[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4611 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4611

  To amend the Clean Air Act to establish an inventory, registry, and 
information system of United States greenhouse gas emissions to inform 
  the public and private sectors concerning, and encourage voluntary 
                reductions in, greenhouse gas emissions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 2002

    Mr. Olver (for himself, Mr. Allen, Mr. Inslee, Mr. Hinchey, Mr. 
Gilchrest, Mr. George Miller of California, and Mr. Farr of California) 
 introduced the following bill; which was referred to the Committee on 
                          Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To amend the Clean Air Act to establish an inventory, registry, and 
information system of United States greenhouse gas emissions to inform 
  the public and private sectors concerning, and encourage voluntary 
                reductions in, greenhouse gas emissions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Greenhouse Gas Emissions 
Inventory Act of 2002''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Human activities have caused rapid increases in 
        atmospheric concentrations of carbon dioxide and other 
        greenhouse gases in the last century.
            (2) According to the Intergovernmental Panel on Climate 
        Change and the National Research Council--
                    (A) the Earth has warmed in the last century; and
                    (B) the majority of the observed warming is 
                attributable to human activities, including fossil 
                fuel-generated carbon dioxide emissions.
            (3) Despite the fact that many uncertainties in climate 
        science remain, the potential impacts from human-induced 
        climate change pose a substantial risk that should be managed 
        in a responsible manner.
            (4) To begin to manage climate change risks, public and 
        private entities will need a comprehensive, accurate inventory, 
        registry, and information system of the sources and quantities 
        of United States greenhouse gas emissions.
            (5) Assurances that early action to reduce greenhouse gases 
        will not be penalized in any future emission reduction program 
        would encourage more companies and other entities to make 
        investments to reduce those emissions.
            (6) The United States has ratified the UNFCCC (United 
        Nations Framework Convention on Climate Change), which states, 
        in part, ``the Parties to the Convention are to implement 
        policies with the aim of returning to their 1990 levels 
        anthropogenic emissions of carbon dioxide and other greenhouse 
        gases.
            (7) According to the Department of Energy's Energy 
        Information Administration, United States anthropogenic 
        greenhouse gas emissions increased by 13.6 percent between 1990 
        and 2000.
            (8) Global climate change poses a significant threat to 
        national security, the American economy, public health and 
        welfare, and the global environment.
    (b) Purpose.--The purpose of this Act is to establish a mandatory 
greenhouse gas inventory, registry, and information system that--
            (1) is complete, consistent, transparent, and accurate;
            (2) will create accurate data that can be used by public 
        and private entities to design efficient and effective 
        greenhouse gas emission reduction strategies;
            (3) will encourage greenhouse gas emission reductions; and
            (4) will avoid penalizing early action to reduce emissions 
        by providing assurances that any future emission reduction 
        program--
                    (A) will not assign emissions control 
                responsibility by reference to an entity's emissions 
                during a baseline period; or
                    (B) if a baseline period is used will not use a 
                period ending later than the first year for which 
                emissions reporting is required under this Act.

SEC. 3. GREENHOUSE GAS EMISSIONS.

    The Clean Air Act (42 U.S.C. 1701 et seq.) is amended by adding at 
the end the following:

                 ``TITLE VII--GREENHOUSE GAS EMISSIONS

``SEC. 701. DEFINITIONS.

    ``In this title:
            ``(1) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means, for each greenhouse gas, the amount of each 
        such greenhouse gas that makes the same contribution to global 
        warming as one metric ton of carbon dioxide.
            ``(2) Direct emissions.--The term `direct emissions' means 
        greenhouse gas emissions from sources that are owned or 
        controlled by the reporting entity
            ``(3) DOE listed product.--The term `DOE listed product 
        means a product for which the Secretary of Energy has published 
        a final rule establishing a standard for energy conservation, 
        energy efficiency, maximum energy use, thermal efficiency, fuel 
        utilization efficiency, or energy consumption, or any similar 
        standard, including standards authorized under section 325 of 
        the Energy Policy and Conservation Act of 1975 (42 U.S.C. 
        6295).
            ``(4) Emissions.--The term `emissions' includes any of the 
        following:
                    ``(A) Stationary combustion source emissions, which 
                are emitted as a result of combustion of fuels in 
                stationary equipment such as boilers, furnaces, 
                burners, turbines, heaters, incinerators, engines, 
                flares, and other similar sources.
                    ``(B) Process emissions, which consist of emissions 
                from chemical or physical processes other than 
                combustion.
                    ``(C) Fugitive emissions, which consist of 
                intentional and unintentional emissions from equipment 
                leaks such as joints, seals, packing, and gaskets, or 
                from piles, pits, cooling towers, and other similar 
                sources.
                    ``(D) Mobile source emissions, which are emitted as 
                a result of combustion of fuels in transportation 
                equipment such as automobiles, trucks, trains, 
                airplanes, and vessels.
            ``(5) Entity.--The term `entity' means a person (including 
        a firm, a corporation, an association, a partnership, a 
        Federal, state, or local governmental agency or any other 
        public or private entity) located in or operating in the United 
        States.
            ``(6) Facility.--The term `facility' means all sources 
        located on any one or more of contiguous or adjacent property 
        or properties under common ownership or control of the same 
        entity.
            ``(7) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons;
                    ``(F) sulfur hexafluoride; and
                    ``(G) any other chemical or physical substance not 
                controlled under title VI of this Act which is emitted 
                into the air and which the Administrator determines, by 
                rule, may reasonably be anticipated to cause or 
                contribute to global warming.
            ``(8) Greenhouse gas emissions.--The term `greenhouse gas 
        emissions' means emissions of a greenhouse gas from any source 
        located in the United States.
            ``(9) Greenhouse gas emissions record.--The term 
        `greenhouse gas emissions record' means all of the greenhouse 
        gas reports submitted by an entity under this title, including 
        any adjustments to such data under section 703(c).
            ``(10) Greenhouse gas report.--The term `greenhouse gas 
        report' means an annual list of--
                    ``(A) the direct greenhouse gas emissions of a 
                reporting entity,
                    ``(B) the indirect greenhouse gas emissions of a 
                reporting entity,
                    ``(C) greenhouse gas emissions from products 
                manufactured or imported by the reporting entity.
                    ``(D) emissions of greenhouse gases manufactured or 
                imported by the reporting entity, and
                    ``(E) greenhouse gas emissions from the combustion 
                of fossil fuels distributed by the reporting entity
        and the sources of those emissions.
            ``(11) Indirect emissions.--The term `indirect emissions' 
        means greenhouse gas emissions--
                    ``(A) associated with the production of 
                electricity, heat, or steam acquired or purchased by 
                the reporting entity, and
                    ``(B) that are the consequence of activities of 
                reporting entity but are emitted by sources owned or 
                controlled by an entity other than the reporting 
                entity.
            ``(12) National greenhouse gas emissions information 
        system.--The term `national greenhouse gas emissions 
        information system' means the information system established 
        under section 702(a).
            ``(13) National greenhouse gas emissions inventory.--The 
        term `national greenhouse gas emissions inventory' means the 
        national inventory of greenhouse gas emissions established 
        under section 704.
            ``(14) Project reduction.--The term `project reduction' 
        means--
                    ``(A) a greenhouse gas emission reduction achieved 
                by carrying out a greenhouse gas emission reduction 
                project in the United States, provided that the 
                emissions reduction did not occur at a source included 
                in the greenhouse gas report of any reporting entity; 
                and
                    ``(B) sequestration achieved by carrying out a 
                sequestration project in the United States, provided 
                that the sequestration did not occur at a site included 
                in the greenhouse gas report of any reporting entity.
            ``(15) Reporting entity.--The term `reporting entity' means 
        an entity that reports to the Administrator under section 703.
            ``(16) Sequestration.--The term `sequestration' means the 
        capture, long-term separation, isolation, or removal of 
        greenhouse gases from the atmosphere, including through a 
        biological or geologic method such as reforestation or an 
        underground reservoir.
            ``(17) Source.--The term `source' means any building, 
        structure, installation, unit, point, operation, vehicle, land 
        area, or other item that emits or may emit a greenhouse gas.
            ``(18) Verification.--The term `verification' means the 
        objective and independent assessment of whether a greenhouse 
        gas report submitted by a reporting entity accurately reflects 
        the greenhouse gas impact of the reporting entity.

``SEC. 702. NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION SYSTEM.

    ``(a) Establishment.--In consultation with the Secretary of 
Commerce, the Secretary of Agriculture, the Secretary of Energy, 
States, the private sector, and nongovernmental organizations concerned 
with establishing standards for reporting of greenhouse gas emissions, 
the Administrator shall establish and administer a national greenhouse 
gas emissions information system to collect information reported under 
section 703(a), including a national greenhouse gas reduction registry 
to collect information reported under section 703(a)(7).
    ``(b) Submission to Congress of Draft Design.--Not later than 180 
days after the date of enactment of this title, the Administrator shall 
submit to Congress a draft design of the national greenhouse gas 
emissions information system.
    ``(c) Availability of Data to the Public.--The Administrator shall 
publish all information in the national greenhouse gas emissions 
information system through the website of the Environmental Protection 
Agency, except in any case in which publishing the information would 
disclose information vital to national security. Emission data, 
including data relating to project reductions, shall have the same 
meaning as in section 114 of title I of this Act and regulations 
promulgated thereunder prior to the date of enactment of this title.
    ``(d) Relationship to Other Greenhouse Gas Databases.--To the 
extent practicable, the Administrator shall ensure coordination between 
the national greenhouse gas emissions information system and existing 
and developing Federal and State greenhouse gas databases and 
registries. Nothing in this title shall alter any existing requirements 
for reporting of greenhouse gas emissions data or other data relevant 
to calculating such emissions.
    ``(e) Integration With Other Environmental Information.--To the 
extent practicable, the Administrator shall integrate information in 
the national greenhouse gas emissions information system with other 
environmental information managed by the Administrator.

``SEC. 703. REPORTING.

    ``(a) Mandatory Reporting of Greenhouse Gas Emissions.--
            ``(1) In general.--Not later than April 30 of each year 
        after the date of enactment of this title, in accordance with 
        this paragraph and the regulations promulgated under section 
        705, each entity that exceeds the threshold for reporting in 
        paragraph (2) shall submit to the Administrator, for inclusion 
        in the national greenhouse gas emissions information system, 
        the greenhouse gas report of the entity with respect to the 
        preceding calendar year. Once an entity has exceeded the 
        threshold for reporting, it shall continue to submit reports 
        for subsequent years.
            ``(2) Threshold for reporting.--(A) An entity shall submit 
        a report under paragraph (1) for greenhouse gas emissions if in 
        the relevant calendar year--
                    ``(i) one of the following exceeds 10,000 metric 
                tons of carbon dioxide equivalent:
                            ``(I) The total direct emissions of the 
                        entity.
                            ``(II) The total indirect emissions of the 
                        reporting entity.
                            ``(III) The total emissions from the 
                        combustion of fossil fuels distributed by the 
                        entity.
                            ``(IV) The total quantity of greenhouse 
                        gases manufactured or imported by the reporting 
                        entity, or
                    ``(ii) the entity either--
                            ``(I) is a major industrial manufacturer or 
                        importer of motor vehicles, or
                            ``(II) manufactures or imports DOE listed 
                        products.
            ``(B) Farms shall not be required to submit reports under 
        this section.
            ``(C) An entity that owns more than 250,000 acres of 
        timberland shall report on the carbon stock of such land as 
        provided in paragraph (4)(E) of this subsection.
The Administrator may adjust the 10,000 metric ton threshold set forth 
in this paragraph to a higher threshold if the Administrator determines 
that the reports under this paragraph at such higher threshold will 
include at least 90 percent of greenhouse gas emissions.
            ``(3) Required elements.--
                    ``(A) Separate reporting.--Each greenhouse gas 
                report submitted under paragraph (1) shall include and 
                separately quantify each of the following:
                            ``(i) All direct emissions of greenhouse 
                        gases.
                            ``(ii) All indirect emissions of greenhouse 
                        gases.
                            ``(iii) All emissions of greenhouse gases 
                        from motor vehicles manufactured or imported by 
                        the entity.
                            ``(iv) All emissions of greenhouse gases 
                        from DOE listed products manufactured or 
                        imported by the reporting entity.
                            ``(v) All emissions of greenhouse gases 
                        from the combustion of fossil fuels distributed 
                        by the entity.
                            ``(vi) All emissions of greenhouse gases 
                        manufactured or imported by the reporting 
                        entity.
                    ``(B) Other reporting requirements.--Each 
                greenhouse gas report under paragraph (1)--
                            ``(i) shall express greenhouse gas 
                        emissions in metric tons of each such 
                        greenhouse gas and in metric tons of the carbon 
                        dioxide equivalent of each greenhouse gas;
                            ``(ii) shall be reported on an entity wide 
                        basis and on a facility wide basis;
                            ``(iii) shall specify the sources of direct 
                        emissions at each facility included in the 
                        greenhouse gas report;
                            ``(iv) in the case of a reporting entity 
                        that owns more than 250,000 acres of 
                        timberland, shall include estimates, by State, 
                        of the timber and carbon stocks of such land, 
                        which estimates shall be updated at least every 
                        5 years; and.
                            ``(v) to the maximum extent practicable, 
                        shall be reported electronically to the 
                        Administrator in such form as the Administrator 
                        may require.
            ``(4) Method of reporting of entity wide emissions, 
        production, or importation.--Under paragraph (1)(C), entity 
        wide emissions, production, or importation of greenhouse gases 
        shall be reported on the bases of financial control and equity 
        share in a manner consistent with the financial reporting 
        practices of the entity. If ownership or control of a  facility 
(or portion thereof) whose emissions were included in a prior report 
under this section is transferred to another entity, then any entity 
subsequently having ownership or control of such facility shall submit 
a greenhouse gas report regarding the transferred facility, even if 
such entity does not otherwise exceed the threshold for reporting under 
paragraph (2).
            ``(5) Voluntary reporting of earlier emissions.--Any entity 
        may submit to the Administrator, for inclusion in the national 
        greenhouse gas emissions information system, a greenhouse gas 
        report for the entity with respect to one or more years prior 
        to 2002, provided that such report substantially meets the data 
        quality requirements for reports required for 2002 and 
        thereafter.
            ``(6) Voluntary reporting by other entities.--Any entity 
        that does not exceed the threshold for reporting under 
        paragraph (2) may elect to submit a greenhouse gas report under 
        paragraph (1). Such an entity shall be a reporting entity from 
        that time forward.
            ``(7) Voluntary reporting of project reductions.--Any 
        entity may voluntarily submit to the Administrator, for 
        inclusion in a registry maintained within the national 
        greenhouse gas information system, a report with respect to the 
        preceding calendar year on any project reductions, provided 
        that the emissions or sequestrations associated with such 
        project reductions are not included in the greenhouse gas 
        emissions report submitted to the Administrator by any 
        reporting entity. The reporting entity shall demonstrate that 
        the project and its reported reductions or sequestrations would 
        not have occurred anyway in the business-as-usual case, and 
        shall account for any changes in emissions outside boundaries 
        of the project. Each report shall provide such further 
        information on the emission reduction or carbon sequestration 
        project as required by regulations promulgated by the 
        Administrator under section 705(e). If the project reductions 
        are associated with a farm or forestland owned or operated by 
        an entity, the entity shall account for all emissions and 
        reductions on all farmland or forestland under ownership or 
        control of the entity.
            ``(8) Voluntary reporting of other indirect product 
        emissions.--Any entity may voluntarily submit to the 
        Administrator, for inclusion in a registry maintained within 
        the national greenhouse gas information system, a report with 
        respect to any calendar year on indirect emissions from any 
        product manufactured by that entity for which a report is not 
        required under clause (iii) of subsection (a)(3)(A).
    ``(b) Adjustment Factors.--
            ``(1) Calculation changes and errors.--The greenhouse gas 
        emissions record of a reporting entity for preceding years 
        shall be adjusted for--
                    ``(A) changes in calculation methodologies; or
                    ``(B) errors that significantly affect the quantity 
                of greenhouse gases in the greenhouse gas emissions 
                record.
            ``(2) Explanations of adjustments.--A reporting entity 
        shall explain, in a statement included in the greenhouse gas 
        report of the reporting entity for a year--
                    ``(A) any significant adjustment in the greenhouse 
                gas emissions record of the reporting entity; and
                    ``(B) any significant change between the greenhouse 
                gas emissions record for the preceding year and the 
                greenhouse gas emissions reported for the current year.
    ``(c) Quantification and Verification Protocols and Tools.--
            ``(1) In general.--The Administrator, and the Secretary of 
        Commerce, the Secretary of Agriculture, and the Secretary of 
        Energy shall jointly work with the States, the private sector, 
        and nongovernmental organizations to develop--
                    ``(A) protocols for quantification and verification 
                of greenhouse gas emissions;
                    ``(B) electronic methods for quantification and 
                reporting of greenhouse gas emissions, including a 
                mechanism by which a reporting entity may, at its 
                option, electronically transfer information from its 
                data system to the national greenhouse gas emissions 
                information system; and
                    ``(C) greenhouse gas accounting and reporting 
                standards.
            ``(2) Best practices.--The protocols and methods developed 
        under paragraph (1) shall conform, to the maximum extent 
        practicable, to the best practice protocols that have the 
        greatest support of experts in the field.
            ``(3) Incorporation into regulations.--The Administrator 
        shall incorporate the protocols  developed under paragraph 
(1)(A) into the regulations promulgated under subsections (c), (d), and 
(e) of section 705.
            ``(4) Outreach program.--The Administrator, the Secretary 
        of Commerce, the Secretary of Agriculture, and the Secretary of 
        Energy shall jointly conduct an outreach program to provide 
        information to all reporting entities and the public on the 
        protocols and methods developed under this subsection.
    ``(d) Verification.--
            ``(1) Provision of information by reporting entities.--Each 
        reporting entity shall provide information sufficient for the 
        Administrator to verify, in accordance with greenhouse gas 
        accounting and reporting standards developed under subsection 
        (c)(1)(C), that the greenhouse gas report of the reporting 
        entity has been accurately reported.
            ``(2) Independent third-party verification.--A reporting 
        entity may--
                    ``(A) obtain independent third-party verification; 
                and
                    ``(B) present the results of the third-party 
                verification to the Administrator for consideration by 
                the Administrator in carrying out paragraph (1).
            ``(3) Certification of reports.--Each report submitted by a 
        reporting entity shall include an appropriate certification, 
        signed by a senior official with management responsibility for 
        the person or persons completing the report, regarding the 
        accuracy and completeness of the report.
    ``(e) Enforcement.--The Administrator may bring a civil action in 
United States district court against an entity that fails to comply 
with a requirement of this section, or a regulation promulgated under 
section 705, to impose a civil penalty of not more than $25,000 for 
each day that the failure to comply continues.

``SEC. 704. NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY.

    ``(a) In General.--Not later than April 30 of each year after the 
date of enactment of this title, the Administrator shall publish a 
national greenhouse gas emissions inventory that includes--
            ``(1) comprehensive estimates of the quantity of United 
        States greenhouse gas emissions for the second preceding 
        calendar year, including--
                    ``(A) for each greenhouse gas, an estimate of the 
                quantity of emissions contributed by each key source 
                category;
                    ``(B) a detailed analysis of trends in the 
                quantity, composition, and sources of United States 
                greenhouse gas emissions; and
                    ``(C) a detailed explanation of the methodology 
                used in developing the national greenhouse gas 
                emissions inventory; and
            ``(2) a detailed analysis of the information reported to 
        the national greenhouse gas emissions information system and 
        the national greenhouse gas registry.
If total direct emissions reported in a given year are reduced in 
comparison with the amount reported in the preceding year, the analysis 
referred to in paragraph (2) shall include a detailed assessment of 
what proportion of such reduction is a consequence of activities by 
entities that reported reductions in indirect emissions.
    (b) Energy Star Comparisons.--The Administrator shall include in 
the analysis under subsection (a)(2) a comparison of the indirect 
emissions associated with each manufactured product for which a report 
is required under clause (iii) of section 703(a)(3)(A) and the indirect 
emissions of comparable products entitled to the Administrator's Energy 
Star label.

``SEC. 705. REGULATIONS.

    ``(a) In General.--The Administrator may promulgate such 
regulations as are necessary to carry out this title.
    ``(b) Best Practices.--In developing regulations under this 
section, the Administrator shall seek to leverage leading protocols for 
the measurement, accounting, reporting, and verification of greenhouse 
gas emissions.
    ``(c) National Greenhouse Gas Emissions Information System.--Not 
later than one year after the date of enactment of this title, the 
Administrator shall promulgate such regulations as are necessary to 
establish the national greenhouse gas emissions information system.
    ``(d) Mandatory Reporting Requirements.--Not later than one year 
after the date of enactment of this title, the Administrator shall 
promulgate such regulations as are necessary to implement the mandatory 
reporting requirements under section 703(a)(1).
    ``(e) Voluntary Reporting Provisions.--Not later than two years 
after the date of enactment of this title, the Administrator shall 
promulgate such regulations and issue such guidance as are necessary to 
implement the voluntary reporting provisions under paragraphs (5) 
through (7) of section 703(a).
    ``(f) Adjustment Factors.--Not later than two years after the date 
of enactment of this title, the Administrator shall promulgate such 
regulations as are necessary to implement the adjustment factors under 
section 703(b).''.
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