[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1590 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 1590
To reduce greenhouse gas emissions and protect the climate.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 20, 2007
Mr. Waxman (for himself, Mr. Allen, Mr. LoBiondo, Ms. Matsui, Mr.
Wexler, Mr. Hinchey, Mr. Pallone, Mr. Berman, Ms. Shea-Porter, Mr.
Chandler, Mr. Meehan, Ms. McCollum of Minnesota, Mr. Nadler, Ms. Lee,
Mr. Blumenauer, Mr. Inslee, Mr. Schiff, Mrs. Tauscher, Mrs. Maloney of
New York, Mr. Shays, Mr. Moran of Virginia, Mr. Ellison, Mr. Gutierrez,
Mr. Grijalva, Mrs. Davis of California, Mr. Clay, Mr. Honda, Ms.
Woolsey, Ms. Harman, Ms. Schakowsky, Mr. Cohen, Mr. Cleaver, Mr.
Carnahan, Mr. Payne, Mr. McNulty, Mr. Stark, Mr. Sestak, Mr. Welch of
Vermont, Mr. Cummings, Ms. Schwartz, Mr. Doggett, Ms. Watson, Mr. Smith
of Washington, Mr. Lynch, Mr. Markey, Mr. Sherman, Mr. McGovern, Mr.
Michaud, Ms. Baldwin, Mr. Olver, Mr. Weiner, Mr. Jefferson, Mr. Hodes,
Mr. Lantos, Mr. Sires, Mr. Yarmuth, Mr. Abercrombie, Mr. Rothman, Ms.
Waters, Mr. Van Hollen, Mr. Hastings of Florida, Mrs. Capps, Mr.
Delahunt, Mr. Farr, Mr. Filner, Mr. Frank of Massachusetts, Ms.
Jackson-Lee of Texas, Mrs. Jones of Ohio, Mr. Kennedy, Mr. Kucinich,
Mr. Langevin, Mr. Larson of Connecticut, Mr. Lewis of Georgia, Mr.
George Miller of California, Mrs. Napolitano, Mr. Neal of
Massachusetts, Ms. Loretta Sanchez of California, Mr. Serrano, Mr.
Thompson of California, Ms. Zoe Lofgren of California, Mr. Davis of
Illinois, Mr. Wynn, Mr. Fattah, Ms. Solis, Mr. Sarbanes, Mr. Murphy of
Connecticut, Mr. Ackerman, Mrs. Lowey, Ms. DeLauro, Mr. Dicks, Mr.
Towns, Ms. DeGette, Ms. Berkley, Mr. Kind, Mr. Bishop of New York, Mr.
Israel, Ms. Corrine Brown of Florida, Mr. Scott of Virginia, Mr.
Johnson of Georgia, Mr. Klein of Florida, Mr. Brady of Pennsylvania,
Mr. Conyers, Mr. Jackson of Illinois, Ms. Roybal-Allard, Ms. Castor,
Ms. Hirono, Mr. Emanuel, Mr. McNerney, Mr. Thompson of Mississippi, Ms.
Linda T. Sanchez of California, Mr. Pascrell, Mr. Rangel, Ms.
Millender-McDonald, Mr. DeFazio, Ms. Moore of Wisconsin, Ms. Wasserman
Schultz, Mr. Meek of Florida, Ms. Eddie Bernice Johnson of Texas, Mr.
McDermott, Ms. Carson, Mr. Becerra, Ms. Eshoo, Mr. Hall of New York,
Mr. Capuano, Mr. Crowley, Mr. Tierney, Mr. Engel, and Mr. Wu)
introduced the following bill; which was referred to the Committee on
Energy and Commerce, and in addition to the Committee on Foreign
Affairs, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To reduce greenhouse gas emissions and protect the climate.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Safe Climate Act of 2007''.
SEC. 2. FINDING; SENSE OF CONGRESS.
(a) Findings.--The Congress finds as follows:
(1) The United States is a party to the 1992 United Nations
Framework Convention on Climate Change, which has the objective
of stabilizing greenhouse gas concentrations in the atmosphere
at a level that would prevent ``dangerous anthropogenic
interference'' with the climate system.
(2) To achieve this objective, the increase in global mean
surface temperature should not exceed 2C (3.6F) above pre-
industrial temperature.
(3) The risks associated with a temperature increase above
2C (3.6F) are grave, including the disintegration of the
Greenland ice sheet, which, if it were to melt completely,
would raise global average sea level by approximately 23 feet,
devastating many of the world's coastal areas and population
centers.
(4) The Intergovernmental Panel on Climate Change projects
that temperatures will rise between 1.8C to 4.0C (3.2F to
7.2F) by the end of the century, under a range of expected
emissions trends.
(5) Serious global warming impacts have already been
observed in the United States and worldwide, including
increases in heat waves and other extreme weather events, rise
in sea level, retreat of glaciers and polar ice, decline in
mountain snowpack, increased drought and wildfires, stronger
hurricanes, ocean acidification, extensive coral bleaching,
migrations and shifts in the yearly cycles of plants and
animals, and the spread of infectious diseases.
(6) Scientists project that under a mid-range estimate of
global warming, by 2050, roughly 25 percent of animal and plant
species will be committed to extinction.
(7) Decisive action is needed to minimize the many dangers
posed by global warming.
(8) The timing of such action is critical, given that
greenhouse gases can persist in the atmosphere for more than a
century.
(9) Reductions in emissions from today's levels must begin
within a decade to preserve the ability to stabilize
atmospheric greenhouse gas concentrations at levels likely to
protect against a temperature rise above 2C (3.6F).
(10) With only 5 percent of the world population, the
United States emits approximately 20 percent of the world's
total greenhouse gas emissions and must be a leader in
addressing global warming.
(11) Existing energy efficiency and clean, renewable energy
technologies can reduce global warming pollution, while saving
consumers money, reducing our dependence on oil, enhancing
national security, cleaning the air, and protecting pristine
places from drilling and mining.
(b) Sense of Congress.--It is the sense of the Congress that the
United States should participate in negotiations under the 1992 United
Nations Framework Convention on Climate Change with the objective of
securing United States participation in agreements that--
(1) establish mitigation commitments by all countries that
are major emitters of greenhouse gases, consistent with the
principle of common but differentiated responsibilities;
(2) achieve reductions in global greenhouse gas emissions
at a pace and levels sufficient to avoid dangerous interference
with the earth's climate; and
(3) advance and protect the economic and national security
interests of the United States.
SEC. 3. AMENDMENTS TO THE CLEAN AIR ACT.
The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at
the end the following:
``TITLE VII--GREENHOUSE GAS EMISSIONS
``SEC. 701. EMISSION REDUCTION TARGETS.
``Not later than 2 years after the date of enactment of this
section, the Administrator shall promulgate annual emission reduction
targets for each calendar year beginning in 2010 and ending in 2050, as
follows:
``(1) In 2010, the quantity of United States greenhouse gas
emissions shall not exceed the quantity of United States
greenhouse gases projected to be emitted in 2009.
``(2) Beginning in 2011, the quantity of United States
greenhouse gas emissions shall be reduced by approximately 2
percent each year, such that the quantity of such emissions in
2020 does not exceed the quantity of United States greenhouse
gases emitted in 1990.
``(3) Beginning in 2021, the quantity of United States
greenhouse gas emissions shall be reduced by approximately 5
percent each year, such that the quantity of such emissions in
2050 does not exceed 20 percent of the quantity of United
States greenhouse gases emitted in 1990.
``SEC. 702. NATIONAL ACADEMIES REVIEW.
``Not later than 5 years after the date of the enactment of this
section, and every 5 years thereafter, the National Academies, acting
through the National Academy of Sciences and the National Research
Council, shall submit a report to the Administrator and the Congress on
the prospects for avoiding dangerous anthropogenic interference with
the climate system and the progress made to date. Such report shall--
``(1) evaluate whether the emission reduction targets
promulgated pursuant to section 701 are likely to be sufficient
to avoid dangerous climate change, taking into account the
actions of other nations;
``(2) include an assessment of whether each of the
following events, and any other indicator of significant global
warming determined by the National Academies, has occurred or
is likely to occur--
``(A) atmospheric greenhouse gas concentrations of
greater than 450 carbon dioxide-equivalent ppm;
``(B) global mean surface temperature increase of
greater than 2C (3.6F) from pre-industrial levels;
``(C) substantial slowing of the Atlantic
thermohaline circulation;
``(D) sea level rise of more than 8 inches;
``(E) ice-free Arctic Ocean in the summer;
``(F) decrease in the area of permafrost to below
50 percent of such area in 2000; and
``(G) loss of over 40 percent of the world's
coverage of coral reefs, due to increased ocean
temperature or acidity; and
``(3) if the National Academies concludes that emission
reduction targets promulgated pursuant to section 701 are not
likely to be sufficient to avoid dangerous climate change, or
that any of the events specified in paragraph (2) has occurred
or is likely to occur--
``(A) identify the needed amount of further
reductions in atmospheric greenhouse gas
concentrations; and
``(B) recommend additional United States and
international actions to further reduce atmospheric
greenhouse gas concentrations.
``SEC. 703. REGULATIONS.
``(a) In General.--The Administrator shall promulgate not later
than 2 years after the date of the enactment of this section, and may
periodically revise, regulations requiring the reduction of United
States greenhouse gas emissions to meet the emission reduction targets
promulgated pursuant to section 701.
``(b) Rulemaking on Recommendations of National Academies.--If the
National Academies submits a recommendation under section 702(3)(B) for
a regulatory action by a Federal department or agency, and such
regulatory action is within the authority of such department or agency
(under law other than this subsection), the head of such department or
agency shall, not later than 2 years after the submission of such
recommendation, finalize a rulemaking--
``(1) to carry out such regulatory action; or
``(2) to explain the reasons for declining to act.
``SEC. 704. MARKET-BASED CAP ON EMISSIONS.
``(a) In General.--The regulations promulgated under section 703(a)
shall--
``(1) impose a cap on the greenhouse gas emissions of
sources and sectors described in subsection (b)(1); and
``(2) allow emissions trading among covered entities.
``(b) Scope.--The regulations promulgated under section 703(a)
shall--
``(1) apply the cap required by subsection (a)(1) to the
sources or sectors of the United States economy with--
``(A) the largest emissions;
``(B) the most cost-effective opportunities to
reduce emissions; or
``(C) other characteristics that the Administrator
determines make the source or sector appropriate to
include; and
``(2) cover a sufficient proportion of total United States
greenhouse gas emissions, such that, in combination with other
measures adopted under this title and under the Safe Climate
Act of 2007 and the amendments made by such Act, such
regulations will ensure that total United States greenhouse gas
emissions will not exceed the emission reduction targets
promulgated pursuant to section 701.
``(c) Allowances.--
``(1) In general.--The regulations promulgated under
section 703(a) shall provide for the Administrator to issue
each year a quantity of greenhouse gas emissions allowances
equivalent to the emissions allowed under the cap required by
subsection (a)(1) for such year. Each such allowance shall
authorize the emission of one carbon dioxide equivalent. Such
an allowance does not constitute a property right, and nothing
in any provision of law shall be construed to limit the
authority of the United States to terminate or limit such an
allowance.
``(2) Trading.--Allowances issued under this section may be
held and traded by any person.
``(3) Flexibility.--Allowances issued under this section
may be used in the year of issuance or may be banked for use in
a year subsequent to the year of issuance.
``(d) Distribution of Allowances.--
``(1) Submission of plan by president.--
``(A) In general.--Within one year of the enactment
of this title, the President, in consultation with the
Administrator and other appropriate department and
agency heads, shall develop and submit to the Congress
a plan--
``(i) to distribute the allowances issued
under this section through auctions, and, at
the discretion of the President and subject to
subparagraph (B)(iii), through allocations
without charge to entities not covered by the
cap or covered entities;
``(ii) to deposit the proceeds of such
auctions in the Climate Reinvestment Fund
established by subsection (h); and
``(iii) to ensure that such allowances are
distributed, and such proceeds are used, in a
manner consistent with the goals described in
subsection (e).
``(B) Contents.--The plan submitted under
subparagraph (A) shall--
``(i) identify the department or agency
responsible for implementing each action
required;
``(ii) ensure that allowances are
distributed not later than January 1, 2010, for
calendar year 2010; and
``(iii) in no case allow any distribution
of allowances without charge to result in the
creation of windfall profits for covered
entities.
``(2) Plan implementation.--The Administrator and the head
of each department or agency identified in paragraph (1)(B)(i)
shall give the Congress a period of one year to review and act
upon the plan submitted under paragraph (1). If during such
period no statute is enacted for the express purpose of
codifying such plan or an alternative to such plan, the
Administrator and the head of each such department or agency
shall implement the actions identified in the plan.
``(e) Goals.--The goals described in this subsection are the
following:
``(1) Maximizing public benefit and promoting economic
growth.
``(2) Mitigating the effect of any energy cost increases to
consumers, particularly low-income consumers.
``(3) Providing equitable transition assistance to any
workers and regions affected by a transition away from high
carbon-emitting energy sources.
``(4) Encouraging research, development, and commercial
deployment of innovative technologies for avoiding, reducing,
or sequestering greenhouse gas emissions.
``(5) Encouraging reduced carbon emissions from, and
enhanced sequestration of, carbon in the forest and
agricultural sectors.
``(6) Recognizing and rewarding early reductions of
greenhouse gases.
``(7) Supporting activities, including providing support
for State activities, to protect against and mitigate the
impacts of climate change, including depletion of snowpack and
water supplies, droughts, wildfires, enhanced coastal erosion,
sea level rise, higher storm surges, more intense precipitation
events and hurricanes, spread of disease, damage to fish and
wildlife habitat, commercial harms (such as damage to the maple
syrup and fishing industries), and agricultural and forestry
losses due to drought, disease, and insect infestations.
``(f) Monitoring.--The Administrator shall ensure that greenhouse
gas emissions and the use of allowances issued under this section are
accurately tracked, reported, and verified, to ensure that the cap-and-
trade system established pursuant to this section is robust and
enforceable.
``(g) Enforcement.--
``(1) In general.--In the case of excess greenhouse gas
emissions under this section by an entity during any calendar
year, the regulations promulgated under section 703(a) shall
require the entity--
``(A) to submit allowances for such emissions
during the following calendar year; and
``(B) to pay a civil penalty in an amount
determined under paragraph (2).
``(2) Amount of civil penalty.--For each quantity of excess
greenhouse gas emissions constituting one carbon dioxide
equivalent, the amount of a civil penalty under this subsection
shall be twice the market price for an allowance at the end of
the calendar year in which the excess emissions occurred. The
Administrator shall establish the method of determining such
market price.
``(3) No demand required.--A civil penalty under this
subsection shall be due and payable to the Administrator
without demand.
``(h) Climate Reinvestment Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a fund to be known as the `Climate
Reinvestment Fund' (in this subsection referred to as the
`Fund'). The Fund shall consist of such amounts as may be
appropriated pursuant to paragraph (2) to the Fund. Such
amounts shall remain available until expended.
``(2) Authorization of appropriations.--For each fiscal
year, there is authorized to be appropriated to the Fund an
amount equal to the sum of--
``(A) the amount collected through auctions of
allowances issued under this section; and
``(B) the amount of civil penalties assessed under
subsection (g).
``(3) Use of funds.--Amounts in the Fund and available
pursuant to an appropriations Act shall be expended by the
President to further the goals described in subsection (e).
``(4) Investment.--The Secretary of the Treasury shall
invest such amounts of the Fund as such Secretary determines
are not required to meet current withdrawals from the Fund.
``(i) Additional Lead Time.--If the Administrator finds that
providing one or two years of additional leadtime for emissions
reductions beyond the 2009, 2010, and 2011 deadlines specified in
section 701(1), 701(2) or 706(a) would substantially reduce compliance
costs, the Administrator may extend, by rule, any of the compliance
deadlines for emissions reductions that fall in 2009, 2010, or 2011 by
one or two additional years. If the Administrator promulgates such an
extension, the same extension may also apply to the deadline for
allowance distribution specified in section 704(d)(1)(B)(ii). Any such
extension shall not affect the 2020 cap on emissions specified in
section 701(2).
``(j) Definition.--In this section, the term `covered entity' means
an entity covered by the cap under subsection (a)(1).
``SEC. 705. ADDITIONAL AUTHORITY TO REGULATE GREENHOUSE GAS EMISSIONS.
``(a) Additional Regulations.--The regulations promulgated under
section 703(a) may include additional regulations to reduce emissions
of greenhouse gases from any source or sector, irrespective of whether
the source or sector is described in section 704(b)(1). Regulations
under this section may include emissions performance standards,
efficiency performance standards, best management practices,
technology-based requirements, and other forms of requirements.
``(b) Relation to Other Authority.--The authorizations under this
title are in addition to the Administrator's authority to regulate
greenhouse gas emissions pursuant to other provisions of law in effect
on the date of the enactment of the Safe Climate Act of 2007.
``SEC. 706. GREENHOUSE GAS EMISSIONS STANDARDS FOR MOTOR VEHICLES.
``(a) In General.--The regulations promulgated under section 703(a)
shall include regulations under section 202 setting standards for
greenhouse gas emissions from motor vehicles. These standards shall
reduce such emissions at least as quickly and at least as much (on an
average vehicle basis) as the standards adopted by the California Air
Resources Board at its September 23-24, 2004 hearing (California Code
of Regulations, title 13, sec. 1961.1).
``(b) Revision of Standards.--Not later than January 1, 2014, and
every 5 years thereafter, the Administrator shall promulgate
regulations revising such standards to further reduce greenhouse gas
emissions from motor vehicles, taking into account the reductions
needed to achieve the emission reduction targets promulgated pursuant
to section 701, as well as the technological feasibility of achieving
tighter standards of various stringencies.
``SEC. 707. SAVINGS CLAUSE.
``Nothing in this title shall be interpreted to preempt or limit
State actions to address climate change.
``SEC. 708. DEFINITIONS.
``In this title:
``(1) Carbon dioxide equivalent.--The term `carbon dioxide
equivalent' means the quantity of greenhouse gas that makes the
same contribution to global warming as 1 metric ton of carbon
dioxide, as determined by the Administrator, taking into
account the global warming potentials published by the
Intergovernmental Panel on Climate Change.
``(2) Greenhouse gas.--The term `greenhouse gas' means--
``(A) carbon dioxide;
``(B) methane;
``(C) nitrous oxide;
``(D) hydrofluorocarbons;
``(E) perfluorocarbons;
``(F) sulfur hexafluoride; or
``(G) any other anthropogenically-emitted gas that
is determined by the Administrator, after notice and
comment, to contribute to global warming to a non-
negligible degree.
``(3) United states greenhouse gas emissions.--The term
`United States greenhouse gas emissions' means the total
quantity of greenhouse gas emissions calculated by the
Administrator on an annual basis and reported to the United
Nations Framework Convention on Climate Change Secretariat.''.
SEC. 4. NATIONAL RENEWABLE ENERGY STANDARD.
Title VI of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 824a-4 et seq.) is amended by adding at the end the following:
``SEC. 610. NATIONAL RENEWABLE ENERGY STANDARD.
``(a) In General.--The Secretary shall promulgate regulations
requiring that--
``(1) beginning in calendar year 2010, the percentage of
electric energy generated from renewable sources that is sold
at the retail level in the United States shall increase each
year; and
``(2) in calendar year 2020 and each subsequent calendar
year, such percentage shall be not less than 20 percent of the
total electricity sold at the retail level in the United
States.
``(b) Consultation.--The Secretary shall carry out this section in
consultation with the Administrator of the Environmental Protection
Agency.
``(c) Subsequent Increases.--Upon petition or upon the Secretary's
own initiative, the Secretary may increase the percentage required by
subsection (a)(2).
``(d) Rule of Construction.--Nothing in this section shall be
construed to preempt or limit State actions to enhance renewable energy
generation or energy efficiency.''.
SEC. 5. NATIONAL ENERGY EFFICIENCY STANDARD.
Title VI of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 824a-4 et seq.), as amended by section 4 of this Act, is amended
by adding at the end the following:
``SEC. 611. NATIONAL ENERGY EFFICIENCY STANDARD.
``(a) In General.--The Secretary shall promulgate regulations in
accordance with this section setting end-user savings targets for
retail electric-energy and natural gas suppliers.
``(b) Consultation.--The Secretary shall carry out this section in
consultation with the Administrator of the Environmental Protection
Agency.
``(c) Requirements.--With respect to targets under subsection (a):
``(1) The targets shall require each supplier to secure
annual savings of a set percentage of the supplier's most
recent year's sales to retail customers.
``(2) The savings shall be achieved through end-use
efficiency improvements at customer facilities.
``(3) The targets shall increase gradually from 0.25
percent of sales in 2010 to 1 percent of sales in 2012 and each
year thereafter through 2020.
``(4) The targets are cumulative. Each year's savings shall
be achieved in addition to the previous years' savings.
``(d) Required Percentages After 2020.--The Secretary may, upon
petition or upon the Secretary's own initiative, increase the required
percentage of end-user savings for years after 2020.
``(e) Market-Based Trading System.--The Secretary shall allow
suppliers to achieve the targets under subsection (a) through a market-
based trading system.
``(f) Rule of Construction.--Nothing in this section shall be
construed to preempt or limit State actions to enhance renewable energy
generation or energy efficiency.''.
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