[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 388 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 388

   To amend the Energy Policy Act of 1992 to direct the Secretary of 
      Energy to carry out activities that promote the adoption of 
   technologies that reduce greenhouse gas intensity and to provide 
    credit-based financial assistance and investment protection for 
   projects that employ advanced climate technologies or systems, to 
 provide for the establishment of a national greenhouse gas registry, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2005

   Mr. Hagel (for himself, Mr. Alexander, Mr. Craig, and Mrs. Dole) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To amend the Energy Policy Act of 1992 to direct the Secretary of 
      Energy to carry out activities that promote the adoption of 
   technologies that reduce greenhouse gas intensity and to provide 
    credit-based financial assistance and investment protection for 
   projects that employ advanced climate technologies or systems, to 
 provide for the establishment of a national greenhouse gas registry, 
                        and for other purposes.

    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 ``Climate Change Technology 
Deployment and Infrastructure Credit Act of 2005''.

SEC. 2. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY STRATEGIES.

    Title XVI of the Energy Policy Act of 1992 (42 U.S.C. 13381 et 
seq.) is amended by adding at the end the following:

``SEC. 1610. GREENHOUSE GAS INTENSITY REDUCING STRATEGIES.

    ``(a) Definitions.--In this section:
            ``(1) Carbon sequestration.--The term `carbon 
        sequestration' means the capture of carbon dioxide through 
        terrestrial, geological, biological, or other means, which 
        prevents the release of carbon dioxide into the atmosphere.
            ``(2) Committee.--The term `Committee' means the 
        Interagency Coordinating Committee on Climate Change Technology 
        established under subsection (c)(1).
            ``(3) Greenhouse gas.--The term `greenhouse gas' means 
        carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, 
        perfluorocarbons, and sulfur hexafluoride.
            ``(4) Greenhouse gas intensity.--The term `greenhouse gas 
        intensity' means the ratio of greenhouse gas emissions to 
        economic output.
            ``(5) National laboratory.--The term `National Laboratory' 
        means a laboratory owned by the Department of Energy, including 
        the following:
                    ``(A) Argonne National Laboratory.
                    ``(B) Idaho National Laboratory.
                    ``(C) Brookhaven National Laboratory.
                    ``(D) Oak Ridge National Laboratory.
                    ``(E) Los Alamos National Laboratory.
                    ``(F) Sandia National Laboratory.
                    ``(G) Lawrence Livermore National Laboratory.
                    ``(H) National Energy Technology Laboratory.
                    ``(I) National Renewable Energy Laboratory.
                    ``(J) Pacific Northwest National Laboratory.
            ``(6) Working group.--The term `Working Group' means the 
        Climate Change Technology Working Group established under 
        subsection (g)(1).
    ``(b) Office of Science and Technology Policy Strategy.--
            ``(1) In general.--Based on the recommendations of the 
        report submitted under subsection (f)(2), the Director of the 
        Office of Science and Technology Policy shall develop a 
        national strategy to promote greenhouse gas intensity reducing 
        technologies and practices developed through research and 
        development programs conducted by National Laboratories, other 
        Federal research facilities, universities, and the private 
        sector.
            ``(2) Report.--The Director of the Office of Science and 
        Technology Policy shall annually submit to the President and 
        make available to the public a report on the activities carried 
        out in furtherance of the strategy developed under paragraph 
        (1).
    ``(c) Interagency Coordinating Committee on Climate Change 
Technology.--
            ``(1) In general.--Not later than 180 days after the date 
        on which the first report is submitted under subsection (b)(2), 
        the Secretary shall establish an Interagency Coordinating 
        Committee on Climate Change Technology to coordinate Federal 
        climate change activities and programs carried out in 
        furtherance of the strategy developed under subsection (b)(1).
            ``(2) Membership.--The Committee shall be composed of at 
        least 6 members, including--
                    ``(A) the Secretary;
                    ``(B) the Secretary of Commerce;
                    ``(C) the Chairman of the Council on Environmental 
                Quality;
                    ``(D) the Secretary of Agriculture;
                    ``(E) the Administrator of the Environmental 
                Protection Agency; and
                    ``(F) the Secretary of Transportation.
    ``(d) Climate Change Science Program and Climate Change Technology 
Program.--
            ``(1) Climate change science program.--Not later than 180 
        days after the date on which the first report is submitted 
        under subsection (b)(2), the Secretary of Commerce, in 
        cooperation with the Committee, shall establish as a permanent 
        program within the Department of Commerce the Climate Change 
        Science Program to assist the Committee in the interagency 
        coordination of climate change science research and related 
        activities, including--
                    ``(A) the assessments of the state of knowledge on 
                climate change; and
                    ``(B) carrying out supporting studies, planning, 
                and analyses of the science of climate change.
            ``(2) Climate change technology program.--Not later than 
        180 days after the date on which the first report is submitted 
        under subsection (b)(2), the Secretary, in cooperation with the 
        Committee, shall establish as a permanent program within the 
        Department of Energy, the Climate Change Technology Program to 
        assist the Committee in the interagency coordination of climate 
        change technology research, development, demonstration, and 
        deployment to reduce greenhouse gas intensity.
    ``(e) Technology Inventory.--
            ``(1) In general.--The Secretary shall conduct an inventory 
        and evaluation of greenhouse gas intensity reducing 
        technologies that have been developed, or are under 
        development, by the National Laboratories to determine which 
        technologies are suitable for commercialization and deployment.
            ``(2) Report.--Not later than 180 days after the completion 
        of the inventory under paragraph (1), the Secretary shall 
        submit to the Secretary of Commerce and Congress a report that 
        includes the results of the completed inventory and any 
        recommendations of the Secretary.
            ``(3) Use.--The Secretary, in consultation with the 
        Secretary of Commerce, shall use the results of the inventory 
        as guidance in the commercialization of greenhouse gas 
        intensity reducing technologies.
    ``(f) Greenhouse Gas Intensity Reducing Technology Study.--
            ``(1) Study.--As soon as practicable after the date of 
        enactment of this section, the Committee shall conduct and 
        submit to the Secretary a study on--
                    ``(A) the commercialization and diffusion of new 
                and existing technologies to reduce greenhouse gas 
                intensity; and
                    ``(B) ways to increase the development and 
                deployment of cost-effective technologies and 
                practices.
            ``(2) Report.--Not later than 180 days after the completion 
        of the study under paragraph (1), the Secretary shall submit to 
        Congress and the Director of the Office of Science and 
        Technology Policy a report that describes--
                    ``(A) the results of the study; and
                    ``(B) any recommendations of the Committee to--
                            ``(i) increase commercialization of the 
                        technologies and practices described in 
                        paragraph (1); and
                            ``(ii) promote the long-term 
                        commercialization and deployment of those 
                        technologies and practices.
    ``(g) Climate Change Technology Working Group.--
            ``(1) In general.--The Secretary, in consultation with the 
        Committee, shall establish a Climate Change Technology Working 
        Group to identify major statutory, regulatory, and economic 
        barriers to the commercialization of greenhouse gas intensity 
        reducing technologies and practices.
            ``(2) Composition.--The Working Group shall be composed of 
        the following members, to be appointed by the Secretary, in 
        consultation with the Committee:
                    ``(A) 1 representative from each National 
                Laboratory.
                    ``(B) 3 members shall be representatives of energy-
                producing industries.
                    ``(C) 3 members shall represent major energy-
                consuming industries.
                    ``(D) 3 members shall represent groups that 
                represent end-use energy and other consumers.
                    ``(E) 3 members shall be employees of the Federal 
                Government who are experts in energy technology, 
                intellectual property, tax, and regulation.
                    ``(F) 3 members shall be representatives of 
                universities with expertise in energy technology 
                development that are recommended by the National 
                Academy of Engineering.
            ``(3) Report.--Not later than 1 year after the date of 
        enactment of this section and annually thereafter, the Working 
        Group shall submit to the Committee a report that describes--
                    ``(A) the findings of the Working Group; and
                    ``(B) any recommendations of the Working Group for 
                the removal of barriers to commercialization and 
                increasing the use of greenhouse gas intensity reducing 
                technologies.
    ``(h) Greenhouse Gas Intensity Reducing Technology Deployment.--
            ``(1) In general.--Based on the strategy developed under 
        subsection (b)(1), the technology inventory conducted under 
        subsection (e)(1), and the greenhouse gas intensity reducing 
        technology study report submitted under subsection (e)(2), the 
        Committee shall develop a program for implementation by the 
        Climate Credit Board established under section 1611(b)(2)(A) 
        that would provide for the removal of domestic barriers to the 
        deployment of greenhouse gas intensity reducing technologies.
            ``(2) Requirements.--In developing the program under 
        paragraph (1), the Committee shall consider--
                    ``(A) the cost-effectiveness of the technology;
                    ``(B) fiscal and regulatory barriers;
                    ``(C) statutory barriers; and
                    ``(D) intellectual property issues.
            ``(3) Report.--Not later than 1 year after the date of 
        enactment of this section, the Committee shall submit to the 
        President and Congress a report that--
                    ``(A) identifies the barriers to, and the 
                commercial risks associated with, the deployment of 
                greenhouse gas intensity reducing technologies;
                    ``(B) includes a comprehensive plan for carrying 
                out eligible projects with Federal financial assistance 
                under section 1611; and
                    ``(C) describes the program developed under 
                paragraph (1).
    ``(i) Procedures for Calculating, Monitoring, and Analyzing 
Greenhouse Gas Intensity.--
            ``(1) In general.--Using the guidelines issued under 
        section 1605(b), the Committee, in collaboration with the 
        Administrator of the Energy Information Administration and the 
        National Institute of Standards and Technology, shall develop 
        and propose standards and best practices for calculating, 
        monitoring, and analyzing greenhouse gas intensity.
            ``(2) Content.--The standards and best practices shall 
        address measurement of greenhouse gas intensity by industry 
        sector.
            ``(3) Applicable law.--To ensure that high quality 
        information is produced, the standards and best practices 
        developed under paragraph (1) shall conform to the guidelines 
        established under section 515 of the Treasury and General 
        Government Appropriations Act, 2001 (commonly known as the 
        `Data Quality Act') (44 U.S.C. 3516 note; 114 Stat. 2763A-
        1543), as enacted into law by section 1(a)(3) of Public Law 
        106-554.
    ``(j) Demonstration Projects.--
            ``(1) In general.--The Secretary shall conduct and 
        participate in demonstration projects approved by the 
        Committee, including demonstration projects relating to--
                    ``(A) coal gasification and coal liquefaction;
                    ``(B) carbon sequestration;
                    ``(C) cogeneration technology initiatives;
                    ``(D) advanced nuclear power projects;
                    ``(E) lower emission transportation;
                    ``(F) renewable energy; and
                    ``(G) transmission upgrades.
            ``(2) Criteria.--The Committee shall approve a 
        demonstration project under paragraph (1) if the proposed 
        demonstration project would--
                    ``(A) increase the reduction of the greenhouse gas 
                intensity to levels below that which would be achieved 
                by technologies being used in the United States as of 
                the date of enactment of this section;
                    ``(B) maximize the potential return on Federal 
                investment;
                    ``(C) demonstrate distinct roles in public-private 
                partnerships;
                    ``(D) produce a large-scale reduction of greenhouse 
                gas intensity if commercialization occurred; and
                    ``(E) support a diversified portfolio to mitigate 
                the uncertainty associated with a single technology.
    ``(k) Cooperative Research and Development Agreements.--In carrying 
out greenhouse gas intensity reduction research and technology 
deployment, the Secretary may enter into cooperative research and 
development agreements under section 12 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 3710a).
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    ``(m) Termination of Authority.--The authority provided by this 
section terminates effective December 31, 2010.''.

SEC. 3. CLIMATE INFRASTRUCTURE CREDIT.

     Title XVI of the Energy Policy Act of 1992 (42 (U.S.C. 13381 et 
seq.) (as amended by section 2) is amended by adding at the end the 
following:

``SEC. 1611. CLIMATE INFRASTRUCTURE CREDIT.

    ``(a) Definitions.--In this section:
            ``(1) Advanced climate technology or system.--The term 
        `advanced climate technology or system' means a climate 
        technology or system that is not in general usage as of the 
        date of enactment of this section.
            ``(2) Board.--The term `Board' means the Climate Credit 
        Board established under subsection (b)(2)(A).
            ``(3) Direct loan.--The term `direct loan' has the meaning 
        given the term in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            ``(4) Eligible project.--The term `eligible project' means 
        a demonstration project that is approved under section 
        1610(j)(1).
            ``(5) Eligible project cost.--The term `eligible project 
        cost' means any amount incurred for an eligible project that is 
        paid by, or on behalf of, an obligor, including the costs of--
                    ``(A) pre-construction activities, including--
                            ``(i) detailed project engineering and 
                        design work;
                            ``(ii) environmental reviews and 
                        permitting; and
                            ``(iii) other pre-construction activities, 
                        as determined by the Secretary;
                    ``(B) construction activities, including--
                            ``(i) the acquisition of capital equipment;
                            ``(ii) construction management; and
                            ``(iii) construction contingencies; and
                    ``(C) acquiring land (including any improvements to 
                the land) relating to the eligible project; and
                    ``(D) financing the eligible project, including--
                            ``(i) providing capitalized interest 
                        necessary to meet market requirements;
                            ``(ii) maintaining reasonably required 
                        reserve funds;
                            ``(iii) capital issuance expenses; and
                            ``(iv) other carrying costs during 
                        construction.
            ``(6) Federal financial assistance.--The term `Federal 
        financial assistance' means any credit-based financial 
        assistance, including a direct loan, loan guarantee, a line of 
        credit (which serves as standby default coverage or standby 
        interest coverage), production incentive payment under 
        subsection (g)(1)(B), or other credit-based financial 
        assistance mechanism for an eligible project that is--
                    ``(A) authorized to be made available by the 
                Secretary for an eligible project under this section; 
                and
                    ``(B) provided in accordance with the Federal 
                Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
            ``(7) Investment-grade rating.--The term `investment-grade 
        rating' means a rating category of BBB minus, Baa3, or higher 
        assigned by a rating agency for eligible project obligations 
        offered into the capital markets.
            ``(8) Lender.--The term `lender' means any non-Federal 
        qualified institutional buyer (as defined in section 
        230.144A(a) of title 17, Code of Federal Regulations (or any 
        successor regulation), known as Rule 144A(a) of the Securities 
        and Exchange Commission and issued under the Securities Act of 
        1933 (15 U.S.C. 77a et seq.)), including--
                    ``(A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986) 
                that is a qualified institutional buyer; and
                    ``(B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986) that is a 
                qualified institutional buyer.
            ``(9) Loan guarantee.--The term `loan guarantee' means any 
        guarantee or other pledge by the Secretary to pay all or part 
        of the principal of and interest on a loan or other debt 
        obligation that is issued by an obligor and funded by a lender.
            ``(10) Obligor.--The term `obligor' means a person or 
        entity (including a corporation, partnership, joint venture, 
        trust, or governmental entity, agency, or instrumentality) that 
        is primarily liable for payment of the principal of, or 
        interest on, a Federal credit instrument.
            ``(11) Project obligation.--The term `project obligation' 
        means any note, bond, debenture, or other debt obligation 
        issued by an obligor in connection with the financing of an 
        eligible project, other than a Federal credit instrument.
            ``(12) Rating agency.--The term `rating agency' means a 
        bond rating agency identified by the Securities and Exchange 
        Commission as a Nationally Recognized Statistical Rating 
        Organization.
            ``(13) Regulatory failure.--The term `regulatory failure' 
        means a situation in which, because of a breakdown in a 
        regulatory process or an indefinite delay caused by a judicial 
        challenge to the regulatory consideration of a specific 
        eligible project, the Federal or State regulatory or licensing 
        process governing the siting, construction, or commissioning of 
        an eligible project does not produce a definitive determination 
        that the eligible project may go forward or stop within a 
        predetermined and prescribed time period, as determined by the 
        Secretary.
            ``(14) Secured loan.--The term `secured loan' means a loan 
        or other secured debt obligation issued by an obligor and 
        funded by the Secretary in connection with the financing of an 
        eligible project.
            ``(15) Standby default coverage.--The term `standby default 
        coverage' means a pledge by the Secretary to pay all or part of 
        the debt obligation issued by an obligor and funded by a 
        lender, plus all or part of obligor equity, if an eligible 
        project fails to receive an operating license in a period of 
        time established by the Secretary because of a regulatory 
        failure or other specific issue identified by the Secretary.
            ``(16) Standby interest coverage.--The term `standby 
        interest coverage' means a pledge by the Secretary to provide 
        to an obligor, at a future date and on the occurrence of 1 or 
        more events, a direct loan, the proceeds of which shall be used 
        by the obligor to maintain the current status of the obligor on 
        interest payments due on 1 or more loans or other project 
        obligations issued by an obligor and funded by a lender for an 
        eligible project.
            ``(17) Subsidy amount.--The term `subsidy amount' means the 
        amount of budget authority sufficient to cover the estimated 
        long-term cost to the Federal Government of a Federal credit 
        instrument issued by the Secretary to an eligible project, 
        calculated on a net present value basis, excluding 
        administrative costs and any incidental effects on governmental 
        receipts or outlays in accordance with the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661 et seq.).
            ``(18) Substantial completion.--The term `substantial 
        completion' means that an eligible project has been determined 
        by the Board to be in, or capable of, commercial operation.
    ``(b) Duties of the Secretary.--
            ``(1) In general.--The Secretary shall make available to 
        eligible project developers and eligible project owners, in 
        accordance with this section, such financial assistance as is 
        necessary to supplement private sector financing for eligible 
        projects.
            ``(2) Climate credit board.--
                    ``(A) In general.--Not later than 120 days after 
                the date of enactment of this section, the Secretary 
                shall establish within the Department of Energy a 
                Climate Credit Board composed of--
                            ``(i) the Under Secretary of Energy, who 
                        shall serve as Chairperson;
                            ``(ii) the Chief Financial Officer of the 
                        Department of Energy;
                            ``(iii) the Assistant Secretary of Energy 
                        for Policy and International Affairs;
                            ``(iv) the Assistant Secretary of Energy 
                        for Energy Efficiency and Renewable Energy; and
                            ``(v) such other individuals as the 
                        Secretary determines to have the experience and 
                        expertise (including expertise in corporate and 
                        project finance and the energy sector) 
                        necessary to carry out the duties of the Board.
                    ``(B) Duties.--The Board shall--
                            ``(i) implement the program developed under 
                        section 1610(h)(1) in accordance with paragraph 
                        (3);
                            ``(ii) issue regulations and criteria in 
                        accordance with paragraph (4);
                            ``(iii) conduct negotiations with 
                        individuals and entities interested in 
                        obtaining assistance under this section;
                            ``(iv) recommend to the Secretary potential 
                        recipients and amounts of grants of assistance 
                        under this section; and
                            ``(v) carry out such other projects and 
                        activities as the Interagency Coordinating 
                        Committee on Climate Change Technology may 
                        recommend.
            ``(3) Greenhouse gas intensity reducing technology 
        deployment program.--Not later than 1 year after the date of 
        enactment of this section, the Board shall implement the 
        greenhouse gas intensity reducing technology deployment program 
        developed under section 1610(h)(1).
            ``(4) Regulations and criteria.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this section, the Board shall 
                issue and publish in the Federal Register such 
                regulations and criteria as are necessary to implement 
                this section.
                    ``(B) Requirements.--The regulations and criteria 
                shall provide for, at a minimum--
                            ``(i) a competitive process and the general 
                        terms and conditions for the provision of 
                        assistance under this section;
                            ``(ii) the procedures by which eligible 
                        project owners and eligible project developers 
                        may request financial assistance under this 
                        section; and
                            ``(iii) the collection of any other 
                        information necessary for the Secretary to 
                        carry out this section, including a process for 
                        negotiating the terms and conditions of 
                        assistance provided under this section.
                    ``(C) Eligibility and criteria.--The determination 
                of eligibility of, and criteria for selecting, eligible 
                projects to receive assistance under this section shall 
                be carried out in accordance with subsection (c).
                    ``(D) Conditions for provision of assistance.--The 
                Board shall not provide assistance under this section 
                unless the Board determines that the terms, conditions, 
                maturity, security, schedule, and amounts of repayments 
                of the assistance are reasonable and meet such 
                standards as the Board determines are appropriate to 
                protect the financial interests of the United States.
            ``(5) Reports to the president and congress.--Not later 
        than 4 years after the date of enactment of this section, and 
        every 2 years thereafter, the Board shall submit to the 
        Secretary, for transmittal to the President and Congress, a 
        report that describes--
                    ``(A) the progress in carrying out this section;
                    ``(B) the financial performance of the eligible 
                projects that are receiving, or have received, 
                assistance under this section as of the date of the 
                report; and
                    ``(C) the progress and value to the United States 
                of the program under this section, including a 
                recommendation as to whether the objectives of this 
                section are best served by--
                            ``(i) continuing the program under the 
                        authority of the Secretary;
                            ``(ii) establishing a Federal Government 
                        corporation or Federal Government-sponsored 
                        enterprise to administer the program; or
                            ``(iii) phasing out the program and relying 
                        on the capital markets to fund the kinds of 
                        energy infrastructure investments assisted by 
                        this section without Federal participation.
            ``(6) Confidentiality.--The Board shall protect the 
        confidentiality of any information provided by an applicant for 
        assistance under this section that the applicant certifies to 
        be commercially sensitive or that is protected intellectual 
        property.
    ``(c) General Requirements Regarding Assistance, Determination of 
Eligibility, and Project Selection.--
            ``(1) In general.--The Board shall not provide assistance 
        to an eligible project under this section unless the Board 
        first determines that the amount of assistance to be provided 
        for the eligible project is not greater than the amount of 
        assistance required to achieve the purposes of this section 
        with respect to the eligible project.
            ``(2) Eligibility.--To be eligible to receive assistance 
        under this section, an eligible project shall, as determined by 
        the Board--
                    ``(A) be supported by an application that contains 
                all information required to be included by, and is 
                submitted to and approved by the Board in accordance 
                with, the regulations and criteria issued by the Board 
                under subsection (b)(4);
                    ``(B) be nationally or regionally significant by--
                            ``(i) reducing greenhouse gas intensity;
                            ``(ii) generating economic benefits;
                            ``(iii) contributing to energy security;
                            ``(iv) contributing to energy and 
                        technology diversity in the energy economy of 
                        the United States;
                            ``(v) contributing to energy and 
                        electricity price stability; or
                            ``(vi) otherwise enhancing national or 
                        regional energy efficiency, reliability, and 
                        robustness of performance;
                    ``(C) contain an advanced climate technology or 
                system that could--
                            ``(i) significantly improve the efficiency, 
                        security, reliability, and environmental 
                        performance of the energy economy of the United 
                        States; and
                            ``(ii) reduce greenhouse gas emissions;
                    ``(D) have revenue sources dedicated to repayment 
                of credit support-based project financing, such as 
                revenue--
                            ``(i) from the sale of sequestered carbon;
                            ``(ii) from the sale of energy, 
                        electricity, or other products from eligible 
                        projects that employ advanced climate 
                        technologies and systems;
                            ``(iii) from the sale of transportation of 
                        commerce;
                            ``(iv) from the sale of electricity or 
                        generating capacity, in the case of electricity 
                        infrastructure;
                            ``(v) from the sale or transmission of 
                        energy;
                            ``(vi) associated with energy efficiency 
                        gains, in the case of other energy projects; or
                            ``(vii) from other dedicated revenue 
                        sources;
                    ``(E) include a project proposal and agreement for 
                project financing repayment that demonstrates to the 
                satisfaction of the Board that the dedicated revenue 
                sources described in subparagraph (D) will be adequate 
                to repay project financing provided under this section;
                    ``(F) reduce greenhouse gas intensity on a national 
                or regional basis; and
                    ``(G) if the eligible project involves new 
                transmission capacity, link to low-emission projects.
            ``(3) Limitations.--Except as otherwise provided in this 
        section--
                    ``(A) the total cost of an eligible project 
                provided Federal financial assistance under this 
                section shall be at least $40,000,0000;
                    ``(B) the Federal share of an eligible project 
                provided Federal financial assistance under this Act 
                shall be not more than 20 percent of the total cost of 
                carrying out the eligible project; and
                    ``(C) not more than $200,000,000 in Federal 
                financial assistance shall be provided to any 
                individual eligible project.
            ``(4) Selection among eligible projects.--
                    ``(A) Establishment of selection criteria.--The 
                Board shall establish criteria for selecting which 
                eligible projects will receive assistance under this 
                section.
                    ``(B) Requirements.--The selection criteria shall 
                include a determination by the Board of the extent to 
                which--
                            ``(i) the eligible project reduces 
                        greenhouse gas intensity beyond reductions 
                        achieved by technology available as of October 
                        15, 1992;
                            ``(ii) financing for the eligible project 
                        has appropriate security features, such as a 
                        rate covenant, to ensure repayment;
                            ``(iii) assistance under this section for 
                        the eligible project would foster innovative 
                        public-private partnerships and attract private 
                        debt or equity investment;
                            ``(iv) assistance under this section for an 
                        eligible project would enable the eligible 
                        project to proceed at an earlier date than 
                        would otherwise be practicable;
                            ``(v) the eligible project uses new 
                        technologies that enhance the efficiency, 
                        reduce the environmental impact, improve the 
                        reliability, or improve the safety, of the 
                        eligible project;
                            ``(vi) the eligible project helps to 
                        maintain or protect the environment, especially 
                        with respect to having a low level of emissions 
                        to the atmosphere;
                            ``(vii) assistance for the eligible project 
                        provided under this section could reduce the 
                        contribution of other Federal grant or funding 
                        assistance to the eligible project; and
                            ``(viii) the eligible project is nationally 
                        or regionally significant in terms of 
                        generating economic benefits, supporting 
                        international commerce, or otherwise enhancing 
                        national energy efficiency, security, 
                        reliability, robustness, and environmental 
                        performance.
                    ``(C) Financial information.--An application for 
                assistance for an eligible project under this section 
                shall include such information as the Secretary 
                determines to be necessary concerning--
                            ``(i) the amount of budget authority 
                        required to fund the Federal credit instrument 
                        requested for the eligible project;
                            ``(ii) the estimated construction costs of 
                        the proposed eligible project;
                            ``(iii) estimates of construction and 
                        operating costs of the eligible project;
                            ``(iv) projected revenues from the eligible 
                        project; and
                            ``(v) any other financial aspects of the 
                        eligible project, including assurances, that 
                        the Board determines to be appropriate.
                    ``(D) Preliminary rating opinion letter.--The Board 
                shall require each applicant seeking assistance for an 
                eligible project under this section to provide a 
                preliminary rating opinion letter from at least 1 
                credit rating agency indicating that the senior 
                obligations of the eligible project have the potential 
                to achieve an investment-grade rating.
                    ``(E) Risk assessment.--Before entering into any 
                agreement to provide assistance for an eligible project 
                under this section, the Board, in consultation with the 
                Secretary, the Director of the Office of Management and 
                Budget, and each credit rating agency providing a 
                preliminary rating opinion letter under subparagraph 
                (D), shall determine and maintain an appropriate 
                capital reserve subsidy amount for each line of credit 
                established for the eligible project, taking into 
                account the information contained in the preliminary 
                rating opinion letter.
                    ``(F) Investment-grade rating requirement.--
                            ``(i) In general.--The funding of any 
                        assistance under this section shall be 
                        contingent on the senior obligations of the 
                        eligible project receiving an investment-grade 
                        rating from at least 1 credit rating agency.
                            ``(ii) Considerations.--In determining 
                        whether an investment-grade rating is 
                        appropriate under clause (i), the credit rating 
                        agency shall take into account the availability 
                        of Federal financial assistance under this 
                        section.
            ``(5) Maximum available climate credit support.--
        Notwithstanding any assistance limitation under any other 
        provision of this section, the Secretary shall not provide 
        energy credit support to any eligible project in the form of a 
        secured loan or loan guarantee under subsection (f), production 
        incentive payments under subsection (g), or other credit-based 
        financial assistance under subsection (h), the combined total 
        of which exceeds 60 percent of eligible project costs, 
        excluding the value of standby default coverage under 
        subsection (d) and standby interest coverage under subsection 
        (e), as determined by the Secretary.
    ``(d) Standby Default Coverage.--
            ``(1) Agreements; use of proceeds.--
                    ``(A) Agreements.--
                            ``(i) In general.--Subject to subparagraph 
                        (B), the Board, in consultation with the 
                        Secretary, may enter into agreements to provide 
                        standby default coverage for advanced climate 
                        technologies or systems of an eligible project.
                            ``(ii) Recipients.--Coverage under clause 
                        (i) may be provided to 1 or more obligors and 
                        debt holders to be triggered at future dates on 
                        the occurrence of certain events for any 
                        eligible project selected under subsection (c).
                    ``(B) Use of proceeds.--The proceeds of standby 
                default coverage made available under this subsection 
                shall be available to reimburse all or part of the debt 
                obligation for an eligible project issued by an obligor 
                and funded by a lender, plus all or part of obligor 
                equity, in the event that, because of a regulatory 
                failure or other event specified by the Secretary 
                pursuant to this section, an eligible advanced climate 
                technology or system for an eligible project fails to 
                receive an operating license in a period of time 
                specified by the Board in accordance with this 
                subsection.
            ``(2) Terms and limitations.--
                    ``(A) In general.--Standby default coverage under 
                this subsection with respect to an eligible project 
                shall be on such terms and conditions and contain such 
                covenants, representations, warranties, and 
                requirements (including requirements for audits) as the 
                Board determines to be appropriate.
                    ``(B) Maximum amounts.--The total amount of standby 
                default coverage provided for an eligible project shall 
                not exceed 100 percent of the reasonably anticipated 
                eligible project costs, including debt and equity.
                    ``(C) Exercise.--Any exercise on the standby 
                default coverage shall be made only if a facility 
                involved with the eligible project fails, because of 
                regulatory failure or other specific issues specified 
                by the Secretary, to receive an operating license by 
                such deadline as the Secretary shall establish.
                    ``(D) Cost of coverage.--The cost of standby 
                default coverage shall be assumed by the Secretary 
                subject to the risk assessment calculation required 
                under subsection (c)(4)(E) and the availability of 
                funds for that purpose.
                    ``(E) Fees.--In carrying out this section, the 
                Secretary may--
                            ``(i) establish fees at a level sufficient 
                        to cover all or a portion of the administrative 
                        costs incurred by the Federal Government in 
                        providing standby default coverage under this 
                        subsection; and
                            ``(ii) require that the fees be paid upon 
                        application for a standby default coverage 
                        agreement under this subsection.
                    ``(F) Period of availability.--In the event that 
                regulatory approval to operate a facility is suspended 
                as a result of regulatory failure or other 
                circumstances specified by the Secretary, standby 
                default coverage shall be available beginning on the 
                date of substantial completion and ending not later 
                than 5 years after the date on which operation of the 
                facility is scheduled to commence.
                    ``(G) Rights of third-party creditors.--
                            ``(i) Against federal government.--A third-
                        party creditor of an obligor shall not have any 
                        right against the Federal Government with 
                        respect to any amounts other than those 
                        specified in subparagraph (B).
                            ``(ii) Assignment.--An obligor may assign 
                        all or part of the standby default coverage for 
                        an eligible project to 1 or more lenders or to 
                        a trustee on behalf of the lenders.
                    ``(H) Result of exercise of standby default 
                coverage.--If standby default coverage is exercised by 
                the obligor of an eligible project--
                            ``(i) the Federal Government shall become 
                        the sole owner of the eligible project, with 
                        all rights and appurtenances to the eligible 
                        project; and
                            ``(ii) the Board shall dispose of the 
                        assets of the eligible project on terms that 
                        are most favorable to the Federal Government, 
                        which may include continuing to licensing and 
                        commercial operation or resale of the eligible 
                        project, in whole or in part, if that is the 
                        best course of action in the judgment of the 
                        Board.
                    ``(I) Estimate of assets at time of termination.--
                If standby default coverage is exercised and an 
                eligible project is terminated, the Board, in making a 
                determination of whether to dispose of the assets of 
                the eligible project or continue the eligible project 
                to licensing and commercial operation, shall obtain a 
                fair and impartial estimate of the eligible project 
                assets at the time of termination.
                    ``(J) Relationship to other credit instruments.--An 
                eligible project that receives standby default coverage 
                under this subsection may receive a secured loan or 
                loan guarantee under subsection (f), production 
                incentive payments under subsection (g), or assistance 
                through a credit-based financial assistance mechanism 
                under subsection (h).
                    ``(K) Other conditions and requirements.--The 
                Secretary may impose such other conditions and 
                requirements in connection with any insurance provided 
                under this subsection (including requirements for 
                audits) as the Secretary determines to be appropriate.
    ``(e) Standby Interest Coverage.--
            ``(1) In general.--
                    ``(A) Agreements.--Subject to subparagraph (B), the 
                Board may enter into agreements to make standby 
                interest coverage available to 1 or more obligors in 
                the form of loans for advanced climate or energy 
                technologies or systems to be made by the Board at 
                future dates on the occurrence of certain events for 
                any eligible project selected under subsection (c)(4).
                    ``(B) Use of proceeds.--Subject to subsection 
                (c)(3), the proceeds of standby interest coverage made 
                available under this subsection shall be available to 
                pay the debt service on project obligations issued to 
                finance eligible project costs of an eligible project 
                if a delay in commercial operations occurs due to a 
                regulatory failure or other condition determined by the 
                Secretary.
            ``(2) Terms and limitations.--
                    ``(A) In general.--Standby interest coverage under 
                this subsection with respect to an eligible project 
                shall be made on such terms and conditions (including a 
                requirement for an audit) as the Secretary determines 
                appropriate.
                    ``(B) Maximum amounts.--
                            ``(i) Total amount.--The total amount of 
                        standby interest coverage for an eligible 
                        project under this subsection shall not exceed 
                        25 percent of the reasonably anticipated 
                        eligible project costs of the eligible project.
                            ``(ii) 1-year draws.--The amount drawn in 
                        any 1 year for an eligible project under this 
                        subsection shall not exceed 20 percent of the 
                        total amount of the standby interest coverage 
                        for the eligible project.
                    ``(C) Period of availability.--The standby interest 
                coverage for an eligible project shall be available 
                during the period--
                            ``(i) beginning on a date following 
                        substantial completion of the eligible project 
                        that regulatory approval to operate a facility 
                        under the eligible project is suspended as a 
                        result of regulatory failure or other condition 
                        determined by the Secretary; and
                            ``(ii) ending on a date that is not later 
                        than 5 years after the eligible project is 
                        scheduled to commence commercial operations.
                    ``(D) Cost of coverage.--Subject to subsection 
                (c)(4)(E), the cost of standby interest coverage for an 
                eligible project under this subsection shall be borne 
                by the Secretary.
                    ``(E) Draws.--Any draw on the standby interest 
                coverage for an eligible project shall--
                            ``(i) represent a loan;
                            ``(ii) be made only if there is a delay in 
                        commercial operations after the substantial 
                        completion of the eligible project; and
                            ``(iii) be subject to the overall credit 
                        support limitations established under 
                        subsection (c)(5).
                    ``(F) Interest rate.--
                            ``(i) In general.--Subject to clause (ii), 
                        the interest rate on a loan resulting from a 
                        draw on standby interest coverage under this 
                        subsection shall be established by the 
                        Secretary.
                            ``(ii) Minimum rate.--The interest rate on 
                        a loan resulting from a draw on standby 
                        interest coverage under this subsection shall 
                        not be less than the current average market 
                        yield on outstanding marketable obligations of 
                        the United States with a maturity of 10 years, 
                        as of the date on which the standby interest 
                        coverage is obligated.
                    ``(G) Security.--The standby interest coverage for 
                an eligible project--
                            ``(i) shall be payable, in whole or in 
                        part, from dedicated revenue sources generated 
                        by the eligible project;
                            ``(ii) shall require security for the 
                        project obligations; and
                            ``(iii) may have a lien on revenues 
                        described in clause (i), subject to any lien 
                        securing project obligations.
                    ``(H) Rights of third-party creditors.--
                            ``(i) Against federal government.--A third-
                        party creditor of the obligor shall not have 
                        any right against the Federal Government with 
                        respect to any draw on standby interest 
                        coverage under this subsection.
                            ``(ii) Assignment.--An obligor may assign 
                        the standby interest coverage to 1 or more 
                        lenders or to a trustee on behalf of the 
                        lenders.
                    ``(I) Subordination.--A secured loan for an 
                eligible project made under this subsection shall be 
                subordinate to senior private debt issued by a lender 
                for the eligible project.
                    ``(J) Nonrecourse status.--A secured loan for an 
                eligible project under this subsection shall be 
                nonrecourse to the obligor in the event of bankruptcy, 
                insolvency, or liquidation of the eligible project.
                    ``(K) Fees.--The Board may impose fees at a level 
                sufficient to cover all or part of the costs to the 
                Federal Government of providing standby interest 
                coverage for an eligible project under this subsection.
            ``(3) Repayment.--
                    ``(A) Terms and conditions.--The Secretary shall 
                establish a repayment schedule and terms and conditions 
                for each loan for an eligible project under this 
                subsection based on the projected cash flow from 
                revenues for the eligible project.
                    ``(B) Repayment schedule.--Scheduled repayments of 
                principal or interest on a loan under this subsection 
                shall--
                            ``(i) commence not later than 5 years after 
                        the end of the period of availability specified 
                        in paragraph (2)(C); and
                            ``(ii) be completed, with interest, not 
                        later than 10 years after the end of the period 
                        of availability.
                    ``(C) Sources of repayment funds.--The sources of 
                funds for scheduled loan repayments under this 
                subsection shall include--
                            ``(i) the sale of electricity or generating 
                        capacity;
                            ``(ii) the sale or transmission of energy;
                            ``(iii) revenues associated with energy 
                        efficiency gains; or
                            ``(iv) other dedicated revenue sources, 
                        such as carbon use.
                    ``(D) Prepayment.--
                            ``(i) Use of excess revenues.--At the 
                        discretion of the obligor, any excess revenues 
                        that remain after satisfying scheduled debt 
                        service requirements on the project obligations 
                        and secured loan, and all deposit requirements 
                        under the terms of any trust agreement, bond 
                        resolution, or similar agreement securing 
                        project obligations, may be applied annually to 
                        prepay the secured loan without penalty.
                            ``(ii) Use of proceeds of refinancing.--The 
                        secured loan may be prepaid at any time without 
                        penalty from the proceeds of refinancing from 
                        non-Federal funding sources.
    ``(f) Secured Loans and Loan Guarantees.--
            ``(1) In general.--
                    ``(A) Agreements.--Subject to subparagraph (B), the 
                Board may enter into agreements with 1 or more obligors 
                to make secured loans for eligible projects involving 
                advanced climate technologies or systems.
                    ``(B) Use of proceeds.--Subject to paragraph (2), 
                the proceeds of a secured loan for an eligible project 
                made available under this subsection shall be 
                available, in conjunction with the equity of the 
                obligor and senior debt financing for the eligible 
                project, to pay for eligible project costs.
            ``(2) Terms and limitations.--
                    ``(A) In general.--A secured loan under this 
                subsection with respect to an eligible project shall be 
                made on such terms and conditions (including 
                requirements for an audit) as the Board, in 
                consultation with the Secretary, determines 
                appropriate.
                    ``(B) Maximum amount.--Subject to subsection 
                (c)(5), the total amount of the secured loan for an 
                eligible project under this subsection shall not exceed 
                50 percent of the reasonably anticipated eligible 
                project costs of the eligible project.
                    ``(C) Period of availability.--The Board may enter 
                into a contract with the owner or operator of an 
                eligible project to provide a secured loan during the 
                period--
                            ``(i) beginning on the date that the 
                        financial structure of the eligible project is 
                        established; and
                            ``(ii) ending on the date of the start of 
                        construction of the eligible project.
                    ``(D) Cost of coverage.--Subject to subsection 
                (c)(4)(E), the cost of a secured loan for an eligible 
                project under this subsection shall be borne by the 
                Secretary.
                    ``(E) Interest rate.--
                            ``(i) In general.--Subject to clause (ii), 
                        the interest rate on a secured loan under this 
                        subsection shall be established by the 
                        Secretary.
                            ``(ii) Minimum rate.--The interest rate on 
                        a loan resulting from a secured loan under this 
                        subsection shall not be less than the current 
                        average market yield on outstanding marketable 
                        obligations of the United States of comparable 
                        maturity, as of the date of the execution of 
                        the loan agreement.
                    ``(F) Security.--The secured loan--
                            ``(i) shall be payable, in whole or in 
                        part, from dedicated revenue sources generated 
                        by the eligible project;
                            ``(ii) shall include a rate covenant, 
                        coverage requirement, or similar security 
                        feature supporting the project obligations; and
                            ``(iii) may have a lien on revenues 
                        described in clause (i), subject to any lien 
                        securing project obligations.
                    ``(G) Rights of third-party creditors.--
                            ``(i) Against federal government.--A third-
                        party creditor of the obligor shall not have 
                        any right against the Federal Government with 
                        respect to any payments due to the Federal 
                        Government under this subsection.
                            ``(ii) Assignment.--An obligor may assign 
                        the secured loan to 1 or more lenders or to a 
                        trustee on behalf of the lenders.
                    ``(H) Subordination.--A secured loan for an 
                eligible project made under this subsection shall be 
                subordinate to senior private debt issued by a lender 
                for the eligible project.
                    ``(I) Nonrecourse status.--A secured loan for an 
                eligible project under this subsection shall be non-
                recourse to the obligor in the event of bankruptcy, 
                insolvency, or liquidation of the eligible project.
                    ``(J) Fees.--The Board may establish fees at a 
                level sufficient to cover all or a portion of the costs 
                to the Federal Government of making secured loans for 
                an eligible project under this subsection.
            ``(3) Repayment.--
                    ``(A) Schedule and terms.--The Board shall 
                establish a repayment schedule and terms and conditions 
                for each secured loan for an eligible project under 
                this subsection based on the projected cash flow from 
                revenues for the eligible project.
                    ``(B) Repayment schedule.--Scheduled repayments on 
                a secured loan for an eligible project under this 
                subsection shall--
                            ``(i) commence not later than 5 years after 
                        the scheduled start of commercial operations of 
                        the eligible project; and
                            ``(ii) be completed, with interest, not 
                        later than 35 years after the scheduled date of 
                        the start of commercial operations of the 
                        eligible project.
                    ``(C) Sources of repayment funds.--The sources of 
                funds for scheduled loan repayments under this 
                subsection shall include--
                            ``(i) the sale of carbon or carbon 
                        compounds;
                            ``(ii) the sale of electricity or 
                        generating capacity;
                            ``(iii) the sale of sequestration services;
                            ``(iv) the sale or transmission of energy;
                            ``(v) revenues associated with energy 
                        efficiency gains; or
                            ``(vi) other dedicated revenue sources.
                    ``(D) Deferred payments.--
                            ``(i) Authorization.--If, at any time 
                        during the 10-year period beginning on the date 
                        of the scheduled start of commercial operation 
                        of an eligible project, the eligible project is 
                        unable to generate sufficient revenues to pay 
                        the scheduled loan repayments of principal or 
                        interest on the secured loan, the Secretary 
                        may, subject to clause (iii), allow the obligor 
                        to add unpaid principal or interest to the 
                        outstanding balance of the secured loan.
                            ``(ii) Interest.--Any payment deferred 
                        under clause (i) shall--
                                    ``(I) continue to accrue interest 
                                in accordance with paragraph (2)(E) 
                                until fully repaid; and
                                    ``(II) be scheduled to be amortized 
                                over the number of years remaining in 
                                the term of the loan in accordance with 
                                subparagraph (B).
                            ``(iii) Criteria.--
                                    ``(I) In general.--Any payment 
                                deferral under clause (i) shall be 
                                contingent on the eligible project 
                                meeting criteria established by the 
                                Secretary.
                                    ``(II) Repayment standards.--The 
                                criteria established under subclause 
                                (I) shall include standards for 
                                reasonable assurance of repayment.
                    ``(E) Prepayment.--
                            ``(i) Use of excess revenues.--At the 
                        discretion of the obligor, any excess revenues 
                        that remain after satisfying scheduled debt 
                        service requirements on the project obligations 
                        and secured loan, and all deposit requirements 
                        under the terms of any trust agreement, bond 
                        resolution, or similar agreement securing 
                        project obligations, may be applied annually to 
                        prepay the secured loan without penalty.
                            ``(ii) Use of proceeds of refinancing.--The 
                        secured loan may be prepaid at any time without 
                        penalty from the proceeds of refinancing from 
                        non-Federal funding sources.
            ``(4) Sale of secured loans.--
                    ``(A) In general.--Subject to subparagraph (B), as 
                soon as practicable after substantial completion of an 
                eligible project and after notifying the obligor, the 
                Board may sell to another entity or reoffer into the 
                capital markets a secured loan for the eligible project 
                if the Board determines that the sale or reoffering can 
                be made on favorable terms.
                    ``(B) Consent of obligor.--In making a sale or 
                reoffering under subparagraph (A), the Board may not 
                change the original terms and conditions of the secured 
                loan without the written consent of the obligor.
            ``(5) Loan guarantees.--
                    ``(A) In general.--The Board may provide a loan 
                guarantee to a lender, in lieu of making a secured 
                loan, under this subsection if the Board determines 
                that the budgetary cost of the loan guarantee is 
                substantially the same as that of a secured loan.
                    ``(B) Terms.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the terms of a guaranteed loan 
                        shall be consistent with the terms for a 
                        secured loan under this subsection.
                            ``(ii) Interest rate; prepayment.--The 
                        interest rate on the guaranteed loan and any 
                        prepayment features shall be established by 
                        negotiations between the obligor and the 
                        lender, with the consent of the Board.
    ``(g) Production Incentive Payments.--
            ``(1) Secured loan.--
                    ``(A) In general.--The Secretary may enter into an 
                agreement with 1 or more obligors to make a secured 
                loan for an eligible project selected under subsection 
                (c)(4) that employs 1 or more advanced climate 
                technologies or systems.
                    ``(B) Production incentive payments.--
                            ``(i) In general.--Amounts loaned to an 
                        obligor under subparagraph (A) shall be made 
                        available in the form of a series of production 
                        incentive payments provided by the Board to the 
                        obligor during a period of not more than 10 
                        years, as determined by the Board, beginning 
                        after the date on which commercial project 
                        operations start at the eligible project.
                            ``(ii) Amount.--Production incentive 
                        payments under clause (i) shall be for an 
                        amount equal to 50 percent of the value of--
                                    ``(I) the energy produced or 
                                transmitted by the eligible project 
                                during the applicable year; or
                                    ``(II) any gains in energy 
                                efficiency achieved by the eligible 
                                project during the applicable year.
            ``(2) Terms and limitations.--
                    ``(A) In general.--A secured loan under this 
                subsection shall be subject to such terms and 
                conditions, including any covenant, representation, 
                warranty, and requirement (including a requirement for 
                an audit) that the Secretary determines to be 
                appropriate.
                    ``(B) Agreement costs.--Subject to subsection 
                (c)(4), the cost of carrying out an agreement entered 
                into under paragraph (1)(A) shall be paid by the 
                Secretary.
                    ``(C) Interest rate.--
                            ``(i) In general.--Subject to clause (ii), 
                        the interest rate on a secured loan under this 
                        subsection shall be established by the 
                        Secretary.
                            ``(ii) Minimum rate.--The interest rate on 
                        a secured loan under this subsection shall not 
                        be less than the current average market yield 
                        on outstanding marketable obligations of the 
                        United States of comparable maturity, as of the 
                        date on which the agreement under paragraph 
                        (1)(A) is executed.
                    ``(D) Security.--The secured loan--
                            ``(i) shall be payable, in whole or in 
                        part, from dedicated revenue sources generated 
                        by the eligible project;
                            ``(ii) shall include a rate covenant, 
                        coverage requirement, or similar security 
                        feature supporting the eligible project 
                        obligations; and
                            ``(iii) may have a lien on revenues 
                        described in clause (i), subject to any lien 
                        securing eligible project obligations.
                    ``(E) Rights of third-party creditors.--
                            ``(i) Against federal government.--A third-
                        party creditor of the obligor shall not have 
                        any right against the Federal Government with 
                        respect to any payments due to the Federal 
                        Government under the agreement entered into 
                        under paragraph (1)(A).
                            ``(ii) Assignment.--An obligor may assign 
                        production incentive payments to 1 or more 
                        lenders or to a trustee on behalf of the 
                        lenders.
                    ``(F) Subordination.--A secured loan under this 
                subsection shall be subordinate to senior private debt 
                issued by a lender for the eligible project.
                    ``(G) Nonrecourse status.--A secured loan under 
                this subsection shall be nonrecourse to the obligor in 
                the event of bankruptcy, insolvency, or liquidation of 
                the eligible project.
                    ``(H) Fees.--The Secretary may impose fees at a 
                level sufficient to cover all or part of the costs to 
                the Federal Government of providing production 
                incentive payments under this subsection.
            ``(3) Repayment.--
                    ``(A) Schedule, terms, and conditions.--The 
                Secretary shall establish a repayment schedule and 
                terms and conditions for each secured loan under this 
                subsection based on the projected cash flow from 
                revenues of the eligible project.
                    ``(B) Repayment schedule.--Scheduled repayments of 
                principal or interest on a secured loan under this 
                subsection shall--
                            ``(i) commence not later than 5 years after 
                        the date on which the last production incentive 
                        payment is made by the Board under paragraph 
                        (1)(B); and
                            ``(ii) be completed, with interest, not 
                        later than 10 years after the date on which the 
                        last production incentive payment is made.
                    ``(C) Sources of repayment funds.--The sources of 
                funds for scheduled loan repayments under this 
                subsection include--
                            ``(i) the sale of electricity or generating 
                        capacity;
                            ``(ii) the sale or transmission of energy;
                            ``(iii) revenues associated with energy 
                        efficiency gains; or
                            ``(iv) other dedicated revenue sources.
                    ``(D) Deferred payments.--
                            ``(i) Authorization.--If, at any time 
                        during the 10-year period beginning on the date 
                        on which commercial operations of the eligible 
                        project start, the eligible project is unable 
                        to generate sufficient revenues to pay the 
                        scheduled loan repayments of principal or 
                        interest on a secured loan under this 
                        subsection, the Secretary may, subject to 
                        criteria established by the Secretary 
                        (including standards for reasonable assurances 
                        of repayment), allow the obligor to add unpaid 
                        principal and interest to the outstanding 
                        balance of the secured loan.
                            ``(ii) Interest.--Any payment deferred 
                        under clause (i) shall--
                                    ``(I) continue to accrue interest 
                                in accordance with paragraph (2)(C) 
                                until fully repaid; and
                                    ``(II) be scheduled to be amortized 
                                over the number of years remaining in 
                                the term of the loan in accordance with 
                                subparagraph (B).
                    ``(E) Prepayment.--
                            ``(i) Use of excess revenues.--At the 
                        discretion of the obligor, any excess revenues 
                        that remain after satisfying scheduled debt 
                        service requirements on the eligible project 
                        obligations and the secured loan, and all 
                        deposit requirements under the terms of any 
                        trust agreement, bond resolution, or similar 
                        agreement securing eligible project 
                        obligations, may be applied annually to prepay 
                        loans pursuant to an agreement entered into 
                        under paragraph (1)(A) without penalty.
                            ``(ii) Use of proceeds of refinancing.--The 
                        secured loan may be prepaid at any time without 
                        penalty from the proceeds of refinancing from 
                        non-Federal funding sources.
            ``(4) Sale of secured loans.--
                    ``(A) In general.--Subject to subparagraph (B), as 
                soon as practicable after the date on which the last 
                production incentive payment is made to the obligor 
                under paragraph (1)(B) and after notifying the obligor, 
                the Secretary may sell to another entity or reoffer 
                into the capital markets a secured loan for the 
                eligible project if the Secretary determines that the 
                sale or reoffering can be made on favorable terms.
                    ``(B) Consent required.--In making a sale or 
                reoffering under subparagraph (A), the Board may not 
                change the original terms and conditions of the secured 
                loan without the written consent of the obligor.
    ``(h) Other Credit-Based Financial Assistance Mechanisms for 
Eligible Projects.--
            ``(1) In general.--
                    ``(A) Agreements.--The Board may enter into an 
                agreement with 1 or more obligors to make a secured 
                loan to the obligors for eligible projects selected 
                under subsection (c) that employ advanced technologies 
                or systems, the proceeds of which shall be used to--
                            ``(i) finance eligible project costs; or
                            ``(ii) enhance eligible project revenues.
                    ``(B) Credit-based financial assistance.--Amounts 
                made available as a secured loan under subparagraph (A) 
                shall be provided by the Board to the obligor in the 
                form of credit-based financial assistance mechanisms 
                that are not otherwise specifically provided for in 
                subsections (d) through (g), as determined to be 
                appropriate by the Secretary.
            ``(2) Terms and limitations.--
                    ``(A) In general.--A secured loan under this 
                subsection shall be subject to such terms and 
                conditions (including any covenants, representations, 
                warranties, and requirements (including a requirement 
                for an audit)) as the Secretary determines to be 
                appropriate.
                    ``(B) Maximum amount.--Subject to subsection 
                (c)(5), the total amount of the secured loan under this 
                subsection shall not exceed 50 percent of the 
                reasonably anticipated eligible project costs.
                    ``(C) Period of availability.--The Board may enter 
                into a contract with the obligor to provide credit-
                based financial assistance to an eligible project 
                during the period--
                            ``(i) beginning on the date that the 
                        financial structure of the eligible project is 
                        established; and
                            ``(ii) ending on the date of the start of 
                        construction of the eligible project.
                    ``(D) Agreement costs.--Subject to subsection 
                (c)(4)(E), the cost of carrying out an agreement 
                entered into under paragraph (1)(A) shall be paid by 
                the Board.
                    ``(E) Interest rate.--
                            ``(i) In general.--Subject to clause (ii), 
                        the interest rate on a secured loan under this 
                        subsection shall be established by the Board.
                            ``(ii) Minimum rate.--The interest rate on 
                        a secured loan under this subsection shall not 
                        be less than the current average market yield 
                        on outstanding marketable obligations of the 
                        United States of comparable maturity, as of the 
                        date of the execution of the secured loan 
                        agreement.
                    ``(F) Security.--The secured loan--
                            ``(i) shall be payable, in whole or in 
                        part, from dedicated revenue sources generated 
                        by the eligible project;
                            ``(ii) shall include a rate covenant, 
                        coverage requirement, or similar security 
                        feature supporting the eligible project 
                        obligations; and
                            ``(iii) may have a lien on revenues 
                        described in clause (i), subject to any lien 
                        securing eligible project obligations.
                    ``(G) Rights of third-party creditors.--
                            ``(i) Against federal government.--A third-
                        party creditor of the obligor shall not have 
                        any right against the Federal Government with 
                        respect to any payments due to the Federal 
                        Government under this subsection.
                            ``(ii) Assignment.--An obligor may assign 
                        payments made pursuant to an agreement to 
                        provide credit-based financial assistance under 
                        this subsection to 1 or more lenders or to a 
                        trustee on behalf of the lenders.
                    ``(H) Subordination.--A secured loan under this 
                subsection shall be subordinate to senior private debt 
                issued by a lender for the eligible project.
                    ``(I) Nonrecourse status.--A secured loan under 
                this subsection shall be nonrecourse to the obligor in 
                the event of bankruptcy, insolvency, or liquidation of 
                the eligible project.
                    ``(J) Fees.--The Board may establish fees at a 
                level sufficient to cover all or part of the costs to 
                the Federal Government of providing credit-based 
                financial assistance under this subsection.
            ``(3) Repayment.--
                    ``(A) Schedule and terms and conditions.--The Board 
                shall establish a repayment schedule and terms and 
                conditions for each secured loan under this subsection 
                based on the projected cash flow from eligible project 
                revenues.
                    ``(B) Repayment schedule.--Scheduled loan 
                repayments of principal or interest on a secured loan 
                under this subsection shall--
                            ``(i) commence not later than 5 years after 
                        the date of substantial completion of the 
                        eligible project; and
                            ``(ii) be completed, with interest, not 
                        later than 35 years after the date of 
                        substantial completion of the eligible project.
                    ``(C) Sources of repayment funds.--The sources of 
                funds for scheduled loan repayments under this 
                subsection shall include--
                            ``(i) the sale of electricity or generating 
                        capacity;
                            ``(ii) the sale or transmission of energy;
                            ``(iii) revenues associated with energy 
                        efficiency gains; or
                            ``(iv) other dedicated revenue sources, 
                        such as carbon sequestration.
                    ``(D) Deferred payments.--
                            ``(i) Authorization.--If, at any time 
                        during the 10-year period beginning on the date 
                        of the start of commercial operations of the 
                        eligible project, the eligible project is 
                        unable to generate sufficient revenues to pay 
                        the scheduled loan repayments of principal or 
                        interest on a secured loan under this 
                        subsection, the Secretary may, subject to 
                        criteria established by the Secretary 
                        (including standards for reasonable assurances 
                        of repayment), allow the obligor to add unpaid 
                        principal and interest to the outstanding 
                        balance of the secured loan.
                            ``(ii) Interest.--Any payment deferred 
                        under clause (i) shall--
                                    ``(I) continue to accrue interest 
                                in accordance with paragraph (2)(E) 
                                until fully repaid; and
                                    ``(II) be scheduled to be amortized 
                                over the number of years remaining in 
                                the term of the loan in accordance with 
                                subparagraph (B).
                    ``(E) Prepayment.--
                            ``(i) Use of excess revenues.--At the 
                        discretion of the obligor, any excess revenues 
                        that remain after satisfying scheduled debt 
                        service requirements on the eligible project 
                        obligations and secured loan, and all deposit 
                        requirements under the terms of any trust 
                        agreement, bond resolution, or similar 
                        agreement securing eligible project 
                        obligations, may be applied annually to prepay 
                        a secured loan under this subsection without 
                        penalty.
                            ``(ii) Use of proceeds of refinancing.--A 
                        secured loan under this subsection may be 
                        prepaid at any time without penalty from the 
                        proceeds of refinancing from non-Federal 
                        funding sources.
            ``(4) Sale of secured loans.--
                    ``(A) In general.--Subject to subparagraph (B), as 
                soon as practicable after the start of commercial 
                operations of an eligible project and after notifying 
                the obligor, the Board may sell to another entity or 
                reoffer into the capital markets a secured loan for the 
                eligible project under this subsection if the Secretary 
                determines that the sale or reoffering can be made on 
                favorable terms.
                    ``(B) Consent of obligor.--In making a sale or 
                reoffering under subparagraph (A), the Board may not 
                change the original terms and conditions of the secured 
                loan without the written consent of the obligor.
    ``(i) Federal, State, and Local Regulatory Requirements.--The 
provision of Federal financial assistance to an eligible project under 
this section shall not--
            ``(1) relieve any recipient of the assistance of any 
        obligation to obtain any required Federal, State, or local 
        regulatory requirement, permit, or approval with respect to the 
        eligible project;
            ``(2) limit the right of any unit of Federal, State, or 
        local government to approve or regulate any rate of return on 
        private equity invested in the eligible project; or
            ``(3) otherwise supersede any Federal, State, or local law 
        (including any regulation) applicable to the construction or 
        operation of the eligible project.
    ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $400,000,000 for each of fiscal 
years 2006 through 2010, to remain available until expended.
    ``(k) Termination of Authority.--The authority provided by this 
section terminates effective December 31, 2010.''.

SEC. 4. NATIONAL CLIMATE REGISTRY INITIATIVE.

     Title XVI of the Energy Policy Act of 1992 (42 U.S.C. 13381 et 
seq.) (as amended by section 3) is amended by adding at the end the 
following:

``SEC. 1612. NATIONAL CLIMATE REGISTRY INITIATIVE.

    ``(a) Purpose.--The purpose of this section is to establish a new 
national greenhouse gas registry--
            ``(1) to further encourage voluntary efforts, by persons 
        and entities conducting business and other operations in the 
        United States, to implement actions, projects, and measures 
        that reduce greenhouse gas emissions;
            ``(2) to encourage those persons and entities to monitor 
        and voluntarily report direct or indirect greenhouse gas 
        emissions from--
                    ``(A) the facilities of the persons and entities; 
                and
                    ``(B) to the maximum extent practicable, other 
                types of sources;
            ``(3) to adopt a procedure and uniform format for use by 
        the persons and entities in establishing and voluntarily 
        reporting greenhouse gas emission baselines in connection with, 
        and furtherance of, reductions of greenhouse gas emissions;
            ``(4) to provide verification mechanisms to ensure, for 
        participants and the public, a high level of confidence in 
        accuracy and verifiability of reports made to a national 
        greenhouse gas registry;
            ``(5) to encourage persons and entities, through voluntary 
        agreements entered into with the Secretary, to annually report 
        greenhouse gas emissions from the facilities of the persons and 
        entities;
            ``(6) to provide to persons and entities that enter into 
        those voluntary agreements and reduce greenhouse gas emissions 
        transferable credits that may be used for any incentive, 
        market-based, or regulatory program determined by Congress to 
        be necessary and feasible to reduce the risk of climate change 
        and effects of climate change; and
            ``(7) to provide for the registration, transfer, and 
        tracking of the ownership or holding of those credits for 
        purposes of facilitating voluntary trading among persons and 
        entities.
    ``(b) Definitions.--In this section:
            ``(1) Committee.--The term `Committee' means the 
        Interagency Coordinating Committee on Climate Change Technology 
        established under section 1610(c)(1).
            ``(2) Entity.--The term `entity' means--
                    ``(A) a public person;
                    ``(B) a Federal, State, interstate, or local 
                governmental agency, department, or corporation; and
                    ``(C) any other publicly-owned organization.
            ``(3) Facility.--The term `facility' means 2 or more 
        buildings, structures, or installations, or 2 or more units of 
        a building, structure, or installation, that--
                    ``(A) are located on contiguous or adjacent parcels 
                of land;
                    ``(B) are under common control of the same person 
                or entity; and
                    ``(C) are a source of greenhouse gas emissions in 
                excess of a limitation established under this section.
            ``(4) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) an anthropogenic gaseous constituent of the 
                atmosphere (including carbon dioxide, methane, nitrous 
                oxide, hydrofluorocarbons, perfluorocarbons, and sulfur 
                hexafluoride) that--
                            ``(i) absorbs and reemits infrared 
                        radiation; and
                            ``(ii) influences climate; and
                    ``(B) an anthropogenic aerosol (such as black soot) 
                that--
                            ``(i) absorbs solar radiation; and
                            ``(ii) influences climate.
            ``(5) Person.--The term `person' means an individual, 
        corporation, association, joint venture, cooperative, or 
        partnership.
            ``(6) Reduction.--The term `reduction' means an action, 
        project, or measure carried out, within or outside the United 
        States, by a person or entity to directly or indirectly reduce, 
        avoid, or sequester emissions of 1 or more greenhouse gases.
            ``(7) Registry.--The term `registry' means the national 
        greenhouse gas registry established under subsection (c)(1)(A).
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Energy, acting through the Administrator of the Energy 
        Information Administration.
    ``(c) National Greenhouse Gas Registry.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 1 year after the 
                enactment of this section, the President, in 
                consultation with the Committee, shall establish a 
                national greenhouse gas registry.
                    ``(B) Administration.--The registry shall be 
                administered by the Secretary in accordance with 
                applicable provisions of--
                            ``(i) this section; and
                            ``(ii) the Department of Energy 
                        Organization Act (42 U.S.C. 7101 et seq.).
            ``(2) Designation.--On establishment of the registry under 
        paragraph (1) and issuance of the guidelines in accordance with 
        subsection (d)(1), the registry shall serve as the depository 
        for the United States for data on greenhouse gas emissions and 
        emission reductions that are collected from and reported by 
        persons or entities that own, or conduct business and other 
        operations at, 1 or more facilities in the United States.
            ``(3) Participation.--
                    ``(A) In general.--Any person or entity conducting 
                business or other activities in the United States may, 
                in accordance with the guidelines issued under 
                subsection (d)(1) and the conditions described in 
                subparagraph (B), voluntarily report to the registry--
                            ``(i) total levels of greenhouse gas 
                        emissions of the person or entity; and
                            ``(ii) certified emission reductions of the 
                        person or entity.
                    ``(B) Conditions.--The conditions described in this 
                subparagraph are that--
                            ``(i) with respect to a report described in 
                        subparagraph (A)(i), the report represents a 
                        complete and accurate inventory of--
                                    ``(I) greenhouse gas emissions from 
                                facilities of, and operations conducted 
                                by, the person or entity within the 
                                United States; and
                                    ``(II) any domestic or 
                                international greenhouse gas emission 
                                reduction activities of the person or 
                                entity; and
                            ``(ii) with respect to a report described 
                        in subparagraph (A)(ii), the reductions have 
                        been verified by an independent third-party or 
                        other process--
                                    ``(I) in accordance with the 
                                guidelines issued under subsection 
                                (d)(1)(B)(ii); or
                                    ``(II) by other means determined to 
                                be appropriate by the Secretary.
            ``(4) Confidentiality of information.--Trade secret 
        information, and commercial and financial information that is 
        privileged and confidential, that is submitted to the registry 
        under paragraph (3) or otherwise made available under any other 
        provision of this section may be disclosed by the registry only 
        in accordance with section 552(b)(4) of title 5, United States 
        Code.
    ``(d) Implementation.--
            ``(1) Guidelines.--
                    ``(A) In general.--Not later than 1 year after the 
                date of establishment of the registry under subsection 
                (c)(1)(A), the Secretary, in consultation with the 
                Committee, shall issue guidelines establishing 
                procedures for the administration of the registry.
                    ``(B) Contents.--The guidelines issued under 
                subparagraph (A) shall include--
                            ``(i) means and methods by which a person 
                        or entity may determine, quantify, and report, 
                        by appropriate and credible means, annual 
                        baseline emission levels of the person or 
                        entity, taking into consideration any reports 
                        made by the person or entity under other 
                        Federal programs;
                            ``(ii) procedures for the use of an 
                        independent third-party or other effective 
                        verification process for emission levels and 
                        reductions reported under subsection (c)(3)(A) 
                        that are developed--
                                    ``(I) in accordance with authority 
                                available to the Secretary under this 
                                section and other applicable provisions 
                                of law; and
                                    ``(II) by taking into 
                                consideration, to the maximum extent 
                                practicable--
                                            ``(aa) the costs, risks, 
                                        and voluntary nature of the 
                                        registry; and
                                            ``(bb) other relevant 
                                        factors;
                            ``(iii)(I) a range of reference cases for 
                        reporting of project-based emission reductions 
                        in various sectors; and
                            ``(II) any benchmark and default 
                        methodologies and practices that may be used as 
                        reference cases for eligible projects;
                            ``(iv) safeguards--
                                    ``(I) to prevent and address 
                                duplicative reporting (including 
                                inadvertent reporting) of the same 
                                greenhouse gas emissions or emission 
                                reductions by more than 1 reporting 
                                person or entity; and
                                    ``(II) to provide for corrections 
                                and adjustments in data, as necessary, 
                                in cases of duplicative reporting;
                            ``(v) procedures and criteria for the 
                        review and registration of ownership or holding 
                        of all or any portion of a reported, 
                        independently-verified emission reduction 
                        project, action, or measure;
                            ``(vi) measures, or a process, for 
                        providing to a person or entity participating 
                        in the registry such appropriate number of 
                        transferable credits with unique serial numbers 
                        as reflects the verified greenhouse gas 
                        emission reductions accomplished by the person 
                        or entity; and
                            ``(vii) such accounting provisions as are 
                        necessary to permit any change in registration 
                        or transfer of ownership of a credit described 
                        in clause (vi) that results from a voluntary, 
                        private transaction between 1 or more persons 
                        or entities, including the requirement that the 
                        Secretary shall be notified of any such change 
                        or transfer not later than 30 days after the 
                        date on which the change or transfer is 
                        effectuated.
            ``(2) Consideration.--In developing the guidelines under 
        paragraph (1), the Secretary shall take into consideration--
                    ``(A)(i) the guidelines for voluntary emission 
                reporting issued under section 1605(b), as in effect as 
                of the date of enactment of this section;
                    ``(ii) the experience of the Secretary in applying 
                those guidelines; and
                    ``(iii) any revision to those guidelines initiated 
                by the Secretary in response to any directive of the 
                President issued before the date of enactment of this 
                section;
                    ``(B) protocols and guidelines developed under any 
                Federal, State, local, or private voluntary greenhouse 
                gas emission reporting or reduction program;
                    ``(C) the differences between, and potential 
                uniqueness of the facilities, operations, and business 
                and other relevant practices of, persons and entities 
                in the private and public sectors that the Secretary 
                expects to participate in the registry;
                    ``(D) issues, such as comparability, that are 
                associated with the reporting of emission baselines and 
                reductions for various projects and activities;
                    ``(E) the appropriate level or threshold of 
                emissions applicable to a facility, project, or 
                activity of a person or entity that may be reasonably 
                and cost-effectively identified, measured, and 
                voluntarily reported, taking into consideration--
                            ``(i) different types of facilities, 
                        projects, and activities; and
                            ``(ii) the de minimis nature, and sources, 
                        of certain emissions; and
                    ``(F) any other factor that the Secretary 
                determines to be appropriate.
            ``(3) Experts and consultants.--
                    ``(A) In general.--In accordance with section 3109 
                of title 5, United Sates Code, the Secretary and any 
                member of the Committee may secure the services of 1 or 
                more experts or consultants in the private and 
                nonprofit sectors in the areas of greenhouse gas 
                measurement, certification, and emission trading.
                    ``(B) Grants, contracts, and agreements.--In 
                securing a service under subparagraph (A), the 
                Secretary or the member of the Committee securing the 
                service may use any grant, contract, cooperative 
                agreement, or other arrangement authorized by 
                applicable law and available to the Secretary or the 
                member of the Committee.
            ``(4) Transferability of prior reports.--An emission report 
        or reduction made by a person or entity under section 1605(b), 
        or under any other Federal or State voluntary greenhouse gas 
        emission reduction program, may be independently verified and 
        reported to the registry in accordance with the guidelines 
        issued under paragraph (1).
            ``(5) Public comment.--The Secretary shall--
                    ``(A) make the guidelines issued under paragraph 
                (1) available in draft form for public notice and 
                opportunity for comment for a period of at least 90 
                days; and
                    ``(B) after that 90-day period, adopt the 
                guidelines for use in implementing this section.
            ``(6) Review and revision.--The Secretary, through the 
        Committee, shall periodically review and, as necessary, revise, 
        in accordance with paragraph (5), the guidelines issued under 
        paragraph (1).
    ``(e) Voluntary Agreements.--
            ``(1) In general.--Any person or entity may voluntarily 
        enter into an agreement with the Secretary to provide that--
                    ``(A) the person or entity (or any successor of the 
                person or entity) shall annually report to the registry 
                the greenhouse gas emissions of the person or entity 
                (including the sources of those emissions) that--
                            ``(i) are from applicable facilities and 
                        operations of the person or entity; and
                            ``(ii) generate net emissions at a level 
                        above any de minimis threshold specified in the 
                        guidelines issued by the Secretary under 
                        subsection (d)(1);
                    ``(B) the person or entity (or any successor of the 
                person or entity)--
                            ``(i) commits to report to, and participate 
                        in, the registry for a period of at least 5 
                        calendar years; and
                            ``(ii) any agreement for such a commitment 
                        may be renewed by consent of the person or 
                        entity and the Secretary;
                    ``(C) for purposes of measuring performance under 
                the agreement, the person or entity (or any successor 
                of the person or entity) and the Secretary shall 
                determine--
                            ``(i) in accordance with the guidelines 
                        issued under subsection (d)(1), a baseline 
                        emission level of the person or entity for a 
                        representative period preceding the effective 
                        date of the agreement; and
                            ``(ii) emission reduction goals of the 
                        person or entity, taking into consideration--
                                    ``(I) the baseline emission level 
                                determined under clause (i); and
                                    ``(II) any relevant economic and 
                                operational factors that may affect the 
                                baseline emission level throughout the 
                                term of the agreement; and
                    ``(D) for certified emission reductions made 
                relative to the baseline emission level, the Secretary 
                shall provide, to the person or entity, at the request 
                of the person or entity, transferable credits with 
                unique assigned serial numbers that--
                            ``(i) may be used by the person or entity 
                        toward meeting emission reduction goals 
                        established under the agreement;
                            ``(ii) may be transferred, through a 
                        voluntary, private transaction, to any other 
                        person or entity; or
                            ``(iii) shall be applicable toward any 
                        incentive, market-based, or regulatory program 
                        determined by Congress to be necessary and 
                        feasible to reduce the risk of climate change 
                        and effects of climate change.
            ``(2) Public notice and comment.--
                    ``(A) In general.--Not later than 30 days before 
                the date on which an agreement described in paragraph 
                (1) is finalized, the Secretary shall--
                            ``(i) publish in the Federal Register a 
                        notice of finalization for the agreement; and
                            ``(ii) provide an opportunity for written 
                        public comment.
                    ``(B) Comments.--The Secretary--
                            ``(i) shall review each comment received 
                        under subparagraph (A)(ii); and
                            ``(ii) after reviewing the comments, may--
                                    ``(I) withdraw the agreement 
                                described in paragraph (1); or
                                    ``(II) agree with each person or 
                                entity that is a party to the agreement 
                                to--
                                            ``(aa) revise and finalize 
                                        the agreement; or
                                            ``(bb) finalize the 
                                        agreement without substantive 
                                        change.
                    ``(C) Availability.--An agreement described in 
                paragraph (1) shall be--
                            ``(i) maintained in the registry; and
                            ``(ii) made available to the public.
            ``(3) Emissions in excess.--If a person or entity fails to 
        certify that emissions from applicable facilities of the person 
        or entity are less than the emission reduction goals of the 
        person or entity contained in an agreement described in 
        paragraph (1), the person or entity shall take such actions as 
        are necessary to reduce the emissions of the person or entity, 
        including--
                    ``(A) the redemption of any transferable credits of 
                the person or entity that were acquired in previous 
                years;
                    ``(B) the acquisition, through private, voluntary 
                agreements, of transferable credits from other persons 
                or entities participating in the registry; or
                    ``(C) the undertaking of additional emission 
                reduction activities in subsequent years, as determined 
                in accordance with an agreement between the person or 
                entity and the Secretary.
            ``(4) No new authority.--Nothing in this subsection 
        provides any regulatory or other authority regarding the 
        reporting of greenhouse gas emissions or reductions in those 
        emissions.
    ``(f) Measurement and Verification.--
            ``(1) Standards and practices.--
                    ``(A) In general.--The Secretary of Commerce, 
                acting through the Director of the National Institute 
                of Standards and Technology and in consultation with 
                the Secretary, shall develop standards and best 
                practices for accurate measurement and verification of 
                greenhouse gas emissions and emission reductions.
                    ``(B) Components.--The standards and best practices 
                developed under subparagraph (A) shall address the need 
                for--
                            ``(i) standardized measurement and 
                        verification practices for reports made by all 
                        persons and entities participating in the 
                        registry, taking into account--
                                    ``(I) protocols and standards 
                                already in use by persons or entities 
                                desiring to participate in the 
                                registry;
                                    ``(II) boundary issues, such as 
                                leakage and shifted use;
                                    ``(III) avoidance of duplicative 
                                counting and reporting of greenhouse 
                                gas emissions and emission reductions; 
                                and
                                    ``(IV) such other factors as the 
                                Secretary of Commerce and the Secretary 
                                determine to be appropriate;
                            ``(ii) measurement and verification of 
                        actions taken to reduce, avoid, or sequester 
                        greenhouse gas emissions;
                            ``(iii) measurement, in coordination with 
                        the Secretary of Agriculture, of the results of 
                        the use of carbon sequestration and carbon 
                        recapture technologies, including--
                                    ``(I) organic soil carbon 
                                sequestration practices; and
                                    ``(II) forest preservation and 
                                reforestation activities that 
                                adequately address the issues of 
                                permanence, leakage, and verification; 
                                and
                            ``(iv) such other measurement and 
                        verification standards as the Secretary of 
                        Commerce, the Secretary of Agriculture, and the 
                        Secretary determine to be appropriate.
            ``(2) Public comment.--The Secretary of Commerce shall--
                    ``(A) make the standards and best practices 
                developed under paragraph (1)(A) available in draft 
                form for public notice and opportunity for comment for 
                a period of at least 90 days; and
                    ``(B) as soon as practicable after the end of the 
                90-day period, in coordination with the Secretary, 
                adopt the standards and best practices for use in 
                implementing this section.
    ``(g) Certified Independent Third Parties.--
            ``(1) Certification.--The Secretary and the Secretary of 
        Commerce, acting through the Director of the National Institute 
        of Standards, shall develop standards for certification of 
        parties to verify the accuracy and reliability of reports 
        submitted under this section, including standards that--
                    ``(A) prohibit a certified party from participating 
                in the registry through the ownership or transaction of 
                transferable credits recorded in the registry;
                    ``(B) prohibit the receipt by a certified party of 
                compensation in the form of a commission received by 
                the certified party based on the quantity of emission 
                reductions verified by the certified party; and
                    ``(C) authorize certified parties to enter into 
                agreements with persons engaged in trading of 
                transferable credits recorded in the registry.
            ``(2) List of certified parties.--The Secretary shall 
        maintain and, on request of the public or a person or entity 
        making a report under this section, make available, a list of 
        certified parties described in paragraph (1), and clients of 
        the certified parties, that submit 1 or more reports under this 
        section.
    ``(h) Report to Congress.--
            ``(1) In general.--Not later than 1 year after the date of 
        issuance of guidelines under subsection (d)(1), and biennially 
        thereafter, the President, acting through the Committee, shall 
        submit to Congress a report on the status of the registry.
            ``(2) Contents.--The report shall contain--
                    ``(A) an assessment, expressed in terms of 
                geographic locations and national emissions 
                represented, of the level of participation in the 
                registry;
                    ``(B) an assessment of the effectiveness of 
                voluntary reporting agreements in enhancing 
                participation in the registry;
                    ``(C) an assessment of the extent of use of the 
                registry for emission trading and other purposes;
                    ``(D) an assessment of progress toward individual 
                and national emission reduction goals; and
                    ``(E)(i) an inventory of administrative actions 
                implemented, or planned to be implemented, to improve 
                the registry or the guidelines issued under subsection 
                (d)(1); and
                    ``(ii) such recommendations for legislation to 
                modify this section or section 1605 as the President 
                determines to be necessary to carry out this section.
    ``(i) Review by National Academy of Sciences.--The Secretary, in 
consultation with the Committee, shall--
            ``(1) not later than 1 year after the date of issuance of 
        the guidelines under subsection (d)(1), enter into an agreement 
        with the National Academy of Sciences under which the National 
        Academy of Sciences shall conduct, not later than 180 days 
        after the date of execution of the agreement, a review of the 
        scientific and technological methods, assumptions, and 
        standards used by the Secretary and the Secretary of Commerce 
        in developing the guidelines; and
            ``(2) on completion of the review under subparagraph (A), 
        submit to the President and Congress a report that describes 
        the results of the review (including any recommendations of the 
        Secretary).
    ``(j) Termination of Authority.--The authority provided by this 
section terminates effective December 31, 2010.''.
                                 <all>