S. Rept. 110-254 - 110th Congress (2007-2008)

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Senate Report 110-254 - AMENDING THE CLEAN AIR ACT TO REDUCE EMISSIONS OF CARBON DIOXIDE FROM THE CAPITOL POWER PLANT

[Senate Report 110-254]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 553
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-254

======================================================================



 
 AMENDING THE CLEAN AIR ACT TO REDUCE EMISSIONS OF CARBON DIOXIDE FROM 
                        THE CAPITOL POWER PLANT

                                _______
                                

               December 19, 2007.--Ordered to be printed

                                _______
                                

    Mrs. Boxer, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1523]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1523) to amend the Clean Air Act to reduce 
emissions of carbon dioxide from the Capitol power plant, 
having considered the same reports favorably thereon and 
recommends that the bill do pass.

                    General Statement and Background


                    SUMMARY AND NEED FOR LEGISLATION

    The Capitol Power Plant currently burns primarily coal and 
natural gas to help heat and cool the Capitol Complex, 
resulting in emission of carbon dioxide and other air 
pollutants. According to the Government Accountability Office's 
April 2007 report Legislative Branch: Energy Audits Are Key to 
Strategy for Reducing Greenhouse Gas Emissions, the Capitol 
Power Plant accounts for approximately one-third of legislative 
branch greenhouse gas emissions, primarily from the combustion 
of fossil fuels used to generate steam for heat and to make 
chilled water to cool the buildings. The power plant's boilers 
use coal for about half of its output, natural gas for most of 
the rest of its output, and a relatively small amount of oil.
    Technologies available today can help capture and/or use 
the carbon dioxide that is released when coal is burned and 
reduce emissions of greenhouse gases and potentially of other 
air pollutants. The Capitol Power Plant provides an excellent 
opportunity to demonstrate such technologies.
    S. 1523, the Boxer-Alexander bill creates a demonstration 
project at the Capitol power plant for the capture or use of 
CO2 emissions from coal burned at the plant.
    The project would authorize $3 million dollars to be 
awarded by EPA on a competitive basis for a two-year project 
that captures, stores or uses carbon dioxide emitted from the 
plant when coal is burned.
    Factors EPA is to consider in providing the grants include 
the ability of such a project to convert the carbon dioxide 
into a useful product, such as a transportation fuel, and the 
ability of the project to reduce levels of multiple air 
pollutants. In addition, the carbon dioxide energy efficiency 
of the proposed project is to be taken into account. EPA is to 
carry out the demonstration project in consultation and with 
the concurrence of the Architect of the Capitol. The program is 
to use technology that has been used at least 3 other 
facilities on a scale that is at least five times the size of 
the Capitol Powerplant project that is proposed. The project 
must reduce or eliminate greenhouse gas emissions into the 
atmosphere. Bonuses can be provided for days of continuous 
operation.

                     Objectives of the Legislation

    The goal of the legislation is to demonstrate that 
greenhouse gas emissions from a fossil fuel-fired power plant 
such as the Capitol Power Plant can be reduced through the use 
of new technologies. The thrust of the bill is to show that the 
government can lead by example, demonstrating in a high-profile 
way that cutting-edge technological solutions can help to 
reduce greenhouse gas and potentially other air pollutant 
emissions.

                      Section-by-Section Analysis


Section 1. Definitions and establishment of demonstration program

    Section 1 amends the Clean Air Act by adding a new 
subsection 118(e) requiring the establishment of a 
demonstration program for control of greenhouses gas emissions 
from the Capitol Power Plant.
    Subsection (e)(1) includes definitions of the ``Capitol 
Power Plant,'' ``carbon dioxide energy efficiency,'' and 
``program.''
    Subsection (e)(2) requires the EPA Administrator to 
establish a competitive grant demonstration program under which 
the EPA must provide grants to eligible entities to carry out 
projects to demonstrate, during the 2-year period beginning on 
the date of enactment, the capture and storage or use of carbon 
dioxide emitted from the Capitol power plant as a result of 
burning coal.
    Subsection (e)(3) requires that EPA provide the grants 
under the program on a competitive basis. In providing grants 
under the program, EPA is required to take into consideration 
the practicability of the potential conversion of carbon 
dioxide captured in the project into useful products, such as 
transportation fuel. EPA also is to consider the carbon dioxide 
energy efficiency of the proposed project, and whether the 
proposed project is able to reduce more than one air pollutant, 
in addition to carbon dioxide, that is regulated under the 
Clean Air Act. Any entity receiving a grant is required to use 
the funds to carry out a project using a technology that is in 
existence on the date of enactment, that is designed to reduce 
or eliminate emissions of carbon dioxide, and that has been 
used at three or more other facilities (including a coal-fired 
power plant). The entity also must show it has used the 
technology on a scale of five or more times the size of the 
proposed project at the Capitol power plant (the project at the 
Capitol Power Plant need not capture all of the carbon dioxide 
emitted by that plant). The project is to be carried out in 
consultation with, and with the concurrence with the Architect 
of the Capitol.
    Subsection (e)(4) provides that in addition to the grant 
under the previous paragraphs, EPA may provide to an entity 
that receives such a grant an incentive award in an amount 
equal to not more than $50,000 for sustained operation of the 
project. Of these funds, $15,000 shall be provided if EPA 
determines that the project has sustained operation for a 
period of 100 days, $15,000 shall be provided if the project 
has sustained operation for a period of 200 days, and $20,000 
shall be provided if it has sustained operation for a period of 
300 days, as determined by the Administrator.
    Subsection (e)(5) provides that the program shall terminate 
two years after the date of enactment.
    Subsection (e)(6) authorizes to be appropriated three 
million dollars to carry out this program.

                          Legislative History

    S. 1523 was introduced on May 24, 2007, by Senators Boxer 
and Alexander as original cosponsors. Additional cosponsors 
include Senators Warner, McConnell, and Lieberman. The bill was 
referred to the Committee on Environment and Public Works, and 
was ordered reported favorably out of the Committee without 
amendment on June 6, 2007.

                             Rollcall Votes

    S. 1523 was approved by the Committee on Environment and 
Public Works by voice vote without amendment on June 6, 2007.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes evaluation of 
the regulatory impact of the reported bill.
    The bill does not create any additional regulatory burdens, 
nor will it cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4), the Committee finds that S. 1523 would impose 
no Federal intergovernmental unfunded mandates on State, local, 
or tribal governments.

               Congressional Budget Office Cost Estimate

    Summary: S. 1523 would authorize the Environmental 
Protection Agency (EPA) to provide grants for projects 
demonstrating the capture and storage of carbon dioxide emitted 
from the Capitol power plant in Washington, D.C. Assuming 
appropriation of the authorized amount, CBO estimates that 
administering the program would cost $3 million over the 2008-
2009 period. Enacting the legislation would not affect direct 
spending or revenues.
    S. 1523 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, or tribal 
governments.
    Estimated costs to the Federal Government: The estimated 
budgetary impact of S. 1523 is shown in the following table. 
The costs of this legislation would fall within budget function 
300 (natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level......................................        2        1        0        0        0
Estimated Outlays..................................................        2        1        0        0        0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
1523 will be enacted by the start of 2008 and that the 
authorized amount will be appropriated in 2008 and 2009. The 
bill would amend section 118 of the Clean Air Act to authorize 
EPA to award grants to eligible entities for projects that 
demonstrate the capture and storage or use of carbon dioxide 
emitted from the Capitol power plant over a two-year period. 
The power plant is located in the vicinity of and provides 
power to the Capitol Complex in Washington, D.C. CBO estimates 
that implementing the bill would cost $3 million over the 2008-
2009 period.
    Intergovernmental and private-sector impact: S. 1523 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on State, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Susanne S. Mehlman and 
David Reynolds; Impact on State, local, and tribal governments: 
Neil Hood; Impact on the Private Sector: Amy Petz.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman:

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                              ----------                              


CLEAN AIR ACT

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              control of pollution from federal facilities

      Sec. 118. (a) General Compliance.--Each department, 
agency, and instrumentality of executive, legislative, and 
judicial branches of the Federal Government (1) having 
jurisdiction over any property or facility, or (2) engaged in 
any activity resulting, or which may result, in the discharge 
of air pollutants, and each officer, agent, or employee 
thereof, shall be subject to, and comply with, all Federal, 
State, interstate, and local requirements, administrative 
authority, and process and sanctions respecting the control and 
abatement of air pollution in the same manner, and to the same 
extent as any nongovernmental entity. The preceding sentence 
shall apply (A) to any requirement whether substantive or 
procedural (including any recordkeeping or reporting 
requirement, any requirement respecting permits and any other 
requirement whatsoever), (B) to any requirement to pay a fee or 
charge imposed by any State or local agency to defray the costs 
of its air pollution regulatory program, (C) to the exercise of 
any Federal, State, or local administrative authority, and (D) 
to any process and sanction, whether enforced in Federal, 
State, or local courts, or in any other manner. This subsection 
shall apply notwithstanding any immunity of such agencies, 
officers, agents, or employees under any law or rule of law. No 
officer, agent, or employee of the United States shall be 
personally liable for any civil penalty for which he is not 
otherwise liable.
      (b) * * *

           *       *       *       *       *       *       *

  (d) Vehicles Operated on Federal Installations.--Each 
department, agency, and instrumentality of executive, 
legislative, and judicial branches of the Federal Government 
having jurisdiction over any property or facility shall require 
all employees which operate motor vehicles on the property or 
facility to furnish proof of compliance with the applicable 
requirements of any vehicle inspection and maintenance program 
established under the provisions of subpart 2 of part D or 
subpart 3 of part D for the State in which such property or 
facility is located (without regard to whether such vehicles 
are registered in the State). The installation shall use one of 
the following methods to establish proof of compliance--
          (1) presentation by the vehicle owner of a valid 
        certificate of compliance from the vehicle inspection 
        and maintenance program;
          (2) presentation by the vehicle owner of proof of 
        vehicle registration within the geographic area covered 
        by the vehicle inspection and maintenance program 
        (except for any program whose enforcement mechanism is 
        not through the denial of vehicle registration);
          (3) another method approved by the vehicle inspection 
        and maintenance program administrator.
  (e) Capitol Power Plant Carbon Dioxide Emissions 
Demonstration Program.--
          (1) Definitions.--In this subsection:
                  (A) Capitol power plant.--The term ``Capitol 
                power plant'' means the power plant constructed 
                in the vicinity of the Capitol Complex, 
                Washington, DC, pursuant to the first section 
                of the Act of April 28, 1904 (33 Stat. 479, 
                chapter 1762), and designated under the first 
                section of the Act of March 4, 1911 (2 U.S.C. 
                2162).
                  (B) Carbon dioxide energy efficiency.--The 
                term ``carbon dioxide energy efficiency'', with 
                respect to a project, means the quantity of 
                electricity used to power equipment for carbon 
                dioxide capture and storage or use.
                  (C) Program.--The term ``program'' means the 
                competitive grant demonstration program 
                established under paragraph (2).
          (2) Establishment of program.--The Administrator 
        shall establish a competitive grant demonstration 
        program under which the Administrator shall provide to 
        eligible entities, as determined by the Administrator, 
        grants to carry out projects to demonstrate, during the 
        2-year period beginning on the date of enactment of 
        this subsection, the capture and storage or use of 
        carbon dioxide emitted from the Capitol power plant as 
        a result of burning coal.
          (3) Requirements.--
                  (A) Provision of grants.--
                          (i) In general.--The Administrator 
                        shall provide the grants under the 
                        program on a competitive basis.
                          (ii) Factors for consideration.--In 
                        providing grants under the program, the 
                        Administrator shall take into 
                        consideration--
                                  (I) the practicability of 
                                conversion by the proposed 
                                project of carbon dioxide into 
                                useful products, such as 
                                transportation fuel;
                                  (II) the carbon dioxide 
                                energy efficiency of the 
                                proposed project; and
                                  (III) whether the proposed 
                                project is able to reduce more 
                                than 1 air pollutant regulated 
                                under this Act.
                  (B) Requirements for entities.--An entity 
                that receives a grant under the program shall--
                          (i) use to carry out the project of 
                        the entity a technology designed to 
                        reduce or eliminate emission of carbon 
                        dioxide that is in existence on the 
                        date of enactment of this subsection 
                        that has been used--
                                  (I) by not less than 3 other 
                                facilities (including a coal-
                                fired power plant); and
                                  (II) on a scale of not less 
                                than 5 times the size of the 
                                proposed project of the entity 
                                at the Capitol power plant; and
                          (ii) carry out the project of the 
                        entity in consultation and concurrence 
                        with the Architect of the Capitol.
          (4) Incentive.--In addition to the grant under this 
        subsection, the Administrator may provide to an entity 
        that receives such a grant an incentive award in an 
        amount equal to not more than $50,000, of which--
                  (A) $15,000 shall be provided after the 
                project of the entity has sustained operation 
                for a period of 100 days, as determined by the 
                Administrator;
                  (B) $15,000 shall be provided after the 
                project of the entity has sustained operation 
                for a period of 200 days, as determined by the 
                Administrator; and
                  (C) $20,000 shall be provided after the 
                project of the entity has sustained operation 
                for a period of 300 days, as determined by the 
                Administrator.
          (5) Termination.--The program shall terminate on the 
        date that is 2 years after the date of enactment of 
        this subsection.
          (6) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out the program 
        $3,000,000.

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