Introduction|NNP 
As|IN recognized|VBN by|IN the|DT President|NNP 's|POS National|NNP Energy|NNP Plan|NNP (|( NEP|NNP )|) ,|, one|CD of|IN the|DT principal|JJ energy|NN challenges|NNS facing|VBG us|PRP is|VBZ increasing|VBG our|PRP$ energy|NN supplies|NNS in|IN ways|NNS that|WDT protect|VBP and|CC improve|VB the|DT environment|NN .|. 
Thus|RB ,|, the|DT President|NNP directed|VBD EPA|NNP to|TO propose|VB legislation|NN that|WDT would|MD significantly|RB reduce|VB SO|NNP 2|CD ,|, NOx|NNP ,|, and|CC mercury|NN emissions|NNS from|IN power|NN generation|NN through|IN a|DT cap|NN and|CC trade|NN program|NN .|. 
Such|JJ a|DT program|NN ,|, coupled|VBN with|IN appropriate|JJ measures|NNS to|TO address|VB local|JJ concerns|NNS ,|, would|MD provide|VB significant|JJ health|NN benefits|NNS even|RB as|IN we|PRP increase|VBP energy|NN supplies|NNS and|CC maintain|VB reasonable|JJ electricity|NN rates|NNS .|. 

Our|PRP$ work|NN on|IN this|DT issue|NN has|VBZ given|VBN us|PRP insight|NN that|IN I|PRP believe|VBP will|MD be|VB helpful|JJ to|TO you|PRP .|. 
The|DT more|JJR I|PRP learn|VBP about|IN the|DT cost|NN and|CC inefficiencies|NNS of|IN the|DT current|JJ and|CC future|JJ regulatory|JJ regime|NN to|TO which|WDT power|NN generators|NNS will|MD be|VB subjected|VBN if|IN we|PRP do|VBP not|RB have|VB new|JJ legislation|NN ,|, the|DT more|JJR I|PRP am|VBP convinced|VBN that|IN we|PRP can|MD --|: and|CC must|MD --|: develop|VB a|DT smarter|RBR approach|NN that|WDT protects|VBZ the|DT environment|NN and|CC public|JJ health|NN while|IN reducing|VBG the|DT cost|NN to|TO consumers|NNS and|CC industry|NN and|CC optimizing|VBG the|DT size|NN of|IN both|DT the|DT state|NN and|CC federal|JJ government|NN machinery|NN necessary|JJ to|TO achieve|VB that|DT protection|NN .|. 
It|PRP is|VBZ possible|JJ to|TO achieve|VB better|JJR results|NNS at|IN lower|JJR costs|NNS ,|, 
but|CC not|RB if|IN we|PRP simply|RB add|VBP yet|RB another|DT program|NN on|IN top|NN of|IN all|DT of|IN the|DT existing|VBG regulations|NNS .|. 

The|DT current|JJ Clean|NNP Air|NNP Act|NNP has|VBZ been|VBN enormously|RB successful|JJ ,|, but|CC we|PRP can|MD do|VB better|JJR .|. 
Significant|JJ cost|NN savings|NNS can|MD be|VB achieved|VBN for|IN power|NN generators|NNS and|CC consumers|NNS through|IN a|DT comprehensive|JJ legislative|JJ package|NN .|. 
I|PRP look|VBP forward|RB to|TO working|VBG with|IN you|PRP to|TO develop|VB such|PDT an|DT approach|NN to|TO reduce|VB emissions|NNS from|IN power|NN generation|NN .|. 
We|PRP applaud|VBP Senator|NNP Jeffords|NNP for|IN tackling|VBG this|DT important|JJ issue|NN and|CC for|IN recognizing|VBG that|IN a|DT cap|NN and|CC trade|NN program|NN is|VBZ the|DT best|JJS way|NN to|TO achieve|VB these|DT reductions|NNS .|. 
However|RB ,|, we|PRP have|VBP significant|JJ concerns|NNS with|IN S.|NN 556|CD as|IN drafted|VBN .|. 
Our|PRP$ analysis|NN to|TO date|NN suggests|VBZ that|IN it|PRP could|MD increase|VB consumers|NNS '|POS electricity|NN rates|NNS by|IN as|RB much|JJ as|IN 50|CD %|NN ,|, which|WDT we|PRP believe|VBP is|VBZ unacceptable|JJ .|. 
In|IN addition|NN ,|, the|DT combination|NN of|IN emission|NN reductions|NNS and|CC timing|NN is|VBZ not|RB feasible|JJ and|CC could|MD threaten|VB the|DT reliability|NN of|IN electricity|NN supply|NN .|. 
We|PRP are|VBP concerned|VBN that|IN S.|NN 556|CD 's|POS short|JJ timeframes|NNS for|IN installation|NN of|IN controls|NNS could|MD lead|VB power|NN plants|NNS to|TO be|VB taken|VBN off-line|JJ at|IN important|JJ times|NNS ,|, which|WDT could|MD lead|VB to|TO electricity|NN shortages|NNS .|. 

In|IN addition|NN ,|, there|EX are|VBP a|DT number|NN of|IN issues|NNS that|IN Congress|NNP should|MD consider|VB that|IN S.|NN 556|CD does|VBZ not|RB address|VB .|. 
As|IN drafted|VBN ,|, S.|NN 556|CD would|MD make|VB some|DT existing|VBG requirements|NNS unnecessary|JJ ,|, but|CC would|MD not|RB eliminate|VB them|PRP .|. 
Rather|RB than|IN add|VB yet|RB another|DT layer|NN of|IN environmental|JJ regulations|NNS on|IN top|NN of|IN the|DT existing|VBG ones|NNS ,|, we|PRP believe|VBP that|IN S.|NN 556|CD should|MD eliminate|VB those|DT unnecessary|JJ existing|VBG requirements|NNS .|. 
S.|NN 556|CD also|RB does|VBZ not|RB have|VB an|DT allocation|NN scheme|NN .|. 
One|CD lesson|NN we|PRP should|MD learn|VB from|IN the|DT success|NN of|IN the|DT Acid|NNP Rain|NN cap|NN and|CC trade|NN program|NN is|VBZ that|IN when|WRB certain|JJ key|JJ issues|NNS can|MD be|VB resolved|VBN through|IN clear|JJ legislation|NN ,|, we|PRP can|MD avoid|VB years|NNS of|IN litigation|NN ,|, business|NN uncertainty|NN and|CC costs|NNS ,|, and|CC delayed|VBD environmental|JJ protection|NN .|. 

Finally|RB ,|, and|CC most|RBS importantly|RB ,|, the|DT Administration|NNP strongly|RB opposes|VBZ including|VBG CO2|NNP reductions|NNS in|IN any|DT multi-pollutant|JJ bill|NN .|. 
The|DT CO2|NNP provisions|NNS in|IN S.|NN 556|CD will|MD cost|VB consumers|NNS too|RB much|JJ and|CC endanger|VB our|PRP$ energy|NN security|NN by|IN causing|VBG too|RB much|JJ electricity|NN generation|NN to|TO switch|VB from|IN coal|NN to|TO natural|JJ gas|NN .|. 
Greenhouse|NNP gas|NN emissions|NNS should|MD be|VB addressed|VBN in|IN the|DT context|NN of|IN climate|NN change|NN ,|, which|WDT is|VBZ being|VBG undertaken|VBN by|IN the|DT President|NNP 's|POS Cabinet|NNP level|NN working|VBG group|NN .|. 
For|IN all|DT of|IN these|DT reasons|NNS ,|, the|DT Administration|NNP must|MD oppose|VB S.|NN 556|CD .|. 
In|IN my|PRP$ testimony|NN today|NN I|PRP will|MD elaborate|VB further|RB on|IN these|DT key|JJ points|NNS .|. 

Background|NNP 
Over|IN the|DT last|JJ 30|CD years|NNS ,|, we|PRP have|VBP made|VBN substantial|JJ progress|NN towards|IN improved|VBN environmental|JJ quality|NN under|IN the|DT Clean|NNP Air|NNP Act|NNP .|. 
During|IN this|DT time|NN ,|, gross|JJ domestic|JJ product|NN has|VBZ increased|VBN almost|RB 160|CD %|NN .|. 
At|IN the|DT same|JJ time|NN ,|, we|PRP have|VBP reduced|VBN emissions|NNS of|IN six|CD key|JJ air|NN pollutants|NNS by|IN 29|CD %|NN ,|, while|IN coal|NN consumption|NN has|VBZ increased|VBD 77|CD %|NN and|CC energy|NN consumption|NN has|VBZ increased|VBD 45|CD %|NN .|. 
Eleven|CD years|NNS ago|RB President|NNP George|NNP H.|NN W.|NN Bush|NNP signed|VBN into|IN law|NN the|DT most|RBS far|RB reaching|VBG amendments|NNS to|TO the|DT Clean|NNP Air|NNP Act|NNP since|IN its|PRP$ enactment|NN in|IN 1970|CD .|. 
Included|VBN in|IN those|DT amendments|NNS was|VBD the|DT Acid|NNP Rain|NN cap|NN and|CC trade|NN program|NN ,|, the|DT first|JJ program|NN tailored|VBN specifically|RB to|TO the|DT utility|NN sector|NN ,|, which|WDT is|VBZ achieving|VBG significant|JJ environmental|JJ and|CC public|JJ health|NN benefits|NNS at|IN a|DT fraction|NN of|IN the|DT initial|JJ cost|NN estimates|NNS and|CC with|IN relatively|RB little|JJ government|NN bureaucracy|NN .|. 
It|PRP is|VBZ time|NN to|TO revisit|VB and|CC update|VB the|DT Clean|NNP Air|NNP Act|NNP once|RB again|RB in|IN order|NN to|TO achieve|VB the|DT additional|JJ reductions|NNS needed|VBN to|TO address|VB public|JJ health|NN and|CC environmental|JJ problems|NNS in|IN the|DT most|JJS cost|NN effective|JJ manner|NN .|. 

The|DT Acid|NNP Rain|NN Program|NN is|VBZ achieving|VBG its|PRP$ emission|NN reduction|NN goal|NN at|IN a|DT fraction|NN of|IN the|DT estimated|JJ costs|NNS because|IN it|PRP allows|VBZ and|CC encourages|VBZ innovative|JJ thinking|NN and|CC long|JJ range|NN planning|NN .1|CD 
The|DT existing|VBG program|NN establishes|VBZ a|DT cap|NN on|IN SO2|NNP emissions|NNS to|TO ensure|VB that|IN the|DT environmental|JJ goal|NN is|VBZ met|VBN ,|, and|CC employs|VBZ an|DT innovative|JJ market-based|JJ allowance|NN trading|NN program|NN to|TO achieve|VB the|DT goal|NN at|IN lowest|JJS cost|NN .|. 
Allowances|NNP are|VBP the|DT currency|NN with|IN which|WDT compliance|NN with|IN the|DT SO2|NNP emissions|NNS requirements|NNS is|VBZ achieved|VBN .|. 
Sources|NNS ,|, rather|RB than|IN government|NN ,|, decide|VBP the|DT most|RBS cost-effective|JJ way|NN to|TO use|VB available|JJ resources|NNS to|TO comply|VB .|. 
Units|NNS that|WDT reduce|VBP their|PRP$ emissions|NNS below|IN the|DT number|NN of|IN allowances|NNS they|PRP hold|VBP may|MD trade|VB allowances|NNS with|IN other|JJ units|NNS in|IN the|DT system|NN ,|, sell|VB them|PRP to|TO other|JJ sources|NNS or|CC save|VB them|PRP for|IN future|JJ use|NN .|. 
There|EX are|VBP neither|DT restrictions|NNS on|IN trading|NN nor|CC government|NN second-guessing|NN .|. 

Allowance|NNP trading|NN provides|VBZ incentives|NNS for|IN energy|NN conservation|NN and|CC technology|NN innovation|NN that|WDT can|MD both|DT lower|VB the|DT cost|NN of|IN compliance|NN and|CC yield|VB pollution|NN prevention|NN benefits|NNS .|. 
Simply|RB ,|, the|DT allowance|NN market|NN puts|VBZ a|DT price|NN or|CC value|NN on|IN each|DT ton|NN of|IN SO2|NNP not|RB emitted|VBN .|. 
The|DT association|NN of|IN a|DT monetary|JJ value|NN with|IN reduced|VBN emissions|NNS encourages|VBZ innovation|NN :|: in|IN the|DT 1990|CD 's|POS ,|, scrubber|NN costs|NNS decreased|VBN by|IN approximately|RB 40|CD %|NN and|CC scrubber|NN sulfur|NN removal|NN efficiencies|NNS improved|VBN from|IN 90|CD %|NN to|TO 95|CD %|NN ,|, and|CC experimentation|NN led|VBN to|TO the|DT blending|NN of|IN fuels|NNS to|TO lower|JJR emissions|NNS .|. 
To|TO ensure|VB that|IN the|DT cap|NN is|VBZ met|VBN and|CC to|TO provide|VB credibility|NN ,|, sources|NNS also|RB are|VBP required|VBN to|TO install|VB systems|NNS that|WDT continuously|RB monitor|VB and|CC report|VB emissions|NNS .|. 

The|DT Acid|NNP Rain|NN Program|NN has|VBZ proven|VBN to|TO be|VB an|DT excellent|JJ model|NN for|IN cap|NN and|CC trade|NN programs|NNS .|. 
Compliance|NNP with|IN the|DT program|NN has|VBZ been|VBN nearly|RB 100|CD percent|NN and|CC annual|JJ emissions|NNS of|IN SO2|NNP from|IN power|NN plants|NNS have|VBP already|RB been|VBN reduced|VBN over|IN 6|CD million|CD tons|NNS (|( about|IN 35|CD percent|NN )|) from|IN 1980|CD levels|NNS .|. 
Greater|NNP reductions|NNS earlier|RBR than|IN expected|VBN have|VBP lowered|VBN risks|NNS to|TO human|JJ health|NN and|CC provided|VBN benefits|NNS to|TO the|DT environment|NN sooner|RBR .|. 
Acid|NNP rain|NN levels|NNS were|VBD dramatically|RB reduced|VBN over|IN large|JJ areas|NNS of|IN the|DT U.S.|NNP and|CC trading|NN did|VBD not|RB result|VB in|IN geographic|JJ shifting|VBG of|IN emissions|NNS ,|, or|CC "|'' hot|JJ spots|NNS "|'' ,|, as|IN some|DT feared|VBN .|. 

Despite|IN the|DT significant|JJ progress|NN we|PRP have|VBP made|VBN under|IN the|DT Clean|NNP Air|NNP Act|NNP ,|, air|NN emissions|NNS from|IN power|NN generators|NNS are|VBP still|RB contributing|VBG to|TO serious|JJ public|JJ health|NN and|CC environmental|JJ problems|NNS .|. 
Administrator|NNP Whitman|NNP addressed|VBD these|DT concerns|NNS extensively|RB in|IN her|PRP$ testimony|NN before|IN you|PRP on|IN July|NNP 26|CD ,|, 2001|CD .|. 
Rather|RB than|IN reiterate|NN her|PRP$ testimony|NN ,|, I|PRP will|MD emphasize|VB just|RB a|DT few|JJ of|IN her|PRP$ key|JJ points|NNS .|. 
Problems|NNP associated|VBN with|IN sulfur|NN dioxide|NN (|( SO|NNP 2|CD )|) ,|, nitrogen|NN oxides|NNS (|( NOx|NNP )|) ,|, and|CC mercury|NN emissions|NNS are|VBP of|IN national|JJ and|CC international|JJ significance|NN ,|, and|CC the|DT interstate|JJ and|CC long|JJ range|NN transport|NN of|IN emissions|NNS continue|VBP to|TO play|VB significant|JJ roles|NNS in|IN the|DT nature|NN and|CC magnitude|NN of|IN the|DT problems|NNS .|. 
Emission|NNP and|CC deposition|NN of|IN SO|NNP 2|CD ,|, NOx|NNP ,|, and|CC mercury|NN and|CC their|PRP$ transformation|NN byproducts|NNS are|VBP known|VBN to|TO have|VB a|DT wide|JJ range|NN of|IN adverse|JJ effects|NNS on|IN human|JJ health|NN and|CC the|DT environment|NN ,|, including|VBG :|: 

•|NN SO|NNP 2|CD and|CC NOx|NNP emissions|NNS contribute|VBP to|TO fine|VB particles|NNS ,|, which|WDT are|VBP associated|VBN with|IN premature|JJ mortality|NN ,|, aggravated|VBD chronic|JJ bronchitis|NNS ,|, hospitalizations|NNS due|JJ to|TO cardio-respiratory|JJ symptoms|NNS ,|, emergency|NN room|NN visits|NNS due|JJ to|TO aggravated|VBN asthma|NN symptoms|NNS ,|, and|CC acute|JJ respiratory|JJ symptoms|NNS .|. 

1|CD Governor|NNP Whitman|NNP 's|POS July|NNP 26|CD ,|, 2001|CD ,|, testimony|NN before|IN this|DT Committee|NNP contains|VBZ a|DT detailed|JJ discussion|NN of|IN the|DT success|NN of|IN the|DT Acid|NNP Rain|NN cap|NN and|CC trade|NN program|NN .|. 

Fine|JJ particles|NNS formed|VBN from|IN power|NN plant|NN emissions|NNS as|RB well|RB as|IN mobile|JJ source|NN emissions|NNS are|VBP of|IN 
concern|NN .|. 
•|NN NOx|NNP emissions|NNS contribute|VBP to|TO ground-level|JJ ozone|NN ,|, which|WDT aggravates|VBZ respiratory|JJ illnesses|NNS and|CC causes|NNS lung|NN inflammation|NN ,|, particularly|RB for|IN at-risk|JJ populations|NNS such|JJ as|IN children|NNS ,|, the|DT elderly|JJ and|CC those|DT afflicted|VBN with|IN asthma|NN ,|, emphysema|NN ,|, and|CC other|JJ respiratory|JJ ailments|NNS .|. 

•|NN Mercury|NNP emissions|NNS contribute|VBP to|TO mercury|NN deposition|NN in|IN water|NN .|. 
Children|NNP born|VBN to|TO women|NNS who|WP consume|VBP large|JJ amounts|NNS of|IN mercury-contaminated|JJ fish|NN while|IN pregnant|JJ may|MD be|VB at|IN risk|NN for|IN neurodevelopmental|NN defects|NNS .|. 

•|NN SO|NNP 2|CD and|CC NOx|NNP emissions|NNS contribute|VBP to|TO atmospheric|JJ sulfate|NN and|CC nitrate|NN concentrations|NNS that|WDT cause|VBP visibility|NN impairment|NN ,|, including|VBG impairment|NN in|IN many|JJ national|JJ parks|NNS and|CC wilderness|NN areas|NNS .|. 

•|NN SO|NNP 2|CD and|CC NOx|NNP contribute|VBP to|TO acid|NN deposition|NN ,|, which|WDT damages|VBZ lakes|NNS and|CC streams|NNS ,|, adversely|RB affecting|VBG the|DT fish|NN and|CC other|JJ species|NNS that|WDT live|VBP in|IN them|PRP ,|, and|CC leaches|NNS nutrients|NNS from|IN the|DT soil|NN .|. 

•|NN NOx|NNP emissions|NNS contribute|VBP to|TO nitrogen|NN deposition|NN that|WDT may|MD lead|VB to|TO eutrophication|NN of|IN estuaries|NNS and|CC near-coastal|JJ waters|NNS and|CC can|MD damage|VB forested|JJ watersheds|NNS .|. 

EPA|NNP ,|, states|VBZ ,|, and|CC industry|NN ,|, working|VBG together|RB ,|, have|VBP made|VBN important|JJ strides|NNS in|IN addressing|VBG the|DT adverse|JJ impacts|NNS of|IN fossil|JJ fuel|NN combustion|NN by|IN the|DT electric|JJ power|NN industry|NN since|IN the|DT passage|NN of|IN the|DT Clean|NNP Air|NNP Act|NNP in|IN 1970|CD .|. 
Despite|IN significant|JJ improvements|NNS in|IN air|NN quality|NN throughout|IN the|DT country|NN however|RB ,|, emissions|NNS from|IN power|NN generation|NN continue|VB to|TO result|VB in|IN serious|JJ health|NN ,|, environmental|JJ and|CC economic|JJ impacts|NNS .|. 
In|IN 1999|CD ,|, the|DT electric|JJ power|NN industry|NN was|VBD responsible|JJ for|IN 67|CD %|NN of|IN sulfur|NN dioxide|NN emissions|NNS ,|, 25|CD %|NN of|IN nitrogen|NN oxide|NN emissions|NNS ,|, and|CC 37|CD %|NN of|IN mercury|NN emissions|NNS in|IN the|DT United|NNP States|NNPS .|. 

Business|NNP as|IN Usual|NNP 
The|DT President|NNP 's|POS flexible|JJ ,|, market-based|JJ approach|NN to|TO reducing|VBG emissions|NNS from|IN power|NN generators|NNS stands|VBZ in|IN sharp|JJ contrast|NN to|TO the|DT complex|JJ web|NN of|IN existing|VBG regulations|NNS which|WDT currently|RB confront|VBP the|DT industry|NN .|. 
Over|IN the|DT years|NNS ,|, Congress|NNP ,|, EPA|NNP and|CC the|DT States|NNPS have|VBP responded|VBN to|TO specific|JJ environmental|JJ and|CC public|JJ health|NN problems|NNS by|IN developing|VBG separate|JJ regulatory|JJ programs|NNS to|TO address|VB the|DT specific|JJ problems|NNS .|. 
Each|DT individual|JJ program|NN uses|VBZ its|PRP$ own|JJ approach|NN on|IN its|PRP$ own|JJ timeline|NN to|TO serve|VB its|PRP$ own|JJ purpose|NN .|. 
Absent|VB changes|NNS to|TO the|DT Act|NNP ,|, EPA|NNP and|CC states|NNS will|MD be|VB forced|VBN to|TO follow|VB the|DT same|JJ approach|NN in|IN future|JJ regulations|NNS .|. 
It|PRP is|VBZ time|NN to|TO consolidate|VB and|CC simplify|VB to|TO achieve|VB our|PRP$ clean|VB air|NN goals|NNS .|. 
A|DT comprehensive|JJ legislative|JJ approach|NN with|IN mandatory|JJ caps|NNS could|MD replace|VB a|DT good|JJ portion|NN of|IN the|DT current|JJ regulatory|JJ requirements|NNS with|IN a|DT system|NN that|WDT will|MD reduce|VB the|DT administrative|JJ burden|NN on|IN industry|NN and|CC governments|NNS ,|, use|NN market-based|JJ approaches|NNS to|TO lower|JJR compliance|NN costs|NNS ,|, reduce|VB consumers|NNS '|POS costs|NNS ,|, and|CC increase|VB national|JJ energy|NN security|NN by|IN providing|VBG the|DT industry|NN with|IN more|JJR certainty|NN about|IN its|PRP$ future|JJ regulatory|JJ obligations|NNS .|. 
By|IN enacting|VBG such|JJ an|DT approach|NN ,|, we|PRP can|MD achieve|VB environmental|JJ and|CC public|JJ health|NN protection|NN more|RBR effectively|RB and|CC at|IN less|JJR cost|NN .|. 
If|IN we|PRP do|VBP it|PRP the|DT President|NNP 's|POS way|NN ,|, it|PRP will|MD be|VB a|DT win-win|JJ .|. 

There|EX are|VBP many|JJ regulations|NNS in|IN place|NN that|WDT will|MD reduce|VB air|NN emissions|NNS from|IN electric|JJ power|NN generation|NN .|. 
These|DT regulations|NNS include|VBP both|DT federal|JJ and|CC State|NNP requirements|NNS that|WDT address|VBP a|DT variety|NN of|IN emissions|NNS including|VBG SO|NNP 2|CD ,|, NOx|NNP ,|, CO|NNP ,|, PM|NNP 10|CD ,|, and|CC a|DT number|NN of|IN hazardous|JJ air|NN pollutants|NNS .|. 
These|DT programs|NNS 
include|VBP the|DT National|NNP Ambient|NNP Air|NNP Quality|NNP Standards|NNP for|IN SO|NNP 2|CD ,|, particulate|NN matter|NN and|CC ozone|NN ,|, the|DT section|NN 126|CD and|CC the|DT NOx|NNP SIP|NNP Call|NNP rules|NNS ,|, the|DT Acid|NNP Rain|NN Program|NN ,|, new|JJ source|NN review|NN ,|, new|JJ source|NN performance|NN standards|NNS ,|, and|CC the|DT regional|JJ haze|NN rule|NN .|. 

But|CC the|DT regulation|NN of|IN power|NN generators|NNS does|VBZ not|RB end|VB with|IN existing|VBG regulations|NNS .|. 
EPA|NNP is|VBZ obligated|VBN by|IN a|DT settlement|NN agreement|NN to|TO issue|VB by|IN the|DT end|NN of|IN 2004|CD a|DT Maximum|NNP Achievable|NNP Control|NNP Technology|NNP (|( MACT|NNP )|) standard|JJ to|TO require|VB source-specific|JJ controls|NNS of|IN mercury|NN and|CC other|JJ hazardous|JJ air|NN pollutants|NNS from|IN electric|JJ utilities|NNS .|. 
Emissions|NNP reductions|NNS are|VBP required|VBN by|IN the|DT end|NN of|IN 2007|CD .|. 
States|NNS will|MD also|RB be|VB requiring|VBG utilities|NNS to|TO comply|VB with|IN Best|JJS Available|NNP Retrofit|NNP Technology|NNP (|( BART|NNP )|) programs|NNS (|( either|CC source-specific|JJ standards|NNS or|CC a|DT trading|NN program|NN )|) to|TO meet|VB requirements|NNS to|TO reduce|VB regional|JJ haze|NN .|. 

It|PRP is|VBZ expected|VBN that|IN the|DT existing|VBG fine|NN particle|NN and|CC ozone|NN standards|NNS now|RB in|IN place|NN will|MD also|RB result|VB in|IN further|JJ regulation|NN of|IN power|NN generators|NNS .|. 
Modeling|NNP shows|VBZ that|IN when|WRB full|JJ implementation|NN of|IN existing|VBG regulations|NNS such|JJ as|IN the|DT acid|NN rain|NN program|NN ,|, the|DT NOx|NNP SIP|NNP Call|NNP ,|, the|DT Tier|NNP II|NNP standards|NNS for|IN cars|NNS and|CC trucks|NNS ,|, the|DT heavy|JJ duty|NN diesel|NN engine|NN standards|NNS ,|, and|CC the|DT low|JJ sulfur|NN gasoline|NN and|CC diesel|NN fuel|NN rules|NNS are|VBP taken|VBN into|IN account|NN ,|, additional|JJ reductions|NNS will|MD be|VB needed|VBN to|TO bring|VB areas|NNS into|IN attainment|NN .|. 
States|NNS will|MD be|VB required|VBN to|TO develop|VB plans|NNS for|IN these|DT areas|NNS .|. 
In|IN addition|NN ,|, NOx|NNP and|CC SO|NNP 2|CD reductions|NNS are|VBP also|RB needed|VBN to|TO reduce|VB continuing|VBG damage|NN from|IN acid|NN rain|NN and|CC nitrogen|NN deposition|NN .|. 

Because|IN states|NNS and|CC EPA|NNP will|MD have|VB to|TO find|VB some|DT way|NN to|TO significantly|RB reduce|VB NOx|NNP and|CC SO|NNP 2|CD emissions|NNS ,|, it|PRP is|VBZ probable|JJ that|IN power|NN generators|NNS will|MD be|VB required|VBN to|TO reduce|VB their|PRP$ emissions|NNS significantly|RB .|. 
Power|NN generation|NN accounts|NNS for|IN a|DT significant|JJ percentage|NN of|IN these|DT emissions|NNS ,|, and|CC our|PRP$ analysis|NN shows|VBZ that|IN there|EX are|VBP significant|JJ reductions|NNS available|JJ at|IN lower|JJR cost|NN than|IN from|IN other|JJ sources|NNS .|. 
Additionally|RB ,|, states|NNS know|VBP that|IN if|IN they|PRP do|VBP not|RB get|VB the|DT reductions|NNS from|IN power|NN generators|NNS ,|, they|PRP will|MD have|VB to|TO impose|VB significant|JJ reduction|NN requirements|NNS on|IN other|JJ local|JJ industrial|JJ and|CC commercial|JJ sources|NNS or|CC impose|VB local|JJ transportation|NN control|NN measures|NNS .|. 

Under|IN current|JJ law|NN ,|, the|DT necessary|JJ reductions|NNS would|MD be|VB achieved|VBN through|IN the|DT development|NN of|IN individual|JJ state|NN plans|NNS .|. 
States|NNS will|MD not|RB just|RB control|VB their|PRP$ own|JJ sources|NNS ,|, however|RB .|. 
They|PRP will|MD be|VB reaching|VBG out|IN to|TO control|VB power|NN generators|NNS and|CC large|JJ industrial|JJ facilities|NNS in|IN other|JJ states|NNS because|IN transport|NN from|IN other|JJ states|NNS contributes|VBZ to|TO both|DT ozone|NN and|CC fine|NN particle|NN pollution|NN in|IN many|JJ areas|NNS .|. 
This|DT is|VBZ what|WP has|VBZ happened|VBN in|IN the|DT eastern|JJ part|NN of|IN the|DT country|NN when|WRB states|NNS realized|VBD that|IN emissions|NNS from|IN sources|NNS in|IN other|JJ states|NNS were|VBD significantly|RB contributing|VBG to|TO their|PRP$ 1|CD -|: hour|NN ozone|NN non-attainment|JJ problems|NNS .|. 
Under|IN section|NN 126|CD of|IN the|DT Clean|NNP Air|NNP Act|NNP ,|, a|DT state|NN can|MD petition|VB EPA|NNP and|CC request|NN that|IN EPA|NNP require|VB reductions|NNS from|IN sources|NNS outside|IN the|DT petitioning|VBG state|NN 's|POS borders|NNS .|. 
The|DT petitioning|VBG state|NN is|VBZ entitled|VBN to|TO relief|NN if|IN EPA|NNP finds|VBZ that|IN the|DT sources|NNS are|VBP significantly|RB contributing|VBG to|TO the|DT petitioning|VBG state|NN 's|POS nonattainment|NN problem|NN .|. 
EPA|NNP 's|POS requirement|NN ,|, adopted|VBN in|IN response|NN to|TO section|NN 126|CD petitions|NNS ,|, that|IN sources|NNS in|IN a|DT number|NN of|IN eastern|JJ states|NNS reduce|VBP NOx|NNP emissions|NNS was|VBD recently|RB upheld|VBN by|IN the|DT Court|NNP of|IN Appeals|NNPS for|IN the|DT District|NNP of|IN Columbia|NNP Circuit|NNP .|. 
Since|IN states|NNS now|RB know|VBP that|IN EPA|NNP has|VBZ authority|NN to|TO address|VB transport|NN pollution|NN through|IN responses|NNS to|TO 126|CD petitions|NNS or|CC by|IN issuing|VBG a|DT rule|NN like|IN the|DT NOx|NNP SIP|NNP Call|NNP ,|, we|PRP anticipate|VBP that|IN states|NNS will|MD be|VB turning|VBG to|TO these|DT types|NNS of|IN control|NN approaches|NNS early|RB in|IN the|DT SIP|NNP process|NN .|. 
Although|IN those|DT of|IN us|PRP who|WP are|VBP 
traveling|VBG that|DT path|NN with|IN the|DT current|JJ 126|CD petitions|NNS and|CC NOx|NNP SIP|NNP Call|NNP believe|VBP it|PRP will|MD eventually|RB take|VB us|PRP to|TO our|PRP$ environmental|JJ goal|NN ,|, it|PRP has|VBZ been|VBN --|: and|CC still|RB is|VBZ --|: a|DT very|RB rocky|JJ road|NN for|IN industry|NN ,|, environmentalists|NNS ,|, the|DT states|NNS ,|, EPA|NNP and|CC other|JJ stakeholders|NNS .|. 

This|DT one-at-a-time|JJ ,|, uncoordinated|JJ series|NN of|IN regulatory|JJ requirements|NNS for|IN the|DT power|NN industry|NN is|VBZ not|RB the|DT optimal|NN approach|NN for|IN the|DT environment|NN ,|, the|DT power|NN generation|NN sector|NN ,|, or|CC American|JJ consumers|NNS .|. 
With|IN most|JJS plants|NNS needing|VBG to|TO install|VB control|NN equipment|NN to|TO meet|VB these|DT requirements|NNS ,|, it|PRP is|VBZ likely|JJ that|IN this|DT approach|NN would|MD lead|VB to|TO installation|NN of|IN controls|NNS that|WDT become|VBP obsolete|JJ and|CC stranded|VBN capital|NN investments|NNS as|IN additional|JJ requirements|NNS are|VBP promulgated|VBD .|. 
Further|RB ,|, the|DT attainment|NN efforts|NNS of|IN individual|JJ States|NNPS and|CC localities|NNS not|RB only|RB impose|VB costs|NNS on|IN these|DT entities|NNS ,|, but|CC also|RB can|MD increase|VB complexity|NN for|IN companies|NNS which|WDT face|VBP differing|VBG requirements|NNS when|WRB operations|NNS cross|VBP state|NN lines|NNS .|. 
These|DT factors|NNS are|VBP exacerbated|VBN by|IN limited|JJ timeframes|NNS that|WDT may|MD constrain|VB available|JJ compliance|NN options|NNS and|CC thwart|VB long|JJ range|NN planning|NN .|. 
These|DT and|CC other|JJ inefficiencies|NNS point|VBP to|TO the|DT need|NN for|IN a|DT nationally|RB coordinated|VBN approach|NN that|WDT could|MD reduce|VB cost|NN while|IN improving|VBG environmental|JJ progress|NN and|CC accountability|NN .|. 

Changing|VBG the|DT Way|NN We|PRP Do|VBP Business|NNP :|: Certainty|NNP ,|, Flexibility|NNP ,|, Accountability|NNP and|CC Innovation|NNP 
We|PRP believe|VBP there|EX is|VBZ a|DT better|JJR way|NN ,|, one|CD that|WDT could|MD cost|VB American|JJ consumers|NNS and|CC industry|NN far|RB less|JJR than|IN under|IN current|JJ law|NN and|CC ensure|VB protection|NN of|IN the|DT air|NN we|PRP breathe|VB in|IN a|DT far|RB more|RBR certain|JJ ,|, straightforward|JJ manner|NN .|. 
I|PRP know|VBP that|IN many|JJ members|NNS of|IN this|DT Committee|NNP share|NN that|DT belief|NN and|CC are|VBP also|RB working|VBG to|TO develop|VB such|PDT an|DT approach|NN .|. 
It|PRP would|MD provide|VB power|NN generators|NNS with|IN more|JJR certainty|NN about|IN their|PRP$ regulatory|JJ future|JJ and|CC thus|RB allow|VB them|PRP to|TO make|VB wiser|JJR decisions|NNS about|IN investments|NNS in|IN new|JJ technology|NN ,|, which|WDT would|MD improve|VB energy|NN security|NN .|. 
This|DT Administration|NNP is|VBZ developing|VBG such|JJ a|DT proposal|NN .|. 
It|PRP will|MD build|VB on|IN the|DT successes|NNS of|IN the|DT Acid|NNP Rain|NN cap|NN and|CC trade|NN program|NN .|. 
It|PRP would|MD establish|VB national|JJ cap-and-trade|JJ programs|NNS for|IN NOx|NNP ,|, SO|NNP 2|CD and|CC mercury|NN emissions|NNS from|IN power|NN generators|NNS (|( with|IN appropriate|JJ measures|NNS to|TO address|VB local|JJ concerns|NNS )|) .|. 
Such|JJ an|DT approach|NN will|MD benefit|VB the|DT power|NN generation|NN industry|NN ,|, the|DT economy|NN ,|, and|CC the|DT states|NNS ,|, while|IN improving|VBG public|JJ health|NN and|CC the|DT environment|NN .|. 

Up-front|NNP knowledge|NN of|IN future|JJ requirements|NNS for|IN multiple|JJ pollutants|NNS would|MD lead|VB firms|NNS to|TO follow|VB significantly|RB different|JJ and|CC less|RBR expensive|JJ compliance|NN strategies|NNS at|IN individual|JJ plants|NNS ,|, compared|VBN with|IN compliance|NN choices|NNS which|WDT must|MD be|VB made|VBN as|IN requirements|NNS are|VBP addressed|VBN in|IN a|DT sequential|NN manner|NN under|IN the|DT current|JJ law|NN .|. 
The|DT savings|NNS come|VBP from|IN the|DT opportunity|NN to|TO make|VB cost-effective|JJ plant|NN investment|NN and|CC retirement|NN decisions|NNS with|IN full|JJ knowledge|NN of|IN upcoming|JJ SO|NNP 2|CD ,|, NOx|NNP and|CC mercury|NN requirements|NNS ,|, rather|RB than|IN investing|VBG in|IN "|'' add-on|JJ "|'' control|NN equipment|NN to|TO meet|VB the|DT requirements|NNS of|IN each|DT regulation|NN .|. 
Integration|NNP ,|, advance|NN knowledge|NN ,|, and|CC certainty|NN regarding|VBG environmental|JJ requirements|NNS will|MD have|VB even|RB greater|JJR value|NN over|IN the|DT coming|VBG decade|NN as|IN the|DT electric|JJ power|NN industry|NN undergoes|NNS further|JJ structural|JJ changes|NNS .|. 
An|DT integrated|JJ package|NN of|IN measures|NNS that|IN addresses|NNS both|DT the|DT existing|VBG regulatory|JJ requirements|NNS as|RB well|RB as|IN many|JJ future|JJ environmental|JJ needs|VBZ would|MD provide|VB the|DT greatest|JJS degree|NN of|IN certainty|NN and|CC flexibility|NN for|IN the|DT industry|NN ,|, while|IN achieving|VBG the|DT necessary|JJ emission|NN reductions|NNS at|IN lower|JJR cost|NN than|IN under|IN current|JJ law|NN .|. 

In|IN exchange|NN for|IN flexibility|NN in|IN methods|NNS to|TO control|VB emissions|NNS ,|, a|DT full|JJ accounting|NN of|IN emissions|NNS through|IN 
continuous|JJ monitoring|NN and|CC reporting|VBG is|VBZ essential|JJ ,|, as|RB well|RB as|IN significant|JJ consequences|NNS for|IN failing|VBG to|TO comply|VB .|. 
Such|JJ provisions|NNS have|VBP been|VBN critical|JJ to|TO the|DT success|NN of|IN the|DT Acid|NNP Rain|NN Program|NN ,|, encouraging|VBG individual|JJ sources|NNS to|TO find|VB the|DT most|RBS cost-effective|JJ means|NNS of|IN compliance|NN with|IN the|DT collective|JJ emission|NN reduction|NN goal|NN .|. 

Flexibility|NNP stimulates|NNS technological|JJ innovation|NN ,|, fuels|NNS economic|JJ activity|NN and|CC reduces|VBZ cost|VBN to|TO industry|NN and|CC consumers|NNS .|. 
Strategies|NNS and|CC technologies|NNS for|IN the|DT control|NN of|IN SO|NNP 2|CD ,|, NOx|NNP and|CC mercury|NN emissions|NNS exist|VBP now|RB ,|, and|CC improved|VBD methods|NNS are|VBP expected|VBN to|TO become|VB available|JJ over|IN the|DT next|JJ several|JJ years|NNS .|. 
The|DT air|NN pollution|NN control|NN and|CC monitoring|VBG technology|NN industry|NN is|VBZ expected|VBN to|TO continue|VB to|TO respond|VB with|IN cost-effective|JJ compliance|NN solutions|NNS just|RB as|IN they|PRP have|VBP done|VBN for|IN the|DT past|JJ 30|CD years|NNS .|. 
A|DT predictable|JJ demand|NN for|IN such|JJ jobs|NNS over|IN the|DT next|JJ 15|CD years|NNS is|VBZ preferable|JJ to|TO the|DT boom|NN and|CC bust|NN cycle|NN created|VBN by|IN the|DT current|JJ regulatory|JJ approach|NN .|. 

This|DT approach|NN also|RB would|MD reduce|VB states|NNS '|POS administrative|JJ burdens|NNS and|CC obligations|NNS .|. 
A|DT national|JJ cap|NN and|CC trade|NN program|NN with|IN appropriate|JJ caps|NNS for|IN NOx|NNP and|CC SO|NNP 2|CD could|MD provide|VB the|DT emission|NN reductions|NNS necessary|JJ to|TO bring|VB a|DT significant|JJ number|NN of|IN areas|NNS into|IN attainment|NN with|IN the|DT ozone|NN and|CC fine|NN particle|NN standards|NNS .|. 
Even|RB those|DT areas|NNS that|WDT would|MD not|RB be|VB brought|VBN into|IN attainment|NN by|IN these|DT caps|NNS would|MD need|VB significantly|RB fewer|JJR emission|NN reductions|NNS to|TO come|VB into|IN attainment|NN .|. 
Our|PRP$ approach|NN would|MD significantly|RB reduce|VB the|DT state|NN resources|NNS needed|VBN to|TO conduct|VB modeling|NN ,|, planning|NN and|CC regulatory|JJ activities|NNS to|TO attain|VB the|DT standards|NNS .|. 
Additionally|RB ,|, the|DT Acid|NNP Rain|NN cap|NN and|CC trade|NN program|NN is|VBZ administered|VBN with|IN a|DT relatively|RB small|JJ staff|NN relying|VBG on|IN strong|JJ ,|, state-of-the-art|JJ data|NNS tracking|VBG and|CC reporting|VBG capabilities|NNS .|. 
Thus|RB ,|, well-designed|JJ national|JJ cap|NN and|CC trade|NN programs|NNS can|MD help|VB use|VB government|NN resources|NNS and|CC taxpayer|NN dollars|NNS more|RBR efficiently|RB at|IN both|DT the|DT state|NN and|CC federal|JJ level|NN .|. 

Caps|NNP ensure|VB that|IN environmental|JJ goals|NNS are|VBP met|VBN .|. 
A|DT cap|NN that|WDT represents|VBZ significant|JJ reductions|NNS of|IN emissions|NNS protects|VBZ the|DT environment|NN by|IN reducing|VBG overall|JJ loadings|NNS .|. 
Consideration|NNP of|IN local|JJ concerns|NNS is|VBZ important|JJ in|IN conjunction|NN with|IN trading|NN provisions|NNS .|. 
Therefore|RB ,|, the|DT National|NNP Energy|NNP Plan|NNP recommended|VBD that|IN the|DT Administration|NNP 's|POS approach|NN include|VBP appropriate|JJ measures|NNS to|TO address|VB local|JJ concerns|NNS ,|, such|JJ as|IN the|DT unlikely|JJ occurrence|NN of|IN an|DT SO|NNP 2|CD "|'' hot|JJ spot|NN "|'' or|CC area|NN of|IN concentrated|VBN emissions|NNS .|. 
Significant|JJ reductions|NNS will|MD go|VB a|DT long|JJ way|NN towards|IN addressing|VBG local|JJ concerns|NNS .|. 
In|IN addition|NN ,|, EPA|NNP will|MD be|VB conducting|VBG modeling|NN that|WDT will|MD predict|VB where|WRB emissions|NNS reductions|NNS will|MD occur|VB .|. 
Under|IN the|DT Acid|NNP Rain|NN cap|NN and|CC trade|NN program|NN ,|, we|PRP have|VBP not|RB seen|VBN local|JJ hot|JJ spots|NNS because|IN the|DT highest|JJS emitters|NNS are|VBP often|RB the|DT most|RBS cost-effective|JJ to|TO control|VB and|CC therefore|RB ,|, the|DT most|RBS likely|JJ to|TO control|VB .|. 

As|IN I|PRP mentioned|VBD ,|, EPA|NNP and|CC the|DT Administration|NNP are|VBP still|RB in|IN the|DT process|NN of|IN developing|VBG our|PRP$ proposal|NN .|. 
Several|JJ guidelines|NNS are|VBP shaping|VBG our|PRP$ efforts|NNS .|. 
These|DT guidelines|NNS may|MD provide|VB a|DT valuable|JJ basis|NN as|IN you|PRP weigh|VBP the|DT proposals|NNS before|IN you|PRP .|. 
They|PRP will|MD also|RB guide|VB our|PRP$ assessment|NN of|IN other|JJ proposals|NNS ,|, including|VBG S.|NN 556|CD .|. 
These|DT principles|NNS are|VBP structured|VBN to|TO ensure|VB consistency|NN with|IN the|DT NEP|NNP objectives|NNS .|. 
The|DT NEP|NNP goals|NNS of|IN increasing|VBG energy|NN supplies|NNS ,|, accelerating|VBG the|DT protection|NN and|CC improvement|NN of|IN the|DT environment|NN ,|, and|CC increasing|VBG our|PRP$ nation|NN 's|POS energy|NN supply|NN must|MD be|VB advanced|VBN .|. 
Towards|NNP that|DT end|NN ,|, energy|NN diversity|NN ,|, the|DT preservation|NN of|IN electricity|NN generation|NN and|CC transmission|NN reliability|NN ,|, and|CC improvement|NN of|IN energy|NN 

9|CD efficiency|NN /|NN energy|NN intensity|NN of|IN the|DT electric|JJ power|NN industry|NN 

should|MD be|VB a|DT key|JJ consideration|NN .|. 
In|IN particular|JJ ,|, to|TO prevent|VB the|DT reoccurrence|NN of|IN energy|NN shortages|NNS and|CC price|NN volatility|NN ,|, a|DT diverse|JJ mix|NN of|IN fuel|NN sources|NNS should|MD be|VB maintained|VBN .|. 

Specific|JJ Comments|NNS on|IN S.|NN 556|CD 
We|PRP share|VBP the|DT desire|NN expressed|VBD in|IN S.|NN 556|CD to|TO significantly|RB reduce|VB and|CC cap|VB emissions|NNS of|IN SO|NNP 2|CD ,|, NOx|NNP and|CC mercury|NN from|IN power|NN generation|NN .|. 
We|PRP applaud|VBP your|PRP$ acknowledgment|NN of|IN market-based|JJ incentives|NNS ,|, particularly|RB cap|NN and|CC trade|NN systems|NNS ,|, as|IN a|DT powerful|JJ tool|NN in|IN environmental|JJ protection|NN .|. 
In|IN this|DT way|NN ,|, S.|NN 556|CD builds|VBZ on|IN successful|JJ elements|NNS of|IN the|DT Clean|NNP Air|NNP Act|NNP .|. 

We|PRP do|VBP ,|, however|RB ,|, oppose|VBP S.|NN 556|CD because|IN of|IN concerns|NNS with|IN the|DT bill|NN --|: both|DT with|IN some|DT provisions|NNS that|WDT are|VBP in|IN the|DT bill|NN and|CC with|IN some|DT that|WDT are|VBP missing|VBG .|. 
We|PRP believe|VBP the|DT emission|NN reductions|NNS and|CC timing|NN in|IN the|DT bill|NN will|MD be|VB too|RB costly|JJ for|IN consumers|NNS and|CC will|MD endanger|VB national|JJ energy|NN security|NN .|. 
We|PRP believe|VBP the|DT bill|NN is|VBZ missing|VBG some|DT provisions|NNS --|: it|PRP should|MD address|VB the|DT allocation|NN scheme|NN and|CC integration|NN with|IN existing|VBG programs|NNS .|. 
Finally|RB ,|, we|PRP oppose|VBP inclusion|NN of|IN CO|NNP 2|CD in|IN this|DT bill|NN .|. 

First|LS ,|, let|VBP me|PRP explain|VB some|DT of|IN our|PRP$ specific|JJ concerns|NNS about|IN the|DT SO|NNP 2|CD ,|, NOx|NNP ,|, and|CC mercury|NN provisions|NNS in|IN the|DT bill|NN .|. 
We|PRP are|VBP concerned|VBN that|IN the|DT significant|JJ emissions|NNS reductions|NNS are|VBP required|VBN too|RB quickly|RB .|. 
We|PRP do|VBP not|RB believe|VB it|PRP is|VBZ reasonable|JJ to|TO expect|VB all|DT the|DT control|NN technology|NN installations|NNS to|TO be|VB completed|VBN in|IN that|DT time|NN frame|NN without|IN very|RB high|JJ costs|NNS and|CC electricity|NN reliability|NN problems|NNS .|. 
To|TO meet|VB these|DT deadlines|NNS ,|, facilities|NNS may|MD need|VB to|TO be|VB taken|VBN off-line|JJ during|IN critical|JJ periods|NNS .|. 
Reliability|NNP problems|NNS could|MD arise|VB as|IN large|JJ amounts|NNS of|IN capacity|NN are|VBP taken|VBN out|IN of|IN service|NN for|IN extended|VBN periods|NNS of|IN time|NN to|TO install|VB the|DT control|NN equipment|NN necessary|JJ to|TO meet|VB the|DT emissions|NNS reduction|NN requirements|NNS .|. 
The|DT abbreviated|JJ time|NN frame|NN would|MD force|VB many|JJ generators|NNS to|TO make|VB these|DT retrofits|NNS simultaneously|RB .|. 
This|DT would|MD significantly|RB reduce|VB the|DT amount|NN of|IN generating|NN capacity|NN available|JJ to|TO meet|VB consumer|NN '|'' electrical|JJ needs|NNS .|. 

We|PRP have|VBP not|RB modeled|VBN the|DT specific|JJ provisions|NNS in|IN S.|NN 556|CD ,|, but|CC useful|JJ information|NN is|VBZ provided|VBN by|IN comparing|VBG the|DT analyses|NNS EPA|NNP and|CC EIA|NNP conducted|VBD to|TO respond|VB to|TO a|DT request|NN from|IN Senators|NNP Smith|NNP ,|, Voinovich|NNP and|CC Brownback|NNP with|IN the|DT analyses|NNS responding|VBG to|TO a|DT request|NN from|IN Senators|NNP Jeffords|NNP and|CC Lieberman|NNP .|. 
In|IN the|DT Smith|NNP /|NN Voinovich|NNP /|NN Brownback|NNP analysis|NN ,|, when|WRB we|PRP analyzed|VBD SO|NNP 2|CD and|CC NOx|NNP reduction|NN levels|NNS similar|JJ to|TO S.|NN 556|CD ,|, mercury|NN reduction|NN levels|NNS more|RBR modest|JJ than|IN S.|NN 556|CD and|CC no|DT CO|NNP 2|CD reductions|NNS ,|, we|PRP did|VBD not|RB find|VB significant|JJ impacts|NNS on|IN coal|NN production|NN or|CC electricity|NN prices|NNS .|. 
However|RB ,|, in|IN the|DT analysis|NN responding|VBG to|TO the|DT Jeffords|NNP /|NN Lieberman|NNP request|NN that|WDT had|VBD NOx|NNP ,|, SO|NNP 2|CD ,|, mercury|NN and|CC CO|NNP 2|CD reduction|NN levels|NNS similar|JJ to|TO S.|NN 556|CD ,|, we|PRP found|VBD significant|JJ ramifications|NNS :|: approximately|RB a|DT 20|CD -|: 30|CD %|NN decline|NN of|IN coal|NN generation|NN and|CC a|DT 30|CD -|: 50|CD %|NN increase|NN in|IN electricity|NN prices|NNS compared|VBN to|TO the|DT reference|NN case|NN (|( depending|VBG on|IN assumptions|NNS of|IN energy|NN technology|NN penetration|NN )|) .|. 

The|DT 90|CD %|NN source-specific|JJ control|NN for|IN mercury|NN is|VBZ also|RB problematic|JJ .|. 
We|PRP have|VBP not|RB seen|VBN anything|NN that|WDT demonstrates|VBZ that|IN every|DT coal-fired|JJ power|NN plant|NN would|MD be|VB able|JJ to|TO achieve|VB 90|CD %|NN source-specific|JJ controls|NNS for|IN mercury|NN by|IN 2007|CD ,|, without|IN considerable|JJ fuel|NN switching|NN ,|, which|WDT would|MD be|VB very|RB disruptive|JJ to|TO our|PRP$ economy|NN and|CC undermine|VB energy|NN security|NN .|. 
In|IN addition|NN ,|, requiring|VBG the|DT same|JJ level|NN of|IN reduction|NN at|IN a|DT 
plant|NN that|IN emits|NNS 0.1|CD pounds|NNS of|IN mercury|NN and|CC a|DT plant|NN that|IN emits|NNS 2000|CD pounds|NNS of|IN mercury|NN -|: regardless|RB of|IN cost|NN -|: is|VBZ neither|DT efficient|JJ nor|CC necessary|JJ .|. 

We|PRP are|VBP also|RB very|RB concerned|VBN about|IN the|DT "|'' outdated|JJ power|NN plant|NN "|'' provision|NN .|. 
Requiring|NNP every|DT plant|NN over|IN 30|CD years|NNS old|JJ to|TO meet|VB New|NNP Source|NNP Performance|NNP Standards|NNP and|CC New|NNP Source|NNP Review|NNP modification|NN requirements|NNS seems|VBZ unnecessary|JJ and|CC could|MD undermine|VB the|DT benefits|NNS of|IN the|DT cap|NN and|CC trade|NN approach|NN .|. 
Allowing|VBG sources|NNS to|TO make|VB reductions|NNS where|WRB it|PRP is|VBZ most|RBS economical|JJ to|TO do|VB so|RB is|VBZ one|CD of|IN the|DT reasons|NNS cap|VBP and|CC trade|NN programs|NNS should|MD be|VB less|RBR costly|JJ than|IN command-and-control|JJ programs|NNS that|WDT achieve|VBP the|DT same|JJ or|CC even|RB fewer|JJR reductions|NNS .|. 
When|WRB you|PRP have|VBP a|DT hard|JJ cap|NN ,|, as|IN you|PRP would|MD under|IN S.|NN 556|CD ,|, requiring|VBG emission|NN reductions|NNS at|IN a|DT specific|JJ source|NN does|VBZ not|RB reduce|VB the|DT overall|JJ level|NN of|IN pollution|NN ,|, it|PRP just|RB limits|VBZ industry|NN 's|POS flexibility|NN about|IN where|WRB to|TO make|VB the|DT reductions|NNS .|. 
Layering|NNP additional|JJ requirements|NNS ,|, such|JJ as|RB the|DT "|'' outdated|JJ power|NN plants|NNS "|'' provision|NN ,|, on|IN top|NN of|IN a|DT cap|NN and|CC trade|NN program|NN is|VBZ very|RB likely|JJ to|TO increase|VB costs|NNS without|IN providing|VBG significant|JJ environmental|JJ benefits|NNS .|. 

Second|JJ ,|, we|PRP have|VBP concerns|NNS about|IN what|WP is|VBZ not|RB in|IN S.|NN 556|CD .|. 
Comparing|VBG our|PRP$ experience|NN on|IN the|DT Acid|NNP Rain|NN Program|NN with|IN the|DT NOx|NNP SIP|NNP Call|NNP and|CC the|DT Section|NN 126|CD petitions|NNS demonstrates|VBZ the|DT benefit|NN of|IN having|VBG certain|JJ key|JJ issues|NNS decided|VBN by|IN Congress|NNP rather|RB than|IN left|VBD to|TO Agency|NNP rulemakings|NNS .|. 
Congressional|JJ resolution|NN of|IN key|JJ issues|NNS simplifies|NNS whatever|WDT Agency|NNP rulemaking|VBG is|VBZ needed|VBN and|CC decreases|VBZ the|DT opportunities|NNS for|IN the|DT program|NN to|TO get|VB tied|VBN up|RP in|IN protracted|JJ litigation|NN .|. 

Perhaps|RB the|DT most|RBS important|JJ program|NN element|NN not|RB addressed|VBD in|IN the|DT bill|NN is|VBZ integration|NN of|IN this|DT new|JJ program|NN with|IN the|DT existing|VBG Clean|NNP Air|NNP Act|NNP provisions|NNS .|. 
An|DT effective|JJ market-based|JJ approach|NN would|MD make|VB some|DT existing|VBG provisions|NNS of|IN the|DT Clean|NNP Air|NNP Act|NNP unnecessary|JJ .|. 
For|IN example|NN ,|, depending|VBG on|IN the|DT ultimate|JJ cap|NN levels|NNS chosen|VBN by|IN Congress|NNP ,|, this|DT type|NN of|IN legislation|NN would|MD obviate|VB the|DT need|NN for|IN Best|JJS Available|NNP Retrofit|NNP Technology|NNP requirements|NNS ,|, mercury|NN MACT|NNP ,|, and|CC new|JJ source|NN review|NN case-by-case|JJ technology|NN requirements|NNS for|IN power|NN generators|NNS .|. 

Also|RB missing|VBG from|IN S.|NN 556|CD is|VBZ the|DT scheme|NN for|IN allocating|VBG allowances|NNS .|. 
Developing|VBG an|DT allocation|NN scheme|NN requires|VBZ answering|VBG numerous|JJ questions|NNS .|. 
Should|MD the|DT allowances|NNS be|VB auctioned|VBN off|RP or|CC be|VB handed|VBN out|IN for|IN free|JJ ?|. 
If|IN they|PRP are|VBP not|RB auctioned|VBN ,|, should|MD they|PRP be|VB allocated|VBN based|VBN on|IN heat|NN input|NN or|CC electrical|JJ and|CC steam|NN output|NN ?|. 
Should|MD power|VB generators|NNS that|WDT do|VBP not|RB emit|NN air|NN pollutants|NNS (|( e.g.|NN ,|, hydropower|NN facilities|NNS )|) be|VB given|VBN allowances|NNS ?|. 
Should|MD allowance|NN allocations|NNS be|VB updated|VBN ,|, and|CC if|IN so|RB ,|, how|WRB frequently|RB ?|. 
Should|MD allocations|NNS be|VB fuel|NN neutral|JJ ?|. 
Imbedded|NNP in|IN these|DT and|CC other|JJ questions|NNS are|VBP important|JJ environmental|JJ and|CC energy|NN policy|NN choices|NNS with|IN significant|JJ equity|NN consequences|NNS .|. 
It|PRP may|MD not|RB be|VB efficient|JJ for|IN EPA|NNP to|TO make|VB these|DT choices|NNS in|IN rulemaking|VBG .|. 

There|EX are|VBP other|JJ issues|NNS as|RB well|RB that|IN this|DT Committee|NNP should|MD consider|VB ,|, such|JJ as|IN coordination|NN with|IN existing|VBG state|NN and|CC regional|JJ programs|NNS like|IN the|DT Western|NNP Regional|NNP Air|NNP Partnership|NNP and|CC the|DT NOx|NNP reduction|NN programs|NNS in|IN the|DT east|JJ .|. 
The|DT Committee|NNP may|MD also|RB wish|VB to|TO consider|VB provisions|NNS to|TO track|VB environmental|JJ progress|NN to|TO evaluate|VB the|DT efficacy|NN of|IN the|DT program|NN this|DT bill|NN would|MD establish|VB .|. 

Finally|RB ,|, the|DT Administration|NNP strongly|RB opposes|VBZ including|VBG reductions|NNS for|IN CO|NNP 2|CD in|IN S.|NN 556|CD or|CC any|DT multi-pollutant|JJ bill|NN .|. 
Pursuing|NNP sharp|JJ reductions|NNS in|IN CO|NNP 2|CD from|IN the|DT electricity|NN generating|NN sector|NN alone|RB would|MD cause|VB a|DT dramatic|JJ shift|NN from|IN coal|NN to|TO natural|JJ gas|NN and|CC thus|RB would|MD run|VB the|DT risk|NN of|IN endangering|VBG national|JJ energy|NN security|NN ,|, substantially|RB increasing|VBG energy|NN prices|NNS and|CC harming|VBG consumers|NNS .|. 

The|DT Administration|NNP will|MD not|RB support|VB any|DT legislation|NN that|WDT would|MD cause|VB a|DT significant|JJ decline|NN in|IN our|PRP$ nation|NN 's|POS ability|NN to|TO use|VB coal|NN as|IN a|DT major|JJ source|NN of|IN current|JJ and|CC future|JJ electricity|NN .|. 
At|IN the|DT same|JJ time|NN ,|, the|DT Administration|NNP will|MD not|RB support|VB any|DT legislation|NN that|WDT does|VBZ not|RB enhance|VB the|DT cleanliness|NN of|IN coal-fired|JJ electricity|NN generation|NN and|CC promote|VB a|DT future|NN for|IN clean|VB coal|NN technologies|NNS .|. 
In|IN short|JJ ,|, the|DT Administration|NNP supports|VBZ a|DT clean|JJ coal|NN policy|NN as|IN a|DT critical|JJ component|NN of|IN our|PRP$ nation|NN 's|POS energy|NN and|CC environmental|JJ policies|NNS ,|, recognizing|VBG that|IN other|JJ sources|NNS of|IN energy|NN also|RB have|VBP a|DT critical|JJ role|NN to|TO play|VB .|. 

Additionally|RB ,|, as|IN Governor|NNP Whitman|NNP said|VBD when|WRB she|PRP testified|VBD before|IN you|PRP in|IN July|NNP ,|, including|VBG CO|NNP 2|CD in|IN this|DT bill|NN will|MD slow|VB down|RB ,|, if|IN not|RB prevent|VB ,|, the|DT consensus|NN necessary|JJ for|IN passage|NN of|IN legislation|NN to|TO control|VB multiple|JJ emissions|NNS from|IN power|NN plants|NNS .|. 
Governor|NNP Whitman|NNP and|CC I|PRP both|DT believe|VBP consensus|NN on|IN the|DT appropriate|JJ levels|NNS and|CC timing|NN for|IN reductions|NNS of|IN NOx|NNP ,|, SO|NNP 2|CD and|CC mercury|NN is|VBZ achievable|JJ relatively|RB soon|RB .|. 
We|PRP should|MD not|RB delay|VB the|DT public|JJ health|NN and|CC environmental|JJ benefits|NNS from|IN reduction|NN of|IN these|DT emissions|NNS while|IN we|PRP wait|VBP for|IN consensus|NN to|TO develop|VB on|IN CO|NNP 2|CD .|. 

We|PRP agree|VBP that|DT climate|NN change|NN is|VBZ a|DT serious|JJ issue|NN we|PRP need|VBP to|TO address|VB .|. 
However|RB ,|, CO|NNP 2|CD has|VBZ never|RB been|VBN regulated|VBN as|IN a|DT pollutant|NN under|IN the|DT Clean|NNP Air|NNP Act|NNP and|CC does|VBZ not|RB pose|VB any|DT direct|JJ threat|NN to|TO human|JJ health|NN unlike|IN NOx|NNP ,|, SO|NNP 2|CD and|CC mercury|NN .|. 
The|DT current|JJ body|NN of|IN scientific|JJ knowledge|NN does|VBZ not|RB provide|VB information|NN regarding|VBG atmospheric|JJ concentrations|NNS of|IN CO|NNP 2|CD or|CC reduction|NN levels|NNS necessary|JJ to|TO prevent|VB dangerous|JJ interference|NN with|IN the|DT climate|NN system|NN .|. 

In|IN April|NNP ,|, the|DT President|NNP convened|VBD a|DT Cabinet-level|NNP policy|NN review|NN of|IN this|DT issue|NN and|CC was|VBD provided|VBN with|IN initial|JJ recommendations|NNS that|IN he|PRP accepted|VBD and|CC announced|VBD on|IN June|NNP 11|CD .|. 
In|IN that|DT regard|NN ,|, the|DT Administration|NNP is|VBZ implementing|VBG two|CD major|JJ initiatives|NNS on|IN climate|NN science|NN and|CC advanced|VBD energy|NN and|CC sequestration|NN technologies|NNS .|. 
The|DT United|NNP States|NNPS now|RB spends|VBZ $1.6|NN 
billion|CD annually|RB on|IN climate|NN science|NN to|TO reduce|VB uncertainties|NNS -|: a|DT commitment|NN unmatched|JJ by|IN any|DT other|JJ nation|NN .|. 
The|DT "|'' National|NNP Climate|NN Change|NNP Technology|NNP Initiative|NNP "|'' will|MD accelerate|VB priority|NN research|NN and|CC the|DT application|NN of|IN advanced|JJ energy|NN and|CC sequestration|NN technologies|NNS ,|, recognizing|VBG that|IN the|DT real|JJ answer|NN to|TO addressing|VBG climate|NN change|NN in|IN the|DT long|JJ term|NN lies|VBZ in|IN the|DT development|NN and|CC global|JJ introduction|NN of|IN such|JJ technologies|NNS in|IN this|DT century|NN .|. 
And|CC the|DT cabinet-level|JJ policy|NN review|NN is|VBZ ongoing|JJ .|. 
Finally|RB ,|, as|IN greenhouse|NN gas|NN emissions|NNS are|VBP projected|VBN to|TO grow|VB exponentially|RB in|IN the|DT developing|VBG world|NN in|IN the|DT next|JJ two|CD decades|NNS ,|, we|PRP must|MD evaluate|VB the|DT costs|NNS of|IN imposing|VBG domestic|JJ reductions|NNS as|IN a|DT very|RB high|JJ cost|NN against|IN potentially|RB low-cost|JJ opportunities|NNS for|IN mitigating|JJ and|CC sequestering|NN carbon|NN emissions|NNS in|IN the|DT developing|VBG world|NN .|. 

We|PRP appreciate|VBP the|DT role|NN of|IN S.|NN 556|CD in|IN generating|VBG important|JJ discussions|NNS and|CC emphasizing|VBG the|DT importance|NN of|IN a|DT new|JJ approach|NN to|TO controlling|VBG emissions|NNS in|IN the|DT power|NN sector|NN .|. 
I|PRP look|VBP forward|RB to|TO the|DT additional|JJ hearings|NNS you|PRP will|MD need|VB to|TO address|VB these|DT important|JJ issues|NNS and|CC to|TO working|VBG with|IN the|DT Committee|NNP 
to|TO develop|VB an|DT approach|NN that|IN the|DT President|NNP can|MD support|VB .|. 

The|DT history|NN of|IN Clean|NNP Air|NNP Act|NNP legislation|NN is|VBZ one|CD of|IN great|JJ accomplishments|NNS made|VBD possible|JJ by|IN bipartisan|JJ efforts|NNS .|. 
I|PRP thank|VBP you|PRP for|IN the|DT opportunity|NN to|TO work|VB with|IN you|PRP to|TO continue|VB that|IN great|JJ tradition|NN .|. 

