110 HR 4226 IH: Climate Stewardship and Economic Security Act of 2007
U.S. House of Representatives
2007-11-15
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Climate Stewardship and Economic Security Act of 2007
.
2.The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Title I—Market to reduce greenhouse gas emissions
Subtitle A—Tracking emissions
Sec. 101. National Greenhouse Gas Database and registry established.
Sec. 102. Inventory of greenhouse gas emissions for covered entities.
Sec. 103. Greenhouse gas reduction registration.
Sec. 104. Measurement and verification.
Subtitle B—Mandating emission reductions
Sec. 121. Covered entities must submit allowances for emissions.
Sec. 122. Compliance.
Sec. 123. Exemption of source categories.
Sec. 124. Establishment of tradeable allowances.
Sec. 125. International reserve allowance program.
Sec. 126. Penalties.
Subtitle C—Controlling compliance costs
Part 1—Use of Allowances
Sec. 141. Trading.
Sec. 142. Banking.
Sec. 143. Borrowing against future reductions.
Sec. 144. Domestic offsets.
Sec. 145. International credits plan.
Sec. 146. Outreach initiative on revenue enhancement for agricultural producers.
Part 2—Carbon Market Efficiency Board
Sec. 151. Establishment of Board.
Sec. 152. Duties.
Sec. 153. Powers.
Sec. 154. Estimate of costs to economy of limiting greenhouse gas emissions.
Subtitle D—Allocation of tradeable allowances
Sec. 161. Determination of tradeable allowance allocations.
Sec. 162. Provision of tradeable allowances.
Sec. 163. Ensuring target adequacy.
Sec. 164. Initial allocations for early participation and accelerated participation.
Sec. 165. Bonus for accelerated participation.
Title II—Climate Change Credit Corporation
Sec. 201. Establishment.
Sec. 202. Purposes and functions.
Title III—Miscellaneous
Sec. 301. NOAA report on climate change effects; preparation assistance.
Sec. 302. Adaptation technologies.
Sec. 303. Mitigating climate change’s impacts on the poor.
Sec. 304. Wildlife conservation.
3.In this Act:
(1)The term Administrator means the Administrator of the Environmental Protection Agency.
(2)The term baseline means the historic greenhouse gas emission levels of an entity, as adjusted upward by the Administrator to reflect actual reductions that are verified in accordance with—
(A)regulations promulgated under section 101(c)(1); and
(B)relevant standards and methods developed under this Act.
(3)The term Board
means the Carbon Market Efficiency Board established under section 151.
(4)Carbon dioxide equivalentsThe 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.
(5)The term covered sectors means the electric power, transportation, industrial, and commercial sectors, as such terms are used in the Inventory.
(6)The term covered entity means an entity (including a branch, department, agency, or instrumentality of Federal, State, or local government) that—
(A)owns or controls a source of greenhouse gas emissions in the electric power, industrial, or commercial sector of the United States economy (as defined in the Inventory), refines or imports refined petroleum products for use in transportation, or produces or imports hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride; and
(B)emits, from any single facility owned by the entity, over 10,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents, or—
(i)refines or imports refined petroleum products that, when combusted, will emit;
(ii)produces or imports hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride that, when used, will emit; or
(iii)produces or imports other greenhouse gases that, when used, will emit,over 10,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents.
(7)The term database means the National Greenhouse Gas Database established under section 101.
(8)The term direct emissions means greenhouse gas emissions by an entity from a facility that is owned or controlled by that entity.
(9)The term facility means a building, structure, or installation located on any 1 or more contiguous or adjacent properties of an entity in the United States.
(10)The term greenhouse gas means—
(A)carbon dioxide;
(B)methane;
(C)nitrous oxide;
(D)hydrofluorocarbons;
(E)perfluorocarbons; or
(F)sulfur hexafluoride.
(11)The term indirect emissions means greenhouse gas emissions that are—
(A)a result of the activities of an entity; but
(B)emitted from a facility owned or controlled by another entity.
(12)The term Inventory means the Inventory of U.S. Greenhouse Gas Emissions and Sinks, prepared in compliance with the United Nations Framework Convention on Climate Change Decision 3/CP.5.
(13)The term leakage means—
(A)a potentially unaccounted increase in greenhouse gas emissions by a facility or entity caused by an offset project that produces an accounted reduction in greenhouse gas emissions; or
(B)a potentially unaccounted decrease in sequestration that is caused by an offset project that results in an accounted increase in sequestration.
(14)The term permanence means the extent to which greenhouse gases that are sequestered will not later be returned to the atmosphere.
(15)The term registry means the registry of greenhouse gas emission reductions and increases in sequestration established under section 101(b)(2).
(16)The term Secretary means the Secretary of Commerce.
(17)
(A)The term sequestration means the long-term capture, separation, isolation, or removal of greenhouse gases from the atmosphere.
(B)The term sequestration includes, as the Administrator determines appropriate for carrying out this Act—
(i)agricultural and conservation practices;
(ii)reforestation;
(iii)forest preservation;
(iv)production of cellulosic biomass crops; and
(v)any other method of long-term capture, separation, isolation, or removal of greenhouse gases from the atmosphere.
(C)The term sequestration does not include—
(i)any conversion of, or negative impact on, a native ecosystem; or
(ii)any introduction of non-native species.
(18)The term source category means a process or activity that leads to direct emissions of greenhouse gases, as listed in the Inventory.
(19)The term stationary source means any source of greenhouse gas emissions except those emissions resulting directly from an engine for transportation purposes.
<enum>I</enum><header>Market to reduce greenhouse gas emissions</header>
<subtitle id="HE7CD2E4DDD6B478D8B84F855E5225E05"><enum>A</enum><header>Tracking emissions</header>
<section id="HFFB6B4C600B64DB8AC00EC857E4B3962"><enum>101.</enum><header>National Greenhouse Gas Database and registry established</header>
<subsection id="HEC1102D414F94FE494E2EB224BF49755"><enum>(a)</enum><header>Establishment</header><text>As soon as practicable after the date of enactment of this Act, the Administrator, in coordination with the Secretary, the Secretary of Energy, the Secretary of Agriculture, State governments, and private sector and nongovernmental organizations, shall establish, operate, and maintain a database, to be known as the <quote>National Greenhouse Gas Database</quote>, to collect, verify, and analyze data on greenhouse gas emissions by entities.</text></subsection>
<subsection id="H46AC7262EFC34F389EFF358D85500203"><enum>(b)</enum><header>National Greenhouse Gas Database components</header><text>The database shall consist of—</text>
<paragraph id="H4405E7BD78CB480495A62C089DBC0045"><enum>(1)</enum><text>an inventory of greenhouse gas emissions; and</text></paragraph>
<paragraph id="HEAF7C793E7DF491A95A3073BF55671DC"><enum>(2)</enum><text>a registry of greenhouse gas emission reductions and increases in sequestrations.</text></paragraph></subsection>
<subsection id="H19B783DD18014912B1C0507161EAF69E"><enum>(c)</enum><header>Comprehensive system</header>
<paragraph id="H24BE80E692AB4C43B8715B803118ED11"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this Act, the Administrator shall promulgate regulations to implement a comprehensive system for greenhouse gas emissions reporting, inventorying, and reduction and sequestration registration.</text></paragraph>
<paragraph id="HA71EDBB3E37A4EBBB3783F5142EEEE37"><enum>(2)</enum><header>Requirements</header><text>The Administrator shall ensure, to the maximum extent practicable, that—</text>
<subparagraph id="H15B1EDBD969A406EAFF650B61E3336E6"><enum>(A)</enum><text>the comprehensive system described in paragraph (1) is designed to—</text>
<clause id="HCED7BC564E3D42CA95007D9BF809DCCA"><enum>(i)</enum><text>maximize completeness, transparency, and accuracy of data reported; and</text></clause>
<clause id="H3EE82E8269124677879893FCF39F992"><enum>(ii)</enum><text>minimize costs incurred by entities in measuring and reporting greenhouse gas emissions, emission reductions, and sequestrations; and</text></clause></subparagraph>
<subparagraph id="HBB05ADDE20C5439387C19232A0056E8E"><enum>(B)</enum><text>the regulations promulgated under paragraph (1) establish procedures and protocols necessary—</text>
<clause id="H31F85DB3318F4BF282E55B10032BD6B8"><enum>(i)</enum><text>to prevent the double-counting of greenhouse gas emissions, emission reductions, or sequestrations reported by more than 1 reporting entity;</text></clause>
<clause id="H0655DA4B9DE84A0F8B9F5C0005DECBE4"><enum>(ii)</enum><text>to provide for corrections to errors in data submitted to the database;</text></clause>
<clause id="HE00BBBA39A1B4E71AD97C11CDB5328F"><enum>(iii)</enum><text>to provide for adjustment to data by reporting entities that have had a significant organizational change (including mergers, acquisitions, and divestiture), in order to maintain comparability among data in the database over time;</text></clause>
<clause id="H5086453DB5EE4769BC6CD2FFACAE8530"><enum>(iv)</enum><text>to provide for adjustments to reflect new technologies or methods for measuring or calculating greenhouse gas emissions, emission reductions, or sequestrations;</text></clause>
<clause id="H912D64DA7EED41A1AEE91E009F13C64C"><enum>(v)</enum><text>to account for changes in registration of ownership of emission reductions or increases in sequestration resulting from a voluntary private transaction between reporting entities;</text></clause>
<clause display-inline="no-display-inline" id="H9DEE05FC22B44B7CB58CB0A42700DF97"><enum>(vi)</enum><text>to prevent a covered entity from avoiding the requirements of this Act by reorganization into multiple entities that are under common control; and</text></clause>
<clause id="HDF28D84EF1A64BFA8965E0035040999"><enum>(vii)</enum><text>to clarify the responsibility for reporting in the case of any facility owned or controlled by more than 1 entity.</text></clause></subparagraph></paragraph>
<paragraph id="H1017F355ACCB49B3B89BB205F3498B8D"><enum>(3)</enum><header>Serial numbers</header><text>Through regulations promulgated under paragraph (1), the Administrator shall develop and implement a system that provides—</text>
<subparagraph id="H442258E6AE4444C7B198FDCA337BCE06"><enum>(A)</enum><text>for the provision of unique serial numbers to identify the registered emission reductions or increases in sequestration made by an entity;</text></subparagraph>
<subparagraph id="H10A627E0EB8D406FA1EC6789EB8800B1"><enum>(B)</enum><text>for the tracking of the registered reductions or sequestrations associated with the serial numbers; and</text></subparagraph>
<subparagraph id="H391D1E9FB7B8431BA816DE28BEB17937"><enum>(C)</enum><text>for such action as may be necessary to prevent counterfeiting of the registered reductions or sequestrations.</text></subparagraph></paragraph></subsection></section>
<section id="H8E6D2BD24547401082A082ACBDA1FF1"><enum>102.</enum><header>Inventory of greenhouse gas emissions for covered entities</header>
<subsection id="H206EC178FF43429982DCE52405ED5A4"><enum>(a)</enum><header>In general</header><text>Not later than July 1st of each calendar year after 2011, each covered entity shall submit to the Administrator a report that states, for the preceding calendar year, the entity-wide greenhouse gas emissions in the United States (as reported at the facility level), including—</text>
<paragraph id="H0727395C7AD545219D107116A62C50B0"><enum>(1)</enum><text>the total quantity of direct emissions from stationary sources, including process and fugitive emissions, expressed in units of carbon dioxide equivalents, except those reported under paragraph (3);</text></paragraph>
<paragraph id="H4BA6303E9F31472680EA43EA7FCAA1E"><enum>(2)</enum><text>the amount of petroleum products refined or refined petroleum products imported by the entity for use in transportation and the amount of greenhouse gases, expressed in units of carbon dioxide equivalents, that would be emitted when these products are used for transportation, as determined by the Administrator under section 121(b);</text></paragraph>
<paragraph id="H0EE5937C75F44B6BA9E2E8D1B3952F93"><enum>(3)</enum><text>the amount of hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride, expressed in units of carbon dioxide equivalents, that are produced or imported by the entity and will ultimately be emitted in the United States, as determined by the Administrator under section 121(d); and</text></paragraph>
<paragraph id="H87997CECAA364E9DA2BF5E92339DE9A6"><enum>(4)</enum><text>such other categories of greenhouse gas emissions in the United States as the Administrator determines in the regulations promulgated under section 101(c)(1) may be practicable and useful for the purposes of this Act, such as indirect emissions.</text></paragraph></subsection>
<subsection id="HFCECF7C37A864498BB8CB5BA671B8493"><enum>(b)</enum><header>Collection and analysis of data</header><text>The Administrator shall collect and analyze data reported under subsection (a) for use under this title.</text></subsection></section>
<section id="HD341DE78E97E400DB6C9219714F831D"><enum>103.</enum><header>Greenhouse gas reduction registration</header>
<subsection id="H201652D4F7D54CBEBDB6067239E88B0"><enum>(a)</enum><header>In general</header><text>Subject to the requirements described in subsection (b)—</text>
<paragraph id="HEF7F5100D10845F58D81AFE93875358F"><enum>(1)</enum><text>a covered entity may register greenhouse gas emission reductions and increases in sequestration achieved after 1990 and before 2012 under this section; and</text></paragraph>
<paragraph id="HB573523193CE4BF9B588D682A66BB656"><enum>(2)</enum><text>an entity that is not a covered entity may register greenhouse gas emission reductions and increases in sequestration achieved at any time since 1990 under this section.</text></paragraph></subsection>
<subsection id="H0C4EC16FB3324285AD69BCFB5144E100"><enum>(b)</enum><header>Requirements</header>
<paragraph id="HC41A0E02A5CC484799004879A3D18612"><enum>(1)</enum><header>In general</header><text>The requirements referred to in subsection (a) are that an entity (other than an entity described in paragraph (2)) shall—</text>
<subparagraph id="H80AEE7565BF24B9300DB162D38186000"><enum>(A)</enum><text>establish a baseline; and</text></subparagraph>
<subparagraph id="H59ABB26D55A3428990C295C961F325C4"><enum>(B)</enum><text>submit the report described in section 102(a)(1).</text></subparagraph></paragraph>
<paragraph id="H686D407DA5904C3A96394D8667E34559"><enum>(2)</enum><header>Requirements not applicable to entities entering into certain agreements</header><text>An entity that enters into an agreement with a participant in the registry for the purpose of a carbon sequestration project may register greenhouse gas emission reductions or sequestrations without being required to comply with the requirements specified in paragraph (1), unless that entity is required to comply with those requirements by reason of an activity other than the agreement.</text></paragraph></subsection>
<subsection id="H9258B8F73A504674874F02DDE79287D9"><enum>(c)</enum><header>Procedure</header>
<paragraph id="H3A45FB5B803A4B1B9FEB2635008EF334"><enum>(1)</enum><header>Voluntary reporting</header><text>An entity described in subsection (a) may submit to the Administrator for inclusion in the registry—</text>
<subparagraph id="H8C163AC311DB430F890211D9C00C78B"><enum>(A)</enum><text>before January 1, 2012, data that relates to any activity that resulted in the net reduction of the greenhouse gas emissions of the entity or an increase in sequestration by the entity that were carried out during or after 1990 and before the establishment of the database; and</text></subparagraph>
<subparagraph id="HCAF0782134B14BC1A0AAFB2200567717"><enum>(B)</enum><text>with respect to the calendar year preceding the calendar year in which the data is submitted, data that relates to any project or activity that resulted in the net reduction of the greenhouse gas emissions of the entity or a net increase in net sequestration by the entity.</text></subparagraph></paragraph>
<paragraph id="H55409CCF7F4C4D8DAC6B6E21E7D9353D"><enum>(2)</enum><header>Provision of verification information by reporting entities</header><text>Each entity that submits a report under section 102(a) or this subsection shall provide information sufficient for the Administrator to verify, in accordance with measurement and verification methods and standards developed under section 104, that the report—</text>
<subparagraph id="H0BF43A5D1AD84FAE8FA6ECB703FAC508"><enum>(A)</enum><text>has been accurately reported; and</text></subparagraph>
<subparagraph id="H85ECA82E483B41BBBEFF7BBE25B6DB30"><enum>(B)</enum><text>in the case of each voluntary report under paragraph (1), represents—</text>
<clause id="HED23F9C150C346408E1E95B3670087F2"><enum>(i)</enum><text>actual reductions in greenhouse gas emissions relative to historic emission levels of the entity; or</text></clause>
<clause id="H99F13ABC2C4847DB8D775CEA7630BB19"><enum>(ii)</enum><text>actual increases in net sequestration.</text></clause></subparagraph></paragraph>
<paragraph id="H94E3C8F7CAC04762AE604DD9E0D86D06"><enum>(3)</enum><header>Failure to submit report</header><text>An entity that submits data for registration of emission reductions or increases in sequestration in the registry and that fails to submit a report required under this subsection shall be prohibited from using, or allowing another entity to use, its registered emissions reductions or increases in sequestration to satisfy the requirements of section 121.</text></paragraph>
<paragraph id="HAE1C3B203EB9470687AB5B89AD35C2E3"><enum>(4)</enum><header>Independent third-party verification</header><text>To meet the requirements of this section and section 104, an entity that submits a report under this section may—</text>
<subparagraph id="H57B148FB38B14B8B00561C9260E71827"><enum>(A)</enum><text>obtain independent third-party verification; and</text></subparagraph>
<subparagraph id="H8ADB05F3835C4FB893AC232D9233C815"><enum>(B)</enum><text>present the results of the third-party verification to the Administrator.</text></subparagraph></paragraph>
<paragraph id="H77CFAD7FC11A46A698981BCEEE5848DF"><enum>(5)</enum><header>Availability of data</header>
<subparagraph id="H415E908D400F4209ADE52D939BDFAB8F"><enum>(A)</enum><header>In general</header><text>The Administrator shall ensure that information in the database is—</text>
<clause id="H5DCAC7095BC143C18DE9D946B306C707"><enum>(i)</enum><text>published; and</text></clause>
<clause id="H22AB6EAF2F304312846D49A0A16D6C30"><enum>(ii)</enum><text>accessible to the public, including in electronic format on the Internet.</text></clause></subparagraph>
<subparagraph id="H119E032DE73A49F285FAEF31E26AEA0"><enum>(B)</enum><header>Exception</header><text>Subparagraph (A) shall not apply in any case in which the Administrator determines that publishing or otherwise making available information described in that subparagraph—</text>
<clause id="H34C204EDBCF1452BA7D9F04FBFFE199"><enum>(i)</enum><text>poses a risk to national security; or</text></clause>
<clause id="H34002BF9B48745CC8F7491B97DA4E769"><enum>(ii)</enum><text>discloses confidential business information that can not be derived from information that is otherwise publicly available and that would cause competitive harm if published.</text></clause></subparagraph></paragraph>
<paragraph id="H726FCE29B1CC489593B3FF86862C038D"><enum>(6)</enum><header>Data infrastructure</header><text>The Administrator shall ensure, to the maximum extent practicable, that the database uses, and is integrated with, Federal, State, and regional greenhouse gas data collection and reporting systems.</text></paragraph>
<paragraph id="H979FCA9E12D24B6898A295C539D3AE71"><enum>(7)</enum><header>Additional issues to be considered</header><text>In promulgating the regulations under section 101(c)(1) and implementing the database, the Administrator shall take into consideration a broad range of issues involved in establishing an effective database, including—</text>
<subparagraph id="H76FE7C48E2224B36863655BF666600D3"><enum>(A)</enum><text>the data and information systems and measures necessary to identify, track, and verify greenhouse gas emissions in a manner that will encourage private sector trading and exchanges;</text></subparagraph>
<subparagraph id="H6CCF406615B7408FA1BEE9BC4300BBF3"><enum>(B)</enum><text>the greenhouse gas reduction and sequestration measurement and estimation methods and standards applied in other countries, as applicable or relevant;</text></subparagraph>
<subparagraph id="HCCF323A6B1B2406400F833A5D1880031"><enum>(C)</enum><text>the extent to which available data on fossil fuels, greenhouse gas emissions, and greenhouse gas production, refining, and importation are adequate to implement the database; and</text></subparagraph>
<subparagraph id="HF6B6BF71054B45ADB22BC46E7D3FED0"><enum>(D)</enum><text>the differences in, and potential uniqueness of, the facilities, operations, and business and other relevant practices of persons and entities in the private and public sectors that may be expected to participate in the database.</text></subparagraph></paragraph></subsection>
<subsection id="H8343A37E97D84B80B3F693DCA1F1DD2D"><enum>(d)</enum><header>Annual report</header><text>The Administrator shall publish an annual report that—</text>
<paragraph id="HF48F200579EA4BBD971E95B2A1C99847"><enum>(1)</enum><text>describes the total greenhouse gas emissions, emission reductions, and increases in sequestration reported to the database during the year covered by the report;</text></paragraph>
<paragraph id="H5F17E743EDEF40939394B77B699641A1"><enum>(2)</enum><text>provides entity-by-entity and sector-by-sector analyses of the emissions, emission reductions, and increases in sequestration reported;</text></paragraph>
<paragraph id="H28EC748E70784400B63F5D771F71EE00"><enum>(3)</enum><text>describes the atmospheric concentrations of greenhouse gases;</text></paragraph>
<paragraph id="HAC8945A874CC4646A981185839FFE66F"><enum>(4)</enum><text>provides a comparison of current and past atmospheric concentrations of greenhouse gases; and</text></paragraph>
<paragraph id="H94214CA45C1F454B9C6F897FDEDF70A3"><enum>(5)</enum><text>describes the activity during the year covered by the report in the trading of greenhouse gas emission allowances.</text></paragraph></subsection></section>
<section id="HFB2CA7170B5848BEB4C233775DFDE182"><enum>104.</enum><header>Measurement and verification</header>
<subsection id="H867B841F08764968ADA0B191B5E6794D"><enum>(a)</enum><header>Methods and standards</header>
<paragraph id="H1A4C3F9C22C44DA488A505911435AF92"><enum>(1)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the Administrator shall establish by rule, in coordination with the Secretary, the Secretary of Energy, and the Secretary of Agriculture, comprehensive measurement and verification methods and standards to ensure a consistent and technically accurate record of greenhouse gas emissions, emission reductions, sequestration, and atmospheric concentrations for use in the registry.</text></paragraph>
<paragraph id="H7B8BF5B044E14326BC20FEE279DCEE93"><enum>(2)</enum><header>Requirements</header><text>The methods and standards established under paragraph (1) shall include—</text>
<subparagraph id="HD69FF745DE1C43490042E6679B080257"><enum>(A)</enum><text>a requirement that an entity submitting data for the database use a continuous emissions monitoring system, or another system of measuring emissions, emission reductions, or increases in sequestration that is determined by the Administrator to provide information with precision, reliability, accessibility, and timeliness similar to that provided by a continuous emissions monitoring system where technologically feasible;</text></subparagraph>
<subparagraph id="H5FF3344220D344C59DF08B930209E191"><enum>(B)</enum><text>establishment of standardized measurement and verification practices for reports made by all entities participating in the registry, taking into account—</text>
<clause id="H67DDF14AAA244430AF34F1354B965D78"><enum>(i)</enum><text>protocols and standards in use by entities requiring or desiring to participate in the registry as of the date of development of the methods and standards under paragraph (1);</text></clause>
<clause id="HF279631E23094A4292BB77833C08DB59"><enum>(ii)</enum><text>boundary issues, such as leakage;</text></clause>
<clause id="HF124FEAF7805481C9F59CF6CE44C4FD"><enum>(iii)</enum><text display-inline="yes-display-inline">avoidance of double counting of greenhouse gas emissions, emission reductions, and increases in sequestration; and</text></clause>
<clause id="HFA3D8B8AA2F0467DB101CA3FB16FF26"><enum>(iv)</enum><text>such other factors as the Administrator, in consultation with the Secretary, the Secretary of Energy, and the Secretary of Agriculture, determines to be appropriate;</text></clause></subparagraph>
<subparagraph id="H539163D81ECB4B9C817F52F66598DC65"><enum>(C)</enum><text>establishment of methods of—</text>
<clause id="H765138EDD2C242CBA358F278629749D7"><enum>(i)</enum><text>estimating greenhouse gas emissions, for those cases in which the Administrator determines that methods of monitoring or measuring such emissions with precision, reliability, accessibility, and timeliness similar to that provided by a continuous emissions monitoring system are not technologically feasible at present; and</text></clause>
<clause id="H355CA40A9B8D4F8CB69C4F543CC7133C"><enum>(ii)</enum><text>reporting the accuracy of such estimations;</text></clause></subparagraph>
<subparagraph id="HCA38A573FA4345CEA65C00B6876F3FB3"><enum>(D)</enum><text>establishment of measurement and verification standards applicable to actions taken to reduce or sequester greenhouse gas emissions;</text></subparagraph>
<subparagraph id="H0E32A719385D48AF84B07F87E7C6971F"><enum>(E)</enum><text>in coordination with the Secretary of Agriculture, standards to measure the results of the use of carbon sequestration, including—</text>
<clause id="HA4BE46ECFE4542929957461BC7C2DEA5"><enum>(i)</enum><text>soil carbon sequestration practices;</text></clause>
<clause id="HA4909556F7784BF0859343E5D223E9ED"><enum>(ii)</enum><text>forest preservation and reforestation activities that adequately address the issues of permanence, leakage, and verification; and</text></clause>
<clause id="H2433E94B19BD4E0AB5F294C231369334"><enum>(iii)</enum><text>production of cellulosic biomass crops;</text></clause></subparagraph>
<subparagraph id="H6F2F245039224B1B9CBC1C60C01D62AE"><enum>(F)</enum><text>establishment of standards for obtaining the Administrator’s approval of the suitability of geological storage sites that include evaluation of both the geology of the site and the entity’s capacity to manage the site;</text></subparagraph>
<subparagraph id="H21090190DB11471CAAB2182C881F4394"><enum>(G)</enum><text>establishment of other features that, as determined by the Administrator, will allow entities to adequately establish a fair and reliable measurement and reporting system; and</text></subparagraph>
<subparagraph id="HE425494BFCAF4466B5BD263237C32AA"><enum>(H)</enum><text>establishment of such other measurement and verification standards as the Administrator, in consultation with the Secretary of Agriculture, the Secretary, and the Secretary of Energy, determines to be appropriate.</text></subparagraph></paragraph></subsection>
<subsection id="HC5950CCD98664907B3D3254FE317196B"><enum>(b)</enum><header>Public participation</header><text>The Administrator shall make available to the public for comment, in draft form and for a period of at least 90 days, the methods and standards developed under subsection (a) before issuing final regulations under this section.</text></subsection>
<subsection id="H5255797699FE45FD977255139ED305B3"><enum>(c)</enum><header>Experts and consultants</header>
<paragraph id="H76E83E16E57D453FA9B5CC5875B0FDC9"><enum>(1)</enum><header>In general</header><text>The Administrator may obtain the services of experts and consultants in the private and nonprofit sectors for the purpose of carrying out this section in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United States Code, in the areas of greenhouse gas measurement, certification, and emission trading.</text></paragraph>
<paragraph id="H056A5EE38BA344FBA0035B0002DD007C"><enum>(2)</enum><header>Available arrangements</header><text>In obtaining any service described in paragraph (1), the Administrator may use any available grant, contract, cooperative agreement, or other arrangement authorized by law.</text></paragraph></subsection>
<subsection id="HE5295958708342B882A7AAB121B1CB4"><enum>(d)</enum><header>Review and revision</header><text>The Administrator shall periodically review, and revise as necessary, the methods and standards developed under subsection (a).</text></subsection></section></subtitle>
<subtitle id="HB31249049FF24F7E901DF26DD351764D"><enum>B</enum><header>Mandating emission reductions</header>
<section id="H28051FA1FFAA4FF682C9400100C16039"><enum>121.</enum><header>Covered entities must submit allowances for emissions</header>
<subsection id="HAB05554E03814A42850756DC6195F7A8"><enum>(a)</enum><header>In general</header><text>Beginning with calendar year 2012—</text>
<paragraph id="H7C8C2ED76914436D82718F1FEC4D40AF"><enum>(1)</enum><text>each covered entity in the electric power, industrial, and commercial sectors shall submit to the Administrator one tradeable allowance for every metric ton of greenhouse gases, measured in units of carbon dioxide equivalents, that it emits from stationary sources, except those described in paragraph (2);</text></paragraph>
<paragraph id="H1BF8078CE3194FD78B49A2F01F21973B"><enum>(2)</enum><text>each producer or importer of hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride that is a covered entity shall submit to the Administrator one tradeable allowance for every metric ton of hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride, measured in units of carbon dioxide equivalents, that it produces or imports and that are deemed under subsection (d) to be emitted in the United States; and</text></paragraph>
<paragraph id="H21108F19EA5347AABC50C05115366359"><enum>(3)</enum><text>each petroleum product refiner or importer that is a covered entity shall submit one tradeable allowance for every unit of petroleum product it sells that will produce one metric ton of greenhouse gases when used for transportation, measured in units of carbon dioxide equivalents, as determined by the Administrator under subsection (b).</text></paragraph></subsection>
<subsection id="HF6BD43B85689493D9236365C6FBA47AA"><enum>(b)</enum><header>Determination of Transportation sector amount</header><text>For the transportation sector, the Administrator shall determine the amount of greenhouse gases, measured in units of carbon dioxide equivalents, that will be deemed to be emitted when petroleum products are used for transportation.</text></subsection>
<subsection commented="no" id="H515D6E505E2A41B8AE34A915CFC10AD"><enum>(c)</enum><header>Exception for certain deposited emissions</header><text>Notwithstanding subsection (a), a covered entity is not required to submit a tradeable allowance for any amount of greenhouse gas that would otherwise have been emitted from a facility under the ownership or control of that entity if—</text>
<paragraph commented="no" id="H19965EE04594425490F98533931826F3"><enum>(1)</enum><text>the emission is deposited in a geological storage facility approved by the Administrator described in section 104(a)(2)(F); and</text></paragraph>
<paragraph commented="no" id="H5739E834010E478EA639ED00C9005374"><enum>(2)</enum><text>the entity agrees to submit tradeable allowances for any portion of the deposited emission that is subsequently emitted from that facility.</text></paragraph></subsection>
<subsection id="H54A5A37691E641C6B5B3932182FF8962"><enum>(d)</enum><header>Determination of hydrofluorocarbon, perfluorocarbon, and sulfur hexafluoride amount</header><text>The Administrator shall determine the amounts of hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride, measured in units of carbon dioxide equivalents, that will be deemed to be emitted for purposes of this Act.</text></subsection>
<subsection id="H582D09E4F8024AEFB3D8D764B93C2000"><enum>(e)</enum><header>Allowances retired</header><text>Upon receiving a tradeable allowance pursuant to a requirement under this subtitle, the Administrator shall retire the serial number assigned to that allowance.</text></subsection></section>
<section id="HD3D91B51CF39494EB9EEC9D1C7A12159"><enum>122.</enum><header>Compliance</header>
<subsection id="HCAAE6E167B0C4395AFBC7C1BF9714AC"><enum>(a)</enum><header>Source of tradeable allowances used</header><text>A covered entity may use a tradeable allowance to meet the requirements of this subtitle without regard to whether the tradeable allowance was allocated to it under subtitle D or acquired from another entity or the Climate Change Credit Corporation established under section 201.</text></subsection>
<subsection id="HEA5CD678FCFC4827A7D01EA300D05D05"><enum>(b)</enum><header>Verification by Administrator</header><text>At various times during each year, the Administrator shall determine whether each covered entity has met the requirements of this subtitle. In making that determination, the Administrator shall take into account the tradeable allowances submitted by the covered entity to the Administrator.</text></subsection></section>
<section commented="no" id="H940ABD9270D54A1DAC98D5A56167F1D6"><enum>123.</enum><header>Exemption of source categories</header>
<subsection commented="no" id="HE2D98DFDF49D4D6D8FB5938FE5915F52"><enum>(a)</enum><header>In general</header><text>The Administrator may grant an exemption from the requirements of this subtitle to a source category if the Administrator determines, after public notice and comment, that it is not feasible to measure or estimate emissions from that source category, until such time as measurement or estimation becomes feasible.</text></subsection>
<subsection commented="no" id="H643EB0F6D29146D0BBA8D88CA029E7A0"><enum>(b)</enum><header>Reduction of limitations</header><text>If the Administrator exempts a source category under subsection (a), the Administrator shall also reduce the total tradeable allowances under section 124(a)(1), (2), (3), or (4), as applicable, by the amount of greenhouse gas emissions that the exempted source category emitted in calendar year 2000, as identified in the 2000 Inventory.</text></subsection>
<subsection commented="no" id="H27924EB4862742DE95FBAD189D9829EE"><enum>(c)</enum><header>Limitation on exemption</header><text>The Administrator may not grant an exemption under subsection (a) to carbon dioxide produced from fossil fuel.</text></subsection></section>
<section id="H2AFB3D8E30CB4FE89794FD6691775700"><enum>124.</enum><header>Establishment of tradeable allowances</header>
<subsection id="H4E493BC8A2E34FBCB2462029E353D3EF"><enum>(a)</enum><header>In general</header><text>The Administrator shall promulgate regulations to establish tradeable allowances, denominated in units of carbon dioxide equivalents, as follows:</text>
<paragraph id="HFDF81109C47A4902AA36DCD4E6302E00"><enum>(1)</enum><text>For the first 8 calendar years beginning after 2011, the number of tradeable allowances shall be equal to the number of metric tons of greenhouse gases emitted in 2006, measured in units of carbon dioxide equivalents, reduced by the amount of emissions of greenhouse gases in calendar year 2012 from noncovered entities, as calculated by the Administrator.</text></paragraph>
<paragraph id="H61C995F7E1914EC2879873F64925379D"><enum>(2)</enum><text display-inline="yes-display-inline">For the first 10 calendar years beginning after 2019, the number of tradeable allowances shall be equal to 85 percent of the number of metric tons of greenhouse gases emitted in 2006, measured in units of carbon dioxide equivalents, reduced by the amount of emissions of greenhouse gases in calendar year 2020 from noncovered entities, as calculated by the Administrator.</text></paragraph>
<paragraph id="HE1D64BDB73FC4F0BBF6593441FEB10AE"><enum>(3)</enum><text display-inline="yes-display-inline">For the first 10 calendar years beginning after 2029, the number of tradeable allowances shall be equal to 63 percent of the number of metric tons of greenhouse gases emitted in 2006, measured in units of carbon dioxide equivalents, reduced by the amount of emissions of greenhouse gases in calendar year 2030 from noncovered entities, as calculated by the Administrator.</text></paragraph>
<paragraph id="H9EE4532CBE6347F4B068700066E0C2B0"><enum>(4)</enum><text display-inline="yes-display-inline">For calendar years beginning after 2049, the number of tradeable allowances shall be equal to 25 percent of the number of metric tons of greenhouse gases emitted in 2006, measured in units of carbon dioxide equivalents, reduced by the amount of emissions of greenhouse gases in each such calendar year from noncovered entities, as calculated by the Administrator.</text></paragraph></subsection>
<subsection id="H8EB268CBADD842548755B87B11A26963"><enum>(b)</enum><header>Serial numbers</header><text>The Administrator shall assign a unique serial number to each tradeable allowance established under subsection (a), and shall take such action as may be necessary to prevent counterfeiting of tradeable allowances.</text></subsection>
<subsection id="HE50E2086D80C40960074005D9527B7B2"><enum>(c)</enum><header>Nature of tradeable allowances</header><text>A tradeable allowance is not a property right, and nothing in this title or any other provision of law limits the authority of the United States to terminate or limit a tradeable allowance.</text></subsection>
<subsection id="HB4A52786632B43A1AC4099B093DC6961"><enum>(d)</enum><header>Noncovered entity</header><text>For purposes of this section only, the term <term>noncovered entity</term> means an entity that—</text>
<paragraph id="H5F519C9D40A542778DB8C97FA1690039"><enum>(1)</enum><text>owns or controls a source of greenhouse gas emissions in the electric power, industrial, or commercial sector of the United States economy (as defined in the Inventory), refines or imports refined petroleum products for use in transportation, or produces or imports hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride; and</text></paragraph>
<paragraph id="HB062B570DC9E4FE2976F5222289C19AE"><enum>(2)</enum><text>is not a covered entity.</text></paragraph></subsection></section>
<section id="H52204DC39F7D42E8ADD0F88F20979D10" section-type="subsequent-section" display-inline="no-display-inline"><enum>125.</enum><header>International reserve allowance program</header>
<subsection id="H72DA741573614932949BDE8864E022AB"><enum>(a)</enum><header>Purposes</header><text>The purposes of this section are—</text>
<paragraph id="H08467C6FAE934F608B01FB05B298E5C6"><enum>(1)</enum><text>to ensure that greenhouse gas emissions occurring outside the United States do not undermine the objectives of the United States to reduce greenhouse gas emissions and to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system;</text></paragraph>
<paragraph id="H126831B56EA645C4A9D94EDD6E993574"><enum>(2)</enum><text>to ensure that manufactured products produced in the United States remain competitive, in international and domestic markets, with comparable products produced in foreign nations that do not have restrictions on greenhouse gas emissions comparable to those described in section 124; and</text></paragraph>
<paragraph id="H2810866D0A9E479BB1C8EBC496E2B928"><enum>(3)</enum><text>to encourage effective international action to achieve the purposes stated in paragraphs (1) and (2) through procedures negotiated between the United States and other countries or through measures taken by the United States that comply with applicable international agreements.</text></paragraph></subsection>
<subsection id="HC1BE25CDF1F14720A0B77BB86E19B877"><enum>(b)</enum><header>International negotiations</header>
<paragraph id="H7274C18E3D4048B68FA849E8E824B4B4"><enum>(1)</enum><header>Finding</header><text>Congress finds that the purposes described in subsection (a) can be most effectively addressed and achieved through procedures negotiated between the United States and other countries.</text></paragraph>
<paragraph id="H6E6E75D7B8F54A04BBD06F124FF2CEF7"><enum>(2)</enum><header>Negotiating objective</header><text>To the extent that the procedures described in paragraph (1) involve measures affecting international trade in goods or services, the climate change negotiating objective of the United States shall be to conclude agreements on the reduction of greenhouse gas emissions that will help to achieve the purposes described in subsection (a).</text></paragraph></subsection>
<subsection id="HB512E34AB1AA4B80BA5B8004935E435F"><enum>(c)</enum><header>International equity program</header>
<paragraph id="H42E20D9F4F584950B7D7585EB8B7006C"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The President may establish a program to require importers to pay the value of greenhouse gases (based on the market price of tradeable allowances issued under this Act) emitted during the production of goods or services imported into the United States from any foreign nation other than those described in paragraph (2).</text></paragraph>
<paragraph id="HAB3A3C4EBDE543EFBCDBF9FF0720AAC2"><enum>(2)</enum><header>Nations not subject to program</header><text>The foreign nations referred to in paragraph (1) are those that—</text>
<subparagraph id="H590CE69B85D84F12A4BA5626DBDE5735"><enum>(A)</enum><text>are a party to an agreement with the United States that achieves the purposes of this section; or</text></subparagraph>
<subparagraph id="HF0EE41504CCF4E56AF00612139F61F27"><enum>(B)</enum><text>impose restrictions on greenhouse gas emissions that are comparable to such restrictions imposed in the United States.</text></subparagraph></paragraph>
<paragraph id="HC03CC1447D0C4AB2BDF934DC51BECE76"><enum>(3)</enum><header>Negotiations</header><text display-inline="yes-display-inline">The President shall not impose the requirements of a program established under paragraph (1) on imports from any foreign nation unless negotiations to achieve an agreement described in paragraph (2)(A) have been attempted by the United States with that foreign nation.</text></paragraph></subsection>
<subsection id="H53F6D9A9C50E45EC9CBF00E9D9906C88"><enum>(d)</enum><header>Consistency with international agreements</header><text>A program established under subsection (c) shall be designed to ensure that the United States complies with all applicable international agreements.</text></subsection> </section>
<section display-inline="no-display-inline" id="HC8F5180103CC48FBA48BA29BC5E9CBD" section-type="subsequent-section"><enum>126.</enum><header>Penalties</header><text display-inline="no-display-inline">Any covered entity that fails to meet the requirements of this subtitle for a year shall be liable for a civil penalty, payable to the Administrator, equal to thrice the market value (determined as of the last day of the year at issue) of the tradeable allowances that would be necessary for that covered entity to meet those requirements on the date that the tradeable allowances were due.</text></section></subtitle>
<subtitle id="H6BFCFBDC61374D3CB165438CDCB4DC7"><enum>C</enum><header>Controlling compliance costs</header>
<part id="HA092C58F4C87439F8CEA1C820166EEBD"><enum>1</enum><header>Use of Allowances</header>
<section id="HB16B2685187F4DFEB36FA409335319A3"><enum>141.</enum><header>Trading</header>
<subsection id="HDFE42E01211B4612A2408800F85F00B5"><enum>(a)</enum><header>In general</header><text>Tradeable allowances may be sold, exchanged, purchased, retired, or used as provided in this Act.</text></subsection>
<subsection id="H68B42B3DA5EC4F81A23F6BB99C626458"><enum>(b)</enum><header>Intersector trading</header><text>Covered entities may purchase or otherwise acquire tradeable allowances from other covered sectors to satisfy the requirements of this title, in addition to those from within their own sector.</text></subsection></section>
<section id="HB85B7B73F9C24C31AFCAF65F01294CF9"><enum>142.</enum><header>Banking</header><text display-inline="no-display-inline">Tradeable allowances not used to satisfy the requirements of this title in a year may be used to satisfy the requirements in a later year.</text></section>
<section id="HA1E647575F5A40F4947E34241516FD81"><enum>143.</enum><header>Borrowing against future reductions</header>
<subsection id="H540400C7B6EB403E9FC3874FC8888774"><enum>(a)</enum><header>In general</header><text>The Administrator shall establish a program under which a covered entity may—</text>
<paragraph id="H3AF05CBEEC3E4AEA8800A381A593848E"><enum>(1)</enum><text>receive a credit in the current calendar year for anticipated reductions in emissions in a future calendar year; and</text></paragraph>
<paragraph id="H0D3DD8D19BBE427D992712003DE123F1"><enum>(2)</enum><text>use the credit in lieu of a tradeable allowance to meet the requirements of this title for the current calendar year, subject to the limitation imposed by subsection (b).</text></paragraph></subsection>
<subsection id="H8ED1C3BC2A3C45CF82C19D8CC75D0031"><enum>(b)</enum><header>Determination of tradeable allowance credits</header>
<paragraph id="H96797F914C66439587223CFB79F26334"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the Administrator may make credits available under subsection (a) only for anticipated reductions in emissions that—</text>
<subparagraph id="HC07D4C3A2E794E3D9042EA5650528700"><enum>(A)</enum><text>are attributable to the realization of capital investments in equipment, the construction, reconstruction, or acquisition of facilities, or the deployment of new technologies—</text>
<clause id="HB5C7EC6E3BE141CBAD4E2865F44BA17D"><enum>(i)</enum><text>for which the covered entity has executed a binding contract and secured, or applied for, all necessary permits and operating or implementation authority;</text></clause>
<clause id="HA28CB924E636430400C9C100318595C3"><enum>(ii)</enum><text>that will not become operational within the current calendar year; and</text></clause>
<clause id="H7B6D59FA6850496AA78EC9356368100"><enum>(iii)</enum><text>that will become operational and begin to reduce emissions from the covered entity within 5 years after the year in which the credit is used; and</text></clause></subparagraph>
<subparagraph id="H549543DC9B764020B4C522BC3996E264"><enum>(B)</enum><text>will be realized within 5 years after the year in which the credit is used.</text></subparagraph></paragraph>
<paragraph id="H9568AA332A294A81A3FE623370302D9F"><enum>(2)</enum><header>Board</header><text>The Administrator shall make credits available under subsection (a) as instructed by the Board under section 153(a)(1) or (2)(A).</text></paragraph> </subsection>
<subsection id="H0050FB497E07410800D17D8FCA979B07"><enum>(c)</enum><header>Carrying cost</header><text>If a covered entity uses a credit under this section to meet the requirements of this title for a calendar year (in this subsection referred to as the use year), the tradeable allowance requirement for the year from which the credit was taken (in this subsection referred to as the source year) shall be increased by an amount equal to—</text>
<paragraph id="H36A07D328AF549E1BACB80CBF235004E"><enum>(1)</enum><text>10 percent for each credit borrowed from the source year; multiplied by</text></paragraph>
<paragraph id="H06DB922457704859B8D833195BDB69FC"><enum>(2)</enum><text>the number of years after the use year that the source year occurs.</text></paragraph></subsection>
<subsection id="H0C5CAF3D702746DF83A3DEE37DB679E7"><enum>(d)</enum><header>Maximum borrowing period</header><text>A credit from a year beginning more than 5 years after the current year may not be used to meet the requirements of this title for the current year.</text></subsection>
<subsection commented="no" id="HD3EA90B6B4C04F629E74C74D0029C3D3"><enum>(e)</enum><header>Failure To achieve reductions generating credit</header><text>If a covered entity that uses a credit under this section fails to achieve the anticipated reduction for which the credit was granted for the year from which the credit was taken, then—</text>
<paragraph commented="no" id="H0A7101B907464EE8BA2ED674E71FCA38"><enum>(1)</enum><text>the covered entity’s requirements under this Act for that year shall be increased by the amount of the credit, plus the amount determined under subsection (c);</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA0C4199F95BF4C3CAAF6745E59CFF3B3"><enum>(2)</enum><text>any tradeable allowances submitted by the covered entity for that year shall be counted first against the increase in those requirements; and</text></paragraph>
<paragraph commented="no" id="HEBA2C602BD134E918DC9A530DD438900"><enum>(3)</enum><text>the covered entity may not use credits under this section to meet the increased requirements.</text></paragraph></subsection></section>
<section id="HC769668CBFA44A0780D29B99BEF65B48"><enum>144.</enum><header>Domestic offsets</header>
<subsection id="H260D57A40E504051AC00A500992D7B77"><enum>(a)</enum><header>Alternative means of compliance</header><text>A covered entity may satisfy up to 15 percent of its total allowance submission requirement under section 121 by any combination of the following:</text>
<paragraph id="H1CD26085921A4594A73598A12F2DB65B"><enum>(1)</enum><text>Submitting tradeable allowances from another nation’s market in greenhouse gas emissions if—</text>
<subparagraph id="H724EAB6E6E7444E498BC22FB07B52C1B"><enum>(A)</enum><text>the Administrator determines that the other nation’s system for trading in greenhouse gas emissions is complete, accurate, and transparent and reviews that determination at least once every 5 years;</text></subparagraph>
<subparagraph id="H099D38238D38437EA15B33005D82F0AA"><enum>(B)</enum><text>the other nation has adopted enforceable limits on its greenhouse gas emissions which the tradeable allowances were issued to implement; and</text></subparagraph>
<subparagraph id="H5D8B2846913A4EB2ABA4CF25B2E93634"><enum>(C)</enum><text>the covered entity certifies that the tradeable allowance has been retired unused in the other nation’s market.</text></subparagraph></paragraph>
<paragraph id="HE4CEFA8A927345909D7C2CBA008BA213"><enum>(2)</enum><text>Submitting a registered net increase in sequestration, as registered in the database, adjusted, if necessary, to comply with the accounting standards and methods described in subsection (c). An increase in sequestration submitted under this paragraph need not have been registered by the covered entity submitting it.</text></paragraph>
<paragraph id="H52391B7FA2064D8D8E10D02F4647170"><enum>(3)</enum><text>Submitting a greenhouse gas emissions reduction (other than a registered net increase in sequestration) that was registered in the database by a person that is not a covered entity.</text></paragraph>
<paragraph id="H8FED1759AC4A4C2DBFCAB8E7E5BCC33C"><enum>(4)</enum><text>Submitting credits obtained by the submitting covered entity from the Administrator under section 143 or section 145.</text></paragraph></subsection>
<subsection id="HBE3E9270739B493886D3610029861386"><enum>(b)</enum><header>Dedicated program for sequestration in agricultural soils</header><text>If a covered entity satisfies a full 15 percent of its total allowance submission requirements pursuant to subsection (a), it shall satisfy up to 1.5 percent of its total allowance submission requirement by submitting registered net increases in sequestration in agricultural soils, as registered in the database, adjusted, if necessary, to comply with the accounting standards and methods described in subsection (c).</text></subsection>
<subsection display-inline="no-display-inline" id="HB80553ADF6CE4148AA76B3AD93004DD1"><enum>(c)</enum><header>Sequestration accounting</header>
<paragraph id="H7EDED12150A24C5E91E65CDC249258B3"><enum>(1)</enum><header>Sequestration accounting</header><text>If a covered entity uses a registered net increase in sequestration to satisfy the requirements of section 121 for any year, that covered entity shall submit information to the Administrator every 5 years thereafter sufficient to allow the Administrator to determine, using the methods and standards created under section 104, whether that net increase in sequestration still exists. The covered entity shall offset any loss of sequestration by submitting additional tradeable allowances of equivalent amount in the calender year following that determination.</text></paragraph>
<paragraph id="HB06B0192755243B68E44999B4B2DB2A6"><enum>(2)</enum><header>Regulations required</header><text>The Administrator, in coordination with the Secretary of Agriculture, the Secretary of Energy, and the Secretary, shall issue regulations establishing the sequestration accounting rules for all classes of sequestration projects.</text></paragraph>
<paragraph id="H68DB63B377104011848DEADA2137E7C"><enum>(3)</enum><header>Criteria for regulations</header><text>In issuing regulations under this subsection, the Administrator shall use the following criteria:</text>
<subparagraph id="HE024AFCB5D5F4EA9A87E26E8CFF0D6DE"><enum>(A)</enum><text>If the range of possible amounts of net increase in sequestration for a particular class of sequestration project is not more than 10 percent of the median of that range, the amount of sequestration credited shall be equal to the median value of that range.</text></subparagraph>
<subparagraph id="H199762D3D5944522B25714679412C714"><enum>(B)</enum><text>If the range of possible amounts of net increase in sequestration for a particular class of sequestration project is more than 10 percent of the median of that range, the amount of sequestration awarded shall be equal to the fifth percentile of that range.</text></subparagraph>
<subparagraph id="HC91D65E4625B4145BB3D8414939DDE69"><enum>(C)</enum><text>The regulations shall include procedures for accounting for potential leakage from sequestration projects and for ensuring that any registered increase in sequestration is in addition that which would have occurred if this Act had not been enacted.</text></subparagraph></paragraph>
<paragraph id="H88A9DA0B686A45BAA242D822B83BED07"><enum>(4)</enum><header>Updates</header><text>The Administrator shall update the sequestration accounting rules for every class of sequestration project at least once every 5 years.</text></paragraph></subsection></section>
<section display-inline="no-display-inline" id="H6939AF57AAC949B6BB7DBA888004EB87" section-type="subsequent-section"><enum>145.</enum><header>International credits plan</header>
<subsection id="H8737703C43A14408B3F01803AA313749"><enum>(a)</enum><header>Establishment</header><text>The Administrator shall establish a program the purposes of which are—</text>
<paragraph id="H53FB0FCC7479420680273DBBA600E026"><enum>(1)</enum><text>to assist developing countries in achieving sustainable development and in contributing to the objective of reducing the greenhouse gas emissions; and</text></paragraph>
<paragraph id="H2EB7C74A13084DA2AC2C869476487670"><enum>(2)</enum><text>to assist covered entities in achieving compliance with the requirements of section 121.</text></paragraph></subsection>
<subsection id="H62438E7250554A54AA1E042B31A7E7D"><enum>(b)</enum><header>Program Components</header>
<paragraph id="H5960E748AE064419A87EDA8CF5735C96"><enum>(1)</enum><header>In general</header><text>The program shall provide for the earning of tradable allowances by covered entities from project activities in developing countries resulting in certified emission reductions. The Administrator shall ensure tradability of emission reductions earned under this program with reductions earned under other similar international programs.</text></paragraph>
<paragraph id="H8B8D25CA2698479A8D40A3038262373F"><enum>(2)</enum><header>Approval criteria and review process</header><text>By no later than 2011, the Administrator shall—</text>
<subparagraph id="H38E9DCA6438C44D290C57B0305E2D77"><enum>(A)</enum><text>develop criteria for the approval of projects submitted for review; and</text></subparagraph>
<subparagraph id="HC8EE492EBAFA4A038B3706EA6EE6254"><enum>(B)</enum><text>establish a review process for submitted projects that includes a procedure for providing the results of the review, together with an explanation of the reasons for approving or denying approval of a submitted project, to the entity that submitted the project.</text></subparagraph></paragraph>
<paragraph id="HDF388F6EBC394E5A917225DFB1602637"><enum>(3)</enum><header>Fees</header><text>The Administrator may charge an application fee for the review of project proposals to cover the administrative costs of the program.</text></paragraph>
<paragraph id="HBF6B534ADE694EFE89FAB6815B9129A6"><enum>(4)</enum><header>Certification of results required</header><text>The Administrator shall require entities participating in this program to obtain independent third-party verification that—</text>
<subparagraph id="H4D87C20885234A5400D68107124E8757"><enum>(A)</enum><text>participation by all parties involved in the project is voluntary; and</text></subparagraph>
<subparagraph id="HC4093CDDD6F049E8A1B2E1C4EE7F2EFB"><enum>(B)</enum><text>the project produces—</text>
<clause id="HBA979C89637B47779465AD6D23B7E55E"><enum>(i)</enum><text>real, measurable, and long-term benefits related to the mitigation of climate change; and</text></clause>
<clause id="H83C9EEDF1C334A9BA127427400AD79E4"><enum>(ii)</enum><text>reductions in emissions that are additional to any that would occur in the absence of the certified project activity.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H8C239411F03F40E2B4C14D00142700AB"><enum>(c)</enum><header>Use of allowances</header><text>Subject to the limitation in section 144(a), tradable allowances earned under the program may be used to meet the requirements of section 121.</text></subsection>
<subsection id="HC90E876CB65A47CA9217FD6E2C7D4C25"><enum>(d)</enum><header>Study</header><text>Within 3 years after the date of enactment of this Act, the Administrator, in coordination with the Secretary, shall conduct a study of the impacts of the compliance cost reduction measures of this section and section 144 on achieving the purposes of this Act. The Administrator shall submit the results of the study to the Congress along with any recommendations the Administrator considers appropriate.</text></subsection></section>
<section id="H72531AAE84AA4E888BF94D096201C94B"><enum>146.</enum><header>Outreach initiative on revenue enhancement for agricultural producers</header>
<subsection id="HFC5754A3D97C4D2F81B39BE6E350EAAF"><enum>(a)</enum><header>Establishment</header><text>The Secretary of Agriculture, acting through the Chief of the Natural Resources Conservation Service, the Chief of the Forest Service, the Administrator of the Cooperative State Research, Education, and Extension Service, and land-grant colleges and universities, in consultation with the Administrator and the heads of other appropriate departments and agencies, shall establish an outreach initiative to provide information to agricultural producers, agricultural organizations, foresters, and other landowners about opportunities under sections 144 and 145 to earn new revenue.</text></subsection>
<subsection id="HC663973CD50046A3889B00233B2DFBC5"><enum>(b)</enum><header>Components</header><text>The initiative under this section—</text>
<paragraph id="HD0785556B30F471FB7ABA7FEDCEE26AA"><enum>(1)</enum><text display-inline="yes-display-inline">shall be designed to ensure that, to the maximum extent practicable, agricultural organizations and individual agricultural producers, foresters, and other landowners receive detailed practical information about—</text>
<subparagraph id="H1DD185987B2C469E813BEB93CE5D2607"><enum>(A)</enum><text>opportunities to earn new revenue under sections 144 and 145;</text></subparagraph>
<subparagraph id="H78D2216F44304CE8824E8C71888B71E1"><enum>(B)</enum><text>measurement protocols, monitoring, verifying, inventorying, registering, insuring, and marketing offsets under this title;</text></subparagraph>
<subparagraph id="HC786357A150F41ECB2F299042B06D721"><enum>(C)</enum><text>emerging domestic and international markets for energy crops, allowances, and offsets; and</text></subparagraph>
<subparagraph id="H431ACFE44F6141058630AFD43940E900"><enum>(D)</enum><text>local, regional, and national databases and aggregation networks to facilitate achievement, measurement, registration, and sales of offsets;</text></subparagraph></paragraph>
<paragraph id="H38372632988A4D2982D2F58005B4DAE"><enum>(2)</enum><text display-inline="yes-display-inline">shall provide—</text>
<subparagraph id="HEB18AB2E06F842F6BC75FD375E4BFC11"><enum>(A)</enum><text>outreach materials, including the handbook published under subsection (c), to interested parties;</text></subparagraph>
<subparagraph id="H6C3DF283DC0948A48965BBB0326E2EA0"><enum>(B)</enum><text>workshops; and</text></subparagraph>
<subparagraph id="H7FD5AEC33A1946969D9F078EEE90304"><enum>(C)</enum><text>technical assistance; and</text></subparagraph></paragraph>
<paragraph id="H52D52C98F09F4AEBA8868CBA353F60C6"><enum>(3)</enum><text>may include the creation and development of regional marketing centers or coordination with existing centers (including centers within the Natural Resources Conservation Service or the Cooperative State Research, Education, and Extension Service or at land-grant colleges and universities).</text></paragraph></subsection>
<subsection id="HCC8F9911376F4D639F005F3235DAE0D1"><enum>(c)</enum><header>Handbook</header>
<paragraph id="H1A81FD52ACDB4AEFB167999C266B8933"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this Act, the Secretary of Agriculture, in consultation with the Administrator and after an opportunity for public input, shall publish a handbook for use by agricultural producers, agricultural cooperatives, foresters, other landowners, offset buyers, and other stakeholders that provides easy-to-use guidance on achieving, reporting, registering, and marketing offsets.</text></paragraph>
<paragraph id="H5D90F89E8B7842EF97B236275FED7BC6"><enum>(2)</enum><header>Distribution</header><text>The Secretary of Agriculture shall ensure, to the maximum extent practicable, that the handbook is distributed widely through land-grant colleges and universities and other appropriate institutions.</text></paragraph></subsection></section></part>
<part id="HFF1CFDC89D704E7584E054E903B67B57"><enum>2</enum><header>Carbon Market Efficiency Board</header>
<section id="H4CD1CF2FC4A2438CB3F2DC00BD5086F6"><enum>151.</enum><header>Establishment of Board</header>
<subsection id="HEE33DB8E6DF2449BBD0053B1B63CA962"><enum>(a)</enum><header>Establishment</header><text>There is established a board, to be known as the <quote>Carbon Market Efficiency Board</quote>.</text></subsection>
<subsection id="H0E99AFE5B7B942FB00EA2EB3137E0079"><enum>(b)</enum><header>Purposes</header><text>The purposes of the Board are—</text>
<paragraph id="H3DCECFC923544B4F8923561C8BE2D3D"><enum>(1)</enum><text>to promote the achievement of the environmental objectives of the United States, including national mandatory greenhouse gas emissions cap and reduction targets in this or any other Act;</text></paragraph>
<paragraph id="H57D47B2D71C943E5848CF2E74050039"><enum>(2)</enum><text>to observe the national greenhouse gas tradeable allowance market and evaluate periods during which the cost of tradeable allowances provided under this Act or any other Federal law might pose significant harm to the economy;</text></paragraph>
<paragraph id="H85711DDD47D6497BAC7FC2D36CB250C4"><enum>(3)</enum><text>to provide temporary, short-term relief at any time at which a market program for tradeable allowances under this Act or other Federal law is determined to pose a significant harm to the economy, by using the cost relief measures prescribed under section 153; and</text></paragraph>
<paragraph id="HB40EF75072FA42E9A9348B83D6289F40"><enum>(4)</enum><text>to submit to the President and Congress quarterly reports under section 152(c).</text> </paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFA5421CD3B494351BA00DE07532733DF"><enum>(c)</enum><header>Membership</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7FEC40B80D804CB3B26300C3E6B0007F"><enum>(1)</enum><header>Composition</header><text display-inline="yes-display-inline">The Board shall be composed of 7 members, who are citizens of the United States, to be appointed by the President, by and with the advice and consent of the Senate.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H5B279DCEE5694297A2335166F4B9C5B7"><enum>(2)</enum><header>Requirements</header><text>In appointing members of the Board under paragraph (1), the President shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFAFA61220D0042E5931FB7ED132DA497"><enum>(A)</enum><text display-inline="yes-display-inline">ensure fair representation of the financial, agricultural, industrial, and commercial sectors, and the geographical regions, of the United States and include a representative of consumer interests; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H72D5E560C4EE4BD2BF454C002D453990"><enum>(B)</enum><text>appoint not more than 1 member from each such geographical region.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBE5EE179016A40D7AF81EE2321C2C8A8"><enum>(3)</enum><header>Compensation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFA49E38F22974C309B3979CB28AF9368"><enum>(A)</enum><header>In general</header><text>A member of the Board shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level II of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5313">section 5313</external-xref> of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Board.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8B76D272547646A4BA884466ABB3C43F"><enum>(B)</enum><header>Chairperson</header><text>The Chairperson of the Board shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level I of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5312">section 5312</external-xref> of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Board.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD20C64F99E794A78B8500084D8006465"><enum>(4)</enum><header>Prohibitions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8059365660D4E1A9C1DF104C9BFDF1D"><enum>(A)</enum><header>Conflicts of interest</header><text>An individual employed by, or holding any official relationship (including any shareholder) with, any entity engaged in the generation, transmission, distribution, or sale of energy, or an individual who has any pecuniary interest in the generation, transmission, distribution, or sale of energy, shall not be appointed to the Board under this subsection.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC9B0A4BF653E45989489EE4C627F93F6"><enum>(B)</enum><header>No other employment</header><text>A member of the Board shall not hold any other employment during the term of service of the member.</text></subparagraph></paragraph></subsection>
<subsection id="H4147D6E30B104A089CD1E868473C288C"><enum>(d)</enum><header>Term; vacancies</header>
<paragraph id="H5B387E4FDEF04BCE89C528ACFEFC241"><enum>(1)</enum><header>Term</header>
<subparagraph id="HBB3E9FF3C9C94EAE9EE252AC9D230280"><enum>(A)</enum><header>In general</header><text>The term of a member of the Board shall be 14 years, except that the members first appointed to the Board shall be appointed for terms in a manner that ensures that—</text>
<clause id="H90B63C3A23604288B68E0051BEE01B3D"><enum>(i)</enum><text>the term of not more than 1 member shall expire during any 2-year period; and</text></clause>
<clause id="H4E231DE4C34C4380912C6D258E2BA23D"><enum>(ii)</enum><text>no member serves a term of more than 14 years.</text></clause></subparagraph>
<subparagraph id="HEECAAE5513D94008935945DECE384EFA"><enum>(B)</enum><header>Oath of office</header><text>A member shall take the oath of office of the Board by not later than 15 days after the date on which the member is appointed under subsection (c)(1).</text></subparagraph>
<subparagraph id="H5BD69D3912214E0181762BA97C07F4D1"><enum>(C)</enum><header>Removal</header>
<clause id="H1A0041F5920C4F3B9DBA7BA37BE047B4"><enum>(i)</enum><header>In general</header><text>A member may be removed from the Board on determination of the President for cause.</text></clause>
<clause id="H51DB4C85F21C49DA0065DCB36FC4AF1D"><enum>(ii)</enum><header>Notification</header><text>The President shall submit to Congress a notification of any determination by the President to remove a member of the Board for cause under clause (i).</text></clause></subparagraph></paragraph>
<paragraph id="HFAC26089BA774AC6812D97D7E2B1E6D"><enum>(2)</enum><header>Vacancies</header>
<subparagraph id="H8CAAA510DA82421597F807C307FC20EC"><enum>(A)</enum><header>In general</header><text>A vacancy on the Board—</text>
<clause id="H78068BD3BC01492DA0B7FB2D9B38F481"><enum>(i)</enum><text>shall not affect the powers of the Board; and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H20029788BADA48B2A673A83C7CDE1055"><enum>(ii)</enum><text>shall be filled in the same manner as the original appointment was made.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H76EEF4CE3EE043818678F787CD355C59"><enum>(B)</enum><header>Service until new appointment</header><text>A member of the Board the term of whom has expired or otherwise been terminated shall continue to serve until the date on which a replacement is appointed under subparagraph (A)(ii), as the President determines to be appropriate.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H59C48340D4D545E8A940F7227DD8E3D9"><enum>(e)</enum><header>Chairperson and vice-chairperson</header><text>Of members of the Board, the President shall appoint—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6F40134041514E86834EDCEFD5BC281"><enum>(1)</enum><text>1 member to serve as Chairperson of the Board for a term of 4 years; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0E685150BCC04EE69ED606B14669B87B"><enum>(2)</enum><text>1 member to serve as Vice-Chairperson of the Board for a term of 4 years.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H1F12834069DC49AF91C4B28E69F17CE8"><enum>(f)</enum><header>Meetings</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2B0502E4D673488CAA6718E95CD900DC"><enum>(1)</enum><header>Initial meeting</header><text>The Board shall hold the initial meeting of the Board as soon as practicable after the date on which all members have been appointed to the Board under subsection (c)(1).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HE67AD3170E8B46B68187695854EF1009"><enum>(2)</enum><header>Presiding officer</header><text>A meeting of the Board shall be presided over by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7CFCDBBF94E5443F8E6810A3BAC9349E"><enum>(A)</enum><text>the Chairperson;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H890F3F05E9B14A06BFC836A97F8D82F5"><enum>(B)</enum><text>in any case in which the Chairperson is absent, the Vice-Chairperson; or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H4D24522207464EC8913BBA9DA2CEDCB5"><enum>(C)</enum><text>in any case in which the Chairperson and Vice-Chairperson are absent, a chairperson pro tempore, to be elected by the members of the Board.</text></subparagraph></paragraph>
<paragraph id="H134198279FEB4C1EBE2174A1F98F8F3E"><enum>(3)</enum><header>Quorum</header><text>Four members of the Board shall constitute a quorum for a meeting of the Board.</text></paragraph>
<paragraph id="H84C1DD55C4EF41CA9D34E4D93EE710EF"><enum>(4)</enum><header>Open meetings</header><text>The Board shall be subject to <external-xref legal-doc="usc" parsable-cite="usc/5/552b">section 552b</external-xref> of title 5, United States Code (commonly known as the <quote>Government in the Sunshine Act</quote>).</text></paragraph></subsection></section>
<section id="HA40FEAD246F34354BD3CA230D6B9B1F0"><enum>152.</enum><header>Duties</header>
<subsection id="HFE88629E435E41B688C49763BC5F48C"><enum>(a)</enum><header>Information gathering</header>
<paragraph id="H021915A1B0BE430FA515169E24252338"><enum>(1)</enum><header>Authority</header><text>The Board shall collect and analyze relevant market information to promote a full understanding of the dynamics of the greenhouse gas emission tradeable allowance market.</text></paragraph>
<paragraph id="H21C01B9855AB4E6DA6FAEB579C3F1C56"><enum>(2)</enum><header>Information</header><text>The Board shall gather such information as the Board determines to be appropriate regarding the status of the market described in paragraph (1), including information relating to—</text>
<subparagraph id="HD595F19D6B4A4044BDB9FCCA0048E1FB"><enum>(A)</enum><text>tradeable allowance allocation and availability;</text></subparagraph>
<subparagraph id="HD4D5028F23A2454F9BCD46362E6E5F07"><enum>(B)</enum><text>the price of tradeable allowances;</text></subparagraph>
<subparagraph id="H832F5D517ED046C886FFA1041448ACF3"><enum>(C)</enum><text>macroeconomic and microeconomic effects of unexpected significant increases in emission allowance prices, or shifts in the emission allowance market, should those increases or shifts occur;</text></subparagraph>
<subparagraph id="H3D6032D09445427FB71D6CBFFAE51321"><enum>(D)</enum><text>economic effect thresholds that could warrant implementation of cost relief measures described in section 153(a) after the initial 2-year period described in section 153(a)(1);</text></subparagraph>
<subparagraph id="H3803A59FC5D143AEA7C99CE407E5E620"><enum>(E)</enum><text>in the event any cost relief measures described in section 153(a) are taken, the effects of those measures on the market;</text></subparagraph>
<subparagraph id="H6DE6D9783CE94C998750361EB49F81C8"><enum>(F)</enum><text>maximum levels of cost relief measures that are necessary to achieve avoidance of economic harm and preserve achievement of the purposes of this Act; and</text></subparagraph>
<subparagraph id="H80C09D796B094B9FB371063094884FD0"><enum>(G)</enum><text>the success of the market in promoting achievement of the purposes of this Act and any other laws of the United States.</text></subparagraph> </paragraph></subsection>
<subsection id="HE422336172DA45A2BFB2BDF3583C8077"><enum>(b)</enum><header>Study</header><text>Not later than January 1, 2014, the Board shall submit to Congress a report describing the status of the initial market for tradeable allowances to emit greenhouse gases in the United States, specifically with respect to volatility within the market and the average price of tradeable allowances during the 90-day period immediately preceding such report.</text> </subsection>
<subsection id="H3C1489A6C54740548FB435E055CD55A"><enum>(c)</enum><header>Reports</header><text>The Board shall submit to the President and Congress quarterly reports—</text>
<paragraph id="HCA889515A2204CAD95678BD1E059B2ED"><enum>(1)</enum><text>describing—</text>
<subparagraph id="H4702F05E47554E62827698921D1B0312"><enum>(A)</enum><text>the status of markets for tradeable allowances provided under this Act or other Federal law;</text></subparagraph>
<subparagraph id="HACD62898B76F4FD4AFDE41B7839BCC00"><enum>(B)</enum><text>the economic effects of the markets;</text></subparagraph>
<subparagraph id="H13CDD9636CB54185B4F3A95C4E891D05"><enum>(C)</enum><text>regional, industrial, consumer, and energy investment responses to the markets;</text></subparagraph>
<subparagraph id="H37BAD5045A084BAF8F82BAEF45C4F4D"><enum>(D)</enum><text>any corrective measures that should be carried out to relieve excessive costs of the markets; and</text></subparagraph>
<subparagraph id="H5C9BB3AA68B9410C007BCE4FE24CDC88"><enum>(E)</enum><text>plans to compensate for those measures;</text></subparagraph></paragraph>
<paragraph id="H21E07D413CD0400100F863366993491D"><enum>(2)</enum><text>describing any cost relief measures carried out under section 153;</text></paragraph>
<paragraph id="H1749AEADB6944D33AED8C1E3FB3EA200"><enum>(3)</enum><text>that are timely and succinct to ensure regular monitoring of market trends; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HFDA18C0E2FCF42DFBF341BEE010004D0"><enum>(4)</enum><text>that are prepared independently by the Board, and not in partnership with Federal agencies.</text></paragraph></subsection></section>
<section id="H486C82ED341249C6BC3C5FFE27FF6FF8"><enum>153.</enum><header>Powers</header>
<subsection id="HCBD735420F2F4FECB72ECFFF9000249E"><enum>(a)</enum><header>Cost relief measures</header>
<paragraph id="H4D37A71A111E4BE1A71E00F49FAA44E8" display-inline="no-display-inline"><enum>(1)</enum><header>Initial period</header><text>During 2012 and 2013, if the Board determines that the average daily closing price of tradeable allowances during any 90-day period exceeds the upper range of the estimate provided under section 154, the Board shall instruct the Administrator to increase the quantity of credits under section 143 that covered entities may receive.</text> </paragraph>
<paragraph id="H832DDD5554F6473AB05E72FB9C5687BD"><enum>(2)</enum><header>Permanent authority</header><text display-inline="yes-display-inline">Beginning on January 1, 2014, if the Board determines that the tradeable allowance market poses a significant harm to the economy of the United States, the Board may carry out 1 or more of the following cost relief measures to ensure a functioning, stable, and efficient market for tradeable allowances to emit greenhouse gases:</text>
<subparagraph id="HE1E076803D6B4ED698D8537F00BF27E5"><enum>(A)</enum><text display-inline="yes-display-inline">Instruct the Administrator to increase the quantity of credits under section 143 that covered entities may receive.</text></subparagraph>
<subparagraph id="HEAC6827DC0F94EBFA4A2AFC045B3E3B"><enum>(B)</enum><text>Expand the period during which a covered entity may repay the allocating agency for a tradeable allowance provided under subparagraph (A).</text></subparagraph>
<subparagraph id="HD438D4DAE99A43B389B72C834716E5B1"><enum>(C)</enum><text>Lower the percentage of carrying costs required under section 143(c)(1) with respect to tradeable allowances provided under subparagraph (A), to a level not less than the percentage of the Moody’s seasoned Aaa corporate bond rate most recently published in the Federal Reserve Statistical Release on selected interest rates, commonly referred to as the H.15 release.</text></subparagraph> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBF9B9AC5943546399FC085709D55DF9F"><enum>(3)</enum><header>Subsequent actions</header><text>On determination by the Board to carry out a cost relief measure pursuant to paragraph (1) or (2), the Board shall—</text>
<subparagraph id="HDA84C46B51624708A4EC941B5138A100"><enum>(A)</enum><text>allow the cost relief measure to be used only during the applicable allocation year;</text></subparagraph>
<subparagraph id="H162E5F5091A74AD7B71B134CCDE81FB9"><enum>(B)</enum><text>exercise the cost relief measure incrementally, and only as needed to avoid significant economic harm during the applicable allocation year; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H586888AB3A9D46AC8E003058377B6D85"><enum>(C)</enum><text>evaluate, at the end of the applicable allocation year, actions that need to be carried out during subsequent years to compensate for any cost relief measure carried out during the applicable allocation year.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HE1753AA71C7F44C993C3115D31A80013"><enum>(4)</enum><header>Increase in quantity of allowances</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9F52E4E228254CA2A4A6BBE260706B1B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If the Board carries out a cost relief measure pursuant to paragraph (1) or (2) that results in the expansion of borrowing of tradeable allowances under Federal law, and if the Board determines that the average daily closing price of tradeable allowances for the 90-day period beginning on the date on which borrowing is so expanded exceeds the upper limit of the range of the estimate provided under section 154, the Board shall instruct the Administrator to—</text>
<clause id="H7D5E1DF2969447FCB8FEEB285C626DE"><enum>(i)</enum><text>increase the total quantity of tradeable allowances provided to all covered entities in accordance with this paragraph; and</text></clause>
<clause id="H83E83495965D467B8CF81B5B62BBBE27"><enum>(ii)</enum><text>reduce the quantity of tradeable allowances to be provided for a subsequent year or years by the same amount.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HB055702CBA744F38B9D9C6FAF04033D5"><enum>(B)</enum><header>Requirements</header><text>An increase in the quantity of tradeable allowances under subparagraph (A) shall—</text>
<clause id="H27256EC6972E4AA0BE5FAD40C2D8A1DD"><enum>(i)</enum><text>apply to all covered entities;</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HB9829F9770F54CCD93C700AA5EF01C29"><enum>(ii)</enum><text>be allocated in accordance with the applicable formulas and procedures established under this Act;</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H74883BC8546E4043B2323938C2EDE951"><enum>(iii)</enum><text>be equal to not more than 5 percent of the total quantity of tradeable allowances otherwise available for the applicable allocation year under this Act;</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H8CF1C86D609843979257F03E4D48E64B"><enum>(iv)</enum><text>be provided only during the 6-month period immediately following a determination of the Board under subparagraph (A); and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H09C6DF8516164F5FAD5392ACE4BECF01"><enum>(v)</enum><text>specify the subsequent year or years in which the quantity of tradeable allowances will be reduced in accordance with subparagraph (A), which shall be not more than 15 years after the year in which the increase in the quantity of tradeable allowances is provided.</text></clause> </subparagraph></paragraph></subsection>
<subsection id="H7B59F1665CFB41928666542D30B31BBA"><enum>(b)</enum><header>Limitations</header><text>Nothing in this section gives the Board the authority—</text>
<paragraph id="H13A99034E4F64B21927FE501C768CD4"><enum>(1)</enum><text>to consider or prescribe entity-level petitions for relief from the costs of a tradeable allowance allocation or trading program established under this Act or other Federal law;</text></paragraph>
<paragraph id="H4006BA5AA4404D88B71C43A77833E736"><enum>(2)</enum><text>to carry out any investigative or punitive process under the jurisdiction of any Federal or State court;</text></paragraph>
<paragraph id="H65807D39A8794D55B6B97936E6485643"><enum>(3)</enum><text>to interfere with, modify, or adjust any tradeable allowance allocation scheme established under this Act or other Federal law; or</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H51907C8E8F004C33B085D054C26786AE"><enum>(4)</enum><text>to modify the goals of any limit on greenhouse gas emissions.</text></paragraph></subsection></section>
<section id="HDA2B741BBD724D269C00F8688CF14CF2"><enum>154.</enum><header>Estimate of costs to economy of limiting greenhouse gas emissions</header>
<subsection id="HAF90EE0797F44897B6ED9C9B88482C17"><enum>(a)</enum><header>Initial report</header><text display-inline="yes-display-inline">The Administrator shall enter into an arrangement with the National Academy of Sciences for a report, to be submitted to Congress not later than December 31, 2011. Such report shall, using economic and scientific analyses, describe the projected price range at which tradeable allowances are expected to trade during the period with respect to which this Act applies.</text></subsection>
<subsection id="H873DC3A3DE9744A0B72BB7A0FA0052E2"><enum>(b)</enum><header>Reassessments</header><text display-inline="yes-display-inline">The Board may instruct the Administrator to arrange for a reassessment and new report under subsection (a) as necessary.</text></subsection></section></part></subtitle>
<subtitle id="HD17224EAB3DA4FBF8E47B015183E74D7"><enum>D</enum><header>Allocation of tradeable allowances</header>
<section id="HE4D03DB414504DE5B3D5AE5DF6F9D2E3"><enum>161.</enum><header>Determination of tradeable allowance allocations</header>
<subsection id="H59005C046D02431CBF0078006EF177AC"><enum>(a)</enum><header>In general</header><text>The Administrator shall annually determine—</text>
<paragraph id="H16AB43D45EF04526B92B26E6D03C0172"><enum>(1)</enum><text>the amount of tradeable allowances to be allocated to each covered sector; and</text></paragraph>
<paragraph id="H963E8DFA73374D5E91D6C670E1CA8EE5"><enum>(2)</enum><text>the amount of tradeable allowances to be allocated to the Climate Change Credit Corporation established under section 201.</text></paragraph></subsection>
<subsection id="H1F88CEB9B40B4D08BB36BC4477511CA4"><enum>(b)</enum><header>Allocation factors</header><text>In making the determination required by subsection (a), the Administrator shall consider—</text>
<paragraph id="H60B91891F5684C43BC70063DA6F2E11D"><enum>(1)</enum><text>the distributive effect of the allocations on household income and net worth of individuals;</text></paragraph>
<paragraph id="H04BF8132CDD44158AB85EA4C92F24FD6"><enum>(2)</enum><text>the impact of the allocations on corporate income, taxes, and asset value;</text></paragraph>
<paragraph id="HF1AF3CBB81F340B99F005D3E47D68F4D"><enum>(3)</enum><text>the impact of the allocations on income levels of consumers and on their energy consumption;</text></paragraph>
<paragraph id="H7D79E7CD0EF043C7B94D6EB7B09F8F4"><enum>(4)</enum><text>the effects of the allocations in terms of economic efficiency;</text></paragraph>
<paragraph id="H7C0F45F0EB324138BC639C0036DCFE26"><enum>(5)</enum><text>the ability of covered entities to pass through compliance costs to their customers;</text></paragraph>
<paragraph commented="no" id="HE74D6B1917B146D783E7115C21B18619"><enum>(6)</enum><text>the degree to which the amount of allocations to the covered sectors should decrease over time;</text></paragraph>
<paragraph id="HAA5255E10437404E94A531E3E03A5F9"><enum>(7)</enum><text>the need to maintain the international competitiveness of United States manufacturing and avoid the additional loss of United States manufacturing jobs; and</text></paragraph>
<paragraph id="H074A3F07E7BD48FB9FD6D56BB124CB3B"><enum>(8)</enum><text>the necessary funding levels for the initiatives and programs described in section 202.</text></paragraph></subsection>
<subsection id="H52B266883DEE4A25BC69BE6E56CF964B"><enum>(c)</enum><header>Allocation recommendations and implementation</header><text>Not later than 24 months after the date of enactment of this Act, and annually thereafter, the Administrator shall submit the determinations under subsection (a) to the Committee on Commerce, Science, and Transportation and the Committee on Environment and Public Works of the Senate, and to the Committee on Science and Technology and the Committee on Energy and Commerce of the House of Representatives. The Administrator’s determinations under subsection (a)(1), and the allocations and provision of tradeable allowances pursuant to that determination, are deemed to be a major rule (as defined in <external-xref legal-doc="usc" parsable-cite="usc/5/804">section 804(2)</external-xref> of title 5, United States Code), and subject to the provisions of chapter 8 of that title.</text></subsection></section>
<section id="H70F8CDE9F3A44A9BAE89221DD1083200"><enum>162.</enum><header>Provision of tradeable allowances</header>
<subsection id="H13BA6E9835394A3184E785A6F523481"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator shall, by regulation, establish a process for providing tradeable allowances without cost to covered entities described in subparagraphs (A) and (B)(i) and (ii) of section 3(5) that will—</text>
<paragraph id="H5FA693166C004A31BAF9A699F602586"><enum>(1)</enum><text>encourage investments that increase the efficiency of the processes that produce greenhouse gas emissions;</text></paragraph>
<paragraph id="HB3FCA100D3A14A168CA25B7C4927A14F"><enum>(2)</enum><text>minimize the costs to the Government of providing the tradeable allowances;</text></paragraph>
<paragraph commented="no" id="H1BB62885E9DE45208C00834C69C94960"><enum>(3)</enum><text>give credit to covered entities for emissions reductions made before 2012 and registered with the database; and</text></paragraph>
<paragraph id="HD7AD291839684EACA36F97E435ACBC63"><enum>(4)</enum><text>provide sufficient tradeable allowances for new entrants into the sector.</text></paragraph></subsection>
<subsection id="H84610C1081044491827D36267D9FD12D"><enum>(b)</enum><header>Allocation to covered entities in States adopting mandatory greenhouse gas emissions reduction programs</header><text display-inline="yes-display-inline">For a covered entity operating in any State that has adopted a legally binding and enforceable program to achieve and maintain greenhouse gas emission reductions that are consistent with, or more stringent than, reductions mandated by this Act, and which requirements are effective prior to 2012, the Administrator shall consider such binding State actions in making the final determination of allocation to such covered entities.</text></subsection></section>
<section id="HEF31782D38204658B2ECCFD0996D662B"><enum>163.</enum><header>Ensuring target adequacy</header>
<subsection id="H0269560C33D14F1482AD00A0B5979857"><enum>(a)</enum><header>In general</header><text>Beginning 2 years after the date of enactment of this Act, the Under Secretary of Commerce for Oceans and Atmosphere shall review the amount of allowances established under section 124 no less frequently than biennially—</text>
<paragraph id="H16FA6E1660AC4F07A9914D75334D0072"><enum>(1)</enum><text>to re-evaluate the levels established by that section, after taking into account the best available science and the most currently available data; and</text></paragraph>
<paragraph id="H88ADB2CA046A42A3B5C186ED72B1552"><enum>(2)</enum><text>to re-evaluate the environmental and public health impacts of specific concentration levels of greenhouse gases,</text></paragraph><continuation-text continuation-text-level="subsection">to determine whether the amount of those allowances continues to be consistent with the objective of the United Nations’ Framework Convention on Climate Change of stabilizing levels of greenhouse gas emissions at a level that will prevent dangerous anthropogenic interference with the climate system.</continuation-text></subsection>
<subsection id="H46144327DC9A431EB6D7658BAE2D25EC"><enum>(b)</enum><header>Review of 2012 levels</header><text>The Under Secretary of Commerce for Oceans and Atmosphere shall specifically review in 2010 the level established under section 124(a)(1), and transmit a report on his reviews, together with any recommendations, including legislative recommendations, for modification of the levels, to the Committee on Commerce, Science, and Transportation and the Committee on Environment and Public Works of the Senate, and to the Committee on Science and Technology and the Committee on Energy and Commerce of the House of Representatives.</text></subsection></section>
<section id="HF2F61BC786C44E64BD5185EEF2B2F65F"><enum>164.</enum><header>Initial allocations for early participation and accelerated participation</header><text display-inline="no-display-inline">Before providing any tradeable allowances under section 162, the Administrator shall allocate—</text>
<paragraph id="H422955F2CEC0403DA20082EAA9D78FE3"><enum>(1)</enum><text>to any covered entity an amount of tradeable allowances equivalent to the amount of greenhouse gas emission reductions registered by that covered entity in the database if—</text>
<subparagraph id="HC2196088C62F49DEBF9D1131091CD1ED"><enum>(A)</enum><text>the covered entity has requested to use the registered reduction in the year of allocation;</text></subparagraph>
<subparagraph id="HD82565BBDE9A4C919FC975843D00B925"><enum>(B)</enum><text>the reduction was registered prior to 2012; and</text></subparagraph>
<subparagraph id="H77D80ED564324F469767E0CC49AB37D5"><enum>(C)</enum><text>the Administrator retires the unique serial number assigned to the reduction under section 101(c)(3); and</text></subparagraph></paragraph>
<paragraph id="H2B38141854064D4D830079ED7DC74678"><enum>(2)</enum><text>to any covered entity that has entered into an accelerated participation agreement under section 165, such tradeable allowances as the Administrator has determined to be appropriate under that section.</text></paragraph></section>
<section id="H9626F329EA594F95BD52E1E6B8B9F1B"><enum>165.</enum><header>Bonus for accelerated participation</header>
<subsection id="H19C546728E284CC9B1B3C507D4B37F2D"><enum>(a)</enum><header>In general</header><text>If a covered entity executes an agreement with the Administrator under which it agrees to reduce its level of greenhouse gas emissions to a level no greater than the level of its greenhouse gas emissions for calendar year 1990 by the year 2012, then, for the 6-year period beginning with calendar year 2012, the Administrator shall—</text>
<paragraph id="HE8A080AEE341461A89D288B751E4B8EC"><enum>(1)</enum><text>provide additional tradeable allowances to that entity when allocating allowances under section 164 in order to recognize the additional emission reductions that will be required of the covered entity;</text></paragraph>
<paragraph id="HFC412DAC5F8246ED8FC03F1F9B335090"><enum>(2)</enum><text>allow that entity to satisfy 20 percent (in addition to the amount authorized under section 144(a)) of its requirements under section 121 by any combination of—</text>
<subparagraph id="HAA188998A3DB423380540576F2954F00"><enum>(A)</enum><text>submitting tradeable allowances from another nation’s market in greenhouse gas emissions under the conditions described in section 144(a)(1);</text></subparagraph>
<subparagraph id="HBA1F3606A4274C108BF8708192417B3B"><enum>(B)</enum><text>submitting a registered net increase in sequestration, as registered in the database, adjusted, if necessary, to comply with the accounting standards and methods described in section 144(c); and</text></subparagraph>
<subparagraph id="H8EFF310C04C6406CB4CE6BD29B2112D1"><enum>(C)</enum><text>submitting a greenhouse gas emission reduction (other than a registered net increase in sequestration) that was registered in the database by a person that is not a covered entity.</text></subparagraph></paragraph></subsection>
<subsection commented="no" id="H118E6D28317645F6A866D5000026B1E7"><enum>(b)</enum><header>Termination</header><text>An entity that executes an agreement described in subsection (a) may terminate the agreement at any time.</text></subsection>
<subsection id="HA11C674A6BE4474A9032BDF780C0C8C0"><enum>(c)</enum><header>Failure To meet commitment</header><text>If an entity that executes an agreement described in subsection (a) fails to achieve the level of emissions to which it committed by calendar year 2012, including through termination under subsection (b)—</text>
<paragraph id="H014B76CDFA9046BDA2E2813479BCD230"><enum>(1)</enum><text>its requirements under section 121 shall be increased by the amount of any tradeable allowances provided to it under subsection (a)(1) of this section; and</text></paragraph>
<paragraph id="H7C54EB7E795C4276A46161EC80AAB001"><enum>(2)</enum><text>any tradeable allowances submitted thereafter shall be counted first against the increase in those requirements.</text></paragraph></subsection></section></subtitle>
<enum>II</enum><header>Climate Change Credit Corporation</header>
<section id="HF36E60077E1D4A069B521C54674651F7"><enum>201.</enum><header>Establishment</header>
<subsection id="H5E951927F9B846BEA6A6BDE3EB43D3A2"><enum>(a)</enum><header>In general</header><text>The Climate Change Credit Corporation (in this title referred to as the <quote>Corporation</quote>) is established as a nonprofit corporation without stock. The Corporation shall not be considered to be an agency or establishment of the United States Government.</text></subsection>
<subsection id="HE82DFA51A622426EB7AAA36209E25608"><enum>(b)</enum><header>Applicable laws</header><text>The Corporation shall be subject to the provisions of this Act and, to the extent consistent with this Act, to the District of Columbia Business Corporation Act.</text></subsection>
<subsection id="HEC14F05172AD491EBBC3C600FE2D4785"><enum>(c)</enum><header>Board of directors</header><text>The Corporation shall have a board of directors of 5 individuals who are citizens of the United States, of whom 1 shall be elected annually by the board to serve as chairman. No more than 3 members of the board serving at any time may be affiliated with the same political party. The members of the board shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall serve for terms of 5 years.</text></subsection></section>
<section id="HED4891F54DAB4D518BF1124C7DF226C5"><enum>202.</enum><header>Purposes and functions</header>
<subsection id="HD656E64A72AE43CF9040247BF87B632B"><enum>(a)</enum><header>Trading</header><text>The Corporation—</text>
<paragraph id="H77D6945D7B8D4F79BCC855E65CB4B300"><enum>(1)</enum><text>shall receive and manage tradeable allowances allocated to it under section 161(a)(2);</text></paragraph>
<paragraph id="H8E98295005F54EAC8C06000221436C5D"><enum>(2)</enum><text>shall buy and sell tradeable allowances, whether allocated to it under that section or obtained by purchase, trade, or donation from other entities; and</text></paragraph>
<paragraph id="H3618E38BB5EC48CFAA57E4F00038AF92"><enum>(3)</enum><text>may not retire tradeable allowances unused.</text></paragraph></subsection>
<subsection id="H6A1EF4C5EDA84CC291D04F22BCC527DF"><enum>(b)</enum><header>Use of tradeable allowances and proceeds</header>
<paragraph id="HF9CCF129D8524718BA4370E13CB6A277"><enum>(1)</enum><header>In general</header><text>The Corporation shall use the tradeable allowances, and proceeds derived from its trading activities in tradeable allowances, to reduce costs borne by consumers as a result of the greenhouse gas reduction requirements of this Act. The reductions—</text>
<subparagraph id="HD4281F3CE40F46AE0059DC187FC98861"><enum>(A)</enum><text display-inline="yes-display-inline">may be obtained by buy-down, subsidy (including through the Low-Income Home Energy Assistance Act of 1981, part A of title IV of the Energy Conservation and Production Act, or the provision of financial assistance to promote the availability of reasonably-priced electricity in off-grid rural regions in which electricity prices exceed 150 percent of the national average), negotiation of discounts, consumer rebates, or otherwise;</text></subparagraph>
<subparagraph id="HB0DC845C565E4D92972EF4920135B455"><enum>(B)</enum><text>shall be, as nearly as possible, equitably distributed across all regions of the United States; and</text></subparagraph>
<subparagraph id="H25061097BCEC4ECD8FBCB2FD00DE84D7"><enum>(C)</enum><text>may include arrangements for preferential treatment to consumers who can least afford any such increased costs.</text></subparagraph></paragraph>
<paragraph id="H3D1C7CFB4B9E484AA726E137C852673C"><enum>(2)</enum><header>Transition assistance to dislocated workers and communities</header><text>The Corporation shall allocate a percentage of the proceeds derived from its trading activities in tradeable allowances to provide transition assistance to dislocated workers and communities. Transition assistance may take the form of—</text>
<subparagraph id="HCC2919E42DA3441E00ADFB00B5804F26"><enum>(A)</enum><text>grants to employers, employer associations, and representatives of employees—</text>
<clause id="H589B994228D14C00A8DD55007115299D"><enum>(i)</enum><text>to provide training, adjustment assistance, and employment services to dislocated workers; and</text></clause>
<clause id="HBCDA59FE2201408BB3D92C6754B3C6A0"><enum>(ii)</enum><text>to make income-maintenance and needs-related payments to dislocated workers; and</text></clause></subparagraph>
<subparagraph id="H85DC5F28748642919900A37AA2BD67F"><enum>(B)</enum><text>grants to State and local governments to assist communities in attracting new employers or providing essential local government services.</text></subparagraph></paragraph>
<paragraph id="H0A12C251B5904BC7B51C8F00C79090EB"><enum>(3)</enum><header>Phase-out of transition assistance</header><text>The percentage allocated by the Corporation under paragraph (2)—</text>
<subparagraph id="HDDF0525A710844D58CF5BBE0AE45A868"><enum>(A)</enum><text>shall be 20 percent for 2012; and</text></subparagraph>
<subparagraph id="HE5B29F17A3D4427AA866517973774168"><enum>(B)</enum><text>shall be reduced by 2 percentage points each of the next 10 years thereafter.</text></subparagraph></paragraph>
<paragraph id="H415FA041558A4806BD6953F8E363F0EF"><enum>(4)</enum><header>Technology deployment programs</header><text>The Corporation shall establish and carry out a program, through direct grants, revolving loan programs, or other financial measures, to provide support for the deployment of technology to assist in compliance with this Act by distributing the proceeds from no less than 10 percent of the total allowances allocated to it for each year. The support shall include the following:</text>
<subparagraph id="HFF76029FED0C47BFB1903E022733FB85"><enum>(A)</enum><header>Coal gasification combined-cycle and geological carbon storage program</header><text>The Corporation shall establish and carry out a program, through direct grants, to provide incentives for the repowering of existing facilities or construction of new facilities producing electricity or other products from coal gasification combined-cycle plants that capture and geologically store at least 90 percent of the carbon dioxide produced at the facility in accordance with requirements established by the Administrator to ensure the permanence of the storage and that such storage will not cause or contribute to significant adverse effects on public health or the environment. The Corporation shall ensure that no less than 20 percent of the funding under this program is distributed to rural electric cooperatives.</text></subparagraph>
<subparagraph id="H9191193B4E1E422EA509A7F3545560C7"><enum>(B)</enum><header>Agricultural programs</header><text>The Corporation shall establish and carry out a program, through direct grants, revolving loan programs, or other financial measures, to provide incentives for greenhouse gas emissions reductions or net increases in sequestration on agricultural lands. The program shall include incentives for—</text>
<clause id="H4ED6FC53727948BB91065E0308A06ECE"><enum>(i)</enum><text>production of wind energy on agricultural lands;</text></clause>
<clause id="HB719E5FC8B60427895299C7B1593E32"><enum>(ii)</enum><text>agricultural management practices that achieve verified, incremental increases in net carbon sequestration, in accordance with the requirements established by the Administrator under section 144(c); and</text></clause>
<clause id="H8F91BA39804248BB8406AE5C115BC88E"><enum>(iii)</enum><text>production of renewable fuels that, after consideration of the energy needed to produce such fuels, result in a net reduction in greenhouse gas emissions.</text></clause></subparagraph></paragraph>
<paragraph id="HACE433AC324247AA8C55006E71C5507B"><enum>(5)</enum><header>Adaptation assistance for fish and wildlife habitat</header><text>The Corporation shall fund efforts to strengthen and restore habitat that improve the ability of fish and wildlife to adapt successfully to climate change. The Corporation shall deposit the proceeds from no less than 10 percent of the total allowances allocated to it in the wildlife restoration fund subaccount known as the Wildlife Conservation and Restoration Account established under section 3 of the Pittman-Robertson Wildlife Restoration Act (<external-xref legal-doc="usc" parsable-cite="usc/16/669b">16 U.S.C. 669b</external-xref>). Amounts deposited in the subaccount under this paragraph shall be available without further appropriation for obligation and expenditure under that Act.</text></paragraph>
<paragraph id="H3608BBFDF89A43008C26C68CCA6FC21E"><enum>(6)</enum><header>Large-scale aquatic ecosystems</header><text>The Corporation shall use 25 percent of the total allowances allocated to it for each fiscal year for projects to restore—</text>
<subparagraph id="H6BA07FE7EC6946C6B55E16B6A9E76E03"><enum>(A)</enum><text>large-scale freshwater aquatic ecosystems, such as the Great Lakes and the Everglades; and</text></subparagraph>
<subparagraph id="HA845E26E9D4D4B3BA32FB793EB996E4"><enum>(B)</enum><text>large-scale estuarine ecosystems, such as Chesapeake Bay, California Bay Delta, Coastal Louisiana, Long Island Sound, and Puget Sound.</text></subparagraph></paragraph>
<paragraph id="HC2654DFF618F4DBD90C646774D2C7778"><enum>(7)</enum><header>Operations of board</header><text>The Corporation shall provide funding for the operations of the Board.</text></paragraph></subsection></section>
<enum>III</enum><header>Miscellaneous</header>
<section id="H97F30D6CB677440EB2E00700007B5B24"><enum>301.</enum><header>NOAA report on climate change effects; preparation assistance</header><text display-inline="no-display-inline">The <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1451">16 U.S.C. 1451 et seq.</external-xref>) is amended by adding at the end the following:</text>
<quoted-block act-name="Coastal Zone Management Act of 1972" id="HF9457E4C5C10417D8721A96600F771E8" style="traditional">
<section id="H33CBBA6EF1FA4021AF1394507282941E"><enum>320.</enum><header>Report on effects of climate change</header>
<subsection commented="no" display-inline="yes-display-inline" id="HB789FE47E82547A2A0FE16AAD92635D3"><enum>(a)</enum><header>In general</header><text>The Secretary shall report to the Congress not later than 2 years after the date of enactment of this section, and every 5 years thereafter, on the possible and projected impacts of climate change on—</text>
<paragraph id="HE4C9D6FF42FD4AEE888D1E7271CE1F00"><enum>(1)</enum><text>oceanic and coastal ecosystems, including marine fish and wildlife and their habitat, and the commercial and recreational fisheries and tourism industries associated with them; and</text></paragraph>
<paragraph id="HCA22ACC563E84DB081EBD33641F69CEA"><enum>(2)</enum><text>coastal communities, including private residential and commercial development and public infrastructure in the coastal zone.</text></paragraph></subsection>
<subsection id="H832AB8FBD9114099BDAA8093895B7249"><enum>(b)</enum><header>Contents</header><text>Each report under this section shall include information regarding—</text>
<paragraph id="H416B28BD4DDC4045A7AFE26B620827D0"><enum>(1)</enum><text>the impacts that may be due to climate change that have occurred as of the date of the submission of the report; and</text></paragraph>
<paragraph id="H8563131FEEA24334912CDFC54C921DB0"><enum>(2)</enum><text>the projected future impacts of climate change.</text></paragraph></subsection>
<subsection id="H75A2423AAD9642EBAC5159061546F8DA"><enum>(c)</enum><header>Impacts</header><text>The impacts reported on under subsection (b) shall include any—</text>
<paragraph id="HC3CD549CC7AA44298D04002787184302"><enum>(1)</enum><text>increases in sea level;</text></paragraph>
<paragraph id="H5E45BB10AD3243C8A9755BBD0D2EED9"><enum>(2)</enum><text>increases in storm activity and intensity;</text></paragraph>
<paragraph id="HE602DB5C1FBD4652B89B11AE87ACFF56"><enum>(3)</enum><text>increases in floods, droughts, and other extremes of weather;</text></paragraph>
<paragraph id="HA8FC7B24326C4E808D3EFC07C7CF2C27"><enum>(4)</enum><text>increases in the temperature of the air and the water on oceanic and coastal ecosystems, with a particular focus on vulnerable fisheries and ecosystems; and</text></paragraph>
<paragraph id="H848F305AB15C4A719CE0072782B0F897"><enum>(5)</enum><text>changes in the acidity of the ocean surface associated with an increase in concentration of carbon dioxide in the atmosphere.</text></paragraph></subsection></section>
<section id="H44D5ADFA395D4A4D9CF7EF4F37F47901"><enum>321.</enum><header>Climate change preparation assistance</header>
<subsection commented="no" display-inline="yes-display-inline" id="HC0C1F4D56F9A46308219A215ECD1DE82"><enum>(a)</enum><header>In general</header><text>The Secretary shall provide technical assistance to each coastal State that has an approved coastal zone management plan under this title, to assist such States in preparing persons living within their coastal zones to adapt to climate change.</text></subsection>
<subsection id="H3F865880EBDD47FBB38E2E5D93E29339"><enum>(b)</enum><header>Identification of affected areas and adaptations</header><text>In carrying out this section, the Secretary shall—</text>
<paragraph id="HED5DA147DBC04A71006F6EC500EB19C0"><enum>(1)</enum><text>identify the projected impacts of climate change to which persons located in coastal zones may need to adapt, including—</text>
<subparagraph id="H0C351F5B3A8347A597879CDFE7D628DD"><enum>(A)</enum><text>increases in sea level;</text></subparagraph>
<subparagraph id="H3193D54AA05D4740B6EBF9D6ECF23BD"><enum>(B)</enum><text>increases in storm activity and intensity; and</text></subparagraph>
<subparagraph id="H5E880E5A60A3413E84615D393503AD39"><enum>(C)</enum><text>increases in floods, droughts, and other extremes of weather;</text></subparagraph></paragraph>
<paragraph id="HB0974DBEC4664F6AB1E645BB087BE5E"><enum>(2)</enum><text>identify the specific coastal areas of the United States, and the public and private development in coastal communities and the natural resources of the coastal zone, that are vulnerable to the impacts identified under paragraph (1);</text></paragraph>
<paragraph id="H4816E50B7BAF44A9A3CF20A9F7E338A4"><enum>(3)</enum><text>identify the various adaptation measures that may be used to protect the areas and resources identified under paragraph (2) from the impacts identified under paragraph (1); and</text></paragraph>
<paragraph id="H5AB99903EB0F4DFB8FC6B943FB130196"><enum>(4)</enum><text>estimate the costs of the adaptation measures identified under paragraph (3).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H814649BD31864F61BC2E0555DCC0000"><enum>302.</enum><header>Adaptation technologies</header>
<subsection id="H6DEE3735CD41466DA2DB47A137FF0041"><enum>(a)</enum><header>In General</header><text>The Director of the Office of Science and Technology Policy shall establish a program on adaptation technologies as part of the Climate Technology Challenge Program. The Director shall perform an assessment of the climate change technological needs of various regions of the country. This assessment shall be provided to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science and Technology of the House of Representatives within 6 months after the date of enactment of this Act.</text></subsection>
<subsection id="H211AD9942B2A4508B8C71713D91D736"><enum>(b)</enum><header>Regional Estimates</header><text>The Director of the Office of Science and Technology Policy, in consultation with the Secretaries of Transportation, Homeland Security, Agriculture, Housing and Urban Development, Health and Human Services, Defense, Interior, Energy, and Commerce, the Administrator of the Environmental Protection Agency, the Director of United States Geological Survey, and other such Federal offices as the Director considers necessary, along with relevant State agencies, shall perform 6 regional infrastructure cost assessments covering the United States, and a national cost assessment, to provide estimates of the range of costs that should be anticipated for adaptation to the impacts of climate change. The Director shall develop those estimates for low, medium, and high probabilities of climate change and its potential impacts. The assessments shall be provided to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science and Technology of the House of Representatives within 1 year after the date of enactment of this Act.</text></subsection>
<subsection id="H4EA971D4B5CE4D20ABCF00A0BAFD9DE6"><enum>(c)</enum><header>Adaptation Plan</header>
<paragraph id="H262FA58D6D2E4AE092FEE4C04F040F4"><enum>(1)</enum><header>In general</header><text>Within 6 months after the date of enactment of this Act, the Secretary of Commerce shall submit a climate change adaptation plan for the United States to the Congress. The adaptation plan shall be based upon assessments performed by the United Nations Intergovernmental Panel on Climate Change, those as required by the 1990 Global Change Research Act, and any other scientific peer-reviewed regional assessments.</text></paragraph>
<paragraph id="HBE682553FC6C4476AB1602098F84ED3D"><enum>(2)</enum><header>Required components</header><text>The adaptation plan shall include—</text>
<subparagraph id="H335F1F5C1E834F8600079BC2498F9595"><enum>(A)</enum><text>a prioritized list of vulnerable systems and regions;</text></subparagraph>
<subparagraph id="H42BF697A9DB1451E8232F5E9A532312"><enum>(B)</enum><text>coordination requirements between Federal, State, and local governments to ensure that key public infrastructure, safety, health, and land use planning and control issues are addressed;</text></subparagraph>
<subparagraph id="H6FC4FE8981E540E1AD3863B0644F6000"><enum>(C)</enum><text>coordination requirements among the Federal Government, industry, and communities;</text></subparagraph>
<subparagraph id="H459D23B0D35546A7B42F19C58C77359"><enum>(D)</enum><text>an assessment of climate change science research needs including probabilistic assessments as an aid to planning;</text></subparagraph>
<subparagraph id="H221CA53376F646FDA4262C8FCCEF1909"><enum>(E)</enum><text>an assessment of climate change technology needs; and</text></subparagraph>
<subparagraph id="H2AD88DD494FD4D46B70595D5D710A139"><enum>(F)</enum><text>regional and national costs assessments for the range of costs that should be anticipated for adapting to the impacts of climate change.</text></subparagraph></paragraph></subsection></section>
<section id="HDEFF9CAEE93B40DAB372C1C2478B7A3"><enum>303.</enum><header>Mitigating climate change’s impacts on the poor</header>
<subsection id="H659350F08D414CB3A7502BD91D45BF3B"><enum>(a)</enum><header>In General</header><text>The Secretary shall conduct research on the impact of climate change on low-income populations everywhere in the world. The research shall—</text>
<paragraph id="H1492C51BAC244EBA94B9A9FA714CAA38"><enum>(1)</enum><text>include an assessment of the adverse impact of climate change on low-income populations in the United States and on developing countries;</text></paragraph>
<paragraph id="HCBEECBB89F1F492698F3E2EE7696BACD"><enum>(2)</enum><text>identify appropriate climate change adaptation measures and programs for developing countries and low-income populations and assess the impact of those measures and programs on low-income populations;</text></paragraph>
<paragraph id="HE29F15D6D1544640AD46C41DB893FE39"><enum>(3)</enum><text>identify appropriate climate change mitigation strategies and programs for developing countries and low-income populations and assess the impact of those strategies and programs on developing countries and on low-income populations in the United States; and</text></paragraph>
<paragraph id="HD0A3D620B40148CEA100253D79D7663F"><enum>(4)</enum><text>include an estimate of the costs of developing and implementing those climate change adaptation and mitigation programs.</text></paragraph></subsection>
<subsection id="HB2F3922930444C85A1D268CD9EDB414F"><enum>(b)</enum><header>Report</header><text>Within 1 year after the date of enactment of this Act, the Secretary shall transmit a report on the research conducted under subsection (a) to the Committee on Commerce, Science, and Transportation and the Committee on Environment and Public Works of the Senate, and to the Committee on Science and Technology and the Committee on Energy and Commerce of the House of Representatives.</text></subsection>
<subsection id="H14CABD94229E4791B695A5F145D4D970"><enum>(c)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated to the Secretary $2,000,000 to carry out the research required by subsection (a).</text></subsection></section>
<section id="H9109A028E2A945D5A1B3321123808E30"><enum>304.</enum><header>Wildlife conservation</header>
<subsection display-inline="no-display-inline" id="H51606BA270A843EAA1000012747724F5"><enum>(a)</enum><header>Funding for climate change impact mitigation planning</header><text>Section 3(c) of the Pittman-Robertson Wildlife Restoration Act (<external-xref legal-doc="usc" parsable-cite="usc/16/669b">16 U.S.C. 669b(c)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block id="HBC7FAC8C51B7497AA3DE72796FA3345C" style="OLC">
<paragraph id="HA16FA7D9E12F4231A18478C89B1532ED"><enum>(4)</enum><header>Climate change impact mitigation plans</header><text>Amounts deposited in the Wildlife Conservation and Restoration Account under section 202(b)(5) of the <short-title>Climate Stewardship and Economic Security Act of 2007</short-title>—</text>
<subparagraph id="HFC7DA4E8A2A544C584C7E5F1FF2F7C8D"><enum>(A)</enum><text>may be used by States to provide relevant information, training, monitoring, and other assistance to develop climate change impact mitigation plans and integrate them into State Comprehensive Wildlife Conservation Strategies; and</text></subparagraph>
<subparagraph id="HACC2F3F71B514535954C3E304800AA7F"><enum>(B)</enum><text>shall be used by States to implement climate change impact mitigation plans integrated into Comprehensive Wildlife Conservation Strategies.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE7C06C3A2EB941DF87DE887C9260CD88"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 3(a)(2) of the Pittman-Robertson Wildlife Restoration Act (<external-xref legal-doc="usc" parsable-cite="usc/16/669b">16 U.S.C. 669b(a)(2)</external-xref>) is amended in the second sentence by inserting <quote>(in addition to amounts deposited under section 202(b)(5) of the <short-title>Climate Stewardship and Economic Security Act of 2007</short-title>)</quote> after <quote>Wildlife Conservation and Restoration Account</quote>.</text></subsection></section>