Air Quality: Multi-Pollutant Legislation in the 110th Congress

Air Quality: Multi-Pollutant Legislation
th
in the 110 Congress
Updated February 11, 2008
Larry Parker
Specialist in Energy Policy
Resources, Science, and Industry Division
John Blodgett
Specialist in Environmental Policy
Resources, Science, and Industry Division



Air Quality: Multi-Pollutant Legislation
in the 110th Congress
Summary
With the prospect of new layers of complexity being added to air pollution
controls, and with electricity restructuring putting a premium on economic efficiency,
interest is being expressed in finding mechanisms to achieve health and
environmental goals in simpler, more cost-effective ways. The electric utility
industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen
oxides (NOx), and mercury (Hg), as well as unregulated greenhouse gases,
particularly carbon dioxide (CO2). At issue is whether a new approach to
environmental protection could achieve the nation’s air quality goals more cost-
effectively than the current system.
One approach being proposed is a “multi-pollutant” strategy — a framework
based on a consistent set of emissions caps, implemented through emissions trading.
Just how the proposed approach would fit with the current (and proposed) diverse
regulatory regimes remains to be worked out; they might be replaced to the greatest
extent feasible, or they might be overlaid by the framework of emissions caps.
In February 2002, the Bush Administration announced two air quality initiatives.
The first, “Clear Skies,” would amend the Clean Air Act to place emission caps on
electric utility emissions of SO2, NOx, and Hg. Implemented through a tradeable
allowance program, the emissions caps would generally be imposed in two phases:
2008 and 2018. “Clear Skies” was re-introduced in the 109th Congress as S. 131. The
second initiative begins a voluntary greenhouse gas reduction program. This plan,
rather than capping CO2 emissions, focuses on improving the carbon efficiency of the
economy, reducing 2002 emissions of 183 metric tons per million dollars of GDP to

151 metric tons per million dollars of GDP in 2012.


In the 110th Congress, five bills have been introduced that would impose multi-
pollutant controls on utilities. They are all four-pollutant proposals that include
carbon dioxide. S. 1168 and S. 1177 are revised versions of S. 2724, introduced in
the 109th Congress. S. 1201 and S. 1554 are expanded and revised versions of S.
150, introduced in the 109th Congress, while H.R. 3989 is a new proposal. All of
these bills involve some form of emission caps, beginning in the 2009-2012 time
frame, with all but S. 1554 including a second phase in 2013-2015 (CO2 only for
H.R. 3989). They would employ a tradeable credit program to implement the SO2,
NOx, and CO2 caps; all but H.R. 3989 permit plant-wide averaging in complying
with the Hg requirements. The provisions concerning SO2, NOx, and Hg in the 110th
Congress bills are generally more stringent than the comparable provisions of S. 131
of the 109th Congress. It is difficult to compare the CO2 caps contained in these bills
with the Administration’s proposal concerning CO2 — both because the
Administration’s proposal is voluntary rather than mandatory and because it is
broader (covering all greenhouse gas emissions rather than just utility CO2
emissions).



Contents
In troduction ......................................................1
The Bush Administration’s Proposals..................................2
Proposed Legislation and Legislative Action in the 110th Congress...........3
Allowance Allocations for SO2, NOx, and CO2.......................4
Hg Controls..................................................4
CO2 Reduction Requirements....................................4
Related Regulatory Provisions....................................5
Appendix. Comparison of Multi-Pollutant Control Proposals...............7
List of Tables
Table 1. Emissions from U.S. Fossil-Fuel Electric Generating Plants.........1



Air Quality: Multi-Pollutant Legislation
th
in the 110 Congress
Introduction
Electric utility generating facilities are a major source of air pollution. The
combustion of fossil fuels (petroleum, natural gas, and coal), which accounts for
about two-thirds of U.S. electricity generation, results in the emission of a stream of
gases. These gases include several pollutants that directly pose risks to human health1
and welfare, including particulate matter (PM), sulfur dioxide (SO2), nitrogen oxides
(NOx), and mercury (Hg). Particulate matter, SO2, and NOx are currently regulated
under the Clean Air Act (CAA), and the Environmental Protection Agency (EPA) has
promulgated rules to regulate mercury beginning in 2010. Other gases may pose2
indirect risks, notably carbon dioxide (CO2), which contributes to global warming.
Table 1 provides estimates of SO2, NOx, and CO2 emissions from electric generating
facilities. Annual emissions of Hg from utility facilities are more uncertain; current
estimates indicate about 48 tons. Utilities are subject to an array of environmental
regulations, which affect in different ways both the cost of operating existing
generating facilities and the cost of constructing new ones.
Table 1. Emissions from U.S. Fossil-Fuel Electric
Generating Plants
(thousands of metric tons)
Emissions 2000 2001 2002 2003 2004 2005
SO2 11,297 11,174 10,881 10,646 10,309 10,340
NOx 5,380 5,290 5,194 4,532 4,143 3,961
CO2 2,429,394 2,389,745 2,395,048 2,415,680 2,456,934 2,513,609
Source: Energy Information Administration.
Note: Includes emissions from combined-heat-and-power plants.
The evolution of air pollution controls over time and as a result of growing
scientific understanding of health and environmental impacts has led to a


1 Particulate matter is regulated depending on the particle size; current regulations address
particles less than 10 microns in diameter (PM10); the EPA has promulgated regulations for
particles less than 2.5 microns in diameter (PM2.5) that are in the process of being
implemented. SO2 and NOx emissions would be affected by regulations of PM2.5.
2 In addition, steam-electric utilities produce minor amounts of volatile organic compounds
(VOCs), carbon monoxide (CO), and lead — on the order of 2% or less of all sources.

multilayered and interlocking patchwork of controls. Moreover, additional controls
are in the process of development, particularly with respect to NOx as a precursor to
ozone, to both NOx and SO2 as contributors to PM2.5, and to Hg as a toxic air
pollutant. Also, under the United Nations Framework Convention on Climate
Change (UNFCCC), the United States agreed to voluntary limits on CO2 emissions.
The current Bush Administration has rejected the Kyoto Protocol, which would
impose mandatory limits, in favor of a voluntary reduction program. In contrast to
the Administration’s position, in June 2005, the Senate passed a Sense of the Senate
calling for mandatory controls on greenhouse gases that would be designed not to
impose significant harm on the economy.3
For many years, the complexity of the air quality control regime has caused
some observers to call for a simplified approach. Now, with the potential both for
additional control programs on SO2 and NOx and for new controls directed at Hg and
CO2 intersecting with the technological and policy changes affecting the electric
utility industry, such calls for simplification have become more numerous and
insistent. One focus of this effort is the “multi-pollutant” or “four-pollutant”
approach. This approach involves a mix of regulatory and economic mechanisms
that would apply to utility emissions of up to four pollutants in various proposals —
SO2, NOx, Hg, and CO2. The objective would be to balance the environmental goal
of effective controls across the pollutants covered with the industry goal of a stable
regulatory regime for a period of years.
The Bush Administration’s Proposals
In February 2002, the Bush Administration announced two air quality proposals4
to address the control of emissions of SO2, NOx, Hg, and CO2. The first proposal,
called “Clear Skies,” would amend the Clean Air Act to place emission caps on
electric utility emissions of SO2, NOx, and Hg. Implemented through a tradeable
allowance program, the emissions caps would be imposed in two phases: 2010 (2008
in the case of NOx) and 2018. As part of a complete rewrite of Title IV of the Clean
Air Act, the Administration’s proposal was introduced in the 108th Congress as H.R.
999 and S. 485. Revised versions of Clear Skies legislation were introduced in the

109th Congress as H.R. 227 and S. 131.5 The proposal has not been reintroduced inth


the 110 Congress.


3 S.Amdt. 866 to H.R. 6, The Energy Policy Act of 2005 (June 22, 2005).
4 Papers outlining the Administration’s proposals are available from the White House
website: [http://www.whitehouse.gov/news/releases/2002/02/clearskies.html] for the three
pollutant proposal, and [http://www.whitehouse.gov/news/releases/2002/02/climatechange.
html] for the climate change initiative.
5 For a further discussion of the Administration’s Clear Skies proposal, see CRS Report
RL32782, Clear Skies and the Clean Air Act: What’s the Difference? by Larry Parker and
James E. McCarthy, and CRS Report RL33165, Cost and Benefits of Clear Skies: EPA’s
Analysis of Multi-Pollutant Clean Air Bills, by James E. McCarthy and Larry B. Parker.
Although H.R. 227 adopted the SO2 and NOx emission caps of the Administration’s Clear
Skies proposal, it did not include many other provisions, including regulatory changes.

The second Administration proposal initiates a new voluntary greenhouse gas
reduction program, similar to ones introduced by the earlier George H. W. Bush and
Clinton Administrations.6 Developed in response to the U.S. ratification of the 1992
UNFCCC, these previous plans projected U.S. compliance, or near compliance, with
the UNFCCC goal of stabilizing greenhouse gas emissions at their 1990 levels by the
year 2000 through voluntary measures. The Bush Administration proposal does not
make that claim, projecting only a 100 million metric ton reduction in emissions from
what would occur otherwise in the year 2012. Total emissions would continue to
rise. Instead, the plan focuses on improving the carbon efficiency of the economy,
reducing 2002 emissions of 183 metric tons per million dollars of GDP to 151 metric
tons per million dollars of GDP in 2012. It proposes several voluntary initiatives,
along with increased spending and tax incentives, to achieve this goal. The
Administration notes that the new initiatives would achieve about one-quarter of the
objective, while three-quarters of the projected reduction is seen as occurring through
existing efforts.
Proposed Legislation and Legislative Action
in the 110th Congress
In the 110th Congress, five bills have been introduced that would impose multi-
pollutant controls on utilities. They are all four-pollutant proposals that include
carbon dioxide. S. 1168, introduced by Senator Alexander, and S. 1177, introduced
by Senator Carper, are revised versions of S. 2724, introduced in the 109th Congress.
S. 1201, introduced by Senator Sanders, and S. 1554, introduced by Senator Collins,
are similar but revised versions of S. 150, introduced in the 109th Congress.7 In
contrast, H.R. 3989, introduced by Representative McHugh, represents a new
proposal. All of these bills involve some form of emission caps, beginning in 2009-
2012 time frame. S. 1168, S. 1177, and S. 1201 include a second phase beginning in
2013-2015; H.R. 3989 includes a multi-phase program for CO2 only. They would
employ a tradeable credit program to implement the SO2, NOx, and CO2 caps while
all but H.R. 3989 permit plant-wide averaging in complying with the Hg
requirements. The provisions concerning SO2, NOx, and Hg in the five bills are
generally more stringent than the comparable provisions of S. 131 of the 109th
Congress. It is difficult to compare the CO2 caps contained in these bills with the
Administration’s proposal concerning CO2 — both because the Administration’s
proposal is voluntary rather than mandatory and because it is broader (covering all
greenhouse gas emissions rather than just utility CO2 emissions).
The five bills are summarized in the Appendix. Each of these bills generally
builds on the SO2 allowance trading scheme contained in Title IV of the 1990 Clean


6 For a discussion of those previous plans, see CRS Report 94-404, Climate Change Action
Plans, by Larry Parker and John Blodgett (out of print, available from the authors).
7 Besides its multi-pollutant control provisions for electric utilities, S. 1544 contains
separate titles on transportation fuel efficiency, renewable fuels, elimination of certain tax
provisions for the oil industry, and research on abrupt climate change.

Air Act Amendments (CAAA).8 Under this program, utilities are given a specific
allocation of permitted emissions (allowances) and may choose to use those
allowances at their own facilities, or, if they do not use their full quota, to bank them
for future use or to sell them to other utilities needing additional allowances.
Allowance Allocations for SO2, NOx, and CO2
All five bills introduced in the 110th Congress provide for a tradeable allowance
scheme to implement their emission caps on SO2, NOx, and CO2. However,
allowance allocation schemes in the bills differ, with S. 1201 and S. 1554 containing
detailed provisions for allocating SO2, NOx, and CO2 allowances to various
economic sectors and interests. In most cases, these interests (or their trustees in the
case of households and dislocated workers and communities) would auction off (or
otherwise sell) their allowances to the affected utilities and use the collected funds
for their own purposes. In addition, S. 1201 requires the increasing use of auctions,
mandating 100% of the annual allowance allocation be auctioned within 15 years of
enactment.
In contrast, S. 1168 bases its allowance formulas on fuel usage adjusted by
factors specified in the bill, along with a requirement that 25% of the allowances be
auctioned.
S. 1177 specifies CO2 and NOx limitations based on electricity output, and SO2
limitations based on the current Title IV program. The bill sets a schedule for
increasing the percentage of the annual allowance allocation that is to be auctioned
with 100% required in 2036 and thereafter.
Finally, H.R. 3989 auctions 100% of its CO2 allowances while providing
discretion to EPA to allocate SO2 and NOx allowances.
Hg Controls
On mercury, all five bills focus on achieving a 90% reduction by 2011 (S. 1554
and H.R. 3989), 2013 (S. 1201) or 2015 (S. 1168 and S. 1177). In contrast, the
emissions goal of S. 131 of the 109th Congress would have allowed about three times
more emissions and three to five more years for compliance. In addition, all but H.R.
3989 restrict Hg credit trading to plant-wide averaging of emissions, in contrast with
the cap-and-trade program of S. 131. H.R. 3989 is even more stringent, imposing the
emissions rate limitation on a unit-by-unit basis.
CO2 Reduction Requirements
The bills currently introduced in the 110th Congress specify CO2 reductions. In
contrast, the Administration’s CO2 proposal relies on various voluntary programs and
incentives to encourage reductions in greenhouse gases from diverse sources,
including CO2 emissions from electric generation. These voluntary reductions should
not be taken as a given, as neither the George H. W. Bush Administration’s nor the


8 P.L. 101-549.

Clinton Administration’s voluntary programs achieved their stated goals. Thus, in
one sense, comparing a mandatory reduction program such as that proposed by S.
1168, S. 1177, S. 1201, and S. 1554 with the Administration’s voluntary program is
comparing apples to oranges. The first is legally binding, the second has been
criticized as merely an exhortation.
The CO2 reduction requirements of S. 1168, S. 1201, and S. 1554 are similar,
except that S. 1201 and S. 1554 requires affected sources also offset CO2 emissions
from small electric generating units. In contrast, S. 1177 imposes a cap that starts out
slightly higher than the other two bills and declines on a slower schedule. Finally,
H.R. 3989 has the most detailed reduction scheme with substantial reductions from
coal-fired facilities scheduled through 2050.
All but H.R. 3989 have provisions to create offsets and facilitate sequestration
efforts. Among its titles, S. 1168 has extensive provisions providing for greenhouse
gas offsets from landfill methane (CH4), sulfur hexafluoride (SF6) projects,
afforestation or reforestation, energy efficiency, agricultural practices (manure
management), and biomass. The provisions in S. 1177 include allowance allocations
for incremental nuclear capacity, clean coal technology, and renewable energy, along
with programs to encourage sequestration. Likewise, S. 1554 includes allowance
allocations to encourage renewable energy, energy efficiency, and sequestration.
Finally, S. 1201 requires the EPA to develop standards for providing allowances for
geologic and biological sequestration.
Related Regulatory Provisions
In addition to emissions caps, S. 131 of the 109th Congress would have
substantially modified or eliminated several provisions in the Clean Air Act with
respect to electric generating facilities. The bill would have eliminated New Source
Performance Standards (NSPS) (Section 111) and replaced them with statutory
standards for SO2, NOx, particulate matter, and Hg for new sources. Modified
sources could have also opted to comply with these new statutory standards and be
exempted from the applicable Best Available Control Technology (BACT)
determinations under Prevention of Significant Deterioration (PSD) provisions
(CAA, Part C) or Lowest Achievable Emissions Rate (LAER) determinations under
non-attainment provisions (CAA, Part D). Compliance with these provisions would
have exempted such facilities from New Source Review (NSR), PSD-BACT
requirements, visibility Best Available Retrofit Technology (BART) requirements,
Maximum Achievable Control Technology (MACT) requirements for Hg, and non-
attainment LAER and offset requirements. The exemption would not have applied
to PSD-BACT requirements if facilities were within 50 km of a PSD Class 1 area.
Existing sources could have also received these exemptions if they agreed to meet a
particulate matter standard specified in the bill along with good combustion practices
to minimize carbon monoxide emissions within three years of enactment. In
addition, S. 131 would have provided these exemptions for industrial sources that
choose to opt into the Clear Skies program. S. 131 also would have included an
exemption for steam electric generating facilities from Hg regulation under Section
112 of the CAA (including the residual risk provisions), and relief from enforcement
of any Section 126 petition (with respect to reducing interstate transportation of
pollution) before December 31, 2014.



The five bills in the 110th Congress generally omit the regulatory changes of S.
131, while introducing new provisions. All five bills would revise the current New
Source Review (NSR) program to require affected electric generating units 40 years
or older (30 years old in the case of H.R. 3989) to meet more stringent SO2 and NOx
performance standard by either 2015 (S. 1201), 2016 (S. 1554), 2020 (S. 1168 and
S. 1177), or five years after enactment (H.R. 3989). All except S. 1554 and H.R.
3989 contain provisions establishing a new performance standard for CO2. S. 1168
and S. 1177 would also eliminate the annual NOx and SO2 caps contained in the
recently promulgated Clean Air Interstate Rule (CAIR).
In addition to the above, S. 1201 and S. 1554 would create several new
regulatory programs and standards, including an Efficiency Performance Standard,
and a Renewable Portfolio Standard. These programs would be implemented
through a credit trading program.



CRS-7
Appendix. Comparison of Multi-Pollutant Control Proposals
rovisionsS. 131 (Inhofe)(109th Congress)S. 1168(Alexander)S. 1177(Carper)S. 1201(Sanders)S. 1554(Collins)H.R. 3989(McHugh)
issions1.473603 million tons1.45 million tons in the East1.39 million tons in the1.51 million tons in1.51 million tons in 2012,Estimated at 1.51 million
in the East in 2008,in 2009, declining to 1.3East in 2012, declining to2010, declining to 0.9reduced annually bytons in 2010.
declining to 1.07603million tons in 2015. 0.321.3 million tons in 2015. million tons in 2013.emission emitted by small
million tons in 2018.million ton in the West0.40 million tons in theAdditional reductionselectric generatingAdditional reductions
0.714794 in the Westbeginning in 2015.West in 2012, declining tomay be required for O3facilities. Additionalmay be required if
beginning in 2008. 0.32 million tons in 2015.NAAQS compliance.reductions may be requirednecessary to protect
if necessary to protectpublic health or welfare.
iki/CRS-RL34018public health or welfare or
g/wthe environment.
s.orissions cap4.5 million tons in3.5 million tons in the East3.5 million tons in 2012,1.9755 million tons in1.975 million tons in theEstimated at 2.225
leakO2 2010, declining to 3.0in 2010, declining to 2.0declining to 2.0 millionthe East in 2010,East and 0.275 million tonsmillion tons in 2010.
://wikimillion tons in 2018.million tons in the 48contiguous states in 2015.tons in 2015.declining to 1.1414million tons in 2013.in the West in 2012,reduced annually byAdditional reductions
http0.2745 million tons inemission emitted by smallmay be required if
the West in 2010,electric generatingnecessary to protect
declining to 0.1586facilities. Additionalpublic health or welfare.
million tons in 2013.reductions may be required
if necessary to protect
public health or welfare or
the environment.
ission capNot covered.2.3 billion metric tonsEstimated at 2.47 billion2.3 billion metric2.05 billion metric tonnes inEstimated at 1.94 billion
O2 (tonnes) in 2011, decliningmetric tonnes in 2012,tonnes in 2011,2022, reduced annually bymetric tonnes in 2015,
to 2.1 billion tonnes indeclining to 2.39 billiondeclining to 2.1 billionemission emitted by smalldeclining to 1.46 billion
2015, 1.8 billion tonnes intonnes in 2015, decliningtonnes in 2015,electric generatingtonnes in 2020, declining
2020, and 1.5 billion tonnesby 1% annually beginningdeclining to 1.803facilities. Additionalto 0.97 billion tonnes in



CRS-8
rovisionsS. 131 (Inhofe)(109th Congress)S. 1168(Alexander)S. 1177(Carper)S. 1201(Sanders)S. 1554(Collins)H.R. 3989(McHugh)
in 2025.in 2016, and by 1.5%billion tonnes in 2020,reductions may be required2030, declining to 0.68
beginning in 2020.and finally declining toif necessary to protectbillion tonnes in 2040,
1.5 billion tonnes inpublic health or welfare orand finally declining to
2025. Furtherthe environment.0.39 billion tonnes in
reductions required2050.
after 2025. Cap also
reduced by emissions
from small electric
generation facilities.
iki/CRS-RL34018issions cap34 tons in 2010,Less stringent of 60%Less stringent of 60%5 tons and, to the2.48 grams of Hg per GwhEmission rate limit set at
g/wercury declining to 15 tons inreduction or 0.02 lb./Gwhreduction or 0.02 lb./Gwhextent practicable,on a facility specific basis0.6 lb. per trillion Btu for
s.or2018.four years after enactment,in 2012, declining to theachieve a 90%by 2011.new (2009) and existing
leakdeclining to the lesser of90% reduction or 0.0060lesser of 90% reduction or0.0060 lb./Gwh in 2015.reduction on a facility-specific basis by 2013.(2011) coal-fired units.(Roughly equivalent to
://wikilb./Gwh in 2015. One yearextension available toSubject to EPA review.0.0060 lb./Gwh.)
httpinstall equipment.
pe50 states, DC, and48 contiguous states and50 states and DC.50 states and DC.50 states and DC.50 states and DC.
ter r ito r ies. DC.
Existing electricElectric generating facilitiesElectric generatingElectric generatingElectric generating facilitiesElectric generating
generating facilities 25greater than 25 Mw for CO2facilities greater than 25facilities 25 Mw or15 Mw or greater (coal-facilities 25 Mw or
Mw or greater (coal-, fossil fuel-fired electricMw, including incrementalgreater (coal-fired onlyfired only for Hg).greater (coal-fired only
fired only for Hg); co-generating facilities fornuclear capacity for CO2,for Hg).for Hg and CO2).


generation sourcesNOx and SO2 (coal-firedfossil-fuel-fired electric
exempted.only for Hg).generating facilities for
NOx, Title IV definition
for SO2, coal-fired only for

CRS-9
rovisionsS. 131 (Inhofe)(109th Congress)S. 1168(Alexander)S. 1177(Carper)S. 1201(Sanders)S. 1554(Collins)H.R. 3989(McHugh)
Hg.
lties forNOx, SO2, Hg: NOx, SO2 and CO2: two-NOx: Twice the averageNOx , SO2 and CO2NOx , SO2 and CO2 same asNOx and SO2 same as
reduces the excessfor-one offset from futureannual price in thesame as CAA, title IV,CAA, title IV, exceptCAA, title IV.
plianceemissions penaltiesemission allocations, plusappropriate zone perexcept excess emissionexcess emission penalty is
under CAA, title IV toan excess emissionsexcess ton plus at least anpenalty is three timesthree times the averageHg: $10,000 per ounce of
the EPA auctionpenalty.one-for-one offset fromthe average marketmarket price forexcess emissions.
clearing price forfuture emissionprice for allowances.allowances.
allowances plus one-Hg: $50,000 per excessallocations.CO2 : $150 per ton,
for-one offset frompound, indexed to inflation.Hg: three times theHg: three times the averageadjusted for inflation.
iki/CRS-RL34018future emissionSO2: Twice the averageaverage Hg controlHg control costs per gram
g/wallocations, if paidannual price per excess toncosts per gram ofof excess emission.
s.orwithin 30 days. plus at least an one-for-excess emission.
leakOtherwise, the numberof excess emissions isone offset from futureemission allocations.
://wikimultiplied by 1.5 forpenalty purposes.Hg: $50,000 per excess
httppound emitted.
CO2: Twice the two-year
average price plus at least
an one-for-one offset from
future emissions
allocations.
New performanceRevises NSR program toRevises NSR program toBeginning in 2015, allBeginning in 2016, allBeginning 5 years after
sionsstandards for newrequire affected electricrequire affected electricpowerplants 40 yearspowerplants 40 years orenactment, all
sources replace currentgenerating units 40 yearsgenerating units 40 yearsor older must meetolder must meet emissionpowerplants 30 years or
NSPS for new sources.or older to meet specificor older to meet specificemission limitationslimitations based on currentolder must meet most
Compliance with bill’sSO2 and NOx performanceSO2 and NOx performancebased on current bestbest available controlrecent NSPS, Part C



CRS-10
rovisionsS. 131 (Inhofe)(109th Congress)S. 1168(Alexander)S. 1177(Carper)S. 1201(Sanders)S. 1554(Collins)H.R. 3989(McHugh)
provisions exemptsstandards beginning instandards beginning inavailable controltechnology for a new major(PSD) and Part D (non-
facilities from New2020.2020. technology for a newsource.attainment) requirements
Source Review (NSR),major source.under the Act.
PSD-BACTBeginning in 2015, NewBeginning in 2015, NewCreates a new Efficiency
requirements, visibilityNSPS established for CO2.NSPS established for CO2.New CO2 emissionsPerformance Standard andRevenues from CO2
BART requirements,More stringent NSPSstandard for baseloadcredit program beginning inauctions to fund research
and non-attainmentAnnual SO2 and NOx capsbegins in 2025.powerplants that2007.and development of
LAER and offsetunder CAIR eliminated incommerce operationrenewable energy
requirements. The2015.Annual NOx cap underafter 2011. StandardCreates a Renewableprojects.
iki/CRS-RL34018exemption does notapply to PSD-BACTExtensive provisionsCAIR eliminated in thelater of 2012 or effectivewould be based on theemission rate of a newPortfolio Standard andcredit program, beginningAppropriations
g/wrequirements if facilityproviding for greenhousedate of NOx regulations.combined cycle naturalin 2009.authorized for several
s.oris within 50 Km ofgas offsets from landfillgas generating plant.monitoring networks.


leakClass 1 area. ExistingCH4, SF6 projects,CO2 program includesEPA may increase theContains separate titles on
sources can opt in byafforestation orallowance allocations forstringency to at leasttransportation fuel
://wikimeeting a particulatereforestation, energyincremental nuclear90% by 2030. Allefficiency, renewable fuels,
httpstandard.efficiency, agriculturalcapacity, clean coalbaseload plants mustelimination of certain tax
practices (manuretechnology, and renewablemeet New CO2provisions for the oil
Exempts utility unitsmanagement), and biomass.energy, along withemission standard byindustry, and research on
from Hg regulationsequestration and early2031, if feasible.abrupt climate change.
under CAA, Sectionaction provisions.
112, including residualCO2 program includesNew minimum Hg
risk provisions.allowance allocations forstandard for new
clean coal technology undersources established as
Prevents EPA froma Climate Championsof the date of
enforcing Section 126Program.enactment.
petitions before
December 31, 2014.Creates a new Low-
Carbon Generation

CRS-11
rovisionsS. 131 (Inhofe)(109th Congress)S. 1168(Alexander)S. 1177(Carper)S. 1201(Sanders)S. 1554(Collins)H.R. 3989(McHugh)
Requirement and credit
trading program
beginning in 2015.
Creates new Energy
Efficiency
Performance Standard
and credit program
beginning in 2008.
iki/CRS-RL34018Creates a Renewable
g/wPortfolio Standard and
s.orcredit program,
leakbeginning in 2008
://wikiRequires standards for
httpgeological CO2
disposal within 6 years
of enactment and
biological sequestration
within 2 years of
enactme nt.
plemen-Tradeable allowanceTradeable allowance systemTradeable allowanceTradeable allowanceTradeable allowance systemTradeable allowance
on strategysystem for SO2, NOx,for NOx, SO2 and CO2. Forsystem for NOx, SO2 andsystem for SO2, NOxfor SO2, NOx and CO2.system for SO2, NOx and
and Hg. AllocationNOx, and CO2, allocationsCO2. For NOx, and CO2,and CO2. Allocations toAllowances allocated toCO2.
formulas based onbased on historic heat inputallocations based onbe based on economic,various sectors and
historic fuel usageadjusted for each fuel’shistoric electricity output. equity, andinterests, includingSO2, and NOx allocations
adjusted by factorsgenerally applicableinternationalhouseholds, dislocatedleft to EPA discretion.



CRS-12
rovisionsS. 131 (Inhofe)(109th Congress)S. 1168(Alexander)S. 1177(Carper)S. 1201(Sanders)S. 1554(Collins)H.R. 3989(McHugh)
specified in the bill.emissions rate for thatFor SO2 current Title IVcompetitiveness criteriaworkers and communities,CO2 allowances are 100%
pollutant. allocations are revised andspecified in the bill.electricity intensiveauctioned.
Special reserves foradjusted for newer units. Allowances allocatedindustries, energy
new units provided forto various sectors andefficiency and renewableHg emissions rate limits
SO2, NOx and Hg.For SO2 current Title IVSpecial reserves for newinterests, includingenergy activities,are on a unit-by-unit
allocations are revised andunits provided for NOx,households, dislocatedsequestration activities, andbasis.


adjusted for newer units.CO2, and SO2.workers andecosystem restoration.
co mmunities,
Special reserves for newBeginning in 2012, 18%electricity intensiveFor Hg, plant-wide
iki/CRS-RL34018units provided for CO2 andSO2of CO2 allowances to beauctioned, a percentageindustries, energyefficiency andaveraging is permitted.
g/wincreased 3 percentagerenewable energy
s.orBeginning in 2011, 25% ofpoints annually until 2030activities, sequestration
leakCO2 allowances to bewhen the rate is increasedactivities, and
auctioned with proceedsto 5 percentage pointsecosystem restoration.
://wikigoing to electricityuntil 2036 when 100% is
httpconsumers and energy-auctioned. Revenues fromBeginning in 2010, at
intensive industries.the resulting Climateleast 50% of CO2
Action Trust Fund shall beallowances to be
For Hg, plant-wideused for innovative low-auctioned, with
averaging is permitted.and zero emitting carbonsuccessive increasing
technologies program,to raise it to 100%
clean coal technologieswithin 15 years of the
program, and research anddate of enactment.
analysis, and an energy
efficiency technologyFor Hg, plant-wide
program. Other fundedaveraging is permitted.
activities includes worker
and community impact

CRS-13
rovisionsS. 131 (Inhofe)(109th Congress)S. 1168(Alexander)S. 1177(Carper)S. 1201(Sanders)S. 1554(Collins)H.R. 3989(McHugh)
assistance, adaptation
assistance, and protecting
fish and wildlife habitat.
For Hg, facility-wide
averaging is permitted.
Congressional Research Service.


iki/CRS-RL34018
g/w
s.or
leak
://wiki
http