Sec. 405. study and report concerning economic approaches to controlling air pollution
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## Sec. 405 study and report concerning economic approaches to controlling air pollution ###
(a)The Administrator, in conjunction with the Council of Economic Advisors (hereinafter in this section referred to as “the Council”), shall undertake a study and assessment of economic measures for the control of air pollution which could— ####
(1)strengthen the effectiveness of existing methods of controlling air pollution, ####
(2)provide incentives to abate air pollution to a greater degree than is required by existing provisions of the Clean Air Act (and regulations thereunder), and ####
(3)serve as the primary incentive for controlling air pollution problems not addressed by any provision of the Clean Air Act (or any regulation thereunder). ###
(b)The study of measures referred to in paragraph
(1)of subsection
(a)shall concentrate on
(1)identification of air pollution problems for which existing methods of control are not effective because of economic incentives to delay compliance and
(2)formulation of economic measures which could be taken with respect to each such air pollution problem which would provide an incentive to comply without interfering with such existing methods of control. ###
(c)The study of measures referred to in paragraph
(2)of subsection
(a)shall concentrate on
(1)identification of air pollution problems for which existing methods of control may not be sufficiently extensive to achieve all desired environmental goals and
(2)formulation of economic measures for each such air pollution problem which would provide additional incentives to reduce air pollution without— #####
(A)interfering with the effectiveness of existing methods of control, or #####
(B)creating problems similar to those which prevent alternative regulatory methods from being used to reach such environmental goals. ###
(d)The study of the measures referred to in paragraph
(3)of subsection
(a)shall concentrate on
(1)identification of air pollution problems for which no existing methods of control exist,
(2)formulation of economic measures to reduce such pollution, and
(3)comparison of the environmental and economic impacts of the economic measures with those of any alternative regulatory methods which can be identified. ###
(e)In conducting the study under this section, a preliminary screening should be made of the problems referred to in subsections (b)(1), (c)(1), and (d)(1) and economic measures should be formulated under subsections (b)(2), (c)(2), and (d)(2) in the most promising cases, giving special attention to structural and administrative problems. In formulating any such measure which provides for a charge, the appropriate level of the charge should be determined, if possible, and the environmental and economic impacts should be identified. ###
(f)Within one year after the date of enactment of this Act, the Administrator shall complete a study and report to the Congress on the advantages and disadvantages (including an analysis of the feasibility) of establishing a system of penalties for stationary sources on emissions of oxides of nitrogen and make recommendations regarding the establishment of such a system. Such study shall determine if such a system will effectively encourage the development of more effective systems and technologies for control of emissions of oxides of nitrogen for new major emitting facilities, or existing major emitting facilities, or both. In any case in which a proposed penalty system is recommended by the Administrator, the report should include— ####
(1)a recommendation respecting the appropriate period during which such system of penalties should apply, and the appropriate termination date or dates for such system, if any, taking into account— #####
(A)the time at which adequate technology may reasonably be anticipated to be available to control oxides of nitrogen for that category of facilities, #####
(B)the degree to which such technology can be expected to be used on such facilities, and #####
(C)the Administrator's authorities to require the use of such technology, and ####
(2)recommendations respecting the compilation of records by facilities subject to such penalties for purposes of determining the applicability and amount of such penalty. ###
(g)Not later than two years after the date of the enactment of this section, the Administrator and the Council shall conclude the study and assessment under this section and submit a report containing the results thereof to the President and to the Congress. Interim reports on specific pollution problems and solutions recommended shall be made available to the President and the Congress by the Administrator whenever available.