Acid Rain Abatement Act of 1989

Acid Rain Abatement Act of 1989 - Amends the Clean Air Act to phase in, by 2004, a nationwide reduction in annual emissions of sulfur dioxide from fossil fuel fired electric utility steam generating units of 10,000,000 tons measured from 1980 emissions or, if such emissions increased in a State from 1980 to 1985, measured from 1985 emissions. Directs the Administrator of the Environmental Protection Agency to allocate such reductions among States on the basis of each State's share of excess sulfur dioxide emissions from such units.

Requires States to: (1) submit for the Administrator's approval State plans establishing emissions limitations, compliance schedules, and other enforceable measures necessary for achieving required sulfur dioxide emission reductions; and (2) consider, and make available for public comment, cost and employment impact information regarding the various emission control options before adopting final plans. Provides for the coordination of State plans with respect to electric utilities which serve rate payers in more than one State. Requires plan revisions, required for the final phase of sulfur dioxide emission reductions, to contain an emission tonnage ceiling for the aggregate of all electric utility steam generating units operated by a single company.

Credits States with certain sulfur dioxide emission reductions achieved after 1980 and before this Act's enactment by fossil fuel fired electric utility steam generating units not covered by this Act. Requires a State to biannually quantify its current level of sulfur dioxide emissions, report its findings to the Administrator on a source-by-source basis, and revise its plan if the Administrator finds it to be substantially inadequate to comply with this Act's requirements.

Directs the Administrator to impose a noncompliance penalty against the owner or operator of a stationary source, based on the number of pounds of excess emissions from such source, if the State in which such source is located fails to: (1) submit an implementation plan to the Administrator which is approved; or (2) enforce any requirement of its approved plan against such source.

Allows State plans to provide for trading of emission reduction requirements: (1) among electric utility units within a State; (2) among electric utilities in more than one State which participate in the same power pool or are owned and operated by a single electric utility; and (3) between electric utility units and certain other major sources within the State.

Requires fossil fuel fired electric utility steam generating units to install and operate continuous emissions monitoring for sulfur dioxide and oxides of nitrogen. Requires utility and non-utility fossil fuel fired steam generating units and major sources of process emissions to maintain, and make available to the public, records on emissions and hours of operation.

Authorizes a State to extend for up to two years the date by which a stationary source which utilizes clean coal technology must meet sulfur dioxide emissions reduction requirements. Excuses State failures to meet emissions reduction requirements when such failures are solely attributable to such extensions. Prohibits the increase of aggregate annual statewide emissions of sulfur dioxide from fossil fuel fired electric utility steam generating units beyond the emissions level required to be achieved by 2004.

Directs the Administrator to conduct a study of the net effects on air quality of obtaining a reduction of from one to three million tons (from 1985 levels) in emissions of oxides of nitrogen from fossil fuel fired electric utility steam generating units, considering the effects of such air pollutant on ozone formation as well as acid deposition. Requires that such study be completed by 1993 and submitted to the Congress. Directs the Administrator to: (1) establish oxides of nitrogen emissions limitations for fossil fuel fired electric utility steam generating units by 1995; and (2) require States to submit plans for compliance with such limitations by 2004.

Prohibits the early termination of any fossil fuel supply contract by reason of changed circumstances wrought by this Act or State implementation plans.

Directs the Secretary of Energy and the Administrator to enter into agreements with, or provide grants to, owners or operators of major sources of air emissions to test the effectiveness and feasibility of the commercial application of clean coal technologies. Requires the utilization of technology which would be appropriate for retrofit and be no more costly in reducing sulfur dioxide and oxides of nitrogen emissions than conventional technology. Requires the Secretary to consider whether the State regulatory authority has found the utility's application of the technology to be prudent before providing the utility with assistance. Limits Federal funding to 50 percent of project costs. Exempts projects which receive assistance for the implementation of clean coal technologies from the Clean Air Act's new source performance standards.

Authorizes appropriations for FY 1990 through 1993.

Directs the Administrator to revise the performance standards for sulfur dioxide and oxides of nitrogen from fossil fuel fired electric utility steam generating units which commence construction or modification after 1996 so that such standards reflect emissions reduction improvements.