Short title

This Act may be cited as the

Greenhouse Gas Accountability Act of 2007

Findings and purpose

(a)

Findings

Congress finds that— (1)global climate change poses a significant and immediate threat to national security, the United States economy, public health and welfare, and the global environment; (2)having accurate data on greenhouse gas emissions is essential in order to implement a greenhouse gas regulatory regime; (3)compiling accurate information on the distribution and processing of fuels and the manufacture of products that contribute to global warming is important in crafting legislation to address global warming; and (4)the public and investors have the right to know which facilities, entities, and countries contribute to global warming pollution. (b)

Purpose

The purpose of this Act is to establish a mandatory greenhouse gas inventory that— (1)is complete, consistent, transparent, and accurate; (2)will provide accurate data that can be used by public and private entities to design efficient and effective greenhouse gas emission reduction strategies; (3)will provide the appropriate high-quality data to be used in any future greenhouse gas regulatory regime; and (4)will provide the public and investors information on the scope, amount, and sources of greenhouse gas pollution.

Definitions

For purposes of this Act: (1)

Administrator

The term Administrator means the Administrator of the Environmental Protection Agency. (2)

Carbon dioxide equivalents

The term carbon dioxide equivalents means, for each greenhouse gas, the amount of each such greenhouse gas that makes the same contribution to global warming as one metric ton of carbon dioxide, as determined by the Administrator. (3)

Commission

The term Commission means the Securities and Exchange Commission. (4)

Direct emissions

The term direct emissions means greenhouse gas emissions by an entity from a site, facility, or equipment that is owned or controlled by that entity, and such term includes— (A)emissions from the generation of electricity, heat, or steam resulting from combustion of fuels in stationary sources such as boilers, furnaces, and turbines; (B)emissions from physical or chemical processing, including those resulting from manufacture or processing of chemicals and materials such as cement, aluminum, and adipic acid, ammonia manufacture, and waste processing; (C)emissions from the transportation of materials, products, waste, and employees resulting from the combustion of fuels in entity-owned or controlled mobile combustion sources such as trucks, trains, ships, airplanes, buses, and cars; (D)fugitive emissions resulting from intentional or unintentional releases, including— (i)equipment leaks from joints, seals, packing, and gaskets; (ii)methane emissions from coal mines and venting; (iii)hydrofluorocarbon emissions during the use of refrigeration and air conditioning equipment; and (iv)methane leakages from gas transport; (E)emissions from farming or raising of animals; and (F)any other type of direct emission the Administrator determines appropriate. (5)

Estimated product emissions

The term estimated product emissions means the greenhouse gas emissions of motor vehicles, fuels, or any other product or material the Administrator determines appropriate, with respect to the portion of the life cycle of the product or material after the product or material leaves the control of the reporting entity. (6)

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 emission or chemical compound the Administrator determines appropriate. (7)

Indirect emissions

The term indirect emissions means greenhouse gas emissions that are the result of the activities of an entity but are not its direct emissions, and includes— (A)emissions from the generation of electricity acquired and consumed by the entity, as calculated based on guidance provided by the Administrator; (B)for an entity providing transmission and distribution of electricity services, emissions associated with the portion of the electricity that is consumed or lost during the transmission or distribution process, as calculated based on guidance provided by the Administrator; and (C)any other type of indirect emission the Administrator determines appropriate. (8)

Significant emitter

The term significant emitter means— (A)an entity that directly or indirectly emits over— (i)10,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents, at one facility; or (ii)100,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents, entity wide; or (B)an entity that produces or imports— (i)fuels, including fossil fuels, that, when combusted, will emit; (ii)hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride that, when used, will emit; or (iii)other greenhouse gases that, when used, will emit,

over 100,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents.

Greenhouse gas emissions reporting program

(a)

Establishment of reporting program

The Administrator shall establish a program to require each entity described in subsection (b) to annually report to the Administrator the greenhouse gas emissions of the entity for the previous year. In designing the program, the Administrator shall consider the standards and principles embodied in the WRI/WBCSD Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard (revised edition). The program shall be designed to— (1)ensure the maximum practicable completeness and accuracy of the greenhouse gas emissions database at the Environmental Protection Agency; (2)be consistent with the standards, protocols, and principles of the Climate Registry and the California Climate Registry; (3)allow for electronic reporting of emissions; (4)maximize the ease of compliance for reporting entities; and (5)minimize double counting of emissions. (b)

Reporting entities

The following entities shall be required to report greenhouse gas emissions to the Administrator under the program established under subsection (a): (1)Any significant emitter. (2)Any issuer of securities (as such terms are defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c) that is required to file an annual report under section 13(a) or 15(d) of such Act (15 U.S.C. 78m(a), 78o(d)), with annual revenues exceeding $10,000,000. (3)Any entity with annual revenues exceeding $10,000,000 that is engaged in the business of— (A)automobiles and components thereof; (B)aerospace and defense; (C)chemicals; (D)construction materials; (E)electric utilities; (F)energy equipment and services; (G)oil, gas, and consumable fuels; (H)metals and mining; (I)paper and forest products; or (J)transportation. (c)

Identification of appropriate reporting entity

The Administrator shall consult with the Securities Exchange Commission as necessary to enable identification of entity boundaries. In determining entity boundaries, the Administrator shall consider the standards and principles embodied in the WRI/WBCSD Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard (revised edition). (d)

Nature of reporting requirement

(1)

Reporting by entity, country, and facility

An entity described in subsection (b)(1) shall report emissions by entity, by country, and by facility. When reporting by facility, entities are only required to report the emissions of facilities which generate over 10,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents. When reporting entity-wide emissions, entities shall include all emissions, even those from facilities which generate less than 10,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents. (2)

Reporting by entity and country only

An entity described in subsection (b)(2) or (3), that is not an entity described in subsection (b)(1), shall report emissions by entity and by country. (3)

Emissions reporting

(A)Direct, indirect, and estimated product emissions shall be reported separately. (B)Each type of direct emission described in subparagraph (A), (B), (C), (D), or (E) of section 3(4), and each type of direct emission added by the Administrator pursuant to subparagraph (F) of such section 3(4), shall be reported separately. (C)Each type of indirect emission described in subparagraph (A) or (B) of section 3(7), and each type of indirect emission added by the Administrator pursuant to subparagraph (C) of such section 3(7), shall be reported separately. (D)Emissions relating to each of the greenhouse gases described in subparagraph (A), (B), (C), (D), (E), or (F) of section 3(6), and emissions relating to each other emission or chemical compound added by the Administrator pursuant to subparagraph (G) of such section 3(6), shall be reported separately. (4)

Vehicle manufacturers

An entity that manufactures or imports motor vehicles shall separately report the estimated product emissions of all vehicles manufactured or imported by the entity, as calculated based on guidance provided by the Administrator. (5)

Fuels

An entity that mines, extracts, refines, distributes, processes, imports, or sells fuels shall separately report the estimated product emissions resulting from the use of all such fuels (including hydrogen fuels and fuels derived from biomass), as calculated based on guidance provided by the Administrator. (6)

Biomass combustion

Greenhouse gas emissions from the combustion of biomass shall not be included as direct emissions, but shall be reported separately as biomass emissions. (7)

De minimis emissions

The Administrator may excuse from the reporting requirements of the program under this section any source of emissions that is responsible for only de minimis amounts of greenhouse gas emissions. (e)

Included items

A report submitted pursuant to this section— (1)shall identify the appropriate contact at the entity responsible for preparing the report; (2)shall detail the tools and methods used in the calculation of emission levels and preparation of the report; (3)may indicate whether the information contained in the report has been verified by an independent third party, and if it has been so verified, shall identify and include the results of the independent third-party verification; and (4)shall be made available in electronic form. (f)

Schedule of program development

(1)

Regulations

Not later than 1 year after the date of enactment of this Act, the Administrator shall issue regulations establishing the program under this section. Such regulations shall include— (A)tools and procedures, developed in consultation with the Secretary of Energy, to assist entities in compliance with the reporting requirements of the program; and (B)other guidance required under this section. (2)

Effective date of reporting requirement

Entities shall be required to submit their first greenhouse gas emissions report under this section not later than 6 months after the issuance of regulations under paragraph (1). (g)

Optional reporting

An entity may additionally report offsets, sequestration projects, or other efforts to mitigate its greenhouse gas emissions, pursuant to guidance provided by the Administrator. (h)

Audits

The Administrator may conduct an investigation or order an audit as necessary to verify the accuracy of information contained in a report submitted pursuant to this section. (i)

Public release

The Administrator shall make available to the public all reports submitted pursuant to this section after the date which is 1 year after the effective date described in subsection (f)(2). After such date, the Administrator, upon receiving a report, shall make it available in electronic form within 30 days. (j)

GAO report

(1)

Accessibility

The Administrator shall provide access to the Government Accountability Office of any document or information submitted to, generated by, or otherwise in the possession of the Environmental Protection Agency pursuant to this Act. (2)

Review and Reports

(A)

In general

Not later than January 1 of the first year following the calendar year in which regulations are issued under subsection (f)(1), and on January 1 of each year thereafter for the first five years and as requested thereafter by one of the committees described in clause (i) or (ii), the Government Accountability Office shall submit a report under this subsection to— (i)the Committee on Environment and Public Works of the Senate; and (ii)the Committee on Energy and Commerce of the House of Representatives. (B)

Contents

Each report submitted under subparagraph (A) shall include— (i)a review of the entities’ compliance with the reporting requirements of this Act, including the accuracy of the information contained in such reports, based on a randomized review of companies required to report under this Act; (ii)a determination of whether the regulations issued under subsection (f)(1) or this Act should be revised to improve compliance and accuracy of reporting; and (iii)a determination of whether the regulations and this Act are effective in inventorying greenhouse gases. (k)

Penalties

A person who violates any requirement of this Act shall be liable to the United States for a civil penalty in an amount not to exceed $25,000 for each such violation for each day a violation continues. The Administrator may assess penalties on a per entity or per facility basis for reports not submitted or submitted not correctly, which may include per day penalties, depending on the circumstances of the violation. Violations may be corrected by submitting a corrected report. (l)

Report to Congress

Not later than 1 year after the effective date described in subsection (f)(2), the Administrator shall transmit to the Congress a report containing— (1)an assessment, prepared after consultation with the reporting entities, of the effectiveness of the implementation of this section; (2)a description of any modifications the Administrator intends to make to the program under this section; and (3)recommendations on whether a program to certify independent third parties described in subsection (e)(3) would be feasible and useful.

National greenhouse gas emissions database

(a)

Establishment

The Administrator shall establish a public website containing national greenhouse gas emissions database using data obtained pursuant to section 4. Such website database shall be designed to correlate the data so as to be most useful for policymakers, government agencies, investors, and researchers. The website database shall allow the public, investors, and policymakers to— (1)search and aggregate greenhouse gas releases by greenhouse gas; (2)ascertain through a single search the total greenhouse gas releases of an entity, by reporting year; (3)download data from the database; (4)determine the emissions of individual entities, industries, and geographic areas; and (5)use the database for policymaking and regulatory purposes. (b)

Availability to public

The database established under subsection (a) shall be made available to the public 1 year after the effective date described in section 4(f)(2).

Disclosures to shareholders by publicly traded companies

(a)

Summary required in financial reports

Not later than 1 year after the date of enactment of this Act, the Commission shall revise its regulations under the Securities Exchange Act of 1934 to require that each annual report filed by an issuer of securities as required by section 13(a) or 15(d) of such Act (15 U.S.C. 78m(a), 78o(d)) contain, in a form prescribed by the Commission after consultation with the Administrator— (1)a table of the greenhouse gas emission of the issuer over the previous year; (2)a short summary of the nature of such emissions and— (A)the estimated financial exposure of the issuer because of the emissions of the issuer; and (B)the potential economic impacts of climate change on the interests of the issuer; (3)a link or address by which to obtain access to the complete greenhouse gas emission report to the Administrator under section 4 of this Act; and (4)a statement of whether or not the issuer has had such greenhouse gas emission report independently verified. (b)

Interim Interpretive Release

(1)

In general

As soon as practicable after the date of enactment of this Act, the Commission shall issue an interpretive release clarifying that under items 101 and 303 of Regulation S–K of the Commission under part 229 of title 17, Code of Federal Regulations (as in effect on the date of enactment of this Act)— (A)the commitments of the United States to reduce emissions of global warming pollution under the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992, are considered to be a material effect; and (B)global warming constitutes a known trend. (2)

Period of effectiveness

The interpretive release issued under paragraph (1) shall remain in effect until the effective date of the final regulations promulgated under subsection (a).