that subsection to—

(i)

the Committees on Environment and Public Works and Commerce, Science, and Transportation of the Senate; and

(ii)

the Committees on Energy and Commerce and Science of the House of Representatives.

(B)

Treatment of determinations

A determination of the Administrator described in subparagraph (A), and any allocation or transfer of emission allowances made pursuant to such a determination, shall be—

(i)

considered to be a major rule (as defined in section 804 of title 5, United States Code); and

(ii)

subject to the requirements of chapter 8 of that title.

(d)

Ratepayer protection

(1)

Definitions

In this subsection:

(A)

Affected facility

The term affected facility means an electric generation facility that uses a conventional coal technology.

(B)

Authorized rate

The term authorized rate means a rate charged for electricity generated by an affected facility that is—

(i)

authorized by an appropriate regulatory agency; and

(ii)

based on, or calculated to recover, the reasonable capital and operating costs of the generation.

(C)

Conventional coal technology

The term conventional coal technology means a technology for the generation of electricity that—

(i)

involves the combustion of coal in a boiler; and

(ii)

does not provide for the capture or sequestration of carbon.

(2)

Protection

(A)

In general

Subject to paragraph (3) and except as provided in subparagraph (B), no owner or lessor of an affected facility who sells, at wholesale or retail, any electricity generated by the affected facility at an authorized rate shall recover through the authorized rate, in whole or in part, the cost of compliance with any Federal greenhouse gas reduction requirement relating to emissions from the affected facility.

(B)

Exception

Subparagraph (A) shall not apply to an owner or lessor of an affected facility if the appropriate regulatory agency determines no feasible alternative exists to the use of conventional coal technology by the affected facility.

(3)

Applicability

Paragraph (2)(A) shall apply to an owner or lessor described in that paragraph only if—

(A)

the affected facility enters operation after January 1, 2009; and

(B)

the cost of compliance described in paragraph (2) is incurred after the date of enactment of this title.

709.

Mercury emission limitations

(a)

In general

(1)

Regulations

(A)

In general

Not later than 1 year after the date of enactment of this title, the Administrator shall promulgate regulations to establish emission limitations for mercury emissions by coal-fired electric generation facilities.

(B)

No exceedance of national limitation

The regulations shall ensure that the national limitation for mercury emissions from each coal-fired electric generation facility established under section 705(a)(4)(A) (and, to the maximum extent practicable, the goal described in section 705(a)(4)(B)) is not exceeded.

(C)

Emission limitations for 2012 and thereafter

In carrying out subparagraph (A), for calendar year 2012 and each calendar year thereafter, the Administrator shall not—

(i)

subject to subsections (e) and (f) of section 112, establish limitations on emissions of mercury from coal-fired electric generation facilities that allow emissions in excess of 2.48 grams of mercury per 1000 megawatt hours; or

(ii)

differentiate between facilities that burn different types of coal.

(2)

Annual review and determination

(A)

In general

Not later than April 1 of each year, the Administrator shall—

(i)

review the total mercury emissions during the 2 preceding calendar years from electric generation facilities located in all States; and

(ii)

determine whether, during the 2 preceding calendar years, the total mercury emissions from facilities described in clause (i) exceeded the national limitation for mercury emissions established under section 705(a)(4)(A).

(B)

Exceedance of national limitation

If the Administrator determines under subparagraph (A)(ii) that, during the 2 preceding calendar years, the total mercury emissions from facilities described in subparagraph (A)(i) exceeded the national limitation for mercury emissions established under section 705(a)(4)(A), the Administrator shall, not later than 1 year after the date of the determination, revise the regulations promulgated under paragraph (1) to reduce the emission rates specified in the regulations as necessary to ensure that the national limitation for mercury emissions is not exceeded in any future year.

(3)

Compliance flexibility

(A)

In general

Each coal-fired electric generation facility subject to an emission limitation under this section shall be in compliance with that limitation if that limitation is greater than or equal to the quotient obtained by dividing—

(i)

the total mercury emissions of the coal-fired electric generation facility during each 30-day period; by

(ii)

the quantity of electricity generated by the coal-fired electric generation facility during that period.

(B)

More than 1 unit at a facility

In any case in which more than 1 coal-fired electricity generating unit at a coal-fired electric generation facility subject to an emission limitation under this section was operated in 1999 under common ownership or control, compliance with the emission limitation may be determined by averaging the emission rates of all coal-fired electricity generating units at the electric generation facility during each 30-day period.

(b)

Prevention of re-release

(1)

Regulations

Not later than July 1, 2008, the Administrator shall promulgate regulations to ensure that any mercury captured or recovered by emission controls installed at an electric generation facility is not re-released into the environment.

(2)

Required elements

The regulations shall require—

(A)

daily covers on all active waste disposal units, and permanent covers on all inactive waste disposal units, to prevent the release of mercury into the air;

(B)

monitoring of groundwater to ensure that mercury or mercury compounds do not migrate from the waste disposal unit;

(C)

waste disposal siting requirements and cleanup requirements to protect groundwater and surface water resources;

(D)

elimination of agricultural application of coal combustion wastes; and

(E)

appropriate limitations on mercury emissions from sources or processes that reprocess or use coal combustion waste, including manufacturers of wallboard and cement.

(c)

New affected unit limitation

An affected unit that enters operation on or after the date of enactment of this title shall achieve, on an annual average basis, a mercury emission rate of not more than 2.48 grams of mercury per 1,000 megawatt hours, regardless of the type of coal used at the affected unit.

710.

Other hazardous air pollutants

(a)

In general

Not later than January 1, 2008, the Administrator shall issue to owners and operators of coal-fired electric generation facilities requests for information under section 114 that are of sufficient scope to generate data sufficient to support issuance of standards under section 112(d) for hazardous air pollutants other than mercury emitted by coal-fired electric generation facilities.

(b)

Deadline for submission of requested information

The Administrator shall require each recipient of a request for information described in subsection (a) to submit the requested data not later than 180 days after the date of the request.

(c)

Promulgation of emission standards

The Administrator shall—

(1)

not later than January 1, 2008, propose emission standards under section 112(d) for hazardous air pollutants other than mercury; and

(2)

not later than January 1, 2009, promulgate emission standards under section 112(d) for hazardous air pollutants other than mercury.

(d)

Prohibition on excess emissions

It shall be unlawful for an electric generation facility subject to standards for hazardous air pollutants other than mercury promulgated under subsection (c) to emit, after December 31, 2010, any such pollutant in excess of the standards.

(e)

Effect on other law

Nothing in this section or section 709 affects any requirement of subsection (e), (f)(2), or (n)(1)(A) of section 112, except that the emission limitations established by regulations promulgated under this section shall be deemed to represent the maximum achievable control technology for mercury emissions from electricity generating units under section 112(d).

711.

Emission standards for affected units

(a)

Definition of affected unit

In this subsection, the term affected unit means a unit that—

(1)

is designed and intended to provide electricity at a unit capacity factor of at least 60 percent; and

(2)

begins operation after December 31, 2011.

(b)

Initial standard

(1)

In general

Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations requiring each affected unit to meet the standard described in paragraph (2).

(2)

Standard

Beginning on December 31, 2015, an affected unit shall meet a global warming pollution emission standard that is not higher than the emission rate of a new combined cycle natural gas generating unit.

(3)

More stringent requirements

For the period beginning on January 1 of the calendar year following the effective date of the regulations promulgated pursuant to paragraph (1) and ending on December 31, 2029, the Administrator may increase the stringency of the global warming pollution emission standard described in paragraph (2) with respect to affected units as the Administrator determines to be appropriate to ensure a reduction in the emission rate of global warming pollutants of at least 90 percent from each affected unit.

(c)

Final standard

Not later than December 31, 2030, the Administrator shall require each unit that is designed and intended to provide electricity at a unit capacity factor of at least 60 percent, regardless of the date on which the unit entered operation, to meet the applicable emission standard under subsection (b).

(d)

Adjustment of requirements

If the Academy determines, pursuant to section 705(e), that a requirement of this section is or will be technologically infeasible at the time at which the requirement becomes effective, the Administrator, by regulation, may adjust or delay the effective date of the requirement as the Administrator determines to be necessary, taking into consideration the determination of the Academy.

712.

Low-carbon generation requirement

(a)

Definitions

In this section:

(1)

Base quantity of electricity

The term base quantity of electricity means the total quantity of electricity produced for sale by a covered generator during the calendar year immediately preceding a compliance year from—

(A)

coal;

(B)

petroleum coke;

(C)

lignite; or

(D)

any combination of the fuels described in subparagraphs (A) through (C).

(2)

Covered generator

The term covered generator means an electric generation facility that—

(A)

has a rated capacity of 25 megawatts or more; and

(B)

has an annual fuel input at least 50 percent of which is provided by—

(i)

coal;

(ii)

petroleum coke;

(iii)

lignite; or

(iv)

any combination of the fuels described in clauses (i) through (iii).

(3)

Low-carbon generation

The term low-carbon generation means electric energy generated from an electric generation facility at least 50 percent of the annual fuel input of which, in any year—

(A)

is provided by—

(i)

coal;

(ii)

petroleum coke;

(iii)

lignite; or

(iv)

any combination of the fuels described in clauses (i) through (iii); and

(B)

results in an emission rate into the atmosphere of not more than 250 pounds of carbon dioxide per megawatt-hour (after adjustment for any carbon dioxide emitted from the electric generation facility that is geologically sequestered in a geological repository approved by the Administrator pursuant to section 713).

(4)

Program

The term program means the low-carbon generation credit trading program established under subsection (d)(1).

(b)

Requirement

(1)

Calendar years 2015 through 2020

Of the base quantity of electricity produced for sale by a covered generator for a calendar year, the covered generator shall provide a minimum percentage of that base quantity of electricity for the calendar year from low-carbon generation, as specified in the following table:

Calendar year:Minimum annual percentage:
20150.5
20161.0
20172.0
20183.0
20194.0
20205.0
(2)

Calendar years 2021 through 2025

For each of calendar years 2021 through 2025, the Administrator may increase the minimum percentage of the base quantity of electricity from low-carbon generation described in paragraph (1) by not more than 2 percentage points from the preceding year, as the Administrator determines to be necessary to achieve the emission reduction goal described in section 705(a)(3).

(3)

Calendar years 2026 through 2030

For each of calendar years 2026 through 2030, the Administrator may increase the minimum percentage of the base quantity of electricity from low-carbon generation described in paragraph (1) by not more than 3 percentage points from the preceding year, as the Administrator determines to be necessary to achieve the emission reduction goal described in section 705(a)(3).

(c)

Means of compliance

An owner or operator of a covered generator shall comply with subsection (b) by—

(1)

generating electric energy using low-carbon generation;

(2)

purchasing electric energy generated by low-carbon generation;

(3)

purchasing low-carbon generation credits issued under the program; or

(4)

any combination of the actions described in paragraphs (1) through (3).

(d)

Low-carbon generation credit trading program

(1)

In general

Not later than January 1, 2008, the Administrator shall establish, by regulation, after notice and opportunity for comment, a low-carbon generation trading program to permit an owner or operator of a covered generator that does not generate or purchase enough electric energy from low-carbon generation to comply with subsection (b) to achieve that compliance by purchasing sufficient low-carbon generation credits.

(2)

Requirements

In carrying out the program, the Administrator shall—

(A)

issue to producers of low-carbon generation, on a quarterly basis, a single low-carbon generation credit for each kilowatt hour of low-carbon generation sold during the preceding quarter; and

(B)

ensure that a kilowatt hour, including the associated low-carbon generation credit, shall be used only once for purposes of compliance with subsection (b).

(e)

Enforcement

An owner or operator of a covered generator that fails to comply with subsection (b) shall be subject to a civil penalty in an amount equal to the product obtained by multiplying—

(1)

the number of kilowatt-hours of electric energy sold to electric consumers in violation of subsection (b); and

(2)

the greater of—

(A)

2.5 cents (as adjusted under subsection (g)); or

(B)

200 percent of the average market value of those low-carbon generation credits during the year in which the violation occurred.

(f)

Exemption

This section shall not apply, for any calendar year, to an owner or operator of a covered generator that sold less than 40,000 megawatt-hours of electric energy produced from covered generators during the preceding calendar year.

(g)

Inflation adjustment

Not later than December 31, 2008, and annually thereafter, the Administrator shall adjust the amount of the civil penalty for each kilowatt-hour calculated under subsection (e)(2) to reflect changes for the 12-month period ending on 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.

(h)

Technological infeasibility

If the Academy determines, pursuant to section 705(e), that the schedule for compliance described in subsection (b) is or will be technologically infeasible for covered generators to meet, the Administrator, by regulation, may adjust the schedule as the Administrator determines to be necessary, taking into consideration the determination of the Academy.

(i)

Termination of authority

This section and the authority provided by this section shall terminate on December 31, 2030.

713.

Geological disposal of global warming pollutants

(a)

Geological carbon dioxide disposal deployment projects

(1)

In general

The Administrator shall establish a competitive grant program to provide grants to 5 entities for the deployment of projects to geologically dispose of carbon dioxide (referred to in this subsection as geological disposal deployment projects).

(2)

Location

Each geological disposal deployment project shall be conducted in a geologically distinct location in order to demonstrate the suitability of a variety of geological structures for carbon dioxide disposal.

(3)

Components

Each geological disposal deployment project shall include an analysis of—

(A)

mechanisms for trapping the carbon dioxide to be geologically disposed;

(B)

techniques for monitoring the geologically disposed carbon dioxide;

(C)

public response to the geological disposal deployment project; and

(D)

the permanency of carbon dioxide storage in geological reservoirs.

(4)

Requirements

(A)

In general

Not later than 2 years after the date of enactment of this title, the Administrator shall establish—

(i)

appropriate conditions for environmental protection with respect to geological disposal deployment projects to protect public health and the environment, including—

(I)

site characterization and selection;

(II)

geomechanical, geochemical, and hydrogeological simulation;

(III)

risk assessment;

(IV)

mitigation and remediation protocols;

(V)

the issuance of permits for test, injection, and monitoring wells;

(VI)

specifications for the drilling, construction, and maintenance of wells;

(VII)

ownership of subsurface rights and pore space;

(VIII)

transportation pipeline specifications;

(IX)

the allowed composition of injected matter;

(X)

testing, monitoring, measurement, and verification for the entire chain of operations, beginning with the point of capture of carbon dioxide to a storage site;

(XI)

closure and decommissioning procedures;

(XII)

transportation pipeline siting; and

(XIII)

short- and long-term legal responsibility and indemnification procedures for storage sites; and

(ii)

requirements relating to applications for grants under this subsection.

(B)

Rulemaking

The establishment of requirements under subparagraph (A) shall not require a rulemaking.

(C)

Minimum requirements

At a minimum, each application for a grant under this subsection shall include—

(i)

a description of the geological disposal deployment project proposed in the application;

(ii)

an estimate of the quantity of carbon dioxide to be geologically disposed over the life of the geological disposal deployment project; and

(iii)

a plan to collect and disseminate data relating to each geological disposal deployment project to be funded by the grant.

(5)

Partners

An applicant for a grant under this subsection may carry out a geological disposal deployment project under a pilot program in partnership with 1 or more public or private entities.

(6)

Selection criteria

In evaluating applications under this subsection, the Administrator shall—

(A)

consider the previous experience of each applicant with similar projects; and

(B)

give priority consideration to applications for geological disposal deployment projects that—

(i)

offer the greatest geological diversity, as compared to other geological disposal deployment projects that received grants under this subsection;

(ii)

are located in closest proximity to a source of carbon dioxide;

(iii)

make use of the most affordable source of carbon dioxide;

(iv)

are expected to geologically dispose of—

(I)

the largest quantity of carbon dioxide; and

(II)

a minimum quantity of 1,000,000 tons of carbon dioxide for each project carried out as part of the demonstration project;

(v)

are combined with demonstrations of advanced coal electricity generation technologies;

(vi)

demonstrate the greatest commitment on the part of the applicant to ensure funding for the proposed demonstration project and the greatest likelihood that the demonstration project will be maintained or expanded after Federal assistance under this subsection is completed; and

(vii)

minimize any adverse environmental effects from the project.

(7)

Period of grants

(A)

In general

A geological disposal deployment project funded by a grant under this subsection shall begin construction not later than 3 years after the date on which the grant is provided.

(B)

Term

The Administrator shall not provide grant funds to any applicant under this subsection for a period of more than 5 years.

(8)

Transfer of information and knowledge

The Administrator shall establish mechanisms to ensure that the information and knowledge gained by participants in the program are published and disseminated, including to other applicants that submitted applications for a grant under this subsection.

(9)

Schedule

(A)

Publication

Not later than 180 days after the date of enactment of this title, the Administrator shall publish in the Federal Register, and elsewhere as appropriate, a request for applications to carry out geological disposal deployment projects.

(B)

Date for applications

An application for a grant under this subsection shall be submitted not later than 180 days after the date of publication of the request under subparagraph (A).

(C)

Selection

After the date by which applications for grants are required to be submitted under subparagraph (B), the Administrator, in a timely manner, shall select, after peer review and based on the criteria under paragraph (6), those geological disposal deployment projects to be provided a grant under this subsection.

(b)

Interim standards

Not later than 3 years after the date of enactment of this title, the Administrator, in consultation with the Secretary of Energy, shall, by regulation, establish interim geological carbon dioxide disposal standards that address—

(1)

site selection;

(2)

permitting processes;

(3)

monitoring requirements;

(4)

public participation; and

(5)

such other issues as the Administrator and the Secretary of Energy determine to be appropriate.

(c)

Final standards

Not later than 6 years after the date of enactment of this title, taking into consideration the results of geological disposal deployment projects carried out under subsection (a), the Administrator, by regulation, shall establish final geological carbon dioxide disposal standards.

(d)

Considerations

In developing standards under subsections (b) and (c), the Administrator shall consider the experience in the United States in regulating—

(1)

underground injection of waste;

(2)

enhanced oil recovery;

(3)

short-term storage of natural gas; and

(4)

long-term waste storage.

(e)

Termination of authority

This section and the authority provided by this section shall terminate on December 31, 2030.

714.

Energy efficiency performance standard

(a)

Definitions

In this section:

(1)

Electricity savings

(A)

In general

The term electricity savings means reductions in end-use electricity consumption relative to consumption by the same customer or at the same new or existing facility in a given year, as defined in regulations promulgated by the Administrator under subsection (e).

(B)

Inclusions

The term electricity savings includes savings achieved as a result of—

(i)

installation of energy-saving technologies and devices; and

(ii)

the use of combined heat and power systems, fuel cells, or any other technology identified by the Administrator that recaptures or generates energy solely for onsite customer use.

(C)

Exclusion

The term electricity savings does not include savings from measures that would likely be adopted in the absence of energy-efficiency programs, as determined by the Administrator.

(2)

Retail electricity sales

The term retail electricity sales means the total quantity of electric energy sold by a retail electricity supplier to retail customers during the most recent calendar year for which that information is available.

(3)

Retail electricity supplier

The term retail electricity supplier means a distribution or integrated utility, or an independent company or entity, that sells electric energy to consumers.

(b)

Energy efficiency performance standard

Each retail electricity supplier shall implement programs and measures to achieve improvements in energy efficiency and peak load reduction, as verified by the Administrator.

(c)

Targets

For calendar year 2008 and each calendar year thereafter, the Administrator shall ensure that retail electric suppliers annually achieve electricity savings and reduce peak power demand and electricity use by retail customers by a percentage that is not less than the applicable target percentage specified in the following table:

Calendar YearReduction in peak demandReduction in electricity use
2008.25 percent.25 percent
2009.75 percent.75 percent
20101.75 percent1.5 percent
20112.75 percent2.25 percent
20123.75 percent3.0 percent
20134.75 percent3.75 percent
20145.75 percent4.5 percent
20156.75 percent5.25 percent
20167.75 percent6.0 percent
20178.75 percent6.75 percent
20189.75 percent7.5 percent
201910.75 percent8.25 percent
2020 and each calendar year thereafter11.75 percent9.0 percent
(d)

Beginning date

For the purpose of meeting the targets established under subsection (c), electricity savings shall be calculated based on the sum of—

(1)

electricity savings realized as a result of actions taken by the retail electric supplier during the specified calendar year; and

(2)

cumulative electricity savings realized as a result of electricity savings achieved in all preceding calendar years (beginning with calendar year 2006).

(e)

Implementing regulations

(1)

In general

Not later than 1 year after the date of enactment of this title, the Administrator shall promulgate regulations to implement the targets established under subsection (c).

(2)

Requirements

The regulations shall establish—

(A)

a national credit system permitting credits to be awarded, bought, sold, or traded by and among retail electricity suppliers;

(B)

a fee equivalent to not less than 4 cents per kilowatt hour for retail energy suppliers that do not meet the targets established under subsection (c); and

(C)

standards for monitoring and verification of electricity use and demand savings reported by the retail electricity suppliers.

(3)

Consideration of transmission and distribution efficiency

In developing regulations under this subsection, the Administrator shall consider whether electricity savings, in whole or part, achieved by retail electricity suppliers by improving the efficiency of electric distribution and use should be eligible for credits established under this section.

(f)

Compliance with State law

Nothing in this section supersedes or otherwise affects any State or local law requiring, or otherwise relating to, reductions in total annual electricity consumption or peak power consumption by electric consumers to the extent that the State or local law requires more stringent reductions than the reductions required under this section.

(g)

Voluntary participation

The Administrator may—

(1)

pursuant to the regulations promulgated under subsection (e)(1), issue a credit to any entity that is not a retail electric supplier if the entity implements electricity savings; and

(2)

in a case in which an entity described in paragraph (1) is a nonprofit or educational organization, provide to the entity 1 or more grants in lieu of a credit.

715.

Renewable portfolio standard

(a)

Renewable energy

(1)

In general

The Administrator, in consultation with the Secretary of Energy, shall promulgate regulations defining the types and sources of renewable energy generation that may be carried out in accordance with this section.

(2)

Inclusions

In promulgating regulations under paragraph (1), the Administrator shall include of all types of renewable energy (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))) other than energy generated from—

(A)

municipal solid waste;

(B)

wood contaminated with plastics or metals; or

(C)

tires.

(b)

Renewable energy requirement

Of the base quantity of electricity sold by each retail electric supplier to electric consumers during a calendar year, the quantity generated by renewable energy sources shall be not less than the following percentages:

Calendar year:Minimum annual percentage:
2008 through 20095
2010 through 201410
2015 through 201915
2020 and subsequent years20
(c)

Renewable energy credit program

Not later than 1 year after the date of enactment of this title, the Administrator shall establish—

(1)

a program to issue, establish the value of, monitor the sale or exchange of, and track renewable energy credits; and

(2)

penalties for any retail electric supplier that does not comply with this section.

(d)

Prohibition on double counting

A renewable energy credit issued under subsection (c)—

(1)

may be counted toward meeting the requirements of subsection (b) only once; and

(2)

shall vest with the owner of the system or facility that generates the renewable energy that is covered by the renewable energy credit, unless the owner explicitly transfers the renewable energy credit.

(e)

Sale under PURPA contract

If the Administrator, after consultation with the Secretary of Energy, determines that a renewable energy generator is selling electricity to comply with this section to a retail electric supplier under a contract subject to section 210 of the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 824a–3), the retail electric supplier shall be treated as the generator of the electric energy for the purposes of this title for the duration of the contract.

(f)

State programs

Nothing in this section precludes any State from requiring additional renewable energy generation under any State renewable energy program.

(g)

Voluntary participation

The Administrator may issue a renewable energy credit pursuant to subsection (c) to any entity that is not subject to this section only if the entity applying for the renewable energy credit meets the terms and conditions of this section to the same extent as retail electric suppliers subject to this section.

716.

Standards to account for biological sequestration of carbon

(a)

In general

Not later than 2 years after the date of enactment of title, the Secretary of Agriculture, with the concurrence of the Administrator, shall establish standards for accrediting certified reductions in the emission of carbon dioxide through above-ground and below-ground biological sequestration activities.

(b)

Requirements

The standards shall include—

(1)

a national biological carbon storage baseline or inventory; and

(2)

measurement, monitoring, and verification guidelines based on—

(A)

measurement of increases in carbon storage in excess of the carbon storage that would have occurred in the absence of a new management practice designed to achieve biological sequestration of carbon;

(B)

comprehensive carbon accounting that—

(i)

reflects sustained net increases in carbon reservoirs; and

(ii)

takes into account any carbon emissions resulting from disturbance of carbon reservoirs in existence as of the date of commencement of any new management practice designed to achieve biological sequestration of carbon;

(C)

adjustments to account for—

(i)

emissions of carbon that may result at other locations as a result of the impact of the new biological sequestration management practice on timber supplies; or

(ii)

potential displacement of carbon emissions to other land owned by the entity that carries out the new biological sequestration management practice; and

(D)

adjustments to reflect the expected carbon storage over various time periods, taking into account the likely duration of the storage of carbon in a biological reservoir.

(c)

Updating of standards

Not later than 3 years after the date of establishment of the standards under subsection (a), and every 3 years thereafter, the Secretary of Agriculture shall update the standards to take into consideration the most recent scientific information.

717.

Effect of failure to promulgate regulations

If the Administrator fails to promulgate regulations to implement and enforce the limitations specified in section 705—

(1)
(A)

each electric generation facility shall achieve, not later than January 1, 2010, an annual quantity of emissions that is less than or equal to—

(i)

in the case of nitrogen oxides, 15 percent of the annual emissions by a similar electric generation facility that has no controls for emissions of nitrogen oxides; and

(ii)

in the case of global warming pollutants, 75 percent of the annual emissions by a similar electric generation facility that has no controls for emissions of global warming pollutants; and

(B)

each electric generation facility that does not use natural gas as the primary combustion fuel shall achieve, not later than January 1, 2010, an annual quantity of emissions that is less than or equal to—

(i)

in the case of sulfur dioxide, 5 percent of the annual emissions by a similar electric generation facility that has no controls for emissions of sulfur dioxide; and

(ii)

in the case of mercury, 10 percent of the annual emissions by a similar electric generation facility that has no controls included specifically for the purpose of controlling emissions of mercury; and

(2)

the applicable permit under this Act for each electric generation facility shall be deemed to incorporate a requirement for achievement of the reduced levels of emissions specified in paragraph (1).

718.

Prohibitions

It shall be unlawful—

(1)

for the owner or operator of any electric generation facility—

(A)

to operate the electric generation facility in noncompliance with the requirements of this title (including any regulations implementing this title);

(B)

to fail to submit by the required date any emission allowances, or pay any penalty, for which the owner or operator is liable under section 706;

(C)

to fail to provide and comply with any plan to offset excess emissions required under section 706(f); or

(D)

to emit mercury in excess of the emission limitations established under section 709; or

(2)

for any person to hold, use, or transfer any emission allowance allocated under this title except in accordance with regulations promulgated by the Administrator.

719.

Modernization of electric generation facilities

(a)

In general

Beginning on the later of January 1, 2015, or the date that is 40 years after the date on which the electric generation facility commences operation, each electric generation facility shall be subject to emission limitations reflecting the application of best available control technology on a new major source of a similar size and type (as determined by the Administrator) as determined in accordance with the procedures specified in part C of title I.

(b)

Additional requirements

The requirements of this section shall be in addition to the other requirements of this title.

720.

Paramount interest waiver

(a)

In general

If the President determines that a national security emergency exists and, in light of information that was not available as of the date of enactment of this title, that it is in the paramount interest of the United States to modify any requirement under this title to minimize the effects of the emergency, the President, after opportunity for notice and public comment, may temporarily adjust, suspend, or waive any regulation promulgated pursuant to this title to achieve that minimization.

(b)

Consultation

In making an emergency determination under subsection (a), the President, to the maximum extent practicable, shall consult with and take into consideration any advice received from—

(1)

the Academy;

(2)

the Secretary of Energy; or

(3)

the Administrator.

(c)

Judicial review

An emergency determination under subsection (a) shall be subject to judicial review under section 307.

721.

Relationship to other law

(a)

In general

Except as expressly provided in this title, nothing in this title—

(1)

limits or otherwise affects the application of any other provision of this Act; or

(2)

precludes a State from adopting and enforcing any requirement for the control of emissions of air pollutants that is more stringent than the requirements imposed under this title.

(b)

Regional seasonal emission controls

Nothing in this title affects any regional seasonal emission control for nitrogen oxides established by the Administrator or a State under title I.

.

(b)

Conforming amendment

Section 412(a) of the Clean Air Act (42 U.S.C. 7651k(a)) is amended in the first sentence by striking opacity and inserting mercury, opacity,.

3.

Savings clause

Section 193 of the Clean Air Act (42 U.S.C. 7515) is amended by striking date of the enactment of the Clean Air Act Amendments of 1990 each place it appears and inserting date of enactment of the Clean Power Act of 2007.

4.

Acid precipitation research program

Section 103(j) of the Clean Air Act (42 U.S.C. 7403(j)) is amended—

(1)

in paragraph (3)—

(A)

in subparagraph (F)(i), by striking effects; and and inserting

effects, including an assessment of—

(I)

acid-neutralizing capacity; and

(II)

changes in the number of water bodies in the sensitive ecosystems referred to in subparagraph (G)(ii) with an acid-neutralizing capacity greater than zero; and

; and

(B)

by adding at the end the following:

(G)

Sensitive ecosystems

(i)

In general

Beginning in 2008, and every 4 years thereafter, the report under subparagraph (E) shall include—

(I)

an identification of environmental objectives necessary to be achieved (and related indicators to be used in measuring achievement of the objectives) to adequately protect and restore sensitive ecosystems; and

(II)

an assessment of the status and trends of the environmental objectives and indicators identified in preceding reports under this paragraph.

(ii)

Sensitive ecosystems to be addressed

Sensitive ecosystems to be addressed under clause (i) include—

(I)

the Adirondack Mountains, mid-Appalachian Mountains, Rocky Mountains, and southern Blue Ridge Mountains;

(II)

the Great Lakes, Lake Champlain, Long Island Sound, and the Chesapeake Bay; and

(III)

other sensitive ecosystems, as determined by the Administrator.

(H)

Acid deposition standards

Beginning in 2008, and every 4 years thereafter, the report under subparagraph (E) shall include a revision of the report under section 404 of Public Law 101–549 (42 U.S.C. 7651 note) that includes a reassessment of the health and chemistry of the lakes and streams that were subjects of the original report under that section.

; and

(2)

by adding at the end the following:

(4)

Protection of sensitive ecosystems

(A)

Determination

Not later than December 31, 2014, the Administrator, taking into consideration the findings and recommendations of the report revisions under paragraph (3)(H), shall determine whether emission reductions under titles IV and VII are sufficient to—

(i)

achieve the necessary reductions identified under paragraph (3)(F); and

(ii)

ensure achievement of the environmental objectives identified under paragraph (3)(G).

(B)

Regulations

(i)

In general

Not later than 2 years after the Administrator makes a determination under subparagraph (A) that emission reductions are not sufficient, the Administrator shall promulgate regulations to protect the sensitive ecosystems referred to in paragraph (3)(G)(ii).

(ii)

Contents

Regulations under clause (i) shall include modifications to—

(I)

provisions relating to nitrogen oxide and sulfur dioxide emission reductions;

(II)

provisions relating to allocations of nitrogen oxide and sulfur dioxide allowances; and

(III)

such other provisions as the Administrator determines to be necessary.

.

5.

Authorization of appropriations for deposition monitoring

(a)

Operational support

In addition to amounts made available under any other law, there are authorized to be appropriated for each of fiscal years 2008 through 2017—

(1)

for operational support of the National Atmospheric Deposition Program National Trends Network—

(A)

$2,000,000 to the United States Geological Survey;

(B)

$600,000 to the Environmental Protection Agency;

(C)

$600,000 to the National Park Service; and

(D)

$400,000 to the Forest Service;

(2)

for operational support of the National Atmospheric Deposition Program Mercury Deposition Network—

(A)

$400,000 to the Environmental Protection Agency;

(B)

$400,000 to the United States Geological Survey;

(C)

$100,000 to the National Oceanic and Atmospheric Administration; and

(D)

$100,000 to the National Park Service;

(3)

for the National Atmospheric Deposition Program Atmospheric Integrated Research Monitoring Network $1,500,000 to the National Oceanic and Atmospheric Administration;

(4)

for the Clean Air Status and Trends Network $5,000,000 to the Environmental Protection Agency; and

(5)

for the Temporally Integrated Monitoring of Ecosystems and Long-Term Monitoring Program $2,500,000 to the Environmental Protection Agency.

(b)

Modernization

In addition to amounts made available under any other law, there are authorized to be appropriated—

(1)

for equipment and site modernization of the National Atmospheric Deposition Program National Trends Network $6,000,000 to the Environmental Protection Agency;

(2)

for equipment and site modernization and network expansion of the National Atmospheric Deposition Program Mercury Deposition Network $2,000,000 to the Environmental Protection Agency;

(3)

for equipment and site modernization and network expansion of the National Atmospheric Deposition Program Atmospheric Integrated Research Monitoring Network $1,000,000 to the National Oceanic and Atmospheric Administration; and

(4)

for equipment and site modernization and network expansion of the Clean Air Status and Trends Network $4,600,000 to the Environmental Protection Agency.

(c)

Availability of amounts

Each of the amounts appropriated under subsection (b) shall remain available until expended.

6.

Technical amendments

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

(1)

is amended by redesignating sections 401 through 403 as sections 801 through 803, respectively; and

(2)

is redesignated as title VIII and moved to appear at the end of that Act.