[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5642 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5642

      To reduce greenhouse gas emissions and protect the climate.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2006

 Mr. Waxman (for himself, Mr. George Miller of California, Mr. Markey, 
    Mr. Pallone, Mr. Sanders, Ms. Eshoo, Mr. Hinchey, Mr. Farr, Mr. 
 Doggett, Mr. Blumenauer, Mrs. Capps, Mr. Inslee, Ms. Schakowsky, Ms. 
  Solis, and Mr. Van Hollen) introduced the following bill; which was 
 referred to the Committee on Energy and Commerce, and in addition to 
     the Committee on International Relations, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
      To reduce greenhouse gas emissions and protect the climate.

    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 ``Safe Climate Act of 2006''.

SEC. 2. FINDING; SENSE OF CONGRESS.

    (a) Findings.--The Congress finds as follows:
            (1) The United States is a party to the 1992 United Nations 
        Framework Convention on Climate Change, which has the objective 
        of stabilizing greenhouse gas concentrations in the atmosphere 
        at a level that would prevent ``dangerous anthropogenic 
        interference'' with the climate system.
            (2) To achieve this objective, the increase in global mean 
        surface temperature should not exceed 2C (3.6F) above pre-
        industrial temperature.
            (3) The risks associated with a temperature increase above 
        2C (3.6F) are grave, including the disintegration of the 
        Greenland ice sheet, which, if it were to melt completely, 
        would raise global average sea level by approximately 23 feet, 
        devastating many of the world's coastal areas and population 
        centers.
            (4) The Intergovernmental Panel on Climate Change projects 
        that temperatures will rise between 1.4C to 5.8C (2.5F to 
        10.4F) by the end of the century, under a range of expected 
        emissions trends.
            (5) Serious global warming impacts have already been 
        observed in the United States and worldwide, including 
        increases in heat waves and other extreme weather events, rise 
        in sea level, retreat of glaciers and polar ice, decline in 
        mountain snowpack, increased drought and wildfires, stronger 
        hurricanes, ocean acidification, extensive coral bleaching, 
        migrations and shifts in the yearly cycles of plants and 
        animals, and the spread of infectious diseases.
            (6) Scientists project that under a mid-range estimate of 
        global warming, by 2050, roughly 25 percent of animal and plant 
        species will be committed to extinction.
            (7) Decisive action is needed to minimize the many dangers 
        posed by global warming.
            (8) The timing of such action is critical, given that 
        greenhouse gases can persist in the atmosphere for more than a 
        century.
            (9) Reductions in emissions from today's levels must begin 
        within a decade to preserve the ability to stabilize 
        atmospheric greenhouse gas concentrations at levels likely to 
        protect against a temperature rise above 2C (3.6F).
            (10) With only 5 percent of the world population, the 
        United States emits approximately 20 percent of the world's 
        total greenhouse gas emissions and must be a leader in 
        addressing global warming.
            (11) Existing energy efficiency and clean, renewable energy 
        technologies can reduce global warming pollution, while saving 
        consumers money, reducing our dependence on oil, enhancing 
        national security, cleaning the air, and protecting pristine 
        places from drilling and mining.
    (b) Sense of Congress.--It is the sense of the Congress that the 
United States should participate in negotiations under the 1992 United 
Nations Framework Convention on Climate Change with the objective of 
securing United States participation in agreements that--
            (1) establish mitigation commitments by all countries that 
        are major emitters of greenhouse gases, consistent with the 
        principle of common but differentiated responsibilities;
            (2) achieve reductions in global greenhouse gas emissions 
        at a pace and levels sufficient to avoid dangerous interference 
        with the earth's climate; and
            (3) advance and protect the economic and national security 
        interests of the United States.

SEC. 3. AMENDMENTS TO THE CLEAN AIR ACT.

    The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at 
the end the following:

                 ``TITLE VII--GREENHOUSE GAS EMISSIONS

``SEC. 701. EMISSION REDUCTION TARGETS.

    ``Not later than 2 years after the date of enactment of this 
section, the Administrator shall promulgate annual emission reduction 
targets for each calendar year beginning in 2010 and ending in 2050, as 
follows:
            ``(1) In 2010, the quantity of United States greenhouse gas 
        emissions shall not exceed the quantity of United States 
        greenhouse gases projected to be emitted in 2009.
            ``(2) Beginning in 2011, the quantity of United States 
        greenhouse gas emissions shall be reduced by approximately 2 
        percent each year, such that the quantity of such emissions in 
        2020 does not exceed the quantity of United States greenhouse 
        gases emitted in 1990.
            ``(3) Beginning in 2021, the quantity of United States 
        greenhouse gas emissions shall be reduced by approximately 5 
        percent each year, such that the quantity of such emissions in 
        2050 does not exceed 20 percent of the quantity of United 
        States greenhouse gases emitted in 1990.

``SEC. 702. NATIONAL ACADEMIES REVIEW.

    ``Not later than 5 years after the date of the enactment of this 
section, and every 5 years thereafter, the National Academies, acting 
through the National Academy of Sciences and the National Research 
Council, shall submit a report to the Administrator and the Congress on 
the prospects for avoiding dangerous anthropogenic interference with 
the climate system and the progress made to date. Such report shall--
            ``(1) evaluate whether the emission reduction targets 
        promulgated pursuant to section 701 are likely to be sufficient 
        to avoid dangerous climate change, taking into account the 
        actions of other nations;
            ``(2) include an assessment of whether each of the 
        following events, and any other indicator of significant global 
        warming determined by the National Academies, has occurred or 
        is likely to occur--
                    ``(A) atmospheric greenhouse gas concentrations of 
                greater than 450 carbon dioxide-equivalent ppm;
                    ``(B) global mean surface temperature increase of 
                greater than 2C (3.6F) from pre-industrial levels;
                    ``(C) substantial slowing of the Atlantic 
                thermohaline circulation;
                    ``(D) sea level rise of more than 8 inches;
                    ``(E) ice-free Arctic Ocean in the summer;
                    ``(F) decrease in the area of permafrost to below 
                50 percent of such area in 2000; and
                    ``(G) loss of over 40 percent of the world's 
                coverage of coral reefs, due to increased ocean 
                temperature or acidity; and
            ``(3) if the National Academies concludes that emission 
        reduction targets promulgated pursuant to section 701 are not 
        likely to be sufficient to avoid dangerous climate change, or 
        that any of the events specified in paragraph (2) has occurred 
        or is likely to occur--
                    ``(A) identify the needed amount of further 
                reductions in atmospheric greenhouse gas 
                concentrations; and
                    ``(B) recommend additional United States and 
                international actions to further reduce atmospheric 
                greenhouse gas concentrations.

``SEC. 703. REGULATIONS.

    ``(a) In General.--The Administrator shall promulgate not later 
than 2 years after the date of the enactment of this section, and may 
periodically revise, regulations requiring the reduction of United 
States greenhouse gas emissions to meet the emission reduction targets 
promulgated pursuant to section 701.
    ``(b) Rulemaking on Recommendations of National Academies.--If the 
National Academies submits a recommendation under section 702(3)(B) for 
a regulatory action by a Federal department or agency, and such 
regulatory action is within the authority of such department or agency 
(under law other than this subsection), the head of such department or 
agency shall, not later than 2 years after the submission of such 
recommendation, finalize a rulemaking--
            ``(1) to carry out such regulatory action; or
            ``(2) to explain the reasons for declining to act.

``SEC. 704. MARKET-BASED CAP ON EMISSIONS.

    ``(a) In General.--The regulations promulgated under section 703(a) 
shall--
            ``(1) impose a cap on the greenhouse gas emissions of 
        sources and sectors described in subsection (b)(1); and
            ``(2) allow emissions trading among covered entities.
    ``(b) Scope.--The regulations promulgated under section 703(a) 
shall--
            ``(1) apply the cap required by subsection (a)(1) to the 
        sources or sectors of the United States economy with--
                    ``(A) the largest emissions;
                    ``(B) the most cost-effective opportunities to 
                reduce emissions; or
                    ``(C) other characteristics that the Administrator 
                determines make the source or sector appropriate to 
                include; and
            ``(2) cover a sufficient proportion of total United States 
        greenhouse gas emissions, such that, in combination with other 
        measures adopted under this title and under the Safe Climate 
        Act of 2006 and the amendments made by such Act, such 
        regulations will ensure that total United States greenhouse gas 
        emissions will not exceed the emission reduction targets 
        promulgated pursuant to section 701.
    ``(c) Allowances.--
            ``(1) In general.--The regulations promulgated under 
        section 703(a) shall provide for the Administrator to issue 
        each year a quantity of greenhouse gas emissions allowances 
        equivalent to the emissions allowed under the cap required by 
        subsection (a)(1) for such year. Each such allowance shall 
        authorize the emission of one carbon dioxide equivalent. Such 
        an allowance does not constitute a property right, and nothing 
        in any provision of law shall be construed to limit the 
        authority of the United States to terminate or limit such an 
        allowance.
            ``(2) Trading.--Allowances issued under this section may be 
        held and traded by any person.
            ``(3) Flexibility.--Allowances issued under this section 
        may be used in the year of issuance or may be banked for use in 
        a year subsequent to the year of issuance.
    ``(d) Distribution of Allowances.--
            ``(1) Submission of plan by president.--
                    ``(A) In general.--Within one year of the enactment 
                of this title, the President, in consultation with the 
                Administrator and other appropriate department and 
                agency heads, shall develop and submit to the Congress 
                a plan--
                            ``(i) to distribute the allowances issued 
                        under this section through auctions, and, at 
                        the discretion of the President and subject to 
                        subparagraph (B)(iii), through allocations 
                        without charge to entities not covered by the 
                        cap or covered entities;
                            ``(ii) to deposit the proceeds of such 
                        auctions in the Climate Reinvestment Fund 
                        established by subsection (h); and
                            ``(iii) to ensure that such allowances are 
                        distributed, and such proceeds are used, in a 
                        manner consistent with the goals described in 
                        subsection (e).
                    ``(B) Contents.--The plan submitted under 
                subparagraph (A) shall--
                            ``(i) identify the department or agency 
                        responsible for implementing each action 
                        required;
                            ``(ii) ensure that allowances are 
                        distributed not later than January 1, 2010, for 
                        calendar year 2010; and
                            ``(iii) in no case allow any distribution 
                        of allowances without charge to result in the 
                        creation of windfall profits for covered 
                        entities.
            ``(2) Plan implementation.--The Administrator and the head 
        of each department or agency identified in paragraph (1)(B)(i) 
        shall give the Congress a period of one year to review and act 
        upon the plan submitted under paragraph (1). If during such 
        period no statute is enacted for the express purpose of 
        codifying such plan or an alternative to such plan, the 
        Administrator and the head of each such department or agency 
        shall implement the actions identified in the plan.
    ``(e) Goals.--The goals described in this subsection are the 
following:
            ``(1) Maximizing public benefit and promoting economic 
        growth.
            ``(2) Mitigating the effect of any energy cost increases to 
        consumers, particularly low-income consumers.
            ``(3) Providing equitable transition assistance to any 
        workers and regions affected by a transition away from high 
        carbon-emitting energy sources.
            ``(4) Encouraging research, development, and commercial 
        deployment of innovative technologies for avoiding, reducing, 
        or sequestering greenhouse gas emissions.
            ``(5) Encouraging reduced carbon emissions from, and 
        enhanced sequestration of, carbon in the forest and 
        agricultural sectors.
            ``(6) Recognizing and rewarding early reductions of 
        greenhouse gases.
            ``(7) Supporting activities, including providing support 
        for State activities, to protect against and mitigate the 
        impacts of climate change, including depletion of snowpack and 
        water supplies, droughts, wildfires, enhanced coastal erosion, 
        sea level rise, higher storm surges, more intense precipitation 
        events and hurricanes, spread of disease, damage to fish and 
        wildlife habitat, commercial harms (such as damage to the maple 
        syrup and fishing industries), and agricultural and forestry 
        losses due to drought, disease, and insect infestations.
    ``(f) Monitoring.--The Administrator shall ensure that greenhouse 
gas emissions and the use of allowances issued under this section are 
accurately tracked, reported, and verified, to ensure that the cap-and-
trade system established pursuant to this section is robust and 
enforceable.
    ``(g) Enforcement.--
            ``(1) In general.--In the case of excess greenhouse gas 
        emissions under this section by an entity during any calendar 
        year, the regulations promulgated under section 703(a) shall 
        require the entity--
                    ``(A) to submit allowances for such emissions 
                during the following calendar year; and
                    ``(B) to pay a civil penalty in an amount 
                determined under paragraph (2).
            ``(2) Amount of civil penalty.--For each quantity of excess 
        greenhouse gas emissions constituting one carbon dioxide 
        equivalent, the amount of a civil penalty under this subsection 
        shall be twice the market price for an allowance at the end of 
        the calendar year in which the excess emissions occurred. The 
        Administrator shall establish the method of determining such 
        market price.
            ``(3) No demand required.--A civil penalty under this 
        subsection shall be due and payable to the Administrator 
        without demand.
    ``(h) Climate Reinvestment Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund to be known as the `Climate 
        Reinvestment Fund' (in this subsection referred to as the 
        `Fund'). The Fund shall consist of such amounts as may be 
        appropriated pursuant to paragraph (2) to the Fund. Such 
        amounts shall remain available until expended.
            ``(2) Authorization of appropriations.--For each fiscal 
        year, there is authorized to be appropriated to the Fund an 
        amount equal to the sum of--
                    ``(A) the amount collected through auctions of 
                allowances issued under this section; and
                    ``(B) the amount of civil penalties assessed under 
                subsection (g).
            ``(3) Use of funds.--Amounts in the Fund and available 
        pursuant to an appropriations Act shall be expended by the 
        President to further the goals described in subsection (e).
            ``(4) Investment.--The Secretary of the Treasury shall 
        invest such amounts of the Fund as such Secretary determines 
        are not required to meet current withdrawals from the Fund.
    ``(i) Definition.--In this section, the term `covered entity' means 
an entity covered by the cap under subsection (a)(1).

``SEC. 705. ADDITIONAL AUTHORITY TO REGULATE GREENHOUSE GAS EMISSIONS.

    ``(a) Additional Regulations.--The regulations promulgated under 
section 703(a) may include additional regulations to reduce emissions 
of greenhouse gases from any source or sector, irrespective of whether 
the source or sector is described in section 704(b)(1). Regulations 
under this section may include emissions performance standards, 
efficiency performance standards, best management practices, 
technology-based requirements, and other forms of requirements.
    ``(b) Relation to Other Authority.--The authorizations under this 
title are in addition to the Administrator's authority to regulate 
greenhouse gas emissions pursuant to other provisions of law in effect 
on the date of the enactment of the Safe Climate Act of 2006.

``SEC. 706. GREENHOUSE GAS EMISSIONS STANDARDS FOR MOTOR VEHICLES.

    ``(a) In General.--The regulations promulgated under section 703(a) 
shall include regulations under section 202 setting standards for 
greenhouse gas emissions from motor vehicles. These standards shall 
reduce such emissions at least as quickly and at least as much (on an 
average vehicle basis) as the standards adopted by the California Air 
Resources Board at its September 23-24, 2004 hearing (California Code 
of Regulations, title 13, sec. 1961.1).
    ``(b) Revision of Standards.--Not later than January 1, 2014, and 
every 5 years thereafter, the Administrator shall promulgate 
regulations revising such standards to further reduce greenhouse gas 
emissions from motor vehicles, taking into account the reductions 
needed to achieve the emission reduction targets promulgated pursuant 
to section 701, as well as the technological feasibility of achieving 
tighter standards of various stringencies.

``SEC. 707. SAVINGS CLAUSE.

    ``Nothing in this title shall be interpreted to preempt or limit 
State actions to address climate change.

``SEC. 708. DEFINITIONS.

    ``In this title:
            ``(1) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means the quantity of greenhouse gas that makes the 
        same contribution to global warming as 1 metric ton of carbon 
        dioxide, as determined by the Administrator, taking into 
        account the global warming potentials published by the 
        Intergovernmental Panel on Climate Change.
            ``(2) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons;
                    ``(F) sulfur hexafluoride; or
                    ``(G) any other anthropogenically-emitted gas that 
                is determined by the Administrator, after notice and 
                comment, to contribute to global warming to a non-
                negligible degree.
            ``(3) United states greenhouse gas emissions.--The term 
        `United States greenhouse gas emissions' means the total 
        quantity of greenhouse gas emissions calculated by the 
        Administrator on an annual basis and reported to the United 
        Nations Framework Convention on Climate Change Secretariat.''.

SEC. 4. NATIONAL RENEWABLE ENERGY STANDARD.

    Title VI of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-4 et seq.) is amended by adding at the end the following:

``SEC. 610. NATIONAL RENEWABLE ENERGY STANDARD.

    ``(a) In General.--The Secretary shall promulgate regulations 
requiring that--
            ``(1) beginning in calendar year 2009, the percentage of 
        electric energy generated from renewable sources that is sold 
        at the retail level in the United States shall increase each 
        year; and
            ``(2) in calendar year 2020 and each subsequent calendar 
        year, such percentage shall be not less than 20 percent of the 
        total electricity sold at the retail level in the United 
        States.
    ``(b) Consultation.--The Secretary shall carry out this section in 
consultation with the Administrator of the Environmental Protection 
Agency.
    ``(c) Subsequent Increases.--Upon petition or upon the Secretary's 
own initiative, the Secretary may increase the percentage required by 
subsection (a)(2).
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to preempt or limit State actions to enhance renewable energy 
generation or energy efficiency.''.

SEC. 5. NATIONAL ENERGY EFFICIENCY STANDARD.

    Title VI of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-4 et seq.), as amended by section 4 of this Act, is amended 
by adding at the end the following:

``SEC. 611. NATIONAL ENERGY EFFICIENCY STANDARD.

    ``(a) In General.--The Secretary shall promulgate regulations in 
accordance with this section setting end-user savings targets for 
retail electric-energy and natural gas suppliers.
    ``(b) Consultation.--The Secretary shall carry out this section in 
consultation with the Administrator of the Environmental Protection 
Agency.
    ``(c) Requirements.--With respect to targets under subsection (a):
            ``(1) The targets shall require each supplier to secure 
        annual savings of a set percentage of the supplier's most 
        recent year's sales to retail customers.
            ``(2) The savings shall be achieved through end-use 
        efficiency improvements at customer facilities.
            ``(3) The targets shall increase gradually from 0.25 
        percent of sales in 2009 to 1 percent of sales in 2012 and each 
        year thereafter through 2020.
            ``(4) The targets are cumulative. Each year's savings shall 
        be achieved in addition to the previous years' savings.
    ``(d) Required Percentages After 2020.--The Secretary may, upon 
petition or upon the Secretary's own initiative, increase the required 
percentage of end-user savings for years after 2020.
    ``(e) Market-Based Trading System.--The Secretary shall allow 
suppliers to achieve the targets under subsection (a) through a market-
based trading system.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to preempt or limit State actions to enhance renewable energy 
generation or energy efficiency.''.
                                 <all>