Clean Air Interstate Rule and Clean Air Mercury Rule (Multi-Pollution Legislation)

What's New

NPRA joined eight other organizations in signing a letter urging Members of the Senate to oppose Senate Resolution 20. The resolution, offered by Senators Patrick Leahy (D-VT) and Susan Collins (R-ME) would repeal the EPA's Clean Air Mercury Rule (CAMR)

NPRA's Letter

On September 13, the Senate, by a vote of 47-51, defeated Senate Resolution 20.

EPA issued the CAMR on March 15 to permanently cap and reduce mercury emissions from coal-fired power plants for the first time ever, using a market-oriented cap-and-trade program that allows industry the necessary flexibility to develop and implement appropriate pollution reduction technology. This rule, combined with EPA's Clean Air Interstate Rule (CAIR), could significantly reduce emissions from the nation's largest remaining source of human-caused mercury emissions in a cost-effective manner.

NPRA Position

NPRA supports both the legislation and EPA's proposals to reduce the transport of SO2 and NOx and the reduction of mercury emissions from electric generating units. NPRA recommends that EPA's approach to implementing these reductions provide regulatory certainty and flexibility for electric utilities so that they can avoid switching to natural gas. Unwarranted fuel switching would further aggravate the natural gas supply/demand imbalance. It would have major impacts on the refining and petrochemical industries that use natural gas as a feedstock. NPRA does not support including combined heat and power (CHP) units in the legislation or in regulation.

Issues Brief:

A March 9, 2005 Senate Environment Committee markup of the Clear Skies Act of 2005 ended in a stalemate. The 9-9 vote ended weeks of negotiations as Republicans tried to find one more vote to pass the bill out of committee. In the end, three senators thought to be undecided - Senators Chafee (R-RI), Baucus (D-MT) and Obama (D-IL) - voted against the bill. This most likely prevents the Clear Skies Act of 2005 from moving to the Senate floor and is a setback to the Bush Administration's plans to amend air pollution laws. Environment and Public Works Chairman Jim Imhofe (R-OK) and Clean Air Subcommittee Chairman George Voinovich (R-OH) had reintroduced multi-pollutant legislation on January 24, 2005. The "Clear Skies Act of 2005" would reduce sulfur dioxide, nitrogen oxide and mercury emissions from utility power plants by 70 percent by 2018.

For sulfur dioxide emission reductions, the legislation would retain the relevant requirements of the existing Acid Rain Program through December 31, 2009 and establishes new caps and allocation procedures for sulfur dioxide emissions starting in 2010. For nitrogen oxide emission reductions, the legislation retains the requirements of the existing Acid Rain Program and the requirements of the NOx SIP Call through 2007. In addition, it would establish new caps and allocation procedures for nitrogen oxides emissions starting in 2008 with separate cap-and-trade systems for Zone 1(eastern and central parts of U.S.) and Zone 2 (western part of U.S. and territories). Mercury caps and allocation procedures would begin in 2010. The legislation will allow units (such as combined heat and power units) outside the scope of the bill the ability to opt-in to the program.

Clear Skies Legislation, also known as multi-pollution legislation, for the most part, has been replaced by two EPA regulatory proposals: Clean Air Interstate Rule and the Clean Air Mercury Rule. Many of the features of the Clear Skies Initiative such as Cap and Trade are incorporated into the two regulatory proposals. The regulatory proposals similar to Clear Skies require reductions in sulfur dioxide, nitrogen oxides, and mercury.

Clear Skies, originally introduced by the Bush Administration in February 2002, attempts to expand on the success of the Acid Rain Program by taking a multi-emission approach, reducing SO2, NOx, and mercury in utility generating units by approximately 70 percent. The proposed legislation would amend Title IV of the Clean Air Act to create a national emissions trading program requiring significant reductions and mandatory caps on the three pollutants. Clear Skies legislation has been introduced in the House and Senate since 2002, but efforts to move the legislation to enactment have been unsuccessful. One of the key issues hindering legislative efforts has been whether or not the legislation should also include mandatory reductions for carbon dioxide. Senate Republicans and the Bush Administration have been strongly opposed to the inclusion of mandatory carbon dioxide controls, while Democrats have offered multi-pollutant legislation that includes mandatory carbon dioxide reductions.

In the January 30, 2004 Federal Register, EPA proposed new air rules for reducing emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury. EPA proposed the Interstate Air Quality Rule which focuses on states whose SO2 and NOx emissions are significantly contributing to fine particle and ozone pollution problems in other downwind states. The proposed Interstate Air Quality Rule would cover 29 states in the Eastern United States and the District of Columbia. In a separate but closely related action, EPA proposed the Utility Mercury Reductions Rule for controlling mercury emissions from power plants. It is anticipated that both of these rules will be finalized during 2005.