Clear Skies Act

Clear Skies Reduces and Caps Power Plant Emissions

The Clear Skies Act set forth a mandatory program that, when enacted by Congress, would dramatically reduce power plant emissions of sulfur dioxide (SO₂), nitrogen oxides (No_x), and mercury by setting a national cap on each pollutant.

	Actual Emissions in 2000	First Phase of Reductions	Second Phase of Reductions	Reduction at Full Imlementation
SO2	11.2 million tons	4.5 million tons in 2010*	3 million tons in 2018*	73%
NOx**	5.1 million tons	2.1 million tons in 2008*	1.7 million tons in 2018*	67%
Mercury	48 tons	26 tons in 2010	15 tons in 2018*	69%

*Because sources can reduce emissions early, earn allowances for those actions, and use those allowances later, actual emission levels will be higher than the cap in the first years of these phases.
**The NO_x cap is divided between two zones with separate trading programs under each zone. Zone 2 includes states participating in the WRAP process as well as Nebraska and some of Western Texas. Zone 1 includes the remaining 33 states in the continental U.S. and the remaining portion of Texas.

Clear Skies Provides Significant Benefits at a Reasonable Cost

The U.S. EPA projects that by 2020, the public health benefits alone from the Clear Skies Act would substantially outweigh the annual costs.

Clear Skies would achieve early reductions in 2010 resulting in greater health benefits.

• By 2010, an addition 34 U.S. counties with 10 million people will meet the fine particle standard and an additional 10 counties with 7 million people will meet the 8-hour ozone standard.
• By 2020, an additional 54 U.S. counties with 21 million people will meet the fine particle standard and an additional 8 counties with 4 million people will meet the 8-hour ozone standard.
• Clear Skies increases visibility in national parks and wilderness areas.
• Fine particles, ozone, mercury, acid rain, nitrogen deposition, and visibility impairment will be mitigated across the nation.

• NO_x and SO₂ requirements affect all fossil fuel-fired combustion units serving electric generators greater than 25 megawatts (MW).
• Mercury requirements affect only coal-fired units serving electric generators greater than 25 MW.

• Mandatory emission reductions will be achieved through a cap and trade program.
• Federally enforceable emissions limits (or "caps") for each pollutant will be established.
• Sources may transfer these authorized emission limits among themselves to achieve the required reductions at the lowest cost.
• Clear Skies does not replace the authority of state and local government to set source-specific emissions limits to ensure ambient air quality standards will be met.