The information presented here reflects EPA's modeling of the Clear Skies Act of 2002. The Agency is in the
process of updating this information to reflect modifications included in the Clear Skies Act of 2003. The
revised information will be posted on the Agency's Clear Skies Web site ( as soon
as possible.

                              Clear Skies Act of 2003
                                       Fact Sheet
                      Cleaner Air, Better Health, Brighter Future

            "I have sent you Clear Skies legislation that mandates a 70 percent cut in air pollution
 from power plants . . .  I urge you to pass [this measure], for the good of both our environment and
 our economy." - President George W. Bush, State of the Union, January 28, 2003

 Passing Clear Skies legislation this year would provide immediate health benefits - emissions
 trading under Clear Skies provides incentives for power plants to reduce emissions early.

 Clear Skies is a mandatory program that would dramatically reduce and cap emissions of sulfur
 dioxide (SO2), nitrogen oxides (NOX), and mercury from electric power generation.

 Clear Skies would provide health benefits faster, more certainly and at less cost to America's
 consumers than would the current Clean Air Act.
 Clear Skies would deliver unprecedented emissions reductions nationwide from the power sector
 without significantly affecting electricity prices for American consumers.  Clear Skies would
 deliver certainty and efficiency, achieving environmental protection while supporting economic

 The mandatory, market-based cap and trade program for power generators builds upon the
 Clean Air Act to facilitate achievement of critical health and environmental goals.

 Components of the Clear Skies Act of 2003

 The Clear Skies Act would:
     Establish federally enforceable emissions limits (or "caps") for all three pollutants.
     -   Clear Skies' NOx and SO2 requirements affect all fossil fuel-fired electric generators
        greater than 25 megawatts (MW) that sell electricity. Mercury requirements affect only
        the subset of these units that are coal-fired.
     Use a dynamic regulatory approach - emission caps and trading - that provides power plants
     with flexibility to reduce emissions in  the most efficient and least costly way.
     Maintain the authority of state and local government to set source-specific emissions limits for
     sources within their borders to ensure that ambient air quality standards are met.

Actual Emissions
in 2000
11.2 million tons
5.1 million tons
48 tons
Clear Skies Emissions Caps
First Phase of
4.5 million tons
in 2010*
2.1 million tons
in 2008*
26 tons
in 2010
Second Phase of
3 million tons
in 201 8*
1.7 million tons
in 201 8*
15 tons
in 201 8*
Total Reduction
at Full
 * 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.
  February 27, 2003

** The NOx 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, Kansas, Oklahoma, and some of Western Texas. Zone 1 includes the remaining 31 states in the
continental U.S. and the remaining portion of Texas.

Clear Skies Provides Dramatic Benefits for Public Health

   Clear Skies would begin delivering benefits to human health and the environment beginning
   with its passage.  Human health benefits we can quantify grow to approximately $93 billion
   per year by 2020, substantially outweighing the annual costs of $6.5 billion (based on 2002
   EPA projected that, by 2020, the public health benefits from Clear Skies would include
   12,000 avoided premature deaths.  An alternative methodology for calculating health-related
   benefits projects over 7,000 premature deaths prevented and $11  billion in health benefits -
   still far greater than the costs.
  Americans would also experience approximately 11,900 fewer visits to the hospital and
   emergency room, 370,000 fewer days with asthma attacks,  and 2 million fewer work loss
   days each year under Clear Skies by 2020.
   Under Clear Skies, more than 20 million additional  people would be breathing air that meets
   the national ozone and fine particle standards in 2020.
   -  In the remaining counties, Clear Skies would achieve additional reductions in fine
       particles that would further protect human health.

Clear Skies Makes Great Strides to Help the Environment

  The benefit of improvements in visibility in our national parks and wilderness areas would
   total $3 billion per year by 2020.
   Clear Skies would also:
   -  Reduce nitrogen loads to the Chesapeake Bay and other waters along the East  and Gulf
   -  Help lakes, streams, & forests recover from acid rain damage; and
   -  Reduce mercury in the environment.

Clear Skies Simplifies Cumbersome Requirements and Reduces Burdens on States

   Clear Skies would expand and strengthen a proven, mandatory market-based approach and
   reduce reliance on complex, less efficient requirements.
   Clear Skies would help state and local governments attain the National Ambient Air  Quality
   Standards (NAAQS) for fine particles (PM2.5) and ozone:
   -  By 2010, an estimated 34 additional counties would meet the fine particle standard, and
       an estimated 10 additional counties would meet the 8-hour ozone standard.
   -  By 2020, an estimated 54 additional counties would meet the fine particle standard, and
       an estimated 8 additional counties would meet the 8-hour ozone standard.

Clear Skies Maintains Energy Diversity and Security

   Clear Skies would enable continued reliance on abundant domestic sources of fuel.
   Clear Skies would also benefit energy consumers by allowing the trend of lower electricity
   prices to continue.
           For more information, please visit our website at
 February 27, 2003