[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1870 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1870
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 sector concerning, and encourage voluntary
reductions in, greenhouse gas emissions.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 20 (legislative day, December 18), 2001
Mr. Corzine (for himself, Mr. Jeffords, and Mr. Lieberman) introduced
the following bill; which was read twice and referred to the Committee
on Environment and Public Works
_______________________________________________________________________
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 sector 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 and Registry Act of 2001''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(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;
(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; and
(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.
(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; and
(3) will encourage greenhouse gas emission reductions.
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) Covered entity.--The term `covered entity' means an
entity that emits more than a threshold quantity of greenhouse
gas emissions.
``(2) Direct emissions.--The term `direct emissions' means
greenhouse gas emissions from a source that is owned or
controlled by an entity.
``(3) Entity.--The term `entity' includes a firm, a
corporation, an association, a partnership, and a Federal
agency.
``(4) Greenhouse gas.--The term `greenhouse gas' means--
``(A) carbon dioxide;
``(B) methane;
``(C) nitrous oxide;
``(D) hydrofluorocarbons;
``(E) perfluorocarbons; and
``(F) sulfur hexafluoride.
``(5) Greenhouse gas emissions.--The term `greenhouse gas
emissions' means emissions of a greenhouse gas, including--
``(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--
``(i) equipment leaks such as joints,
seals, packing, and gaskets; and
``(ii) piles, pits, cooling towers, and
other similar sources; and
``(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.
``(6) Greenhouse gas emissions record.--The term
`greenhouse gas emissions record' means all of the historical
greenhouse gas emissions and project reduction data submitted
by an entity under this title, including any adjustments to
such data under section 704(c).
``(7) Greenhouse gas report.--The term `greenhouse gas
report' means an annual list of the greenhouse gas emissions of
an entity and the sources of those emissions.
``(8) Indirect emissions.--The term `indirect emissions'
means greenhouse gas emissions that are a consequence of the
activities of an entity but that are emitted from sources owned
or controlled by another entity.
``(9) National greenhouse gas emissions information
system.--The term `national greenhouse gas emissions
information system' means the information system established
under section 702(a).
``(10) National greenhouse gas emissions inventory.--The
term `national greenhouse gas emissions inventory' means the
national inventory of greenhouse gas emissions established
under section 705.
``(11) National greenhouse gas registry.--The term
`national greenhouse gas registry' means the national
greenhouse gas registry established under section 703(a).
``(12) Project reduction.--The term `project reduction'
means--
``(A) a greenhouse gas emission reduction achieved
by carrying out a greenhouse gas emission reduction
project; and
``(B) sequestration achieved by carrying out a
sequestration project.
``(13) Reporting entity.--The term `reporting entity' means
an entity that reports to the Administrator under subsection
(a) or (b) of section 704.
``(14) Sequestration.--The term `sequestration' means the
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.
``(15) Threshold quantity.--The term `threshold quantity'
means a threshold quantity for mandatory greenhouse gas
reporting established by the Administrator under section
704(a)(3).
``(16) 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 704(a).
``(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
reveal a trade secret or disclose information vital to national
security.
``(d) Relationship to Other Greenhouse Gas Registries.--To the
extent practicable, the Administrator shall ensure coordination between
the national greenhouse gas emissions information system and existing
and developing Federal, regional, and State greenhouse gas registries.
``(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. NATIONAL GREENHOUSE GAS REGISTRY.
``(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 registry to collect information reported under section 704(b).
``(b) Availability of Data to the Public.--The Administrator shall
publish all information in the national greenhouse gas registry through
the website of the Environmental Protection Agency, except in any case
in which publishing the information would reveal a trade secret or
disclose information vital to national security.
``(c) Relationship to Other Greenhouse Gas Registries.--To the
maximum extent feasible and practicable, the Administrator shall ensure
coordination between the national greenhouse gas registry and existing
and developing Federal, regional, and State greenhouse gas registries.
``(d) Integration With Other Environmental Information.--To the
maximum extent practicable, the Administrator shall integrate all
information in the national greenhouse gas registry with other
environmental information collected by the Administrator.
``SEC. 704. REPORTING.
``(a) Mandatory Reporting to National Greenhouse Gas Emissions
Information System.--
``(1) Initial reporting requirements.--
``(A) In general.--Not later than April 30, 2003,
in accordance with this paragraph and the regulations
promulgated under section 706(e)(1), each covered
entity shall submit to the Administrator, for inclusion
in the national greenhouse gas emissions information
system, the greenhouse gas report of the covered entity
with respect to--
``(i) calendar year 2002; and
``(ii) each greenhouse gas emitted by the
covered entity in an amount that exceeds the
applicable threshold quantity.
``(B) Required elements.--Each greenhouse gas
report submitted under subparagraph (A)--
``(i) shall include estimates of direct
stationary combustion source emissions;
``(ii) shall express greenhouse gas
emissions in metric tons of the carbon dioxide
equivalent of each greenhouse gas emitted;
``(iii) shall specify the sources of
greenhouse gas emissions that are included in
the greenhouse gas report;
``(iv) shall be reported on an entity-wide
basis and on a facility-wide basis; and
``(v) to the maximum extent practicable,
shall be reported electronically to the
Administrator in such form as the Administrator may require.
``(C) Method of reporting of entity-wide
emissions.--Under subparagraph (B)(iv), entity-wide
emissions shall be reported on the bases of financial
control and equity share in a manner consistent with
the financial reporting practices of the covered
entity.
``(2) Final reporting requirements.--
``(A) In general.--Not later than April 30, 2004,
and each April 30 thereafter (except as provided in
subparagraph (B)(vii)), in accordance with this
paragraph and the regulations promulgated under section
706(e)(2), each covered entity shall submit to the
Administrator the greenhouse gas report of the covered
entity with respect to--
``(i) the preceding calendar year; and
``(ii) each greenhouse gas emitted by the
covered entity in an amount that exceeds the
applicable threshold quantity.
``(B) Required elements.--Each greenhouse gas
report submitted under subparagraph (A) shall include--
``(i) the required elements specified in
paragraph (1);
``(ii) estimates of indirect emissions from
imported electricity, heat, and steam;
``(iii) estimates of process emissions
described in section 701(5)(B);
``(iv) estimates of fugitive emissions
described in section 701(5)(C);
``(v) estimates of mobile source emissions
described in section 701(5)(D), in such form as
the Administrator may require;
``(vi) in the case of a covered entity that
is a forest product entity, estimates of direct
stationary source emissions, including
emissions resulting from combustion of biomass;
``(vii) in the case of a covered entity
that owns more than 250,000 acres of
timberland, estimates, by State, of the timber
and carbon stocks of the covered entity, which
estimates shall be updated every 5 years; and
``(viii) a description of any adjustments
to the greenhouse gas emissions record of the
covered entity under subsection (c).
``(3) Establishment of threshold quantities.--For the
purpose of reporting under this subsection, the Administrator
shall establish threshold quantities of emissions for each
combination of a source and a greenhouse gas that is subject to
the mandatory reporting requirements under this subsection.
``(b) Voluntary Reporting to National Greenhouse Gas Registry.--
``(1) In general.--Not later than April 30, 2004, and each
April 30 thereafter, in accordance with this subsection and the
regulations promulgated under section 706(f), an entity may
voluntarily report to the Administrator, for inclusion in the
national greenhouse gas registry, with respect to the preceding
calendar year and any greenhouse gas emitted by the entity--
``(A) project reductions;
``(B) transfers of project reductions to and from
any other entity;
``(C) project reductions and transfers of project
reductions outside the United States;
``(D) indirect emissions that are not required to
be reported under subsection (a)(2)(B)(ii) (such as
product transport, waste disposal, product
substitution, travel, and employee commuting); and
``(E) product use phase emissions.
``(2) Types of activities.--Under paragraph (1), an entity
may report activities that reduce greenhouse gas emissions or
sequester a greenhouse gas, including--
``(A) fuel switching;
``(B) energy efficiency improvements;
``(C) use of renewable energy;
``(D) use of combined heat and power systems;
``(E) management of cropland, grassland, and
grazing land;
``(F) forestry activities that increase carbon
stocks;
``(G) carbon capture and storage;
``(H) methane recovery; and
``(I) carbon offset investments.
``(c) Adjustment Factors.--
``(1) In general.--Each reporting entity shall adjust the
greenhouse gas emissions record of the reporting entity in
accordance with this subsection.
``(2) Significant structural changes.--
``(A) In general.--A reporting entity that
experiences a significant structural change in the
organization of the reporting entity (such as a merger,
major acquisition, or divestiture) shall adjust its
greenhouse gas emissions record for preceding years so
as to maintain year-to-year comparability.
``(B) Mid-year changes.--In the case of a reporting
entity that experiences a significant structural change
described in subparagraph (A) during the middle of a
year, the greenhouse gas emissions record of the
reporting entity for preceding years shall be adjusted
on a pro-rata basis.
``(3) 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.
``(4) Organizational growth or decline.--The greenhouse gas
emissions record of a reporting entity for preceding years
shall not be adjusted for any organizational growth or decline
of the reporting entity such as--
``(A) an increase or decrease in production output;
``(B) a change in product mix;
``(C) a plant closure; and
``(D) the opening of a new plant.
``(5) 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.
``(d) 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; 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 section 706.
``(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.
``(e) 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
(d)(1)(C), that the greenhouse gas report of the reporting
entity--
``(A) has been accurately reported; and
``(B) in the case of each project reduction,
represents actual reductions in greenhouse gas
emissions or actual increases in net sequestration, as
applicable.
``(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).
``(f) Enforcement.--The Administrator may bring a civil action in
United States district court against a covered entity that fails to
comply with subsection (a), or a regulation promulgated under section
706(e), to impose a civil penalty of not more than $25,000 for each day
that the failure to comply continues.
``SEC. 705. NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY.
``Not later than April 30, 2002, and each April 30 thereafter, 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.
``SEC. 706. 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 January 31, 2003, the Administrator shall promulgate such
regulations as are necessary to establish the national greenhouse gas
emissions information system.
``(d) National Greenhouse Gas Registry.--Not later than January 31,
2004, the Administrator shall promulgate such regulations as are
necessary to establish the national greenhouse gas registry.
``(e) Mandatory Reporting Requirements.--
``(1) Initial reporting requirements.--Not later than
January 31, 2003, the Administrator shall promulgate such
regulations as are necessary to implement the initial mandatory
reporting requirements under section 704(a)(1).
``(2) Final reporting requirements.--Not later than January
31, 2004, the Administrator shall promulgate such regulations
as are necessary to implement the final mandatory reporting
requirements under section 704(a)(2).
``(f) Voluntary Reporting Provisions.--Not later than January 31,
2004, the Administrator shall promulgate such regulations and issue
such guidance as are necessary to implement the voluntary reporting
provisions under section 704(b).
``(g) Adjustment Factors.--Not later than January 31, 2004, the
Administrator shall promulgate such regulations as are necessary to
implement the adjustment factors under section 704(c).''.
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