Acid Deposition Control and Cost Sharing Act of 1984

Acid Deposition Control and Cost Sharing Act of 1984 - Amends the Clean Air Act to establish an acid deposition control and cost sharing program.

Defines an "acid deposition impact region" as the 31 States east of or bordering on the Mississippi River, and the District of Columbia.

Defines "existing major emitting electric powerplant" as any fossil fuel-fired steam electric power plant consisting of one or more steam generating units which: (1) is a major emitting facility; and (2) had been in commercial operation on or before December 31, 1980. Provides that steam generating units not in commercial operation on or before December 31, 1980, shall not be considered part of an existing major emitting electric powerplant.

Defines "innovative emission limitation system" as a technological system of continuous emission reduction which has not been adequately demonstrated on a commercial scale and which, compared with any system which has been adequately demonstrated, has a substantial likelihood of achieving: (1) either greater continuous emission reduction of sulfur dioxide or greater simultaneous reduction of sulfur dioxide and nitrogen oxide emissions; and (2) reduction of sulfur dioxide emissions at a lower cost in terms of energy, economic, or nonair quality environmental impact. (Gives limestone injection multistage burners ("LIMB") as an example of an innovative emission limitation system.)

Requires that, by January 1, 1996, the total annual sulfur dioxide emissions from existing major emitting powerplants in the acid deposition impact region not exceed a level 8,000,000 tons less than the actual level of such emissions from such powerplants in 1980.

Prohibits any existing major emitting electric powerplant in the acid deposition impact region from increasing its annual emissions of sulfur dioxide (measured in tons per year) above the actual annual rate of emissions experienced by the plant during 1978, 1979, or 1980, unless: (1) there has been identified for such plant an enforceable, contemporaneous, and equivalent reduction in actual emissions not otherwise required under the Act at one or more points within the same State or (with the permission of the Governors of such States) within other States within the region; (2) the increase is authorized in an approved plan under this Act; or (3) the increase is due to a conversion completed pursuant to the Energy Supply and Environmental Coordination Act of 1974, the Fuel Use Act of 1978, or the Omnibus Budget Reconciliation Act of 1981, to the extent that such conversion does not result in emissions exceeding one and one-half pounds of sulfur dioxide per million Btus of heat input on an annual average. Makes violations of such prohibition violations of applicable implementation plans and emission limitations under specified provisions of the Act.

Provides that no expenditure of funds on an existing major emitting electric powerplant in order to satisfy an emission limitation under this Act shall be deemed a reconstruction of that plant (or any part thereof) for any purpose under the Act.

Requires each State in the acid deposition impact region to achieve its share of the reduction in annual sulfur dioxide emissions required for the entire region. Bases such share on the actual 1980 sulfur dioxide emissions which are in excess of one and one-half pounds per million Btus from existing major emitting electric powerplants within such State. Directs the Administrator of the Environmental Protection Agency, after consultation with the Governors of the States in the region, to publish within six months after enactment of this Act a list identifying such powerplants and 1980 emissions and specifying the sulfur dioxide emissions reductions which each State must achieve. Authorizes the Governors of any two or more States in the region to reallot among agreeing States such required reductions, provided that the total reductions equal the required total. Prohibits court review of any such list or agreement.

Requires each State in the region, within three years after enactment of this Act, to submit a plan to achieve its required share of the reduction in sulfur dioxide emissions. Directs the Administrator to approve, within 12 months after its submission, any such plan or plan modification if, taking into consideration the comments of Governors of other States in the region, the Administrator finds that the plan or plan modification: (1) contains compliance schedules and authorized emission reduction methods or programs; (2) contains adequate monitoring requirements; and (3) is adequate to achieve the required total reduction in sulfur dioxide emissions for such State as expeditiously as practicable, but no later than January 1, 1996. Makes each emission limitation, compliance schedule, or other measure approved under this Act a requirement of an applicable implementation plan and an emission limitation for purposes of specified provisions of the Act.

Provides that, if a State plan which fully satisfies the requirements of this Act has not been approved by January 1, 1989, an annual average emission limitation of one and one-half pounds of sulfur dioxide per million Btus shall apply to each existing major emitting electric powerplant within such State in the region. Requires the owner or operator of each such powerplant within such State to submit to the Administrator, by July 1, 1989, a plan for achieving such emission limitation. Directs the Administrator to approve such plan or plan modification within 12 months if it meets the same criteria and deadline as required for a State plan. Makes any measures approved under such plan a requirement of an applicable implementation plan and an emission limitation for purposes of specified provisions of the Act, and makes it a violation of such provisions for any owner or operator to fail to: (1) submit an approvable plan within the time prescribed; (2) comply with the plan; or (3) achieve the emission limitation as expeditiously as practicable but not later than January 1, 1996.

Authorizes, for purposes of State plans under this Act, the use of any emission reduction methods or programs, if: (1) such methods or programs do not include the use of coal having a significantly lower sulfur content (as mined, disregarding reductions accomplished through precombustion cleaning) than the average sulfur content used by the powerplant during any six-month period in the five-year period ending December 31, 1983, with specified exceptions; (2) emissions limitations under such methods or programs are enforceable; and (3) emissions reductions occur within the State or within other agreeing States in the region. Provides that such authorized methods or programs may include: (1) any technological system of continuous emission reduction; (2) least emission dispatch to meet electric generating demand at existing generating capacity; (3) retirement of existing major emitting electric powerplants or portions thereof at an earlier date than provided in schedules on file with the Federal Energy Regulatory Commission, the Internal Revenue Service, or State utility regulatory agencies; (4) trading of emissions reduction requirements imposed under this Act and actual reductions not otherwise required under the Act; and (5) investments in energy conservation with which quantifiable reductions in emissions can be identified. Allows a State plan or plan modification to require emission reductions at sources other than existing major emitting electric powerplants, if such reductions are actual emission reductions not otherwise required under the Act.

Requires, for purposes of powerplant owner or operator plans which are submitted when State plans have not been approved on time, that authorized reduction methods or programs: (1) meet all the requirements for those under State plans; (2) reduce emissions at sources owned or operated by the person submitting the plan (with specified exceptions); and (3) be limited to technological systems of continuous emission reduction, least emission dispatch to meet electric generating demand at existing generating capacity, early retirement of powerplants, and trading of emission reduction requirements and actual reductions (whether or not such requirements or reductions occur at sources owned or operated by the person submitting the plan).

Directs States and the Administrator to establish emission reduction banks or brokerage institutions to facilitate trading in emissions reduction requirements imposed under this Act and actual reductions not otherwise required under the Act.

Directs the Administrator, before October 1, 1989, to contract with the National Academy of Sciences (NAS) to study and report on: (1) the significant adverse effects on public health and welfare which may reasonably be associated with atmospheric deposition of acidic compounds; (2) areas of the country which are, or are exposed to a significant risk of, experiencing such effects; (3) whether and to what extent particular sources in particular areas can reasonably be associated with the atmospheric acidic compounds associated with such risks and effects; and (4) the availability of controls for such sources and the social and economic costs of controlling them so as to eliminate or significantly mitigate such risks and effects. Requires that the NAS report be submitted to the President and Congress before December 31, 1996. Directs the Administrator to submit to Congress, before June 1, 1997, draft legislation to require, if necessary, further emission control strategies that are consistent with the NAS report.

Authorizes the Administrator to issue an innovative control order to an existing major emitting electric powerplant, after consultation with the Governor of the State where the plant is located, upon determination that: (1) the plant owner or operator will expeditiously use an innovative emission limitation system which is reasonably likely to be adequately demonstrated, upon expiration of the order, at one or more facilities; (2) such system is not likely to be used at the plant unless such order is granted; (3) the owner or operator has demonstrated that the proposed system will not cause or contribute to an unreasonable risk to public health, welfare or safety in its operation, function, or malfunction; and (4) the granting of such order will not make the total number of such orders with respect to such system exceed that which the Administrator finds appropriate to ascertain whether or not such system has been adequately demonstrated or will achieve an equivalent continuous reduction at lower cost in terms of energy, economic, or nonair quality environmental impact.

Requires that such innovative control orders: (1) specify a final date of compliance with emission limitations under this Act, which shall not be later than January 1, 1996, with specified exceptions; and (2) set forth compliance schedules containing increments of progress which require such compliance as expeditiously as practicable.

Requires a source, during the period covered by an innovative control order, to comply with interim requirements which the Administrator: (1) determines are reasonable and practicable; and (2) specifies in the order.

Prohibits any enforcement action from being pursued based upon noncompliance with any emission limitations under this Act which is covered by the innovative control order during the period for which such order is in effect.

Makes any compliance schedule or interim requirement imposed in an innovative control order a requirement of an applicable implementation plan and an emission limitation for purposes of specified provisions of the Act.

Authorizes the Administrator to revoke, extend, or modify an innovative control order upon specified determinations.

Authorizes the Administrator to issue a compliance coal order to an existing major emitting electric powerplant allowing that source to comply in whole or part with an emission limitation under this Act by using coal having a significantly lower sulfur content than coal used by the source during any six-month period in the five-year period ending December 31, 1983, upon determination that: (1) the plant is subject to an emission limitation under this Act; (2) the only feasible way of complying with such emission limitation which is authorized under this Act would involve the installation and use of a technological system of continuous emission reduction; and (3) the costs of installing and operating that system would be grossly disproportionate to any local or regional economic disruption or unemployment which would result from the use by that plant of such lower sulfur content coal.

Prohibits the granting of any compliance coal order unless the annualized capital and operating costs of a technological system of continuous emission reduction, as determined by the Administrator, are at least 20 percent greater than the baseline model estimate (BME) of the annualized capital cost of a system as calculated in a specified manner. Directs the Administrator, within six months after the enactment of this Act, to develop a baseline model to estimate representative retrofit capital and operating costs of technological systems of continuous emission reduction, following specified procedures and taking specified factors into account.

Provides that any reduction in the sulfur content of coal accomplished through precombustion cleaning be disregarded in determining for purposes of this Act the average sulfur content of coal used by a plant during any six-month period in the five-year period ending December 31, 1983.

Directs the Administrator to consult with the Governor of the State in which the plant is located, and the Governors of the States where the coal used by that plant is mined, prior to issuing a compliance coal order.

Requires that a compliance coal order have a five-year duration, and allows extensions for additional five-year periods.

Authorizes the Administrator to revoke, extend, or modify a compliance coal order upon specified determinations.

Makes a term or condition of a compliance coal order a requirement of an applicable implementation plan and an emission limitation under specified provisions of the Act.

Establishes in the U.S. Treasury an Acid Deposition Control Trust Fund. Directs the Secretary of the Treasury to establish the Fund within one year after enactment of this Act.

Provides that the Fund shall continue in existence until all distributions have been made in accordance with this Act. Provides that any amount remaining in the Fund on January 1, 2006, shall be used to make additional payments which may be required on account of past underpayments. Provides that, after such additional payments have been made, and all repayments into the Fund required on account of past overpayments have been collected, any remaining amount in the Fund shall be distributed to the owners and operators of existing major emitting electric powerplants in proportion to the amount of fees they paid during the Fund's lifetime, but only if they pass on such refunded payment to their current customers in the form of a rebate or rate reduction.

Directs the Secretary to: (1) be the Fund's trustee; (2) manage the Fund by investing in a specified manner any portion of the Fund not required to meet current obligations; (3) report annually to Congress on the financial condition of the Fund; and (4) make a final report, and accounting, to Congress at the termination of the Fund.

Requires the payment into the Fund of acid deposition impact region user fees by owners and operators of existing major emitting electric powerplants located within the region. Requires such fee payment to begin January 1, 1985, and to continue until December 31, 1999. Sets the amount of the fee on the basis of electricity generated by such plant: (1) during 1985, at one mill per kilowatt-hour; (2) during 1986, at two mills per kilowatt-hour; and (3) during 1987 through 1999, at three mills per kilowatt-hour. Exempts from such fee payment determinations any unit of such a plant which: (1) operates a technological system of continuous emission reduction which was not installed to meet requirements under this Act; and (2) operates such emissions control equipment to remove 70 percent or more of potential combustion emission of sulfur dioxide.

Directs the Administrator, within six months after enactment of this Act, and after consulting with the Secretary, to issue regulations governing the conditions under which payments will be made from the Fund. Directs the Administrator, beginning after January 1, 1992, and ending by December 31, 2005, to make annual payments from the Fund to owners or operators of existing major electric powerplants. Requires that such payments cover: (1) 90 percent of all annual capital costs, and 50 percent of all annual operating costs, of control technology which the Administrator determines to be necessary to comply with specified requirements of this Act; or (2) 90 percent of all such capital costs and 90 percent of all such annual operating costs as the Administrator determines to be necessary to comply with specified requirements of this Act if an innovative control technology is used. Limits payment of such costs to specified periods ending on or before December 31, 2005. Prohibits payments from the Fund to cover: (1) costs not essential to the construction, retrofit, and operation of the control equipment; (2) financing costs above the acceptable range of interest costs available to the utility; or (3) capacity or energy losses resulting from the retrofitting of an emission reduction system.

Directs the Administrator to publish, within 18 months after the enactment of this Act, regulations specifying procedures for approving and making payments from the Fund to cover all applicable costs according to specified criteria. Authorizes the Administrator to delegate to a State, at its request and if it has an approved State plan, the authority to approve such payments, subject to the Administrator's approval.

Prohibits any annual operating cost payment during any period in which the major existing electric powerplant is not in compliance with any applicable requirements under this Act. Provides that any operating costs incurred during any such period shall not be considered in determining whether overpayments or underpayments have been made. Prohibits any annual capital cost payment during any period in which the powerplant is not in compliance with any compliance schedule under this Act, unless such plant is making a good faith effort.

Directs the Administrator, within 24 months after the enactment of this Act, and after consultation with the Secretary, to promulgate regulations governing the making of payments from the Fund and the collection of overpayments. Sets forth requirements relating to such regulations.

Sets forth civil and criminal fines for specified failures to pay fees or repayments under this Act.

Allows up to $50,000,000 per year from the Fund to be used for the development and demonstration of sulfur dioxide emission control technologies and for specified research authorized under the Energy Security Act of 1980.

Provides that no payments from the Fund shall be considered as "income" for purposes of the Internal Revenue Code, or as "rate relief" for purposes of any State regulatory system. Provides that no capital or operating expenses which are compensated under this Act shall be used to reduce any tax obligation under the Internal Revenue Code.

Directs the Administrator to make payments of up to $40,000,000 from the Fund to the NAS for services performed pursuant to the contracts for the study and report under this Act.

Authorizes the Administrator to delegate to a State, at its request and if it has an approved State plan, the authority to approve payments required under provisions of this Act relating to the Fund.