[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6186 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6186

 To direct the Administrator of the Environmental Protection Agency to 
establish a program to decrease emissions of greenhouse gases, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2008

  Mr. Markey introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
Ways and Means, Science and Technology, Natural Resources, Agriculture, 
       Foreign Affairs, Education and Labor, Transportation and 
   Infrastructure, Oversight and Government Reform, and Rules, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To direct the Administrator of the Environmental Protection Agency to 
establish a program to decrease emissions of greenhouse gases, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Investing in 
Climate Action and Protection Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
               TITLE I--CAPPING GREENHOUSE GAS EMISSIONS

Sec. 101. Amendment of Clean Air Act.
                 ``TITLE VII--GREENHOUSE GAS EMISSIONS

        ``Sec. 700. Definitions.
                    ``Subtitle A--Tracking Emissions

        ``Sec. 701. Purpose.
        ``Sec. 702. Definitions.
        ``Sec. 703. Determination of carbon dioxide equivalent value of 
                            greenhouse gases.
        ``Sec. 704. Designation of greenhouse gases.
        ``Sec. 705. Reporting requirements.
        ``Sec. 706. Data quality and verification.
        ``Sec. 707. Federal greenhouse gas registry.
                    ``Subtitle B--Reducing Emissions

        ``Sec. 711. Emission allowance account.
        ``Sec. 712. Compliance obligation.
        ``Sec. 713. Penalty for noncompliance.
                ``Subtitle C--Distribution of Allowances

        ``Sec. 721. Auctions.
        ``Sec. 722. Auction proceeds.
        ``Sec. 723. Transitional assistance to manufacturers of trade-
                            exposed primary goods.
             ``Subtitle D--Trading, Banking, and Borrowing

        ``Sec. 731. Trading.
        ``Sec. 732. Banking.
        ``Sec. 733. Borrowing.
                     ``Subtitle E--Domestic Offsets

        ``Sec. 741. Establishment of domestic offset program.
        ``Sec. 742. Eligible project types.
        ``Sec. 743. Protocols and accounting methods.
        ``Sec. 744. Project initiation.
        ``Sec. 745. Offset verification and issuance of credits.
        ``Sec. 746. Audits.
        ``Sec. 747. Timing and the provision of offset credits.
        ``Sec. 748. Environmental considerations.
        ``Sec. 749. Ownership and transfer of offset credits.
   ``Subtitle F--International Emission Allowances and Offset Credits

        ``Sec. 751. International emission allowances.
        ``Sec. 752. International offset credits.
        ``Sec. 753. Retirement.
     ``Subtitle G--Global Effort To Reduce Greenhouse Gas Emissions

        ``Sec. 761. Definitions.
        ``Sec. 762. Purposes.
        ``Sec. 763. International negotiations.
        ``Sec. 764. Determination of comparable action.
        ``Sec. 765. International reserve allowance program.
        ``Sec. 766. Adjustment of international reserve allowance 
                            requirements.
``Subtitle H--Standards for Noncovered Facilities and Coal-Fired Power 
                                 Plants

        ``Sec. 771. Performance standards for certain sources that are 
                            not covered entities.
        ``Sec. 772. Performance standards for new coal-fired power 
                            plants.
Sec. 102. Conforming amendments.
Sec. 103. Complementary policies for hydrofluorocarbons.
Sec. 104. Waiver of preemption for California greenhouse gas emission 
                            standards for vehicles.
Sec. 105. Low-carbon fuel standard.
                   TITLE II--CARBON MARKET OVERSIGHT

Sec. 201. Amendment of Federal Power Act.
                ``Part IV--Regulation of Carbon Markets

        ``Sec. 401. Purposes.
        ``Sec. 402. Definitions.
        ``Sec. 403. Office of Carbon Market Oversight; jurisdiction.
        ``Sec. 404. Regulation of carbon trading.
        ``Sec. 405. Registration of carbon trading facilities, brokers, 
                            dealers, and carbon clearing organizations.
        ``Sec. 406. Administrative enforcement.
        ``Sec. 407. Civil judicial enforcement.
        ``Sec. 408. Criminal enforcement.
        ``Sec. 409. Market reports.
        ``Sec. 410. Application of other provisions.
          TITLE III--INVESTING IN AMERICA'S LOW-CARBON FUTURE

           Subtitle A--Climate Trust Tax Credits and Rebates

Sec. 301. Purpose.
Sec. 302. Climate Trust tax credit for working families and senior 
                            citizens.
Sec. 303. Climate Trust rebates for low-income households.
                 Subtitle B--Low-Carbon Technology Fund

Sec. 311. Purposes.
Sec. 312. Funding.
Sec. 313. Renewable energy and energy efficiency research, development, 
                            and demonstration.
Sec. 314. Renewable energy deployment incentives.
Sec. 315. Carbon capture and sequestration demonstration and 
                            deployment.
Sec. 316. Fiscal years 2021 through 2050.
              Subtitle C--National Energy Efficiency Fund

Sec. 321. Purposes.
Sec. 322. Definitions.
Sec. 323. Funding.
Sec. 324. Electricity consumers.
Sec. 325. Natural gas consumers.
Sec. 326. Building efficiency.
Sec. 327. Smart growth and mass transit.
Sec. 328. Weatherization Assistance Program and Low-Income Home Energy 
                            Assistance Program.
Sec. 329. Recycling.
            Subtitle D--Agriculture and Forestry Carbon Fund

Sec. 331. Purpose.
Sec. 332. Definitions.
Sec. 333. Funding.
Sec. 334. Agricultural and forestry greenhouse gas management research.
Sec. 335. Incentive program.
Sec. 336. Outreach initiative on revenue enhancement for agricultural 
                            producers and foresters.
    Subtitle E--Green Jobs Training and Worker Transition Assistance

                     Chapter 1--General Provisions

Sec. 341. Purposes.
Sec. 342. Definitions.
Sec. 343. Funding.
Sec. 344. Establishment of worker transition assistance program.
Sec. 345. Petition and certification of eligibility.
Sec. 346. Group eligibility requirements.
Sec. 347. Benefit information for workers.
                      Chapter 2--Program Benefits

Sec. 351. Income support assistance.
Sec. 352. Training and other adjustment assistance.
Sec. 353. Reemployment adjustment assistance program.
Sec. 354. Health coverage tax credits.
Sec. 355. Administration.
         Subtitle F--National Climate Change Adaptation Program

Sec. 361. Findings and purpose.
Sec. 362. Definitions.
Sec. 363. Funding.
Sec. 364. National Climate Change Adaptation Council.
Sec. 365. National Climate Change Adaptation Program.
Sec. 366. National Climate Change Vulnerability Assessments.
Sec. 367. Climate change adaptation services.
Sec. 368. Federal agency climate change adaptation plans.
Sec. 369. Federal funding for State, local, and tribal adaptation 
                            projects.
             Subtitle G--Natural Resource Conservation Fund

Sec. 371. Purposes.
Sec. 372. Definitions.
Sec. 373. Use of amounts in Natural Resource Conservation Fund.
    Subtitle H--Climate Change Education and Centers for Excellence

Sec. 381. Purposes.
Sec. 382. Funding.
Sec. 383. National Science Foundation climate change education 
                            programs.
Sec. 384. Environmental Protection Agency climate change education 
                            program.
Sec. 385. Climate change centers for excellence.
                  TITLE IV--ENCOURAGING GLOBAL ACTION

            Subtitle A--International Forest Protection Fund

Sec. 401. Findings and purposes.
Sec. 402. Definitions.
Sec. 403. Funding.
Sec. 404. Eligibility requirements and standards for forest carbon 
                            activities.
Sec. 405. Assistance for forest carbon activities.
Sec. 406. Capacity-building grants.
Sec. 407. Annual reports.
            Subtitle B--International Clean Technology Fund

Sec. 411. Purposes.
Sec. 412. Definitions.
Sec. 413. Interagency group.
Sec. 414. Determination of eligible countries.
Sec. 415. Funding.
Sec. 416. Annual reports.
      Subtitle C--International Climate Change Adaptation Program

Sec. 421. Findings and purposes.
Sec. 422. Definitions.
Sec. 423. Establishment.
Sec. 424. Functions of program.
Sec. 425. Funding.
Sec. 426. Monitoring and evaluation of program.
TITLE V--LEGAL FRAMEWORK FOR GEOLOGICAL SEQUESTRATION OF CARBON DIOXIDE

Sec. 501. National regulations.
Sec. 502. Liabilities for closed geological sequestration sites.
                TITLE VI--BUILDING EFFICIENCY STANDARDS

Sec. 601. Updating State building energy efficiency codes.
Sec. 602. Conforming amendment.
                 TITLE VII--REVIEWS AND RECOMMENDATIONS

Sec. 701. National Academy of Sciences review and recommendations.
Sec. 702. Government Accountability Office review and recommendations.
Sec. 703. Presidential recommendations.
Sec. 704. Expedited congressional action on certain Presidential 
                            recommendations.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) unchecked global warming poses a significant threat 
        to--
                    (A) the national security and economy of the United 
                States;
                    (B) public health and welfare in the United States;
                    (C) the well-being of other countries; and
                    (D) the global environment;
            (2) according to the Fourth Assessment Report of the 
        Intergovernmental Panel on Climate Change, global warming is 
        unequivocal and attributable to human activities, and evidence 
        from all continents and most oceans shows that impacts from 
        climate change are already occurring;
            (3) under the United Nations Framework Convention on 
        Climate Change, done at New York on May 9, 1992, the United 
        States is committed to stabilizing greenhouse gas 
        concentrations in the atmosphere at a level that will prevent 
        dangerous anthropogenic interference with with climate system;
            (4) according to the Fourth Assessment Report of the 
        Intergovernmental Panel on Climate Change, stabilizing 
        greenhouse gas concentrations in the atmosphere at a level that 
        will prevent dangerous interference with the climate system, 
        including preventing global mean surface temperature from 
        increasing to more than 3.6 degrees Fahrenheit (2 degrees 
        Celsius) above preindustrial levels, will require a global 
        effort to reduce anthropogenic greenhouse gas emissions 
        worldwide by 50 to 85 percent below 2000 levels by 2050;
            (5) the costs of policies to achieve such levels of 
        reduction are 5 to 20 times lower than the costs of unchecked 
        global warming, according to the Stern Review of the Economics 
        of Climate Change;
            (6) prompt, decisive action is critical, since global 
        warming pollutants can persist in the atmosphere for more than 
        a century;
            (7) the ingenuity of the people of the United States will 
        allow the United States to become a leader in curbing global 
        warming;
            (8) it is possible and desirable to cap greenhouse gas 
        emissions, from sources that together account for the majority 
        of those emissions in the United States, at the 2005 level in 
        2012, and to lower the cap each year between 2012 and 2050, on 
        the condition that the system includes--
                    (A) robust programs to assist American workers and 
                middle- and low-income consumers with the transition to 
                a low-carbon economy;
                    (B) significant investment in energy efficiency 
                policies and research, development, demonstration, and 
                deployment of zero- and low-carbon energy technologies;
                    (C) cost containment measures;
                    (D) measures to avoid windfall profits to 
                polluters;
                    (E) measures to promote a strong global effort to 
                combat climate change, including measures to encourage 
                major developing countries to reduce greenhouse gas 
                emissions;
                    (F) programs to assist communities in the United 
                States and in the developing world to adapt to any 
                impacts of unavoidable climate change; and
                    (G) periodic review of requirements and programs;
            (9) Congress may need to update the emissions caps in order 
        to account for continuing scientific data and steps taken, or 
        not taken, by foreign countries;
            (10) accurate emission data and timely compliance with the 
        requirements of the greenhouse gas emission reduction and 
        trading program established under this Act are needed to ensure 
        that reductions are achieved in a fair and efficient manner;
            (11) Federal oversight of the markets for tradable 
        allowances and credits subject to the program, and for 
        derivatives thereof, is necessary to ensure transparency, 
        fairness, and stability in such markets; and
            (12) further policies external to a cap-and-trade program 
        may be required, including with respect to--
                    (A) the transportation sector, where reducing 
                greenhouse gas emissions requires changes in vehicles, 
                fuels, and consumer behavior; and
                    (B) the built environment, where reducing direct 
                and indirect greenhouse gas emissions requires changes 
                in buildings, appliances, lighting, heating, cooling, 
                and consumer behavior.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to establish the core of a Federal program that will 
        reduce United States greenhouse gas emissions substantially 
        enough between 2008 and 2050 to avert the catastrophic impacts 
        of global climate change; and
            (2) to accomplish that purpose while preserving robust 
        growth in the United States economy, creating new jobs, and 
        avoiding the imposition of undue hardship on United States 
        citizens.

SEC. 4. DEFINITIONS.

    As used in this Act:
            (1) Additional; additionality.--The terms ``additional'' 
        and ``additionality'', except in subtitle E of title III, mean 
        the extent to which reductions in greenhouse gas emissions or 
        increases in sequestration are incremental to business-as-
        usual, measured as the difference between--
                    (A) the baseline; and
                    (B) net greenhouse gas emissions or sequestration 
                resulting from an offset project.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (3) Baseline.--The term ``baseline'' means the net 
        greenhouse gas emissions or sequestration that would have 
        occurred in the absence of an offset project.
            (4) Biological sequestration.--The term ``biological 
        sequestration'' means--
                    (A) the removal of carbon dioxide from the 
                atmosphere by biological means, such as by growing 
                plants; and
                    (B) the storage of carbon from that carbon dioxide 
                in the plants or related soils.
            (5) Carbon dioxide equivalent.--The term ``carbon dioxide 
        equivalent'' means, for each greenhouse gas, the quantity of 
        the greenhouse gas that the Administrator determines, pursuant 
        to section 703 or 704 of the Clean Air Act (as added by section 
        101 of this Act), makes the same contribution to global warming 
        as 1 metric ton of carbon dioxide.
            (6) Developing country.--The term ``developing country'' 
        means a country eligible to receive financial assistance from 
        the International Bank for Reconstruction and Development 
        (commonly known as the World Bank).
            (7) Emission allowance.--The term ``emission allowance'' 
        means an authorization, established by the Administrator under 
        section 711(a) of the Clean Air Act (as added by section 101 of 
        this Act), to emit 1 carbon dioxide equivalent of greenhouse 
        gas.
            (8) Geological sequestration.--The term ``geological 
        sequestration'' means the isolation of greenhouse gases, 
        without reversal, in geological formations, in accordance with 
        section 1421(d) of the Safe Drinking Water Act (42 U.S.C. 
        300h(d)) (as added by section 501 of this Act), as determined 
        by the Administrator.
            (9) Greenhouse gas.--The term ``greenhouse gas'' means any 
        of--
                    (A) carbon dioxide;
                    (B) methane;
                    (C) nitrous oxide;
                    (D) sulfur hexafluoride;
                    (E) a hydrofluorocarbon;
                    (F) a perfluorocarbon;
                    (G) nitrogen trifluoride; or
                    (H) any other anthropogenic gas designated by the 
                Administrator as a greenhouse gas under section 704 of 
                the Clean Air Act (as added by section 101 of this 
                Act).
            (10) Offset credit.--The term ``offset credit'' means a 
        credit issued by the Administrator under subtitle E of title 
        VII of the Clean Air Act (as added by section 101 of this Act) 
        which represents 1 carbon dioxide equivalent of--
                    (A) reduction in greenhouse gas emissions that are 
                not covered by the requirements of section 712(a) of 
                the Clean Air Act (as added by section 101 of this 
                Act); or
                    (B) increase in biological sequestration.
            (11) Offset project.--The term ``offset project'' means a 
        project that reduces greenhouse gas emissions not covered by 
        the requirements of section 712(a) of the Clean Air Act (as 
        added by section 101 of this Act) or increases biological 
        sequestration.
            (12) Reversal.--The term ``reversal'' means an intentional 
        or unintentional release to the atmosphere of a significant 
        quantity, as determined by the Administrator, of greenhouse gas 
        that was biologically or geologically sequestered in order to 
        accomplish the purposes of title VII of the Clean Air Act (as 
        added by section 101 of this Act).
            (13) Sequestered and sequestration.--The terms 
        ``sequestered'' and ``sequestration'' mean the separation, 
        isolation, or removal of greenhouse gases from the atmosphere, 
        as determined by the Administrator.

               TITLE I--CAPPING GREENHOUSE GAS EMISSIONS

SEC. 101. AMENDMENT OF CLEAN AIR ACT.

    The Clean Air Act (42 U.S.C. 7401 and following) is amended by 
adding the following new title at the end thereof:

                 ``TITLE VII--GREENHOUSE GAS EMISSIONS

``SEC. 700. DEFINITIONS.

    ``In this title:
            ``(1) Additional; additionality.--The terms `additional' 
        and `additionality' mean the extent to which reductions in 
        greenhouse gas emissions or increases in sequestration are 
        incremental to business-as-usual, measured as the difference 
        between--
                    ``(A) the baseline; and
                    ``(B) net greenhouse gas emissions or sequestration 
                resulting from an offset project.
            ``(2) Baseline.--The term `baseline' means the net 
        greenhouse gas emissions or sequestration that would have 
        occurred in the absence of an offset project.
            ``(3) Biological sequestration.--The term `biological 
        sequestration' means--
                    ``(A) the removal of carbon dioxide from the 
                atmosphere by biological means, such as by growing 
                plants; and
                    ``(B) the storage of carbon from that carbon 
                dioxide in the plants or related soils.
            ``(4) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means, for each greenhouse gas, the quantity of the 
        greenhouse gas that the Administrator determines, pursuant to 
        section 703 or 704, makes the same contribution to global 
        warming as 1 metric ton of carbon dioxide.
            ``(5) Covered entity.--The term `covered entity' means, for 
        each calendar year--
                    ``(A) a facility within the electric power sector 
                that contains a fossil fuel-fired electricity 
                generating unit or units that together emit more than 
                10,000 carbon dioxide equivalents of greenhouse gas in 
                that year;
                    ``(B) an industrial facility that emits more than 
                10,000 carbon dioxide equivalents of greenhouse gas in 
                that year;
                    ``(C) a facility that produces, or an entity that 
                imports, in that year petroleum- or coal-based liquid 
                or gaseous fuel, the combustion of which will emit more 
                than 10,000 carbon dioxide equivalents of greenhouse 
                gas;
                    ``(D) a local distribution company that in that 
                year delivers natural gas, the combustion of which will 
                emit more than 10,000 carbon dioxide equivalents of 
                greenhouse gas;
                    ``(E) a facility that produces for sale or 
                distribution, or an entity that imports, in that year 
                more than 10,000 carbon dioxide equivalents of 
                hydrofluorocarbons, perfluorocarbons, sulfur 
                hexafluoride, nitrogen trifluoride, or any other 
                fluorinated gas that is a greenhouse gas, as designated 
                by the Administrator under section 704, or any 
                combination thereof; and
                    ``(F) a site at which carbon dioxide is 
                geologically sequestered on a commercial scale.
            ``(6) Destruction credit.--The term `destruction credit' 
        means a credit issued by the Administrator under section 
        712(f).
            ``(7) Developing country.--The term `developing country' 
        means a country eligible to receive financial assistance from 
        the International Bank for Reconstruction and Development 
        (commonly known as the World Bank).
            ``(8) Emission allowance.--The term `emission allowance' 
        means an authorization, established by the Administrator under 
        section 711(a), to emit 1 carbon dioxide equivalent of 
        greenhouse gas.
            ``(9) Facility.--The term `facility' means 1 or more 
        buildings, structures, or installations of an entity on 1 or 
        more contiguous or adjacent properties located in the United 
        States.
            ``(10) Fair market value.--The term `fair market value' 
        means the average market price, during a specified time period, 
        of an emission allowance.
            ``(11) Geological sequestration; geologically 
        sequestered.--The terms `geological sequestration' and 
        `geologically sequestered' mean the isolation of greenhouse 
        gases, without reversal, in geological formations, in 
        accordance with section 1421(d) of the Safe Drinking Water Act 
        (42 U.S.C. 300h(d)) (as added by section 501 of the Investing 
        in Climate Action and Protection Act), as determined by the 
        Administrator.
            ``(12) Greenhouse gas.--The term `greenhouse gas' means any 
        of--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) sulfur hexafluoride;
                    ``(E) a hydrofluorocarbon;
                    ``(F) a perfluorocarbon;
                    ``(G) nitrogen trifluoride; or
                    ``(H) any other anthropogenic gas designated by the 
                Administrator as a greenhouse gas under section 704.
            ``(13) Industrial facility.--The term `industrial facility' 
        means--
                    ``(A) any facility in the manufacturing sector (as 
                defined in North American Industrial Classification 
                System codes 31, 32, and 33);
                    ``(B) any natural gas processing plant; and
                    ``(C) any other facility that produces petroleum- 
                or coal-based liquid or gaseous fuel.
            ``(14) International emission allowance.--The term 
        `international emission allowance' means a tradable 
        authorization to emit 1 carbon dioxide equivalent of greenhouse 
        gas that--
                    ``(A) is issued by a national or supranational 
                foreign government pursuant to a governmental program 
                that imposes a mandatory absolute tonnage limit on 
                greenhouse gas emissions from 1 or more foreign 
                countries, or from 1 or more economic sectors in such 
                country or countries, pursuant to protocols adopted in 
                accordance with the United Nations Framework Convention 
                on Climate Change, done at New York on May 9, 1992; and
                    ``(B) is not in the nature of an offset credit or 
                allowance awarded based on the achievement of an 
                increase in biological sequestration or a reduction in 
                greenhouse gas emissions that are not subject to the 
                mandatory absolute tonnage limits referred to in 
                subparagraph (A).
            ``(15) International offset credit.--The term 
        `international offset credit' means--
                    ``(A) a Certified Emission Reduction credit that 
                has been certified under the Clean Development 
                Mechanism of the Kyoto Protocol to the United Nations 
                Framework Convention on Climate Change, done at Kyoto 
                on December 11, 1997; or
                    ``(B) an equivalent tradable credit issued under a 
                successor protocol to the United Nations Framework on 
                Climate Change, done at New York on May 9, 1992, 
                provided that--
                            ``(i) the credit represents 1 carbon 
                        dioxide equivalent of increase in biological 
                        sequestration or reduction in greenhouse gas 
                        emissions not subject to a governmentally 
                        mandated absolute tonnage limit; and
                            ``(ii) such increase in biological 
                        sequestration or reduction in greenhouse gas 
                        emissions is real, verifiable, additional, 
                        permanent, and enforceable.
            ``(16) International reserve allowance.--The term 
        `international reserve allowance' means an allowance 
        (denominated in carbon dioxide equivalents) that is established 
        pursuant to section 765(a)(2).
            ``(17) Leakage.--The term `leakage' means--
                    ``(A) a significant 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, as determined by 
                the Administrator; or
                    ``(B) a significant unaccounted decrease in 
                sequestration that is caused by an offset project that 
                results in an accounted increase in sequestration, as 
                determined by the Administrator.
            ``(18) Local distribution company.--The term `local 
        distribution company' has the meaning given that term in 
        section 2(17) of the Natural Gas Policy Act of 1978 (15 U.S.C. 
        3301(17)).
            ``(19) Natural gas processing plant.--The term `natural gas 
        processing plant' means a facility in the United States that is 
        designed to separate natural gas liquids from natural gas.
            ``(20) Offset credit.--The term `offset credit' means a 
        credit issued by the Administrator under subtitle E which 
        represents 1 carbon dioxide equivalent of--
                    ``(A) reduction in greenhouse gas emissions that 
                are not covered by the requirements of section 712(a); 
                or
                    ``(B) increase in biological sequestration.
            ``(21) Offset project.--The term `offset project' means a 
        project that reduces greenhouse gas emissions not covered by 
        the requirements of section 712(a) or increases biological 
        sequestration.
            ``(22) Project developer.--The term `project developer' 
        means an individual or entity implementing an offset project.
            ``(23) Registry.--The term `Registry' means the Federal 
        greenhouse gas registry established under section 707(a).
            ``(24) Retire.--The term `retire', with respect to an 
        emission allowance, offset credit, destruction credit, 
        international emission allowance, international offset credit, 
        or international reserve allowance, means to disqualify such 
        allowance or credit for any subsequent use under this title, 
        regardless of whether the use is a sale, exchange, or 
        submission of the allowance or credit in satisfying a 
        compliance obligation.
            ``(25) Reversal.--The term `reversal' means an intentional 
        or unintentional release to the atmosphere of a significant 
        quantity, as determined by the Administrator, of greenhouse gas 
        that was biologically or geologically sequestered in order to 
        accomplish the purposes of this title.
            ``(26) Sequestered and sequestration.--The terms 
        `sequestered' and `sequestration' mean the separation, 
        isolation, or removal of greenhouse gases from the atmosphere, 
        as determined by the Administrator.

                    ``Subtitle A--Tracking Emissions

``SEC. 701. PURPOSE.

    ``The purpose of this subtitle is to establish a Federal greenhouse 
gas registry that--
            ``(1) is complete, consistent, transparent, and accurate;
            ``(2) will collect reliable and accurate data that can be 
        used by public and private entities to identify sources of 
        emissions and design efficient and effective energy security 
        initiatives and greenhouse gas emission reduction strategies; 
        and
            ``(3) will provide appropriate high-quality data to be used 
        for implementing greenhouse gas reduction policies.

``SEC. 702. DEFINITIONS.

    ``In this subtitle:
            ``(1) Affected entity.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `affected entity' means, for 
                any calendar year--
                            ``(i) a covered entity;
                            ``(ii) another entity that emits a 
                        greenhouse gas, as determined by the 
                        Administrator; or
                            ``(iii) any vehicle fleet, with emissions 
                        of more than 10,000 carbon dioxide equivalents 
                        in that year, if the Administrator determines 
                        that the inclusion of such fleet will help 
                        achieve the purposes of the Investing in 
                        Climate Action and Protection Act.
                    ``(B) Exclusions.--The term `affected entity' does 
                not include any entity that--
                            ``(i) is not a covered entity;
                            ``(ii) is owned or operated by a small 
                        business (as described in part 121 of title 13, 
                        Code of Federal Regulations (or a successor 
                        regulation)); and
                            ``(iii) emits fewer than 10,000 carbon 
                        dioxide equivalents in the year for which the 
                        definition is being applied.
            ``(2) Carbon content.--The term `carbon content' means the 
        quantity of carbon (in carbon dioxide equivalent) contained in 
        a fuel.
            ``(3) Climate registry.--The term `Climate Registry' means 
        the greenhouse gas emissions registry jointly established and 
        managed by more than 40 States and Indian tribes in 2007 to 
        collect high-quality greenhouse gas emission data from 
        facilities, corporations, and other organizations to support 
        various greenhouse gas emission reporting and reduction 
        policies for the member States and Indian tribes.
            ``(4) Feedstock fossil fuel.--The term `feedstock fossil 
        fuel' means fossil fuel used as raw material in a manufacturing 
        process.
            ``(5) Greenhouse gas emissions.--The term `greenhouse gas 
        emissions' means emissions of a greenhouse gas, including--
                    ``(A) stationary combustion source emissions 
                emitted as a result of combustion of fuels in 
                stationary equipment, such as boilers, furnaces, 
                burners, turbines, heaters, incinerators, engines, 
                flares, and other similar sources;
                    ``(B) process emissions consisting of emissions 
                from chemical or physical processes other than 
                combustion;
                    ``(C) fugitive emissions consisting of intentional 
                and unintentional emissions from equipment leaks, such 
                as joints, seals, packing, and gaskets, or from piles, 
                pits, cooling towers, and other similar sources; and
                    ``(D) biogenic emissions resulting from biological 
                processes, such as anaerobic decomposition, 
                nitrification, denitrification, and enteric 
                fermentation.
            ``(6) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(7) Source.--The term `source' means any building, 
        structure, installation, unit, point, operation, vehicle, land 
        area, or other item that emits or may emit a greenhouse gas.

``SEC. 703. DETERMINATION OF CARBON DIOXIDE EQUIVALENT VALUE OF 
              GREENHOUSE GASES.

    ``(a) Initial Determination.--Not later than 90 days after the date 
of enactment of this title, the Administrator shall--
            ``(1) determine the quantity of each greenhouse gas that 
        makes the same contribution to global warming as 1 metric ton 
        of carbon dioxide; and
            ``(2) publish such determination in the Federal Register.
    ``(b) Periodic Review.--
            ``(1) Not later than January 1, 2013, and (except as 
        provided in paragraph (3)) not less than every 5 years 
        thereafter, the Administrator shall--
                    ``(A) review and, if necessary, revise the 
                determinations made under subsection (a); and
                    ``(B) publish in the Federal Register the results 
                of that review and any revisions.
            ``(2) A revised determination published under this 
        subsection shall take effect on January 1 of the calendar year 
        immediately after the calendar year in which the determination 
        was revised.
            ``(3) The Administrator may adjust the frequency of review 
        and revision under paragraph (1) if the Administrator 
        determines that such adjustment is appropriate in order to 
        synchronize such review and revision with any similar review 
        process carried out pursuant to the United Nations Framework 
        Convention on Climate Change, done at New York on May 9, 1992, 
        or to an agreement negotiated under that convention, except 
        that in no event shall the Administrator carry out such review 
        and revision any less frequently than every 10 years.
    ``(c) Methodology.--In determining the quantity of a greenhouse gas 
that makes the same contribution to global warming as 1 metric ton of 
carbon dioxide, for purposes of this section or section 704, the 
Administrator shall take into account the guidelines established by the 
Intergovernmental Panel on Climate Change or a successor organization 
under the United Nations.

``SEC. 704. DESIGNATION OF GREENHOUSE GASES.

    ``(a) Determination on Administrator's Initiative.--The 
Administrator shall--
            ``(1) designate as a greenhouse gas, for purposes of 
        section 700(12) of this title and section 4(9) of the Investing 
        in Climate Action and Protection Act, any anthropogenic gas 1 
        metric ton of which makes the same or greater contribution to 
        global warming as 1 metric ton of carbon dioxide, as determined 
        by the Administrator; and
            ``(2) publish in the Federal Register such designation, 
        including the quantity of the gas that the Administrator 
        determines makes the same contribution to global warming as 1 
        metric ton of carbon dioxide.
    ``(b) Petitions To Designate a Greenhouse Gas.--
            ``(1) In general.--Any person may petition the 
        Administrator to designate as a greenhouse gas any 
        anthropogenic gas 1 metric ton of which makes the same or 
        greater contribution to global warming as 1 metric ton of 
        carbon dioxide.
            ``(2) Availability of data.--Any such petition shall 
        include a showing by the petitioner that there are data on the 
        gas adequate to support the petition.
            ``(3) Determination.--Within one year after receipt of a 
        petition, the Administrator shall determine the quantity of the 
        gas that makes the same contribution to global warming as 1 
        metric ton of carbon dioxide and shall take one of the 
        following actions:
                    ``(A) If the Administrator determines that 1 metric 
                ton of the gas makes a contribution to global warming 
                that is equal to or greater than that made by 1 metric 
                ton of carbon dioxide, the Administrator shall grant 
                the petition and shall take the actions described in 
                subsection (a).
                    ``(B) If the Administrator determines that 1 metric 
                ton of the gas does not make a contribution to global 
                warming that is equal to or greater than that made by 1 
                metric ton of carbon dioxide, the Administrator shall 
                deny the petition and shall publish in the Federal 
                Register a written explanation of the reasons for the 
                Administrator's decision.
            ``(4) Grounds for denial.--The Administrator may not deny a 
        petition solely on the basis of inadequate resources or time 
        for review.
            ``(5) Acquisition of information.--If the Administrator 
        determines that information on the gas is not sufficient to 
        make a determination, the Administrator shall use any authority 
        available to the Administrator, under any law administered by 
        the Administrator, to acquire such information.
    ``(c) Manufacturing Notices.--
            ``(1) Notice requirement.--No person may manufacture or 
        import into the United States a fluorinated gas after the date 
        of enactment of this title unless--
                    ``(A) such gas is already designated as a 
                greenhouse gas for purposes of section 700(12) of this 
                title and section 4(9) of the Investing in Climate 
                Action and Protection Act;
                    ``(B) the Administrator has determined that 1 
                metric ton of such gas does not make a contribution to 
                global warming that is equal to or greater than that 
                made by 1 metric ton of carbon dioxide; or
                    ``(C) such person has submitted to the 
                Administrator, at least 90 days before such manufacture 
                or import, a notice of such person's intent to 
                manufacture or import such gas, including the common or 
                trade name, the chemical identity, and the molecular 
                structure of the gas.
            ``(2) Review and action by the administrator.--Within one 
        year after receipt of a notice under paragraph (1)(C), the 
        Administrator shall determine the quantity of the relevant gas 
        that makes the same contribution to global warming as 1 metric 
        ton of carbon dioxide and shall take one of the following 
        actions:
                    ``(A) If the Administrator determines that 1 metric 
                ton of the gas makes a contribution to global warming 
                that is equal to or greater than that made by 1 metric 
                ton of carbon dioxide, the Administrator shall take the 
                actions described in subsection (a).
                    ``(B) If the Administrator determines that 1 metric 
                ton of the gas does not make a contribution to global 
                warming that is equal to or greater than that made by 1 
                metric ton of carbon dioxide, the Administrator shall 
                publish in the Federal Register a written explanation 
                of the reasons for the Administrator's decision.
    ``(d) Effect of Affirmative Determination.--A determination 
published pursuant to subsection (a), subsection (b)(3)(A), or 
subsection (c)(2)(A) shall--
            ``(1) be deemed to constitute the initial determination for 
        the greenhouse gas for purposes of section 703(a); and
            ``(2) take effect on January 1 of the calendar year 
        immediately following the calendar year in which the 
        determination is published.
    ``(e) Regulations.--Not later than one year after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to carry out this section.

``SEC. 705. REPORTING REQUIREMENTS.

    ``(a) In General.--Subject to this section, each affected entity 
shall submit to the Administrator, for inclusion in the Registry, 
periodic reports, including annual and quarterly data, that--
            ``(1) include--
                    ``(A) the quantity and type of fossil fuels, 
                including feedstock fossil fuels, that are extracted, 
                produced, refined, imported, exported, or consumed by 
                the entity; and
                    ``(B) in the case of a local distribution company, 
                the quantity of natural gas delivered by the local 
                distribution company, including a separate accounting 
                of the quantity delivered to entities that are not 
                covered entities;
            ``(2) include the quantity of greenhouse gas generated, 
        produced, imported, exported, or consumed by the entity;
            ``(3) include the quantity of greenhouse gas that has been 
        captured and sequestered by the entity;
            ``(4) include the quantity of electricity generated or 
        exported by the entity, and information on the quantity of 
        greenhouse gases emitted when the electricity was generated, as 
        determined by the methodology published by the Administrator 
        under section 706(a)(3);
            ``(5) include the quantity of electricity imported or 
        consumed by the entity, and information on the quantity of 
        greenhouse gases emitted when the imported or consumed 
        electricity was generated, as determined by the methodology 
        published by the Administrator under section 706(a)(3);
            ``(6) include the aggregate quantity of all greenhouse gas 
        emissions from sources at the entity;
            ``(7) include greenhouse gas emissions expressed in metric 
        tons of each greenhouse gas emitted and in the quantity of 
        carbon dioxide equivalents of each greenhouse gas emitted;
            ``(8) include a list and description of sources of 
        greenhouse gas emissions at the entity;
            ``(9) include information about the entity, as determined 
        by the Administrator, which shall include corporate ownership 
        of the entity;
            ``(10) quantify greenhouse gas emissions in accordance with 
        the measurement standards established under section 706;
            ``(11) include other data necessary for accurate and 
        complete accounting of greenhouse gas emissions, as determined 
        by the Administrator;
            ``(12) include an appropriate certification regarding the 
        accuracy and completeness of reported data, as determined by 
        the Administrator; and
            ``(13) are submitted electronically to the Administrator, 
        in such form and to such extent as may be required by the 
        Administrator.
    ``(b) De Minimis Exemptions.--
            ``(1) In general.--The Administrator may determine--
                    ``(A) whether certain sources at an affected entity 
                should be considered to be eligible for a de minimis 
                exemption from a requirement for reporting under 
                subsection (a); and
                    ``(B) the level of greenhouse gases emitted from a 
                source that would qualify for such an exemption.
            ``(2) Factors.--In making a determination under paragraph 
        (1), the Administrator shall consider the availability and 
        suitability of simplified techniques and tools for quantifying 
        emissions and the cost to measure those emissions relative to 
        the purposes of this title, including the goal of collecting 
        complete and consistent entity-wide data.
    ``(c) Verification of Report Required.--Before including the 
information from a report required under this section in the Registry, 
the Administrator shall verify the completeness and accuracy of the 
report using information provided under this section, obtained under 
section 114 or 307(a), or obtained under other provisions of law.
    ``(d) Timing.--
            ``(1) Calendar years 2007 through 2010.--For a base period 
        of calendar years 2007 through 2010, each affected entity shall 
        submit required annual data described in this section to the 
        Administrator not later than March 31, 2011. The Administrator 
        may waive reporting requirements for calendar years 2007 
        through 2010 for an affected entity if the Administrator 
        determines that the affected entity did not keep data or 
        records necessary to meet reporting requirements.
            ``(2) Subsequent calendar years.--For calendar year 2011 
        and each subsequent calendar year, each affected entity shall 
        submit quarterly data described in this section to the 
        Administrator not later than 60 days after the end of the 
        applicable quarter.
    ``(e) No Effect on Other Requirements.--Nothing in this subtitle 
affects any requirement in effect as of the date of enactment of this 
title relating to the reporting of--
            ``(1) fossil fuel production, refining, importation, 
        exportation, or consumption data;
            ``(2) greenhouse gas emission data; or
            ``(3) other relevant data.

``SEC. 706. DATA QUALITY AND VERIFICATION.

    ``(a) Protocols and Methods.--
            ``(1) In general.--The Administrator shall establish by 
        regulation, taking into account the work done by the Climate 
        Registry, comprehensive protocols and methods to ensure the 
        accuracy, completeness, consistency, and transparency of data 
        on greenhouse gas emissions and fossil fuel production, 
        refining, importation, exportation, and consumption submitted 
        to the Registry that include--
                    ``(A) accounting and reporting standards for fossil 
                fuel production, refining, importation, exportation, 
                and consumption;
                    ``(B) a requirement that, where technically and 
                economically feasible, submitted data are monitored 
                using monitoring systems for fuel flow or emissions, 
                such as continuous emission monitoring systems or 
                equivalent systems of similar rigor, accuracy, quality, 
                and timeliness;
                    ``(C) a requirement that, if an affected entity has 
                already been directed to monitor emissions of a 
                greenhouse gas using a continuous emission monitoring 
                system under existing law, that system be used in 
                complying with this title with respect to the 
                greenhouse gas;
                    ``(D) for cases in which the Administrator 
                determines that monitoring emissions with the 
                precision, reliability, accessibility, and timeliness 
                similar to that provided by a continuous emission 
                monitoring system is not technologically or 
                economically feasible, standardized methods for 
                calculating greenhouse gas emissions in specific 
                industries using other readily available and reliable 
                information, such as fuel consumption, materials 
                consumption, production, or other relevant activity 
                data, on the condition that those methods do not 
                underreport emissions, as compared with the continuous 
                emission monitoring system;
                    ``(E) information on the accuracy of measurement 
                and calculation methods;
                    ``(F) methods to avoid double-counting of 
                greenhouse gas emissions;
                    ``(G) protocols to prevent an affected entity from 
                avoiding the reporting requirements of this subtitle 
                (such as by reorganizing into multiple entities or 
                outsourcing activities that result in greenhouse gas 
                emissions); and
                    ``(H) protocols for verification of data submitted 
                by affected entities.
            ``(2) Best practices.--The protocols and methods developed 
        under paragraph (1) shall incorporate and conform to the best 
        practices from the most recent Federal, State, and 
        international protocols for the measurement, accounting, 
        reporting, and verification of greenhouse gas emissions to 
        ensure the accuracy, completeness, and consistency of the data.
            ``(3) Electricity generation emissions.--The Administrator 
        shall establish and publish in the Federal Register a 
        methodology for calculating the greenhouse gas emissions from 
        the generation of electricity, taking into account the location 
        of the entity and any regional variations in fuels used for 
        electric power generation.
    ``(b) Verification; Information by Reporting Entities.--Each 
affected entity shall--
            ``(1) provide information sufficient for the Administrator 
        to verify, in accordance with the protocols and methods 
        developed under subsection (a), that the fossil fuel data and 
        greenhouse gas emission data of the affected entity have been 
        completely and accurately reported; and
            ``(2) ensure the submission or retention, for the 5-year 
        period beginning on the date of provision of the information, 
        of--
                    ``(A) data sources;
                    ``(B) information on internal control activities;
                    ``(C) information on assumptions used in reporting 
                emissions and fuels;
                    ``(D) uncertainty analyses; and
                    ``(E) other relevant data and information to 
                facilitate the verification of reports submitted to the 
                Registry.
    ``(c) Waiver of Reporting Requirements.--The Administrator may 
waive reporting requirements for specific entities if the Administrator 
determines that sufficient and equally or more reliable data are 
available under other provisions of law.
    ``(d) Missing Data.--If information, satisfactory to the 
Administrator, is not provided for an affected entity, the 
Administrator shall--
            ``(1) prescribe methods to estimate emissions for the 
        entity for each period for which data are missing, reflecting 
        the highest emission levels that may reasonably have occurred 
        during the period for which data are missing; and
            ``(2) take appropriate enforcement action pursuant to this 
        section and section 113.

``SEC. 707. FEDERAL GREENHOUSE GAS REGISTRY.

    ``(a) Establishment.--The Administrator shall establish a Federal 
greenhouse gas registry.
    ``(b) Administration.--In establishing the Registry, the 
Administrator shall--
            ``(1) design and operate the Registry;
            ``(2) provide coordination and technical assistance for the 
        development of proposed protocols and methods, taking into 
        account the duties carried out by the Climate Registry, to be 
        published by the Administrator;
            ``(3)(A) develop an electronic format for reporting under 
        guidelines established under section 706(a)(1); and
            ``(B) make the electronic format available to reporting 
        entities;
            ``(4) verify and audit the data submitted by affected 
        entities;
            ``(5) establish consistent policies for calculating carbon 
        content and greenhouse gas emissions for each type of fossil 
        fuel reported under section 705;
            ``(6) calculate carbon content and greenhouse gas emissions 
        associated with the combustion of fossil fuel data reported by 
        affected entities; and
            ``(7) promptly publish on the Internet all information 
        contained in the Registry, except in any case in which 
        publishing the information would result in a disclosure of--
                    ``(A) information vital to national security, as 
                determined by the President; or
                    ``(B) confidential business information that cannot 
                be derived from information that is otherwise publicly 
                available and that would cause significant calculable 
                competitive harm if published (except that information 
                on total greenhouse gas emissions shall not be 
                considered to be confidential business information).
    ``(c) Third-Party Verification.--The Administrator may use the 
services of third parties that have no conflicts of interest to verify 
reports required under section 705.
    ``(d) Regulations.--Not later than December 31, 2009, the 
Administrator shall promulgate final regulations to carry out this 
section.

                    ``Subtitle B--Reducing Emissions

``SEC. 711. EMISSION ALLOWANCE ACCOUNT.

    ``(a) In General.--The Administrator shall establish a separate 
quantity of emission allowances for each of calendar years 2012 through 
2050, in accordance with subsection (d).
    ``(b) Identification Numbers.--The Administrator shall assign to 
each emission allowance established under subsection (a) a unique 
identification number that includes the calendar year for which that 
emission allowance was established.
    ``(c) Legal Status of Emission Allowances.--
            ``(1) In general.--An emission allowance does not 
        constitute a property right.
            ``(2) Termination or limitation.--Nothing in this Act or 
        any other provision of law shall be construed to limit or alter 
        the authority of the United States to terminate or limit an 
        emission allowance.
            ``(3) Other provisions unaffected.--Nothing in this Act 
        relating to emission allowances shall affect the application 
        of, or the responsibility for compliance with, any other 
        provision of law to or of a covered entity.
    ``(d) Allowances for Each Calendar Year.--The numbers of emission 
allowances established by the Administrator under subsection (a) for 
each of calendar years 2012 through 2050 shall be as follows:


----------------------------------------------------------------------------------------------------------------
            ``Calendar year                            Number of emission allowances (in millions)
----------------------------------------------------------------------------------------------------------------
2012                                     6,098
----------------------------------------------------------------------------------------------------------------
2013                                     5,946
----------------------------------------------------------------------------------------------------------------
2014                                     5,794
----------------------------------------------------------------------------------------------------------------
2015                                     5,642
----------------------------------------------------------------------------------------------------------------
2016                                     5,490
----------------------------------------------------------------------------------------------------------------
2017                                     5,338
----------------------------------------------------------------------------------------------------------------
2018                                     5,186
----------------------------------------------------------------------------------------------------------------
2019                                     5,034
----------------------------------------------------------------------------------------------------------------
2020                                     4,983
----------------------------------------------------------------------------------------------------------------
2021                                     4,848
----------------------------------------------------------------------------------------------------------------
2022                                     4,713
----------------------------------------------------------------------------------------------------------------
2023                                     4,578
----------------------------------------------------------------------------------------------------------------
2024                                     4,443
----------------------------------------------------------------------------------------------------------------
2025                                     4,308
----------------------------------------------------------------------------------------------------------------
2026                                     4,173
----------------------------------------------------------------------------------------------------------------
2027                                     4,038
----------------------------------------------------------------------------------------------------------------
2028                                     3,903
----------------------------------------------------------------------------------------------------------------
2029                                     3,768
----------------------------------------------------------------------------------------------------------------
2030                                     3,633
----------------------------------------------------------------------------------------------------------------
2031                                     3,498
----------------------------------------------------------------------------------------------------------------
2032                                     3,363
----------------------------------------------------------------------------------------------------------------
2033                                     3,228
----------------------------------------------------------------------------------------------------------------
2034                                     3,093
----------------------------------------------------------------------------------------------------------------
2035                                     2,958
----------------------------------------------------------------------------------------------------------------
2036                                     2,823
----------------------------------------------------------------------------------------------------------------
2037                                     2,688
----------------------------------------------------------------------------------------------------------------
2038                                     2,553
----------------------------------------------------------------------------------------------------------------
2039                                     2,418
----------------------------------------------------------------------------------------------------------------
2040                                     2,283
----------------------------------------------------------------------------------------------------------------
2041                                     2,148
----------------------------------------------------------------------------------------------------------------
2042                                     2,013
----------------------------------------------------------------------------------------------------------------
2043                                     1,878
----------------------------------------------------------------------------------------------------------------
2044                                     1,743
----------------------------------------------------------------------------------------------------------------
2045                                     1,608
----------------------------------------------------------------------------------------------------------------
2046                                     1,473
----------------------------------------------------------------------------------------------------------------
2047                                     1,338
----------------------------------------------------------------------------------------------------------------
2048                                     1,203
----------------------------------------------------------------------------------------------------------------
2049                                     1,068
----------------------------------------------------------------------------------------------------------------
2050                                     930
----------------------------------------------------------------------------------------------------------------

``SEC. 712. COMPLIANCE OBLIGATION.

    ``(a) In General.--Not later than 90 days after the end of each of 
calendar years 2012 through 2050, the owner or operator of a covered 
entity shall submit to the Administrator a quantity of emission 
allowances calculated as follows:
            ``(1) For a covered entity that is a facility within the 
        electric power sector, 1 emission allowance for each carbon 
        dioxide equivalent of greenhouse gas that such facility emitted 
        in the calendar year, excluding--
                    ``(A) emissions resulting from the use at that 
                facility of petroleum- or coal-based liquid or gaseous 
                fuel (other than petroleum coke); and
                    ``(B) any greenhouse gas that is captured and 
                geologically sequestered.
            ``(2) For a covered entity that is an industrial facility, 
        1 emission allowance for each carbon dioxide equivalent of 
        greenhouse gas that such facility emitted in the calendar year, 
        excluding--
                    ``(A) emissions resulting from the use at that 
                facility of petroleum- or coal-based liquid or gaseous 
                fuel (other than petroleum coke);
                    ``(B) emissions resulting from the use of 
                hydrofluorocarbons, perfluorocarbons, sulfur 
                hexafluoride, nitrogen trifluoride, or any other 
                fluorinated gas that is a greenhouse gas, as designated 
                by the Administrator under section 704, purchased for 
                use at that facility; and
                    ``(C) any greenhouse gas that is captured and 
                geologically sequestered.
            ``(3) For a covered entity that produced or imported 
        petroleum- or coal-based liquid or gaseous fuel (other than 
        petroleum coke), 1 emission allowance for each carbon dioxide 
        equivalent of greenhouse gas that will be emitted from the 
        combustion of any such fuel produced for use in the United 
        States or imported during the calendar year, assuming no 
        capture or sequestration of any greenhouse gas emissions.
            ``(4) For a covered entity that is a local distribution 
        company, 1 emission allowance for each carbon dioxide 
        equivalent of greenhouse gas that will be emitted from the 
        combustion of the natural gas such entity delivered during the 
        calendar year, assuming no capture or sequestration of that 
        greenhouse gas, and excluding any natural gas that is delivered 
        to a covered entity that is a facility described in paragraph 
        (1) or (2).
            ``(5) For a covered entity that produced for sale or 
        distribution, or imported, hydrofluorocarbons, 
        perfluorocarbons, sulfur hexafluoride, nitrogen trifluoride, or 
        any other fluorinated gas that is a greenhouse gas, as 
        designated by the Administrator under section 704, 1 emission 
        allowance for each carbon dioxide equivalent of such greenhouse 
        gas produced for sale or distribution in the United States, or 
        imported, during the calendar year, except that this paragraph 
        shall not apply to hydrofluorocarbons produced or imported for 
        sale or distribution during calendar years 2012 through 2019.
            ``(6) For a covered entity that is a geological 
        sequestration site, 1 emission allowance for each carbon 
        dioxide equivalent of greenhouse gas that such site emitted in 
        the calendar year.
            ``(7) A covered entity to which more than 1 of paragraphs 
        (1) through (6) apply shall submit emission allowances in 
        compliance with all applicable paragraphs, except that a 
        covered entity shall not be required to submit more than 1 
        emission allowance for the same emissions.
    ``(b) Notice Requirement for Covered Entities Receiving Natural Gas 
From Local Distribution Companies.--The owner or operator of a covered 
entity that is an industrial facility and that takes delivery of 
natural gas from a local distribution company shall, not later than 
September 1 of each calendar year, notify such local distribution 
company in writing that such industrial facility will qualify as a 
covered entity under this title for that calendar year.
    ``(c) Alternative Compliance.--A covered entity may--
            ``(1) satisfy up to 15 percent of its compliance 
        obligations under subsection (a) by submitting in lieu of an 
        emission allowance an offset credit issued pursuant to subtitle 
        E;
            ``(2) satisfy up to 15 percent of its compliance 
        obligations under subsection (a) by submitting in lieu of an 
        emission allowance an international emission allowance or an 
        international offset credit approved by the Administrator under 
        subtitle F;
            ``(3) submit in lieu of an emission allowance a destruction 
        credit obtained under subsection (f) of this section.
    ``(d) Retirement of Allowances and Credits.--Immediately upon 
receipt of an emission allowance, offset credit, or destruction credit 
under subsection (a), the Administrator shall retire the emission 
allowance, offset credit, or destruction credit. Treatment of 
international emission allowances and international offset credits 
submitted under this section shall be governed by section 753.
    ``(e) Determination of Compliance.--Not later than July 1 of each 
year, the Administrator shall determine whether the owners and 
operators of all covered entities are in full compliance with 
subsection (a) for the preceding year.
    ``(f) Destruction Credit.--If the Administrator determines that an 
entity has, during any of calendar years 2012 through 2050, converted a 
greenhouse gas other than methane by thermal, chemical, or other means 
to another gas with a low- or zero-global warming potential, the 
Administrator shall establish and distribute to that entity a quantity 
of destruction credits that is equal to the number of carbon dioxide 
equivalents of reduction in global warming potential achieved through 
such conversion.

``SEC. 713. PENALTY FOR NONCOMPLIANCE.

    ``(a) Excess Emissions Penalty.--
            ``(1) In general.--The owner or operator of any covered 
        entity that fails for any year to submit to the Administrator 
        by the deadline described in section 712(a) or 733(c), 1 or 
        more of the emission allowances due pursuant to either of those 
        sections shall be liable for the payment to the Administrator 
        of an excess emissions penalty.
            ``(2) Amount.--The amount of an excess emissions penalty 
        required to be paid under paragraph (1) shall be an amount 
        equal to the product obtained by multiplying--
                    ``(A) the number of emission allowances that the 
                owner or operator failed to submit; and
                    ``(B) the greater of--
                            ``(i) $200; or
                            ``(ii) 3 times the fair market value of an 
                        emission allowance during the calendar year for 
                        which the emission allowances were due.
            ``(3) Timing.--An excess emissions penalty required under 
        this subsection shall be immediately due and payable to the 
        Administrator, without demand, in accordance with such 
        regulations as shall be promulgated by the Administrator by the 
        date that is 1 year after the date of enactment of this title.
            ``(4) Deposit.--The Administrator shall deposit each excess 
        emissions penalty paid under this subsection in the Treasury of 
        the United States.
            ``(5) No effect on liability.--An excess emissions penalty 
        due and payable by the owner or operator of a covered entity 
        under this subsection shall not diminish the liability of the 
        owner or operator for any fine, penalty, or assessment against 
        the owner or operator for the same violation under any other 
        provision of this Act or any other law.
    ``(b) Excess Emission Allowance.--The owner or operator of a 
covered entity that fails for any year to submit to the Administrator, 
by the deadline described in section 712(a) or 733(c), 1 or more of the 
emission allowances due pursuant to either of those sections shall be 
liable to offset the excess emissions by an equal quantity of emission 
allowances during--
            ``(1) the following calendar year; or
            ``(2) such longer period as the Administrator may 
        prescribe.

                ``Subtitle C--Distribution of Allowances

``SEC. 721. AUCTIONS.

    ``(a) In General.--The Administrator shall, pursuant to regulations 
promulgated under this section, auction all emission allowances 
established under section 711, except as provided in section 723.
    ``(b) Initial Regulations.--Not later than 180 days after the date 
of enactment of this title, the Administrator shall promulgate 
regulations governing the auction of allowances under this section. 
Such regulations shall include the following requirements:
            ``(1) Frequency; first auction.--Auctions shall be held 
        four times per year at regular intervals, with the first 
        auction to be held no later than March 31, 2010.
            ``(2) Auction schedule; current and future vintages.--The 
        Administrator shall, at each quarterly auction, offer for sale 
        both a portion of the allowances with the same vintage as the 
        year in which the auction is being conducted and a portion of 
        the allowances with vintages from future years. The preceding 
        sentence shall not apply to auctions held in 2010 and 2011, 
        during which, by necessity, the Administrator shall auction 
        only allowances with a vintage year that is later than the year 
        in which the auction is held. Beginning with the first auction 
        and at each quarterly auction held thereafter, the 
        Administrator may offer for sale allowances with vintages of up 
        to four years in advance of the year in which the auction is 
        being conducted.
            ``(3) Auction format.--Auctions shall follow a single-
        round, sealed-bid, uniform price format.
            ``(4) Participation; financial assurance.--Auctions shall 
        be open to any person, except that the Administrator may 
        establish financial assurance requirements to ensure that 
        auction participants can and will perform on their bids.
            ``(5) Disclosure of beneficial ownership.--Each bidder in 
        the auction shall be required to disclose the person or entity 
        sponsoring or benefitting from the bidder's participation in 
        the auction if such person or entity is, in whole or in part, 
        other than the bidder or the bidder's employer.
            ``(6) Bidding limits.--No person may, directly or in 
        concert with another participant, purchase more than 33 percent 
        of the allowances offered for sale at any quarterly auction.
            ``(7) Publication of information.--After the auction, the 
        Administrator shall, in a timely fashion, publish the 
        identities of winning bidders, the quantity of allowances 
        obtained by each winning bidder, and the auction clearing 
        price.
            ``(8) Other requirements.--The Administrator may include in 
        the regulations such other requirements or provisions as the 
        Administrator deems necessary to promote effective, efficient, 
        transparent, and fair administration of auctions under this 
        section.
    ``(c) Revision of Regulations.--The Administrator may, at any time, 
revise the initial regulations promulgated under subsection (b) based 
on the Administrator's experience in administering allowance auctions. 
Such revised regulations need not meet the requirements identified in 
subsection (b) if the Administrator determines that an alternative 
auction design would be more effective, taking into account factors 
including costs of administration, transparency, fairness, and risks of 
collusion or manipulation.

``SEC. 722. AUCTION PROCEEDS.

    ``(a) Funds Established.--There are established in the Treasury of 
the United States the following funds:
            ``(1) The Investing in Climate Action and Protection Act 
        Management Fund.
            ``(2) The Climate Change Education and Outreach Fund.
            ``(3) The Climate Trust Rebate Fund.
            ``(4) The Low-Carbon Technology Fund.
            ``(5) The National Energy Efficiency Fund.
            ``(6) The Agriculture and Forestry Carbon Fund.
            ``(7) The Climate Change Worker Transition Fund.
            ``(8) The National Climate Change Adaptation Fund.
            ``(9) The Natural Resource Conservation Fund.
            ``(10) The International Forest Protection Fund.
            ``(11) The International Clean Technology Fund.
            ``(12) The International Climate Change Adaptation Fund.
    ``(b) Amounts in Funds.--Each Fund established by subsection (a) 
shall consist of such amounts as are deposited into the respective Fund 
under this section.
    ``(c) Investing in Climate Action and Protection Act Management 
Fund.--
            ``(1) In general.--For each of fiscal years 2010 through 
        2050, the Administrator shall deposit into the Investing in 
        Climate Action and Protection Act Management Fund such 
        percentage of the proceeds of the auctions conducted by the 
        Administrator for such fiscal year under this section, not to 
        exceed 0.5 percent of the total value of the proceeds from 
        auctions conducted in that fiscal year, as the President 
        determines to be sufficient to efficiently and effectively 
        administer this title and title II of the Investing in Climate 
        Action and Protection Act.
            ``(2) Use of funds.--Funds from the Investing in Climate 
        Action and Protection Act Management Fund may be used by--
                    ``(A) the Administrator for--
                            ``(i) the costs of carrying out this title, 
                        including the costs of promulgation of 
                        regulations, development of policy guidance, 
                        development and operation of information 
                        systems, certification of monitoring equipment, 
                        conducting facilities audits and inspections, 
                        monitoring and modeling, quality assurance and 
                        verification functions, enforcement, 
                        administration, outreach, training, field 
                        audits, and financial management; and
                            ``(ii) contracting with the National 
                        Academy of Sciences for periodic review under 
                        the Investing in Climate Action and Protection 
                        Act; and
                    ``(B) the Federal Energy Regulatory Commission for 
                the costs of carrying out title II of the Investing in 
                Climate Action and Protection Act.
            ``(3) Treatment.--Amounts in the Investing in Climate 
        Action and Protection Act Management Fund--
                    ``(A) shall be used only to advance the purposes 
                described in section 3 of the Investing in Climate 
                Action and Protection Act;
                    ``(B) are subject to the availability of 
                appropriations; and
                    ``(C) shall remain available until expended.
    ``(d) Climate Change Education and Outreach Fund.--For each of the 
fiscal years 2010 through 2050, the Administrator shall deposit 
$50,000,000 from the auction proceeds for such fiscal year in the 
Climate Change Education and Outreach Fund.
    ``(e) Use of Remaining Proceeds.--
            ``(1) Fiscal years 2010 through 2019.--For each of fiscal 
        years 2010 through 2019, the Administrator shall allocate the 
        remaining proceeds of the auctions conducted by the 
        Administrator during the fiscal year as follows:


----------------------------------------------------------------------------------------------------------------
                                              ``Fund                                                 Percentage
----------------------------------------------------------------------------------------------------------------
General Fund of the Treasury                                                                                 51
----------------------------------------------------------------------------------------------------------------
Climate Trust Rebate Fund                                                                                   7.5
----------------------------------------------------------------------------------------------------------------
Low-Carbon Technology Fund                                                                                 12.5
----------------------------------------------------------------------------------------------------------------
National Energy Efficiency Fund                                                                            12.5
----------------------------------------------------------------------------------------------------------------
Agriculture and Forestry Carbon Fund                                                                        4.5
----------------------------------------------------------------------------------------------------------------
Climate Change Worker Transition Fund                                                                       1.5
----------------------------------------------------------------------------------------------------------------
National Climate Change Adaptation Fund                                                                       2
----------------------------------------------------------------------------------------------------------------
Natural Resource Conservation Fund                                                                          1.5
----------------------------------------------------------------------------------------------------------------
International Forest Protection Fund                                                                        1.5
----------------------------------------------------------------------------------------------------------------
International Clean Technology Fund                                                                         3.5
----------------------------------------------------------------------------------------------------------------
International Climate Change Adaptation Fund                                                                  2
----------------------------------------------------------------------------------------------------------------

            ``(2) Fiscal years 2020 through 2050.--For each of fiscal 
        years 2020 through 2050, the Administrator shall allocate the 
        remaining proceeds of the auctions conducted by the 
        Administrator during the fiscal year as follows:


----------------------------------------------------------------------------------------------------------------
                                              ``Fund                                                 Percentage
----------------------------------------------------------------------------------------------------------------
General Fund of the Treasury                                                                                 48
----------------------------------------------------------------------------------------------------------------
Climate Trust Rebate Fund                                                                                     7
----------------------------------------------------------------------------------------------------------------
Low-Carbon Technology Fund                                                                                 12.5
----------------------------------------------------------------------------------------------------------------
National Energy Efficiency Fund                                                                            12.5
----------------------------------------------------------------------------------------------------------------
Agriculture and Forestry Carbon Fund                                                                          5
----------------------------------------------------------------------------------------------------------------
Climate Change Worker Transition Fund                                                                         2
----------------------------------------------------------------------------------------------------------------
National Climate Change Adaptation Fund                                                                     2.5
----------------------------------------------------------------------------------------------------------------
Natural Resource Conservation Fund                                                                            2
----------------------------------------------------------------------------------------------------------------
International Forest Protection Fund                                                                          2
----------------------------------------------------------------------------------------------------------------
International Clean Technology Fund                                                                           4
----------------------------------------------------------------------------------------------------------------
International Climate Change Adaptation Fund                                                                2.5
----------------------------------------------------------------------------------------------------------------

``SEC. 723. TRANSITIONAL ASSISTANCE TO MANUFACTURERS OF TRADE-EXPOSED 
              PRIMARY GOODS.

    ``(a) Definitions.--In this section:
            ``(1) Currently operating manufacturing facility.--The term 
        `currently operating manufacturing facility' means an eligible 
        manufacturing facility that had significant operations during 
        the calendar year preceding the calendar year for which 
        emission allowances are being distributed under this section.
            ``(2) Eligible manufacturing facility.--The term `eligible 
        manufacturing facility' means an industrial facility described 
        in section 700(13)(A) that is located in the United States and 
        that principally manufactures trade-exposed primary goods.
            ``(3) New entrant manufacturing facility.--The term `new 
        entrant manufacturing facility' means an eligible manufacturing 
        facility that will begin operation during the calendar year for 
        which emission allowances are being distributed under this 
        section.
            ``(4) Primary good.--The term `primary good' means--
                    ``(A) a manufactured product (other than fuel) that 
                is sold in bulk for purposes of further manufacture, 
                such as aluminum, cement, iron and steel, and bulk 
                glass; and
                    ``(B) paper.
            ``(5) Production amount.--The term `production amount' 
        means--
                    ``(A) for a currently operating manufacturing 
                facility, the quantity of the trade-exposed primary 
                good the facility produced, on average, during the most 
                recent 3 calendar years for which data is available, or 
                such shorter historical period as the facility has been 
                in operation; and
                    ``(B) for a new entrant manufacturing facility, the 
                expected production capacity for the trade-exposed 
                primary good by the facility for the calendar year.
            ``(6) Trade-exposed primary good.--The term `trade-exposed 
        primary good' means a primary good that the Administrator 
        determines is likely to be significantly disadvantaged in 
        internationally competitive markets as a result of direct and 
        indirect costs of compliance with this title.
    ``(b) Categories of Trade-Exposed Primary Goods.--Not later than 
180 days after the date of enactment of this title, the Administrator 
shall publish in the Federal Register a list of categories and 
subcategories of trade-exposed primary goods for the purposes of this 
section and subtitle G.
    ``(c) Eligible Manufacturing Facilities.--
            ``(1) List.--Not later than 120 days prior to the start of 
        each of calendar years 2012 through 2019, the Administrator 
        shall publish in the Federal Register a list of eligible 
        manufacturing facilities for each category and subcategory of 
        trade-exposed primary goods listed under subsection (b). The 
        list published under this paragraph shall include information 
        on the production amount for each listed category and 
        subcategory of goods.
            ``(2) Allowance allocation.--In addition to the list under 
        paragraph (1), the publication under this subsection shall 
        specify the quantity of emission allowances to be allocated to 
        each eligible manufacturing facility pursuant to subsections 
        (d) through (i).
            ``(3) Obtaining information.--The Administrator shall issue 
        regulations to provide the Administrator access to the 
        information necessary to publish the list required under 
        paragraph (1). Such regulations shall not require manufacturing 
        facilities to submit information available to the Administrator 
        from other Federal agencies or public sources of information.
    ``(d) Total Allocation.--For each of calendar years 2012 through 
2019, the Administrator shall allocate 6 percent of the quantity of 
emission allowances established under section 711 for the relevant year 
to eligible manufacturing facilities in accordance with this section.
    ``(e) Distribution System.--Not later than 1 year after the date of 
enactment of this title, the Administrator shall promulgate a 
regulation establishing a system for distributing to the owners or 
operators of eligible manufacturing facilities the emission allowances 
described in subsection (d). Such distribution shall occur by January 1 
of the year for which the allowances are being distributed.
    ``(f) Total Allocation for Each Category and Subcategory of 
Eligible Manufacturing Facilities.--The proportion of total emission 
allowances distributed by the Administrator for each calendar year to 
each category and subcategory of eligible manufacturing facilities 
shall be determined by the Administrator based upon the relative 
predicted adverse impact of direct and indirect costs of compliance 
with this title on each category or subcategory. The Administrator 
shall establish such proportion not later than January 1, 2011, and 
shall revise such proportion by January 1 of each year thereafter only 
to reflect the predicted changes in production levels of each category 
or subcategory.
    ``(g) Individual Allocations to Eligible Manufacturing 
Facilities.--The quantity of emission allowances distributed by the 
Administrator for a calendar year to an eligible manufacturing facility 
shall be a quantity equal to the product obtained by multiplying--
            ``(1) the total quantity of emission allowances available 
        for distribution to all eligible manufacturing facilities in 
        the appropriate category or subcategory for the calendar year 
        as determined under subsection (f); and
            ``(2) the ratio that the production amount of the facility 
        bears to the sum of--
                    ``(A) the total quantity of the trade-exposed 
                primary good produced, on average, over the 3 preceding 
                calendar years, by currently operating manufacturing 
                facilities; and
                    ``(B) the expected production capacity for the 
                trade-exposed primary good of all new entrant 
                manufacturing facilities for the calendar year.
    ``(h) New Entrant Manufacturing Facilities.--The system established 
pursuant to subsection (e) shall authorize the Administrator to require 
the return to the Administrator of an appropriate portion of the 
emission allowances distributed to a new entrant manufacturing facility 
if actual production by such facility is lower than the production 
amount used to calculate the distribution to the facility.
    ``(i) Facilities That Shut Down.--The system established pursuant 
to subsection (e) shall ensure that--
            ``(1) emission allowances are not distributed to an owner 
        or operator for any facility that has been permanently shut 
        down at the time of the distribution;
            ``(2) if a facility receives a distribution of emission 
        allowances under this section for a calendar year and 
        subsequently permanently shuts down during that calendar year, 
        the owner or operator of such facility promptly returns to the 
        Administrator a quantity of emission allowances equal to the 
        quantity that the Administrator determines is the portion that 
        the owner or operator will no longer need to meet its 
        submission obligations for such facility under section 712; and
            ``(3) the owner or operator of any facility that 
        permanently shuts down in a calendar year promptly returns to 
        the Administrator any emission allowances that the 
        Administrator has distributed for that facility for any 
        subsequent calendar year.

             ``Subtitle D--Trading, Banking, and Borrowing

``SEC. 731. TRADING.

    ``(a) Sale, Exchange, and Retirement of Emission Allowances.--
Except as otherwise provided in this title, the lawful holder of an 
emission allowance may, without restriction, sell, exchange, transfer, 
submit for compliance in accordance with section 712, or request that 
the Administrator retire the emission allowance.
    ``(b) No Restriction on Transactions.--The privilege of purchasing, 
holding, selling, exchanging, and requesting retirement of emission 
allowances shall not be restricted to the owners and operators of 
covered entities.
    ``(c) Allowance Transfer System.--Not later than 18 months after 
the date of enactment of this title, the Administrator shall promulgate 
regulations to carry out the provisions of this title relating to 
emission allowances, including regulations providing that the transfer 
of emission allowances shall not be effective until such date as a 
written certification of the transfer, signed by a responsible official 
of each party to the transfer, is received and recorded by the 
Administrator in accordance with those regulations.
    ``(d) Allowance Tracking System.--The regulations promulgated under 
subsection (c) shall include a system for issuing, recording, and 
tracking emission allowances that shall specify all necessary 
procedures and requirements for an orderly and competitive functioning 
of the emission allowance system.

``SEC. 732. BANKING.

    ``(a) In General.--An emission allowance may be used to meet the 
requirements of section 712 in the calendar year for which the 
allowance is issued, as indicated in the identification number of the 
emission allowance, or any subsequent calendar year.
    ``(b) Effect of Time.--The passage of time shall not, by itself, 
cause an emission allowance to be retired or otherwise diminish the 
compliance value of the emission allowance.

``SEC. 733. BORROWING.

    ``(a) Regulations.--Not later than 3 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
under which, subject to the requirements of this section, the owner or 
operator of a covered entity may--
            ``(1) borrow emission allowances from the Administrator; 
        and
            ``(2) for a calendar year, submit borrowed emission 
        allowances to the Administrator in satisfaction of up to 15 
        percent of the compliance obligation under section 712(a).
    ``(b) Limitations.--An emission allowance borrowed pursuant to this 
section shall be an emission allowance established by the Administrator 
for a specific future calendar year under section 711(a). The 
Administrator shall not lend an emission allowance drawn from a 
calendar year (as indicated in the identification number of the 
emission allowance) that is more than 5 years later than the calendar 
year in which such loan is made.
    ``(c) Repayment With Interest.--For each emission allowance that an 
owner or operator of a covered entity borrows pursuant to this section, 
such owner or operator shall, not later than December 31 of the 
calendar year from which the borrowed emission allowance was drawn (as 
indicated in the identification number of the borrowed emission 
allowance), submit to the Administrator a quantity of emission 
allowances that is equal to the sum of--
            ``(1) 1; and
            ``(2) the product obtained by multiplying--
                    ``(A) 0.1; and
                    ``(B) the number of years, including prorated 
                portions of years, between the date on which the 
                emission allowance was borrowed and the date on which 
                the loan is repaid.

                     ``Subtitle E--Domestic Offsets

``SEC. 741. ESTABLISHMENT OF DOMESTIC OFFSET PROGRAM.

    ``(a) Regulations.--Not later than 18 months after the date of 
enactment of this title, the Administrator shall promulgate regulations 
establishing a program for the issuance of offset credits in accordance 
with the requirements of this subtitle.
    ``(b) Requirements.--The regulations described in subsection (a) 
shall, at minimum--
            ``(1) authorize the issuance of offset credits generated 
        through qualifying offset projects within the United States 
        that achieve greenhouse gas emission reductions below, or 
        increases in biological sequestration above, the project 
        baseline;
            ``(2) ensure that such offset credits represent real, 
        verifiable, additional, permanent, and enforceable reductions 
        in greenhouse gas emissions or increases in biological 
        sequestration; and
            ``(3) provide for the implementation of the requirements of 
        this subtitle.
    ``(c) Periodic Review.--Not later than 5 years after the date of 
enactment of this title, and periodically thereafter, the Administrator 
shall review and revise, as necessary, the regulations promulgated 
under this subtitle.

``SEC. 742. ELIGIBLE PROJECT TYPES.

    ``(a) Eligible Project Types.--The types of projects eligible to 
generate offset credits under this subtitle shall be limited to 
projects that--
            ``(1) reduce greenhouse gas emissions, from agricultural 
        facilities in the United States that are not subject to 
        performance standards issued under section 771, resulting from 
        enteric fermentation or manure management and disposal;
            ``(2) increase biological sequestration of carbon through 
        afforestation or reforestation of acreage in the United States 
        that was not forested as of June 3, 2008;
            ``(3) reduce fugitive greenhouse gas emissions from 
        petroleum and natural gas systems in the United States; or
            ``(4) reduce greenhouse gas emissions from coal mines in 
        the United States that are not subject to performance standards 
        issued under section 771.
    ``(b) Exclusions.--The Administrator shall ensure that no offset 
credits shall be generated under this subtitle by--
            ``(1) any reduction of greenhouse gas emissions that are 
        covered by the compliance obligations set forth in section 
        712(a); or
            ``(2) any activity receiving support under subtitle D of 
        title III of the Investing in Climate Action and Protection 
        Act.

``SEC. 743. PROTOCOLS AND ACCOUNTING METHODS.

    ``(a) Development of Monitoring and Quantification Tools for Offset 
Projects.--
            ``(1) In general.--The Administrator shall develop 
        standardized tools for use in the monitoring and quantification 
        of net reductions in greenhouse gas emissions or net increases 
        in biological sequestration for each eligible offset project 
        type.
            ``(2) Tool development.--The tools described in paragraph 
        (1) shall, for each eligible offset project type, include 
        applicable--
                    ``(A) statistically sound field and remote sensing 
                sampling methods, procedures, techniques, protocols, or 
                programs;
                    ``(B) models, factors, equations, or look-up 
                tables; and
                    ``(C) any other process or tool considered to be 
                acceptable by the Administrator.
    ``(b) Development of Accounting and Discounting Methods.--
            ``(1) In general.--The Administrator shall--
                    ``(A) develop standardized methods for use in 
                estimating the baseline, accounting for additionality 
                and uncertainty, and discounting for leakage for each 
                eligible offset project type; and
                    ``(B) require that leakage be subtracted from 
                reductions in greenhouse gas emissions or increases in 
                biological sequestration attributable to a project.
            ``(2) Baseline estimation and additionality 
        determination.--The standardized methods used to establish 
        baselines and determine additionality shall, for each project 
        type, at a minimum--
                    ``(A) in the case of an afforestation or 
                reforestation project, determine the greenhouse gas 
                flux and carbon stock on comparable land identified on 
                the basis of--
                            ``(i) similarity in current management 
                        practices;
                            ``(ii) similarity of regional, State, or 
                        local policies or programs; and
                            ``(iii) similarity in geographical and 
                        biophysical characteristics;
                    ``(B) in the case of an emission reduction project, 
                use as a basis emissions from comparable facilities; 
                and
                    ``(C) specify a selected time period and provide 
                for regular updating of baselines and additionality 
                standards to take account of changes in business-as-
                usual practices; and
                    ``(D) ensure that emission reductions or increases 
                in biological sequestration are not considered 
                additional that are the result of activities that--
                            ``(i) are required by or undertaken to 
                        comply with any law, including any regulation; 
                        or
                            ``(ii) were commenced prior to the 
                        initiation of the offset project.
            ``(3) Leakage.--The standardized methods used to determine 
        and discount for leakage shall, at a minimum, take into 
        consideration--
                    ``(A) the scope of the offset project in terms of 
                activities and geography covered;
                    ``(B) the markets relevant to the offset project;
                    ``(C) emission intensity per unit of production, 
                both inside and outside of the offset project; and
                    ``(D) a time period sufficient in length to yield a 
                stable leakage rate.
    ``(c) Standards Addressing Permanence in Afforestation and 
Reforestation Projects.--The Administrator shall prescribe specific 
standards ensuring that each offset allowance generated through an 
afforestation or reforestation project represents a permanent net 
increase in biological sequestration, and that full account is taken of 
any actual or potential reversal of such sequestration, with an 
adequate margin of safety. In prescribing such standards, the 
Administrator shall seek to maximize the certainty that the overall cap 
on greenhouse gas emissions established by this title is not 
compromised.
    ``(d) Uncertainty.--
            ``(1) In general.--The Administrator shall develop 
        standardized methods for use in determining and discounting for 
        uncertainty for each offset project type.
            ``(2) Basis.--The standardized methods used to determine 
        and discount for uncertainty shall be based on--
                    ``(A) the robustness and rigor of the methods used 
                by a project developer to monitor and quantify 
                reductions in greenhouse gas emissions or net 
                biological sequestration;
                    ``(B) the robustness and rigor of methods used to 
                determine additionality, leakage, and permanence; and
                    ``(C) a proportional discount that increases 
                relative to uncertainty, as determined by the 
                Administrator to encourage better measurement and 
                accounting.
    ``(e) Acquisition of New Data and Review of Methods.--The 
Administrator shall--
            ``(1) establish a comprehensive field sampling program to 
        improve the scientific bases on which the standardized tools 
        and methods developed under this section are based; and
            ``(2) not less frequently than every five years, review 
        and, as appropriate, revise the standardized tools and methods 
        developed under this section, based on--
                    ``(A) validation of existing methods, protocols, 
                procedures, techniques, factors, equations, or models;
                    ``(B) development of new methods, protocols, 
                procedures, techniques, factors, equations, or models;
                    ``(C) increased availability of field data or other 
                datasets; and
                    ``(D) any other information identified by the 
                Administrator that is necessary to meet the objectives 
                of this subtitle.

``SEC. 744. PROJECT INITIATION.

    ``(a) In General.--The Administrator may prescribe rules requiring 
project developers for such project types as the Administrator 
considers appropriate, prior to initiation of an offset project, to--
            ``(1) submit a petition for project initiation, including--
                    ``(A) a plan for monitoring and quantifying 
                reductions in emissions or net increases in biological 
                sequestration resulting from the project;
                    ``(B) a certification that the project will not 
                have significant adverse effects on the environment; 
                and
                    ``(C) such other information as the Administrator 
                considers necessary to meet the objectives of this 
                subtitle; and
            ``(2) obtain the Administrator's approval of the offset 
        project, pursuant to subsection (b).
    ``(b) Approval and Notification.--
            ``(1) In general.--If the Administrator establishes project 
        initiation requirements under subsection (a), the Administrator 
        shall, not later than 60 days after the submission of a 
        complete petition under subsection (a)(1)--
                    ``(A) determine whether the petition satisfies the 
                applicable requirements of this subtitle; and
                    ``(B) notify the project developer of such 
                determination.
            ``(2) Appeal.--The Administrator shall establish mechanisms 
        for appeal and review of negative determinations made under 
        this subsection.

``SEC. 745. OFFSET VERIFICATION AND ISSUANCE OF CREDITS.

    ``(a) In General.--Offset credits may be claimed for net emission 
reductions or increases in biological sequestration annually, after 
accounting for any necessary discounts in accordance with section 743, 
by submitting a verification report for an offset project to the 
Administrator.
    ``(b) Offset Verification.--
            ``(1) Scope of verification.--A verification report for an 
        offset project--
                    ``(A) shall be completed by a verifier accredited 
                in accordance with paragraph (3); and
                    ``(B) shall be developed taking into 
                consideration--
                            ``(i) the information and methodology 
                        contained within any monitoring and 
                        quantification plan submitted under section 
                        744(a)(1)(A);
                            ``(ii) data and subsequent analysis of the 
                        offset project, including--
                                    ``(I) quantification of net 
                                emission reductions or increases in 
                                biological sequestration;
                                    ``(II) determination of 
                                additionality;
                                    ``(III) calculation of leakage;
                                    ``(IV) assessment of permanence;
                                    ``(V) discounting for uncertainty; 
                                and
                                    ``(VI) the adjustment of net 
                                emission reductions or increases in 
                                biological sequestration by the 
                                discounts determined under clauses (II) 
                                through (V); and
                            ``(iii) subject to the requirements of this 
                        subtitle, any other information identified by 
                        the Administrator as being necessary to achieve 
                        the purposes of this subtitle.
            ``(2) Verification report requirements.--The Administrator 
        shall specify the required components of a verification report, 
        including--
                    ``(A) the quantity of offsets generated;
                    ``(B) the amount of discounts applied;
                    ``(C) an assessment of methods (and the 
                appropriateness of those methods);
                    ``(D) an assessment of quantitative errors or 
                omissions (and the effect of the errors or omissions on 
                offsets);
                    ``(E) any potential conflicts of interest between a 
                verifier and project developer; and
                    ``(F) any other provision that the Administrator 
                considers to be necessary to achieve the purposes of 
                this subtitle.
            ``(3) Verifier accreditation.--
                    ``(A) In general.--Not later than 18 months after 
                the date of enactment of this title, the Administrator 
                shall promulgate regulations establishing a process and 
                requirements for accreditation of third-party verifiers 
                to ensure that such verifiers are professionally 
                qualified and have no conflicts of interest.
                    ``(B) Public accessibility.--Each verifier meeting 
                the requirements for accreditation in accordance with 
                this paragraph shall be listed in a publicly accessible 
                database, which shall be maintained and updated by the 
                Administrator.
    ``(c) Registration and Awarding of Offsets.--
            ``(1) In general.--Not later than 90 days after the date on 
        which the Administrator receives a verification report required 
        under subsection (b), the Administrator shall--
                    ``(A) determine whether the offsets satisfy the 
                applicable requirements of this subtitle; and
                    ``(B) notify the project developer of that 
                determination.
            ``(2) Affirmative determination.--In the case of an 
        affirmative determination under paragraph (1), the 
        Administrator shall--
                    ``(A) assign a unique serial number to each offset 
                credit to be issued;
                    ``(B) register the offset credits, together with--
                            ``(i) a verification report issued pursuant 
                        to this section; and
                            ``(ii) any other information identified by 
                        the Administrator as being necessary to achieve 
                        the purposes of this subtitle; and
                    ``(C) issue the offset credits.
            ``(3) Appeal and review.--The Administrator shall establish 
        mechanisms for the appeal and review of determinations made 
        under this subsection.

``SEC. 746. AUDITS.

    ``(a) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
governing the auditing of offset projects and credits.
    ``(b) Requirements.--The regulations promulgated under this section 
shall specifically consider--
            ``(1) principles for initiating and conducting audits;
            ``(2) the type or scope of audits, including--
                    ``(A) reporting and recordkeeping; and
                    ``(B) site review or visitation;
            ``(3) the rights and privileges of an audited party; and
            ``(4) the establishment of an appeal process.

``SEC. 747. TIMING AND THE PROVISION OF OFFSET CREDITS.

    ``(a) Initiation of Offset Projects.--An offset project that 
commences operation on or after the effective date of regulations 
promulgated under section 741(a) shall be eligible to generate offset 
credits under this subtitle only if the offset project meets the other 
applicable requirements of this subtitle.
    ``(b) Pre-Existing Projects.--
            ``(1) In general.--Subject to paragraph (2), the 
        Administrator may issue offset credits under this subtitle for 
        offset projects that, as of the effective date of regulations 
        promulgated under section 741(a), are registered under or meet 
        the standards of the Climate Registry, the California Action 
        Registry, the GHG Registry, the Chicago Climate Exchange, the 
        GHG CleanProjects Registry, or any other Federal, State, or 
        private reporting programs or registries if the Administrator 
        determines that such offset projects satisfy the applicable 
        requirements of this subtitle.
            ``(2) Limitation.--Offset credits shall be issued under 
        this subtitle only for reductions in emissions or increases in 
        biological sequestration that occur after the date of 
        promulgation of regulations under section 741(a).

``SEC. 748. ENVIRONMENTAL CONSIDERATIONS.

    ``(a) Coordination To Minimize Negative Effects.--In promulgating 
and implementing regulations under this subtitle, the Administrator 
shall act (including by rejecting projects, if necessary) to avoid or 
minimize, to the maximum extent practicable, adverse effects on human 
health or the environment resulting from the implementation of offset 
projects under this subtitle.
    ``(b) Use of Native Tree Species in Afforestation and Reforestation 
Projects.--Not later than 18 months after the date of enactment of this 
title, the Administrator shall promulgate regulations for the selection 
and use of tree species in afforestation and reforestation offset 
projects--
            ``(1) to ensure native species are given primary 
        consideration in such projects;
            ``(2) to prohibit the use of federally-designated or State-
        designated noxious weeds; and
            ``(3) to prohibit the use of a species listed by a regional 
        or State invasive plant council within the applicable region or 
        State.

``SEC. 749. OWNERSHIP AND TRANSFER OF OFFSET CREDITS.

    ``(a) Ownership.--Initial ownership of an offset credit shall lie 
with a project developer, unless otherwise specified in a legally-
binding contract or agreement.
    ``(b) Transferability.--An offset credit generated pursuant to this 
subtitle may be sold, traded, or transferred, on the conditions that--
            ``(1) the offset credit has not expired or been retired or 
        canceled; and
            ``(2) liability and responsibility for mitigating and 
        compensating for reversals of registered offset credits is 
        specified in accordance with such rules as the Administrator 
        may prescribe.

   ``Subtitle F--International Emission Allowances and Offset Credits

``SEC. 751. INTERNATIONAL EMISSION ALLOWANCES.

    ``(a) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
providing for the approval of qualifying international emission 
allowances for submission under section 712 or section 765.
    ``(b) Requirements.--The regulations promulgated under subsection 
(a) shall require that, in order to be approved for use under this 
title, an international emission allowance must be issued by a 
governmental program that is at least as stringent as the program 
established by this title, including comparable monitoring, compliance, 
and enforcement.

``SEC. 752. INTERNATIONAL OFFSET CREDITS.

    ``(a) Regulations.--The Administrator shall, following the 
promulgation of regulations governing domestic offset allowances under 
subtitle E of this title, promulgate regulations providing for the 
approval of categories or subcategories of qualifying international 
offset credits for submission under section 712 or section 765.
    ``(b) Requirements.--The regulations promulgated under subsection 
(a) shall require that, in order for a category or subcategory of 
international offset credits to be approved for use under this title--
            ``(1) such international offset credits shall not have been 
        awarded based on land use, land use change, or forestry 
        activities;
            ``(2) such international offset credits have not been 
        awarded based on the destruction of hydrofluorocarbons;
            ``(3) the methods, protocols, and standards for approval of 
        such international offset credits shall be at least as 
        stringent as the methods, protocols, and standards applicable 
        to offset allowances issued under subtitle E of this title, 
        except that the listing of eligible project types in section 
        742 shall not apply to this section; and
            ``(4) the foreign country in which the project that 
        generated the international offset credits was carried out--
                    ``(A) has taken comparable action to reduce 
                greenhouse gas emissions within that country, as 
                determined by the President pursuant to section 764(b);
                    ``(B) was responsible, in the most recent calendar 
                year for which emissions data is available, for less 
                than 0.5 percent of total global greenhouse gas 
                emissions; or
                    ``(C) is identified by the United Nations as among 
                the least developed of developing countries.

``SEC. 753. RETIREMENT.

    ``(a) Entity Certification.--The owner or operator of an entity 
that submits an international emission allowance or international 
offset credit under section 712 or section 765 shall certify to the 
Administrator that such international emission allowance or 
international offset credit has not previously been used to comply with 
any foreign or international greenhouse gas regulatory program.
    ``(b) Retirement.--
            ``(1) Foreign and international regulatory entities.--The 
        Administrator shall seek, by whatever means appropriate, to 
        ensure that any relevant foreign and international regulatory 
        entities--
                    ``(A) are notified of the submission, for purposes 
                of compliance with this title, of any international 
                emission allowance or international offset credit; and
                    ``(B) provide for the disqualification of such 
                international emission allowance or international 
                offset credit for any subsequent use under the relevant 
                foreign or international greenhouse gas regulatory 
                program, regardless of whether such use is a sale, 
                exchange, or submission to satisfy a compliance 
                obligation.
            ``(2) Disqualification from further use.--The Administrator 
        shall ensure that, once an international emission allowance or 
        international offset credit has been submitted for purposes of 
        compliance with this title, such allowance or credit shall be 
        disqualified from any further use under this title.

     ``Subtitle G--Global Effort To Reduce Greenhouse Gas Emissions

``SEC. 761. DEFINITIONS.

    ``In this subtitle:
            ``(1) Comparable action.--The term `comparable action' 
        means any greenhouse gas regulatory programs, requirements, and 
        other measures adopted by a foreign country that, in 
        combination, are at least comparable in effect to actions 
        carried out by the United States to limit greenhouse gas 
        emissions pursuant to this Act, as determined by the President, 
        taking into consideration the level of economic development of 
        the foreign country.
            ``(2) Compliance year.--The term `compliance year' means 
        each calendar year for which the requirements of this title 
        apply to a category or subcategory of trade-exposed primary 
        goods produced in a covered foreign country that is imported 
        into the United States.
            ``(3) Covered foreign country.--The term `covered foreign 
        country' means a foreign country that is included on the 
        covered list prepared under section 765(b)(3).
            ``(4) Foreign country.--The term `foreign country' means a 
        member of, or observer government to, the World Trade 
        Organization, other than the United States.
            ``(5) Indirect greenhouse gas emissions.--The term 
        `indirect greenhouse gas emissions' means any emissions of a 
        greenhouse gas resulting from the generation of electricity 
        that is consumed during the manufacture of a good.
            ``(6) International agreement.--The term `international 
        agreement' means any international agreement to which the 
        United States is a party, including the Marrakesh agreement 
        establishing the World Trade Organization, done at Marrakesh on 
        April 15, 1994.
            ``(7) Trade-exposed primary good.--The term `trade-exposed 
        primary good' has the meaning given that term in section 
        723(a)(6).
            ``(8) United states importer.--The term `United States 
        importer' means an entity that imports into the United States a 
        trade-exposed primary good produced in a covered foreign 
        country.

``SEC. 762. PURPOSES.

    ``The purposes of this subtitle are--
            ``(1) to promote a strong global effort to significantly 
        reduce greenhouse gas emissions;
            ``(2) to ensure, to the maximum extent practicable, that 
        greenhouse gas emissions occurring outside the United States do 
        not undermine the environmental objectives of the United States 
        in addressing global climate change; and
            ``(3) to encourage effective international action to 
        achieve those objectives through--
                    ``(A) agreements negotiated between the United 
                States and foreign countries; and
                    ``(B) measures carried out by the United States 
                that comply with applicable international agreements.

``SEC. 763. INTERNATIONAL NEGOTIATIONS.

    ``(a) Finding.--Congress finds that the purposes described in 
section 762 can be most effectively addressed and achieved through 
agreements negotiated between the United States and foreign countries.
    ``(b) Negotiating Objective.--
            ``(1) Statement of policy.--It is the policy of the United 
        States to work proactively under the United Nations Framework 
        Convention on Climate Change and in other appropriate forums to 
        establish binding agreements committing all major greenhouse 
        gas-emitting nations to contribute equitably to the reduction 
        of global greenhouse gas emissions.
            ``(2) Intent of congress regarding objective.--To the 
        extent that the agreements described in subsection (a) involve 
        measures that will affect international trade in any good or 
        service, it is the intent of Congress that the negotiating 
        objective of the United States shall be to focus multilateral 
        and bilateral international agreements on the reduction of 
        greenhouse gas emissions to advance achievement of the purposes 
        described in section 762.
    ``(c) Notification to Foreign Countries.--
            ``(1) Requirement.--Immediately upon enactment of this Act, 
        the President shall notify each foreign country of the 
        negotiating objective under subsection (b).
            ``(2) Request for comparable action.--Notification shall 
        include a request that any foreign country that would not 
        otherwise be excluded under subparagraph (B) or (C) of section 
        765(b)(2) take comparable action to limit greenhouse gas 
        emissions of the foreign country.

``SEC. 764. DETERMINATION OF COMPARABLE ACTION.

    ``(a) Interagency Review.--
            ``(1) Interagency group.--
                    ``(A) Establishment.--The President shall establish 
                an interagency group to carry out this subsection.
                    ``(B) Chairperson.--The chairperson of the 
                interagency group established under subparagraph (A) 
                shall be the Secretary of State.
                    ``(C) Requirement.--The Administrator shall be a 
                member of the interagency group.
            ``(2) Determinations.--The interagency group established 
        under paragraph (1)(A) shall determine whether, and the extent 
        to which, each foreign country has taken comparable action to 
        limit the greenhouse gas emissions of the foreign country.
            ``(3) Report to president.--Not later than January 1, 2010, 
        and annually thereafter, the interagency group shall submit to 
        the President a report describing the determinations of the 
        interagency group under paragraph (2).
    ``(b) Presidential Determinations.--Not later than January 1, 2011, 
and annually thereafter, the President shall--
            ``(1) determine whether each foreign country has taken 
        comparable action to limit the greenhouse gas emissions of the 
        foreign country, taking into consideration applicable reports 
        submitted under subsection (a)(3);
            ``(2) submit to Congress an annual report describing the 
        determinations of the President under paragraph (1); and
            ``(3) publish the determinations in the Federal Register.

``SEC. 765. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Administrator shall establish a 
        program under which the Administrator, during the 1-year period 
        beginning on January 1, 2019, and annually thereafter, shall 
        offer for sale to United States importers international reserve 
        allowances in accordance with this subsection.
            ``(2) Source.--International reserve allowances under 
        paragraph (1) shall be issued from a special reserve of 
        allowances that is separate from, and established in addition 
        to, the quantity of allowances established under section 711.
            ``(3) Price.--The price of international reserve allowances 
        shall be the fair market value of emission allowances during 
        the previous 12 months, as determined by the Administrator.
            ``(4) Serial number.--The Administrator shall assign a 
        unique serial number to each international reserve allowance 
        issued under this subsection.
            ``(5) Trading system.--The Administrator may establish, by 
        rule, a system for the sale, exchange, purchase, and transfer 
        of international reserve allowances.
            ``(6) Covered entities.--International reserve allowances 
        may not be submitted by covered entities to comply with the 
        allowance submission requirements of section 712.
            ``(7) Proceeds.--All proceeds from the sale of 
        international reserve allowances under this subsection shall be 
        deposited in the International Clean Technology Fund 
        established under section 722(a).
    ``(b) Foreign Country Lists.--
            ``(1) In general.--Not later than January 1, 2019, and 
        annually thereafter, the President shall develop and publish in 
        the Federal Register, together with the determinations under 
        section 764(b), 2 lists of foreign countries, in accordance 
        with this subsection.
            ``(2) Excluded list.--The President shall identify and 
        publish in a list, to be known as the `excluded list'--
                    ``(A) each foreign country determined by the 
                President under section 764(b)(1) to have taken 
                comparable action to limit the greenhouse gas emissions 
                of the foreign country;
                    ``(B) each foreign country determined by the 
                President to be responsible for less than 0.5 percent 
                of total global greenhouse gas emissions for the most 
                recent calendar year for which emissions and other 
                relevant data are available; and
                    ``(C) each foreign country the United Nations has 
                identified as among the least-developed of developing 
                countries.
            ``(3) Covered list.--The President shall identify and 
        publish in a list, to be known as the `covered list', each 
        foreign country that is not included on the excluded list under 
        paragraph (2).
    ``(c) Written Declarations.--
            ``(1) In general.--Effective beginning January 1, 2020, a 
        United States importer shall, as a condition of importation or 
        withdrawal for consumption from a warehouse of a trade-exposed 
        primary good, submit to the Administrator and the appropriate 
        office of U.S. Customs and Border Protection a written 
        declaration with respect to each such importation or 
        withdrawal.
            ``(2) Contents.--A written declaration under paragraph (1) 
        shall contain a statement that--
                    ``(A) the applicable trade-exposed primary good is 
                accompanied by a sufficient number of international 
                reserve allowances, as determined under subsection (d); 
                or
                    ``(B) the trade-exposed primary good was produced 
                in a foreign country on the excluded list published 
                under subsection (b)(2).
            ``(3) Inclusion.--A written declaration under paragraph (1) 
        shall include the unique serial number of each international 
        reserve allowance associated with the importation of the 
        applicable trade-exposed primary good.
            ``(4) Failure to declare.--An imported trade-exposed 
        primary good produced in a covered foreign country that is not 
        accompanied by a written declaration under this subsection 
        shall not be permitted to enter the customs territory of the 
        United States.
            ``(5) Corrected declaration.--
                    ``(A) In general.--If, after making a declaration 
                required under this subsection, an importer has reason 
                to believe that the declaration contains information 
                that is not correct, the importer shall provide a 
                corrected declaration by not later than 30 days after 
                the date of discovery of the error, in accordance with 
                subparagraph (B).
                    ``(B) Method.--A corrected declaration under 
                subparagraph (A) shall be in the form of a letter or 
                other written statement to the Administrator and the 
                office of U.S. Customs and Border Protection to which 
                the original declaration was submitted.
    ``(d) Quantity of Allowances Required.--
            ``(1) Methodology.--Not later than January 1, 2018, the 
        Administrator shall establish, by rule, a method for 
        calculating the required number of international reserve 
        allowances per unit of trade-exposed primary good that a United 
        States importer must submit, together with a written 
        declaration under subsection (c), for each category or 
        subcategory of trade-exposed primary goods produced in each 
        covered foreign country.
            ``(2) Initial compliance year.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                methodology under paragraph (1) shall establish an 
                international reserve allowance requirement (per unit 
                imported into the United States) for the initial 
                compliance year for each category or subcategory of 
                trade-exposed primary goods produced in each covered 
                foreign country that is equal to the quotient obtained 
                by dividing--
                            ``(i) the total greenhouse gas emissions 
                        (including indirect greenhouse gas emissions) 
                        from the covered foreign country that are 
                        attributable to the category or subcategory of 
                        trade-exposed primary goods produced in that 
                        country during the most recent year for which 
                        data are available; by
                            ``(ii) the total quantity of the category 
                        or subcategory of trade-exposed primary good 
                        produced in the covered foreign country during 
                        the same calendar year.
                    ``(B) Adjustments.--The Administrator shall adjust 
                the requirement under subparagraph (A) to take into 
                account the level of economic development of the 
                covered foreign country in which the trade-exposed 
                primary goods were produced.
            ``(3) Subsequent compliance years.--For each subsequent 
        compliance year, the Administrator shall revise the 
        international reserve allowance requirement applicable to each 
        category or subcategory of imported trade-exposed primary goods 
        produced in each covered foreign country to reflect changes in 
        the factors described in paragraph (2).
            ``(4) Publication.--Not later than 90 days before the 
        beginning of each compliance year, the Administrator shall 
        publish in the Federal Register a schedule describing the 
        required number of international reserve allowances for each 
        category or subcategory of imported trade-exposed primary goods 
        produced in each covered foreign country, as calculated under 
        this subsection.
    ``(e) International Emission Allowances and Offset Credits.--A 
United States importer may satisfy up to 15 percent of its obligation 
under this section by submitting, in lieu of an international reserve 
allowance, an international emission allowance approved by the 
Administrator under section 751 or an international offset credit 
approved by the Administrator under section 752.
    ``(f) Retirement of Allowances.--The Administrator shall retire 
each international reserve allowance submitted to achieve compliance 
with this section. Treatment of international allowances and 
international offset credits submitted under this section shall be 
governed by section 753.
    ``(g) Consistency With International Agreements.--The 
Administrator, in consultation with the Secretary of State, shall 
adjust the international reserve allowance requirements established 
under this section (including the quantity of international reserve 
allowances required for each category or subcategory of trade-exposed 
primary goods produced in a covered foreign country) as the 
Administrator determines to be necessary to ensure that the United 
States complies with all applicable international agreements.
    ``(h) Final Regulations.--Not later than January 1, 2018, the 
Administrator shall promulgate such regulations as the Administrator 
determines to be necessary to carry out this section.

``SEC. 766. ADJUSTMENT OF INTERNATIONAL RESERVE ALLOWANCE REQUIREMENTS.

    ``(a) In General.--Not later than January 1, 2023, and annually 
thereafter, the President shall prepare and submit to Congress a report 
that assesses the effectiveness of the applicable international reserve 
allowance requirements under section 765 with respect to the trade-
exposed primary goods produced in each covered foreign country.
    ``(b) Inadequate Requirements.--If the President determines that an 
applicable international reserve allowance requirement is not adequate 
to achieve the purposes of this subtitle, the President, simultaneously 
with the submission of the report under subsection (a), shall--
            ``(1) adjust the requirement; or
            ``(2) take such other action as the President is authorized 
        to take by law and determines to be necessary to improve the 
        effectiveness of the requirement, in accordance with all 
        applicable international agreements.
    ``(c) Effective Date.--An adjustment under subsection (b)(1) shall 
take effect beginning on January 1 of a compliance year, as determined 
by the President.

``Subtitle H--Standards for Noncovered Facilities and Coal-Fired Power 
                                 Plants

``SEC. 771. PERFORMANCE STANDARDS FOR CERTAIN SOURCES THAT ARE NOT 
              COVERED ENTITIES.

    ``(a) Definition.--For purposes of this section, the term 
`performance standard source' means a stationary source of methane or 
nitrous oxide emissions that are not covered by the compliance 
requirements of section 712 and that exceed 10,000 carbon dioxide 
equivalents per year, including coal mines, landfills, wastewater 
treatment operations, and animal feeding operations. Such term shall 
not include sources of emissions from agricultural soil management, 
rice cultivation, field burning of agricultural residues, or management 
of forest lands.
    ``(b) List of Categories.--Not later than 90 days after the date of 
enactment of this title, the Administrator shall publish a list of all 
categories or subcategories of performance standard sources subject to 
the requirements of this section. The Administrator shall review such 
list at least once every 5 years, and shall revise the list as 
necessary.
    ``(c) Rulemaking.--Not later than 2 years after initial publication 
of the list under subsection (b), the Administrator shall issue a final 
rule for each category or subcategory of performance standard sources 
requiring such sources to operate in conformance with the standards 
established under subsection (d). Such rules shall establish compliance 
dates for each category or subcategory listed under subsection (b), 
which shall be no later than 3 years after the issuance of the rule 
under this subsection. The Administrator shall, not less often than 
every 8 years, review and, as necessary, revise the rules issued under 
this subsection, taking into account developments in practices, 
processes, and control technologies.
    ``(d) Standards.--
            ``(1) Establishment.--The rules issued under subsection (c) 
        shall establish, for each category or subcategory of 
        performance standard sources listed under subsection (b), 
        standards for the best available control technologies and 
        practices for reducing methane or nitrous oxide emissions from 
        sources in that category or subcategory.
            ``(2) Considerations.--In establishing standards under 
        paragraph (1), the Administrator shall consider--
                    ``(A) compliance costs;
                    ``(B) health and environmental impacts not 
                associated with methane and nitrous oxide emissions;
                    ``(C) energy requirements; and
                    ``(D) technologies and practices developed or used 
                outside the United States.
            ``(3) New sources.--In establishing standards under 
        paragraph (1), the Administrator may impose stricter 
        requirements for new sources than for sources in existence 
        before the issuance of the rule under subsection (c).
            ``(4) Alternative compliance threshold.--The Administrator 
        may establish an optional alternative compliance threshold for 
        a category or subcategory of performance standard sources based 
        on the volume or size of the source's operations, where such 
        alternative threshold is demonstrated to be an accurate 
        indicator of the mass of methane and nitrous oxide emissions 
        from the source and is equivalent to a 10,000 carbon dioxide 
        equivalent per year threshold.
            ``(5) Alternative means of compliance.--The Administrator 
        may approve a request by an owner or operator of a performance 
        standard source to use an alternative means of compliance with 
        the requirements for such source under the applicable rule 
        issued under subsection (c) if such alternative will achieve a 
        reduction in emissions at least equal to reductions achieved 
        under the performance standards in the applicable rule.
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to limit the Administrator's duties or authority under 
section 111 or any other section of this Act.

``SEC. 772. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.

    ``(a) Covered EGUs Defined.--For purposes of this section, the term 
`covered EGU' means an electric generating unit that--
            ``(1) has a rated capacity of 25 megawatts or more;
            ``(2) derives at least 50 percent of its annual fuel input 
        from coal, petroleum coke, or any combination of these fuels; 
        and
            ``(3) commences construction on or after January 1, 2009.
    ``(b) Standards of Emission Performance for Covered Electric 
Generating Units.--
            ``(1) Obligations of covered egus.--Each covered EGU shall 
        achieve, on the compliance schedule set forth in paragraph (2), 
        either--
                    ``(A) the capture and geological sequestration of 
                not less than 85 percent of the total carbon dioxide 
                emissions produced by the covered EGU on an annual 
                average basis; or
                    ``(B) a greater rate of capture and geological 
                sequestration as established by regulations promulgated 
                by the Administrator under subsection (c), provided 
                that such regulations were promulgated prior to 
                commencement of construction of the covered EGU.
            ``(2) Compliance schedule.--(A) Covered EGUs that commence 
        operation prior to January 1, 2020, must be in compliance with 
        the emission performance standard applicable under regulations 
        promulgated under subsection (c) by either--
                    ``(i) January 1, 2016; or
                    ``(ii) four years after the covered EGU commences 
                operation,
        whichever occurs later.
            ``(B) Any other covered EGU must be in compliance with the 
        emission performance standard on the date when it commences 
        operation except that, prior to January 1, 2025, such EGU may 
        obtain a compliance date extension of up to 18 months if the 
        owner or operator can demonstrate to the Administrator's 
        satisfaction that it is unable to meet the emission performance 
        standard because of technical infeasibility.
    ``(c) Regulations.--
            ``(1) Initial regulations.--Not later than 180 days after 
        the date of enactment of this title, the Administrator shall 
        promulgate regulations implementing the requirements of this 
        section.
            ``(2) Revised regulations.--Not later than January 1, 2012, 
        and at 5-year intervals thereafter, the Administrator shall, by 
        rule, increase the minimum rate of capture and geological 
        sequestration of carbon dioxide emissions under subsection 
        (b)(1)(A) if the Administrator determines that a greater rate 
        of capture and geological sequestration is achievable through 
        the application of the best available control technology, 
        taking into account the cost of achieving such increase, energy 
        impacts, and any health and environmental impacts not 
        associated with carbon dioxide emissions.''.

SEC. 102. CONFORMING AMENDMENTS.

    (a) Federal Enforcement.--Section 113 of the Clean Air Act (42 
U.S.C. 7413) is amended as follows:
            (1) In subsection (a)(3), by striking ``or title VI,'' and 
        inserting ``title VI, or title VII,''.
            (2) In subsection (b), by striking ``or a major stationary 
        source'' and inserting ``a major stationary source, or a 
        covered entity under title VII,'' in the material preceding 
        paragraph (1).
            (3) In paragraph (2), by striking ``or title VI'' and 
        inserting ``title VI, or title VII''.
            (4) In subsection (c)--
                    (A) in the first sentence of paragraph (1), by 
                striking ``or title VI (relating to stratospheric ozone 
                control),'' and inserting ``title VI (relating to 
                stratospheric ozone control), or title VII (relating to 
                reduction of greenhouse gas emissions),''; and
                    (B) in the first sentence of paragraph (3), by 
                striking ``or VI'' and inserting ``VI, or VII''.
            (5) In subsection (d)(1)(B), by striking ``or VI'' and 
        inserting ``VI, or VII''.
            (6) In subsection (f), in the first sentence, by striking 
        ``or VI'' and inserting ``VI, or VII''.
    (b) Inspections, Monitoring, and Entry.--Section 114(a) of the 
Clean Air Act (42 U.S.C. 7414(a)) is amended by striking ``section 
112,'' and all that follows through ``(ii)'' and inserting the 
following: ``section 112, any regulation of solid waste combustion 
under section 129, or any regulation of greenhouse gas emissions under 
title VII, (ii)''.
    (c) Administrative Proceedings and Judicial Review.--Section 307 of 
the Clean Air Act (42 U.S.C. 7607) is amended as follows:
            (1) In subsection (a), by striking ``, or section 306'' and 
        inserting ``section 306,or title VII''.
            (2) In subsection (b)(1)--
                    (A) by striking ``,,'' and inserting ``,'' in each 
                place such punctuation appears; and
                    (B) by striking ``section 120,'' in the first 
                sentence and inserting ``section 120, any final action 
                under title VII,''.
            (3) In subsection (d)(1) by amending subparagraph (S) to 
        read as follows:
                    ``(S) the promulgation or revision of any 
                regulation under title VII,''.

SEC. 103. COMPLEMENTARY POLICIES FOR HYDROFLUOROCARBONS.

    (a) National Recycling and Emission Reduction Program.--Section 608 
of the Clean Air Act (42 U.S.C. 7671g) is amended as follows:
            (1) By adding at the end the following:
    ``(d) Definition of Hydrofluorocarbon Substitute.--In this section, 
the term `hydrofluorocarbon substitute' means a hydrofluorocarbon or 
other greenhouse gas that has a global warming potential of more than 
150 and that is used in or for types of equipment, appliances, or 
processes that previously relied on class I or class II substances.''.
            (2) In subsection (a), by adding the following new 
        paragraph at the end:
            ``(4)(A) Not later than 1 year after the date of enactment 
        of this paragraph, the Administrator shall promulgate 
        regulations establishing standards and requirements regarding 
        the sale or distribution, or offer for sale and distribution in 
        interstate commerce, use, and disposal of hydrofluorocarbon 
        substitutes for class I and class II substances not covered by 
        paragraph (1), including the use, recycling, and disposal of 
        those hydrofluorocarbon substitutes during the maintenance, 
        service, repair, or disposal of appliances and industrial 
        process refrigeration equipment.
            ``(B) The standards and requirements established under 
        subparagraph (A) shall take effect not later than 1 year after 
        the date of promulgation of the regulations.''.
            (3) In subsection (b), by inserting ``and hydrofluorocarbon 
        substitutes for those substances'' after ``substances'' in the 
        matter preceding paragraph (1), by inserting ``(or 
        hydrofluorocarbon substitutes for those substances)'' after 
        ``substances'' in paragraph (1), and by inserting ``(or a 
        hydrofluorocarbon substitute for such substance)'' after 
        ``substance'' in paragraphs (2) and (3) in each place such term 
        appears.
    (b) Servicing of Motor Vehicle Air Conditioners.--Section 609 of 
the Clean Air Act (42 U.S.C. 7671h) is amended as follows:
            (1) In subsection (b), by adding at the end the following:
            ``(5) The term `hydrofluorocarbon substitute' means a 
        hydrofluorocarbon or other greenhouse gas that has a global 
        warming potential of more than 150 and that is used in or for 
        types of equipment, appliances, or processes that previously 
        relied on class I or class II substances.''.
            (2) In subsection (e)--
                    (A) by striking ``of Class I or Class II 
                Substances'' in the subsection heading; and
                    (B) by adding at the end the following: ``Effective 
                beginning January 1, 2010, it shall be unlawful for any 
                person to sell or distribute, or offer for sale or 
                distribution, in interstate commerce to any person 
                (other than a person performing service for 
                consideration on motor vehicle air-conditioning systems 
                in compliance with this section) any hydrofluorocarbon 
                substitute that is suitable for use in a motor vehicle 
                air-conditioning system and that is in a container that 
                contains less than 20 pounds of the hydrofluorocarbon 
                substitute.''.

SEC. 104. WAIVER OF PREEMPTION FOR CALIFORNIA GREENHOUSE GAS EMISSION 
              STANDARDS FOR VEHICLES.

    Section 209 of the Clean Air Act (42 U.S.C. 7543) is amended by 
adding at the end the following:
    ``(f) Waiver.--Notwithstanding subsection (b) or any other 
provision of law, the application for a waiver of preemption dated 
December 21, 2005, submitted to the Administrator pursuant to 
subsection (b) by the State of California for regulations of that State 
to control greenhouse gas emissions from motor vehicles shall be 
considered to be approved.''.

SEC. 105. LOW-CARBON FUEL STANDARD.

    (a) Definitions.--Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)(1)) is amended--
            (1) by redesignating subparagraphs (G) through (L) as 
        subparagraphs (J) through (O), respectively;
            (2) by inserting after subparagraph (F) the following:
                    ``(G) Cultivated noxious plant.--The term 
                `cultivated noxious plant' means a plant that is 
                included on--
                            ``(i) the Federal noxious weed list 
                        maintained by the Animal and Plant Health 
                        Inspection Service; or
                            ``(ii) any comparable State list.
                    ``(H) Fuel emission baseline.--The term `fuel 
                emission baseline' means the average lifecycle 
                greenhouse gas emissions per unit of energy of the 
                aggregate of all transportation fuels sold or 
                introduced into commerce in calendar year 2005, as 
                determined by the Administrator under paragraph (13).
                    ``(I) Fuel provider.--The term `fuel provider' 
                includes, as the Administrator determines to be 
                appropriate, any individual or entity that produces, 
                refines, blends, or imports any transportation fuel in 
                commerce in, or into, the United States.''; and
            (3) by striking subparagraph (O) (as redesignated by 
        paragraph (1)) and inserting the following:
                    ``(O) Transportation fuel.--The term 
                `transportation fuel' means fuel for use in motor 
                vehicles, nonroad vehicles, nonroad engines, or 
                aircraft.''.
    (b) Establishment.--Section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o)) is amended by adding at the end the following:
            ``(13) Advanced clean fuel performance standard.--
                    ``(A) Methodology and baseline.--Not later than 
                January 1, 2010, the Administrator shall, by 
                regulation--
                            ``(i) establish a methodology for use in 
                        determining the lifecycle greenhouse gas 
                        emissions per unit of energy of all 
                        transportation fuels in commerce for which the 
                        Administrator has not already established such 
                        a methodology; and
                            ``(ii) determine the fuel emission 
                        baseline.
                    ``(B) Performance standard.--Not later than January 
                1, 2010, the Administrator shall, by regulation, 
                establish a requirement applicable to transportation 
                fuel providers to reduce, on an annual average basis, 
                the average lifecycle greenhouse gas emissions per unit 
                of energy of the aggregate quantity of transportation 
                fuel produced, refined, blended, or imported by the 
                fuel provider to a level that is, to the maximum extent 
                practicable--
                            ``(i) by not later than calendar year 2011 
                        and in subsequent calendar years thereafter, at 
                        least equal to or less than the fuel emission 
                        baseline;
                            ``(ii) by not later than calendar year 
                        2012, equivalent to the difference between the 
                        fuel emission baseline and the lifecycle 
                        greenhouse gas emissions per unit of energy 
                        reduced by the volumetric renewable fuel 
                        requirements of paragraph (2)(B);
                            ``(iii) by not later than calendar year 
                        2023, at least 5 percent less than the fuel 
                        emission baseline; and
                            ``(iv) by not later than calendar year 
                        2028, at least 10 percent less than the fuel 
                        emission baseline.
                    ``(C) Prevention of air quality deterioration.--
                            ``(i) Study.--Not later than 18 months 
                        after the date of enactment of this paragraph, 
                        the Administrator shall complete a study to 
                        determine whether the greenhouse gas emission 
                        reductions required under subparagraph (B) will 
                        adversely impact air quality as a result of 
                        changes in vehicle and engine emissions of air 
                        pollutants regulated under this Act.
                            ``(ii) Considerations.--The study shall 
                        include consideration of different blend 
                        levels, types of transportation fuels, and 
                        available vehicle technologies and appropriate 
                        national, regional, and local air quality 
                        control measures.
                            ``(iii) Regulations.--Not later than 3 
                        years after the date of enactment of this 
                        paragraph, the Administrator shall either--
                                    ``(I) promulgate fuel regulations 
                                to implement appropriate measures to 
                                mitigate, to the maximum extent 
                                practicable and taking into 
                                consideration the results of the study 
                                conducted under this clause, any 
                                adverse impacts on air quality as a 
                                result of the greenhouse gas emission 
                                reductions required by this subsection; 
                                or
                                    ``(II) make a determination that no 
                                such measures are necessary.
                    ``(D) Performance standard for calendar year 2033 
                and thereafter.--For calendar year 2033, and every 5 
                years thereafter, the Administrator, in consultation 
                with the Secretary of Agriculture and the Secretary of 
                Energy, shall revise the applicable performance 
                standard under subparagraph (B) to reduce, to the 
                maximum extent practicable, the average lifecycle 
                greenhouse gas emissions per unit of energy of the 
                aggregate quantity of transportation fuel sold or 
                introduced into commerce in the United States.
                    ``(E) Revision of regulations.--In accordance with 
                the purposes of the Investing in Climate Action and 
                Protection Act, the Administrator may, as appropriate, 
                revise the regulations promulgated under subparagraphs 
                (A) and (B) as necessary to reflect or respond to 
                changes in the transportation fuel market or other 
                relevant circumstances.
                    ``(F) Method of calculation for hydrogen and 
                electricity.--In calculating under subparagraph (A)(i) 
                the lifecycle greenhouse gas emissions of hydrogen or 
                electricity (when used as a transportation fuel), the 
                Administrator shall--
                            ``(i) include emission resulting from the 
                        production of the hydrogen or electricity; and
                            ``(ii) consider the energy delivered by--
                                    ``(I) 6.4 kilowatt-hours of 
                                electricity;
                                    ``(II) 32 standard cubic feet of 
                                hydrogen; or
                                    ``(III) 1.25 gallons of liquid 
                                hydrogen,
                        to be equivalent to the energy delivered by 1 
                        gallon of ethanol.
                    ``(G) Determination of lifecycle greenhouse gas 
                emissions.--In carrying out this paragraph, the 
                Administrator shall use the best available scientific 
                and technical information to determine the lifecycle 
                greenhouse gas emissions per unit of energy of 
                transportation fuels derived from--
                            ``(i) renewable biomass;
                            ``(ii) electricity, including the entire 
                        lifecycle of the fuel;
                            ``(iii) 1 or more fossil fuels, including 
                        the entire lifecycle of the fuels; and
                            ``(iv) hydrogen, including the entire 
                        lifecycle of the fuel.
                    ``(H) Equivalent emissions.--In carrying out this 
                subparagraph, the Administrator shall consider 
                transportation fuel derived from cultivated noxious 
                plants, and transportation fuel derived from biomass 
                sources other than renewable biomass, to have emissions 
                per unit of energy equivalent to the greater of--
                            ``(i) the lifecycle greenhouse gas 
                        emissions of such transportation fuel; or
                            ``(ii) the fuel emission baseline.
                    ``(I) Election to participate.--An electricity 
                provider may elect to participate in the program under 
                this paragraph if the electricity provider provides and 
                separately tracks electricity for transportation 
                through a meter that--
                            ``(i) measures the electricity used for 
                        transportation separately from electricity used 
                        for other purposes; and
                            ``(ii) allows for load management and time-
                        of-use rates.
                    ``(J) Credits.--
                            ``(i) In general.--The regulations 
                        promulgated to carry out this paragraph shall 
                        permit fuel providers to generate credits for 
                        achieving, during a calendar year, greater 
                        reductions in lifecycle greenhouse gas 
                        emissions of the fuel provided, blended, or 
                        imported by the fuel provider than are required 
                        under subparagraph (B).
                            ``(ii) Method of calculation.--The number 
                        of credits received by a fuel provider under 
                        clause (i) for a calendar year shall be the 
                        product obtained by multiplying the aggregate 
                        quantity of fuel produced, distributed, or 
                        imported by the fuel provider during the 
                        calendar year by the difference between--
                                    ``(I) the lifecycle greenhouse gas 
                                emissions per unit of energy of that 
                                quantity of fuel; and
                                    ``(II) the maximum lifecycle 
                                greenhouse gas emissions per unit of 
                                energy of that quantity of fuel 
                                permitted for the calendar year under 
                                subparagraph (B).
                    ``(K) Compliance.--
                            ``(i) In general.--Each fuel provider 
                        subject to this paragraph shall demonstrate 
                        compliance with this paragraph, including, as 
                        necessary, through the use of credits 
                        generated, banked, or purchased.
                            ``(ii) No limitation on trading or 
                        banking.--There shall be no limit on the 
                        ability of any fuel provider to trade or bank 
                        credits pursuant to this subparagraph.
                            ``(iii) Use of banked credits.--A fuel 
                        provider may use banked credits under this 
                        subparagraph with no discount or other 
                        adjustment to the credits.
                            ``(iv) Inability to generate or purchase 
                        sufficient credits.--A fuel provider that is 
                        unable to generate or purchase sufficient 
                        credits to meet the requirements of 
                        subparagraph (B) may carry the compliance 
                        deficit forward, subject to the condition that 
                        the fuel provider, for the calendar year 
                        following the year for which the deficit is 
                        created--
                                    ``(I) achieves compliance with 
                                subparagraph (B); and
                                    ``(II) generates or purchases 
                                additional credits to offset the 
                                deficit from the preceding calendar 
                                year.
                            ``(v) Types of credits.--To encourage 
                        innovation in transportation fuels--
                                    ``(I) only credits created in the 
                                production of transportation fuels may 
                                be used for the purpose of compliance 
                                described in clause (i); and
                                    ``(II) credits created by or in 
                                other sectors, such as manufacturing, 
                                may not be used for that purpose.
                    ``(L) Impact on food production.--Not later than 18 
                months after the date of enactment of this paragraph, 
                the Administrator shall evaluate and consider 
                promulgating regulations to address any significant 
                impacts on access to, and production of, food due to 
                the sourcing and production of fuels used to comply 
                with this Act.
                    ``(M) No effect on state authority.--Nothing in 
                this paragraph affects the authority of any State to 
                establish, or to maintain in effect, any transportation 
                fuel standard that reduces greenhouse gas emissions.''.

                   TITLE II--CARBON MARKET OVERSIGHT

SEC. 201. AMENDMENT OF FEDERAL POWER ACT.

    The Federal Power Act (16 U.S.C. 791a and following) is amended by 
adding the following new part at the end thereof:

                ``PART IV--REGULATION OF CARBON MARKETS

``SEC. 401. PURPOSES.

    ``The purposes of this part are to--
            ``(1) provide for the establishment of markets for emission 
        allowances, offset credits, and derivatives based on such 
        allowances and credits (including futures and options markets), 
        through a system of effective self-regulation of trading 
        facilities, clearing systems, and market participants;
            ``(2) ensure transparency and fair competition in those 
        markets; and
            ``(3) ensure that those markets will function in a stable 
        and efficient manner so as to avoid harm to the environmental 
        objectives of title I of the Investing in Climate Action and 
        Protection Act or the United States economy.

``SEC. 402. DEFINITIONS.

    ``In this part:
            ``(1) Carbon clearing organization.--
                    ``(A) In general.--The term `carbon clearing 
                organization' means a clearinghouse, clearing 
                association, clearing corporation, or similar entity, 
                facility, system, or organization that--
                            ``(i) enables each party to an agreement, 
                        contract, or transaction involving a regulated 
                        instrument to substitute, through novation or 
                        otherwise, the credit of the organization for 
                        the credit of the parties;
                            ``(ii) arranges or provides, on a 
                        multilateral basis, for the settlement or 
                        netting of obligations resulting from 
                        agreements, contracts, or transactions 
                        involving regulated instruments executed by 
                        participants in the organization; or
                            ``(iii) otherwise provides clearing 
                        services or arrangements that mutualize or 
                        transfer among participants in the organization 
                        the credit risk arising from agreements, 
                        contracts, or transactions involving regulated 
                        instruments executed by the participants.
                    ``(B) Exclusions.--The term `carbon clearing 
                organization' does not include an entity, facility, 
                system, or organization solely because it arranges or 
                provides for--
                            ``(i) settlement, netting, or novation of 
                        obligations resulting from agreements, 
                        contracts, or transactions, on a bilateral 
                        basis and without a central counterparty; or
                            ``(ii) settlement or netting of cash 
                        payments through an interbank payment system.
            ``(2) Commission.--The term `Commission' means the Federal 
        Energy Regulatory Commission.
            ``(3) Contract of sale.--The term `contract of sale' 
        includes a sale, an agreement of sale, and an agreement to 
        sell.
            ``(4) Dealer.--The term `dealer' means an individual, 
        association, partnership, corporation, or trust that--
                    ``(A) is engaged in soliciting or in accepting 
                orders for the purchase or sale of a regulated 
                instrument on or subject to the rules of a registered 
                carbon trading facility; and
                    ``(B) in or in connection with the solicitation or 
                acceptance of such an order, accepts money, securities, 
                or property (or extends credit in lieu thereof) to 
                margin, guarantee, or secure any trade or contract that 
                results or may result therefrom.
            ``(5) Director.--The term `Director' means the Director of 
        the Office of Carbon Market Oversight.
            ``(6) Eligible contract participant.--The term `eligible 
        contract participant' has the meaning given the term in section 
        1a(12) of the Commodity Exchange Act (7 U.S.C. 1a(12)).
            ``(7) Emission allowance.--The term `emission allowance' 
        has the meaning given that term in section 700(8) of the Clean 
        Air Act.
            ``(8) Floor broker.--The term `floor broker' means any 
        person who, in or surrounding any pit, ring, post, or other 
        place provided by a registered carbon trading facility for the 
        meeting of persons similarly engaged, purchases or sells for 
        any other person a regulated instrument on or subject to the 
        rules of the trading facility.
            ``(9) Floor trader.--The term `floor trader' means any 
        person who, in or surrounding any pit, ring, post, or other 
        place provided by a registered carbon trading facility for the 
        meeting of persons similarly engaged, purchases, or sells 
        solely for the person's own account, a regulated instrument on 
        or subject to the rules of the trading facility.
            ``(10) Introducing broker.--The term `introducing broker' 
        means any person (except an individual who elects to be and is 
        registered as an associated person of a dealer) engaged in 
        soliciting or in accepting orders for the purchase or sale of a 
        regulated instrument on or subject to the rules of a registered 
        carbon trading facility, who does not accept money, securities, 
        or property (or extend credit in lieu thereof) to margin, 
        guarantee, or secure any trade or contract that results or may 
        result from such a solicitation or acceptance.
            ``(11) Member.--The term `member' means, with respect to a 
        trading facility or a carbon clearing organization, an 
        individual, association, partnership, corporation, or trust 
        owning or holding membership in, admitted to membership 
        representation on, or having trading privileges on the trading 
        facility or carbon clearing organization.
            ``(12) Offset credit.--The term `offset credit' has the 
        meaning given that term in section 700(20) of the Clean Air 
        Act.
            ``(13) Regulated allowance.--The term `regulated allowance' 
        means an emission allowance or an offset credit.
            ``(14) Regulated allowance derivative.--The term `regulated 
        allowance derivative' means an instrument that is or includes 
        an instrument--
                    ``(A) which--
                            ``(i) is of the character of, or is 
                        commonly known to the trade as, an `option', 
                        `privilege', `indemnity', `bid', `offer', 
                        `put', `call', `advance guaranty', or `decline 
                        guaranty'; or
                            ``(ii) is a contract of sale for future 
                        delivery; and
                    ``(B) the value of which, in whole or in part, is 
                directly linked to the price of a regulated allowance 
                or another regulated allowance derivative.
            ``(15) Regulated instrument.--The term `regulated 
        instrument' means a regulated allowance or a regulated 
        allowance derivative.
            ``(16) Trading facility.--The term `trading facility' means 
        a person or group of persons that constitutes, maintains, or 
        provides a physical or electronic facility or system in which 
        multiple participants have the ability to execute or trade 
        agreements, contracts, or transactions involving a regulated 
        instrument by accepting bids and offers made by other 
        participants that are open to multiple participants in the 
        facility or system.
            ``(17) United states.--The term `United States' includes 
        the territories and possessions of the United States.

``SEC. 403. OFFICE OF CARBON MARKET OVERSIGHT; JURISDICTION.

    ``(a) Establishment of Office of Carbon Market Oversight.--
            ``(1) In general.--There is established in the Federal 
        Energy Regulatory Commission an Office of Carbon Market 
        Oversight, which shall be headed by a Director for Carbon 
        Market Oversight. The position of Director for Carbon Market 
        Oversight shall be in addition to the Directors of other 
        offices at the Commission.
            ``(2) Appointment of director.--The Director for Carbon 
        Market Oversight shall be appointed by the Commission and shall 
        be an individual who is, by reason of background and experience 
        in the regulation of commodities, securities, or other 
        financial markets, especially qualified to direct a program of 
        oversight of the market in regulated instruments.
    ``(b) Administration of This Part.--The Commission, acting through 
the Director for Carbon Market Oversight, shall administer this part.
    ``(c) Exclusive Jurisdiction Over Regulated Instruments Not Subject 
to the Securities Laws.--
            ``(1) In general.--The Commission shall have exclusive 
        jurisdiction over accounts, agreements, and transactions 
        involving a regulated instrument, whether inside or outside the 
        United States, that are not subject to the jurisdiction of the 
        Securities and Exchange Commission. The preceding sentence 
        shall not supersede or limit the jurisdiction conferred on 
        courts of the United States or any State.
            ``(2) Exception.--Notwithstanding paragraph (1), nothing in 
        this part shall be construed to limit any authority of the 
        Administrator of the Environmental Protection Agency under the 
        Clean Air Act (42 U.S.C. 7401 and following).
    ``(d) Regulations.--The Commission shall promulgate regulations 
governing the implementation of this part not later than 1 year after 
the date of the enactment of this title, and shall revise the 
regulations from time to time thereafter.

``SEC. 404. REGULATION OF CARBON TRADING.

    ``(a) Limitation of Certain Activities to Entities Registered Under 
This Part.--
            ``(1) Carbon trading facility activities.--
                    ``(A) In general.--It shall be unlawful for a 
                person to offer to enter into, execute, confirm the 
                execution of, or conduct an office or a business for 
                the purpose of soliciting, accepting an order for, or 
                otherwise dealing in, an agreement, contract, or 
                transaction involving a contract for the purchase or 
                sale of a regulated instrument, unless--
                            ``(i) the transaction is conducted on or 
                        subject to the rules of a trading facility 
                        designated as a registered carbon trading 
                        facility under section 405(a);
                            ``(ii) the contract for the purchase or 
                        sale is executed or consummated by or through 
                        such a trading facility; and
                            ``(iii) the contract for the purchase or 
                        sale is evidenced by a record in writing which 
                        shows the date, the parties to the contract and 
                        their addresses, the property covered and its 
                        price, and the terms of delivery.
                    ``(B) Exception for derivative transactions between 
                eligible contract participants.--Subparagraph (A) shall 
                not apply to an agreement, contract, or transaction 
                involving only a regulated allowance derivative between 
                persons who are eligible contract participants at the 
                time at which the persons enter into the agreement, 
                contract, or transaction.
            ``(2) Broker or dealer activities.--It shall be unlawful 
        for a person to act in the capacity of an introducing broker, a 
        dealer, a floor broker, or a floor trader, in connection with 
        the purchase or sale of a regulated instrument, unless the 
        person is registered in that capacity with the Commission, and 
        the registration is not suspended, revoked, or expired.
            ``(3) Carbon clearing organization activities.--
                    ``(A) In general.--It shall be unlawful for an 
                entity, directly or indirectly, to perform the 
                functions described in section 402(1) with respect to a 
                regulated instrument, unless the entity is registered 
                with the Commission as a carbon clearing organization 
                under section 405(c), and the registration is not 
                suspended, revoked, or expired.
                    ``(B) Exception for clearing of derivative 
                transactions between eligible contract participants.--
                Subparagraph (A) shall not apply to functions performed 
                with respect to an agreement, contract, or transaction 
                involving only a regulated allowance derivative between 
                persons who are eligible contract participants at the 
                time at which the persons enter into the agreement, 
                contract, or transaction.
    ``(b) Prohibition on Price or Market Manipulation, Fraud, and False 
or Misleading Statements or Reports.--It shall be unlawful for a 
person, directly or indirectly--
            ``(1) in connection with a transaction involving a 
        regulated instrument, to--
                    ``(A) use any manipulative or deceptive device or 
                contrivance in violation of such regulations as the 
                Commission may prescribe to protect the public interest 
                or consumers;
                    ``(B) corner or attempt to corner the instrument; 
                or
                    ``(C) cheat or defraud, or attempt to cheat or 
                defraud, any other person;
            ``(2) for the purpose of creating a false or misleading 
        appearance of active trading in a regulated instrument, or a 
        false or misleading appearance with respect to the market for 
        such an instrument, to--
                    ``(A) effect any transaction in the instrument 
                which involves no change in the beneficial ownership of 
                the instrument;
                    ``(B) enter an order for the purchase of the 
                instrument, with the knowledge that an order or orders 
                of substantially the same size, at substantially the 
                same time, and at substantially the same price, for the 
                sale of any such instrument, has been or will be 
                entered by or for the same or different parties; or
                    ``(C) enter an order for the sale of the instrument 
                with the knowledge that an order or orders of 
                substantially the same size, at substantially the same 
                time, and at substantially the same price, for the 
                purchase of the instrument, has been or will be entered 
                by or for the same or different parties;
            ``(3) to deliver or cause to be delivered a knowingly 
        false, misleading, or inaccurate report concerning information 
        or conditions that affect or tend to affect the price of a 
        regulated instrument;
            ``(4) to make, or cause to be made, in an application, 
        report, or document required to be filed under this part or any 
        rule or regulation prescribed under this part, a statement 
        which is false or misleading with respect to a material fact, 
        or to omit any material fact required to be stated therein or 
        necessary to make the statements therein not misleading; or
            ``(5) to falsify, conceal, or cover up by any trick, 
        scheme, or artifice a material fact, make any false, 
        fictitious, or fraudulent statements or representations, or 
        make or use any false writing or document that contains a 
        false, fictitious, or fraudulent statement or entry, to an 
        entity registered under this part acting in furtherance of its 
        official duties under this part.
    ``(c) Prevention of Excessive Speculation.--
            ``(1) In general.--To prevent, decrease, or eliminate 
        burdens associated with excessive speculation relating to 
        regulated instruments, the Commission shall prescribe 
        regulations establishing such position or transaction 
        limitations and position accountability requirements as the 
        Commission determines to be necessary with respect to any 
        regulated instrument.
            ``(2) Inapplicability to bona fide hedging transactions and 
        positions.--The limitations and requirements prescribed under 
        paragraph (1) shall not apply to a position or transaction that 
        is a bona fide hedging position or transaction, as defined by 
        the Commission consistent with the purposes of this part.
    ``(d) Large Trader Reporting.--
            ``(1) Identification requirements for large traders.--For 
        the purpose of monitoring the effect on the markets of 
        transactions involving a substantial volume or a large fair 
        market value or exercise value and for the purpose of otherwise 
        assisting the Commission in the enforcement of this part, each 
        large trader shall--
                    ``(A) provide such information to the Commission as 
                the Commission may by regulation prescribe as necessary 
                or appropriate, identifying the large trader and all 
                accounts in or through which the large trader effects 
                such a transaction; and
                    ``(B) identify, in accordance with such regulations 
                as the Commission may prescribe as necessary or 
                appropriate, to any broker or dealer registered under 
                this part, by or through whom the large trader directly 
                or indirectly effects transactions in regulated 
                instruments, the large trader and all accounts directly 
                or indirectly maintained with the broker or dealer by 
                the large trader in or through which the transactions 
                are effected.
            ``(2) Recordkeeping and reporting requirements for brokers 
        and dealers.--
                    ``(A) Recordkeeping.--Each broker or dealer 
                registered under this part shall make and keep for 
                prescribed periods such records as the Commission, by 
                regulation, deems necessary or appropriate with respect 
                to transactions in regulated instruments that--
                            ``(i) equal or exceed the reporting 
                        activity level; and
                            ``(ii) are effected, directly or 
                        indirectly--
                                    ``(I) by or through the registered 
                                broker or dealer of a large trader;
                                    ``(II) for any person that the 
                                broker or dealer knows is a large 
                                trader; or
                                    ``(III) for any person that the 
                                broker or dealer has reason to know is 
                                a large trader on the basis of 
                                transactions effected by or through the 
                                broker or dealer.
                    ``(B) Reporting.--The records required under 
                subparagraph (A) shall be available for reporting to 
                the Commission on the morning of the day following the 
                day the transactions are effected, and shall be 
                reported to the Commission immediately on request by 
                the Director.
            ``(3) Aggregation rules.--The Commission may prescribe 
        regulations governing the manner in which transactions and 
        accounts shall be aggregated for the purpose of this 
        subsection, including aggregation on the basis of common 
        ownership or control.
            ``(4) Examination of broker and dealer records.--All 
        records required to be made and kept pursuant to this 
        subsection by brokers and dealers registered under this part, 
        with respect to transactions effected by large traders, are 
        subject at any time, or from time to time, to such reasonable 
        periodic, special, or other examinations by representatives of 
        the Commission as the Commission deems necessary or appropriate 
        in the public interest, for the protection of investors, or 
        otherwise in furtherance of the purposes of this part.
            ``(5) Factors to be considered in commission actions.--In 
        carrying out this subsection, the Commission shall take into 
        account--
                    ``(A) existing reporting systems;
                    ``(B) the costs associated with maintaining 
                information with respect to transactions effected by 
                large traders and reporting the information to the 
                Commission; and
                    ``(C) the relationship between the United States 
                and international markets in regulated instruments.
            ``(6) Exemptions.--The Commission, by regulation or order, 
        consistent with the purposes of this part, may exempt any 
        person or class of persons or any transaction or class of 
        transactions, conditionally, on specified terms and conditions, 
        or for stated periods, from the operation of this subsection 
        and the regulations prescribed under this subsection.
            ``(7) Authority of commission to limit disclosure of 
        information.--Notwithstanding any other provision of law, the 
        Commission shall not be compelled to disclose any information 
        required to be kept or reported under this subsection. Nothing 
        in this subsection shall authorize the Commission to withhold 
        information from Congress, or prevent the Commission from 
        complying with a request for information from any other Federal 
        department or agency requesting information for purposes within 
        the scope of its jurisdiction, or complying with an order of a 
        court of the United States in an action brought by the United 
        States or the Commission. For purposes of section 552 of title 
        5, United States Code, this subsection shall be considered a 
        statute described in section 552(b)(3)(B).
            ``(8) Definitions.--In this subsection:
                    ``(A) Large trader.--The term `large trader' means 
                every person who, for the person's own account or an 
                account for which the person exercises investment 
                discretion, effects transactions for the purchase or 
                sale of a regulated instrument, directly or indirectly 
                by or through a broker or dealer registered under this 
                part, in an aggregate amount equal to or in excess of 
                the identifying activity level.
                    ``(B) Identifying activity level.--The term 
                `identifying activity level' means transactions in 
                regulated instruments at or above a level of volume, 
                fair market value, or exercise value as shall be fixed 
                from time to time by the Commission by regulation, 
                specifying the time interval during which the 
                transactions shall be aggregated.
                    ``(C) Reporting activity level.--The term 
                `reporting activity level' means transactions in 
                regulated instruments at or above a level of volume, 
                fair market value, or exercise value as shall be fixed 
                from time to time by the Commission by regulation or 
                order, specifying the time interval during which the 
                transactions shall be aggregated.
                    ``(D) Person.--The term `person' means a natural 
                person, company, government, or political subdivision, 
                agency, or instrumentality of a government, and 
                includes 2 or more persons acting as a partnership, 
                limited partnership, syndicate, or other group, but 
                does not include a foreign central bank.
    ``(e) Recordkeeping; Reporting; Access to Books and Records.--
            ``(1) Members of registered entities.--Each member of an 
        entity registered under this part shall--
                    ``(A) keep books and records, and make such reports 
                as are required by the Commission, regarding the 
                transactions and positions of the member, and the 
                transactions and positions of the customer involved, in 
                regulated instruments, in such form and manner, and for 
                such period, as may be required by the Commission; and
                    ``(B) make the books and records available for 
                inspection by any representative of the Commission or 
                the Department of Justice.
            ``(2) Registered entities.--Each entity registered under 
        this part shall--
                    ``(A) maintain daily trading records (including a 
                time-stamped audit trail), that include such 
                information, in such form, and for such period as the 
                Commission may require by regulation; and
                    ``(B) make such reports from the records, at such 
                times and places, and in such form, as the Commission 
                may require by regulation to protect the public 
                interest and the interest of persons trading in 
                regulated instruments.

``SEC. 405. REGISTRATION OF CARBON TRADING FACILITIES, BROKERS, 
              DEALERS, AND CARBON CLEARING ORGANIZATIONS.

    ``(a) Carbon Trading Facilities.--
            ``(1) Application.--A trading facility may apply to the 
        Commission for designation as a registered carbon trading 
        facility by submitting to the Commission an application that 
        contains such information and commitments as the Commission may 
        require.
            ``(2) Requirements for designation.--To be designated as a 
        registered carbon trading facility, the trading facility shall 
        demonstrate to the Commission the following:
                    ``(A) Prevention of market manipulation.--The 
                trading facility is capable of preventing market 
                manipulation through market surveillance, compliance, 
                and enforcement practices and procedures, including 
                methods for conducting real-time monitoring of trading 
                and comprehensive and accurate trade reconstructions.
                    ``(B) Fair and equitable trading.--The trading 
                facility has established, and is capable of enforcing, 
                rules to ensure fair and equitable trading through the 
                trading facility, and the capacity to detect, 
                investigate, and discipline any person that violates 
                the rules.
                    ``(C) Establishment and enforcement of rules 
                governing operation of trade execution facility.--The 
                trading facility has established, and is capable of 
                enforcing, rules governing the manner of operation of 
                the trade execution facility maintained by the trading 
                facility, including the operation of any electronic 
                matching platform.
                    ``(D) Financial integrity of transactions.--The 
                trading facility has established, and is capable of 
                enforcing, rules and procedures for ensuring the 
                financial integrity of transactions entered into by or 
                through the trading facility, including the clearance 
                and settlement of the transactions.
                    ``(E) Disciplinary procedures.--The trading 
                facility has established, and is capable of enforcing 
                procedures that authorize the trading facility to 
                discipline, suspend, or expel members or market 
                participants that violate the rules of the trading 
                facility, or similar methods for performing the same 
                functions, including delegation of the functions to 
                third parties.
                    ``(F) Public access.--The trading facility is 
                capable of providing the public with access to the 
                rules, regulations, and contract specifications of the 
                trading facility.
                    ``(G) Ability to obtain information.--The trading 
                facility has established, and is capable of enforcing 
                rules that allow the trading facility to obtain any 
                necessary information to perform any of the functions 
                described in this paragraph, including the capacity to 
                carry out such international information-sharing 
                agreements as the Commission may require.
            ``(3) Maintenance of designation.--To maintain the 
        designation of a trading facility as a registered carbon 
        trading facility, the trading facility shall comply (and shall 
        have reasonable discretion in establishing the manner in which 
        it complies) with the following:
                    ``(A) Compliance with rules of the trading 
                facility.--The trading facility shall monitor and 
                enforce compliance with the rules of the trading 
                facility, including the terms and conditions of any 
                contracts to be traded on or through the trading 
                facility and any limitations on access to the trading 
                facility.
                    ``(B) Contracts not readily subject to 
                manipulation.--The trading facility shall list on the 
                trading facility only contracts that are not readily 
                susceptible to manipulation.
                    ``(C) Monitoring of trading.--The trading facility 
                shall monitor trading on or through the facility to 
                prevent manipulation, price distortion, and disruptions 
                of the delivery or cash-settlement process.
                    ``(D) Position limitations or accountability.--To 
                reduce the potential threat of market manipulation, the 
                trading facility shall adopt position limitations or 
                position accountability for speculators, where 
                necessary and appropriate.
                    ``(E) Emergency authority.--The trading facility 
                shall adopt rules to provide for the exercise of 
                emergency authority, in consultation or cooperation 
                with the Commission, where necessary and appropriate, 
                including the authority to--
                            ``(i) liquidate or transfer open positions 
                        in any contract;
                            ``(ii) suspend or curtail trading in any 
                        regulated instrument; and
                            ``(iii) require market participants to meet 
                        special margin requirements.
                    ``(F) Availability of general information.--The 
                trading facility shall make available to market 
                authorities, market participants, and the public 
                information concerning--
                            ``(i) the terms and conditions of the 
                        contracts traded on or through the trading 
                        facility; and
                            ``(ii) the mechanisms for executing 
                        transactions on or through the trading 
                        facility.
                    ``(G) Daily publication of trading information.--
                The trading facility shall make public daily 
                information on settlement prices, volume, open 
                interest, and opening and closing ranges for all 
                regulated instruments traded on the trading facility.
                    ``(H) Execution of transactions.--The trading 
                facility shall provide a competitive, open, and 
                efficient market and mechanism for executing 
                transactions on or through the trading facility.
                    ``(I) Security of trade information.--The trading 
                facility shall maintain rules and procedures to provide 
                for the recording and safe storage of all identifying 
                trade information in a manner that enables the trading 
                facility to use the information to assist the 
                prevention of customer and market abuses and provide 
                evidence of violations of the rules of the trading 
                facility.
                    ``(J) Financial integrity of contracts.--The 
                trading facility shall establish and enforce rules 
                providing for the financial integrity of any contract 
                traded on or through the trading facility (including 
                the clearance and settlement of the transactions), and 
                rules to ensure the financial integrity of introducing 
                brokers, dealers, floor brokers, and floor traders 
                doing business on or through the trading facility, and 
                the protection of customer funds.
                    ``(K) Protection of market participants.--The 
                trading facility shall establish and enforce rules to 
                protect market participants from abusive practices 
                committed by any party acting as an agent for the 
                participants.
                    ``(L) Dispute resolution.--The trading facility 
                shall establish and enforce rules regarding and provide 
                facilities for alternative dispute resolution as 
                appropriate for market participants and any market 
                intermediaries.
                    ``(M) Governance fitness standards.--The trading 
                facility shall establish and enforce appropriate 
                fitness standards for directors, members of any 
                disciplinary committee, members of the trading 
                facility, and any other person with direct access to 
                the trading facility (including any parties affiliated 
                with any of the persons described in this 
                subparagraph).
                    ``(N) Conflicts of interest.--The trading facility 
                shall establish and enforce rules to minimize conflicts 
                of interest in the decisionmaking process of the 
                trading facility and establish a process for resolving 
                any such conflict of interest.
                    ``(O) Composition of boards of mutually owned 
                trading facilities.--In the case of a mutually owned 
                trading facility, the trading facility shall ensure 
                that the composition of the governing board reflects 
                market participants.
                    ``(P) Recordkeeping.--The trading facility shall 
                maintain records of all activities related to the 
                business of the trading facility in a form and manner 
                acceptable to the Commission for a period of 5 years.
                    ``(Q) Antitrust considerations.--Unless necessary 
                or appropriate to achieve the purposes of this part, 
                the trading facility shall endeavor to avoid--
                            ``(i) adopting any rules or taking any 
                        actions that result in any unreasonable 
                        restraints of trade; or
                            ``(ii) imposing any material 
                        anticompetitive burden on trading on or through 
                        the trading facility.
    ``(b) Brokers, Dealers, and Their Associates.--The Commission may 
prescribe regulations governing--
            ``(1) the eligibility of a person to act in the capacity of 
        an introducing broker, a dealer, or a floor broker, or a floor 
        trader in the United States;
            ``(2) the registration of introducing brokers, dealers, 
        floor brokers, and floor traders with the Commission; and
            ``(3) the conduct of a person registered pursuant to 
        regulations prescribed under paragraph (2), and of a partner, 
        officer, employee, or agent of the registered person, in 
        connection with transactions involving a regulated instrument.
    ``(c) Carbon Clearing Organizations.--
            ``(1) Application.--An entity may apply to the Commission 
        for registration as a carbon clearing organization by 
        submitting to the Director an application that contains such 
        information and commitments as the Commission may require for 
        the purpose of making the determinations required for approval 
        under paragraph (2).
            ``(2) Requirements for registration.--To be registered and 
        to maintain registration as a carbon clearing organization, an 
        applicant shall demonstrate to the Commission that the 
        applicant complies (and shall have reasonable discretion in 
        establishing the manner in which it complies) with the 
        following core principles:
                    ``(A) Financial resources.--The applicant shall 
                demonstrate that the applicant has adequate financial, 
                operational, and managerial resources to discharge the 
                responsibilities of a carbon clearing organization.
                    ``(B) Participant and product eligibility.--The 
                applicant shall establish--
                            ``(i) appropriate admission and continuing 
                        eligibility standards (including appropriate 
                        minimum financial requirements) for members of 
                        and participants in the applicant; and
                            ``(ii) appropriate standards for 
                        determining eligibility of agreements, 
                        contracts, or transactions submitted to the 
                        applicant.
                    ``(C) Risk management.--The applicant shall have 
                the ability to manage the risks associated with 
                discharging the responsibilities of a carbon clearing 
                organization through the use of appropriate tools and 
                procedures.
                    ``(D) Settlement procedures.--The applicant shall 
                have the ability to--
                            ``(i) complete settlements on a timely 
                        basis under varying circumstances;
                            ``(ii) maintain an adequate record of the 
                        flow of funds associated with each transaction 
                        that the applicant clears; and
                            ``(iii) comply with the terms and 
                        conditions of any permitted netting or offset 
                        arrangements with other carbon clearing 
                        organizations.
                    ``(E) Treatment of funds.--The applicant shall have 
                standards and procedures designed to protect and ensure 
                the safety of member and participant funds.
                    ``(F) Default rules and procedures.--The applicant 
                shall have rules and procedures designed to allow for 
                efficient, fair, and safe management of events when 
                members or participants become insolvent or otherwise 
                default on their obligations to the applicant.
                    ``(G) Rule enforcement.--The applicant shall--
                            ``(i) maintain adequate arrangements and 
                        resources for the effective monitoring and 
                        enforcement of compliance with rules of the 
                        applicant and for resolution of disputes; and
                            ``(ii) have the authority and ability to 
                        discipline, limit, suspend, or terminate the 
                        activities of a member or participant for 
                        violations of rules of the applicant.
                    ``(H) System safeguards.--The applicant shall 
                demonstrate that the applicant--
                            ``(i) has established and will maintain a 
                        program of oversight and risk analysis to 
                        ensure that the automated systems of the 
                        applicant function properly and have adequate 
                        capacity and security; and
                            ``(ii) has established and will maintain 
                        emergency procedures and a plan for disaster 
                        recovery, and will periodically test backup 
                        facilities sufficient to ensure daily 
                        processing, clearing, and settlement of 
                        transactions.
                    ``(I) Reporting.--The applicant shall provide to 
                the Director all information necessary for the 
                Commission to conduct oversight of the activities of 
                the applicant.
                    ``(J) Recordkeeping.--The applicant shall maintain 
                for a period of 5 years records of all activities 
                related to the activities of the applicant as a carbon 
                clearing organization in a form and manner acceptable 
                to the Commission.
                    ``(K) Public information.--The applicant shall make 
                information concerning the rules and operating 
                procedures governing the clearing and settlement 
                systems (including default procedures) available to 
                market participants.
                    ``(L) Information-sharing.--The applicant shall--
                            ``(i) enter into and abide by the terms of 
                        all appropriate and applicable domestic and 
                        international information-sharing agreements; 
                        and
                            ``(ii) use relevant information obtained 
                        from the agreements in carrying out the risk 
                        management program of the applicant.
                    ``(M) Antitrust considerations.--Unless appropriate 
                to achieve the purposes of this part, the applicant 
                shall avoid--
                            ``(i) adopting any rule or taking any 
                        action that results in any unreasonable 
                        restraint of trade; or
                            ``(ii) imposing any material 
                        anticompetitive burden on trading on a 
                        registered carbon trading facility.

``SEC. 406. ADMINISTRATIVE ENFORCEMENT.

    ``(a) Investigations.--
            ``(1) In general.--The Commission may make such 
        investigations as the Commission deems necessary to determine 
        whether any person has violated, is violating, or is about to 
        violate this part, a regulation or order issued under this 
        part, or a rule of an entity registered under this part, or to 
        secure information which may serve as a basis for recommending 
        legislation concerning matters to which this part relates. In 
        conducting any such investigation, the Commission may request 
        the assistance of appropriate Federal agencies.
            ``(2) Publication of results.--The Commission may publish 
        the results of any such investigation and such general 
        statistical information gathered in the investigation as the 
        Commission deems of interest to the public.
            ``(3) Public disclosure of information and data.--
                    ``(A) In general.--The Commission may not publish 
                data and information that would separately disclose a 
                transaction or market position of any person, a trade 
                secret, or the names of a customer, except where the 
                disclosure is made in connection with a congressional 
                proceeding or in an administrative or judicial 
                proceeding brought under this part.
                    ``(B) Authority to withhold information.--The 
                Commission may withhold from public disclosure any data 
                or information concerning or obtained in connection 
                with any pending investigation of any person under this 
                part.
            ``(4) Disclosure of registration information to other 
        government entities.--The Commission shall provide any 
        registration information maintained by the Commission under 
        this part on any registrant on reasonable request made by any 
        department or agency of any State or any political subdivision 
        of a State. Whenever the Administrator determines that such 
        information may be appropriate for use by any department or 
        agency of a State or political subdivision of a State, the 
        Commission shall provide such information without request.
    ``(b) Review of Adverse Action by Registered Carbon Trading 
Facility.--
            ``(1) In general.--
                    ``(A) Disciplinary actions.--The Commission may, in 
                accordance with such standards and procedures as the 
                Commission deems appropriate, review a decision by a 
                registered carbon trading facility to suspend, expel, 
                otherwise discipline a member of the trading facility, 
                or deny access to the trading facility.
                    ``(B) Other actions.--On application of any person 
                who is adversely affected by any other registered 
                carbon trading facility decision, the Commission may 
                review the decision and issue such order with respect 
                to the decision as the Commission deems appropriate to 
                protect the public interest.
            ``(2) Scope of authority.--The Commission may affirm, 
        modify, set aside, or remand a trading facility decision 
        reviewed under paragraph (1), after a determination on the 
        record as to whether the decision was made in accordance with 
        the rules of the trading facility.
    ``(c) Enforcement Proceedings Against Certain Persons.--
            ``(1) Service of complaint.--If the Commission has reason 
        to believe that a person (other than a registered carbon 
        trading facility or carbon clearing organization) has violated 
        this part or a regulation or order issued under this part, the 
        Commission may serve upon the person a complaint stating the 
        charges of the Commission in that respect, which complaint 
        shall have attached or contain a notice of hearing, specifying 
        a day and place not less than 3 days after the service of the 
        complaint, requiring the person to show cause why an order 
        should not be made prohibiting the person from trading on or 
        subject to the rules of any registered carbon trading facility, 
        and directing that all such trading facilities refuse all 
        privileges to the person, until further notice of the 
        Commission and to show cause why the registration of the 
        person, if registered with the Commission in any capacity, 
        should not be suspended or revoked.
            ``(2) Investigatory powers.--
                    ``(A) In general.--For the purpose of securing 
                effective enforcement of this part, and for the purpose 
                of any investigation or proceeding under this part, the 
                Commission (except as provided in subparagraph (C)) may 
                administer oaths and affirmations, subpoena witnesses, 
                compel their attendance, take evidence, and require the 
                production of any books, papers, correspondence, 
                memoranda, or other records that the Commission deems 
                relevant or material to the inquiry.
                    ``(B) Authority to compel attendance of witnesses, 
                and production of records.--The attendance of witnesses 
                and the production of records may be required from any 
                place in the United States, any State or any foreign 
                country or jurisdiction at any designated place of 
                hearing.
                    ``(C) Effect of failure to obey subpoena.--
                            ``(i) Authority to seek court assistance.--
                        In case of contumacy by, or refusal to obey a 
                        subpoena issued to, any person, the Commission 
                        may invoke the aid of any court of the United 
                        States in the jurisdiction in which the 
                        investigation or proceeding is conducted, or 
                        where the person resides or transacts business, 
                        in requiring the attendance and testimony of 
                        witnesses and the production of books, papers, 
                        correspondence, memoranda, and other records.
                            ``(ii) Remedies.--
                                    ``(I) In general.--The court may 
                                issue an order requiring the person to 
                                appear before the Commission or an 
                                Administrative Law Judge or other 
                                officer designated by the Commission, 
                                there to produce records, if so 
                                ordered, or to give testimony touching 
                                the matter under investigation or in 
                                question.
                                    ``(II) Effect of failure to obey 
                                court order.--Any failure to obey the 
                                order of the court may be punished by 
                                the court as a contempt of the court.
            ``(3) Penalties.--
                    ``(A) Upon evidence received in a proceeding under 
                paragraph (1), the Commission may issue an order--
                            ``(i) prohibiting the person from trading 
                        on or subject to the rules of any registered 
                        carbon trading facility, and requiring all such 
                        facilities to refuse the person all privileges 
                        for such period as may be specified in the 
                        order;
                            ``(ii) if the person is registered with the 
                        Commission in any capacity, suspending, for a 
                        period of not more than 6 months, or revoking, 
                        the registration of the person;
                            ``(iii) assessing the person, in accord 
                        with the gravity of the violation, a civil 
                        penalty of not more than the greater of 
                        $100,000 or triple the monetary gain to the 
                        person for each such violation; and
                            ``(iv) requiring restitution to customers 
                        of damages proximately caused by the violation.
                    ``(B) Amount of civil penalty based on gravity of 
                violation.--In determining the amount of the money 
                penalty, if any, to be assessed under subparagraph 
                (A)(iii), the Commission shall consider the 
                appropriateness of the penalty to the gravity of the 
                violation.
                    ``(C) Notice of order.--The Commission shall send 
                notice of the order forthwith by registered mail or by 
                certified mail, or deliver the notice to the offending 
                person and the governing board of each registered 
                carbon trading facility.
            ``(4) Appeals.--A petition for review of an order issued 
        under paragraph (3) of this subsection may be filed in the 
        Court of Appeals for the District of Columbia Circuit.
    ``(d) Authority To Suspend or Revoke Registered Carbon Trading 
Facility Designation or Carbon Clearing Organization Registration.--The 
Commission may suspend for a period of not more than 6 months, or 
revoke, the designation of a trading facility as a registered carbon 
trading facility, or the registration of an entity as a carbon clearing 
organization, if, after notice and opportunity for a hearing on the 
record, the Commission finds that--
            ``(1) the trading facility or the entity, as the case may 
        be, has not complied with a requirement of section 405(a)(3), 
        or section 405(c)(2), as the case may be; or
            ``(2) a director, officer, employee, or agent of the 
        trading facility or entity, as the case may be, has violated 
        this part or a regulation or order issued under this part.
    ``(e) Cease and Desist Orders.--If the Commission finds that a 
person has violated this part or a regulation or order issued under 
this part, the Commission may, in conjunction with an order issued 
against the person under subsection (c)(1), after notice and 
opportunity for a hearing on the record, and subject to appeal as 
provided for in subsection (c)(4), issue an order directing the person 
to cease and desist from the violation.
    ``(f) Trading Suspensions; Emergency Authority.--
            ``(1) Trading suspensions.--If the Commission determines 
        that the public interest so requires, the Commission may, by 
        order, summarily suspend all trading of regulated instruments 
        on any trading facility or otherwise, for a period not 
        exceeding 90 calendar days. The action described in the 
        preceding sentence shall not take effect unless the Commission 
        notifies the President of the decision of the Commission, and 
        the President notifies the Commission that the President does 
        not disapprove of the decision.
            ``(2) Emergency orders.--
                    ``(A) In general.--The Commission, in an emergency, 
                may by order summarily take such action to alter, 
                supplement, suspend, or impose requirements or 
                restrictions with respect to any matter or action 
                subject to regulation by the Commission or an entity 
                registered under this part, as the Commission 
                determines is necessary in the public interest--
                            ``(i) to maintain or restore fair and 
                        orderly markets in regulated instruments; or
                            ``(ii) to ensure prompt, accurate, and safe 
                        clearance and settlement of transactions in 
                        regulated instruments.
                    ``(B) Effective period.--An order of the Commission 
                under this paragraph shall continue in effect for the 
                period specified by the Commission, and may be 
                extended. Except as provided in subparagraph (C), an 
                order of the Commission under this paragraph may not 
                continue in effect for more than 10 business days, 
                including extensions.
                    ``(C) Extension.--An order of the Commission under 
                this paragraph may be extended to continue in effect 
                for more than 10 business days if, at the time of the 
                extension, the Commission finds that the emergency 
                still exists and determines that the continuation of 
                the order beyond 10 business days is necessary in the 
                public interest and for the protection of investors to 
                attain an objective described in clause (i) or (ii) of 
                subparagraph (A). In no event shall an order of the 
                Commission under this paragraph continue in effect for 
                more than 30 calendar days.
                    ``(D) Exemption.--In exercising the authority 
                provided by this paragraph, the Commission shall not be 
                required to comply with section 553 of title 5, United 
                States Code.
            ``(3) Termination of emergency actions by president.--The 
        President may direct that action taken by the Commission under 
        paragraph (2) shall not continue in effect.
            ``(4) Compliance with orders.--A member of a trading 
        facility, introducing broker, dealer, floor broker, or floor 
        trader shall not effect any transaction in, or induce the 
        purchase or sale of, any regulated instrument in contravention 
        of an order of the Commission under this subsection, unless the 
        order has been stayed, modified, or set aside as provided in 
        paragraph (5) or has ceased to be effective on direction of the 
        President as provided in paragraph (3).
            ``(5) Limitations on review of orders.--An order of the 
        Commission pursuant to this subsection shall be subject to 
        review by the United States Court of Appeals for the District 
        of Columbia Circuit. Review shall be based on an examination of 
        all the information before the Commission at the time the order 
        was issued. The reviewing court shall not enter a stay, writ of 
        mandamus, or similar relief unless the court finds, after 
        notice and hearing before a panel of the court, that the 
        Commission's action is arbitrary, capricious, an abuse of 
        discretion, or otherwise not in accordance with law.
            ``(6) Emergency defined.--In this subsection, the term 
        `emergency' means--
                    ``(A) a major market disturbance characterized by 
                or constituting--
                            ``(i) sudden and excessive fluctuations of 
                        prices of regulated instruments generally, or a 
                        substantial threat thereof, that threaten fair 
                        and orderly markets; or
                            ``(ii) a substantial disruption of the safe 
                        or efficient operation of the national system 
                        for clearance and settlement of transactions in 
                        regulated instruments, or a substantial threat 
                        thereof; or
                    ``(B) a major disturbance that substantially 
                disrupts, or threatens to substantially disrupt--
                            ``(i) the functioning of markets in 
                        regulated instruments, or any significant 
                        portion or segment of the markets; or
                            ``(ii) the transmission or processing of 
                        transactions in regulated instruments.
    ``(g) Other Authority To Issue Orders.--The Commission may issue 
such other orders as may be necessary to ensure compliance with this 
part or a regulation prescribed under this part.

``SEC. 407. CIVIL JUDICIAL ENFORCEMENT.

    ``(a) In General.--If it appears to the Commission that a person 
has engaged, is engaging, or is about to engage in any act or practice 
constituting a violation of this part or a regulation or order issued 
under this part, the Commission may bring an action in the appropriate 
district court of the United States or United States court of any 
territory or other place subject to the jurisdiction of the United 
States, to enjoin the act or practice, or to enforce compliance with 
this part or a regulation or order issued under this part.
    ``(b) Forms of Relief.--
            ``(1) Injunctive relief; restraining order.--On a proper 
        showing, the court shall grant a permanent or temporary 
        injunction or issue a restraining order, without bond.
            ``(2) Civil money penalty.--
                    ``(A) In general.--The Commission may seek and the 
                court, on a proper showing, shall have jurisdiction to 
                impose on any person found in the action brought under 
                this section to have committed a violation a civil 
                penalty in an amount that is not more than the greater 
                of $100,000 or triple the monetary gain to the person 
                for the violation.
                    ``(B) Enforcement of penalty by the attorney 
                general.--If a person on whom such a penalty is imposed 
                fails to pay the penalty within the time prescribed in 
                the order of the court, the Commission may refer the 
                matter to the Attorney General who shall recover the 
                penalty by action in the appropriate United States 
                district court.

``SEC. 408. CRIMINAL ENFORCEMENT.

    ``(a) Violations Generally.--Whoever knowingly violates section 404 
or any regulation promulgated under section 404, or willfully violates 
any other provision of this part or a regulation issued under this part 
the violation of which is made unlawful or the observance of which is 
required by or under this part, shall be fined not more than $1,000,000 
(or not more than $500,000, if the violator is an individual), 
imprisoned not more than 5 years, or both, and shall pay the costs of 
prosecution.
    ``(b) Failure To Comply With Cease and Desist Order.--
            ``(1) In general.--If, after the period allowed for appeal 
        of an order issued under section 406(e) or after the affirmance 
        of such an order, a person subject to the order fails or 
        refuses to comply with the order, the person shall be--
                    ``(A) fined not more than the greater of $100,000 
                or triple the monetary gain to the person, imprisoned 
                not less than 6 months nor more than 1 year, or both; 
                or
                    ``(B) if the failure or refusal to comply involves 
                a violation referred to in subsection (a) of this 
                section, shall be subject to the penalties provided in 
                such subsection for the violation.
            ``(2) Special rule.--Each day during which a failure or 
        refusal to comply with such an order continues is deemed a 
        separate offense for purposes of paragraph (1).

``SEC. 409. MARKET REPORTS.

    ``(a) Collection and Analysis of Information.--The Commission 
shall, on a continuous basis, collect and analyze the following 
information on the functioning of the markets for regulated instruments 
established under this part:
            ``(1) The status of, and trends in, the markets, including 
        prices, trading volumes, transaction types, and trading 
        channels and mechanisms.
            ``(2) Spikes, collapses, and volatility in prices of 
        regulated instruments, and the causes therefor.
            ``(3) The relationship between the market for emission 
        allowances, offset credits, and allowance derivatives, and the 
        spot and futures markets for energy commodities, including 
        electricity.
            ``(4) Evidence of fraud or manipulation in any such market, 
        the effects on any such market of any such fraud or 
        manipulation (or threat of fraud or manipulation) that the 
        Commission has identified, and the effectiveness of corrective 
        measures undertaken by the Commission to address the fraud or 
        manipulation, or threat.
            ``(5) The economic effects of the markets, including to 
        macro- and micro-economic effects of unexpected significant 
        increases and decreases in the price of regulated instruments.
            ``(6) Any changes in the roles, activities, or strategies 
        of various market participants.
            ``(7) Regional, industrial, and consumer responses to the 
        market, and energy investment responses to the markets.
            ``(8) Any other issue related to the markets that the 
        Commission deems appropriate.
    ``(b) Quarterly Reports to the Congress.--Not later than 1 month 
after the end of each calendar quarter, the Commission shall submit to 
the President, the Committee on Energy and Commerce of the House of 
Representatives, and the Committee on Environment and Public Works of 
the Senate, and make available to the public, a report on the matters 
described in subsection (a) with respect to the quarter, including 
recommendations for any administrative or statutory measures the 
Commission considers necessary to address any threats to the 
transparency, fairness, or integrity of the markets in regulated 
instruments.

``SEC. 410. APPLICATION OF OTHER PROVISIONS.

    ``The provisions of sections 3, 306 through 308, and 313 through 
317 of this Act shall not apply to the administration or enforcement of 
this part.''.

          TITLE III--INVESTING IN AMERICA'S LOW-CARBON FUTURE

           Subtitle A--Climate Trust Tax Credits and Rebates

SEC. 301. PURPOSE.

    The purpose of this subtitle is to distribute proceeds from 
emission allowance auctions under title VII of the Clean Air Act (as 
added by section 101 of this Act) to middle- and low-income households, 
through refundable tax credits for wage earners and senior citizens and 
monthly rebates to low-income citizens, to offset any increased direct 
or indirect energy costs such households may experience as a result of 
the regulation of greenhouse gas emissions.

SEC. 302. CLIMATE TRUST TAX CREDIT FOR WORKING FAMILIES AND SENIOR 
              CITIZENS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. CLIMATE TRUST TAX CREDIT.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for the taxable year an amount equal to the energy cost increase 
attributable to carbon regulation.
    ``(b) Energy Cost Increase Attributable to Carbon Regulation.--For 
purposes of this section--
            ``(1) In general.--The energy cost increase attributable to 
        carbon regulation for any taxable year shall be an amount equal 
        to the applicable percentage of the base projected energy cost 
        increase.
            ``(2) Applicable percentage.--The applicable percentage 
        shall be determined in accordance with the following table:

 
------------------------------------------------------------------------
                                                                 The
                                                             applicable
        ``In the case of:                   With:            percentage
                                                                 is:
------------------------------------------------------------------------
An eligible individual making a   No qualifying children..          140
 joint return...................
                                  1 qualifying child......          170
                                   2 or more qualifying             200
                                   children.
 
An eligible individual not        No qualifying children..           90
 making a joint return..........
                                   1 qualifying child.....          140
                                   2 qualifying children..          170
------------------------------------------------------------------------

            ``(3) Base projected energy cost increase.--The term `base 
        projected energy cost increase' means the base projected cost 
        increase in effect under the Climate Trust Rebate Program 
        (section 303 of the Investing in Climate Action and Protection 
        Act) for the calendar in which the taxable year of the taxpayer 
        begins.
    ``(c) Limitations.--
            ``(1) Phase-in.--In the case of a taxpayer with earned 
        income for the taxable year of less than $8,000, the amount 
        allowed as a credit under subsection (a) shall not exceed the 
        amount which bears the same ratio to the amount which would be 
        so allowed as--
                    ``(A) the earned income of the taxpayer for the 
                taxable year, bears to
                    ``(B) $8,000.
            ``(2) Phase-out.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be allowed as a credit under subsection 
                (a) shall be reduced (but not below zero) by the amount 
                determined under subparagraph (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so allowed as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's adjusted gross 
                                income (or, if greater, earned income) 
                                for the taxable year, over
                                    ``(II) the applicable amount, bears 
                                to
                            ``(ii) the applicable denominator.
                    ``(C) Applicable amount; applicable numerator.--The 
                applicable amount and applicable denominator shall be 
                determined in accordance with the following table:

 
------------------------------------------------------------------------
                                                                 The
                                                    The       applicable
               ``In the case of:                 applicable  denominator
                                                 amount is:      is:
------------------------------------------------------------------------
An eligible individual making a joint return..      $70,000      $40,000
An eligible individual with one or more             $50,000      $30,000
 qualifying children and not making a joint
 return.......................................
Any other eligible individual.................      $30,000      $20,000
------------------------------------------------------------------------

    ``(d) Definitions and Special Rules.--
            ``(1) Eligible individual.--For purposes of this section--
                    ``(A) In general.--The term `eligible individual' 
                means, with respect to a taxable year, any individual 
                who--
                            ``(i) has earned income for such taxable 
                        year, and
                            ``(ii) is not a dependent for whom a 
                        deduction is allowable under section 151 to 
                        another taxpayer for any taxable year beginning 
                        in the same calendar year as such taxable year.
                    ``(B) Certain eligible individual rules made 
                applicable.--Rules similar to the rules of 
                subparagraphs (B) through (F) of section 32(c)(1) shall 
                apply.
            ``(2) Earned income qualifying child.--For purposes of this 
        section, the term `earned income' shall have the meaning given 
        such term by section 32(c).
            ``(3) Qualifying child.--For purposes of this section, the 
        term `qualifying child' shall have the meaning given such term 
        by section 24.
            ``(4) Married individuals.--In the case of an individual 
        who is married (within the meaning of section 7703), this 
        section shall apply only if a joint return is filed for the 
        taxable year under section 6103.
            ``(5) Coordination with climate trust rebate program.--
                    ``(A) In general.--The amount which would be 
                allowed as a credit to a taxpayer under subsection (a) 
                shall, before the application of subsection (c), be 
                reduced (but not below zero) by the amounts received by 
                the taxpayer under the Climate Trust Rebate Program 
                under section 303 of the Investing in Climate Action 
                and Protection Act for months beginning in the taxable 
                year.
                    ``(B) Allocation of climate trust rebates.--For 
                purposes of this subparagraph, in the case of 2 or more 
                eligible individuals who are members of the same 
                household (as defined for purposes of the Climate Trust 
                Rebate Program) with respect to which an amount is 
                received under such program for any month, for each 
                such month beginning in the taxable year such an 
                individual shall be treated as receiving an amount 
                equal to--
                            ``(i) the amount received with respect to 
                        such household for such month, divided by
                            ``(ii) the number of eligible individuals 
                        who are members of such household at the 
                        beginning of such month.
    ``(e) Senior Citizens Climate Trust Credit.--
            ``(1) In general.--In the case of an individual with 
        qualifying retirement income for the taxable year, the taxpayer 
        may elect to apply subsections (c) and (d)(1) by substituting 
        `qualifying retirement income' for `earned income'.
            ``(2) Limitation.--If the taxpayer makes the election 
        described in paragraph (1) for the taxable year, the amount 
        allowed as a credit under subsection (a) for such taxable year 
        shall not exceed an amount equal to 55 percent of the amount 
        which would (but for this paragraph) be so allowed.
            ``(3) Qualifying income.--For purposes of this section, the 
        term `qualifying retirement income' means--
                    ``(A) a distribution (other than a rollover) from--
                            ``(i) a plan described in section 401(a) 
                        which includes a trust exempt from tax under 
                        section 501(a),
                            ``(ii) an annuity plan described in section 
                        403(a),
                            ``(iii) an annuity contract described in 
                        section 403(b),
                            ``(iv) an individual retirement account 
                        described in section 408(a),
                            ``(v) an individual retirement annuity 
                        described in section 408(b),
                            ``(vi) a Roth IRA (as defined in 408A(b)),
                            ``(vii) an eligible deferred compensation 
                        plan (as defined in section 457),
                            ``(viii) a governmental plan (as defined in 
                        section 414(d)),
                            ``(ix) a trust described in section 
                        501(c)(18), or
                            ``(x) any other plan, contract, account, 
                        annuity, or trust which, at any time, has been 
                        determined by the Secretary to be such a plan, 
                        contract, account, annuity, or trust,
                    ``(B) social security benefits (within the meaning 
                of section 86(d)),
                    ``(C) any compensation or pension received under 
                chapter 11, chapter 13, or chapter 15 of title 38, 
                United States Code, and
                    ``(D) any other amount received which is in the 
                nature of a retirement benefit payment.''.
    (b) Appropriations for Refund.--Section 1324(b)(2) of title 31, 
United States Code, is amended by striking ``or 53(e)'' and inserting 
``, 53(e), or 36''.
    (c) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 36 and inserting the following 
new items:

``Sec. 36. Climate trust tax credit.
``Sec. 37. Overpayments of tax.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 303. CLIMATE TRUST REBATES FOR LOW-INCOME HOUSEHOLDS.

    (a) Definitions.--For purposes of this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency or, if the 
        President designates an alternative agency under subsection 
        (b)(1), the head of such agency.
            (2) Base projected cost increase.--The term ``base 
        projected cost increase'' means an amount equal to the 
        projected average annual increase, for a year in direct and 
        indirect energy costs for a 1-person household in the middle 
        quintile of the income scale, that results from the regulation 
        of greenhouse gas emissions under title VII of the Clean Air 
        Act (as added by section 101 of this Act), provided that each 
        quintile shall--
                    (A) be based on income adjusted for household size; 
                and
                    (B) have an equal aggregate number of individuals.
            (3) Elderly or disabled member.--The term ``elderly or 
        disabled member'' has the meaning given such term in section 3 
        of the Food Stamp Act of 1977 (7 U.S.C. 2012).
            (4) Electronic benefit transfer card.--The term 
        ``electronic benefit transfer card'' means a card that makes a 
        rebate provided under the Program accessible to a household 
        through an Electronic Benefits Transfer System.
            (5) Electronic benefit transfer system.--The term 
        ``Electronic Benefit Transfer System'' means a system by which 
        rebates provided under the Program are issued from and stored 
        in a central databank by means of electronic benefit transfer 
        cards.
            (6) Household.--The term ``household'' means--
                    (A) an individual who lives alone; or
                    (B) a group of individuals who live together.
            (7) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, American Samoa, the United States Virgin Islands, Guam, 
        or the Commonwealth of the Northern Mariana Islands.
            (8) State agency.--The term ``State agency'' means--
                    (A) an agency of a State (including the local 
                offices of such agency) that has the responsibility for 
                the administration of federally aided public assistance 
                programs in such State; or
                    (B) in a State in which such programs are operated 
                on a decentralized basis, the corresponding local 
                agencies that administer such programs.
    (b) Climate Trust Rebate Program.--
            (1) Formulation and administration of program.--The 
        Administrator of the Environmental Protection Agency, or the 
        head of such other Executive agency (as defined in section 105 
        of title 5 of the United States Code) as the President may 
        designate, shall formulate and administer in accordance with 
        this section a program to be known as the ``Climate Trust 
        Rebate Program'' (in this section referred to as the 
        ``Program'').
            (2) State participation in the program.--At the request of 
        a State, eligible households in such State shall be provided an 
        opportunity to receive compensation through the issuance of a 
        rebate in accordance with this section for increased energy 
        related costs resulting from compliance with the requirements 
        of title VII of the Clean Air Act.
            (3) Funding.--Rebates under this section shall be funded 
        from the Climate Trust Rebate Fund established under section 
        722(a) of the Clean Air Act. Such funds shall be available for 
        expenditure, without further appropriation or fiscal year 
        limitation, to carry out this section.
    (c) Eligibility.--Subject to subsection (d), a household shall be 
eligible to participate in the Program if the State agency designated 
by the chief executive officer of such State to carry out the Program 
in such State determines that--
            (1) such household contains 1 or more individuals who 
        participate in the food stamp program under the Food Stamp Act 
        of 1977 (7 U.S.C. 2011 et seq.); or
            (2) such household, without regard to whether such 
        household includes an elderly or disabled member, meets--
                    (A) the gross income standard described in section 
                5(c)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
                2014(c)(2)); and
                    (B) the financial resources limit described in 
                section 5(g) the Food Stamp Act of 1977 (7 U.S.C. 
                2014(g)).
    (d) Limitations.--The Administrator shall establish procedures to 
ensure that--
            (1) individuals who are not--
                    (A) citizens or nationals of the United States; or
                    (B) immigrants lawfully residing in the United 
                States;
        are excluded for the purpose of calculating rebates under 
        subsection (e); and
            (2) households do not receive more than 1 rebate per month.
    (e) Rebate Calculation.--
            (1) Base projected cost increase.--Not later than October 1 
        of 2009, and of each subsequent calendar year, the 
        Administrator of the Energy Information Administration shall 
        calculate and publish the base projected cost increase for the 
        following year.
            (2) Maximum rebate amount.--The maximum rebate amount for 
        each month of a calendar year shall be--
                    (A) set by the Administrator; and
                    (B) equal to \1/12\ of--
                            (i) 90 percent of the base projected cost 
                        increase for a household containing 1 
                        individual;
                            (ii) 140 percent of the base projected cost 
                        increase for a household containing 2 
                        individuals;
                            (iii) 170 percent of the base projected 
                        cost increase for a household containing 3 
                        individuals; and
                            (iv) 200 percent of the base projected cost 
                        increase for a household containing 4 or more 
                        individuals.
            (3) Monthly rebate amounts.--Eligible households shall 
        receive a monthly rebate calculated in the following manner:
                    (A) A household with gross income, as determined in 
                the manner provided in section 5 of the Food Stamp Act 
                of 1977 (7 U.S.C. 2014), that is less than 50 percent 
                of the poverty line shall receive the maximum rebate 
                amount for a household of equal size.
                    (B) A household with gross income, as determined in 
                the manner provided in section 5 of the Food Stamp Act 
                of 1977 (7 U.S.C. 2014), that is not less than 50 
                percent of the poverty line and not more than 130 
                percent of the poverty line shall receive a rebate in 
                an amount determined in accordance with a schedule of 
                phase-down rates based on household size, established 
                by the Administrator and specifying the amount by which 
                the otherwise applicable maximum rebate amount shall be 
                reduced for each dollar by which such gross income 
                exceeds 50 percent of the poverty line. The phase-down 
                rate shall be--
                            (i) for household sizes of 4 or fewer 
                        individuals, equal to the maximum rebate amount 
                        divided by 80 percent of the poverty line 
                        applicable to the particular household size 
                        involved; and
                            (ii) for household sizes of 5 or more 
                        individuals, equal to a rate determined in 
                        accordance with a methodology established by 
                        the Administrator.
                    (C) Households with gross income exceeding 130 
                percent of the poverty line shall not be eligible to 
                receive a rebate under the Program.
    (f) Schedule and Standards for Implementation of Program.--The 
Administrator shall establish by rule a schedule and standards to 
implement the Program. Such standards shall--
            (1) specify the required level of household protection 
        regarding privacy, ease of rebate use, and access to the 
        rebates under the Program;
            (2) prohibit the imposition of any fee on a household for 
        the withdrawal or expenditure of any part of such rebates;
            (3) require States participating in the Program to provide 
        such rebates to recipient households through an Electronic 
        Benefit Transfer System or by direct deposits into accounts 
        established by household members at financial institutions; and
            (4) provide for the interoperability of the Program among 
        States and among law enforcement authorities that monitor 
        compliance with the Program.
    (g) State Administration of Program.--A participating State, and 
the State agency designated under subsection (b), shall be responsible 
for--
            (1) certifying the eligibility of households to receive 
        rebates under the Program; and
            (2) issuance and control of rebates, and accountability 
        therefor.
    (h) Reimbursement of State Administrative Costs.--Subject to 
standards established by the Administrator, the Administrator shall 
reimburse each participating State as follows for administrative costs 
incurred by the designated State agency to carry out the Program:
            (1) For 3 years such costs shall be reimbursed at the rate 
        of--
                    (A) 90 percent of any automated data processing 
                improvement, and Electronic Benefit Transfer contract 
                amendment, necessary to provide rebates under the 
                Program; and
                    (B) 75 percent of such costs remaining.
            (2) For subsequent years such costs shall be reimbursed at 
        the rate of 50 percent.
    (i) Treatment of Rebates.--The amount of any rebate received under 
the Program shall not be considered to be income or resources for any 
purpose under any Federal, State, or local law, including any law 
relating to taxation (including income tax) or public assistance 
(including programs that provide health care, cash aid, child care, 
nutrition assistance, and housing assistance). No participating State 
(or political subdivision thereof) shall decrease any assistance 
otherwise provided to an individual or a household based on the fact 
that a household applied for or received a rebate under the Program.

                 Subtitle B--Low-Carbon Technology Fund

SEC. 311. PURPOSES.

    The purposes of this subtitle are--
            (1) to encourage rapid, sustained, and cost-effective 
        development, demonstration, and deployment of advanced low-
        carbon energy and efficiency technologies that substantially 
        reduce greenhouse gas emissions; and
            (2) to do so in a manner that encourages economic growth 
        and job creation in the United States, establishes the United 
        States as a global leader in low-carbon energy technology 
        innovation and production, and minimizes the cost of meeting 
        the climate protection objectives of this Act.

SEC. 312. FUNDING.

    The Secretary of Energy shall utilize the Low-Carbon Technology 
Fund established under section 722(a) of the Clean Air Act (as added by 
section 101 of this Act) to carry out a comprehensive program of 
research, development, demonstration, and deployment of low-carbon 
energy and efficiency technologies as provided in this subtitle. Funds 
deposited in the Low-Carbon Technology Fund shall be available for 
expenditure, without further appropriation or fiscal year limitation, 
to carry out this subtitle.

SEC. 313. RENEWABLE ENERGY AND ENERGY EFFICIENCY RESEARCH, DEVELOPMENT, 
              AND DEMONSTRATION.

    (a) In General.--In each of fiscal years 2010 through 2020, the 
Secretary of Energy shall use 35 percent of the funds deposited in the 
Low-Carbon Technology Fund for renewable energy and energy efficiency 
technology programs in accordance with this section. In addition to 
amounts otherwise authorized to be appropriated for the programs 
described in subsection (b), there are authorized to be appropriated 
such sums as may be necessary for carrying out such programs for fiscal 
years 2010 through 2020.
    (b) Allocation of Funds.--Funds available under this section shall 
be distributed as follows:
            (1) Renewable electricity.--\1/4\ of such funds shall be 
        used to carry out--
                    (A) renewable energy programs under section 931 of 
                the Energy Policy Act of 2005 (42 U.S.C. 16231);
                    (B) solar thermal energy storage programs under 
                section 602 of the Energy Independence and Security Act 
                of 2007 (42 U.S.C. 17171);
                    (C) photovoltaic technology demonstration programs 
                under section 607 of the Energy Independence and 
                Security Act of 2007 (42 U.S.C. 17175);
                    (D) hydrothermal and geothermal energy programs 
                under sections 613 through 616 of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 17192-
                95); and
                    (E) marine and hydrokinetic renewable energy 
                programs under sections 633 and 634 of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 17212 
                and 17213).
            (2) Electric transmission and distribution efficiency.--\1/
        8\ of such funds shall be used to carry out--
                    (A) electric transmission and distribution programs 
                under section 925 of the Energy Policy Act of 2005 (42 
                U.S.C. 16215); and
                    (B) smart grid technology programs under sections 
                1304 and 1306 of the Energy Independence and Security 
                Act of 2007 (42 U.S.C. 17384 and 17386).
            (3) Low-carbon renewable fuels and bioenergy.--\1/8\ of 
        such funds shall be used to carry out--
                    (A) biofuels and bioenergy programs under section 
                932 of the Energy Policy Act of 2005 (42 U.S.C. 16232);
                    (B) biofuels distribution and advanced biofuels 
                infrastructure programs under section 248 of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 
                17054); and
                    (C) biomass programs under section 307 of the 
                Biomass Research and Development Act of 2000 (7 U.S.C. 
                8606).
            (4) Low-emission vehicles.--\3/16\ of such funds shall be 
        used to carry out--
                    (A) advanced vehicle efficiency technologies 
                programs under section 911(a)(2)(A) of the Energy 
                Policy Act of 2005 (42 U.S.C. 16191(a)(2)(A));
                    (B) efficient hybrid and advanced diesel vehicles 
                and components programs under section 712 of the Energy 
                Policy Act of 2005 (42 U.S.C. 16062); and
                    (C) lightweight vehicle materials programs under 
                section 651 of the Energy Independence and Security Act 
                of 2007 (42 U.S.C. 17241).
            (5) Building efficiency.--\1/8\ of such funds shall be used 
        to carry out--
                    (A) the Zero-Net-Energy Commercial Buildings 
                Initiative under section 422 of the Energy Independence 
                and Security Act of 2007 (42 U.S.C. 17082); and
                    (B) building efficiency technology programs under 
                section 911(a)(2)(B) of the Energy Policy Act of 2005 
                (42 U.S.C. 16191).
            (6) Industrial efficiency.--\1/16\ of such funds shall be 
        used to carry out--
                    (A) the energy-intensive industries efficiency 
                program under section 452 of the Energy Independence 
                and Security Act of 2007 (42 U.S.C. 17111); and
                    (B) the waste energy recovery incentive grant 
                program under section 373 of the Energy Policy and 
                Conservation Act (42 U.S.C. 6343).
            (7) Energy storage technologies.--\1/16\ of such funds 
        shall be used to carry out the energy storage technology 
        programs under section 641 of the Energy Independence and 
        Security Act of 2007 (42 U.S.C. 17231).
            (8) Advanced research projects agency-energy.--\1/16\ of 
        such funds shall be used to fund programs carried out by the 
        Advanced Research Projects Agency-Energy (ARPA-E) under section 
        5012 of the America COMPETES Act of 2007 (42 U.S.C. 16538), for 
        research and development of energy technologies to achieve 
        reductions in greenhouse gas emissions.

SEC. 314. RENEWABLE ENERGY DEPLOYMENT INCENTIVES.

    (a) Renewable Electricity Production Payments.--
            (1) Allocation.--In each of fiscal years 2010 through 2030, 
        the Secretary of Energy shall use 40 percent of funds deposited 
        in the Low-Carbon Technology Fund, in accordance with this 
        subsection, to encourage deployment of renewable electricity 
        generation technologies.
            (2) Regulations.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall promulgate 
        regulations establishing a program to competitively distribute 
        funds allocated under paragraph (1) to producers of renewable 
        electricity through reverse auctions, in accordance with the 
        requirements of this subsection.
            (3) Eligibility criteria.--The Secretary shall provide 
        incentives only for the domestic production of electricity 
        from--
                    (A) generation units placed into service after the 
                date of enactment of this Act that generate electricity 
                exclusively from solar, wind, biomass, ocean (including 
                tidal, wave, current, and thermal), or geothermal 
                resources; or
                    (B) additions of new capacity or increased 
                efficiency that leads to increased generation at 
                hydroelectric projects that commenced operation prior 
                to the date of enactment of this Act.
            (4) Reverse auctions.--The Secretary shall distribute funds 
        among producers of eligible renewable electricity, on a 
        competitive basis, through reverse auctions, based on the bids 
        from producers in terms of dollars per megawatt-hour of 
        electricity generated. In deciding among bids, the Secretary 
        shall give preference to the lowest price bids, with the 
        following exceptions:
                    (A) The Secretary shall seek to ensure that the 
                categories of renewable electricity technologies 
                receiving funding under this subsection are diverse and 
                that the distribution of funding is reasonably balanced 
                among different technologies.
                    (B) The Secretary shall require each bidder to 
                notify the Secretary of any other financial assistance 
                the bidder may reasonably be anticipated to receive 
                through other Federal, State, or local government 
                programs for the same production, and shall seek to 
                avoid providing payments under this subsection where 
                the Secretary determines that such payments are likely, 
                in light of other Federal, State, or local financial 
                assistance, to provide the bidder with an unreasonably 
                high rate of return.
            (5) Form of assistance.--Funds shall be distributed under 
        this subsection pursuant to contracts to provide production 
        payments to producers of renewable electricity for each year 
        during the first 10 years of commercial service of the 
        generating unit. The Secretary shall not award new contracts 
        under this subsection after December 31, 2020.
            (6) Amount of payments.--Production payments made pursuant 
        to this subsection shall be distributed to each producer at the 
        end of each year of operation in an amount equal to the product 
        obtained by multiplying--
                    (A) the price bid by the producer per megawatt-hour 
                of electricity generated; by
                    (B) the lesser of--
                            (i) the number of megawatt-hours generated 
                        and sold by the electricity generation unit 
                        during the preceding year; and
                            (ii) the number of megawatt-hours bid for 
                        that year by the producer.
    (b) Distributed Renewable Energy Technology Rebates.--
            (1) Definition of distributed renewable energy 
        technology.--For purposes of this subsection, the term 
        ``distributed renewable energy technology'' means a technology 
        that is designed to generate electric or thermal energy from 
        solar, wind, or geothermal resources to serve energy consumers 
        at or near the site at which the technology is installed.
            (2) Allocation.--For each of fiscal years 2010 through 
        2030, the Secretary of Energy shall use 5 percent of funds 
        deposited in the Low-Carbon Technology Fund, in accordance with 
        this subsection, to encourage deployment of distributed 
        renewable energy technologies.
            (3) Regulations.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Energy shall promulgate 
        regulations establishing a program to distribute funds made 
        available under paragraph (2), in accordance with this 
        subsection, through rebates to persons or entities that 
        purchase, install, and operate distributed renewable energy 
        technologies.
            (4) Distribution of assistance.--The Secretary shall 
        distribute rebates to persons or entities that purchase, 
        install, and operate distributed renewable energy technologies 
        either--
                    (A) directly;
                    (B) through utilities or manufacturers of 
                distributed renewable energy technologies; or
                    (C) through such other entities as the Secretary of 
                Energy determines will provide a cost-effective channel 
                of distribution.
            (5) Eligibility criteria.--
                    (A) Eligible equipment.--The Secretary of Energy 
                shall provide incentives only to persons or entities 
                that, after the date of enactment of this Act, 
                purchase, install, and operate distributed renewable 
                energy technology that is--
                            (i) new equipment which uses solar energy 
                        to generate electricity, to heat or cool (or 
                        provide hot water for use in) a structure, or 
                        to provide solar process heat, except equipment 
                        that is used to generate energy for the 
                        purposes of heating a swimming pool;
                            (ii) new equipment which uses solar energy 
                        to illuminate the inside of a structure using 
                        fiber-optic distributed sunlight;
                            (iii) new equipment used to produce, 
                        distribute, or use energy derived from a 
                        geothermal deposit; or
                            (iv) a new wind turbine which has a 
                        nameplate capacity of not greater than 100 
                        kilowatts.
                    (B) Limitation.--Persons or entities shall not be 
                eligible for rebates under this section for the 
                purchase, installation, and operation of equipment for 
                which they have received, or will receive, other 
                financial incentives provided by a Federal, State, or 
                local government.
            (6) Amount of rebates.--Rebates under this section shall 
        not exceed the lesser of--
                    (A) 30 percent of cost of purchase and installation 
                of eligible equipment; or
                    (B) $5,000 per site.

SEC. 315. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND 
              DEPLOYMENT.

    (a) Allocation.--In each of fiscal years 2010 through 2020, the 
Secretary of Energy shall use 20 percent of funds deposited in the Low-
Carbon Technology Fund to encourage large-scale demonstration of carbon 
capture and geological sequestration technologies and early commercial 
deployment of such technologies at qualifying electric generating 
units.
    (b) Demonstration of Carbon Capture and Sequestration.--The 
Secretary of Energy shall use funds allocated under subsection (a) to 
complete the carbon capture and sequestration programs established 
under section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) 
and section 703 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17251). For each of fiscal years 2010 through 2013, the 
Secretary shall fund those programs at the full level of authorization 
provided by those sections.
    (c) Early Deployment Incentives for Carbon Capture and 
Sequestration.--
            (1) Allocation.--In each of fiscal years 2010 through 2020, 
        the Secretary shall use the remaining funds available under 
        subsection (a), after funding the programs under subsection 
        (b), to encourage commercial deployment of carbon capture and 
        sequestration technologies at qualifying electric generating 
        units.
            (2) Regulations.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall promulgate 
        regulations establishing a program to distribute funds 
        allocated under paragraph (1), in the form of cost-sharing 
        grants, to owners or operators of electric generating units in 
        accordance with the requirements of this subsection.
            (3) Eligibility criteria.--The Secretary shall provide 
        incentives under this section only to projects--
                    (A) at electric generating units--
                            (i) with a rated capacity of 250 megawatts 
                        or more; and
                            (ii) that derive at least 50 percent of 
                        their annual fuel input from coal, petroleum 
                        coke, or any combination of these fuels;
                    (B) that will achieve the capture and geological 
                sequestration of not less than 85 percent of the total 
                carbon dioxide emissions produced by the electric 
                generating unit on an annual average basis;
                    (C) the construction of which commences no later 
                than December 31, 2020; and
                    (D) that do not receive other Federal or State 
                financial incentives, including loans, loan guarantees, 
                grants, or tax credits.
            (4) Level of funding.--The level of assistance provided to 
        owners or operators of eligible electric generating units under 
        this subsection shall be no greater than is necessary to permit 
        recovery of reasonable incremental capital and operating costs 
        of the project that are specifically attributable to 
        implementation of carbon capture and sequestration, taking into 
        account the reduced cost of compliance with section 712 of the 
        Clean Air Act (as added by section 101 of this Act). For 
        purposes of this paragraph, reasonable incremental capital and 
        operating costs shall be determined based on the most cost-
        effective reasonably available technology for capturing and 
        sequestering carbon dioxide emissions, taking into account the 
        location of the electric generating unit and the type of fuel 
        (including coal type) used to power the unit.
            (5) Selection criteria.--As part of the regulations 
        promulgated under this subsection, the Secretary shall 
        establish objective criteria for the selection of projects, in 
        the event that there are more grant applicants that meet the 
        eligibility criteria in paragraph (3) than can be funded. Such 
        criteria shall, at minimum--
                    (A) give preference to projects that most cost-
                effectively capture and sequester carbon dioxide, so as 
                to maximize the tonnage of carbon dioxide sequestered 
                per dollar of assistance provided; and
                    (B) seek to ensure funding for projects 
                representing a diverse range of coal types, capture 
                technologies, and geographic regions.

SEC. 316. FISCAL YEARS 2021 THROUGH 2050.

    (a) Recommendations to the President and Congress.--The reports 
developed under section 703(d) and (e) of this Act shall contain 
recommendations on the allocation of funds from the Low Carbon 
Technology Fund in future fiscal years, beginning with fiscal year 
2021.
    (b) Exception.--Subsection (a) shall not apply to the first report 
delivered under section 703(d) or the first report delivered under 
section 703(e) of this Act.
    (c) Presidential Authority.--If, after the 1-year period beginning 
on the date of submission of each report to which subsection (a) 
applies, Congress has not enacted a statute codifying the 
recommendations on the allocation of funds from the Low Carbon 
Technology Fund in future fiscal years or an alternative to such 
recommendations, the President is authorized to allocate funds from 
that Fund pursuant to the recommendations for the next 5 fiscal years.

              Subtitle C--National Energy Efficiency Fund

SEC. 321. PURPOSES.

    The purposes of this subtitle are--
            (1) to encourage widespread adoption of energy efficiency 
        policies and measures, including programs to--
                    (A) increase efficiency in electricity and natural 
                gas consumption;
                    (B) encourage the adoption and enforcement of 
                robust building efficiency codes;
                    (C) develop and implement policies and projects 
                that will reduce vehicle miles traveled;
                    (D) provide weatherization and home energy 
                assistance to low-income persons; and
                    (E) encourage recycling of energy intensive 
                consumer goods; and
            (2) by means of such programs to--
                    (A) achieve substantial negative- or low-cost 
                reductions in greenhouse gas emissions;
                    (B) greatly reduce the overall cost to American 
                consumers and businesses of achieving the climate 
                protection objectives of this Act; and
                    (C) spur innovation, job creation, and economic 
                growth in the United States through investment in 
                energy efficiency technologies.

SEC. 322. DEFINITIONS.

    For purposes of this subtitle:
            (1) National energy efficiency fund.--The term ``National 
        Energy Efficiency Fund'' means the National Energy Efficiency 
        Fund established under section 722 of the Clean Air Act (as 
        added by section 101 of this Act).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (3) State.--The term ``State'' means--
                    (A) a State; and
                    (B) the District of Columbia.

SEC. 323. FUNDING.

    Funds deposited in the National Energy Efficiency Fund shall be 
available for expenditure, without further appropriation or fiscal year 
limitation, in accordance with the requirements of this subtitle.

SEC. 324. ELECTRICITY CONSUMERS.

    (a) Definition of Electricity Savings.--
            (1) In general.--The term ``electricity savings'' means a 
        net reduction in statewide end-use electricity consumption that 
        is achieved through consumer energy efficiency measures and 
        programs over a specified time period, relative to projected 
        consumption for the same time period, as determined by the 
        Secretary.
            (2) Inclusions.--The term ``electricity savings'' includes 
        savings achieved as a result of--
                    (A) electricity-saving practices; and
                    (B) installation of energy-saving technologies and 
                devices.
            (3) Exclusion.--The term ``electricity savings'' does not 
        include savings from measures that would likely be adopted in 
        the absence of consumer energy efficiency measures and 
        programs, as determined by the Secretary.
    (b) Establishment of Program.--In each of fiscal years 2011 through 
2050, the Secretary shall distribute 46 percent of the funds deposited 
in the National Energy Efficiency Fund to States, in accordance with 
this section, to encourage cost-effective investment in consumer energy 
efficiency measures and programs.
    (c) Distribution of Funds.--
            (1) In general.--The Secretary shall establish, by rule, a 
        Start-Up Formula and a Performance-Based Formula, in accordance 
        with paragraphs (2) and (3) of this subsection, to govern 
        distribution of funds under this section.
            (2) Start-up formula.--The Start-up Formula referred to in 
        paragraph (1) shall provide for the distribution of funds based 
        on the following 2 factors, each given equal weight:
                    (A) The proportion that--
                            (i) the quantity of electricity delivered 
                        to consumers within the State during the 3 
                        calendar years preceding the calendar year in 
                        which the funds are distributed; bears to
                            (ii) the total quantity of electricity 
                        delivered to consumers in the United States 
                        during those 3 calendar years.
                    (B) The proportion that--
                            (i) the population of the State in the most 
                        recent year for which data is available for all 
                        States, as determined by the Secretary; bears 
                        to
                            (ii) the population of the United States in 
                        that year.
            (3) Performance-based formula.--The Performance-Based 
        Formula referred to in paragraph (1) shall provide for the 
        distribution of funds among States in direct proportion to the 
        quantity of electricity savings actually achieved within each 
        State in the prior year as a result of consumer energy 
        efficiency measures and programs implemented in the State. Such 
        formula shall--
                    (A) define an appropriate baseline for calculating 
                electricity savings;
                    (B) define a minimum level of annual statewide 
                electricity savings, which shall not be less than 0.5 
                percent, necessary to qualify for funding under the 
                formula;
                    (C) take account of past performance in achieving 
                electricity savings so as not to penalize States that 
                have taken early action to improve efficiency; and
                    (D) maximize, to the greatest extent possible, the 
                incentive for States to achieve cost-effective 
                electricity savings.
            (4) Allocation.--The Secretary shall distribute the funds 
        available under subsection (b) in accordance with the following 
        table:


----------------------------------------------------------------------------------------------------------------
                                      Percent of Funds Allocated According  Percent of Funds Allocated According
             Fiscal Year                       to Start-Up Formula              to Performance-Based Formula
----------------------------------------------------------------------------------------------------------------
2010                                  100                                   0
----------------------------------------------------------------------------------------------------------------
2011                                  100                                   0
----------------------------------------------------------------------------------------------------------------
2012                                  50                                    50
----------------------------------------------------------------------------------------------------------------
2013                                  50                                    50
----------------------------------------------------------------------------------------------------------------
2014 through 2050                     0                                     100
----------------------------------------------------------------------------------------------------------------

    (d) Eligibility.--
            (1) In general.--In fiscal years 2012 and 2013, a State 
        shall be eligible to receive funding pursuant to both the 
        Start-Up Formula and the Performance-Based Formula.
            (2) Eligibility for funds distributed based on start-up 
        formula.--To be eligible to receive funds distributed based on 
        the Start-Up Formula, a State must adopt a binding statewide 
        electricity savings target that requires such State to achieve 
        annual electricity savings of not less than 0.25 percent in 
        2011 and 2012, and not less than 0.5 percent in 2013 and 2014.
    (e) Use of Funds.--
            (1) In general.--A State's use of funds distributed 
        pursuant to this section shall be limited to measures and 
        programs to--
                    (A) increase consumer energy efficiency;
                    (B) increase transmission and distribution 
                efficiency; and
                    (C) promote deployment of--
                            (i) renewable electricity generation;
                            (ii) advanced biofuels that meet the 
                        baseline greenhouse gas lifecycle emissions 
                        requirements as defined in section 211(o)(1)(B) 
                        of the Clean Air Act (42 U.S.C. 7545(o)(1)(B)); 
                        and
                            (iii) low-emission vehicles.
            (2) Certification and verification.--The Secretary shall 
        establish--
                    (A) guidelines specifying the types of activities 
                for which funds distributed pursuant to this section 
                may be used;
                    (B) procedures requiring States to certify that 
                funds distributed pursuant to this section are used in 
                accordance with this subsection; and
                    (C) procedures for reviewing and verifying States' 
                compliance with this subsection.
            (3) Penalties.--If the Secretary determines that a State is 
        not in compliance with this subsection, the Secretary may 
        withhold a portion of the funding, equal to twice the amount of 
        funding received by the State that was not spent in accordance 
        with the requirements in this subsection, for which such State 
        would otherwise be eligible under this section in later years.
    (f) Measurement, Monitoring, Certification, and Verification of 
Electricity Savings.--
            (1) Methods and standards.--The Secretary shall establish 
        national measurement, monitoring, certification, and 
        verification methods and standards to be used to evaluate the 
        quantity of electricity savings achieved by a State for 
        purposes of distributing funds based on the Performance-Based 
        Formula.
            (2) State requirements.--As a condition of receipt of funds 
        based on the Performance-Based Formula, States must, in 
        accordance with paragraph (1)--
                    (A) quantify and certify the quantity of 
                electricity savings achieved each year by the State;
                    (B) provide data necessary to support and verify 
                such claim, as determined by the Secretary; and
                    (C) provide third-party verification of reported 
                electricity savings.
    (g) Regulations.--Not later than January 1, 2010, the Secretary 
shall promulgate regulations governing the implementation of this 
section. The Secretary shall review and, as appropriate, revise such 
regulations at least every 5 years.

SEC. 325. NATURAL GAS CONSUMERS.

    (a) Definition of Natural Gas Savings.--
            (1) In general.--The term ``natural gas savings'' means a 
        net reduction in statewide natural gas consumption by 
        residential and commercial consumers that is achieved through 
        consumer energy efficiency measures and programs over a 
        specified time period, relative to projected consumption for 
        the same time period, as determined by the Secretary.
            (2) Inclusions.--The term ``natural gas savings'' includes 
        savings achieved as a result of--
                    (A) natural gas-saving practices; and
                    (B) installation of energy-saving technologies and 
                devices.
            (3) Exclusion.--The term ``natural gas savings'' does not 
        include savings from measures that would likely be adopted in 
        the absence of consumer energy efficiency measures and 
        programs, as determined by the Secretary.
    (b) Establishment of Program.--In each of fiscal years 2011 through 
2050, the Secretary shall distribute 8 percent of the funds deposited 
in the National Energy Efficiency Fund to States, in accordance with 
this section, to encourage cost-effective investment in consumer energy 
efficiency measures and programs.
    (c) Distribution of Funds.--
            (1) In general.--The Secretary shall establish, by rule, a 
        Start-Up Formula and a Performance-Based Formula, in accordance 
        with paragraphs (2) and (3) of this subsection, to govern 
        distribution of funds under this section.
            (2) Start-up formula.--The Start-up Formula referred to in 
        paragraph (1) shall provide for the distribution of funds based 
        on the following 2 factors, each given equal weight:
                    (A) The proportion that--
                            (i) the quantity of natural gas delivered 
                        to residential and commercial consumers within 
                        the State during the 3 calendar years preceding 
                        the calendar year in which the funds are 
                        distributed; bears to
                            (ii) the total quantity of natural gas 
                        delivered to residential and commercial 
                        consumers in the United States during those 3 
                        calendar years.
                    (B) The proportion that--
                            (i) the population of the State in the most 
                        recent year for which data is available for all 
                        States, as determined by the Secretary; bears 
                        to
                            (ii) the population of the United States in 
                        that year.
            (3) Performance-based formula.--The Performance-Based 
        Formula referred to in paragraph (1) shall provide for the 
        distribution of funds among States in direct proportion to 
        quantity of natural gas savings actually achieved within each 
        State in the prior year as a result of consumer energy 
        efficiency measures and programs implemented in the State. Such 
        formula shall--
                    (A) define an appropriate baseline for calculating 
                natural gas savings;
                    (B) define a minimum level of annual statewide 
                natural gas savings, which shall not be less than 0.5 
                percent, necessary to qualify for funding under the 
                formula;
                    (C) take account of past performance in achieving 
                natural gas savings so as not to penalize States that 
                have taken early action to improve efficiency; and
                    (D) maximize, to the greatest extent possible, the 
                incentive for States to achieve cost-effective natural 
                gas savings.
            (4) Allocation.--The Secretary shall distribute the funds 
        available under subsection (b) in accordance with the following 
        table:


----------------------------------------------------------------------------------------------------------------
                                      Percent of Funds Allocated According  Percent of Funds Allocated According
             Fiscal Year                       to Start-Up Formula              to Performance-Based Formula
----------------------------------------------------------------------------------------------------------------
2010                                  100                                   0
----------------------------------------------------------------------------------------------------------------
2011                                  100                                   0
----------------------------------------------------------------------------------------------------------------
2012                                  50                                    50
----------------------------------------------------------------------------------------------------------------
2013                                  50                                    50
----------------------------------------------------------------------------------------------------------------
2014 through 2050                     0                                     100
----------------------------------------------------------------------------------------------------------------

    (d) Eligibility.--
            (1) In general.--In fiscal years 2012 and 2013, a State 
        shall be eligible to receive funding pursuant to both the 
        Start-Up Formula and the Performance-Based Formula.
            (2) Eligibility for funds distributed based on start-up 
        formula.--To be eligible to receive funds distributed based on 
        the Start-Up Formula, a State must adopt a binding statewide 
        natural gas savings target that requires such State to achieve 
        annual natural gas savings of not less than 0.25 percent of the 
        quantity of natural gas delivered to residential and commercial 
        consumers in the State in 2011 and 2012, and not less than 0.5 
        percent in 2013 and 2014.
    (e) Use of Funds.--
            (1) In general.--A State's use of funds distributed 
        pursuant to this section shall be limited to measures and 
        programs described in section 324(e)(1).
            (2) Certification and verification.--The Secretary shall 
        establish--
                    (A) guidelines specifying the types of activities 
                for which funds distributed pursuant to this section 
                may be used;
                    (B) procedures requiring States to certify that 
                funds distributed pursuant to this section are used in 
                accordance with this subsection; and
                    (C) procedures for reviewing and verifying States' 
                compliance with this subsection.
            (3) Penalties.--If the Secretary determines that a State is 
        not in compliance with this subsection, the Secretary may 
        withhold a portion of the funding, equal to twice the amount of 
        funding received by the State that was not spent in accordance 
        with the requirements in this subsection, for which such State 
        would otherwise be eligible under this section in later years.
    (f) Measurement, Monitoring, Certification, and Verification of 
Natural Gas Savings.--
            (1) Methods and standards.--The Secretary shall establish 
        national measurement, monitoring, certification, and 
        verification methods and standards to be used to evaluate the 
        quantity of natural gas savings achieved by a State for 
        purposes of distributing funds based on the Performance-Based 
        Formula.
            (2) State requirements.--As a condition of receipt of funds 
        based on the Performance-Based Formula, States must, in 
        accordance with paragraph (1)--
                    (A) quantify and certify the quantity of natural 
                gas savings achieved each year by the State;
                    (B) provide data necessary to support and verify 
                such claim, as determined by the Secretary; and
                    (C) provide third-party verification of reported 
                natural gas savings.
    (g) Regulations.--Not later than January 1, 2010, the Secretary 
shall promulgate regulations governing the implementation of this 
section. The Secretary shall review and, as appropriate, revise such 
regulations at least every 5 years.

SEC. 326. BUILDING EFFICIENCY.

    (a) In General.--In each of fiscal years 2010 through 2050, the 
Secretary shall distribute 12 percent of the funds deposited in the 
National Energy Efficiency Fund to States to encourage adoption and 
enforcement of statewide commercial and residential building efficiency 
codes.
    (b) Distribution of Funds.--Not later than January 1, 2010, the 
Secretary shall promulgate regulations governing distribution of funds 
under this section. Such regulations shall--
            (1) provide that a State shall qualify for receipt of funds 
        under this section only if such State is in compliance with 
        section 304(c) of the Energy Conservation and Production Act 
        (as amended by section 601 of this Act);
            (2) establish a performance-based formula for distribution 
        of funding under this section that will reward States that 
        adopt and effectively enforce statewide building efficiency 
        codes that achieve greater energy savings than those required 
        under section 304(c) of the Energy Conservation and Production 
        Act (as amended by section 601 of this Act), using multiple 
        tiers of energy savings performance; and
            (3) establish a program for periodic review and 
        verification of State enforcement of building efficiency codes 
        to ensure the energy savings objectives of the program are 
        being met.
    (c) Periodic Updating.--The Secretary shall review and, as 
appropriate, revise the regulations adopted under subsection (b) at 
least every 5 years. Any revised regulations shall adhere to the 
requirements set forth in paragraphs (1) through (3) of subsection (b).

SEC. 327. SMART GROWTH AND MASS TRANSIT.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency or, if the 
        President designates an alternative agency under subsection 
        (b), the head of such agency.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        State or an eligible unit of local government.
            (3) Eligible unit of local government.--The term ``eligible 
        unit of local government'' means--
                    (A) a city with a population of at least 35,000; or
                    (B) a county with a population of at least 200,000.
            (4) VMT reduction plan.--The term ``VMT reduction plan'' 
        means a comprehensive plan to reduce vehicle miles traveled 
        within a jurisdiction, developed pursuant to guidelines issued 
        by the Administrator under subsection (d) of this section.
    (b) Establishment of Program.--In each of fiscal years 2010 through 
2050, the Administrator, or the head of such other Executive agency (as 
defined in section 105 of title 5, United States Code) as the President 
may designate, shall distribute 20 percent of the funds deposited in 
the National Energy Efficiency Fund to eligible entities in the form of 
grants to support the development and implementation of strategies to 
reduce vehicle miles traveled within their respective jurisdictions.
    (c) Allocation of Funds.--Of amounts made available to provide 
grants under this section for each fiscal year, the Administrator shall 
allocate--
            (1) 70 percent to eligible units of local government; and
            (2) 30 percent to States.
    (d) Guidelines for VMT Reduction Plans and Grant Proposals.--Not 
later than 18 months after the date of enactment of this Act, the 
Administrator shall promulgate guidelines for the development, by 
eligible units of local government and by States, of--
            (1) VMT reduction plans for the relevant jurisdiction; and
            (2) proposals to use funds provided under this section for 
        the implementation of one or more elements of such a plan.
    (e) Planning Grants.--The Administrator is authorized to make 
initial grants to eligible entities to support the development of VMT 
reduction plans and grant proposals in accordance with the guidelines 
issued under subsection (d), including through the retention of 
technical consultants.
    (f) Implementation Grants.--
            (1) In general.--The Administrator shall award grants, on a 
        competitive basis, to eligible entities to support the 
        implementation of policies, measures, and projects that will 
        substantially reduce vehicle miles traveled within the relevant 
        jurisdiction.
            (2) Requirements.--
                    (A) In general.--The Administrator shall not 
                provide to an eligible entity any grant under this 
                section until the eligible entity has submitted a VMT 
                reduction plan and a grant proposal that satisfy the 
                requirements of the guidelines established under 
                subsection (d), and the Administrator has approved such 
                plan and such proposal under this subsection.
                    (B) Approval by administrator.--
                            (i) In general.--The Administrator shall 
                        approve or disapprove a VMT reduction plan or 
                        grant proposal submitted under this subsection 
                        by not later than 180 days after the date of 
                        submission of the VMT reduction plan and grant 
                        proposal.
                            (ii) Disapproval.--If the Administrator 
                        disapproves a VMT reduction plan or grant 
                        proposal, the Administrator shall notify the 
                        eligible entity of the reasons for the 
                        disapproval and the eligible entity may revise 
                        and resubmit the plan or proposal for approval.
            (3) Selection criteria.--In awarding grants under this 
        subsection, the Administrator shall seek to maximize the 
        reduction in vehicle miles traveled achieved per dollar of 
        assistance provided.
            (4) Use of funds.--Implementation grants provided under 
        this section may be used to implement any program or project 
        that the Administrator determines is likely to result in 
        substantial reductions in vehicle miles traveled in the 
        relevant jurisdiction, including--
                    (A) efforts to increase mass transit service and 
                ridership, including by adding new mass transit 
                systems;
                    (B) promotion of transit-oriented and mixed-infill 
                development, including through the updating of relevant 
                zoning or other regulations;
                    (C) construction of bicycle and pedestrian 
                infrastructure; and
                    (D) programs to promote telecommuting or satellite 
                work centers.
    (g) Limitations.--The Administrator is authorized to establish, by 
regulation, appropriate limitations on the proportion of planning 
grants under subsection (e) or implementation grants under subsection 
(f) that can be used for administrative expenses, revolving loan funds, 
or subgrants to other governmental or nongovernmental entities.
    (h) Review and Evaluation.--
            (1) In general.--The Administrator may review and evaluate 
        the administration of use of any grant awarded under this 
        section, including by conducting an audit, as the Administrator 
        determines to be appropriate.
            (2) Withholding of funds.--The Administrator may withhold 
        from an eligible entity any portion of a grant to be provided 
        to the eligible entity under the program if the Administrator 
        determines that the eligible entity has failed to achieve 
        compliance with any applicable guideline of the Administrator 
        relating to the program established by this section, including 
        the misuse of misappropriation of funds provided under this 
        section.

SEC. 328. WEATHERIZATION ASSISTANCE PROGRAM AND LOW-INCOME HOME ENERGY 
              ASSISTANCE PROGRAM.

    (a) Weatherization Assistance Program.--In each of fiscal years 
2010 through 2050, the Secretary shall use 5 percent of the funds 
deposited in the National Energy Efficiency Fund for the Weatherization 
Assistance Program for Low-Income Persons established under part A of 
title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 
et seq.).
    (b) Low-Income Home Energy Assistance Program.--In each of fiscal 
years 2010 through 2050, the Secretary of Health and Human Services 
shall use 5 percent of the funds deposited in the National Energy 
Efficiency Fund for the Low-Income Home Energy Assistance Program 
established under the Low Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.).

SEC. 329. RECYCLING.

    (a) Definitions.--For purposes of this section:
            (1) Beverage.--The term ``beverage'' means water, mineral 
        water, soda water, flavored water, sports drinks, juice, iced 
        tea, wine cooler, beer or other malt beverage, or a carbonated 
        nonalcoholic beverage of any variety in liquid form intended 
        for human consumption, but does not include milk or other dairy 
        products or dairy-derived products.
            (2) Beverage container.--The term ``beverage container'' 
        means a container constructed of metal, glass, plastic, or some 
        combination of these materials and having a capacity of up to 
        one gallon of liquid and which is or has been sealed and used 
        to contain a beverage for sale in interstate commerce.
    (b) Establishment of Program.--In each of fiscal years 2010 through 
2050, the Secretary shall distribute 4 percent of the funds deposited 
in the National Energy Efficiency Fund to States that adopt and enforce 
statewide programs for the recycling of beverage containers.
    (c) Distribution of Funds.--Not later than January 1, 2010, the 
Secretary shall promulgate regulations governing distribution of funds 
under this section. Such regulations shall at a minimum--
            (1) provide that a State shall qualify for receipt of funds 
        under this section only if such State's recycling programs 
        achieve a rate of recycling of at least 60 percent of the 
        beverage containers sold within the State each year;
            (2) establish a performance-based formula for distribution 
        of funding under this section that will reward States that 
        adopt and effectively enforce statewide recycling programs for 
        beverage containers that achieve greater rates of recycling 
        than are required under paragraph (1); and
            (3) establish a program for periodic review and 
        verification of State programs to ensure that claimed recycling 
        rates are being achieved in practice.
    (d) Periodic Updating.--The Secretary shall review and, as 
appropriate, revise the regulations adopted under subsection (c) at 
least every 5 years. Any revised regulations shall adhere to the 
requirements set forth in paragraphs (1) through (3) of subsection (c).

            Subtitle D--Agriculture and Forestry Carbon Fund

SEC. 331. PURPOSE.

    The purpose of this subtitle is to achieve real, verifiable, 
additional, permanent, and enforceable increases in carbon 
sequestration by, and reductions in greenhouse emissions from, 
agriculture and forest management activities within the United States 
through--
            (1) the establishment of a program to provide financial 
        incentives to undertake projects that achieve these objectives; 
        and
            (2) the implementation of coordinated research, education, 
        and outreach initiatives in support of such program.

SEC. 332. DEFINITIONS.

    In this subtitle--
            (1) Agriculture and forestry carbon fund.--The term 
        ``Agriculture and Forestry Carbon Fund'' means the Agriculture 
        and Forestry Carbon Fund established under section 722 of the 
        Clean Air Act (as added by section 101 of this Act).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 333. FUNDING.

    (a) In General.--Funds deposited in the Agriculture and Forestry 
Carbon Fund shall be available for expenditure, without further 
appropriation or fiscal year limitation, to carry out this subtitle.
    (b) Limitation.--The Secretary shall ensure that not less than 99 
percent of the expenditures under this subtitle shall be dedicated to 
the incentive program under section 335.

SEC. 334. AGRICULTURAL AND FORESTRY GREENHOUSE GAS MANAGEMENT RESEARCH.

    (a) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary, in consultation with scientific and 
agricultural and forestry experts, shall prepare and submit to the 
President and Congress a report that describes the status of research 
on agricultural and forestry greenhouse gas management, including a 
description of--
            (1) research on soil carbon sequestration and other 
        agricultural and forestry greenhouse gas management that has 
        been carried out;
            (2) information on techniques to measure and monitor 
        increases in biological sequestration by, and reductions in 
        greenhouse emissions from, agriculture and forest management 
        activities;
            (3) information on large-scale observation and monitoring 
        of greenhouse gas emissions from and biological sequestration 
        by the agriculture and forestry sectors;
            (4) any further research that is necessary;
            (5) the proposed priority for further research; and
            (6) the most appropriate approaches for conducting the 
        further research.
    (b) Research.--After the date of submission of the report required 
under subsection (a), the President and the Secretary (in collaboration 
with the member institutions of higher education of the Consortium for 
Agricultural Soil Mitigation of Greenhouse Gases, other institutions of 
higher education, and research entities) shall initiate a program to 
conduct any further research on agricultural and forestry greenhouse 
gas management that is necessary.

SEC. 335. INCENTIVE PROGRAM.

    (a) Authorization.--In each of fiscal years 2010 through 2050, the 
Secretary shall use the funds deposited in the Agriculture and Forestry 
Carbon Fund to provide incentive payments to entities that carry out 
projects in the United States that meet the criteria described in this 
section.
    (b) Establishment of Program.--
            (1) Regulations.--Not later than January 1, 2010, the 
        Secretary shall, in consultation with the Administrator, 
        promulgate regulations establishing a program to provide 
        assistance to entities that carry out projects, within eligible 
        project types under subsections (c) and (d), that achieve real, 
        verifiable, additional, permanent, and enforceable increases in 
        biological sequestration by, and reductions in greenhouse gas 
        emissions from, agriculture and forest management activities 
        within the United States.
            (2) Requirements.--In designing the program under paragraph 
        (1), the Secretary shall--
                    (A) provide for the implementation of the 
                requirements of this section;
                    (B) take into account the findings of the report 
                prepared under section 334(a);
                    (C) integrate the program, as appropriate, with 
                existing Natural Resources Conservation Service and 
                Forest Service assistance programs, provided that funds 
                distributed under this section shall not be substituted 
                for, or otherwise used as a basis for reducing, funding 
                authorized or appropriated to be provided under such 
                existing programs;
                    (D) seek to maximize the reduction of greenhouse 
                gas emissions and increases in sequestration per dollar 
                of assistance provided; and
                    (E) incorporate any environmental safeguards the 
                Administrator determines necessary to ensure that no 
                significant environmental degradation results from 
                projects that receive assistance under this section.
    (c) Eligible Project Types.--The types of projects eligible for 
assistance under this section shall be limited to--
            (1) cropland and rangeland management practices that reduce 
        greenhouse gas emissions (other than emissions from the 
        combustion of fossil fuels) or increase biological 
        sequestration, including--
                    (A) altered tillage practices;
                    (B) winter cover cropping, continuous cropping, and 
                other means to increase biomass returned to soil in 
                lieu of planting followed by fallowing;
                    (C) conversion of cropland to rangeland or 
                grassland, on the condition that the land has been in 
                nonforest use for at least 10 years before the date of 
                initiation of the project;
                    (D) reduction of nitrogen fertilizer use or 
                increase in nitrogen use efficiency;
                    (E) reduction in the frequency and duration of 
                flooding of rice paddies; and
                    (F) reduction in carbon emissions from organic 
                soils;
            (2) forest management practices that result in an increase 
        in forest stand volume; and
            (3) other activities that the Secretary determines, in 
        consultation with the Administrator, will result in net 
        sequestration of carbon in wetlands or other nonforest natural 
        lands.
    (d) Excluded Activities.--The Secretary, in consultation with the 
Administrator, shall ensure that no assistance shall be provided under 
this section for--
            (1) any activity eligible to receive offset credits under 
        section 742 of the Clean Air Act (as added by section 101 of 
        this Act); or
            (2) any activity that is required by or undertaken to 
        comply with any law, including any regulation.
    (e) Measurement, Monitoring, and Verification Protocols.--
            (1) In general.--The Secretary shall, in consultation with 
        the Administrator and taking into account the report developed 
        under section 334(a), develop measurement, monitoring, and 
        verification protocols and tools for use by applicants and by 
        the Secretary in administering this program.
            (2) Requirements.--Such protocols and tools shall be 
        designed to ensure that increases in sequestration or 
        reductions in emissions reported by entities are accurate, 
        real, verifiable, additional, permanent, and enforceable.
            (3) Acquisition of new data and review of methods.--The 
        Secretary shall establish a comprehensive field sampling 
        program to improve the scientific bases on which the 
        standardized tools and methods developed under this section are 
        based.
            (4) Updating.--The Secretary shall review, and revise if 
        necessary, such protocols every five years, taking into account 
        research performed under this subsection, section 334(b), and 
        the reports prepared by the National Academy of Sciences 
        pursuant to title VII of this Act.
    (f) Environmental Considerations.--
            (1) Coordination to minimize negative effects.--In 
        designing and implementing the program established under this 
        section, the Secretary, in consultation with the Administrator, 
        shall act to avoid or minimize, to the maximum extent 
        practicable, adverse effects on human health or the environment 
        resulting from projects or activities receiving support under 
        this section.
            (2) Use of native plant species.--Not later than January 1, 
        2010, the Secretary shall promulgate regulations for the 
        selection, use, and storage of native and nonnative plant 
        materials using assistance provided under this section--
                    (A) to ensure native species are given primary 
                consideration in projects receiving assistance under 
                this section, in accordance with applicable Department 
                of Agriculture guidance for the use of native plant 
                materials;
                    (B) to prohibit the use of federally designated or 
                State-designated noxious weeds; and
                    (C) to prohibit the use of a species listed by a 
                regional or State invasive plant council within the 
                applicable region or State.

SEC. 336. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR AGRICULTURAL 
              PRODUCERS AND FORESTERS.

    (a) Establishment.--The Secretary, 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 this Act to earn new revenue.
    (b) Components.--The initiative under this section--
            (1) 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--
                    (A) opportunities to receive assistance under this 
                subtitle and related application, certification, 
                measurement, monitoring, and verification protocols, 
                procedures, tools, and requirements;
                    (B) opportunities to earn offset credits under 
                subtitle E of title VII of the Clean Air Act (as added 
                by section 101 of this Act) and related initiation, 
                measurement, and verification protocols, procedures, 
                tools, and requirements; and
                    (C) local, regional, and national databases and 
                aggregation networks to facilitate achievement, 
                measurement, registration, and sales of offsets;
            (2) shall provide--
                    (A) outreach materials, including the handbook 
                published under subsection (c), to interested parties;
                    (B) workshops; and
                    (C) technical assistance; and
            (3) 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).
    (c) Handbook.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Administrator and after an opportunity for public comment, 
        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--
                    (A) earning assistance under this subtitle; and
                    (B) securing issuance of and marketing offset 
                credits under subtitle E of title VII of the Clean Air 
                Act (as added by section 101 of this Act).
            (2) Distribution.--The Secretary shall ensure, to the 
        maximum extent practicable, that the handbook--
                    (A) is made available through the Internet and in 
                other electronic media;
                    (B) includes, with respect to the electronic form 
                of the handbook described in subparagraph (A), 
                electronic forms and calculation tools to facilitate 
                the offset credit approval process under subtitle E of 
                title VII of the Clean Air Act (as added by section 101 
                of this Act); and
                    (C) is distributed widely through land-grant 
                colleges and universities and other appropriate 
                institutions.

    Subtitle E--Green Jobs Training and Worker Transition Assistance

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 341. PURPOSES.

    The purposes of this subtitle are--
            (1) to support programs that provide worker training for 
        high-quality jobs in the growing renewable energy and energy 
        efficiency industries; and
            (2) to provide adjustment assistance, in the form of income 
        support, training, assistance in purchasing health care 
        insurance, and job placement and relocation assistance, to any 
        workers laid off as a result of the United States transition to 
        a low-carbon economy.

SEC. 342. DEFINITIONS.

    In this subtitle:
            (1) Adversely affected employment.--The term ``adversely 
        affected employment'' means employment in a firm or appropriate 
        subdivision of a firm, if workers of such firm or subdivision 
        are eligible to apply for adjustment assistance under this 
        subtitle.
            (2) Adversely affected worker.--The term ``adversely 
        affected worker'' means an individual who, because of lack of 
        work in adversely affected employment--
                    (A) has been totally separated or partially 
                separated from adversely affected employment, or
                    (B) has been totally separated from employment with 
                the firm in a subdivision of which adversely affected 
                employment exists.
            (3) Average weekly wage.--
                    (A) In general.--The term ``average weekly wage'' 
                means one-thirteenth of the total wages paid to an 
                individual in the high calendar quarter.
                    (B) Other definitions.--In this paragraph:
                            (i) High calendar quarter.--The term ``high 
                        calendar quarter'' means the calendar quarter 
                        in which the individual's total wages were 
                        highest among the first 4 of the last 5 
                        completed calendar quarters immediately before 
                        the calendar quarter in which occurs the week 
                        with respect to which the computation is made. 
                        Such week shall be the week in which total 
                        separation from adversely affected employment 
                        occurred, or, in cases in which partial 
                        separation from adversely affected employment 
                        is claimed, an appropriate week, as defined in 
                        regulations prescribed by the Secretary.
                            (ii) Calendar quarter.--The term ``calendar 
                        quarter'' means any 3-month period beginning on 
                        January 1, April 1, July 1, or October 1 of a 
                        calendar year.
            (4) Climate change worker transition fund.--The term 
        ``Climate Change Worker Transition Fund'' means the Climate 
        Change Worker Transition Fund established under section 722 of 
        the Clean Air Act (as added by section 101 of this Act).
            (5) Partial separation; partially separated.--
                    (A) In general.--The term ``partial separation'' or 
                ``partially separated'' means, with respect to an 
                individual who has not been totally separated, that--
                            (i) the individual's hours of work have 
                        been reduced to 80 percent or less of the 
                        individual's average weekly hours in adversely 
                        affected employment, and
                            (ii) the individual's wages have been 
                        reduced to 80 percent or less of the 
                        individual's average weekly wage in adversely 
                        affected employment.
                    (B) Average weekly hours.--In this paragraph, the 
                term ``average weekly hours'' means the average hours 
                worked by the individual (excluding overtime) in the 
                employment from which he has been or claims to have 
                been separated in the 52 weeks (excluding weeks during 
                which the individual was sick or on vacation) preceding 
                the week specified in the last sentence of paragraph 
                (3)(B)(i) of this section.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (7) State; united states.--The term ``State'' means any of 
        the several States, the District of Columbia, the Commonwealth 
        of Puerto Rico, American Samoa, the United States Virgin 
        Islands, Guam, or the Commonwealth of the Northern Mariana 
        Islands. The term ``United States'', when used in the 
        geographical sense, includes each of the territories identified 
        in the preceding sentence.
            (8) State agency.--The term ``State agency'' means the 
        agency of the State which administers the State law.
            (9) State law.--The term ``State law'' means the 
        unemployment compensation law of the State, approved by the 
        Secretary of Labor under section 3304 of the Internal Revenue 
        Code of 1986.
            (10) Total separation; totally separated.--The term ``total 
        separation'' or ``totally separated'' means, with respect to an 
        individual, the layoff or severance of the individual from 
        employment with a firm in which, or in a subdivision of which, 
        adversely affected employment exists.
            (11) Unemployment compensation benefit period.--
                    (A) In general.--The term ``unemployment 
                compensation benefit period'' means, with respect to an 
                individual--
                            (i) the benefit year and any ensuing 
                        period, as determined under applicable State 
                        law, during which the individual is eligible 
                        for regular compensation, additional 
                        compensation, or extended compensation, or
                            (ii) the equivalent to such a benefit year 
                        or ensuing period provided for under the 
                        applicable Federal unemployment insurance law.
                    (B) Other definitions.--In this paragraph, the 
                terms ``regular compensation'', ``extended 
                compensation'', and ``additional compensation'' have 
                the meanings given such terms in paragraphs (2), (3), 
                and (4) of section 205 of the Federal-State Extended 
                Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
                note.).
            (12) Unemployment insurance.--The term ``unemployment 
        insurance'' means the unemployment compensation payable to an 
        individual under any State law or Federal unemployment 
        compensation law, including chapter 85 of title 5, United 
        States Code, and the Railroad Unemployment Insurance Act.
            (13) Week of unemployment.--
                    (A) In general.--The term ``week of unemployment'' 
                means a week of total, part-total, or partial 
                unemployment, as determined under the applicable State 
                law or Federal unemployment insurance law.
                    (B) Week.--In this paragraph, the term ``week'' 
                means a week as defined in the applicable State law.

SEC. 343. FUNDING.

    (a) In General.--Funds deposited in the Climate Change Worker 
Transition Fund shall be available for expenditure by the Secretary, in 
accordance with this section, without further appropriation or fiscal 
year limitation.
    (b) Energy Efficiency and Renewable Energy Worker Training 
Program.--In each of fiscal years 2010 through 2050, the Secretary 
shall use 25 percent of the funds deposited in the Climate Change 
Worker Transition Fund to implement the energy efficiency and renewable 
energy worker training program established under section 171(e) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2916(e)).
    (c) Adjustment Assistance Program.--
            (1) In general.--In each of fiscal years 2010 through 2050, 
        75 percent of the funds deposited in the Climate Change Worker 
        Transition Fund shall be available to the Secretary to carry 
        out the worker transition program established under this 
        subtitle.
            (2) Remaining funds.--If, at the end of any fiscal year, 
        after the requirements for worker transition assistance under 
        chapter 2 of this subtitle have been fully satisfied, any of 
        the funds described in paragraph (1) remain unexpended, such 
        funds shall be used to by the Secretary to implement the energy 
        efficiency and renewable energy worker training program 
        described in subsection (b) of this section.

SEC. 344. ESTABLISHMENT OF WORKER TRANSITION ASSISTANCE PROGRAM.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall establish a program to 
provide adjustment assistance under this subtitle to workers separated 
from employment as a result of the implementation of title VII of the 
Clean Air Act (as added by section 101 of this Act).
    (b) Regulations.--The Secretary shall promulgate regulations, 
consistent with the requirements of this subtitle, to implement the 
program established under subsection (a).

SEC. 345. PETITION AND CERTIFICATION OF ELIGIBILITY.

    (a) Filing of Petition.--A petition for certification of 
eligibility to apply for adjustment assistance under this subtitle may 
be filed with the Secretary by any of the following:
            (1) A group of workers.
            (2) A certified or recognized union or other duly 
        authorized representative of such workers.
            (3) Employers of such workers, one-stop operators or one-
        stop partners (as defined in section 101 of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2801)), including State 
        employment security agencies, or the State dislocated worker 
        unit established under title I of such Act, on behalf of such 
        workers.
    (b) Determination by Secretary.--The Secretary, within 30 days 
after receiving a petition under subsection (a), shall determine 
whether the petition meets the eligibility requirements described in 
section 346. Upon a determination that the petition meets such 
requirements, the Secretary shall issue to workers covered by the 
petition a certification of eligibility to apply for adjustment 
assistance under this subtitle.

SEC. 346. GROUP ELIGIBILITY REQUIREMENTS.

    (a) In General.--A group of workers shall be eligible to apply for 
adjustment assistance under this subtitle pursuant to a petition filed 
under section 345(a) if the Secretary determines that--
            (1) a significant number or proportion of the workers in 
        such workers' firm, or an appropriate subdivision of the firm, 
        have become totally separated or partially separated, or are 
        threatened to become totally separated or partially separated, 
        from adversely affected employment;
            (2) the sales or production, or both, of such firm or 
        subdivision have decreased absolutely; and
            (3) compliance with the requirements of title VII of the 
        Clean Air Act (as added by section 101 of this Act) contributed 
        importantly to such workers' separation or threat of separation 
        from employment.
    (b) Definition of ``Contributed Importantly''.--In subsection 
(a)(3), the term ``contributed importantly'' means a cause which is 
important but not necessarily more important than any other cause.

SEC. 347. BENEFIT INFORMATION FOR WORKERS.

    (a) In General.--The Secretary shall provide full information to 
workers about the adjustment assistance under this subtitle and about 
the petition and application procedures, and the appropriate filing 
dates, for such adjustment assistance. The Secretary shall provide 
whatever assistance is necessary to enable groups of workers to prepare 
petitions or applications for adjustment assistance under this 
subtitle. In providing such information and assistance to workers under 
this section, the Secretary shall, to the extent possible, seek to 
cooperate with the certified or recognized union or other duly 
authorized representative of such workers.
    (b) Notice of Benefits.--
            (1) To workers.--The Secretary shall provide written notice 
        through the mail of the adjustment assistance available under 
        this subtitle to each worker whom the Secretary has reason to 
        believe is covered by a certification made under this 
        subtitle--
                    (A) at the time such certification is made, if the 
                worker was partially separated or totally separated 
                from adversely affected employment before such 
                certification; or
                    (B) at the time of total separation or partial 
                separation from adversely affected employment of the 
                worker, if subparagraph (A) does not apply.
            (2) To representatives of workers.--The Secretary shall 
        provide notice of the adjustment assistance available under 
        this subtitle to the certified or recognized union or other 
        duly authorized representative of workers described in 
        paragraph (1).
            (3) General publication.--The Secretary shall publish 
        notice of the adjustment assistance available under this 
        subtitle to workers covered by each certification made under 
        this subtitle in newspapers of general circulation in the areas 
        in which the workers reside and on the Internet.

                      CHAPTER 2--PROGRAM BENEFITS

SEC. 351. INCOME SUPPORT ASSISTANCE.

    (a) In General.--An adversely affected worker who is covered by a 
certification issued by the Secretary under section 345(b) and who 
applies for adjustment assistance under this subtitle shall be provided 
income support assistance in the form of a weekly adjustment allowance 
in accordance with the requirements of this section.
    (b) Eligibility Requirements.--An adversely affected worker shall 
be eligible to receive a weekly adjustment allowance under this section 
if the following conditions are met:
            (1) Unemployment.--The worker is unemployed for the week 
        for which the adjustment allowance is paid.
            (2) Date of separation.--The worker's total separation or 
        partial separation from adversely affected employment 
        occurred--
                    (A) on or after the date, as specified in the 
                certification under which the worker is covered, on 
                which total separation or partial separation from 
                adversely affected employment began or threatened to 
                begin; and
                    (B) before the expiration of the 2-year period 
                beginning on the date on which the Secretary's 
                determination under section 345(b) was made.
            (3) Prior employment.--The worker had, in the 52-week 
        period ending with the week in which total separation or 
        partial separation from adversely affected employment 
        occurred--
                    (A) at least 26 weeks of employment in adversely 
                affected employment with a single firm or subdivision 
                of a firm; or
                    (B) if data with respect to weeks of employment 
                with a firm are not available, equivalent amounts of 
                employment computed under regulations prescribed by the 
                Secretary.
            (4) Enrollment in training program.--The worker--
                    (A) is enrolled in a training program approved by 
                the Secretary under section 352(b)(2) and such 
                enrollment began by the later of--
                            (i) the last day of the 26th week of the 
                        worker's initial unemployment compensation 
                        benefit period;
                            (ii) the last day of the 26th week after 
                        the week in which the Secretary issues a 
                        certification covering the worker;
                            (iii) a date 45 days after the later of the 
                        two dates described in clauses (i) and (ii), if 
                        the Secretary extends the time for enrollment 
                        based on extenuating circumstances relating to 
                        enrollment in a training program;
                            (iv) the last day of such period that the 
                        Secretary determines appropriate, if the 
                        failure to enroll is due to the failure to 
                        provide the worker with timely information 
                        regarding the date specified in clause (i) or 
                        (ii), as the case may be; or
                            (v) the last day of a period determined by 
                        the Secretary to be approved for enrollment 
                        after the termination of a waiver issued 
                        pursuant to subsection (c);
                    (B) has, after the date on which the worker became 
                totally separated, or partially separated, from 
                adversely affected employment, completed a training 
                program approved by the Secretary under section 
                352(b)(2); or
                    (C) has received a written statement waiving 
                training enrollment requirements under subsection 
                (c)(1) of this section.
    (c) Waivers of Training Enrollment Requirements.--
            (1) In general.--The Secretary may issue a written 
        statement to an adversely affected worker waiving the 
        requirement to be enrolled in training described in subsection 
        (b)(4)(A) if the Secretary determines that it is not feasible 
        or appropriate for the worker, because of one or more of the 
        following reasons:
                    (A) Marketable skills.--The worker possesses 
                marketable skills for suitable employment (as 
                determined pursuant to an assessment of the worker, 
                carried out in accordance with guidelines issued by the 
                Secretary) and there is a reasonable expectation of 
                employment at equivalent wages in the foreseeable 
                future.
                    (B) Retirement.--The worker is within 2 years of 
                meeting all requirements for entitlement to either--
                            (i) old-age insurance benefits under title 
                        II of the Social Security Act (42 U.S.C. 401 et 
                        seq.) (except for application therefor); or
                            (ii) a private pension sponsored by an 
                        employer or labor organization.
                    (C) Health.--The worker is unable to participate in 
                training due to the health of the worker, except that a 
                waiver under this subparagraph shall not be construed 
                to exempt a worker from requirements relating to the 
                availability for work, active search for work, or 
                refusal to accept work under State or Federal 
                unemployment compensation laws.
            (2) Duration of waivers.--
                    (A) In general.--A waiver issued under paragraph 
                (1) shall be effective for not more than 6 months after 
                the date on which the waiver is issued, unless the 
                Secretary determines otherwise, except for waivers 
                issued by reason of proximity of retirement age under 
                subparagraph (1)(B), in which case the waiver shall be 
                effective for the duration of the worker's enrollment 
                in the program.
                    (B) Revocation.--The Secretary shall revoke a 
                waiver issued under paragraph (1) if the Secretary 
                determines that the basis of a waiver is no longer 
                applicable to the worker and shall notify the worker in 
                writing of the revocation.
    (d) Amount of Weekly Adjustment Allowance.--
            (1) Formula.--The weekly adjustment allowance payable to an 
        adversely affected worker for a week of total unemployment 
        shall be an amount equal to 70 percent of the adversely 
        affected worker's average weekly wage prior to separation from 
        adversely affected employment, reduced (but not below zero) 
        by--
                    (A) any unemployment insurance which the worker 
                receives, or would receive if the worker applied for 
                such insurance, which respect to such week, except that 
                such reduction will not apply if the appropriate State 
                agency or Federal agency finally determines that the 
                worker was not entitled to unemployment insurance for 
                that week; and
                    (B) income that is deductible from unemployment 
                insurance under the disqualifying income provisions of 
                the applicable State law or Federal unemployment 
                insurance law.
            (2) Adversely affected workers who are undergoing 
        training.--A weekly adjustment allowance payable to an 
        adversely affected worker under this section shall be paid in 
        lieu of any training allowance to which a worker would 
        otherwise be entitled under any other Federal law for the 
        training of workers.
    (e) Limitation on Weekly Adjustment Allowance.--
            (1) Maximum amount.--Except as provided in paragraph (2), 
        the maximum amount of weekly adjustment allowances payable to 
        an adversely affected worker with respect to the period covered 
        by a certification issued by the Secretary under section 345(b) 
        shall be the amount which is the product of 52 multiplied by 
        the amount of the adjustment allowance payable to the worker 
        for a week of total unemployment as determined under subsection 
        (d).
            (2) Further amounts.--
                    (A) In general.--Notwithstanding paragraph (1), in 
                order to assist an adversely affected worker to 
                complete training approved for the worker under section 
                352, and in accordance with regulations prescribed by 
                the Secretary, payments may be made as weekly 
                adjustment allowances for up to 52 additional weeks in 
                the 52-week period that--
                            (i) follows the last week of entitlement to 
                        weekly adjustment allowances otherwise payable 
                        under this subtitle; or
                            (ii) begins with the first week of such 
                        training, if such training begins after the 
                        last week described in clause (i).
                    (B) Limitation.--Payments for such additional weeks 
                may be made only for weeks in such 52-week period 
                during which the individual is participating in such 
                training.
            (3) Duration.--An adjustment allowance shall not be paid 
        for any week occurring after the close of the 130-week period 
        that begins with the first week following the week in which the 
        adversely affected worker was most recently totally separated 
        from adversely affected employment with respect to which the 
        worker meets the eligibility requirements of subsection (b).

SEC. 352. TRAINING AND OTHER ADJUSTMENT ASSISTANCE.

    (a) In General.--An adversely affected worker who is covered by a 
certification issued by the Secretary under section 345(b) and who 
applies for adjustment assistance under this subtitle shall be 
provided, in the same manner and to the same extent as a worker covered 
by a certification under section 223 of the Trade Act of 1974 (19 
U.S.C. 2273), the training and other adjustment assistance described in 
subsection (b).
    (b) Training and Other Adjustment Assistance Described.--The 
training and other adjustment assistance referred to in subsection (a) 
are the following:
            (1) Employment counseling, testing, and placement services, 
        and supportive and other services, as described in section 235 
        of the Trade Act of 1974 (22 U.S.C. 2295).
            (2) Training described in section 236 of the Trade Act of 
        1974 (19 U.S.C. 2296), except that the limitation on total 
        payments described in subsection (a)(2)(A) of such section 
        shall not apply with respect to such training provided under 
        the authority of this paragraph.
            (3) Job search allowances described in section 237 of the 
        Trade Act of 1974 (19 U.S.C. 2297).
            (4) Relocation allowances described in section 238 of the 
        Trade Act of 1974 (19 U.S.C. 2298).
    (c) Energy Efficiency and Renewable Energy Worker Training 
Program.--To the maximum extent practicable, an adversely affected 
worker who is eligible to receive training and other adjustment 
assistance under this section shall be eligible to receive assistance 
under the energy efficiency and renewable energy worker training 
program established under section 171(e) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2916(e)).

SEC. 353. REEMPLOYMENT ADJUSTMENT ASSISTANCE PROGRAM.

    (a) Establishment.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall establish a reemployment 
trade adjustment assistance program for older workers that provides the 
benefits described in subsection (b).
    (b) Benefits.--The Secretary shall, for the eligibility period 
described in subsection (c)(3), provide a worker described in 
subsection (c)(2) with a weekly adjustment allowance equal to 50 
percent of the difference between--
            (1) the wages received by the worker from reemployment; and
            (2) the wages received by the worker at the time of 
        separation.
    (c) Eligibility.--
            (1) In general.--A group of workers certified as eligible 
        for adjustment assistance under this subtitle is eligible for 
        benefits described in subsection (b) under the program 
        established under subsection (a).
            (2) Individual eligibility.--A worker in a group of workers 
        described in paragraph (1) may elect to receive benefits 
        described in subsection (b) under the program established under 
        subsection (a) if the worker--
                    (A) is at least 50 years of age;
                    (B) earns not more than $60,000 each year in wages 
                from reemployment;
                    (C)(i) is employed on a full-time basis as defined 
                by State law in the State in which the worker is 
                employed; or
                    (ii) is employed at least 20 hours per week and is 
                enrolled in training approved under section 352(b)(2); 
                and
                    (D) is not employed at the firm from which the 
                worker was separated.
        In the case of a worker described in subparagraph (C)(ii), the 
        percentage referred to in subsection (b) shall be deemed to be 
        a percentage equal to \1/2\ of the ratio of weekly hours of 
        employment referred to in subparagraph (C)(ii) to weekly hours 
        of employment of that worker at the time of separation (but not 
        more than 50 percent).
            (3) Eligibility period for payments.--A worker in a group 
        of workers described in paragraph (1) may receive payments 
        described in subsection (b) under the program established under 
        subsection (a) for a period not to exceed 2 years from the date 
        on which the worker exhausts all rights to unemployment 
        insurance based on the separation of the worker from adversely 
        affected employment or the date on which the worker obtains 
        reemployment, whichever is earlier.
            (4) Training and other services.--A worker described in 
        paragraph (2) shall be eligible to receive training approved 
        under section 352(b)(2) and services under section 352(b)(1).
    (d) Total Amount of Payments.--The payments described in subsection 
(b) made to a worker may not exceed $12,000 per worker during the 
eligibility period under subsection (c)(3).
    (e) Limitation on Other Benefits.--A worker described in subsection 
(c) may not receive a weekly adjustment allowance under section 351 
during any week for which the worker receives a payment described in 
subsection (b).

SEC. 354. HEALTH COVERAGE TAX CREDITS.

    (a) Eligibility for Credit.--Paragraph (1) of section 35(c) of the 
Internal Revenue Code of 1986 (defining eligible individual) is amended 
by striking ``and'' at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C) and inserting ``, and'', and by 
inserting after subparagraph (C) the following new subparagraph:
                    ``(D) an eligible adjustment assistance 
                recipient.''.
    (b) Eligible Adjustment Assistance Recipient Defined.--Subsection 
(c) of section 35 of such Code (defining eligible individual) is 
amended by adding at the end the following new paragraph:
            ``(5) Eligible adjustment assistance recipient.--The term 
        `eligible adjustment assistance recipient' means, with respect 
        to any month, any individual who is receiving for any day of 
        such month a weekly adjustment allowance under section 351 or 
        353 of the Investing in Climate Action and Protection Act. An 
        individual shall continue to be treated as an eligible 
        adjustment assistance recipient during the first month that 
        such individual would otherwise cease to be an eligible 
        adjustment assistance recipient by reason of the preceding 
        sentence.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 355. ADMINISTRATION.

    (a) Agreements With States.--
            (1) In general.--The Secretary is authorized on behalf of 
        the United States to enter into an agreement with any State, or 
        with any State agency. Under such an agreement, the State 
        agency--
                    (A) as agent of the United States, shall receive 
                applications for, and shall provide, payments on the 
                basis provided in this subtitle;
                    (B) where appropriate, but in accordance with 
                paragraph (6), shall afford adversely affected workers 
                testing, counseling, referral to training and job 
                search programs, and placement services;
                    (C) shall make any certifications required under 
                section 351(c); and
                    (D) shall otherwise cooperate with the Secretary 
                and with other State and Federal agencies in providing 
                payments and services under this subtitle.
            (2) Terms and conditions.--Each agreement under this 
        subsection shall provide the terms and conditions upon which 
        the agreement may be amended, suspended, or terminated.
            (3) Unemployment insurance.--Each agreement under this 
        subsection shall provide that unemployment insurance otherwise 
        payable to any adversely affected worker shall not be denied or 
        reduced for any week by reason of any right to payments under 
        this subtitle.
            (4) Entitlement to program benefits.--A determination by a 
        State agency with respect to entitlement to program benefits 
        under an agreement is subject to review in the same manner and 
        to the same extent as determinations under the applicable State 
        law and only in that manner and to that extent.
            (5) Coordination of training and assistance.--Any agreement 
        entered into under this subsection shall provide for the 
        coordination of the administration of the provisions for 
        employment services, training, and supplemental assistance 
        under section 352 and under title I of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2801 et seq.) upon such terms and 
        conditions as are established by the Secretary in consultation 
        with the States and set forth in such agreement. Any agency of 
        the State jointly administering such provisions under such 
        agreement shall be considered to be a State agency for purposes 
        of this subtitle.
            (6) Technical assistance.--Each State agency shall, in 
        carrying out paragraph (1)(B)--
                    (A) advise each worker who applies for unemployment 
                insurance of the benefits under this subtitle and the 
                procedures and deadlines for applying for such 
                benefits;
                    (B) facilitate the early filing of petitions under 
                section 345 for any workers that the agency considers 
                are likely to be eligible for benefits under this 
                subtitle;
                    (C) advise each adversely affected worker to apply 
                for training under section 352 before, or at the same 
                time, the worker applies for weekly adjustment 
                allowances under section 351; and
                    (D) as soon as practicable, interview the adversely 
                affected worker regarding suitable training 
                opportunities available to the worker under section 352 
                and review such opportunities with the worker.
            (7) Coordination of workforce investment activities.--In 
        order to promote the coordination of workforce investment 
        activities in each State with activities carried out under this 
        subtitle, any agreement entered into under this subsection 
        shall provide that the State shall submit to the Secretary, in 
        such form as the Secretary may require, the description and 
        information described in paragraphs (8) and (14) of section 
        112(b) of the Workforce Investment Act of 1998 (29 U.S.C. 
        2822(b)(8) and (14)).
    (b) Administration Absent State Agreement.--
            (1) In general.--In any State where there is no agreement 
        in force between a State or its agency under subsection (a), 
        the Secretary shall arrange under regulations prescribed by the 
        Secretary for performance of all necessary functions under 
        sections 351 through 353, including provision for a fair 
        hearing for any worker whose application for payments is 
        denied.
            (2) Review of final determinations.--A final determination 
        under paragraph (1) with respect to entitlement to program 
        benefits under this chapter is subject to review by the courts 
        in the same manner and to the same extent as is provided by 
        section 205(g) of the Social Security Act (42 U.S.C. 405(g)).

         Subtitle F--National Climate Change Adaptation Program

SEC. 361. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) According to the Intergovernmental Panel on Climate 
        Change's Fourth Assessment Report, the United States is already 
        experiencing a range of adverse impacts of climate change and 
        is predicted to experience more intense impacts over the course 
        of this century. These predicted future impacts include--
                    (A) significant reductions in snowpack in western 
                mountains by the middle of this century, increasing 
                stress on over-allocated water systems in the western 
                United States;
                    (B) decreased water levels in the Great Lakes, 
                leading to a range of adverse ecological and economic 
                effects;
                    (C) decreased recharge of heavily utilized 
                groundwater systems in the southwestern United States, 
                resulting in increased water stress;
                    (D) increased surface water temperatures making 
                achievement of water quality standards more difficult;
                    (E) more frequent and more intense wildfires in the 
                western United States;
                    (F) acceleration of sea-level rise and changes in 
                storm surge patterns, leading to more frequent and more 
                severe coastal flooding, increased coastal erosion, 
                increased rates of coastal wetland loss, and increased 
                vulnerability of coastal infrastructure;
                    (G) potentially more intense storms, leading to 
                greater coastal instability;
                    (H) increased magnitude and duration of severe 
                heatwaves and increased concentration of surface ozone 
                pollution, leading to adverse impacts on public health;
                    (I) potential negative impacts on public health due 
                to changes in infectious disease transmission patterns; 
                and
                    (J) increased coastal erosion and permafrost thaw 
                in Alaska, jeopardizing public and private 
                infrastructure and imposing substantial costs.
            (2) Although prompt and aggressive efforts to mitigate 
        global greenhouse gas emissions can reduce the magnitude and 
        likelihood of adverse impacts of climate change on the United 
        States, such impacts are likely to intensify for the 
        foreseeable future even under a best-case scenario for 
        emissions reductions.
            (3) Absent effective action to manage risks and reduce 
        vulnerability to adverse climate change impacts, such impacts 
        are likely to impose significant social and economic costs on 
        the United States.
            (4) State, local, and tribal governments are likely to bear 
        much of the burden of responding to the impacts of climate 
        change. Although both impacts and appropriate adaptive 
        responses will vary by region, State, and locality, the Federal 
        Government can bolster State, local, and tribal adaptive 
        capacity by providing policy-relevant information and technical 
        and financial assistance.
            (5) An effective national climate change adaptation program 
        will require improvements in coordination among Federal 
        agencies, and among the Federal Government, State, local, and 
        tribal governments, and nongovernmental stakeholders.
            (6) To improve the United States capacity to adapt to 
        adverse climate change impacts, Federal agencies must 
        incorporate potential short-term, medium-term, and long-term 
        impacts of climate change into the implementation of their 
        respective mandates.
    (b) Purpose.--The purpose of this subtitle is to establish an 
integrated Federal program to enhance the capacity of Federal, State, 
local, and tribal governments to reduce vulnerability to the adverse 
impacts of climate change on the United States and its territories.

SEC. 362. DEFINITIONS.

    As used in this subtitle--
            (1) Council.--The term ``Council'' means the National 
        Climate Change Adaptation Council established under section 
        364.
            (2) National assessment.--The term ``National Assessment'' 
        refers to a National Climate Change Vulnerability Assessment 
        prepared pursuant to section 366.
            (3) National climate change adaptation fund.--The term 
        ``National Climate Change Adaptation Fund'' means the National 
        Climate Change Adaptation Fund established under section 722 of 
        the Clean Air Act (as added by section 101 of this Act).
            (4) NOAA.--The term ``NOAA'' means the National Oceanic and 
        Atmospheric Administration.
            (5) Program.--The term ``Program'' means the National 
        Climate Change Adaptation Program established under section 
        365.
            (6) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, American Samoa, the United States Virgin Islands, Guam, 
        or the Commonwealth of the Northern Mariana Islands.
            (7) Tribal government.--The term ``tribal government'' 
        means the official government of a federally recognized Indian 
        tribe.

SEC. 363. FUNDING.

    (a) In General.--Funds deposited in the National Climate Change 
Adaptation Fund shall be available for expenditure, without further 
need of appropriation or fiscal year limitation, to carry out this 
subtitle in accordance with the requirements of this section.
    (b) Allocation.--
            (1) National climate change adaptation program.--For each 
        of fiscal years 2010 through 2050, the Secretary of Commerce 
        shall utilize not more than 15 percent of the funds deposited 
        in the National Climate Change Adaptation Fund to carry out the 
        National Climate Change Adaptation Program established under 
        section 365.
            (2) Federal funding for state, local, and tribal adaptation 
        projects.--The Federal agency or agencies charged with 
        implementing the program established under section 369 shall 
        utilize the remaining funds deposited in the National Climate 
        Change Adaptation Program to provide financial assistance to 
        State, local, and tribal governments pursuant to such program, 
        provided that Congress has not enacted a statute codifying the 
        program or an alternative to the program.

SEC. 364. NATIONAL CLIMATE CHANGE ADAPTATION COUNCIL.

    (a) Establishment.--Not later than 90 days after the date of 
enactment of this Act, the President shall establish a National Climate 
Change Adaptation Council, consisting of representatives, appointed by 
the head of the respective Federal agency, of--
            (1) NOAA;
            (2) the Environmental Protection Agency;
            (3) the Department of Agriculture;
            (4) the Department of Commerce;
            (5) the Department of Defense;
            (6) the Department of Energy;
            (7) the Department of Health and Human Services;
            (8) the Department of Homeland Security;
            (9) the Department of Housing and Urban Development;
            (10) the Department of the Interior;
            (11) the Department of Transportation;
            (12) the Army Corps of Engineers;
            (13) the Centers for Disease Control;
            (14) the Federal Emergency Management Agency;
            (15) the National Aeronautics and Space Administration;
            (16) the United States Geological Survey; and
            (17) such other Federal agencies or departments as the 
        President considers appropriate.
    (b) Chairperson.--The representative described in subsection (a)(1) 
shall be the chairperson of the Council.
    (c) Functions.--The Council shall serve as a forum for interagency 
consultation on, and coordination of, Federal policies relating to 
assessment of, and adaptation to, the impacts of climate change on the 
United States and its Territories.

SEC. 365. NATIONAL CLIMATE CHANGE ADAPTATION PROGRAM.

    The Secretary of Commerce, acting through the Administrator of 
NOAA, shall establish within NOAA a National Climate Change Adaptation 
Program for the purpose of increasing the overall effectiveness of 
Federal climate change adaptation efforts. Under the Program, the 
Administrator of NOAA shall, in consultation as appropriate with the 
Council--
            (1) develop and publish periodic National Assessments under 
        section 366;
            (2) provide to Federal agencies, local, State, and tribal 
        governments, and nongovernmental stakeholders policy-relevant 
        scientific information, research products, decision tools, and 
        technical support related to climate change impacts and 
        adaptation to such impacts, as provided in section 367; and
            (3) advise Federal agencies on issues related to climate 
        change impacts and adaptation to such impacts, including 
        through the provision of technical support to Federal agencies 
        in the development of agency climate change adaptation plans as 
        required under section 368.

SEC. 366. NATIONAL CLIMATE CHANGE VULNERABILITY ASSESSMENTS.

    (a) In General.--Not later than January 1, 2012, and every 4 years 
thereafter, the Administrator of NOAA shall publish and deliver to the 
President a National Climate Change Vulnerability Assessment evaluating 
regional and national vulnerability to impacts of climate change, 
strategies to adapt to such impacts, and priorities for further 
research related to climate change impacts and adaptive capacity.
    (b) Contents.--
            (1) Regional assessments.--Each National Assessment shall 
        include regional assessments for a sufficient number of 
        geographic regions within the United States and its Territories 
        to effectively address specific climate change impacts at the 
        regional and State or territorial levels. Each regional 
        assessment shall--
                    (A) assess, at an appropriate geographic scale, the 
                nature and probability of predicted short-term, medium-
                term, and long-term impacts of climate change on human 
                health and a broad range of natural systems, resources, 
                infrastructure, and social and economic sectors;
                    (B) provide a regionally prioritized list of 
                vulnerable systems and areas and an estimate of the 
                range of anticipated costs of climate change impacts 
                within the region;
                    (C) describe current efforts within the region to 
                adapt to climate change impacts, in areas such as 
                public health, emergency response, infrastructure and 
                development, water resource management, agriculture, 
                forest management, and coastal management;
                    (D) identify gaps in current adaptation efforts 
                within the region, strategies to address such gaps, and 
                estimates of the costs of implementing such strategies;
                    (E) describe current research, observation, and 
                monitoring activities focused on understanding regional 
                climate change impacts and adaptation to such impacts, 
                as well as research and data needs and priorities in 
                these areas;
                    (F) assess the adequacy of existing mechanisms for 
                communication and coordination within the region 
                between Federal agencies and regional, State, local, 
                and tribal stakeholders and recommend measures to 
                enhance such communication and coordination; and
                    (G) include any other information relevant to 
                understanding regional climate change impacts and 
                adaptation.
            (2) National synthesis.--Each National Assessment shall 
        include a synthesis of the regional assessments, including--
                    (A) a description of relevant research on national-
                scale, international-scale, or global-scale climate 
                change impacts, vulnerabilities, and adaptive 
                strategies not addressed in the regional assessments;
                    (B) based on the regional assessments, a nationally 
                prioritized list of vulnerable systems and regions in 
                the United States and a national estimate of the range 
                of costs of short-term, medium-term, and long-term 
                costs of predicted climate change impacts;
                    (C) a nationally prioritized list of strategies and 
                actions to address climate change impacts, including 
                estimates of the costs of implementing such strategies 
                and actions and the appropriate roles of relevant 
                Federal Government agencies;
                    (D) a description of priorities for developing 
                Federal research, observation, and monitoring, and 
                policy tools to meet the needs of State and local 
                decisionmakers identified in the regional assessments;
                    (E) an assessment of the adequacy of existing 
                mechanisms for communication and coordination between 
                Federal agencies and regional, State, local, and tribal 
                stakeholders and recommendations for measures to 
                enhance such communication and coordination;
                    (F) a description of the progress made towards 
                achieving the objectives identified in the prior 
                National Assessment, except that such requirement shall 
                not apply to the first National Assessment; and
                    (G) any other relevant results from the regional 
                assessments that have implications for Federal climate 
                change research, mitigation, or adaptation efforts.
    (c) Methodological and Procedural Requirements.--
            (1) Consultation with council.--In developing the National 
        Assessments, the Administrator of NOAA shall consult with the 
        Council and shall seek input and assistance from the Federal 
        agencies represented on the Council within their respective 
        areas of expertise.
            (2) Consultation with local, state, and regional 
        stakeholders.--In developing the National Assessments, the 
        Administrator of NOAA and participating Federal agencies shall 
        consult with State, local, and tribal governments and 
        nongovernmental stakeholders at the local, State, and regional 
        levels, to facilitate coordination of efforts and to maximize 
        the utility to local, State, regional, and tribal decision 
        makers of the information provided by the National Assessment.
            (3) Best available science.--The National Assessments shall 
        be based on the best scientific and commercial data available.
            (4) Treatment of uncertainty.--To ensure that scientific 
        uncertainties are addressed through a consistent methodology, 
        all components of the National Assessments shall follow 
        either--
                    (A) the guidance on treatment of uncertainty set 
                forth in the Intergovernmental Panel on Climate 
                Change's Guidance Notes for Lead Authors of the IPCC 
                Fourth Assessment Report on Addressing Uncertainty; or
                    (B) such similar uniform guidelines on the 
                treatment of uncertainty as the Administrator of NOAA 
                may establish.
            (5) Utilization of prior research and assessments.--In 
        developing the National Assessments, the Administrator of NOAA 
        shall, to the extent practicable, take into consideration 
        research and information contained in--
                    (A) the reports of the Intergovernmental Panel on 
                Climate Change;
                    (B) reports or research published by the Global 
                Change Research Program and the Climate Change Science 
                Program; and
                    (C) any existing climate change adaptation 
                strategy, report, or assessment prepared by or for a 
                Federal, State, local, or tribal government entity.

SEC. 367. CLIMATE CHANGE ADAPTATION SERVICES.

    (a) National Climate Service.--The Secretary of Commerce, acting 
through the Administrator of NOAA, shall establish within NOAA a 
National Climate Service to serve as a clearinghouse to provide State, 
local, and tribal government decisionmakers with access to regionally 
and nationally relevant information, data, forecasts, and services 
relating to climate change impacts and adaptation to such impacts. The 
National Climate Service shall--
            (1) develop and provide access to policy-relevant climate 
        information products, databases, decision tools, and services 
        for Federal, State, local, and tribal government decisionmakers 
        and policymakers;
            (2) provide technical assistance to Federal, State, local, 
        and tribal government efforts to assess vulnerability to 
        climate change impacts and develop appropriate strategies and 
        plans to reduce such vulnerability;
            (3) facilitate communication and coordination among 
        Federal, State, local, and tribal stakeholders with regard to 
        climate change information and adaptation strategies; and
            (4) undertake education and outreach initiatives related to 
        climate change impacts, vulnerabilities, and the application of 
        climate information in decisionmaking.
    (b) Regional and National Workshops.--To facilitate information 
exchange, outreach, and coordination of efforts on assessment of and 
adaptation to climate change impacts, the Administrator of NOAA shall, 
during each 4-year cycle during which a National Assessment is being 
prepared (or, in the case of the first National Assessment, the period 
between the date of enactment of this Act and January 1, 2012), 
convene--
            (1) at least one stakeholder workshop in each region 
        identified by the National Assessment, to which appropriate 
        governmental and nongovernmental stakeholders from the region 
        are invited; and
            (2) at a date after all of the regional workshops described 
        in paragraph (1) have been completed, at least one national-
        level workshop to which appropriate governmental and 
        nongovernmental stakeholders from all of the regions identified 
        by the National Assessments are invited.
    (c) Observation and Monitoring.--The Administrator of NOAA is 
authorized to deploy such observation and monitoring systems, including 
remote sensing systems, as may be necessary to support the National 
Climate Change Adaptation Program established under this subtitle.

SEC. 368. FEDERAL AGENCY CLIMATE CHANGE ADAPTATION PLANS.

    (a) Publication and Review.--
            (1) Presidential review.--Within 1 year after the date of 
        publication of each National Assessment, each Federal agency 
        with representation on the Council shall--
                    (A) complete an agency climate change adaptation 
                plan detailing the agency's current and projected 
                efforts to address the potential impacts of climate 
                change on matters within the agency's jurisdiction; and
                    (B) submit such agency climate change adaptation 
                plan to the President for review.
            (2) Submission to congress.--Within 18 months after the 
        date of publication of each National Assessment, each Federal 
        agency with representation on the Council shall submit the 
        agency climate change adaptation plan described in paragraph 
        (1), as finalized following Presidential review, to the House 
        Committee on Energy and Commerce, the Senate Committee on 
        Environment and Public Works, and the committees in the House 
        of Representatives and the Senate with principal jurisdiction 
        over the relevant agency.
    (b) Requirements.--Each agency climate change adaptation plan shall 
include--
            (1) a review of the current impacts of climate change on 
        matters within the agency's jurisdiction;
            (2) a review of anticipated future (short-term, medium-
        term, and long-term) impacts of climate change on matters 
        within the agency's jurisdiction, including an assessment of 
        the probability of such impacts that follows the guidelines on 
        treatment of uncertainty established for the National 
        Assessments;
            (3) a description of priorities, within the scope of the 
        agency's jurisdiction, for building the adaptive capacity of 
        the United States and its territories;
            (4) a review of the agency's current efforts to address 
        climate change impacts on matters within its jurisdiction, 
        including a description of how current and future impacts are 
        being integrated into agency decisionmaking and a description 
        of budgetary and human resources dedicated to adaptation to 
        climate change;
            (5) a description of initiatives that will be undertaken to 
        address climate change impacts on matters within the 
        jurisdiction of the agency, including--
                    (A) the strategic objectives of such initiatives;
                    (B) the resources that will be dedicated to such 
                initiatives;
                    (C) timelines for implementation; and
                    (D) benchmarks and methods for assessing 
                effectiveness;
            (6) a description of current and proposed mechanisms to 
        enhance cooperation on climate change adaptation efforts with 
        other Federal agencies and with State, local, and tribal 
        governments and nongovernmental stakeholders;
            (7) an assessment of the agency's success in meeting the 
        objectives outlined in its most recent agency climate change 
        adaptation plan, except that this paragraph shall not apply to 
        the first agency climate change adaptation plan; and
            (8) an estimate of the budgetary and human resources needed 
        to address climate change impacts on matters within the 
        jurisdiction of the agency.

SEC. 369. FEDERAL FUNDING FOR STATE, LOCAL, AND TRIBAL ADAPTATION 
              PROJECTS.

    (a) Establishment of Program.--Not later than January 1, 2013, the 
President shall--
            (1) directly, or through such Federal agency or agencies as 
        the President may designate, promulgate regulations 
        establishing an integrated program to use funds in the National 
        Climate Change Adaptation Fund to provide financial assistance 
        to State, local, and tribal governments, individually or 
        jointly, for implementation of projects to reduce vulnerability 
        to climate change impacts; and
            (2) submit such regulations to the House Committee on 
        Energy and Commerce, the Senate Committee on Environment and 
        Public Works, and other committees of relevant jurisdiction in 
        the House of Representatives and the Senate.
    (b) Consultation.--In promulgating the regulations under subsection 
(a), the President, or such Federal agency or agencies as the President 
may designate, shall--
            (1) consult with the Administrator of NOAA and the Council; 
        and
            (2) take into consideration the findings and 
        recommendations of the most recent National Assessment and any 
        relevant agency climate change adaptation plans developed 
        pursuant to section 368.
    (c) Requirements.--The regulations promulgated under subsection (a) 
shall--
            (1) identify the Federal agency or agencies to be charged 
        with administering each element of the program, and any 
        relevant information relating to organization, governance, and 
        respective responsibilities under the program;
            (2) identify priorities and objectives for building State, 
        local, and tribal governments' capacity to adapt to climate 
        change impacts through financial support for State, local, and 
        tribal projects;
            (3) identify mechanisms, including grants or loans, through 
        which funds within the National Climate Change Adaptation Fund 
        will be used to provide financial support for projects 
        implemented by State, local, or tribal governments;
            (4) identify categories of projects eligible for funding 
        under the program, consistent with the regional and national 
        adaptation priorities identified in the National Assessment;
            (5) describe procedures for submission, evaluation, and 
        approval of project proposals;
            (6) establish selection criteria for evaluating climate 
        change adaptation project proposals submitted, individually or 
        jointly, by State, local, and tribal governments, including 
        consideration of environmental impacts and cost-effectiveness 
        in reducing vulnerability to climate change impacts;
            (7) establish criteria for allocating funding among 
        different regions, States, localities, and Indian tribes, and 
        among different project categories;
            (8) establish criteria and mechanisms for reviewing project 
        performance and for enforcing any restrictions imposed as a 
        condition of supporting an approved project; and
            (9) provide such other information regarding implementation 
        of the proposed program as the President or the promulgating 
        agency or agencies consider appropriate.
    (d) Program Implementation.--If, after the 1-year period beginning 
on the date of submission of the regulations under subsection (a), 
Congress has not enacted a statute codifying the program established by 
the regulations or an alternative to such program, the agency or 
agencies identified in the regulations pursuant to subsection (c)(1) 
shall implement the regulations.
    (e) Periodic Revisions.--
            (1) Submission of revised regulations.--If a program has 
        been implemented pursuant to subsection (d), the President 
        shall, not later than January 1 of the calendar year following 
        the publication of each subsequent National Assessment, 
        promulgate and submit to Congress revised regulations that--
                    (A) meet the requirements of subsection (c); and
                    (B) reflect any relevant information or 
                recommendations included in the most recent National 
                Assessment and relevant agency climate change 
                adaptation plans.
            (2) Implementation of revised regulations.--If, after the 
        1-year period beginning on the date of submission of any 
        revised regulations under paragraph (1), Congress has not 
        enacted a statute codifying the program established by revised 
        regulations or an alternative to such program, the agency or 
        agencies identified in the revised regulations under subsection 
        (c)(1) shall implement the revised regulations.

             Subtitle G--Natural Resource Conservation Fund

SEC. 371. PURPOSES.

    The purposes of this subtitle are--
            (1) to provide financial support for programs to protect 
        natural resources, wildlife, and fisheries in the United States 
        from the adverse impacts of climate change; and
            (2) to invest in policies and measures that will reduce the 
        economic, social, and environmental costs of climate change to 
        the United States economy as a result of loss of ecosystem 
        services.

SEC. 372. DEFINITIONS.

    In this subtitle:
            (1) Adaptation activities.--The term ``adaptation 
        activities'' means activities (including research and education 
        activities) that assist fish and wildlife, fish and wildlife 
        habitat, plants, and associated ecological processes in 
        adapting to and surviving the impacts of climate change and 
        ocean acidification.
            (2) Ecological process.--
                    (A) In general.--The term ``ecological process'' 
                means a biological, chemical, or physical interaction 
                between the biotic and abiotic components of an 
                ecosystem.
                    (B) Inclusions.--The term ``ecological process'' 
                includes--
                            (i) nutrient cycling;
                            (ii) pollination;
                            (iii) predator-prey relationships;
                            (iv) soil formation;
                            (v) gene flow;
                            (vi) larval dispersal and settlement;
                            (vii) hydrological cycling;
                            (viii) decomposition; and
                            (ix) disturbance regimes, such as fire and 
                        flooding.
            (3) Fish and wildlife.--The term ``fish and wildlife'' 
        means--
                    (A) any species of wild fauna, including fish and 
                other aquatic species; and
                    (B) any fauna in a captive breeding program the 
                object of which is to reintroduce individuals of a 
                species that is indigenous to the United States and the 
                populations of which are depleted, into previously 
                occupied range in the United States.
            (4) Habitat.--The term ``habitat'' means the physical, 
        chemical, and biological properties (including aquatic and 
        terrestrial plant communities) that are used by wildlife for 
        growth, reproduction, and survival, food, water, cover, and 
        space in an area or region.
            (5) Imperiled species.--The term ``imperiled species'' 
        means--
                    (A) a species listed as an endangered species or 
                threatened species under the Endangered Species Act of 
                1973 (16 U.S.C. 1531 et seq.);
                    (B) a species proposed for listing under that Act;
                    (C) a candidate species under that Act;
                    (D) a species listed as an endangered species under 
                any State law; and
                    (E) a species, the population of which is declining 
                at a significant rate.
            (6) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (7) Plant.--The term ``plant'' means any species of wild 
        flora.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (9) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.

SEC. 373. USE OF AMOUNTS IN NATURAL RESOURCE CONSERVATION FUND.

    (a) Availability of Amounts.--All amounts deposited in the Natural 
Resource Conservation Fund established by section 722 of the Clean Air 
Act (as added by section 101 of this Act) shall be available upon such 
deposit, without further appropriation or fiscal year limitation, to 
carry out adaptation activities in accordance with this section.
    (b) Department of the Interior.--Of the amounts made available each 
fiscal year to carry out this section--
            (1) 35 percent shall be deposited in the Wildlife 
        Conservation and Restoration Account established under section 
        3(a)(2) of the Pittman-Robertson Wildlife Restoration Act (16 
        U.S.C. 669b(a)(2)), for grants to States to carry out 
        adaptation activities in accordance with comprehensive State 
        adaptation strategies approved under subsection (j);
            (2) 19 percent shall be allocated to the Secretary for use 
        in funding adaptation activities carried out--
                    (A) under endangered species, migratory bird, and 
                other fish and wildlife programs administered by the 
                United States Fish and Wildlife Service;
                    (B) on wildlife refuges and other public land under 
                the jurisdiction of the United States Fish and Wildlife 
                Service, the Bureau of Land Management, or the National 
                Park Service; or
                    (C) within Federal water managed by the Bureau of 
                Reclamation; and
            (3) 5 percent shall be allocated to the Secretary for 
        adaptation activities carried out under cooperative grant 
        programs, including--
                    (A) the cooperative endangered species conservation 
                fund authorized under section 6(i) of the Endangered 
                Species Act of 1973 (16 U.S.C. 1535(i));
                    (B) programs under the North American Wetlands 
                Conservation Act (16 U.S.C. 4401 et seq.);
                    (C) the multinational species conservation fund 
                established under the heading ``MULTINATIONAL SPECIES 
                CONSERVATION FUND'' of title I of the Department of the 
                Interior and Related Agencies Appropriations Act, 1999 
                (16 U.S.C. 4246);
                    (D) the Neotropical Migratory Bird Conservation 
                Fund established by section 9(a) of the Neotropical 
                Migratory Bird Conservation Act (16 U.S.C. 6108(a));
                    (E) the Coastal Program of the United States Fish 
                and Wildlife Service;
                    (F) the National Fish Habitat Action Plan;
                    (G) the Partners for Fish and Wildlife Program;
                    (H) the Landowner Incentive Program;
                    (I) the Wildlife Without Borders Program of the 
                United States Fish and Wildlife Service; and
                    (J) the Park Flight Migratory Bird Program of the 
                National Park Service; and
            (4) 1 percent shall be allocated to the Secretary to 
        provide financial assistance to Indian tribes to carry out 
        adaptation activities through the Tribal Wildlife Grants 
        Program of the United States Fish and Wildlife Service.
    (c) Land and Water Conservation Fund.--
            (1) Deposits.--
                    (A) In general.--Of the amounts made available for 
                each fiscal year to carry out this section, 10 percent 
                shall be deposited into the Land and Water Conservation 
                Fund established under section 2 of the Land and Water 
                Conservation Fund Act of 1965 (16 U.S.C. 460l-5).
                    (B) Use of deposits.--Deposits into the Land and 
                Water Conservation Fund under this subsection shall--
                            (i) be supplemental to authorizations 
                        provided under section 3 of the Land and Water 
                        Conservation Fund Act of 1965 (16 U.S.C. 460l-
                        6) which shall remain available for 
                        nonadaptation needs; and
                            (ii) be available for expenditure to carry 
                        out this section without further appropriation 
                        or fiscal year limitation.
            (2) Allocations.--Of the amounts deposited under this 
        subsection into the Land and Water Conservation Fund--
                    (A) \1/6\ shall be allocated to the Secretary and 
                made available on a competitive basis to carry out 
                adaptation activities through the acquisition of land 
                and interests in land under section 6 of the Land and 
                Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
                8)--
                            (i) to States in accordance with 
                        comprehensive wildlife conservation strategies, 
                        and to Indian tribes;
                            (ii) notwithstanding section 5 of that Act 
                        (16 U.S.C. 460l-7); and
                            (iii) in addition to any funds provided 
                        pursuant to--
                                    (I) annual appropriations Acts;
                                    (II) the Energy Policy Act of 2005 
                                (42 U.S.C. 15801 et seq.); or
                                    (III) any other authorization for 
                                nonadaptation needs;
                    (B) \1/3\ shall be allocated to the Secretary to 
                carry out adaptation activities through the acquisition 
                of lands and interests in land under section 7 of the 
                Land and Water Conservation Fund Act of 1965 (16 U.S.C. 
                460l-9);
                    (C) \1/6\ shall be allocated to the Secretary of 
                Agriculture and made available to the States to carry 
                out adaptation activities through the acquisition of 
                land and interests in land under section 7 of the 
                Forest Legacy Program under the Cooperative Forestry 
                Assistance Act of 1978 (16 U.S.C. 2103c); and
                    (D) \1/3\ shall be allocated to the Secretary of 
                Agriculture to carry out adaptation activities through 
                the acquisition of land and interests in land under 
                section 7 of the Land and Water Conservation Fund Act 
                of 1965 (16 U.S.C. 460l-9).
            (3) Expenditure of funds.--In allocating funds under 
        paragraph (2), the Secretary and the Secretary of Agriculture 
        shall take into consideration factors including--
                    (A) the availability of non-Federal contributions 
                from State, local, or private sources;
                    (B) opportunities to protect wildlife corridors or 
                otherwise to link or consolidate fragmented habitats;
                    (C) opportunities to reduce the risk of 
                catastrophic wildfires, extreme flooding, or other 
                climate-related events that are harmful to fish and 
                wildlife and people;
                    (D) the potential for conservation of species or 
                habitat types at serious risk due to climate change, 
                ocean acidification, and other stressors; and
                    (E) the potential to provide enhanced access to 
                land and water for fishing, hunting, and other public 
                recreational uses.
    (d) Forest Service.--Of the amounts made available each fiscal year 
to carry out this section, 5 percent shall be allocated to the 
Secretary of Agriculture for use in funding adaptation activities 
carried out on national forests and national grasslands under the 
jurisdiction of the Forest Service, or pursuant to the cooperative 
Wings Across the Americas Program.
    (e) Environmental Protection Agency.--Of the amounts made available 
each fiscal year to carry out this section, 5 percent shall be 
allocated to the Administrator for use in adaptation activities 
restoring and protecting--
            (1) large-scale freshwater aquatic ecosystems, such as the 
        Everglades, the Great Lakes, Flathead Lake, the Missouri River, 
        the Mississippi River, the Colorado River, the Sacramento-San 
        Joaquin Rivers, the Ohio River, the Columbia-Snake River 
        System, the Apalachicola, Chattahoochee, and Flint River 
        System, the Connecticut River, and the Yellowstone River;
            (2) large-scale estuarine ecosystems, such as Chesapeake 
        Bay, Long Island Sound, Puget Sound, the Mississippi River 
        Delta, the San Francisco Bay Delta, Narragansett Bay, and 
        Albemarle-Pamlico Sound; and
            (3) freshwater and estuarine ecosystems, watersheds, and 
        basins identified as priorities by the Administrator, working 
        in cooperation with other Federal agencies, States, local 
        governments, scientists, and other conservation partners.
    (f) Corps of Engineers.--Of the amounts made available annually to 
carry out this section, 10 percent shall be available to the Secretary 
of the Army for use by the Corps of Engineers to carry out adaptation 
activities restoring--
            (1) large-scale freshwater aquatic ecosystems, such as the 
        ecosystems described in subsection (e)(1);
            (2) large-scale estuarine ecosystems, such as the 
        ecosystems described in subsection (e)(2);
            (3) freshwater and estuarine ecosystems, watersheds, and 
        basins identified as priorities by the Corps of Engineers, 
        working in cooperation with other Federal agencies, States, 
        local governments, scientists, and other conservation partners; 
        and
            (4) habitats and ecosystems through the implementation of 
        estuary habitat restoration projects authorized by the Estuary 
        Restoration Act of 2000 (33 U.S.C. 2901 et seq.), project 
        modifications for improvement of the environment, aquatic 
        restoration and protection projects authorized by section 206 
        of the Water Resources Development Act of 1996 (33 U.S.C. 
        2330), and other appropriate programs and activities.
    (g) Department of Commerce.--Of the amounts made available each 
fiscal year to carry out this section, 10 percent shall be allocated to 
the Secretary of Commerce for use in funding adaptation activities to 
protect, maintain, and restore coastal, estuarine, and marine 
resources, habitats, and ecosystems, including such activities carried 
out under--
            (1) the coastal and estuarine land conservation program;
            (2) the community-based restoration program;
            (3) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
        et seq.), that State coastal agencies shall incorporate in 
        accordance with coastal zone management plan elements that 
        are--
                    (A) developed by a coastal state and approved by 
                the Secretary of Commerce in accordance with section 
                306 of the Coastal Zone Management Act of 1972 (16 
                U.S.C. 1455);
                    (B) consistent with the national adaptation 
                strategy established by the President under subsection 
                (i); and
                    (C) specifically designed to strengthen the ability 
                of coastal, estuarine, and marine resources, habitats, 
                and ecosystems to adapt to and withstand the impacts 
                of--
                            (i) global warming; and
                            (ii) where practicable, ocean 
                        acidification;
            (4) the Open Rivers Initiative;
            (5) the Magnuson-Stevens Fishery Conservation and 
        Management Act (16 U.S.C. 1801 et seq.);
            (6) the Marine Mammal Protection Act of 1972 (16 U.S.C. 
        1361 et seq.);
            (7) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.);
            (8) the Marine Protection, Research, and Sanctuaries Act of 
        1972 (33 U.S.C. 1401 et seq.); and
            (9) the Coral Reef Conservation Act of 2000 (16 U.S.C. 6401 
        et seq.).
    (h) Cost Sharing.--Notwithstanding any other provision of law, a 
State or Indian tribe that receives a grant under paragraph (1) or (4) 
of subsection (b) shall use funds from non-Federal sources to pay 10 
percent of the costs of each activity carried out using amounts under 
the grant.
    (i) National Adaptation Strategy.--
            (1) In general.--Funds made available under paragraphs (2), 
        (3), and (4) of subsection (b) and subsections (c) through (g) 
        shall be used only for adaptation activities that are 
        consistent with the national adaptation strategy developed by 
        the President under this subsection.
            (2) National adaptation strategy.--
                    (A) In general.--Not later than 3 years after the 
                date of enactment of this Act, the President shall 
                develop and implement a national adaptation strategy 
                for assisting fish and wildlife, fish and wildlife 
                habitat, plants, and associated ecological processes in 
                becoming more resilient and adapting to the impacts of 
                climate change and ocean acidification.
                    (B) Administration.--In establishing and revising 
                the national adaptation strategy, the President shall--
                            (i) base the strategy on the best available 
                        science, as identified by the Science Advisory 
                        Board established under subparagraph (D);
                            (ii) develop the strategy in coordination 
                        with the National Climate Change Adaptation 
                        Program established under subtitle F of this 
                        title;
                            (iii) develop the strategy in cooperation 
                        with State fish and wildlife agencies, State 
                        coastal agencies, United States territories, 
                        and Indian tribes;
                            (iv) coordinate with the Secretary of the 
                        Interior, the Secretary of Commerce, the 
                        Secretary of Agriculture, the Secretary of 
                        Defense, the Administrator of the Environmental 
                        Protection Agency, and other agencies as 
                        appropriate;
                            (v) consult with local governments, 
                        conservation organizations, scientists, and 
                        other interested stakeholders; and
                            (vi) provide public notice and opportunity 
                        for comment.
                    (C) Contents.--The President shall include in the 
                national adaptation strategy, at a minimum, prioritized 
                goals and measures and a schedule for implementation--
                            (i) to identify and monitor fish and 
                        wildlife, fish and wildlife habitat, plants, 
                        and associated ecological processes that are 
                        particularly likely to be adversely affected by 
                        climate change and ocean acidification and have 
                        the greatest need for conservation;
                            (ii) to identify and monitor coastal, 
                        estuarine, marine, terrestrial, and freshwater 
                        habitats that are at the greatest risk of being 
                        damaged by climate change and ocean 
                        acidification;
                            (iii) to assist species in adapting to the 
                        impacts of climate change and ocean 
                        acidification;
                            (iv) to protect, acquire, maintain, and 
                        restore fish and wildlife habitat to build 
                        resilience to climate change and ocean 
                        acidification;
                            (v) to provide habitat linkages and 
                        corridors to facilitate fish, wildlife, and 
                        plant movement in response to climate change 
                        and ocean acidification;
                            (vi) to restore and protect ecological 
                        processes that sustain fish, wildlife, and 
                        plant populations that are vulnerable to 
                        climate change and ocean acidification;
                            (vii) to protect, maintain, and restore 
                        coastal, marine, and aquatic ecosystems so that 
                        the ecosystems are more resilient and better 
                        able to withstand the further stresses 
                        associated with climate change, including 
                        relative sea level rise and ocean 
                        acidification;
                            (viii) to protect ocean and coastal species 
                        from the impact of climate change and ocean 
                        acidification;
                            (ix) to incorporate adaptation strategies 
                        and activities to address relative sea level 
                        rise in coastal zone planning;
                            (x) to protect, maintain, and restore ocean 
                        and coastal habitats to build healthy and 
                        resilient ecosystems, including the purchase of 
                        coastal and island land; and
                            (xi) to incorporate consideration of 
                        climate change and ocean acidification, and to 
                        integrate adaptation strategies and activities 
                        for fish and wildlife, fish and wildlife 
                        habitat, plants, and associated ecological 
                        processes, in the planning and management of 
                        Federal land and water administered by the 
                        Federal agencies that receive funding under 
                        this section.
                    (D) Science advisory board.--
                            (i) Establishment.--Not later than 180 days 
                        after the date of enactment of this Act, the 
                        Secretary shall establish and appoint the 
                        members of a Science Advisory Board, to be 
                        comprised of not fewer than 10 and not more 
                        than 20 members--
                                    (I) at least \3/4\ of whom are 
                                recommended by the President of the 
                                National Academy of Sciences;
                                    (II) who have expertise in fish, 
                                wildlife, plant, aquatic, and coastal 
                                and marine biology, ecology, climate 
                                change, ocean acidification, and other 
                                relevant scientific disciplines; and
                                    (III) who represent a balanced 
                                membership among Federal, State, and 
                                local representatives, universities, 
                                and conservation organizations.
                            (ii) Duties.--The Science Advisory Board 
                        shall--
                                    (I) advise the President and 
                                relevant Federal agencies and 
                                departments on--
                                            (aa) the best available 
                                        science regarding the impacts 
                                        of climate change and ocean 
                                        acidification on fish and 
                                        wildlife, habitat, plants, and 
                                        associated ecological 
                                        processes; and
                                            (bb) scientific strategies 
                                        and mechanisms for adaptation; 
                                        and
                                    (II) identify and recommend 
                                priorities for ongoing research needs 
                                on those issues.
                            (iii) Collaboration.--The Science Advisory 
                        Board shall collaborate with other climate 
                        change and ecosystem research entities in other 
                        Federal agencies and departments.
                            (iv) Availability to public.--The advice 
                        and recommendations of the Science Advisory 
                        Board shall be made available to the public.
                            (v) Nonapplicability of faca.--The Federal 
                        Advisory Committee Act (5 U.S.C. App.) shall 
                        not apply to the Science Advisory Board.
                    (E) Coordination with other plans.--In developing 
                and revising the national adaptation strategy, the 
                President shall, to the maximum extent practicable--
                            (i) take into consideration research and 
                        information contained in--
                                    (I) National Climate Change 
                                Vulnerability Assessments developed 
                                under section 366 of this Act;
                                    (II) State comprehensive wildlife 
                                conservation plans;
                                    (III) the North American waterfowl 
                                management plan;
                                    (IV) the national fish habitat 
                                action plan;
                                    (V) coastal zone management plans;
                                    (VI) the reports of the Pew Oceans 
                                Commission and the United States 
                                Commission on Ocean Policy; and
                                    (VII) other relevant plans; and
                            (ii) coordinate and integrate the goals and 
                        measures identified in the national strategy 
                        with the goals and measures identified in those 
                        plans.
                    (F) Revisions.--Not later than 4 years after the 
                date on which the national adaptation strategy is 
                developed, and not less frequently than every 4 years 
                thereafter, the President shall review and update the 
                strategy using the procedures described in this 
                paragraph.
    (j) State Comprehensive Adaptation Strategies.--
            (1) In general.--Except as provided in paragraph (2), funds 
        made available to States under this subtitle shall be used only 
        for activities that are consistent with a State strategy that 
        has been approved by--
                    (A) the Secretary of the Interior; and
                    (B) for any State with a coastal zone (as that term 
                is used in the Coastal Zone Management Act of 1972 (16 
                U.S.C. 1451 et seq.)), the Secretary of Commerce, with 
                respect to portions of the strategy relating to 
                activities affecting the coastal zone.
            (2) Initial period.--
                    (A) In general.--Until the earlier of the date that 
                is 3 years after the date of enactment of this Act or 
                the date on which a State receives approval for a State 
                strategy from the Secretary of the Interior and the 
                Secretary of Commerce in accordance with paragraph (1), 
                a State shall be eligible to receive funding under 
                subsection (b)(1) for adaptation activities that are--
                            (i) consistent with the Comprehensive 
                        Wildlife Conservation Strategy of the State as 
                        approved by the Director of the United States 
                        Fish and Wildlife Service and, where 
                        appropriate, other fish, wildlife and 
                        conservation strategies; and
                            (ii) in accordance with a workplan 
                        developed by the State in coordination with--
                                    (I) the Secretary of the Interior; 
                                and
                                    (II) for any State with a coastal 
                                zone (as that term is used in the 
                                Coastal Zone Management Act of 1972 (16 
                                U.S.C. 1451 et seq.)), the Secretary of 
                                Commerce with respect to portions of 
                                the strategy relating to activities 
                                affecting the coastal zone.
                    (B) Pending approval.--During the period for which 
                approval by the applicable Secretary of a State 
                strategy described in paragraph (3) is pending, the 
                State may continue receiving funds under subsection 
                (b)(1) pursuant to the workplan described subparagraph 
                (A)(ii).
            (3) Requirements.--To be eligible for approval by the 
        Secretary of the Interior and the Secretary of Commerce under 
        this section, a State strategy must--
                    (A) describe the impacts of climate change and 
                ocean acidification on the diversity and health of the 
                fish, wildlife and plant populations, habitats, and 
                associated ecological processes;
                    (B) describe and prioritize proposed conservation 
                actions to assist fish, wildlife, and plant populations 
                in adapting to those impacts;
                    (C) establish programs for monitoring the impacts 
                of climate change on fish, wildlife, and plant 
                populations, habitats, and associated ecological 
                processes;
                    (D) include strategies, specific conservation 
                actions, and a timeframe for implementing conservation 
                actions for fish, wildlife, and plant populations, 
                habitats, and associated ecological processes;
                    (E) establish methods for assessing the 
                effectiveness of conservation actions taken to assist 
                fish, wildlife, and plant populations, habitats, and 
                associated ecological processes in adapting to those 
                impacts and for updating those actions to respond 
                appropriately to new information or changing 
                conditions;
                    (F) be developed--
                            (i) with the participation of the State 
                        fish and wildlife agency, the State agency 
                        responsible for administration of Land and 
                        Water Conservation Fund grants, the State 
                        Forest Legacy program coordinator, and the 
                        State coastal agency; and
                            (ii) in coordination with the Secretary of 
                        the Interior and, where applicable, the 
                        Secretary of Commerce;
                    (G) provide for solicitation and consideration of 
                public and independent scientific input;
                    (H) take into consideration research and 
                information contained in, and coordinate with and 
                integrate the goals and measures identified in, as 
                appropriate, other fish, wildlife, and habitat 
                conservation strategies, including--
                            (i) the national fish habitat action plan;
                            (ii) plans under the North American 
                        Wetlands Conservation Act (16 U.S.C. 4401 et 
                        seq.);
                            (iii) the Federal, State, and local 
                        partnership known as ``Partners in Flight'';
                            (iv) federally approved coastal zone 
                        management plans under the Coastal Zone 
                        Management Act of 1972 (16 U.S.C. 1451 et 
                        seq.);
                            (v) regional fishery management plans and 
                        habitat conservation activities under the 
                        Magnuson-Stevens Fishery Conservation and 
                        Management Act (16 U.S.C. 1801 et seq.);
                            (vi) the National Action Plan to Conserve 
                        Coral Reefs developed by the United States 
                        Coral Reef Task Force;
                            (vii) recovery plans for threatened species 
                        and endangered species under section 4(f) of 
                        the Endangered Species Act of 1973 (16 U.S.C. 
                        1533(f));
                            (viii) habitat conservation plans under 
                        section 10 of that Act (16 U.S.C. 1539);
                            (ix) other Federal and State plans for 
                        imperiled species;
                            (x) the United States shorebird 
                        conservation plan;
                            (xi) the North American waterbird 
                        conservation plan; and
                            (xii) other State-based strategies that 
                        comprehensively implement adaptation activities 
                        to remediate the effects of climate change and 
                        ocean acidification on fish, wildlife, and 
                        habitats; and
                    (I) be incorporated into a revision of the 
                Comprehensive Wildlife Conservation Strategy of a 
                State--
                            (i) that has been submitted to the United 
                        States Fish and Wildlife Service; and
                            (ii)(I) that has been approved by the 
                        Service; or
                            (II) on which a decision on approval is 
                        pending.
            (4) Updating.--Each State strategy approved by the 
        Secretary of the Interior and the Secretary of Commerce must be 
        updated at least every 5 years.

    Subtitle H--Climate Change Education and Centers for Excellence

SEC. 381. PURPOSES.

    The purposes of this subtitle are--
            (1) to promote citizen awareness of climate change, 
        including the causes and impacts of climate change and 
        greenhouse gas reduction strategies, by supporting the 
        development and implementation of informal and formal public 
        education initiatives in this area; and
            (2) to establish national centers for excellence to 
        encourage collaborative research, information-sharing, and 
        public education and outreach in a variety of issue areas 
        relating to climate change.

SEC. 382. FUNDING.

    For purposes of this subtitle, the term ``Climate Change Education 
and Outreach Fund'' means the Climate Change Education and Outreach 
Fund established under section 722 of the Clean Air Act (as added by 
section 101 of this Act). Funds deposited in the Climate Change 
Education and Outreach Fund shall be available, without further 
appropriation or fiscal year limitation, to carry out this subtitle.

SEC. 383. NATIONAL SCIENCE FOUNDATION CLIMATE CHANGE EDUCATION 
              PROGRAMS.

    (a) Allocation.--In each of fiscal years 2010 through 2050, the 
Director of the National Science Foundation shall use 30 percent of the 
funds deposited in the Climate Change Education and Outreach Fund to 
carry out this section. Funding provided under this section shall be in 
addition to any funding that is otherwise authorized or appropriated.
    (b) Program.--
            (1) Establishment.--The Director of the National Science 
        Foundation shall establish a Climate Change Education Program 
        to--
                    (A) broaden public understanding of climate change, 
                possible long-term and short-term consequences, and 
                potential solutions;
                    (B) apply the latest scientific and technological 
                discoveries to provide formal and informal learning 
                opportunities to people of all ages, including those of 
                diverse cultural and linguistic backgrounds; and
                    (C) emphasize actionable information to help people 
                understand and to promote implementation of new 
                technologies, programs, and incentives related to 
                energy conservation, renewable energy, and greenhouse 
                gas reduction.
            (2) Program elements.--The Climate Change Education Program 
        shall include--
                    (A) a national information campaign to disseminate 
                information on and promote implementation of the new 
                technologies, programs, and incentives described in 
                paragraph (1)(C); and
                    (B) a competitive grant program to provide grants 
                to State and local governments, educational 
                institutions, and other organizations to--
                            (i) create informal education materials, 
                        exhibits, and multimedia presentations relevant 
                        to climate change and climate science;
                            (ii) develop climate science kindergarten 
                        through grade 12 curriculum and supplementary 
                        educational materials; or
                            (iii) publish climate change and climate 
                        science information in print, electronic, and 
                        audio-visual forms.

SEC. 384. ENVIRONMENTAL PROTECTION AGENCY CLIMATE CHANGE EDUCATION 
              PROGRAM.

    In each of fiscal years 2010 through 2050, the Administrator shall 
use 10 percent of the funds deposited in the Climate Change Education 
and Outreach Fund to develop educational materials related to climate 
change, climate science, and greenhouse gas reduction strategies for 
use by educators, kindergarten through grade 12 students, businesses, 
communities, and the general public.

SEC. 385. CLIMATE CHANGE CENTERS FOR EXCELLENCE.

    (a) In General.--In each of fiscal years 2010 through 2050, the 
President, through such Federal agency or agencies as the President may 
designate, shall use 60 percent of the funds deposited during the 
fiscal year in the Climate Change Education and Outreach Fund to 
provide cost-sharing grants to support the establishment and 
maintenance of centers for excellence in accordance with this section.
    (b) Types of Centers.--Grants shall be provided to eligible 
entities to establish and maintain one or more centers for excellence 
focusing on each of the following areas:
            (1) Climate change science, including scientific assessment 
        of the effectiveness of public policies related to climate 
        change.
            (2) Renewable energy technologies and policies.
            (3) Energy efficiency technologies and policies.
            (4) Policies to reduce vehicle miles traveled.
            (5) Greenhouse gas management in the agriculture and 
        forestry sectors.
            (6) Adaptation to adverse impacts of climate change, 
        including impacts on public health, public infrastructure, 
        agriculture, and conservation of natural resources.
    (c) Functions.--Each center for excellence receiving assistance 
under this section shall, with respect to such center's designated 
focus--
            (1) serve as a national clearinghouse for information and 
        best-practices;
            (2) develop and implement public education and outreach 
        initiatives, including training and technical assistance where 
        appropriate; and
            (3) provide a forum for communication and collaboration 
        among governmental and nongovernmental stakeholders and 
        researchers.
    (d) Eligible Entities.--Entities eligible to receive grants to 
establish centers for excellence under this section shall be limited 
to--
            (1) colleges and universities located in the United States; 
        and
            (2) not-for-profit nongovernmental organizations 
        headquartered in the United States.
    (e) Regulations; Selection Criteria.--The agency or agencies to 
which the President delegates authority to provide grants under this 
section shall, not later than January 1, 2010, promulgate regulations 
providing for the implementation of this section. Such regulations 
shall include objective criteria for the competitive selection of grant 
recipients under this section.

                  TITLE IV--ENCOURAGING GLOBAL ACTION

            Subtitle A--International Forest Protection Fund

SEC. 401. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) land-use change and forest sector emissions account for 
        approximately 20 percent of global greenhouse gas emissions;
            (2) land conversion and deforestation are 2 of the largest 
        sources of greenhouse gas emissions in the developing world, 
        amounting to roughly 40 percent of the total greenhouse gas 
        emissions of the developing world;
            (3) with sufficient data, deforestation rates and forest 
        carbon stocks can be measured with an acceptable level of 
        uncertainty; and
            (4) land conversion and deforestation in the developing 
        world have significant adverse environmental and social impacts 
        not related to climate, including loss of ecosystem services, 
        biodiversity, and forest-related livelihoods.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to provide financial incentives to developing countries 
        to encourage--
                    (A) reductions in deforestation and forest 
                degradation; and
                    (B) increases in sequestration of carbon through 
                afforestation, restoration of forests and degraded land 
                that had not been forested prior to restoration, and 
                improved forest management; and
            (2) to provide such incentives in a manner that will--
                    (A) achieve substantial and cost-effective 
                reductions in global greenhouse gas emissions;
                    (B) encourage participation by developing countries 
                in greenhouse gas limitation regimes; and
                    (C) secure nonclimate environmental and social 
                benefits, including conservation of forest ecosystems 
                and biodiversity and protection of the livelihoods and 
                cultural resources of indigenous and other forest-
                dependent people in developing countries.

SEC. 402. DEFINITIONS.

    In this subtitle:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committees on Energy and Commerce and 
                Foreign Affairs of the House of Representatives; and
                    (B) the Committees on Environment and Public Works, 
                Energy and Natural Resources, and Foreign Relations of 
                the Senate.
            (2) Forest carbon activities.--The term ``forest carbon 
        activities'' means activities in developing countries that are 
        directed at--
                    (A) reducing greenhouse gas emissions from 
                deforestation and forest degradation; and
                    (B) increasing sequestration of carbon through 
                afforestation, restoration of forests and degraded land 
                that had not been forested prior to restoration, and 
                improved forest management.

SEC. 403. FUNDING.

    (a) In General.--The Administrator, in consultation with the 
Secretary of State, is authorized to provide assistance from the 
International Forest Protection Fund, established under section 722 of 
the Clean Air Act (as added by section 101 of this Act), in accordance 
with this subtitle. Amounts deposited in the International Forest 
Protection Fund shall be available for expenditure, without further 
appropriation or fiscal year limitation, to carry out this subtitle.
    (b) Distribution of Assistance.--
            (1) In general.--The Administrator shall distribute 
        assistance from the International Forest Protection Fund--
                    (A) directly;
                    (B) through agreements with the International Bank 
                for Reconstruction and Development (commonly known as 
                the World Bank) or another international development 
                institution;
                    (C) through an international fund created pursuant 
                to the United Nations Framework Convention on Climate 
                Change, done at New York on May 9, 1992, or an 
                agreement negotiated under such convention; or
                    (D) through some combination of the mechanisms 
                identified in subparagraphs (A) through (C).
            (2) Distribution through international institution or 
        fund.--If assistance is distributed through an international 
        institution or fund, as authorized in paragraph (1), the 
        Administrator shall ensure the establishment and implementation 
        of adequate mechanisms to apply and enforce the eligibility 
        requirements in section 404 and other requirements of this 
        subtitle.

SEC. 404. ELIGIBILITY REQUIREMENTS AND STANDARDS FOR FOREST CARBON 
              ACTIVITIES.

    Not later than January 1, 2010, the Administrator, in consultation 
with the Secretary of State and the Secretary of Agriculture, shall 
promulgate eligibility requirements and accounting, measurement, 
monitoring, and verification standards for forest carbon activities, 
including requirements--
            (1) for the establishment and periodic updating of 
        national-level greenhouse gas emissions and biological 
        sequestration reference scenarios for the forest sector;
            (2) ensuring that forest carbon activities achieve 
        reductions in greenhouse gas emissions or increases in 
        sequestration of carbon that are real, permanent, additional, 
        verifiable, and enforceable;
            (3) ensuring reliable measurement, monitoring, and 
        verification of emission reductions or increases in biological 
        sequestration;
            (4) ensuring appropriate accounting for any significant 
        increases in greenhouse gas emissions or decreases in 
        biological sequestration directly or indirectly caused by 
        forest carbon activities;
            (5) providing for discounting of emission reductions or 
        increases in biological sequestration based on uncertainty;
            (6) that forest carbon activities be carried out and 
        managed--
                    (A) in accordance with widely accepted 
                environmentally sustainable forestry practices; and
                    (B) with appropriate regard for the rights and 
                interests of indigenous peoples and communities that 
                reside in, or depend on, forests; and
            (7) that forest carbon activities be designed--
                    (A) to promote native species and restoration of 
                native forests, where practicable; and
                    (B) to avoid the introduction of invasive nonnative 
                species.

SEC. 405. ASSISTANCE FOR FOREST CARBON ACTIVITIES.

    (a) Eligible Countries.--The Administrator, in consultation with 
the Secretary of State, shall identify and periodically update a list 
of developing countries that have--
            (1) demonstrated capacity to participate in forest carbon 
        activities, including--
                    (A) sufficient historical data on changes in 
                national forest carbon stocks;
                    (B) technical capacity to monitor and measure 
                forest carbon fluxes with an acceptable level of 
                uncertainty; and
                    (C) institutional capacity to reduce emissions from 
                deforestation and degradation;
            (2) established a national greenhouse gas emission 
        reference scenario based on historical data; and
            (3) commenced a greenhouse gas emission reduction program 
        for the forest sector.
    (b) Requirements for Assistance.--Countries on the list established 
under subsection (a) shall be eligible for assistance under this 
section for the achievement, through forest carbon activities 
implemented in accordance with the requirements established under 
section 404, of--
            (1) national-level net reductions in greenhouse gas 
        emissions from reduced deforestation and forest degradation, as 
        demonstrated using remote sensing technology that meets 
        international standards; and
            (2) national-level net increases in sequestration of carbon 
        through afforestation, restoration of forests and degraded land 
        that had not been forested prior to restoration, and improved 
        forest management.
    (c) Verification of Achievements.--The Administrator, in 
consultation with the Secretary of State, shall periodically review 
relevant data and make determinations regarding achievements under 
subsection (b).
    (d) Level of Assistance.--The Administrator shall establish a 
formula governing the distribution of assistance under this section, 
which shall be designed to--
            (1) maximize the reductions in greenhouse gas emissions or 
        increases in biological sequestration per dollar of assistance 
        provided; and
            (2) take into account past actions in each eligible country 
        to reduce greenhouse gas emissions or increase biological 
        sequestration, so as not to penalize countries that have taken 
        early action.

SEC. 406. CAPACITY-BUILDING GRANTS.

    (a) In General.--For fiscal years 2010 through 2020, the 
Administrator may use up to 40 percent of funds deposited in the 
International Forest Protection Fund to provide cost-sharing grants to 
build the capacity of developing countries not included in the list 
established under section 405(a) to carry out forest carbon activities 
otherwise eligible for assistance under section 405.
    (b) Nature of Assistance.--Cost-sharing grants provided under this 
section may be used to assist recipient countries to--
            (1) develop and demonstrate capacity to carry out eligible 
        forest carbon activities, including through--
                    (A) development of sufficient historical data on 
                changes in national forest carbon stocks;
                    (B) development of technical capacity to measure 
                and monitor forest carbon fluxes with an acceptable 
                level of uncertainty; and
                    (C) development of institutional capacity to reduce 
                emissions from deforestation and forest degradation;
            (2) establish a national greenhouse gas emission reference 
        scenario based on historical data; and
            (3) commence an emission reduction program for the forest 
        sector.

SEC. 407. ANNUAL REPORTS.

    Not later than March 1, 2012, and annually thereafter, the 
President shall submit to the appropriate congressional committees a 
report on the assistance provided under this subtitle during the prior 
fiscal year. The report shall include--
            (1) a description of the amount of obligations and 
        expenditures for assistance provided to each eligible country 
        during the prior fiscal year;
            (2) a description of the forest carbon activities and 
        capacity-building activities funded through assistance provided 
        under this subtitle, including the amount of obligations and 
        expenditures for assistance provided to such activities, during 
        the prior fiscal year; and
            (3) an estimate of the greenhouse gas emission reductions 
        or biological sequestration achieved by assistance provided 
        under this subtitle during the prior fiscal year.

            Subtitle B--International Clean Technology Fund

SEC. 411. PURPOSES.

    The purposes of this subtitle are--
            (1) to provide United States assistance to encourage 
        widespread deployment, in developing countries, of technologies 
        that reduce greenhouse gas emissions; and
            (2) to provide such assistance in a manner that encourages 
        such countries to adopt policies and measures that 
        substantially reduce emissions of greenhouse gases.

SEC. 412. DEFINITIONS.

    In this subtitle:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committees on Energy and Commerce and 
                Foreign Affairs of the House of Representatives; and
                    (B) the Committees on Environment and Public Works, 
                Energy and Natural Resources, and Foreign Relations of 
                the Senate.
            (2) Comparable action.--The term ``comparable action'' has 
        the meaning given such term in section 761(1) of the Clean Air 
        Act (as added by section 101 of this Act).
            (3) Eligible country.--The term ``eligible country'' means 
        a foreign country that is determined by the President, under 
        section 414, to be eligible to receive assistance from the 
        International Clean Technology Fund.
            (4) Interagency group.--The term ``interagency group'' 
        means the group established by the President under section 
        413(a) to administer the International Clean Technology Fund.
            (5) International clean technology fund.--The term 
        ``International Clean Technology Fund'' means the International 
        Clean Technology Fund established under section 722 of the 
        Clean Air Act (as added by section 101 of this Act).

SEC. 413. INTERAGENCY GROUP.

    (a) Interagency Group.--The President shall establish an 
interagency group to administer the International Clean Technology 
Fund. The interagency group shall include--
            (1) the Secretary of State;
            (2) the Administrator;
            (3) the Secretary of Energy;
            (4) the Secretary of the Treasury; and
            (5) any other head of a Federal department or agency the 
        President determines to be appropriate.
    (b) Chairperson.--The Secretary of State shall serve as the 
chairperson of the interagency group.

SEC. 414. DETERMINATION OF ELIGIBLE COUNTRIES.

    (a) Publication and Revision of List.--Not later than January 1, 
2011, and annually thereafter through 2050, the President shall 
determine and publish in the Federal Register a list of countries 
eligible for assistance under this subtitle.
    (b) Criteria for Eligibility.--The criteria for designation as an 
eligible country shall include the following:
            (1) The country is a developing country.
            (2) The country is responsible for at least 1 percent of 
        annual global greenhouse gas emissions, excluding emissions 
        from land-use, land-use change, and forestry.
            (3) The President has determined, pursuant to section 
        764(b) of the Clean Air Act (as added by section 101 of this 
        Act), that the country has taken comparable action.
            (4) Such other criteria as the President determines will 
        serve the purposes of this Act or other United States foreign 
        policy and national security objectives.

SEC. 415. FUNDING.

    (a) In General.--The Secretary of State is authorized to provide 
assistance from the International Clean Technology Fund for projects 
(which may include sector-based policies and measures) in eligible 
countries that are approved by the interagency group under this 
section. Amounts in the International Clean Technology Fund shall be 
available for expenditure, without further appropriation or fiscal year 
limitation to carry out this subtitle.
    (b) Forms of Assistance.--Assistance under this subtitle may be 
provided in the form of grants, loans, or a combination thereof.
    (c) Distribution of Assistance.--
            (1) In general.--The Secretary of State, in coordination 
        with the interagency group, shall distribute assistance from 
        the International Clean Technology Fund--
                    (A) directly;
                    (B) through agreements with the International Bank 
                for Reconstruction and Development (commonly known as 
                the World Bank) or another international development 
                institution;
                    (C) through an international fund created pursuant 
                to the United Nations Framework Convention on Climate 
                Change, done at New York on May 9, 1992, or an 
                agreement negotiated under such convention; or
                    (D) through some combination of the mechanisms 
                identified in subparagraphs (A) through (C).
            (2) Distribution through international institution or 
        fund.--If assistance is distributed through an international 
        institution or fund, as authorized in paragraph (1), the 
        Secretary of State and the interagency group shall ensure the 
        establishment and implementation of adequate mechanisms to 
        apply and enforce the project selection criteria and other 
        requirements of this subtitle.
    (d) Procedures for Review of Proposals.--The Secretary of State, in 
conjunction with the interagency group, shall develop procedures for 
requesting, reviewing, and approving project proposals from eligible 
countries.
    (e) Eligible Project Categories.--Assistance under this subtitle 
shall be limited to projects in the following categories:
            (1) Capture and geological sequestration of carbon dioxide 
        emissions from electric generating units or large industrial 
        sources.
            (2) Renewable electricity generation from wind, solar, 
        biomass, geothermal, marine, or hydrokinetic sources.
            (3) Production of renewable fuels that have lifecycle 
        greenhouse gas emissions that are substantially lower than 
        those attributable to fossil fuel-based alternatives.
            (4) Increased efficiency in transmission, distribution, or 
        consumption of electricity.
    (f) Criteria for Project Selection.--Not later than January 1, 
2011, the interagency group shall develop a set of criteria to be used 
in determining whether to provide assistance to proposals for projects 
in eligible countries. These criteria shall provide that--
            (1) the project falls within an eligible project category 
        identified in subsection (e);
            (2) the project will result in measurable and substantial 
        reductions in greenhouse gas emissions relative to business-as-
        usual emissions;
            (3) the project will not result in significant increases in 
        greenhouse gas emissions outside the boundaries of the project 
        relative to business-as-usual emissions;
            (4) the project will not have significant adverse effects 
        on human health, safety, or welfare, the environment, or 
        natural resources within or outside the boundaries of the 
        project;
            (5) the project owner or operator must demonstrate capacity 
        to implement and maintain any technologies purchased or 
        installed with assistance from the Fund;
            (6) the project is not likely to cause a significant loss 
        of United States jobs or a significant displacement of United 
        States production; and
            (7) the project meets such other requirements as the 
        interagency group determines appropriate to further the 
        purposes of this subtitle.
    (g) Selection of Eligible Projects.--In determining which eligible 
projects will receive assistance under this subtitle, the interagency 
group shall apply the criteria established under this section and shall 
seek to maximize greenhouse gas emission reductions achieved per dollar 
of assistance provided. Preference shall be given to projects that are 
co-financed by international development banks, private-sector 
institutions, or host-country governments.
    (h) Monitoring, Evaluation, and Enforcement.--The Secretary of 
State, in coordination with the interagency group, shall establish and 
implement a system to monitor and evaluate the performance of projects 
receiving assistance under this subtitle. The Secretary of State shall 
have the authority to suspend or terminate assistance in whole or in 
part for a project if it is determined that the project is not 
operating in compliance with the approved proposal.

SEC. 416. ANNUAL REPORTS.

    Not later than March 1, 2012, and annually thereafter, the 
President shall submit to the appropriate congressional committees a 
report on the assistance provided under this subtitle during the prior 
fiscal year. The report shall include--
            (1) a description of the amount of obligations and 
        expenditures for assistance provided to each eligible country 
        during the prior fiscal year;
            (2) a description of each project that received assistance, 
        including the amount of obligations and expenditures for 
        assistance provided to such project, during the prior fiscal 
        year; and
            (3) an estimate of the greenhouse gas emission reductions 
        achieved by assistance provided under this subtitle during the 
        prior fiscal year.

      Subtitle C--International Climate Change Adaptation Program

SEC. 421. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) global climate change is a potentially significant 
        threat multiplier for instability around the world and is 
        likely to exacerbate competition and conflict over 
        agricultural, vegetative, marine, and water resources and 
        displace people, thus increasing hunger and poverty and causing 
        increased pressure on developing countries;
            (2) the strategic, social, political, economic, cultural, 
        and environmental consequences of global climate change are 
        likely to have disproportionate impacts on developing 
        countries, which have less economic and financial capacity to 
        respond;
            (3) the countries most vulnerable to climate change, due 
        both to exposure to harmful impacts and to their lower capacity 
        to adapt, are developing countries with very low industrial 
        emissions that have contributed less to climate change than 
        more affluent countries;
            (4) developing countries rely to a much greater degree on 
        the natural and environmental systems likely to be affected by 
        climate change for sustenance and livelihoods, as well as 
        economic growth and stability;
            (5) the consequences of global climate change, including 
        increases in poverty and destabilization of economies and 
        societies, are likely to pose a long-term threat to the 
        national security, foreign policy, and economic interests of 
        the United States; and
            (6) it is in the national security, foreign policy, and 
        economic interests of the United States to recognize, plan for, 
        and mitigate the international strategic, social, political, 
        cultural, environmental and economic effects of a changing 
        climate and to assist developing countries to increase their 
        resilience to those effects.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to provide United States assistance to the most 
        vulnerable developing countries in order to support the 
        development and implementation of climate change adaptation 
        programs and projects that reduce the vulnerability and 
        increase the resilience of communities to climate change 
        impacts; and
            (2) to provide such assistance in a manner that promotes 
        and protects the national security, foreign policy, and 
        economic interests of the United States where such interests 
        can be advanced by minimizing, averting, or increasing 
        resilience to climate change impacts.

SEC. 422. DEFINITIONS.

    In this subtitle:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Energy and Commerce, the 
                Committee on Foreign Affairs, and any other relevant 
                committees on national security, the environment, and 
                foreign policy of the House of Representatives; and
                    (B) the Committees on Environment and Public Works, 
                Foreign Relations, and any other relevant committees on 
                national security, the environment, and foreign policy 
                of the Senate.
            (2) Most vulnerable developing countries.--The term ``most 
        vulnerable developing countries'' means, as determined by the 
        Administrator of USAID, developing countries that are most 
        vulnerable to climate change impacts, including countries 
        identified by the United Nations as least developed countries 
        and low-lying and other small island developing countries, and 
        other developing countries that are at risk of substantial 
        adverse impacts of climate change and have limited capacity to 
        respond to such impacts.
            (3) Program.--The term ``Program'' means the International 
        Climate Change Adaptation Program established under section 
        423.
            (4) USAID.--The term ``USAID'' means the United States 
        Agency for International Development.

SEC. 423. ESTABLISHMENT.

    The Secretary of State, working with the Administrator of USAID and 
the Administrator, shall establish an International Climate Change 
Adaptation Program within USAID.

SEC. 424. FUNCTIONS OF PROGRAM.

    (a) Activities and Foreign Aid.--
            (1) In general.--In order to achieve the purposes set forth 
        in section 421, the Program may carry out activities and 
        projects and make grants to any private or public group 
        (including public international organizations), association, or 
        other entity engaged in peaceful activities, to--
                    (A) provide assistance to the most vulnerable 
                developing countries for the development of national or 
                regional climate change adaptation plans, associated 
                national policies, and in the planning, financing, and 
                execution of adaptation projects;
                    (B) support investments, capacity-building 
                activities and other assistance, to reduce 
                vulnerability and promote community-level resilience 
                related to climate change and its impacts in the most 
                vulnerable developing countries, including impacts on 
                water availability, agricultural productivity, flood 
                risk, coastal resources, timing of seasons, 
                biodiversity, economic livelihoods, human migration, or 
                other social, economic, political, cultural, or 
                environmental matters;
                    (C) support climate change adaptation research in 
                or for the most vulnerable developing countries;
                    (D) encourage the protection and rehabilitation of 
                natural systems, the enhancement and diversification of 
                agricultural, fishery, and other livelihoods, and the 
                reduction of disaster risk, in order to reduce 
                vulnerability and provide increased resilience to 
                climate change for local communities and livelihoods in 
                the most vulnerable developing countries;
                    (E) support the deployment of technologies that 
                would help the most vulnerable developing countries 
                respond to destabilizing impacts of climate change and 
                encourage the identification and adoption of 
                appropriate renewable and efficient energy technologies 
                that are beneficial in increasing community-level 
                resilience to the impacts of global climate change in 
                those countries; and
                    (F) encourage the engagement of local communities 
                through full disclosure of information, consultation, 
                and with communities' informed participation relating 
                to the development of plans, programs and projects to 
                increase community-level resilience to climate change 
                impacts.
            (2) Limitation.--Not more than 10 percent of amounts made 
        available to carry out this subtitle shall be spent in any 
        single country in any year.
            (3) Prioritizing assistance.--In providing assistance under 
        this subtitle, the Administrator of USAID shall give priority 
        to countries that are most vulnerable to the adverse impacts of 
        climate change, determined as a function of the likelihood and 
        severity of such impacts and the country's capacity to adapt to 
        such impacts.
    (b) Community Engagement.--(1) The Administrator of USAID shall 
ensure that local communities in areas where any projects or activities 
are planned under the Program are engaged through full disclosure of 
information and public participation, and that any projects or 
activities are undertaken with the communities' informed consent.
    (2) For each country receiving assistance under the Program, the 
Administrator of USAID shall establish a process for consultation with 
and disclosure of information to local, national and international 
stakeholders regarding any projects and activities planned under the 
Program.
    (3) The Administrator of USAID shall, to the extent practicable, 
ensure that projects or activities under the Program are aligned with 
broader development, poverty alleviation, or natural resource 
management objectives and initiatives in the recipient country.
    (c) Reporting.--
            (1) Initial report.--Not later than 180 days after the date 
        of enactment of this Act, the Program shall submit to the 
        President and appropriate congressional committees an initial 
        report that--
                    (A) based on the most recent information available 
                from reliable public sources, identifies the developing 
                countries that are most vulnerable to climate change 
                impacts and in which assistance can have the greatest 
                and most sustainable benefit to reducing vulnerability 
                to climate change; and
                    (B) describes the process and methodology for 
                selecting the recipients of assistance or grants under 
                subsection (a)(1).
            (2) Annual reports.--Not later than 12 months after the 
        date on which the initial report is submitted, and annually 
        thereafter, the Program shall submit reports to the President 
        and appropriate congressional committees that--
                    (A) describe the extent to which global climate 
                change, through its potential negative impacts on 
                sensitive populations and natural resources in the most 
                vulnerable developed countries, may threaten, cause, or 
                exacerbate political, economic, environmental, cultural 
                or social instability or international conflict in 
                those regions;
                    (B) describe the ramifications of any potentially 
                destabilizing impacts climate change may have on the 
                national security, foreign policy, and economic 
                interests of the United States, including--
                            (i) the creation of refugees and internally 
                        displaced peoples;
                            (ii) international or internal armed 
                        conflicts over water, food, land, or other 
                        resources;
                            (iii) loss of agricultural and other 
                        livelihoods, cultural stability, and other 
                        causes of increased poverty and economic 
                        destabilization;
                            (iv) decline in availability of resources 
                        needed for survival, including water;
                            (v) increased impact of natural disasters, 
                        including severe weather events, droughts and 
                        flooding;
                            (vi) increased prevalence or virulence of 
                        climate-related diseases; and
                            (vii) intensified urban migration;
                    (C) describe how funds made available under section 
                425 were spent to enhance the national security, 
                foreign policy, and economic interests of the United 
                States and assist in avoiding the economically, 
                politically, environmentally, culturally, and socially 
                destabilizing impacts of climate change in most 
                vulnerable developing countries;
                    (D) identify and recommend the developing countries 
                that are most vulnerable to climate change impacts and 
                in which assistance can have the greatest and most 
                sustainable benefit to reducing vulnerability to 
                climate change, including in the form of deploying 
                technologies, investments, capacity-building 
                activities, and other types of assistance for 
                adaptation to climate change impacts and approaches to 
                reduce greenhouse gases in ways that can also provide 
                community-level resilience to climate change impacts; 
                and
                    (E) describe cooperation undertaken with other 
                nations and international organizations to carry out 
                this subtitle.

SEC. 425. FUNDING.

    (a) Carrying Out Recommendations.--All funds deposited into the 
International Climate Change Adaptation Fund established under section 
722 of the Clean Air Act (as added by section 101 of this Act) shall be 
made available, without further appropriation or fiscal year 
limitation, to carry out the Program established under this subtitle.
    (b) Distribution of Funds.--The Administrator of USAID shall 
distribute to the Program the funds for the purposes of this subtitle.
    (c) Oversight.--The Administrator of USAID shall oversee the 
expenditures by the Program.
    (d) Conditional Distribution to International Adaptation Funds.--
The Administrator of USAID is authorized to distribute up to 50 percent 
of the funds available to the Program to an international fund that 
meets the requirements of subsection (e), and shall annually certify in 
a report to Congress that any such international fund meets the 
requirements of subsection (e). The Administrator of USAID shall notify 
the appropriate congressional committees not less than 15 days prior to 
an allocation or transfer of funds pursuant to this subsection.
    (e) International Fund Eligibility.--An international fund is 
eligible for funding under the Program provided that it is created 
pursuant to the United Nations Framework Convention on Climate Change, 
done at New York on May 9, 1992, or an agreement negotiated under the 
Convention and that the agreement--
            (1) specifies the terms and conditions under which the 
        United States is to provide monies to the fund, and under which 
        the international fund is to disburse monies to recipient 
        countries;
            (2) ensures that United States assistance to the fund and 
        the principal and income of the fund are disbursed only for 
        purposes that are consistent with those described in section 
        421;
            (3) requires a regular meeting of a governing body of the 
        international fund that includes representation from most 
        vulnerable developing countries and provides full public 
        access;
            (4) requires that not more than 10 percent of the amounts 
        available to the fund be spent in any single country in any 
        year; and
            (5) requires the international fund to prepare and make 
        public an annual report that--
                    (A) identifies and recommends the developing 
                countries that are most vulnerable to climate change 
                impacts and in which assistance can have the greatest 
                and most sustainable benefit to reducing vulnerability 
                to climate change;
                    (B) describes the process and methodology for 
                selecting the recipients of assistance or grants from 
                the fund;
                    (C) describes specific programs and projects funded 
                by the international fund and the extent to which the 
                assistance is addressing the adaptation needs of the 
                most vulnerable developing countries;
                    (D) describes the performance goals for assistance 
                authorized under the fund and expresses such goals in 
                an objective and quantifiable form, to the extent 
                practicable;
                    (E) describes the performance indicators to be used 
                in measuring or assessing the achievement of the 
                performance goals described in subparagraph (D);
                    (F) provides a basis for recommendations for 
                adjustments to assistance authorized under this 
                subtitle to enhance the impact of such assistance; and
                    (G) describes the participation of other nations 
                and international organizations in funding and 
                governing the international fund.

SEC. 426. MONITORING AND EVALUATION OF PROGRAM.

    (a) In General.--The Administrator of USAID shall establish and 
implement a system to monitor and evaluate the effectiveness and 
efficiency of assistance provided under this subtitle in order to 
maximize the long-term sustainable development impact of such 
assistance, including the extent to which the assistance is meeting the 
purposes of this subtitle and addressing the adaptation needs of 
developing countries.
    (b) Goals.--In carrying out subsection (a), the Administrator of 
USAID shall--
            (1) in consultation with national governments in recipient 
        countries, establish performance goals for assistance 
        authorized under this subtitle and expresses such goals in an 
        objective and quantifiable form, to the extent practicable;
            (2) establish performance indicators to be used in 
        measuring or assessing the achievement of the performance goals 
        described in paragraph (1), including an evaluation of the 
        extent to which the Program provides for full disclosure of 
        information and consultation and informed participation by 
        local communities and an evaluation of the extent to which 
        local communities participated in the projects and programs 
        implemented under this subtitle and the impacts of local 
        community participation on the goals and objectives of the 
        projects and programs;
            (3) provide a basis for recommendations for adjustments to 
        assistance authorized under this subtitle to enhance the impact 
        of such assistance; and
            (4) include in the report to Congress and other relevant 
        agencies required under section 424(c), the monitoring and 
        evaluation of programs subject to this section in its findings.

TITLE V--LEGAL FRAMEWORK FOR GEOLOGICAL SEQUESTRATION OF CARBON DIOXIDE

SEC. 501. NATIONAL REGULATIONS.

    (a) In General.--Section 1421 of the Safe Drinking Water Act (42 
U.S.C. 300h) is amended--
            (1) in subsection (b)(1), by striking ``subsection (d)(2)'' 
        and inserting ``subsection (e)(2)'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting after subsection (c) the following:
    ``(d) Geological Sequestration of Carbon Dioxide.--
            ``(1) Regulations.--Not later than 1 year after the date of 
        enactment of the Investing in Climate Action and Protection 
        Act, the Administrator shall promulgate regulations for State 
        underground injection control programs establishing standards 
        for permitting commercial-scale underground injection of carbon 
        dioxide for purposes of geological sequestration to address 
        climate change.
            ``(2) Environmental requirements.--Standards established 
        under paragraph (1) shall--
                    ``(A) satisfy the requirements set forth in 
                subsection (b); and
                    ``(B) include requirements for monitoring and 
                controlling the long-term storage of carbon dioxide and 
                avoiding, to the maximum extent that is technically 
                feasible, any release of carbon dioxide into the 
                atmosphere, and for ensuring protection of underground 
                sources of drinking water, human health, and the 
                environment.
            ``(3) Financial responsibility.--
                    ``(A) In general.--Standards established under 
                paragraph (1) shall also include requirements for 
                maintaining evidence of pre-closure financial 
                responsibility for--
                            ``(i) taking corrective action;
                            ``(ii) acquiring and submitting to the 
                        Administrator for retirement emission 
                        allowances established under section 711 of the 
                        Clean Air Act equal to any release of carbon 
                        dioxide into the atmosphere from a geological 
                        sequestration site; and
                            ``(iii) compensating third parties for 
                        bodily injury, property damage, or 
                        environmental damages.
                    ``(B) Requirements.--The requirements referenced in 
                subparagraph (A) shall include the following:
                            ``(i) Financial responsibility may be 
                        established in accordance with regulations 
                        promulgated by the Administrator by any one, or 
                        any combination, of the following: insurance, 
                        guarantee, surety bond, letter of credit, 
                        qualification as a self-insurer or any other 
                        method satisfactory to the Administrator. The 
                        Administrator is authorized to specify policy 
                        or other contractual terms, conditions, or 
                        defenses which are necessary or are 
                        unacceptable in establishing such evidence of 
                        financial responsibility in order to effectuate 
                        the purposes of this subsection.
                            ``(ii) In any case where the owner or 
                        operator of the geological sequestration site 
                        is in bankruptcy, reorganization, or 
                        arrangement pursuant to the Federal Bankruptcy 
                        Code or where with reasonable diligence 
                        jurisdiction in any State court of the Federal 
                        Courts cannot be obtained over an owner or 
                        operator likely to be solvent at the time of 
                        judgment, any claim arising from conduct for 
                        which evidence of financial responsibility must 
                        be provided under this subsection may be 
                        asserted directly against the guarantor 
                        providing such evidence of financial 
                        responsibility. In the case of any action 
                        pursuant to this paragraph such guarantor shall 
                        be entitled to invoke all rights and defenses 
                        which would have been available to the owner or 
                        operator if any action had been brought against 
                        the owner or operator by the claimant and which 
                        would have been available to the guarantor if 
                        an action had been brought against the 
                        guarantor by the owner or operator.
                            ``(iii) The total liability of any 
                        guarantor shall be limited to the aggregate 
                        amount which the guarantor has provided as 
                        evidence of financial responsibility to the 
                        owner or operator under this section. Nothing 
                        in this subsection shall be construed to limit 
                        any other State or Federal statutory, 
                        contractual, or common law liability of a 
                        guarantor to its owner or operator including 
                        the liability of such guarantor for bad faith 
                        either in negotiating or in failing to 
                        negotiate the settlement of any claim. Nothing 
                        in this subsection shall be construed to 
                        diminish the liability of any person under any 
                        other applicable law.
                            ``(iv) The requirements shall ensure that 
                        adequate resources are available to close the 
                        geological sequestration site in the event the 
                        owner or operator files for bankruptcy or 
                        ceases operations.
            ``(4) Subsequent reports.--Not later than 5 years after the 
        date on which regulations are promulgated pursuant to paragraph 
        (1), and not less frequently than once every 5 years 
        thereafter, the Administrator shall submit to Congress a report 
        that contains an evaluation of the effectiveness of the 
        regulations, based on current knowledge and experience, with 
        particular emphasis on any new information on potential impacts 
        of commercial-scale geological sequestration on drinking water, 
        human health, and the environment.
            ``(5) Revision.--If the Administrator determines, based on 
        a report under paragraph (4), that regulations promulgated 
        pursuant to paragraph (1) require revision, the Administrator 
        shall promulgate revised regulations not later than 1 year 
        after the date on which the applicable report is submitted to 
        Congress under paragraph (4).''.
    (b) Conforming Amendment.--Section 1447(a)(4) of the Safe Drinking 
Water Act (42 U.S.C. 300j-6(a)(4)) is amended by striking ``section 
1421(d)(2)'' and inserting ``section 1421(e)(2)''.

SEC. 502. LIABILITIES FOR CLOSED GEOLOGICAL SEQUESTRATION SITES.

    (a) Establishment of Task Force.--As soon as practicable, but not 
later than 6 months after the date of enactment of this Act, the 
Administrator shall establish a task force, to be composed of an equal 
number of subject matter experts, nongovernmental organizations with 
expertise in environmental policy, and members of the private sector, 
to conduct a study of the statutory framework, environmental and safety 
considerations, and financial implications of potential models for 
Federal, State, or private sector assumption of liabilities and 
financial responsibilities with respect to closed geological 
sequestration sites.
    (b) Considerations.--The task force shall consider financial 
responsibility for any environmental damages, including the submission 
of emission allowances to account for any releases of carbon dioxide 
into the atmosphere from closed geological sequestration sites.
    (c) Report.--Not later than 18 months after the date of enactment 
of this Act, the task force established under subsection (a) shall 
submit to Congress a report describing the results of the study 
conducted under subsection (a), including recommendations of the task 
force with respect to the framework described in that subsection.

                TITLE VI--BUILDING EFFICIENCY STANDARDS

SEC. 601. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

    Section 304 of the Energy Conservation and Production Act (42 
U.S.C. 6833) is amended to read as follows:

``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

    ``(a) Updates.--
            ``(1) In general.--The Secretary shall support updating the 
        national model building energy codes and standards not later 
        than 3 years after the date of enactment of the Investing in 
        Climate Action and Protection Act, and not less frequently than 
        every 3 years thereafter, to achieve overall energy savings, as 
        compared to the IECC (2006) for residential buildings and 
        ASHRAE Standard 90.1 (2004) for commercial buildings, of at 
        least--
                    ``(A) 30 percent, with respect to each edition of a 
                model code or standard published during the period 
                beginning on January 1, 2010, and ending on December 
                31, 2019;
                    ``(B) 50 percent, with respect to each edition of a 
                model code or standard published on or after January 1, 
                2020; and
                    ``(C) targets for intermediate and subsequent 
                years, to be established by the Secretary not less than 
                3 years before the beginning on each target year, in 
                coordination with IECC and ASHRAE Standard 90.1 cycles, 
                at the maximum level of energy efficiency that is 
                technologically feasible and lifecycle cost-effective.
            ``(2) Revisions to iecc and ashrae.--
                    ``(A) In general.--If the IECC or ASHRAE Standard 
                90.1 regarding building energy use is revised, not 
                later than 1 year after the date of the revision, the 
                Secretary shall determine whether the revision will--
                            ``(i) improve energy efficiency in 
                        buildings; and
                            ``(ii) meet the energy savings goals 
                        described in paragraph (1).
                    ``(B) Modifications.--
                            ``(i) In general.--If the Secretary makes a 
                        determination under subparagraph (A)(ii) that a 
                        code or standard does not meet the energy 
                        savings goals established under paragraph (1) 
                        or if a national model code or standard is not 
                        updated for more than 3 years, not later than 1 
                        year after the determination or the expiration 
                        of the 3-year period, the Secretary shall 
                        establish a modified code or standard that 
                        meets the energy savings goals.
                            ``(ii) Requirements.--
                                    ``(I) Energy savings.--A 
                                modification to a code or standard 
                                under clause (i) shall--
                                            ``(aa) achieve the maximum 
                                        level of energy savings that is 
                                        technically feasible and 
                                        lifecycle cost-effective;
                                            ``(bb) be achieved through 
                                        an amendment or supplement to 
                                        the most recent revision of the 
                                        IECC or ASHRAE Standard 90.1 
                                        and taking into consideration 
                                        other appropriate model codes 
                                        and standards; and
                                            ``(cc) incorporate 
                                        available appliances, 
                                        technologies, and construction 
                                        practices.
                                    ``(II) Treatment as baseline.--A 
                                modification to a code or standard 
                                under clause (i) shall serve as the 
                                baseline for the next applicable 
                                determination of the Secretary under 
                                subparagraph (A)(i).
                    ``(C) Public participation.--The Secretary shall--
                            ``(i) publish in the Federal Register a 
                        notice relating to each goal, determination, 
                        and modification under this paragraph; and
                            ``(ii) provide an opportunity for public 
                        comment regarding the goals, determinations, 
                        and modifications.
    ``(b) State Certification of Building Energy Code Updates.--
            ``(1) General certification.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of the Investing in Climate Action 
                and Protection Act, each State shall certify to the 
                Secretary that the State has reviewed and updated the 
                provisions of the residential and commercial building 
                codes of the State regarding energy efficiency.
                    ``(B) Energy savings.--A certification under 
                subparagraph (A) shall include a demonstration that the 
                applicable provisions of the State code meet or exceed, 
                as applicable--
                            ``(i)(I) the IECC (2006) for residential 
                        buildings; or
                            ``(II) the ASHRAE Standard 90.1 (2004) for 
                        commercial buildings; or
                            ``(ii) the quantity of energy savings 
                        represented by the provisions referred to in 
                        clause (i).
            ``(2) Revision of codes and standards.--
                    ``(A) In general.--If the Secretary makes an 
                affirmative determination under subsection (a)(2)(A)(i) 
                or establishes a modified code or standard under 
                subsection (a)(2)(B), not later than 2 years after the 
                determination or proposal, each State shall certify 
                that the State has reviewed and updated the provisions 
                of the residential and commercial building codes of the 
                State regarding energy efficiency.
                    ``(B) Energy savings.--A certification under 
                subparagraph (A) shall include a demonstration that the 
                applicable provisions of the State code meet or 
                exceed--
                            ``(i) the modified code or standard; or
                            ``(ii) the quantity of energy savings 
                        represented by the modified code or standard.
                    ``(C) Failure to determine.--If the Secretary fails 
                to make a determination under subsection (a)(2)(A)(i) 
                by the date specified in subsection (a)(2), or if the 
                Secretary makes a negative determination, not later 
                than 2 years after the specified date or the date of 
                the determination, each State shall certify that the 
                State has--
                            ``(i) reviewed the revised code or 
                        standard; and
                            ``(ii) updated the provisions of the 
                        residential and commercial building codes of 
                        the State as necessary to meet or exceed, as 
                        applicable--
                                    ``(I) any provisions of a national 
                                code or standard determined to improve 
                                energy efficiency in buildings; or
                                    ``(II) energy savings achieved by 
                                those provisions through other means.
    ``(c) Achievement of Compliance by States.--
            ``(1) In general.--Not later than 3 years after the date on 
        which a State makes a certification under subsection (b), the 
        State shall certify to the Secretary that the State has 
        achieved compliance with the building energy code that is the 
        subject of the certification.
            ``(2) Rate of compliance.--The certification shall include 
        documentation of the rate of compliance based on independent 
        inspections of a random sample of the new and renovated 
        buildings covered by the State code during the preceding 
        calendar year.
            ``(3) Compliance.--A State shall be considered to achieve 
        compliance for purposes of paragraph (1) if--
                    ``(A) at least 90 percent of new and renovated 
                buildings covered by the State code during the 
                preceding calendar year substantially meet all the 
                requirements of the code; or
                    ``(B) the estimated excess energy use of new and 
                renovated buildings that did not meet the requirements 
                of the State code during the preceding calendar year, 
                as compared to a baseline of comparable buildings that 
                meet the requirements of the code, is not more than 10 
                percent of the estimated energy use of all new and 
                renovated buildings covered by the State code during 
                the preceding calendar year.
    ``(d) Failure To Certify.--
            ``(1) Extension of deadlines.--The Secretary shall extend a 
        deadline for certification by a State under subsection (b) or 
        (c) for not more than 1 additional year, if the State 
        demonstrates to the satisfaction of the Secretary that the 
        State has made--
                    ``(A) a good faith effort to comply with the 
                certification requirement; and
                    ``(B) significant progress with respect to the 
                compliance.
            ``(2) Noncompliance by state.--
                    ``(A) In general.--A State that fails to submit a 
                certification required under subsection (b) or (c), and 
                to which an extension is not provided under paragraph 
                (1), shall be considered to be out of compliance with 
                this section.
                    ``(B) Effect on local governments.--A local 
                government of a State that is out of compliance with 
                this section may be considered to be in compliance with 
                this section if the local government meets each 
                applicable certification requirement of this section.
    ``(e) Technical Assistance.--
            ``(1) In general.--The Secretary shall provide technical 
        assistance (including building energy analysis and design 
        tools, building demonstrations, and design assistance and 
        training) to ensure that national model building energy codes 
        and standards meet the goals described in subsection (a)(1).
            ``(2) Assistance to states.--The Secretary shall provide 
        technical assistance to States--
                    ``(A) to implement this section, including 
                procedures for States to demonstrate that the codes of 
                the States achieve equivalent or greater energy savings 
                than the national model codes and standards;
                    ``(B) to improve and implement State residential 
                and commercial building energy efficiency codes; and
                    ``(C) to otherwise promote the design and 
                construction of energy-efficient buildings.
    ``(f) Incentive Funding.--
            ``(1) In general.--The Secretary shall provide incentive 
        funding to States--
                    ``(A) to implement this section; and
                    ``(B) to improve and implement State residential 
                and commercial building energy efficiency codes, 
                including increasing and verifying compliance with the 
                codes.
            ``(2) Amount.--In determining whether, and in what amount, 
        to provide incentive funding under this subsection, the 
        Secretary shall take into consideration actions proposed by the 
        State--
                    ``(A) to implement this section;
                    ``(B) to implement and improve residential and 
                commercial building energy efficiency codes; and
                    ``(C) to promote building energy efficiency through 
                use of the codes.
            ``(3) Additional funding.--The Secretary shall provide 
        additional funding under this subsection for implementation of 
        a plan to demonstrate a rate of compliance with applicable 
        residential and commercial building energy efficiency codes at 
        a rate of not less than 90 percent, based on energy 
        performance--
                    ``(A) to a State that has adopted and is 
                implementing, on a statewide basis--
                            ``(i) a residential building energy 
                        efficiency code that meets or exceeds the 
                        requirements of the IECC (2006) (or a successor 
                        code that is the subject of an affirmative 
                        determination by the Secretary under subsection 
                        (a)(2)(A)(i)); and
                            ``(ii) a commercial building energy 
                        efficiency code that meets or exceeds the 
                        requirements of the ASHRAE Standard 90.1 (2004) 
                        (or a successor standard that is the subject of 
                        an affirmative determination by the Secretary 
                        under subsection (a)(2)(A)(i)); or
                    ``(B) in the case of a State in which no statewide 
                energy code exists for residential buildings or 
                commercial buildings, or in which the State code fails 
                to comply with subparagraph (A), to a local government 
                that has adopted and is implementing residential and 
                commercial building energy efficiency codes, as 
                described in subparagraph (A).
            ``(4) Training.--Of the amounts made available to carry out 
        this subsection, the Secretary may use not more than $500,000 
        for each State to train State and local officials to implement 
        State or local energy codes in accordance with a plan described 
        in paragraph (3).''.

SEC. 602. CONFORMING AMENDMENT.

    Section 303 of the Energy Conservation and Production Act (42 
U.S.C. 6832) is amended by adding at the end the following new 
paragraph:
            ``(17) IECC.--The term `IECC' means the International 
        Energy Conservation Code.''.

                 TITLE VII--REVIEWS AND RECOMMENDATIONS

SEC. 701. NATIONAL ACADEMY OF SCIENCES REVIEW AND RECOMMENDATIONS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall offer to enter into a contract 
with the National Academy of Sciences under which the Academy shall, 
not later than January 1, 2012, and every 5 years thereafter, submit to 
Congress and the Administrator a report that includes--
            (1) an analysis of the latest scientific information and 
        data relevant to global climate change;
            (2) an analysis of the performance of this Act and other 
        public policies in reducing greenhouse gas emissions;
            (3) an analysis of the performance of this Act and other 
        public policies in reducing vulnerability to the impacts of 
        climate change; and
            (4) recommendations regarding potential changes to this Act 
        and other public policies in reducing greenhouse gas emissions, 
        preventing dangerous atmospheric concentrations of greenhouse 
        gases or a dangerous increase in global average temperature, 
        and reducing vulnerability to the impacts of climate change.
    (b) Exception.--Subsection (a)(2), (3), and (4) shall not apply to 
the first report delivered under subsection (a).
    (c) Latest Scientific Information.--The analysis required under 
subsection (a)(1) shall--
            (1) address existing reports, including the most recent 
        assessment report of the Intergovernmental Panel on Climate 
        Change; and
            (2) include a description of trends in and projections 
        for--
                    (A) total United States greenhouse gas emissions;
                    (B) total worldwide greenhouse gas emissions;
                    (C) greenhouse gas emissions in each country that 
                is a major trading partner of the United States;
                    (D) atmospheric concentrations of greenhouse gases;
                    (E) global average temperature, including an 
                analysis of whether an increase of global average 
                temperature in excess of 3.6 degrees Fahrenheit (2 
                degrees Celsius) above the preindustrial average has 
                occurred or is more likely than not to occur in the 
                foreseeable future as a result of anthropogenic climate 
                change;
                    (F) adverse impacts of global climate change on 
                human populations, wildlife, and natural resources; and
                    (G) the health of the oceans and ocean ecosystems, 
                including predicted changes in ocean acidity, 
                temperatures, the extent of coral reefs, and other 
                indicators of ocean ecosystem health, resulting from 
                anthropogenic carbon dioxide and climate change.
    (d) Performance of This Act and Other Policies.--The analysis 
required under subsection (a)(2) shall include a description of--
            (1) the extent to which this Act, in concert with other 
        public policies, will prevent dangerous atmospheric 
        concentrations of greenhouse gases;
            (2) the extent to which this Act, in concert with other 
        public policies, will prevent a dangerous increase in global 
        average temperature;
            (3) the current and future projected deployment of 
        technologies and practices in the United States that reduce or 
        limit greenhouse gas emissions, including--
                    (A) technologies for capture and disposal of 
                greenhouse gases;
                    (B) efficiency improvement technologies;
                    (C) zero-greenhouse gas emitting energy 
                technologies, including wind, solar, geothermal, 
                hydrokinetic, and nuclear technologies;
                    (D) low-carbon renewable fuels and bioenergy; and
                    (E) above-ground and below-ground biological 
                sequestration technologies.
            (4) the extent to which this Act and other public policies 
        are accelerating the development and commercial deployment of 
        technologies and practices that reduce and limit greenhouse gas 
        emissions;
            (5) the extent to which this Act and other public policies 
        are reducing greenhouse gas emissions and increasing biological 
        sequestration from agriculture and forestry in the United 
        States and internationally;
            (6) the extent to which offset credits available on 
        international markets represent real, verifiable, additional, 
        permanent, and enforceable reductions in greenhouse gas 
        emissions or increases in sequestration;
            (7) the extent to which this Act and other public policies 
        are addressing climate change adaptation needs in the United 
        States and the most vulnerable developing countries (as defined 
        in section 422(2) of this Act);
            (8) the extent to which the distributions of auction 
        proceeds under title VII of the Clean Air Act, as added by 
        section 101 of this Act, are advancing the purposes of this 
        Act; and
            (9) the cost-effectiveness of programs established under 
        titles III and IV of this Act in achieving their stated 
        purposes, and the comparative environmental and economic 
        benefits of such programs.
    (e) Recommendations Regarding This Act and Other Policies.--The 
recommendations required under subsection (a)(3) shall include--
            (1) recommendations regarding distribution of funds from 
        the Low-Carbon Technology Fund, under subtitle B of title III 
        of this Act, in order to accelerate reductions in greenhouse 
        gas emissions and lower the cost of achieving such reductions 
        through research, development, demonstration, and deployment of 
        technologies;
            (2) recommendations regarding improvements to programs 
        implemented pursuant to this Act related to the agriculture and 
        forestry sectors in order to accelerate reductions in 
        greenhouse gas emissions from agriculture and increases in 
        biological sequestration from agriculture and forestry;
            (3) recommendations as to how to amend title VII of the 
        Clean Air Act, this Act, or other Federal policies in order to 
        avoid dangerous atmospheric concentrations of greenhouse gases 
        or a dangerous increase in global average temperature, 
        including consideration of the feasibility and effectiveness 
        of--
                    (A) expanding the definition of the term covered 
                entity under title VII of the Clean Air Act;
                    (B) expanding the scope of the compliance 
                obligation established under section 712 of the Clean 
                Air Act;
                    (C) reducing the number of emission allowances 
                comprising the Emission Allowance Account for 1 or more 
                calendar years under section 711 of the Clean Air Act;
                    (D) establishing policies for reducing greenhouse 
                gas emissions over and above the policies established 
                by title VII of the Clean Air Act; and
                    (E) other approaches, as determined by the National 
                Academy of Sciences;
            (4) recommendations regarding improvements to climate 
        change adaptation programs implemented pursuant to this Act or 
        alternative approaches to reducing vulnerability to climate 
        change impacts; and
            (5) recommendations regarding distribution of auction 
        proceeds among programs, taking into account trends in the 
        relative environmental and economic benefits delivered by, and 
        cost-effectiveness of, each program.

SEC. 702. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW AND RECOMMENDATIONS.

    (a) In General.--Not later than January 1, 2013, and every 3 years 
thereafter, the Comptroller General of the United States shall carry 
out a review of the programs described in title III and title IV of 
this Act. Each such report shall include--
            (1) a comprehensive evaluation of the effectiveness of each 
        program, including--
                    (A) the efficiency, transparency, and soundness of 
                the administration of each program;
                    (B) the performance of projects or activities 
                receiving assistance under each program; and
                    (C) trends in the cost-effectiveness of each 
                program in achieving the stated purposes of the 
                program;
            (2) recommendations, if any, for regulatory or 
        administrative changes to each program to improve its 
        effectiveness; and
            (3) identification of programs from which funds should be 
        redirected because of diminishing cost-effectiveness in 
        achieving the stated purpose of the program.

SEC. 703. PRESIDENTIAL RECOMMENDATIONS.

    (a) Establishment of the Interagency Climate Change Task Force.--
Not later than January 1, 2012, the President shall establish an 
Interagency Climate Change Task Force (in this section referred to as 
the ``Task Force'').
    (b) Composition.--The members of the Task Force shall be--
            (1) the Administrator;
            (2) the Secretary of Energy;
            (3) the Secretary of Agriculture;
            (4) the Secretary of State;
            (5) the Secretary of Commerce; and
            (6) such other Cabinet Secretaries as the President may 
        name to the membership of the Task Force.
    (c) Chairman.--The Administrator shall serve as Chairman of the 
Task Force.
    (d) Report to President.--
            (1) In general.--Not later than July 1, 2013, and every 5 
        years thereafter, the Task Force shall submit to the President 
        a report making recommendations, including specific legislation 
        for the President to recommend to Congress, in response to the 
        most recent report submitted by the National Academy of 
        Sciences under section 701 and the most recent report of the 
        Comptroller General under section 702.
            (2) Inclusions.--The Task Force shall include with the 
        report an explanation of any inconsistencies between the Task 
        Force's recommendations and--
                    (A) the report and recommendations submitted by the 
                National Academy of Sciences under section 701; or
                    (B) any recommendations submitted by the 
                Comptroller General under section 702.
    (e) Presidential Recommendation to Congress.--Not later than 
January 1, 2014, and every 5 years thereafter, the President shall 
submit to Congress a report making recommendations, including the text 
of any legislation proposed, based on the report submitted to the 
President under subsection (d).
    (f) Savings Clause.--Nothing in this title limits, procedurally 
affects, or otherwise restricts the authority of the Administrator, a 
State, or any person to use authorities under this Act or any other law 
to adopt or enforce any rule.

SEC. 704. EXPEDITED CONGRESSIONAL ACTION ON CERTAIN PRESIDENTIAL 
              RECOMMENDATIONS.

    (a) Consideration.--In any calendar year during which a report is 
submitted under section 703(e), the Senate and the House of 
Representatives may consider a joint resolution, in accordance with 
subsection (b), that amends section 711 of the Clean Air Act to 
decrease the number of allowances to be issued, if and to the extent 
specifically recommended by the President pursuant to section 703(e).
    (b) Requirements.--A joint resolution considered under subsection 
(a)--
            (1) shall be introduced during the 60-day period beginning 
        on the date on which a report is submitted under section 
        703(e);
            (2) after the resolving clause and ``That'', shall contain 
        only: ``effective beginning ________, the table in section 711 
        of the Clean Air Act is amended ______.'', the blanks being 
        filled in with the effective date and reductions in the 
        quantity of emission allowances to be issued, respectively; and
            (3) shall be referred to the Committee on Energy and 
        Commerce of the House of Representatives and the Committee on 
        Environment and Public Works of the Senate.
    (c) Applicable Law.--Subsections (c) through (g) of section 802 of 
title 5, United States Code, shall apply to any joint resolution 
described in this section, except that in applying such subsections--
            (1) references therein to ``subsection (a)'' shall refer to 
        subsection (a) of this section;
            (2) references therein to the ``submission or publication 
        date'' or ``submission or publication date defined under 
        subsection (b)(2)'' shall mean the date on which Congress 
        receives the report submitted under section 703(e) of this Act;
            (3) in subsection (e), the words ``respecting a rule'' 
        shall be ignored; and
            (4) subsection (e)(2) of such section 802 shall not apply 
        to a resolution described in this section.
                                 <all>