1.Short title; table of
contents
(a)This Act may be cited
as the Clean Air/Climate Change Act of
2007
.
(b)The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I—General provisions
Sec. 101. New source performance standard.
Sec. 102. New source review program.
Sec. 103. Integrated air quality planning for the electric
generating sector.
Sec. 104. Revisions to sulfur dioxide allowance
program.
Sec. 105. Air quality forecasts and warnings.
Sec. 106. Relationship to other law.
TITLE II—Greenhouse gas offsets
Sec. 201. Greenhouse gas offsets.
2.
(a)Congress
finds that—
(1)in 1992, the
United States became a signatory to the United Nations Framework Convention on
Climate Change in recognition of the need to begin to decrease greenhouse gas
emission levels to 1990 levels;
(2)fossil fuel-fired
electric generating sources, consisting of units fueled by coal, fuel oil, and
natural gas, produce nearly 2/3 of the electricity
generated in the United States;
(3)fossil fuel-fired
electric generating units produce approximately 67 percent of the total sulfur
dioxide emissions, 23 percent of the total nitrogen oxides emissions, 40
percent of the total mercury emissions, and 40 percent of the total carbon
dioxide emissions in the United States;
(4)as of the date of
enactment of this Act, nearly 3/4 of all coal-fired
electricity generating units are more than 30 years old;
(5)(A)many electric
generating units have been exempt from the emission limitations applicable to
new units based on the expectation that over time the units would be retired or
updated with new pollution control equipment; but
(B)many of the exempted units continue to
operate and emit pollutants at relatively high rates;
(6)many owners of
electric generating units have failed—
(A)to install best
available control technology for emissions reductions; and
(B)to retire the
units, as anticipated by Congress in the new source review provisions of the
prevention of significant deterioration and nonattainment programs of the Clean
Air Act (42 U.S.C. 7401 et seq.);
(7)the Clean Air Act
(42 U.S.C. 7401 et seq.) regulates substances (including carbon dioxide)
that—
(A)are emitted into
the ambient air; and
(B)affect the
weather and the climate;
(8)(A)as of the date of
enactment of this Act—
(i)many class I areas (as designated
under section 162(a) of the Clean Air Act (42 U.S.C. 7472(a))) are impaired by
haze pollution;
(ii)the ecosystems of many class I
areas are adversely affected by deposits of acidic and toxic compounds;
and
(iii)the air quality of many class I
areas fails to meet national ambient air quality standards; and
(B)(i)fossil-fuel fired
electric generating units are a major source of air pollution impacting class I
areas; and
(ii)proposed new fossil-fuel fired
electric generating units threaten to increase air pollution in class I areas
throughout the United States;
(9)according to the
Energy Outlook for 2006 of the Energy Information Administration, carbon
dioxide emissions from electric generating units in the Unites States have
increased by 32 percent during the period of 1990 through 2006 to at least
2,300,000,000 metric tons of carbon dioxide in 2006;
(10)the ability of
owners of electric generating units to plan effectively for the future is
impeded by the uncertainties surrounding future environmental regulatory
requirements;
(11)according to the
National Energy Technology Laboratory of the Department of Energy—
(A)as of the date of
enactment of this Act, 159 new coal-fired electric generating units are
proposed to be constructed, which would produce 96 gigawatts of new electric
generating capacity; and
(B)if the units
described in subparagraph (A) are constructed, the units would produce—
(i)an
incremental increase of 500,000,000 tons of carbon dioxide per year from the
production by the power sector in the United States as in existence on the date
of enactment of this Act; and
(ii)an
estimated 30,000,000,000 additional tons of carbon dioxide over the course of
the useful lives of the units (assuming a lifespan of 60 years);
(12)by December 31,
2015, emissions of carbon dioxide from the United States electric utility
sector should be limited to 2,100,000,000 metric tons;
(13)a report of the
Congressional Budget Office, dated September 19, 2006, concluded that—
(A)relying
exclusively on research and development funding is not the most effective
strategy for reducing greenhouse gas emissions; and
(B)combining
research and development funding with a gradually-increasing limitation on
emissions is a more cost-effective approach;
(14)(A)agriculture can be part
of the solution to reducing greenhouse gas emissions;
(B)less productive agricultural land can
be reforested with carbon dioxide-consuming trees;
(C)farming practices can be improved to
increase the absorption and retention of carbon in agricultural soils;
(D)biomass from agricultural sources
(including corn and grass) can be used to produce biofuels that can take the
place of high-carbon fossil fuels used in transportation and power generation;
and
(E)many of the farming practices and land
use changes involved in achieving those reductions have multiple benefits,
including—
(i)improving soil, water, and air
quality;
(ii)increasing wildlife habitat;
and
(iii)providing additional recreational
opportunities; and
(15)States and
regions have adopted programs to address carbon dioxide emissions from electric
generating units, and Federal regulations relating to carbon dioxide emissions
should take those programs into consideration.
(b)The
purposes of this Act are—
(1)to protect and
preserve the environment and safeguard public health by ensuring that
substantial emission reductions are achieved at fossil fuel-fired electric
generating units;
(2)to ensure that
air quality of national parks and all other class I areas (as designated by
section 162(a) of the Clean Air Act (42 U.S.C. 7472(a))) affected by emissions
from fossil fuel-fired electric generating units is significantly
improved;
(3)to reduce
significantly the quantities of mercury, sulfur dioxide, nitrogen oxides, and
carbon dioxide that enter the environment as a result of the combustion of
fossil fuels;
(4)to encourage the
development and use of renewable energy;
(5)to internalize
the cost of protecting the values of public health, air, land, and water
quality;
(6)to provide a
period of environmental regulatory stability for owners and operators of
electric generating units so as to promote improved management of existing
assets and new capital investments; and
(7)to achieve
emission reductions from electric generating units in a cost-effective
manner.
<enum>I</enum><header>General
provisions</header>
<section id="id8B3128AFF2534276AD33CAB5E5DAAE0B"><enum>101.</enum><header>New source
performance standard</header><text display-inline="no-display-inline">Section
111 of the Clean Air Act (42 U.S.C. 7411) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id6E791F6D3E704913A54041DF0D3B6CB0" style="OLC">
<subsection id="idAF6AC2402E3A4E37A35E0C1B69332DC5"><enum>(k)</enum><header>Standard of
performance for new electric generating facilities</header>
<paragraph id="id1805D0FDF22B4BF8B00C9DA73D28D3DD"><enum>(1)</enum><header>In
general</header><text>Each electric generating unit constructed or modified
after January 1, 2015, shall meet a standard of performance equivalent to an
emission limitation of 1,100 pounds of carbon dioxide per megawatt-hour or
less.</text>
</paragraph><paragraph id="id49FF64FB17FB4286A9839AEA6A83CAB6"><enum>(2)</enum><header>Eligibility for
carbon dioxide allowances</header><text>Beginning on January 1, 2007, each of
the first 30 electric generating units to achieve the standard of performance
described in paragraph (1) (or a revised standard under paragraph (4), as
applicable) shall be eligible to participate in the Climate Champions Program
under section 707.</text>
</paragraph><paragraph id="IDeae78637f1b940ddb26b1ecbab39ed1e"><enum>(3)</enum><header>Treatment of
certain carbon dioxide</header><text>Carbon dioxide that is injected into a
geological formation in a manner that prevents any release of the carbon
dioxide into the atmosphere shall not be considered to be carbon dioxide
emissions from an electric generating unit for purposes of the standard of
performance under paragraph (1).</text>
</paragraph><paragraph id="IDb5d9d957465e4a3980669af0208954c4"><enum>(4)</enum><header>Review</header>
<subparagraph id="idBCECECD7686C45AE9D5177EFF5311BEB"><enum>(A)</enum><header>In
general</header><text>Not later than January 1, 2015, and every 8 years
thereafter, the Administrator shall review the applicable standards of
performance for new electric generating units with respect to carbon dioxide
emissions to determine whether the emission limitation for the units under
paragraph (1) should be decreased, based on the best available technological
system of continuous emission reduction.</text>
</subparagraph><subparagraph id="id3E0EC87C6B774AF79D70DD67D4DE70E3"><enum>(B)</enum><header>Treatment</header><text>A
determination by the Administrator under subparagraph (A) shall be—</text>
<clause id="id9C50B800F68444D083B39C8BAF38EAFE"><enum>(i)</enum><text>published in the
Federal Register not later than the deadline described in that subparagraph for
the applicable review; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id689D08A8509D475999C801E6CFC43FE8"><enum>(ii)</enum><text>considered to be
final agency action for purposes of section
307(b)(1).</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID6D9006F37D814135A88871255BDCC401"><enum>102.</enum><header>New source
review program</header><text display-inline="no-display-inline">Section 165 of
the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7475">42 U.S.C. 7475</external-xref>) is
amended by adding at the end the following:</text>
<quoted-block act-name="Clean Air Act" display-inline="no-display-inline" id="ID7BA0FED251C54C8796683948188C881E" style="OLC">
<subsection id="ID9F2901C32CE74469B3450048654D593E"><enum>(f)</enum><header>Revisions to
new source review program</header>
<paragraph id="IDFA0FBDFAE2CA414A9D7B4273932211AA"><enum>(1)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="ID4FB2BD24932B44A8B6AA80646865255F"><enum>(A)</enum><header>Affected
unit</header><text>The term <term>affected unit</term> has the meaning given
the term in section 701.</text>
</subparagraph><subparagraph id="IDAB02249A61E141F1AA5CD3329CE11CA7"><enum>(B)</enum><header>New source
review program</header><text>The term <term>new source review program</term>
means the program to carry out this part and part D.</text>
</subparagraph></paragraph><paragraph id="ID758490D9863C4D6FA7959E1561C8E2B5"><enum>(2)</enum><header>Performance
standards</header>
<subparagraph id="id6F1F1E6928714B5E851903261E25A968"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), beginning January
1, 2020, and on each January 1 thereafter, each affected unit that has been in
operation 40 or more years as of that January 1 shall meet performance
standards of—</text>
<clause id="ID41158B0E65124F7496AC79237F15B3D4"><enum>(i)</enum><text>2
lbs/MWh for sulfur dioxide; and</text>
</clause><clause id="IDFA298DD3D02B4830A3D54636C26166E3"><enum>(ii)</enum><text>1 lbs/MWh for
nitrogen oxides.</text>
</clause></subparagraph><subparagraph id="ID64ef3727578244b2b8ba40f206756b95"><enum>(B)</enum><header>Exception</header>
<clause id="idDD26156EA6E841FDAB4D826FDC24FF23"><enum>(i)</enum><header>In
general</header><text>Notwithstanding subparagraph (A), an affected unit that,
as of January 1, 2020, is required to meet a more stringent performance
standard than the applicable standard under subparagraph (A) shall continue to
meet the more stringent standard.</text>
</clause><clause id="id9737F98691C04B599EB3F5192175C26D"><enum>(ii)</enum><header>Modification
of affected units</header><text>The requirements of this section shall not
affect in any way any requirement under section 111(a)(4), this part, or part D
governing modifications of major stationary sources.</text>
</clause></subparagraph></paragraph><paragraph id="IDc25f629bd4f04dffa694c3d1763c81a8"><enum>(3)</enum><header>No effect on
other requirements and retention of State authority</header><text>Nothing in
this subsection affects—</text>
<subparagraph id="id319559B0A1A342BFAC2BFBDB39FA1813"><enum>(A)</enum><text>any State
authority under section 116; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7AD1C6D9E719465EA8CC95D57725C09C"><enum>(B)</enum><text>the obligation of
any State or local government or any major emitting facility to comply with the
requirements of this
section.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDF2B809FF75B148C1B7436502BD3B8FC3"><enum>103.</enum><header>Integrated air
quality planning for the electric generating sector</header><text display-inline="no-display-inline">The <act-name parsable-cite="CAA">Clean Air
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42
U.S.C. 7401</external-xref> et seq.) is amended by adding at the end the
following:</text>
<quoted-block act-name="Clean Air Act" id="IDA73FB096208B486A87ADFC34D534DA00">
<title id="ID339D81847EC34A29B235FD728053D62C"><enum>VII</enum><header>Integrated air
quality planning for the electric generating sector</header>
<toc>
<toc-entry idref="ID339D81847EC34A29B235FD728053D62C" level="title">TITLE VII—Integrated air quality planning for the electric
generating sector</toc-entry>
<toc-entry idref="ID45BCD3C2CB704F39ADDFA3A6BBE8CFAC" level="section">Sec. 701. Definitions.</toc-entry>
<toc-entry idref="ID671AA711994B41AFAF8E3F2DF71C67FD" level="section">Sec. 702. National pollutant tonnage limitations.</toc-entry>
<toc-entry idref="ID873E9154DE204BFCBF3CB495F1C05C4C" level="section">Sec. 703. Nitrogen oxide trading program.</toc-entry>
<toc-entry idref="IDFEE47B554081405091B048A6FE003B75" level="section">Sec. 704. Mercury program.</toc-entry>
<toc-entry idref="id937C5B3664934B2A9DA1C1578B149E76" level="section">Sec. 705. Carbon dioxide allowance trading program.</toc-entry>
<toc-entry idref="idDF335D72286D4C9DB543400D4108F1C6" level="section">Sec. 706. Conventional pulverized coal facilities.</toc-entry>
<toc-entry idref="idD64CA716FCBE4D819DB22E7F50A0DC1D" level="section">Sec. 707. Climate Champions Program.</toc-entry>
<toc-entry bold="off" level="section">Sec. 708. Auction of carbon
dioxide allowances.</toc-entry>
</toc>
<section id="ID45BCD3C2CB704F39ADDFA3A6BBE8CFAC"><enum>701.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="idC012E77D04B143F0BE93E5BEDC73F431"><enum>(1)</enum><header>Affected
source</header><text>The term <term>affected source</term> means a source that
includes 1 or more affected units.</text>
</paragraph><paragraph id="ID57A59207E7834362B52F552431BE3775"><enum>(2)</enum><header>Affected
unit</header>
<subparagraph id="id99B1AEAD3DE34DB091BBDA99464AD25B"><enum>(A)</enum><header>Carbon
dioxide</header>
<clause id="idC88BA8CC85144C7DB9CD212C6A3C028C"><enum>(i)</enum><header>In
general</header><text>The term <term>affected unit</term>, with respect to
carbon dioxide, means an electric generating unit that, on or after January 1,
2000, served a generator producing electricity for sale with a nameplate
capacity of greater than 25 megawatts.</text>
</clause><clause commented="no" id="idA3199F82C523444EB7DD972F4D444A1E"><enum>(ii)</enum><header>Exclusion</header><text>The
term <term>affected unit</term>, with respect to carbon dioxide, does not
include a unit that—</text>
<subclause commented="no" id="id86E430A6BFF6496A99D7238115CF60BB"><enum>(I)</enum><text>cogenerates
useful steam and electricity; but</text>
</subclause><subclause commented="no" id="id3180C64CFDBB4C6799F0E1D38CADBDB9"><enum>(II)</enum><text>is not a
cogeneration unit.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="ID84078372EE7B41EAB65837DD2F7B68B8"><enum>(B)</enum><header>Mercury</header>
<clause commented="no" id="idAF00896B82C24A4FAA0FD17FCDED1280"><enum>(i)</enum><header>In
general</header><text>The term <term>affected unit</term>, with respect to
mercury, means a coal-fired electric generating unit that, on or after January
1, 1985, served a generator producing electricity for sale with a nameplate
capacity greater than 25 megawatts.</text>
</clause><clause commented="no" id="id5490D03B6D5B41CD909EECF8E30159A5"><enum>(ii)</enum><header>Exclusion</header><text>The
term <term>affected unit</term>, with respect to mercury, does not include a
unit that—</text>
<subclause commented="no" id="idE41865DCBAE24DF3B3559895FB19654C"><enum>(I)</enum><text>cogenerates
useful steam and electricity; but</text>
</subclause><subclause commented="no" id="id47BF44B208D44FF3A45DAE2664EA67D4"><enum>(II)</enum><text>is not a
cogeneration unit.</text>
</subclause></clause></subparagraph><subparagraph id="IDBD98C17291C04B68AD38F6D5A7F300C3"><enum>(C)</enum><header>Nitrogen
oxides</header>
<clause id="id3874FDD12E5E439B9BDE3D16FCD68D19"><enum>(i)</enum><header>In
general</header><text>The term <term>affected unit</term>, with respect to
nitrogen oxides, means a fossil fuel-fired electric generating unit that, on or
after January 1, 1985, served a generator producing electricity for sale with a
nameplate capacity greater than 25 megawatts.</text>
</clause><clause commented="no" id="id63507E4B5D8B419F84BD27C0DCD0832C"><enum>(ii)</enum><header>Exclusion</header><text>The
term <term>affected unit</term>, with respect to nitrogen oxides, does not
include a unit that—</text>
<subclause commented="no" id="id4C581754252F41009C67A8E02BA789D6"><enum>(I)</enum><text>cogenerates
useful steam and electricity; but</text>
</subclause><subclause commented="no" id="idCD8FEA28B36A41E09E51F8EA3684038F"><enum>(II)</enum><text>is not a
cogeneration unit.</text>
</subclause></clause></subparagraph><subparagraph id="ID02692050DD594C5695275D0029FDFBF0"><enum>(D)</enum><header>Sulfur
dioxide</header><text>The term <term>affected unit</term>, with respect to
sulfur dioxide, has the meaning given the term in section 402.</text>
</subparagraph></paragraph><paragraph id="id75857029FD6243ADBA707508D4749E9A"><enum>(3)</enum><header>CAIR</header><text>The
term <term>CAIR</term> means the rule promulgated by the Administrator entitled
the <quote>Clean Air Interstate Rule</quote> (70 Fed. Reg. 25162 (May 12,
2005)) (as in effect on the date of enactment of this title).</text>
</paragraph><paragraph id="idF5A21B14B3404244A653CC6000F3FFD3"><enum>(4)</enum><header>CAIR
State</header><text>The term <term>CAIR State</term> means each State that is
subject to the annual emission limitation and allowance trading program for
nitrogen oxides and sulfur dioxide under CAIR, including, as of the date of
enactment of this Act—</text>
<subparagraph id="idCEA0279E9A9E4020A773B8969C84F3A2"><enum>(A)</enum><text>Alabama;</text>
</subparagraph><subparagraph id="id6B8716D6158D48FE8CFB3A6E2B3F174D"><enum>(B)</enum><text>Delaware;</text>
</subparagraph><subparagraph id="idCE3A195D2F2541399535004621B63FA0"><enum>(C)</enum><text>the District of
Columbia;</text>
</subparagraph><subparagraph id="id229EA0BAD7814AC6A6DF2FDA7A5D7B14"><enum>(D)</enum><text>Florida;</text>
</subparagraph><subparagraph id="id54DC20A2C12240BFA77D5707518484C0"><enum>(E)</enum><text>Georgia;</text>
</subparagraph><subparagraph id="idB4406C0FE7B144CA9EAD1841D360BCD4"><enum>(F)</enum><text>Illinois;</text>
</subparagraph><subparagraph id="idAB3A56E3ED48410A9D70D279E59424BE"><enum>(G)</enum><text>Indiana;</text>
</subparagraph><subparagraph id="id2BEF3401CD8E4FA1B0EB78A905194AAC"><enum>(H)</enum><text>Iowa;</text>
</subparagraph><subparagraph id="idE98A0CA7F155468F8CC31A11306C6FE4"><enum>(I)</enum><text>Kentucky;</text>
</subparagraph><subparagraph id="idD209004CC3434B7DB8C4AC4170278F1D"><enum>(J)</enum><text>Louisiana;</text>
</subparagraph><subparagraph id="id188B9733545C46048B4BF95C681147A5"><enum>(K)</enum><text>Maryland;</text>
</subparagraph><subparagraph id="idE1328926D4914486960B293BE812E889"><enum>(L)</enum><text>Michigan;</text>
</subparagraph><subparagraph id="idCE89062320CE4725ABD94581A7CE0E1B"><enum>(M)</enum><text>Minnesota;</text>
</subparagraph><subparagraph id="id5491F246E97342BDB05E6E7F76200CFB"><enum>(N)</enum><text>Mississippi;</text>
</subparagraph><subparagraph id="idFC397BE7BB374DC7BA32537763F17ACE"><enum>(O)</enum><text>Missouri;</text>
</subparagraph><subparagraph id="idCA1234D7F5C545F89A2F296457FC64E8"><enum>(P)</enum><text>New
Jersey;</text>
</subparagraph><subparagraph id="id319B7998B9054A23B94E77A52B49293F"><enum>(Q)</enum><text>New York;</text>
</subparagraph><subparagraph id="idB2D746B3065844A388B80723A3FAB989"><enum>(R)</enum><text>North
Carolina;</text>
</subparagraph><subparagraph id="idD78DA3FAE1CE45B4A041DBFBA38503A3"><enum>(S)</enum><text>Ohio;</text>
</subparagraph><subparagraph id="idC6533A30B98847129A3D4C0861941151"><enum>(T)</enum><text>Pennsylvania;</text>
</subparagraph><subparagraph id="id1F581111F70A4C09AB3D342683269DFC"><enum>(U)</enum><text>South
Carolina;</text>
</subparagraph><subparagraph id="id07AA3BF891784350AFCBAFD51FA0E7D9"><enum>(V)</enum><text>Tennessee;</text>
</subparagraph><subparagraph id="id269729F20061441783FE56789063DABF"><enum>(W)</enum><text>Texas;</text>
</subparagraph><subparagraph id="idFA90FF9887E54435BA21A01BF082066D"><enum>(X)</enum><text>Virginia;</text>
</subparagraph><subparagraph id="id014AC90F96624389B8788DFAC85C3FDB"><enum>(Y)</enum><text>West Virginia;
and</text>
</subparagraph><subparagraph id="idEE98C05C560146C88343A68D3D880188"><enum>(Z)</enum><text>Wisconsin.</text>
</subparagraph></paragraph><paragraph id="IDED64499FEC464663001873159F5B2044"><enum>(5)</enum><header>Carbon dioxide
allowance</header><text>The term <term>carbon dioxide allowance</term> means an
authorization allocated by the Administrator under this title to emit 1 ton of
carbon dioxide during or after a specified calendar year.</text>
</paragraph><paragraph id="IDf0e94a8b3df94fb99c00d24e247560fb"><enum>(6)</enum><header>Cogeneration
unit</header><text>The term <term>cogeneration unit</term> means a unit
that—</text>
<subparagraph id="id76EAFBD019124C2CB1B79A1B0DF37CFC"><enum>(A)</enum><text>cogenerates—</text>
<clause id="id6D67DA1DF0914BDAA6AD2D87BDBED386"><enum>(i)</enum><text>useful steam;
and</text>
</clause><clause id="id1432C67B15DE40D3B2078A9421783DB7"><enum>(ii)</enum><text>electricity;
and</text>
</clause></subparagraph><subparagraph id="idEB88C809A3F445B1912BC1EFFE990B37"><enum>(B)</enum><text>supplies, in any
calendar year, to any utility power distribution system for sale—</text>
<clause id="id2DEBC8912E6B41729526AF5CC6BAC7F0"><enum>(i)</enum><text>more than
<fraction>1/3</fraction> of the potential electric output capacity of the unit;
and</text>
</clause><clause id="idEEBAC3A5A55C4472A1C60FA93FD597E3"><enum>(ii)</enum><text>more than
219,000 megawatt-hours of electrical output.</text>
</clause></subparagraph></paragraph><paragraph id="IDff7bc6dfe2b04183b37d63f4ff1019c0"><enum>(7)</enum><header>Designated
representative</header><text>The term <term>designated representative</term>
means a responsible person or official authorized by the owner or operator of
an affected source to represent the owner or operator in any matter relating
to—</text>
<subparagraph id="id223136FE171F4F5C9FB4D6605A2B07EB"><enum>(A)</enum><text>the holding,
transfer, or disposition of an allowance under this title; or</text>
</subparagraph><subparagraph id="idEFB7896F14C143D38D9F96B735245495"><enum>(B)</enum><text>any submission
concerning, and compliance with, any requirement of this title for the affected
source.</text>
</subparagraph></paragraph><paragraph id="ID5558f39ca7744d5d88c01e6656a96a79"><enum>(8)</enum><header>Fossil
fuel</header><text>The term <term>fossil fuel</term> includes—</text>
<subparagraph id="idB29770D22A334A099546259CFCDAEEF1"><enum>(A)</enum><text>natural
gas;</text>
</subparagraph><subparagraph id="id4D9E9EEEBD8E4349BE79DE2547BD8CF0"><enum>(B)</enum><text>petroleum;</text>
</subparagraph><subparagraph id="idFCDEB2A3593542B580721BA0D528CDA6"><enum>(C)</enum><text>coal; and</text>
</subparagraph><subparagraph id="id08292611A6C64023B2C9747E5EFA2704"><enum>(D)</enum><text>any form of
solid, liquid, or gaseous fuel derived from a material described in any of
subparagraphs (A) through (C).</text>
</subparagraph></paragraph><paragraph id="IDfbc42851ec604c18b156bfeb2d41e446"><enum>(9)</enum><header>Fossil
fuel-fired</header><text>The term <term>fossil fuel-fired</term> means the
combustion of any quantity of a fossil fuel during any calendar year.</text>
</paragraph><paragraph id="ID8CA9F25E23144C3395A860424B36CD69"><enum>(10)</enum><header>Greenhouse
gas</header><text>The term <term>greenhouse gas</term> means any of—</text>
<subparagraph id="ID26ECBC6859CB428EAC4C9B37379B018D"><enum>(A)</enum><text>carbon
dioxide;</text>
</subparagraph><subparagraph id="IDB93CD20D62C247E8B94B9C83D753BC33"><enum>(B)</enum><text>methane
(CH<subscript>4</subscript>);</text>
</subparagraph><subparagraph id="ID147FB4FC6D5F4B50B83876BFC5BC0026"><enum>(C)</enum><text>nitrous oxide
(N<subscript>20</subscript>);</text>
</subparagraph><subparagraph id="IDF77B35983DDF4E4AAA1D6CBF00C3994E"><enum>(D)</enum><text>hydrofluorocarbons
(HFC–23, HFC–32, HFC–41, HFC–43–10mee, HFC–125, HFC–134, HFC–134a, HFC–152a,
HFC–143, HFC–143a, HFC–227ea, HFC–236fa, and HFC–245ca);</text>
</subparagraph><subparagraph id="ID53CB9DB6382F4AB0A40075F720A76628"><enum>(E)</enum><text>perfluorocarbons
(CF<subscript>4</subscript>,
C<subscript>2</subscript>F<subscript>6</subscript>,
C<subscript>3</subscript>F<subscript>8</subscript>,
C<subscript>4</subscript>F<subscript>10</subscript>,
C–C<subscript>4</subscript>F<subscript>8</subscript>,
C<subscript>5</subscript>F<subscript>12</subscript>, and
C<subscript>6</subscript>F<subscript>14</subscript>); and</text>
</subparagraph><subparagraph id="ID0CB3F1D860414982A422C229005C3158"><enum>(F)</enum><text>sulfur
hexafluoride (SF<subscript>6</subscript>).</text>
</subparagraph></paragraph><paragraph id="idFBCD0436B32E4F8186AD37B8F071B6BB"><enum>(11)</enum><header>New
unit</header><text>The term <term>new unit</term> means an affected unit that
has operated for not more than 3 years and is not eligible to receive nitrogen
oxide allowances under the regulations promulgated by the Administrator
pursuant to section 705(b).</text>
</paragraph><paragraph id="IDF87E3C4982F444C9B6B4ED383DB6C7EB"><enum>(12)</enum><header>Nitrogen oxide
allowance</header><text>The term <term>nitrogen oxide allowance</term> means an
authorization allocated by the Administrator under this title to emit 1 ton of
nitrogen oxides during or after a specified calendar year.</text>
</paragraph><paragraph id="IDDB594990D49E4057AB3D57305620105D"><enum>(13)</enum><header>Sequestration</header><text>The
term <term>sequestration</term> means the action of sequestering carbon dioxide
by—</text>
<subparagraph id="IDE7D4B5AAB55B4E28B58411F200041D61"><enum>(A)</enum><text>enhancing a
natural carbon dioxide sink (such as through afforestation); or</text>
</subparagraph><subparagraph id="ID0F0630DCD69C400886B623E8A8064C00"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID04DB0E9FF558455400A8347221FE93DB"><enum>(i)</enum><text>capturing the carbon
dioxide emitted from relevant industrial units and a fossil fuel-based energy
system; and</text>
</clause><clause id="ID641E094FDF8B4042AA749C646F68451D" indent="up1"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="IDF3C3939E6F7F4F9C9F8E9288008638CB"><enum>(I)</enum><text>storing the carbon
dioxide in a geologic formation in a manner that prevents any release of the
carbon dioxide; or</text>
</subclause><subclause id="ID1DBBE62ED122431CBB360668045E2518" indent="up1"><enum>(II)</enum><text>converting the carbon dioxide to a
benign solid material through a biological or chemical process.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID950C613EDCC54F90BE42757F1EC859F9"><enum>(14)</enum><header>Sulfur dioxide
allowance</header><text>The term <term>sulfur dioxide allowance</term> has the
meaning given the term <term>allowance</term> in section 402.</text>
</paragraph><paragraph id="id599317C0B1BB4B27A90BBD57A0245ACA"><enum>(15)</enum><header>Unit</header><text>The
term <term>unit</term> means a combustion device.</text>
</paragraph><paragraph id="IDb336976a48af40988f74db72dbc0ba47"><enum>(16)</enum><header>Useful
energy</header><text>The term <term>useful energy</term>, with respect to a
cogeneration unit, means the total quantity of useful energy (including
electrical generation and useful steam) as determined by the
Administrator.</text>
</paragraph><paragraph id="id4572790885A74B22848871FF0B9C9EB2"><enum>(17)</enum><header>Zone 1
State</header><text>The term <term>Zone 1 State</term> means—</text>
<subparagraph id="idC6621E712FCA4D5BB208F3D822EEB5BA"><enum>(A)</enum><text>any CAIR
State;</text>
</subparagraph><subparagraph id="id6152C11A55AE4BD8B5C41C503DFA62CA"><enum>(B)</enum><text>Arkansas;</text>
</subparagraph><subparagraph id="id49CEEFF67DF8497C86D952261B1A67C5"><enum>(C)</enum><text>Connecticut;</text>
</subparagraph><subparagraph id="id5E9F7B20551F4199B9D1D2E85EBE24D8"><enum>(D)</enum><text>Massachusetts;</text>
</subparagraph><subparagraph id="idB4C2579B2A2941B3890FE9CC1BEDE8D2"><enum>(E)</enum><text>Maine;</text>
</subparagraph><subparagraph id="id3398AB5BA27A451B93A62AD2A799DFE2"><enum>(F)</enum><text>New
Hampshire;</text>
</subparagraph><subparagraph id="id9CF30A25EA174D05A4486A0AA0639537"><enum>(G)</enum><text>Rhode Island;
and</text>
</subparagraph><subparagraph id="id8A86DAC7DACC44F9881346B8963CF933"><enum>(H)</enum><text>Vermont.</text>
</subparagraph></paragraph><paragraph id="ID306545bf6cf146a39f2fad45eaf3e05e"><enum>(18)</enum><header>Zone 2
State</header><text>The term <term>Zone 2 State</term> means any of the 48
contiguous States that is not a Zone 1 State.</text>
</paragraph></section><section id="ID671AA711994B41AFAF8E3F2DF71C67FD"><enum>702.</enum><header>National
pollutant tonnage limitations</header>
<subsection id="ID370177DCFDE9400682EAA2C157070014"><enum>(a)</enum><header>Sulfur
dioxide</header><text>The annual tonnage limitation for emissions of sulfur
dioxide shall be equal to—</text>
<paragraph id="id105D23C8DD944BCEB7B0902A2EFD212B"><enum>(1)</enum><text>for each of
calendar years 2010 through 2014, for affected units subject to CAIR, 3,500,000
tons, in accordance with CAIR; and</text>
</paragraph><paragraph id="idFF00441DE25448C395DBBC2C493ACAF1"><enum>(2)</enum><text>for calendar year
2015 and each calendar year thereafter, for all affected units in the 48
contiguous States, 2,000,000 tons.</text>
</paragraph></subsection><subsection id="ID507A95D1BCBD4927BF5B126E7D818B03"><enum>(b)</enum><header>Nitrogen
oxides</header><text>The Administrator shall allocate an annual tonnage
limitation for emissions of nitrogen oxides in a quantity that is equal
to—</text>
<paragraph commented="no" id="idEE526EA2EA8E4C57903E62BEA91F4299"><enum>(1)</enum><text>for each of
calendar years 2009 through 2014, for affected units subject to CAIR, 1,450,000
tons; and</text>
</paragraph><paragraph commented="no" id="idECF8EECF0C314BBBB33A1F071826BD79"><enum>(2)</enum><text>for calendar year
2015 and each calendar year thereafter—</text>
<subparagraph commented="no" id="id1A23C3A3CD0B497DA91292847B2A2F0F"><enum>(A)</enum><text>for affected
units in Zone 1 States, 1,300,000 tons; and</text>
</subparagraph><subparagraph commented="no" id="idED68610D147C49AF905A5D8BEA1E5883"><enum>(B)</enum><text>for affected
units in Zone 2 States, 320,000 tons.</text>
</subparagraph></paragraph></subsection><subsection id="ID3FD408A55B6F407CB125FC19635335C4"><enum>(c)</enum><header>Mercury</header><text>The
emission of mercury from affected units shall be limited in accordance with
section 704.</text>
</subsection><subsection id="id67DB495700CB40D0BCEB578B3197452A"><enum>(d)</enum><header>Carbon
dioxide</header><text>The annual tonnage limitation for emissions of carbon
dioxide from affected units in the 48 contiguous States shall be equal to, as
determined by the Administrator based on certified and quality-assured
continuous emissions monitoring data for carbon dioxide reported to the
Administrator by affected units in accordance with this Act—</text>
<paragraph id="ID44bd64b3d55f405eaf991cd47642216e"><enum>(1)</enum><text>for each of
calendar years 2011 through 2014, 2,300,000,000 metric tons;</text>
</paragraph><paragraph id="ID126216605e30488c933fde8ec8b38ef2"><enum>(2)</enum><text>for each of
calendar years 2015 through 2019, 2,100,000,000 metric tons;</text>
</paragraph><paragraph id="IDed5fa06f628440a39b70231c34cc42c8"><enum>(3)</enum><text>for each calendar
years 2020 through 2024, 1,800,000,000 metric tons; and</text>
</paragraph><paragraph id="ID7e8b381efb164d74892785de66da8189"><enum>(4)</enum><text>for calendar year
2025 and each calendar year thereafter, 1,500,000,000 metric tons.</text>
</paragraph></subsection><subsection id="IDFE13CB1780174EEB9BB7F0DDD7AE8DFC"><enum>(e)</enum><header>Reduction of
emissions from specified affected units</header><text>Notwithstanding the
annual tonnage limitations and mercury emissions requirements established under
this section, the Federal Government or a State government may require that
emissions from a specified affected unit be reduced.</text>
</subsection><subsection id="IDb218867c9b0d4fa3a95399deafab3ae3"><enum>(f)</enum><header>CAIR
States</header>
<paragraph id="idF4DF12650FAC46B2BBBA5840CFF4CB2F"><enum>(1)</enum><header>In
general</header><text>Each CAIR State shall comply with the applicable
requirements of CAIR.</text>
</paragraph><paragraph id="id2D9926670AF0439F836E21C194D1B087"><enum>(2)</enum><header>Exception</header><text>Notwithstanding
paragraph (1), CAIR shall not apply to—</text>
<subparagraph id="IDd5c3f0b305e24a41b78b299cbd8c4d7a"><enum>(A)</enum><text>annual emissions
of nitrogen oxides emitted during calendar year 2015 and thereafter; or</text>
</subparagraph><subparagraph id="IDa7fe3deae820410ba2287fcd04936bd7"><enum>(B)</enum><text>annual emissions
of sulfur dioxide emitted during calendar year 2015 and thereafter.</text>
</subparagraph></paragraph></subsection></section><section id="ID873E9154DE204BFCBF3CB495F1C05C4C"><enum>703.</enum><header>Nitrogen oxide
trading program</header>
<subsection id="IDE1D12392319E491F885849033E6C3B04"><enum>(a)</enum><header>Regulations</header>
<paragraph id="ID13F1F5EB308E4A94AEB9C8EB005C5B00"><enum>(1)</enum><header>In
general</header><text>Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations to establish for
affected units in the 48 contiguous States a nitrogen oxide allowance trading
program.</text>
</paragraph><paragraph id="ID0534D5619FD948A5005593EAF01D4092"><enum>(2)</enum><header>Requirements</header><text>Regulations
promulgated under paragraph (1) shall establish requirements for the allowance
trading program under this section, including requirements concerning—</text>
<subparagraph id="IDB3476692187B4AE487FE8300B0B6A2A5"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID11E8992B27E04FA2AF3086041C171047"><enum>(i)</enum><text>the allocation,
issuance, recording, tracking, transfer, and use of nitrogen oxide allowances;
and</text>
</clause><clause id="ID690120AAE4A14D19B6F29B509ED24FD7" indent="up1"><enum>(ii)</enum><text>the public availability of all
information concerning the activities described in clause (i) that is not
confidential business information;</text>
</clause></subparagraph><subparagraph id="ID3623058764DF47BCA2D884A482A610FF"><enum>(B)</enum><text>compliance with
subsection (d)(1);</text>
</subparagraph><subparagraph id="ID512DFAEC65D24D3EA810CE7CBE11A022"><enum>(C)</enum><text>the monitoring
and reporting of emissions under paragraphs (2) and (3) of subsection (d);
and</text>
</subparagraph><subparagraph id="IDB704189EBE164462BF00E75434CD4B00"><enum>(D)</enum><text>excess emission
penalties under subsection (d)(4).</text>
</subparagraph></paragraph></subsection><subsection id="ID04E6C3277A0D4DD1B569FCB3F0B2C97B"><enum>(b)</enum><header>Nitrogen oxide
allocations</header>
<paragraph id="ID6634B7D0908E42B9936F155118086522"><enum>(1)</enum><header>Timing of
allocations</header><text>Not later than 2 years after the date of enactment of
this title, the Administrator shall allocate nitrogen oxide allowances to
affected units.</text>
</paragraph><paragraph id="IDF9E5C39A333240FBAAA921F570230096"><enum>(2)</enum><header>Allocations to
affected units</header>
<subparagraph id="idB59DA13504EA4ACD9C1ED5142AFF41F0"><enum>(A)</enum><header>Zone 1
States</header><text>The Administrator shall allocate, to each affected unit in
a Zone 1 State, a quantity of nitrogen oxide allowances that is equal to the
product obtained by multiplying—</text>
<clause id="IDc463ba5535b640b192a44719d3c3c4a6"><enum>(i)</enum><text>the quantity of
nitrogen oxide allowances available for allocation under section 702(b)(2)(A);
and</text>
</clause><clause id="IDe78e196e597a48a8af414a58d241541b"><enum>(ii)</enum><text>the quotient
obtained by dividing—</text>
<subclause id="ID6f7ae24fa202490eae066c6261e08463"><enum>(I)</enum><text>the adjusted
average heat input (measured in mmBtus), of the affected unit during calendar
years 2006 through 2008; by</text>
</subclause><subclause id="IDde24074796fe4c318ff5811debeb1dc9"><enum>(II)</enum><text>the sum of the
adjusted heat input quantities described in subclause (I) with respect to all
affected units in all Zone 1 States.</text>
</subclause></clause></subparagraph><subparagraph id="IDc4b697289d2b463284b593e7783fd890"><enum>(B)</enum><header>Zone 2
States</header><text>The Administrator shall allocate, to each affected unit in
a Zone 2 State, a quantity of nitrogen oxide allowances that is equal to the
product obtained by multiplying—</text>
<clause id="ID04433f10c2594728aba8c575a0b536c5"><enum>(i)</enum><text>the quantity of
nitrogen oxide allowances available for allocation under section 702(b)(2)(B);
and</text>
</clause><clause id="ID11fabaef31174a38b3ed50c0a6b092e4"><enum>(ii)</enum><text>the quotient
obtained by dividing—</text>
<subclause id="id2ECF891EE0B34019B7246070F7EF1AFD"><enum>(I)</enum><text>the adjusted
average heat input (measured in mmBtus), of the affected unit during calendar
years 2006 through 2008; by</text>
</subclause><subclause id="ID7274884d38e34d89a0f7c11615e423d5"><enum>(II)</enum><text>the sum of the
adjusted heat input quantities described in subclause (I) with respect to all
affected units in all Zone 2 States.</text>
</subclause></clause></subparagraph><subparagraph id="ID451493caee4a4542b8a72812ccc43b9a"><enum>(C)</enum><header>Adjusted heat
input</header>
<clause id="idA6A1AE23ABAE4FEA9CC1D8AD5A926390"><enum>(i)</enum><header>In
general</header><text>The adjusted heat input for a calendar year of an
affected unit that begins operation before January 1, 2006, shall be equal to
the product obtained by multiplying (using factors, emission rates, and
categories of units determined by the Administrator)—</text>
<subclause id="id92B9C31C4EC0487190F6DD007E30A3A3"><enum>(I)</enum><text>the heat input of
the affected unit for the calendar year; and</text>
</subclause><subclause id="idC893CA4DDEAB40048F34A7EB0634F3AA"><enum>(II)</enum><text>a factor
reflecting—</text>
<item id="id7FB31F0184A940CDACA09908E0620641"><enum>(aa)</enum><text>the category of
the affected unit, based on the types of fuels combusted by the affected unit
during the calendar year; and</text>
</item><item id="idFB19DC4CEFA84936BB0B3F3D1D8E48AE"><enum>(bb)</enum><text>the actual
nitrogen oxides emission rate (expressed in tons of nitrogen oxides emitted per
mmBtu) that is generally applicable to that category of affected units.</text>
</item></subclause></clause><clause id="idAF75B2AED5A2476DBF56FB3966D2474C"><enum>(ii)</enum><header>Average</header><text>The
average adjusted heat input of an affected unit for a 3-calendar year period
described in subparagraph (A)(ii)(I) or (B)(ii)(I) shall be equal to the
quotient obtained by dividing—</text>
<subclause id="id0119613C566546DBBE481925076B846A"><enum>(I)</enum><text>the sum of the
adjusted heat input quantities, as determined under clause (i), for each
calendar year of the 3-calendar year period; by</text>
</subclause><subclause id="idB9E159FD17734505A72C4FCCAB2E7B37"><enum>(II)</enum><text>3.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID7FD90026DD1141C9B6CFA9E8E203FB9E"><enum>(3)</enum><header>Adjustment of
allocations</header><text>If, for any calendar year, the total quantities of
allowances allocated under paragraph (2) are not equal to the applicable
quantities determined under section 702(b)(2), the Administrator shall adjust
the quantities of allowances allocated to affected units on a pro rata basis so
that the quantities are equal to the applicable quantities determined under
section 702(b)(2).</text>
</paragraph><paragraph id="ID0F146373AFDB45978392E77100BD6D80"><enum>(4)</enum><header>Allowance not a
property right</header><text>A nitrogen oxide allowance—</text>
<subparagraph id="IDBD1075F1843A458C947762000036A846"><enum>(A)</enum><text>is not a property
right; and</text>
</subparagraph><subparagraph id="IDF6FB6EFEC2014659B4E118D0097696FC"><enum>(B)</enum><text>may be terminated
or limited by the Administrator.</text>
</subparagraph></paragraph><paragraph id="ID66F5216EB88F405789B27E8FE3035E3E"><enum>(5)</enum><header>No judicial
review</header><text>An allocation of nitrogen oxide allowances by the
Administrator under this subsection, and a determination of a value used in
calculating the allocation, shall not be subject to judicial review.</text>
</paragraph></subsection><subsection id="ID43233C53A90243F2B800C60082FAC8CF"><enum>(c)</enum><header>Nitrogen oxide
allowance transfer system</header>
<paragraph id="IDA93AADAA513A4AFFA1876117B8C7D5B3"><enum>(1)</enum><header>Use of
allowances</header><text>The regulations promulgated under subsection (a)(1)
shall—</text>
<subparagraph id="IDAEDE55E42933474792D5EBBB4EC3A721"><enum>(A)</enum><text>prohibit the use
(but not the transfer in accordance with paragraph (3)) of any nitrogen oxide
allowance before the calendar year for which the allowance is allocated;</text>
</subparagraph><subparagraph id="ID8FD77B423BA94935B3458497FA92C500"><enum>(B)</enum><text>provide that
unused nitrogen oxide allowances may be carried forward and added to nitrogen
oxide allowances allocated for subsequent years;</text>
</subparagraph><subparagraph id="IDCAFB698EFA79402480C2E2D419B40045"><enum>(C)</enum><text>provide that
unused nitrogen oxide allowances may be transferred by—</text>
<clause id="IDC07D4E467E2D41708EA02EF36F4EDFE2"><enum>(i)</enum><text>the person to
which the allowances are allocated; or</text>
</clause><clause id="ID449A88B1FF024C8E80EF0083B0C81266"><enum>(ii)</enum><text>any person to
which the allowances are transferred; and</text>
</clause></subparagraph><subparagraph id="ID44fa6b5715f143f0b734361301bcec29"><enum>(D)</enum><text>provide that, to
achieve compliance with paragraphs (1) and (4) of subsection (d)—</text>
<clause id="idEFCC12DBF636491197453958F8BD36E1"><enum>(i)</enum><text>the owner and
operator of an affected unit in a Zone 1 State shall use only nitrogen oxide
allowances allocated to affected units in Zone 1 States; and</text>
</clause><clause id="idFC56A35A963B44D6A59334D0F094CE21"><enum>(ii)</enum><text>the owner and
operator of an affected unit in a Zone 2 State shall use only nitrogen oxide
allowances allocated to affected units in Zone 2 States.</text>
</clause></subparagraph></paragraph><paragraph id="IDC6C48F543D7049718C7D876E774E33E1"><enum>(2)</enum><header>Use by persons
to which allowances are transferred</header><text>Any person to which nitrogen
oxide allowances are transferred under paragraph (1)(C)—</text>
<subparagraph id="IDDA3153493E34495F855C17DB00C69EFA"><enum>(A)</enum><text>may use the
nitrogen oxide allowances in the calendar year for which the nitrogen oxide
allowances were allocated, or in a subsequent calendar year, to achieve
compliance with subsection (d)(1); or</text>
</subparagraph><subparagraph id="ID6000717DDB894A0F8F11E8302829B01D"><enum>(B)</enum><text>may transfer the
nitrogen oxide allowances to any other person.</text>
</subparagraph></paragraph><paragraph id="IDB00FB0AADB144ED6B155FB70A05E00E0"><enum>(3)</enum><header>Certification
of transfer</header><text>A transfer of a nitrogen oxide allowance shall not
take effect until a certification of the transfer, authorized by a responsible
official of the person making the transfer, is received and recorded by the
Administrator.</text>
</paragraph><paragraph id="IDABFE2FEC7ADA4EB8A087B7CC8C95F404"><enum>(4)</enum><header>Permit
requirements</header><text>An allocation or transfer of nitrogen oxide
allowances to an affected unit shall, after recording by the Administrator, be
considered to be part of the federally enforceable permit of the affected unit
under this Act, without a requirement for any further review or revision of the
permit.</text>
</paragraph></subsection><subsection id="IDB73D28587E654CF7B0ED963F640021B6"><enum>(d)</enum><header>Compliance and
enforcement</header>
<paragraph id="ID524392C8D15C48399985897B47708786"><enum>(1)</enum><header>In
general</header><text>For calendar year 2015 and each calendar year thereafter,
the owner and operator of each affected source shall hold for the affected
source and surrender to the Administrator a quantity of nitrogen oxide
allowances that is equal to the total tons of nitrogen oxides emitted by the
affected units of the affected source during the calendar year.</text>
</paragraph><paragraph id="id1A7611F78C644B19B2215F21E686674B"><enum>(2)</enum><header>Monitoring
system</header><text>The Administrator shall promulgate regulations
requiring—</text>
<subparagraph id="idA20A73343C724892AAF3081B8DCBDF5C"><enum>(A)</enum><text>installation,
operation, reporting, and certification of continuous emissions monitoring
systems, or any alternative monitoring system or methodology that, as
determined by the Administrator, provides information with the same precision,
reliability, accessibility, and timeliness as that provided by continuous
emission monitoring system, to measure the quantity of nitrogen oxides that is
emitted from each affected unit;</text>
</subparagraph><subparagraph id="id5534A9954DBB4087B81FE4CA54A22D2B"><enum>(B)</enum><text>quality
assurance, verification, and reporting of nitrogen oxides emissions at each
affected unit; and</text>
</subparagraph><subparagraph id="ID66b14a46cdfc497c9e2e31f80d3cd2f6"><enum>(C)</enum><text>if continuous
emission monitoring system data, or data from an alternative monitoring system
approved by the Administrator, is not available for an affected unit during any
period of a calendar year for which the data is required to be certified under
this subsection, and if the owner or operator of the affected unit cannot
provide information satisfactory to the Administrator on emissions during that
period—</text>
<clause id="id8A5F381D6F63436C919279CDFB4BC92E"><enum>(i)</enum><text>treatment of the
affected unit as operating in an uncontrolled manner during the entire period
for which the data was not available; and</text>
</clause><clause id="id1C06A95BF6124D1782EC020F0E77B7F4"><enum>(ii)</enum><text>calculation of
emissions for that period as prescribed by the Administrator.</text>
</clause></subparagraph></paragraph><paragraph id="ID681BCEA81133474499969821860300AC"><enum>(3)</enum><header>Reporting</header>
<subparagraph id="ID453942DF22CD4997B4B952083827DAD3"><enum>(A)</enum><header>In
general</header><text>Not less often than quarterly, the designated
representative of the owner or operator of an affected unit shall submit to the
Administrator a report on the monitoring of emissions of nitrogen oxides
carried out by the owner or operator in accordance with the regulations
promulgated under paragraph (2).</text>
</subparagraph><subparagraph id="IDB91933DF14EB46F6B75471963074FD35"><enum>(B)</enum><header>Authorization</header><text>Each
report submitted under subparagraph (A) shall be authorized by the designated
representative of the affected unit, who shall certify the accuracy of the
report.</text>
</subparagraph><subparagraph id="ID6AAC25B9FF9746A1A05517EDE615A204"><enum>(C)</enum><header>Public
reporting</header><text>The Administrator shall make available to the public,
through 1 or more published reports and 1 or more forms of electronic media,
data concerning the emissions of nitrogen oxides from each affected
unit.</text>
</subparagraph></paragraph><paragraph id="ID6BA1D58B7EDB40A1BA3BBFA0EB018874"><enum>(4)</enum><header>Excess
emissions</header><text>The owner and operator of an affected source the
affected units of which emit, during a calendar year specified in paragraph
(1), nitrogen oxides in excess of the nitrogen oxide allowances held for use by
the affected source for the calendar year shall offset, and pay an excess
emissions penalty for, the excess emissions by surrendering to the
Administrator a quantity of nitrogen oxides allowances for the following
calendar year, or such earlier period as the Administrator may prescribe, equal
to the product obtained by multiplying—</text>
<subparagraph id="id203AE048C64941979B83F38EE52AD3D3"><enum>(A)</enum><text>the number of
tons of the excess emissions; and</text>
</subparagraph><subparagraph id="id6DCA251894A4474FBFF1697BDF6B3C9F"><enum>(B)</enum><text>2.</text>
</subparagraph></paragraph></subsection><subsection id="id32D4AA2ED4F74419847F17FC40EFBCE5"><enum>(e)</enum><header>Effect</header><text>Nothing
in this section limits or otherwise affects the application of section 113,
114, 120, or 304.</text>
</subsection></section><section id="IDFEE47B554081405091B048A6FE003B75"><enum>704.</enum><header>Mercury
program</header>
<subsection id="idC0B7511FDCB646249D3AFA58920E0208"><enum>(a)</enum><header>Definition of
inlet mercury</header><text>In this section, the term <term>inlet
mercury</term> means the quantity of mercury found—</text>
<paragraph id="IDb2ec781681414ccface10be4c53c57b6"><enum>(1)</enum><text>in the as-fired
coal of an affected unit; or</text>
</paragraph><paragraph id="IDfdc03b5930a645f3a6b28ba465273ea7"><enum>(2)</enum><text>for an affected
unit using coal that is subjected to an advanced coal cleaning technology, in
the as-mined coal of the affected unit.</text>
</paragraph></subsection><subsection id="IDc3154cc312e545ce837fcdaa7d74b215"><enum>(b)</enum><header>Annual
limitation for certain units</header><text>An affected unit that begins
operation on or after the date of enactment of this title shall be subject to
the less stringent of the following emission limitations on an annual average
calendar year basis with respect to inlet mercury:</text>
<paragraph id="ID5f5d573c2bb34ac5a388167dc1b6364b"><enum>(1)</enum><text>90 percent
capture of inlet mercury.</text>
</paragraph><paragraph id="ID147a9c8000e44ea6a77ddfb5068e4b8e"><enum>(2)</enum><text>An emission rate
of 0.0060 lbs/GWh.</text>
</paragraph></subsection><subsection id="IDa78bee74714147d4a767d2cc560537b5"><enum>(c)</enum><header>Annual
limitation for existing units</header><text>An affected unit in operation on
the date of enactment of this title shall be subject to the following emission
limitations on an annual average calendar year basis with respect to inlet
mercury:</text>
<paragraph id="ID7029c567b5e04d38b1b65a8a8460c4a4"><enum>(1)</enum><header>First full
calendar year beginning 4 years after the date of enactment of title through
2014</header><text>For each of the first full calendar year beginning 4 years
after the date of enactment of this title through calendar year 2014, the less
stringent limitation of—</text>
<subparagraph id="id015298EB2CD34D918E7F98E61E1AE002"><enum>(A)</enum><text>60 percent
capture of inlet mercury; and</text>
</subparagraph><subparagraph id="id4B84D6F57C9A4EA5B5E7A47627C1CD7F"><enum>(B)</enum><text>an emission rate
of 0.02 lbs/GWh.</text>
</subparagraph></paragraph><paragraph id="IDaf2f3d271c61474b9ffa37e8e272cc05"><enum>(2)</enum><header>2015 and
thereafter</header><text>Beginning on January 1, 2015, the less stringent
limitation of—</text>
<subparagraph id="id6A644C9B43B0438E9879C78CD7FBF9F0"><enum>(A)</enum><text>90 percent
capture of inlet mercury; and</text>
</subparagraph><subparagraph id="id8188B136433A4AFB98FE445C938A8385"><enum>(B)</enum><text>an emission rate
of 0.0060 lbs/GWh.</text>
</subparagraph></paragraph></subsection><subsection id="ID97675934d2ba431390a43d3fbd8066a7"><enum>(d)</enum><header>Averaging
across units</header><text>An owner or operator of an affected unit may
demonstrate compliance with the annual average limitations under subsections
(b) and (c) by averaging emissions from all affected units at an affected
source.</text>
</subsection><subsection id="id9F7ACE9111AF4C6FB7CE3B68E07AF16C"><enum>(e)</enum><header>Monitoring
system</header><text>The Administrator shall promulgate regulations
requiring—</text>
<paragraph id="id894172CD5AF24CB1B23F094E7EDF65F9"><enum>(1)</enum><text>installation,
operation, reporting, and certification of continuous emissions monitoring
systems, or any alternative monitoring system or methodology that, as
determined by the Administrator, provides information with the same precision,
reliability, accessibility, and timeliness as that provided by continuous
emission monitors, to measure the quantity of mercury emitted from each
affected unit;</text>
</paragraph><paragraph id="idFE72F02D0D194A73B99EBCA504018F1F"><enum>(2)</enum><text>quality
assurance, verification, and reporting of mercury emissions data at each
affected unit; and</text>
</paragraph><paragraph id="id42EC68B9BD404334B9B0D93F1A046447"><enum>(3)</enum><text>if continuous
emission monitoring system data, or data from an alternative monitoring system
approved by the Administrator, is not available for an affected unit during any
period of a calendar year for which the data is required to be certified under
this subsection, and if the owner or operator of the affected unit cannot
provide information satisfactory to the Administrator on emissions during that
period—</text>
<subparagraph id="id88724848F77E47C89310D74E45D5B73A"><enum>(A)</enum><text>treatment of the
affected unit as operating in an uncontrolled manner during the entire period
for which the data was not available; and</text>
</subparagraph><subparagraph id="id1AD719DABCE641DC9169820F51D08B03"><enum>(B)</enum><text>calculation of
emissions for that period as prescribed by the Administrator.</text>
</subparagraph></paragraph></subsection><subsection id="idFB3DE7060EE94DC0BE7EFAB624DA5E88"><enum>(f)</enum><header>Reporting</header>
<paragraph id="idA01272D8DD80428F9FAD27018032871A"><enum>(1)</enum><header>In
general</header><text>Not less often than quarterly, the owner or operator of
an affected unit shall submit to the Administrator a report on the monitoring
of emissions of mercury carried out by the owner or operator in accordance with
the regulations promulgated under subsection (e).</text>
</paragraph><paragraph id="id5D93C72B100A4F54962FCF7792031837"><enum>(2)</enum><header>Authorization</header><text>Each
report submitted under paragraph (1) shall be authorized by a designated
representative of the affected unit, who shall certify the accuracy of the
report.</text>
</paragraph><paragraph id="id657ADA0B7AB34CE0880F29D28EEFCE58"><enum>(3)</enum><header>Public
reporting</header><text>The Administrator shall make available to the public,
through 1 or more published reports and 1 or more forms of electronic media,
data concerning the emission of mercury from each affected unit.</text>
</paragraph></subsection><subsection id="idE15A5DA40F444BA1A13B8906FB4D35D9"><enum>(g)</enum><header>Excess
emissions</header>
<paragraph id="idAFD05720E36B43BB84096DAFB95AE0A0"><enum>(1)</enum><header>Penalty</header>
<subparagraph id="id8D6BD800572249BE9175029ED0A3141B"><enum>(A)</enum><header>In
general</header><text>The owner and operator of an affected unit described in
subparagraph (B) shall pay an excess emissions penalty determined under
paragraph (2).</text>
</subparagraph><subparagraph id="id52F06470E96C47C4BABF8059B34A6A8A"><enum>(B)</enum><header>Description of
affected units</header><text>An affected unit referred to in subparagraph (A)
is an affected unit that—</text>
<clause id="id98B84F84C01F4F519C44F34DDAC156CF"><enum>(i)</enum><text>for an affected
unit demonstrating compliance at the unit level, emits mercury in excess of an
emission limitation described in subsection (b) or (c); or</text>
</clause><clause id="id9683D6F115E648C580BC39B07E881B4D"><enum>(ii)</enum><text>for an affected
unit demonstrating compliance under subsection (d), is part of an affected
source that emits mercury in excess of the emission limitation applicable to
the affected source.</text>
</clause></subparagraph></paragraph><paragraph id="id76E9431A79C740AC999D3FAE8A865021"><enum>(2)</enum><header>Determination
of excess emissions penalty</header><text>The excess emissions penalty for
mercury shall be an amount equal to $50,000 for each pound of mercury emitted
in excess of the emission limitation described in subsection (b) or (c), as
pro-rated for each fraction of a pound.</text>
</paragraph><paragraph id="id63BE3BC396924367B2C2BAD1743B6F68"><enum>(3)</enum><header>Penalty
adjustment</header><text>For each fiscal year, the Administrator, by
regulation, shall adjust the penalty specified in paragraph (2) to reflect
changes for the 12-month period ending the preceding November 30 in the
Consumer Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.</text>
</paragraph></subsection><subsection id="idEFAB0EC4A5984D3191F97F28A231B7B9"><enum>(h)</enum><header>Petition for
extension</header><text>The Administrator, or the appropriate agency of a State
with a program approved under title IV, may issue for an affected unit in
existence on the date of enactment of this title a permit that provides an
extension of not more than 1 additional year of a deadline for compliance with
any standard under this section, if the Administrator or agency determines the
extension is necessary for the installation at the affected unit of an
appropriate control technology.</text>
</subsection><subsection id="id97B11590D6514BC9AE82650062C29131"><enum>(i)</enum><header>Effect of
section</header><text>Nothing in this section limits or otherwise affects the
application of section 113, 114, 120, or 304.</text>
</subsection></section><section id="id937C5B3664934B2A9DA1C1578B149E76"><enum>705.</enum><header>Carbon dioxide
allowance trading program</header>
<subsection id="idE94465AC78D44FA6B3C7872FE700F10E"><enum>(a)</enum><header>Regulations</header>
<paragraph id="id760218FA8FF64C1483B8E51DCDD17E04"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 2
years after the date of enactment of this title, the Administrator shall
promulgate regulations to establish a carbon dioxide allowance trading program
for affected units in the United States.</text>
</paragraph><paragraph id="id19F3F1743B7C4389AE7EFE2035F4EE89"><enum>(2)</enum><header>Requirements</header>
<subparagraph id="idC394A1B99D5547F1AB4B1177B37B3F17"><enum>(A)</enum><header>Other required
programs</header><text>In promulgating regulations pursuant to paragraph (1),
the Administrator shall ensure that no carbon dioxide allowance is provided for
an offset project the greenhouse gas reductions under which are effectively
required by any other Federal, State, or local law (including regulations) or
judicial or administrative order.</text>
</subparagraph><subparagraph id="idA9227801E6F445CFA980BB15DF9C72A4"><enum>(B)</enum><header>Other
standards</header><text>In promulgating regulations pursuant to paragraph (1),
the Administrator shall require that—</text>
<clause id="id4D267DA7F2294DD887642C99AD802288"><enum>(i)</enum><text>each reduction or
removal of greenhouse gas emissions for which an offset project receives carbon
dioxide allowances under this section—</text>
<subclause id="idA9E9391B058F482082CB1E66A7B34779"><enum>(I)</enum><text>is not double
counted under this or any other allowance program;</text>
</subclause><subclause id="id4B3D204C0E484A7B953A6815AC936331"><enum>(II)</enum><text>is a permanent
reduction in greenhouse gas emissions; and</text>
</subclause><subclause id="id9305CF5B45524E4B8649650C57D74117"><enum>(III)</enum><text>is monitored as
the Administrator determines to be appropriate with respect to the specific
offset project type and quantity of carbon dioxide allowances provided for the
reduction; and</text>
</subclause></clause><clause id="id4E8051C102534EF88D0E47CB90D3247A"><enum>(ii)</enum><text>each offset
project shall reflect a level of performance that, with respect to emission
reductions or a technology or practice, is significantly better than average,
as compared with recently carried out activities or practices.</text>
</clause></subparagraph></paragraph><paragraph id="ID761e7ab7e7894796b3cb0aec2124395a"><enum>(3)</enum><header>State offset
methods</header><text>In promulgating regulations under paragraph (1), the
Administrator shall take into consideration offset methods developed, as of the
date of enactment of this title, by California or any other State pursuant to
the Regional Greenhouse Gas Initiative or a similar regulatory program with of
comparable rigor, as determined by the Administrator.</text>
</paragraph></subsection><subsection id="IDE445D49757C64C38887D8962A9286E86"><enum>(b)</enum><header>New unit
reserve</header>
<paragraph id="id51D75F8662F54C82A48D1436B5EE2715"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="id2E45799AAF8E458E953706B79BEE33CD"><enum>(A)</enum><header>In
general</header><text>For each of calendar years 2011 through 2020, the
Administrator shall establish, by regulation, a reserve of carbon dioxide
allowances to be allocated to new affected units fueled by coal that meet the
criteria under the Climate Champions Program under section 707 for the calendar
year.</text>
</subparagraph><subparagraph id="idD1855CFBB7924555BA4C6DE47E37360D"><enum>(B)</enum><header>Required
quantity</header><text>For a calendar year described in subparagraph (A), the
quantity of carbon dioxide allowances in the reserve established under this
paragraph shall not exceed 5 percent of the annual tonnage limitation for
carbon dioxide specified in section 702(d) for that calendar year.</text>
</subparagraph></paragraph><paragraph id="idA7C451ADD444497A8F147B4F331DA9F3"><enum>(2)</enum><header>Required
allocations</header><text>For each of calendar years 2011 through 2014, the
Administrator shall allocate allowances in the reserve established under
paragraph (1) to each of the 30 entities identified under section
707(b)(1).</text>
</paragraph><paragraph id="id75D0409F23A84C969EE28A2B991F1A8B"><enum>(3)</enum><header>Unused carbon
dioxide allowances</header><text>For each calendar year, the Administrator
shall reallocate, to all affected units, any unused carbon dioxide allowances
from the new unit reserve established under paragraph (1) in the proportion
that—</text>
<subparagraph id="idF9D974EC463647ADB93039CC1BCF0353"><enum>(A)</enum><text>the number of
carbon dioxide allowances allocated to each affected unit for the calendar
year; bears to</text>
</subparagraph><subparagraph id="id9EDCB2C4521D46EFADD93DA0B436B205"><enum>(B)</enum><text>the number of
carbon dioxide allowances allocated to all affected units for the calendar
year.</text>
</subparagraph></paragraph></subsection><subsection id="idAE7137602566434BA59FA67FA5DFDA51"><enum>(c)</enum><header>Carbon dioxide
allocations</header>
<paragraph id="IDe460c80fcf464a3e9c2ebc16b0edaca2"><enum>(1)</enum><header>Allocations to
affected units that are not new units</header>
<subparagraph id="id35A432A088AA4B96893FCBE664E63D51"><enum>(A)</enum><header>In
general</header><text>Not later than 2 years after the date of enactment of
this title, the Administrator shall allocate, to each affected unit that is not
a new unit, a quantity of carbon dioxide allowances that is equal to the
product obtained by multiplying—</text>
<clause id="idE1DE3F303C81493FA2D582E58C99C6ED"><enum>(i)</enum><text>the quantity of
carbon dioxide allowances available for allocation under paragraph (2);
and</text>
</clause><clause id="id0C1C76D8C87B449FA949DDF67D9072CF"><enum>(ii)</enum><text>the quotient
obtained by dividing—</text>
<subclause id="id477016702EF14AB082122570A44C9F17"><enum>(I)</enum><text>the adjusted
average heat input (measured in mmBtus), of the affected unit during any
3-consecutive-calendar-year period during the period beginning on January 1,
2000, and ending on December 31, 2007; and</text>
</subclause><subclause id="id46C9FD7B80D14229B4E0C53E416E544A"><enum>(II)</enum><text>the sum of the
adjusted heat input quantities described in subclause (I) with respect to all
affected units that are not new units.</text>
</subclause></clause></subparagraph><subparagraph id="id4F9BF93336304AA19DFE2C70A3B8FAE4"><enum>(B)</enum><header>Adjusted heat
input</header>
<clause id="id71EC1197BBD64151B4AB087F530008B1"><enum>(i)</enum><header>In
general</header><text>The adjusted heat input for a calendar year of an
affected unit that begins operation before January 1, 2005, shall be equal to
the product obtained by multiplying (using factors, emission rates, and
categories of units determined by the Administrator)—</text>
<subclause id="idC72080EEB14C41FE83CBF6EFFD59FD67"><enum>(I)</enum><text>the heat input of
the affected unit for the calendar year;</text>
</subclause><subclause id="idB945928E71D749E4923B22A2F95ED973"><enum>(II)</enum><text>a factor
reflecting the category of the affected unit, based on the types of fuels
combusted by the affected unit during the calendar year; and</text>
</subclause><subclause id="idB4CC9183CA1F4AC3959F623D34D18516"><enum>(III)</enum><text>the actual
carbon dioxide emission rate (expressed in tons of carbon dioxide emitted per
mmBtu) that is generally applicable to that category of affected units.</text>
</subclause></clause><clause id="id03B29AB11763480BBCECE5D12AD308C1"><enum>(ii)</enum><header>Average</header><text>The
average adjusted heat input of an affected unit for a 3-calendar year period
described in subparagraph (A)(ii)(I)(bb) shall be equal to the quotient
obtained by dividing—</text>
<subclause id="idBCC34FC5573E4B0CB45B64CB80BA08A2"><enum>(I)</enum><text>the sum of the
adjusted heat input quantities, as determined under clause (i), for each
calendar year of the 3-calendar year period; and</text>
</subclause><subclause id="id9C9FC6C835E6486AB621F671B2CB73B4"><enum>(II)</enum><text>3.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDce76820113ca4165931459b63aeb247e"><enum>(2)</enum><header>Quantity to be
allocated</header><text>For each calendar year, the quantity of carbon dioxide
allowances allocated under paragraph (1)(A) to affected units that are not new
units shall be equal to the difference between—</text>
<subparagraph id="ID5f55fead528c42e2af1f15b33348d9b4"><enum>(A)</enum><text>the annual
tonnage limitation for emissions of carbon dioxide from affected units
specified in section 702(d) for the calendar year; and</text>
</subparagraph><subparagraph id="IDa65d5542a2a543968c1c3f08e43d2252"><enum>(B)</enum><text>the sum
of—</text>
<clause id="id044CA58B6A8F431E9E529566314EF5A1"><enum>(i)</enum><text>the quantity of
carbon dioxide allowances placed in the new unit reserve established under
subsection (b) for the calendar year; and</text>
</clause><clause id="id2EFAB9A695E64EBDB458D2353B18B8D2"><enum>(ii)</enum><text>the quantity of
carbon dioxide allowances made available for auction under section 708.</text>
</clause></subparagraph></paragraph><paragraph id="idEF3D97C9AD5A481E86F104F1B021F50B"><enum>(3)</enum><header>Adjustment of
allocations</header><text>If the total quantity of carbon dioxide allowances to
be allocated under paragraph (1) for a calendar year is more than the total
quantity of carbon dioxide allowances available for allocation under paragraph
(2) for the calendar year, the Administrator shall allocate to each affected
unit a quantity of carbon dioxide allowances equal to the proportion
that—</text>
<subparagraph id="id54D689D4E4BA481C9CB077D2B9244472"><enum>(A)</enum><text>the quantity of
carbon dioxide allowances to be allocated to the affected unit under paragraph
(1) for the calendar year; bears to</text>
</subparagraph><subparagraph id="id404E3E126ADC45AF8579031A3347D242"><enum>(B)</enum><text>the total
quantity of carbon dioxide allowances to be allocated to all affected units
under paragraph (1) for the calendar year.</text>
</subparagraph></paragraph><paragraph id="ID75eb3e32679d4d32b5dd6e9d3a107a1a"><enum>(4)</enum><header>Allocations to
new units</header><text>The Administrator shall promulgate regulations to
establish a methodology for allocating carbon dioxide allowances to new units
from the new unit reserve under subsection (b).</text>
</paragraph></subsection><subsection id="id143CBAC3F6EB4A2691E97C75B004B422"><enum>(d)</enum><header>Use and
transfer of carbon dioxide allowances</header>
<paragraph id="idE43DC662AED54D26ADBDF9CA57BDB839"><enum>(1)</enum><header>Use before
applicable calendar year</header><text>A carbon dioxide allowance may not be
used before the calendar year for which the carbon dioxide allowance was
allocated.</text>
</paragraph><paragraph id="ID5dc52eee49954e82b27d6629d99789bd"><enum>(2)</enum><header>Transfer</header>
<subparagraph id="id8C2A3CA33C414755B9AD56F02F3450F6"><enum>(A)</enum><header>In
general</header><text>Notwithstanding paragraph (1), carbon dioxide allowances
may be transferred before the calendar year for which the carbon dioxide
allowances were allocated.</text>
</subparagraph><subparagraph id="IDbdfb9752b6a941c3935558a17abe1a29"><enum>(B)</enum><header>Limitation</header><text>The
transfer of a carbon dioxide allowance shall not take effect until receipt and
recording by the Administrator of a certification of the transfer, which is
executed by an authorized official of the person making the transfer.</text>
</subparagraph></paragraph><paragraph id="IDE721E7EC17B04741B98EE14BAA97C5BF"><enum>(3)</enum><header>Use by persons
to which carbon dioxide allowances are transferred</header><text>Any person to
which carbon dioxide allowances are transferred under paragraph (2)(A) may use
the carbon dioxide allowances in the calendar year for which the carbon dioxide
allowances were allocated, or in a subsequent calendar year, to demonstrate
compliance with subsection (e)(1).</text>
</paragraph><paragraph id="ID8c70e04e79e84e029236bd10cd54aef2"><enum>(4)</enum><header>Permit
requirements</header><text>An allocation or transfer of carbon dioxide
allowances to an affected unit shall be considered to be part of the federally
enforceable permit of the affected unit under this Act, without a requirement
for further review or revision of the permit.</text>
</paragraph></subsection><subsection id="idC540EECC1A3E4D93AD1CDAFAB9C6B8D2"><enum>(e)</enum><header>Compliance and
enforcement</header>
<paragraph id="IDf6d1d790e29947b591995d423c579e38"><enum>(1)</enum><header>In
general</header><text>For the first full calendar year beginning 4 years after
the date of enactment of this title and each calendar year thereafter, the
owner or operator of each affected source shall hold for the affected source
and surrender to the Administrator a quantity of carbon dioxide allowances
equal to the total tons of carbon dioxide emitted by each affected unit of the
affected source during the calendar year.</text>
</paragraph><paragraph id="id934B00BAF352430382AB0FB55F3239CC"><enum>(2)</enum><header>Excess
emissions</header><text>The owner and operator of an affected source any
affected unit of which emits carbon dioxide in excess of the carbon dioxide
allowances held for use by the affected source for the calendar year shall
offset, and pay an excess emissions penalty for, the excess emissions by
surrendering to the Administrator a quantity of carbon dioxide allowances for
the following calendar year or such other period as the Administrator may
prescribe equal to the product obtained by multiplying—</text>
<subparagraph id="id590FC24215BD4CBB835951A9B988DB34"><enum>(A)</enum><text>the number of
tons of the excess emissions; and</text>
</subparagraph><subparagraph id="id08B411F0024544B0A62D0A03566BB90A"><enum>(B)</enum><text>2.</text>
</subparagraph></paragraph><paragraph id="id5EB3B65F14034876A772EE67CEF548D7"><enum>(3)</enum><header>Monitoring
system</header><text>The Administrator shall promulgate regulations
requiring—</text>
<subparagraph id="idE3CF1451897F44299B94B3E3DA58C2D0"><enum>(A)</enum><text>installation,
operation, reporting, and certification of continuous emissions monitoring
systems, or any alternative monitoring system or methodology that, as
determined by the Administrator, provides information with the same precision,
reliability, accessibility, and timeliness as that provided by continuous
emission monitors, to measure the quantity of carbon dioxide emitted from each
affected unit;</text>
</subparagraph><subparagraph id="id0B3D9FF5B9764B6EA60749D2E94EAF01"><enum>(B)</enum><text>quality
assurance, verification, and reporting of carbon dioxide emissions data at each
affected unit; and</text>
</subparagraph><subparagraph id="id340CCE5C18F9463AB966B360222E6ADF"><enum>(C)</enum><text>if continuous
emission monitoring system data, or data from an alternative monitoring system
approved by the Administrator, is not available for an affected unit during any
period of a calendar year for which the data is required to be certified under
this subsection, and if the owner or operator of the affected unit cannot
provide information satisfactory to the Administrator on emissions during that
period—</text>
<clause id="idCCD1B048598D4E09BD735210DB7B11F4"><enum>(i)</enum><text>treatment of the
affected unit as operating in an uncontrolled manner during the entire period
for which the data was not available; and</text>
</clause><clause id="id34068BC187B042C3A1A1907A532C10A5"><enum>(ii)</enum><text>calculation of
emissions for that period as prescribed by the Administrator.</text>
</clause></subparagraph></paragraph><paragraph id="id0CB73E84EA4D4D70BBE80FE1D71B403C"><enum>(4)</enum><header>Reporting</header>
<subparagraph id="id3C8C9DD00E83420FA1119C200C1E2690"><enum>(A)</enum><header>In
general</header><text>Not less often than quarterly, the owner or operator of
an affected unit shall submit to the Administrator a report on the monitoring
of emissions of carbon dioxide carried out by the owner or operator in
accordance with the regulations promulgated under paragraph (3).</text>
</subparagraph><subparagraph id="idF7BCE52EB4E44C4DA4CD3A5F45EB7155"><enum>(B)</enum><header>Authorization</header><text>Each
report submitted under subparagraph (A) shall be authorized by the designated
representative of the affected unit, who shall certify the accuracy of the
report.</text>
</subparagraph><subparagraph id="id8F8BFA58F20F4727B809E5C60B838E19"><enum>(C)</enum><header>Public
reporting</header><text>The Administrator shall make available to the public,
through 1 or more published reports and 1 or more forms of electronic media,
data concerning the emission of carbon dioxide from each affected unit.</text>
</subparagraph></paragraph></subsection><subsection id="id3CB3B73DEE464B3D8DF5FED1E6479A87"><enum>(f)</enum><header>Effect of
section</header><text>Nothing in this section limits or otherwise affects the
application of section 113, 114, 120, or 304.</text>
</subsection><subsection id="id71E37ED7578F42A9A0E1C424EE76A4ED"><enum>(g)</enum><header>Allowance not a
property right</header><text display-inline="yes-display-inline">A carbon
dioxide allowance—</text>
<paragraph id="idEE9B5551653D4A6490763F19DFD99852"><enum>(1)</enum><text>is not a property
right; and</text>
</paragraph><paragraph id="id4D72A725EF60461C852EC9A399C2ECDE"><enum>(2)</enum><text>may be terminated
or limited by the Administrator.</text>
</paragraph></subsection><subsection id="idE87E938A89F44B32B315730950528C66"><enum>(h)</enum><header>No judicial
review</header><text display-inline="yes-display-inline">An allocation or
issuance of a carbon dioxide allowance by the Administrator, and the
determination of any value used in calculating the allocation or issuance,
shall not be subject to judicial review.</text>
</subsection></section><section id="idDF335D72286D4C9DB543400D4108F1C6"><enum>706.</enum><header>Conventional
pulverized coal facilities</header><text display-inline="no-display-inline">The
correspondence of the Office of Air Quality Planning and Standards addressing
best available control technology requirements for proposed coal-fired power
plant projects and dated December 13, 2005—</text>
<paragraph id="id09E0C0A50C63491AAD669BC54EA13C3E"><enum>(1)</enum><text>shall be
considered to be inconsistent with section 169(3); and</text>
</paragraph><paragraph id="idA35BE6EC945B4686A179DBFB93FA15E8"><enum>(2)</enum><text>shall be treated
as void and of no effect as of the date of issuance of the
correspondence.</text>
</paragraph></section><section id="idD64CA716FCBE4D819DB22E7F50A0DC1D"><enum>707.</enum><header>Climate
Champions Program</header>
<subsection commented="no" id="id2326C89A634D40FF99EB51FD52965DC6"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Administrator shall establish a
program, to be known as the <term>Climate Champions Program</term>.</text>
</subsection><subsection commented="no" id="idDA37E843E64747DAA4E6A65F7A136901"><enum>(b)</enum><header>Rewards;
receipt of allowances</header><text display-inline="yes-display-inline">Under
the Climate Champions Program, the Administrator shall—</text>
<paragraph commented="no" id="idA0BA0A31B4824E06B765BFA49758B7C5"><enum>(1)</enum><text display-inline="yes-display-inline">identify and provide such reward as the
Administrator determines to be appropriate to each of the first 30 entities to
complete construction of a new coal-fired electric generating unit that meets
each applicable new source performance standard under section 102 after the
date of enactment of this title; and</text>
</paragraph><paragraph id="id20D1472FE8C849F38731681DACDEB46C"><enum>(2)</enum><text>distribute to the
30 entities identified under paragraph (1) the carbon dioxide allowances
reserved for the entities for the calendar year under section 705(b)(2).</text>
</paragraph></subsection></section><section id="id20B7705EE5414EF294AEA9EEF1048CF6"><enum>708.</enum><header>Auction of
carbon dioxide allowances</header>
<subsection id="id04B5AF88FF0B430680D8F60FD673EBEA"><enum>(a)</enum><header>In
general</header><text>Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations establishing a
procedure for the auction of 25 percent of the quantity of carbon dioxide
allowances available for calendar year 2011 and each calendar year
thereafter.</text>
</subsection><subsection id="id0160CAC15A6040DBA931C389327AE9F2"><enum>(b)</enum><header>Deposit of
proceeds</header><text>The Administrator shall deposit the proceeds from each
auction carried out pursuant to this section into a fund of the Administrator
for use, without further appropriation, for mitigating any increase in the cost
of electricity to electricity consumers and energy-intensive industries, as
determined by the
Administrator.</text>
</subsection></section>.
104.Revisions to
sulfur dioxide allowance program
(a)Title IV of the Clean Air
Act (relating to acid deposition control) (42 U.S.C. 7651 et
seq.) is amended by adding at the end the following:
417.Revisions to
sulfur dioxide allowance program
(a)Not
later than 2 years after the date of enactment of the
Clean Air/Climate Change Act of
2007, the Administrator shall promulgate such revisions to the
regulations to implement this title as the Administrator determines to be
necessary to implement section 702(a).
(b)Sulfur dioxide
allocations
(1)Allocations to
allowance tracking system accounts
(A)The Administrator shall allocate 95 percent of the
quantity of sulfur dioxide allowances provided to achieve compliance with the
requirement under section 702(a)(2) to accounts of the allowance tracking
system under section 403(d) in accordance with the calculation under
subparagraph (B).
(B)Calculation for
allocations
(i)Definition of
existing quantityIn this subparagraph, the term existing
quantity, with respect to sulfur dioxide allowances, means, as
determined by the Administrator in accordance with part 73 of title 40, Code of
Federal Regulations (or successor regulations)—
(I)for sulfur
dioxide allowances allocated for any calendar year before calendar year 2016,
the quantity of sulfur dioxide allowances allocated for the calendar year under
sections 404 through 406, and recorded in an account of the allowance tracking
system under section 403(d), as of 12:00 p.m., Eastern Standard Time, on the
date that is 180 days after the date of enactment of the
Clean Air/Climate Change Act of
2007; and
(II)for sulfur
dioxide allowances allocated for calendar year 2016 or any calendar year
thereafter, the quantity described in subclause (I), reduced by—
- (aa)7
percent for calendar year 2016; and
- (bb)an
additional 7 percent for each calendar year thereafter.
(ii)For
calendar year 2015 and each calendar year thereafter, the Administrator shall
allocate to each account of the allowance tracking system under section 403(d)
a quantity of sulfur dioxide allowances equal to the product obtained by
multiplying—
(I)the total
quantity of allowances to be allocated under subparagraph (A); and
(II)the proportion
that—
- (aa)the total
existing quantity of sulfur dioxide allowances for all calendar years in the
account; bears to
- (bb)the total
existing quantities of sulfur dioxide allowances for all calendar years in all
accounts.
(2)Allocations to
certain existing units
(A)Definition of
existing affected unitIn this paragraph, the term existing
affected unit means an affected unit that—
(i)was an affected
unit on December 31, 2006;
(ii)began operation
before January 1, 2001; and
(iii)does not
receive any sulfur dioxide allowance for a calendar year under section 404,
405, 406, or 410.
(B)For
calendar year 2015 and each calendar year thereafter, the Administrator shall
allocate 31/2 percent of the quantity of sulfur dioxide
allowances provided to achieve compliance with the requirement under section
702(a)(2) to existing affected units in accordance with the applicable
calculation under subparagraph (C).
(C)
(i)Coal-fired
existing affected unitsFor calendar year 2015 and each calendar
year thereafter, the Administrator shall allocate to each existing affected
unit that is a coal-fired existing affected unit a quantity of sulfur dioxide
allowances equal to the product (expressed in tons) obtained by
multiplying—
(I)the total
baseline heat input of the existing affected unit, as determined under
paragraph (4) (expressed in mmBtus); and
(II)0.40
lb/mmBtu.
(ii)Oil-fired
existing affected unitsFor calendar year 2015 and each calendar
year thereafter, the Administrator shall allocate to each existing affected
unit that is an oil-fired existing affected unit a quantity of sulfur dioxide
allowances equal to the product (expressed in tons) obtained by
multiplying—
(I)the total
baseline heat input of the existing affected unit, as determined under
paragraph (4) (expressed in mmBtus); and
(II)0.20
lb/mmBtu.
(iii)Other
existing affected unitsFor calendar year 2015 and each calendar
year thereafter, the Administrator shall allocate to each existing affected
unit that is not a coal-fired or oil-fired existing affected unit a quantity of
sulfur dioxide allowances equal to the product (expressed in tons) obtained by
multiplying—
(I)the total
baseline heat input of the existing affected unit, as determined under
paragraph (4) (expressed in mmBtus); and
(II)0.05
lb/mmBtu.
(D)Adjustment of
allocationsIf the total quantity of sulfur dioxide allowances to
be allocated under subparagraph (C) for a calendar year is more than the total
quantity of sulfur dioxide allowances available for allocation under
subparagraph (B) for the calendar year, the Administrator shall allocate to
each existing affected unit a quantity of sulfur dioxide allowances equal to
the product obtained by multiplying—
(i)the quantity of
sulfur dioxide allowances to be allocated to the existing affected unit under
subparagraph (C) for the calendar year; and
(ii)the proportion
that—
(I)the quantity of
sulfur dioxide allowances to be allocated to the existing affected unit under
subparagraph (C) for the calendar year; bears to
(II)the total
quantity of sulfur dioxide allowances to be allocated to all existing affected
units under subparagraph (C) for the calendar year.
(E)Excess supply
of sulfur dioxide allowancesAny sulfur dioxide allowance that is
available for allocation under subparagraph (B) for a calendar year, but that
is not allocated for the calendar year under subparagraph (C), shall be
allocated in accordance with paragraph (3).
(3)Allocation to
certain new units
(A)Definition of
new affected unitIn this paragraph, the term new affected
unit means an affected unit that—
(i)was an affected
unit on December 31, 2006;
(ii)began operation
during the period beginning on January 1, 2001, and ending on December 31,
2006; and
(iii)does not
receive any sulfur dioxide allowance for a calendar year under section 404,
405, 406, or 410.
(B)For
calendar year 2015 and each calendar year thereafter, the Administrator shall
allocate 11/2 percent of the quantity of sulfur dioxide
allowances provided to achieve compliance with the requirement under section
702(a)(2) to new affected units in accordance with the applicable calculation
under subparagraph (C).
(C)
(i)Coal-fired and
oil-fired new affected unitsFor calendar year 2015 and each
calendar year thereafter, the Administrator shall allocate to each new affected
unit that is a coal-fired or oil-fired new affected unit a quantity of sulfur
dioxide allowances equal to the product (expressed in tons) obtained by
multiplying—
(I)the total
baseline heat input of the new affected unit, as determined under paragraph (4)
(expressed in mmBtus); and
(II)0.19
lb/mmBtu.
(ii)For calendar year 2015 and each calendar year
thereafter, the Administrator shall allocate to each new affected unit that is
not a coal-fired or oil-fired new affected unit a quantity of sulfur dioxide
allowances equal to the product (expressed in tons) obtained by
multiplying—
(I)the total
baseline heat input of the new affected unit, as determined under paragraph (4)
(expressed in mmBtus); and
(II)0.02
lb/mmBtu.
(D)Adjustment of
allocationsIf the total quantity of sulfur dioxide allowances to
be allocated under subparagraph (C) for a calendar year is more than the total
quantity of sulfur dioxide allowances available for allocation under
subparagraph (B) for the calendar year, the Administrator shall allocate to
each new affected unit a quantity of sulfur dioxide allowances equal to the
product obtained by multiplying—
(i)the quantity of
sulfur dioxide allowances to be allocated to the new affected unit under
subparagraph (C) for the calendar year; and
(ii)the proportion
that—
(I)the quantity of
sulfur dioxide allowances to be allocated to the new affected unit under
subparagraph (C) for the calendar year; bears to
(II)the total
quantity of sulfur dioxide allowances to be allocated to all new affected units
under subparagraph (C) for the calendar year.
(E)Use of other
excess sulfur dioxide allowancesThe Administrator shall allocate
to new affected units any excess allowance provided pursuant to paragraph
(2)(E) in accordance with subparagraphs (C) and (D).
(F)Remaining
sulfur dioxide allowancesThe Administrator shall allocate, on a
pro rata basis in accordance with paragraphs (1) and (2), any sulfur dioxide
allowance that is available for allocation, but that is not allocated, for a
calendar year under subparagraph (C) to—
(i)appropriate
accounts of the allowance tracking system under section 403(d); and
(ii)existing
affected units (as defined in paragraph (2)(A)).
(4)Determination
of baseline heat inputFor purposes of calculations under
paragraphs (2)(C) and (3)(C), the baseline heat input of an existing affected
unit (as defined in paragraph (2)(A)) or a new affected unit (as defined in
paragraph (3)(A)) shall be equal to the quotient obtained by dividing—
(A)the sum of the
heat input of the affected unit for each of calendar years 2005 through 2007;
by
(B)3.
(5)After completing the allocations of sulfur dioxide
allowances under paragraphs (1), (2), and (3), the Administrator shall withdraw
from each compliance account and general account in the allowance tracking
system under section 403(d), and from the special allowance reserve under
section 416, all sulfur dioxide allowances allocated or deposited for calendar
year 2015 or any calendar year thereafter.
(6)The Administrator shall carry out each allocation of
sulfur dioxide allowances required under this subsection for calendar year 2015
or any calendar year thereafter by not later than December 31, 2011.
(7)An allocation of sulfur dioxide allowances by the
Administrator under this subsection, and the determination of a value used in
calculating such an allocation, shall not be subject to judicial
review.
.
(b)Section
402 of the Clean Air Act (relating to acid deposition control) (42 U.S.C.
7651a) is amended—
(1)by striking
paragraph (2) and inserting the following:
(2)
(A)The term affected unit means—
(i)for a calendar
year before calendar year 2015, a unit that is subject to emission reduction
requirements or limitations under section 404, 405, 406, 409, or 410;
and
(ii)subject to
subparagraph (B), for calendar year 2015 and each calendar year thereafter, a
fossil fuel-fired electric generating unit that, on or after January 1, 1985,
served a generator with a nameplate capacity greater than 25 megawatts
producing electricity for sale.
(B)For
purposes of subparagraph (A)(ii), the term affected unit does not
include a unit that—
(i)cogenerates steam
and electricity; but
(ii)is not a
cogeneration unit.
(C)For purposes of this paragraph, the terms
cogeneration unit, fossil fuel-fired, and
unit have the meanings given the terms in section
701.
;
and
(2)by striking paragraph (3) and inserting the
following:
(3)
(A)Notwithstanding any other provision of this title, the
term allowance or sulfur dioxide allowance
means—
(i)except as
provided in clause (ii), an authorization allocated by the Administrator under
this title to an affected unit to emit, during or after a specified calendar
year, a quantity of sulfur dioxide emissions equal to 1 ton of sulfur dioxide;
and
(ii)with respect to
a sulfur dioxide allowance allocated to a unit in a CAIR State for any of
calendar years 2010 through 2014, an authorization allocated by the
Administrator under this title, or under CAIR, to a unit to emit, during or
after the applicable calendar year, a quantity of sulfur dioxide emissions
equal to 1/2 ton of sulfur dioxide.
(B)For purposes of subparagraph (A), the terms
CAIR and CAIR State have the meanings given the terms
in section
701.
.
(c)
(1)Section
403(g) of the Clean Air Act (relating to acid deposition control) (42 U.S.C.
7651b(g)) is amended by striking the second sentence and inserting the
following: It shall be unlawful for the affected units of any affected
source to emit sulfur dioxide during a calendar year in excess of the tons of
sulfur dioxide emissions authorized by the allowances held by the owner or
operator of the affected source for the affected source for the calendar
year.
.
(2)Permits and
compliance plansSection 408 of the Clean Air Act (relating to
acid deposition control) (42 U.S.C. 7651g) is amended—
(A)in subsection
(a), by striking paragraph (1) and inserting the following:
(1)annual emissions
of sulfur dioxide in excess of the tons of sulfur dioxide emissions authorized
by the allowances held by the owner or operator, or the designated
representative of an owner or operator, of the affected source for the affected
source for the calendar year,
;
and
(B)in subsection
(b), in the fourth sentence, by striking to emit not less than the total
annual emissions of the unit
and inserting authorizing tons of
emissions not less than the total annual emissions of the unit
.
(d)Section 411 of the
Clean Air Act (relating to acid deposition control) (42 U.S.C. 7651j) is
amended by striking subsection (e) and inserting the following:
(e)Excess
emissions of sulfur dioxide
(1)
(A)Notwithstanding subsections (a), (b), and (c), the owner
and operator of an affected source the affected units of which emit, during
calendar year 2007 or any calendar year thereafter, sulfur dioxide in excess of
the tons of sulfur dioxide emissions authorized by the allowances held for use
by the affected source for that calendar year shall offset, and pay an excess
emissions penalty for, the excess emissions by surrendering to the
Administrator a quantity of sulfur dioxide allowances for the following
calendar year, or such earlier period as the Administrator may prescribe,
authorizing a number of tons of sulfur dioxide emissions equal to the product
obtained by multiplying—
(i)subject to
subparagraph (B), the number of tons of the excess emissions; and
(ii)2.
(B)Treatment of
certain quantities of emissionsFor purposes of subparagraph
(A)(i), a quantity of excess emissions equal to less than 1 ton shall be
considered to be a quantity of excess emissions equal to 1 ton.
(2)An offset and penalty imposed under paragraph (1) shall
be in lieu of any offset and penalty required under subsection (a), (b), or (c)
with respect to sulfur dioxide emissions.
(f)Nothing in this section limits or otherwise affects the
application of section 113, 114, 120, or
304.
.
(e)
(1)Title IV of the
Clean Air Act (relating to noise
pollution) (42
U.S.C. 7641 et seq.)—
(A)is amended by
redesignating sections 401 through 403 as sections 801 through 803,
respectively; and
(B)is redesignated
as title VIII and moved to appear at the end of that Act.
(2)The table of
contents for title IV of the Clean Air
Act (relating to acid deposition control) (42 U.S.C. prec. 7651) is
amended by adding at the end the following:
Sec. 417. Revisions to sulfur dioxide
allowance
program.
.
105.Air quality
forecasts and warnings
(a)Requirement for
forecasts and warningsThe Secretary of Commerce, acting through
the Administrator of the National Oceanic and Atmospheric Administration, in
cooperation with the Administrator of the Environmental Protection Agency,
shall issue air quality forecasts and air quality warnings as part of the
mission of the Department of Commerce.
(b)In carrying out subsection (a), the Secretary of
Commerce shall establish within the National Oceanic and Atmospheric
Administration a program to provide region-oriented forecasts and warnings
regarding air quality for each of the following regions of the United
States:
(1)The Northeast,
composed of Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode
Island, and Vermont.
(2)The Mid-Atlantic,
composed of Delaware, the District of Columbia, Maryland, New Jersey,
Pennsylvania, Virginia, and West Virginia.
(3)The Southeast,
composed of Alabama, Florida, Georgia, North Carolina, and South
Carolina.
(4)The South,
composed of Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, and
Texas.
(5)The Midwest,
composed of Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri,
Ohio, and Wisconsin.
(6)The High Plains,
composed of Kansas, Nebraska, North Dakota, and South Dakota.
(7)The Northwest,
composed of Idaho, Montana, Oregon, Washington, and Wyoming.
(8)The Southwest,
composed of Arizona, California, Colorado, New Mexico, Nevada, and Utah.
(9)Alaska.
(10)Hawaii.
(c)In establishing the program described in subsection (a), the
Secretary of Commerce and the Administrator shall identify and expand, to the
maximum extent practicable, Federal air quality forecast and warning programs
in effect as of the date of establishment of the program.
(d)Authorization
of appropriationsThere are authorized to be appropriated such
sums as are necessary to carry out this section.
106.Relationship
to other law
(a)Regulation of
hazardous air pollutantsSection 112(n)(1) of the Clean Air Act
(42 U.S.C. 7412(n)(1)) is amended by striking subparagraph (A) and inserting
the following:
(A)
(i)Not later than 18 months after the date of enactment of
the Clean Air/Climate Change Act of
2007, the Administrator shall promulgate regulations under this
section limiting the emission from electric utility steam generating units of
hazardous air pollutants, other than mercury, as the Administrator determines
to be appropriate and necessary in accordance with the standards under this
section, including subsections (b)(2) and (f).
(ii)The
regulations under clause (i) shall—
(I)require
compliance with applicable standards as expeditiously as practicable, but not
later than 3 years after the effective date of the regulations; and
(II)be in accordance
with other applicable requirements under this section.
(iii)The regulations under clause (i) shall be effective on the
date of promulgation of the
regulations.
.
(b)Section 1412(b) of the Safe Drinking Water Act (42
U.S.C. 300g–1(b)) is amended by adding at the end the following:
(16)Not later than 2 years after the date of enactment of the
Clean Air/Climate Change Act of
2007, the Administrator shall promulgate regulations establishing
standards for underground injection of carbon dioxide in a manner that protects
human health and the
environment.
.
(c)No effect on
other Federal and State requirementsExcept as otherwise
specifically provided in this Act, nothing in this Act or an amendment made by
this Act—
(1)affects any
permitting, monitoring, or enforcement obligation of the Administrator of the
Environmental Protection Agency under the Clean
Air Act (42 U.S.C. 7401 et seq.) or any
remedy provided under that Act;
(2)affects any
requirement applicable to, or liability of, an electric generating unit under
that Act;
(3)requires a change
in, affects, or limits any State law that regulates electric utility rates or
charges, including prudence review under State law; or
(4)precludes a State
or political subdivision of a State from adopting and enforcing any requirement
for the control or abatement of air pollution, except that a State or political
subdivision may not adopt or enforce any emission standard or limitation that
is less stringent than the requirements imposed under that Act.
<enum>II</enum><header>Greenhouse gas
offsets</header>
<section id="idB74C7B2347E64D759067330BFA3F2ADD"><enum>201.</enum><header>Greenhouse gas
offsets</header><text display-inline="no-display-inline">The
<act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401</external-xref> et
seq.) (as amended by section 101) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id76F7A7BF23D3484180AC00DDF5CF44FA" style="OLC">
<title id="id50F33D3907A444CA92A0E5FF24828458"><enum>VIII</enum><header>Greenhouse gas
offsets</header>
<toc>
<toc-entry idref="id50F33D3907A444CA92A0E5FF24828458" level="title">TITLE VIII—Greenhouse gas offsets</toc-entry>
<toc-entry idref="id6CAC3E045A05477990C9CB51B09804EF" level="section">Sec. 801. Definitions.</toc-entry>
<toc-entry idref="ID2e6445438e394f15b3dcf8b1ca089b08" level="section">Sec. 802. General requirements.</toc-entry>
<toc-entry idref="ID1b7d3e60441a437a9eefb5c66f816762" level="section">Sec. 803. Standards for offset allowances.</toc-entry>
</toc>
<section id="id6CAC3E045A05477990C9CB51B09804EF"><enum>801.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="idD32FB2A71DA84548B6AB34C4CE96DE8C"><enum>(1)</enum><header>Allowance</header><text>The
term <term>allowance</term> means—</text>
<subparagraph id="id560356E8A9984764BBEDDACBDF28663A"><enum>(A)</enum><text>a carbon dioxide
allowance, as defined in section 701; and</text>
</subparagraph><subparagraph id="id67249ABCB8734281AE54C7165762D97F"><enum>(B)</enum><text>an offset
allowance.</text>
</subparagraph></paragraph><paragraph id="ID89ba6cacda674e078a2e68e1abc289a0"><enum>(2)</enum><header>Anaerobic
digester</header>
<subparagraph id="idC82C05CFB0D74334B42D2DF8AB09D57F"><enum>(A)</enum><header>In
general</header><text>The term <term>anaerobic digester</term> means a device
that promotes the decomposition of organic material to simple organic and
gaseous biogas products, usually by collecting the material under controlled
temperature and volume.</text>
</subparagraph><subparagraph id="id60973401E899440F819C9279F7703F4C"><enum>(B)</enum><header>Inclusion</header><text>The
term <term>anaerobic digester</term> includes a biogas recovery system.</text>
</subparagraph></paragraph><paragraph id="ID028334b04f4c48efa2d7fe7dcab4363b"><enum>(3)</enum><header>Anaerobic
storage</header><text>The term <term>anaerobic storage</term> means storage of
organic material in an oxygen-free environment or under oxygen-free conditions,
including by using holding tanks, ponds, or lagoons.</text>
</paragraph><paragraph id="IDb3b812e7e272419198116746108464a9"><enum>(4)</enum><header>ANSI</header><text>The
term <term>ANSI</term> means the American National Standards Institute.</text>
</paragraph><paragraph id="IDf1cd2b4b256044f69c4f1476d59ad593"><enum>(5)</enum><header>ASHRAE</header><text>The
term <term>ASHRAE</term> means the American Society of Heating, Refrigerating
and Air Conditioning Engineers.</text>
</paragraph><paragraph id="ID5e725426d8324c95a22a3ed6a7aecaad"><enum>(6)</enum><header>Biogas</header><text>The
term <term>biogas</term> means a gas—</text>
<subparagraph id="id3FBF9862C21D47F38CCC24068BF794E7"><enum>(A)</enum><text>the principal
components of which are methane and carbon dioxide; and</text>
</subparagraph><subparagraph id="idB680914585B145D88593462B577D61EF"><enum>(B)</enum><text>that results from
the decomposition of organic matter under anaerobic conditions.</text>
</subparagraph></paragraph><paragraph id="IDbdd3338e46504297a2b93b5a48df4766"><enum>(7)</enum><header>Boiler</header><text>The
term <term>boiler</term> means a self-contained, low-pressure appliance for
supplying heat in the form of steam or hot water to a residential building or
commercial building.</text>
</paragraph><paragraph id="IDaf0e1f61b01f4925aff9340293675723"><enum>(8)</enum><header>Commercial
building</header><text>The term <term>commercial building</term> means a
building to which ANSI/ASHRAE/IESNA Standard 90.1 applies.</text>
</paragraph><paragraph id="id79B3CA2EF2D34BDFB700CD96B02E89E3"><enum>(9)</enum><header>Eligible
biomass</header><text>The term <term>eligible biomass</term> includes
sustainable harvested woody or herbaceous fuel sources that are available on a
renewable or recurring basis (excluding old-growth timber), as determined by
the Administrator, including—</text>
<subparagraph id="id6ECD34303ACC4A1DB4FF7FB5093536A6"><enum>(A)</enum><text>dedicated energy
crops and trees;</text>
</subparagraph><subparagraph id="id65AACE8318AC4227B49DEFA7AA1B46B8"><enum>(B)</enum><text>agricultural food
and feed crop residues;</text>
</subparagraph><subparagraph id="id0D3FE312ECE642F8A8878C9862C1F69D"><enum>(C)</enum><text>aquatic
plants;</text>
</subparagraph><subparagraph id="id9F1BBCEA731C454E94D1F8E0A89FAB2D"><enum>(D)</enum><text>unadulterated
wood and wood residues;</text>
</subparagraph><subparagraph id="idD7C69068763045F6AC1312AAB0B4D64D"><enum>(E)</enum><text>animal
wastes;</text>
</subparagraph><subparagraph id="id8B95DF6F9DEA455699B2E85FAA2E51B0"><enum>(F)</enum><text>other clean
organic wastes not mixed with other solid wastes;</text>
</subparagraph><subparagraph id="idE7A17FFE48D24B1A9D1CAF12E2E9FA59"><enum>(G)</enum><text>biogas;
and</text>
</subparagraph><subparagraph id="id6DAC1B5EC58541D6878E4E1F68035ED2"><enum>(H)</enum><text>other neat liquid
biofuels derived from any fuel source described in subparagraphs (A) through
(G).</text>
</subparagraph></paragraph><paragraph id="ID22452b94323844bd8014fb6fa4c9e71f"><enum>(10)</enum><header>Energy
conservation measure</header><text>The term <term>energy conservation
measure</term> means an activity the purpose of which is to increase the energy
efficiency of a building or to improve the management of energy demand,
including through—</text>
<subparagraph id="id880E92D7B4B94B8DB8CAFB8760EF5D5F"><enum>(A)</enum><text>physical changes
to equipment;</text>
</subparagraph><subparagraph id="id13F83F6859D3421CB6BF3C11F645DB79"><enum>(B)</enum><text>modifications to
the building;</text>
</subparagraph><subparagraph id="id7DE0FB7A8B84423599801A951046E0BD"><enum>(C)</enum><text>revisions of
operating and maintenance procedures;</text>
</subparagraph><subparagraph id="idDA83F74912B6477ABBE805D82812FAA7"><enum>(D)</enum><text>software changes;
and</text>
</subparagraph><subparagraph id="idF0E087494CCB4AB9BD65A98B354A97D1"><enum>(E)</enum><text>new methods of
training or managing users of the building or operations and maintenance
staff.</text>
</subparagraph></paragraph><paragraph id="ID0bc524b25114407c877b4aedaf346085"><enum>(11)</enum><header>Energy
performance</header><text>The term <term>energy performance</term> means the
relative energy efficiency of a building, building equipment, or building
component, measured based on—</text>
<subparagraph id="id53F2304DB5AB49A586DF365D4F07586C"><enum>(A)</enum><text>for a building,
the quantity of energy required to provide building services; and</text>
</subparagraph><subparagraph id="idE8067FB9819F4EB6BB35D4FFC4459880"><enum>(B)</enum><text>for building
equipment and components, the impact of equipment or components on energy
usage.</text>
</subparagraph></paragraph><paragraph id="IDe571a0d80e1c4067a130f26389d9be24"><enum>(12)</enum><header>Forested
condition</header><text>The term <term>forested condition</term>, with respect
to land, means land—</text>
<subparagraph id="ID45da420c7401413b8b5cb5b3df08b3f9"><enum>(A)</enum><text>the area of which
is at least 1 acre, with strips of forest at least 120 feet wide, measured
stem-to-stem from the outer-most edge, for a continuous length of at least 363
feet; and</text>
</subparagraph><subparagraph id="ID97724846dd004feb93a8c6fb62ff8e4b"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idCA02AAC48DB64DBF925BCCC4AB8664E4"><enum>(i)</enum><text>at least 10 percent of
the area of which is stocked by trees of any size, or has been at least
10-percent stocked by trees at any time, and that is not subject to any
nonforest-related use that prevents normal tree regeneration and succession,
such as regular mowing, intensive grazing, or recreation activities; or</text>
</clause><clause id="idA3C2D8E7E80E4D63ACA6882F3D66AA75" indent="up1"><enum>(ii)</enum><text>for any western woodland species
for which the stocking described in clause (i) cannot be determined, at least 5
percent of which has a crown cover of trees of any size, or has had at least
5-percent cover at any time, and that is not subject to any nonforest-related
use that prevents normal tree regeneration and succession, such as regular
mowing, intensive grazing, or recreation activities.</text>
</clause></subparagraph></paragraph><paragraph id="ID670d1ee169754bb38c0645dc0eabb4cf"><enum>(13)</enum><header>Furnace</header><text>The
term <term>furnace</term> means a self-contained, indirect-fired appliance
that—</text>
<subparagraph id="idDEEBFECEF0B843DFAA629E6B93737CA7"><enum>(A)</enum><text>supplies heated
air to a residential building or commercial building through ducts to
conditioned spaces; and</text>
</subparagraph><subparagraph id="id69648C134D5644C0AC59B2049FF6F49B"><enum>(B)</enum><text>has a heat input
rate of less than 225,000 Btu per hour.</text>
</subparagraph></paragraph><paragraph id="ID74068a37dcea47628afa803325d715aa"><enum>(14)</enum><header>HVAC
system</header>
<subparagraph id="idC1EF8CFC36D249CE911ED257F671E9F4"><enum>(A)</enum><header>In
general</header><text>The term <term>HVAC system</term> means any system or
combination of systems that provides, collectively or individually, heating,
ventilation, or air conditioning to a building.</text>
</subparagraph><subparagraph id="id1597C8A7DC07439D8678982635F62A04"><enum>(B)</enum><header>Inclusions</header><text>The
term <term>HVAC system</term> includes equipment, distribution networks, and
terminals for a system described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="ID31b12e403968447489a50ce154d6d8e9"><enum>(15)</enum><header>IESNA</header><text>The
term <term>IESNA</term> means the Illuminating Engineering Society of North
America.</text>
</paragraph><paragraph id="ID57aa1402f5124d6ab18817d4a68bdd1a"><enum>(16)</enum><header>Market
penetration rate</header><text>The term <term>market penetration rate</term>
means, as determined by the Administrator, the rate of diffusion of a
technology, product, or practice in a defined market, expressed as—</text>
<subparagraph id="idB97F366FA5BD4FA7BA0F642645CC9195"><enum>(A)</enum><text>a percentage of
annual sales of the technology, product, or practice; or</text>
</subparagraph><subparagraph id="id696AF9D05F6B4496B7D412D47F8D3EEF"><enum>(B)</enum><text>a percentage of
existing installed stock—</text>
<clause id="idC24BD7B2E10246C6B9395AECF784B78E"><enum>(i)</enum><text>for a product or
category of products; or</text>
</clause><clause id="id145B1595832F44F597D5D81962B2A4FF"><enum>(ii)</enum><text>that uses a
technology, product, or practice.</text>
</clause></subparagraph></paragraph><paragraph id="id7051C445A77740FAA3C94454AE5E560E"><enum>(17)</enum><header>Offset
allowance</header><text>The term <term>offset allowance</term> means an
allowance awarded under this title for—</text>
<subparagraph id="id24EB0497C6EF473EAF742A8943BCE9C7"><enum>(A)</enum><text>each
sequestration of, reduction in, or prevention of, 1 ton of carbon dioxide or
carbon dioxide-equivalent emissions, as determined by the Administrator;
or</text>
</subparagraph><subparagraph id="id5C94EFF0C4C047158FBDC85BF17C36F8"><enum>(B)</enum><text>an eligible
emission credit retirement under section 802(a).</text>
</subparagraph></paragraph><paragraph id="id90F7706A7C0E45BFA8982EBD775526F7"><enum>(18)</enum><header>Offset
project</header><text>The term <term>offset project</term> means a project
that—</text>
<subparagraph id="id73DE989FAAA6463E9BA8E7172DB3C68C"><enum>(A)</enum><text>provides for a
reduction in greenhouse gases or greenhouse gas emissions through—</text>
<clause id="id7B536C2BCAEB46558F4F6105CBF9B0D2"><enum>(i)</enum><text>the capture and
destruction of methane from a landfill;</text>
</clause><clause id="id7020F2F822E84C42A992967F3AF09291"><enum>(ii)</enum><text>a reduction in
emissions of sulfur hexafluoride;</text>
</clause><clause id="id454C4B7A24354974B06920F3326B8015"><enum>(iii)</enum><text>the
sequestration of carbon through afforestation;</text>
</clause><clause id="idE6B685592CD747A3B3B2BDD927D7FF89"><enum>(iv)</enum><text>a reduction or
avoidance of carbon dioxide emissions from natural gas, oil, or propane end-use
combustion through end-use energy efficiency; or</text>
</clause><clause id="id549D34C188AD47CD93D16AFA6F09255E"><enum>(v)</enum><text>the prevention of
methane emissions through the use of agricultural manure management
operations;</text>
</clause></subparagraph><subparagraph id="id4560294839F24378B7CD33B3B39ED73F"><enum>(B)</enum><text>is carried out in
any State or other United States jurisdiction pursuant to a memorandum of
understanding between the project sponsor and the Administrator; and</text>
</subparagraph><subparagraph id="id65906D091D3E4E7C9C302782BA58DFA2"><enum>(C)</enum><text>begins operation
on or after the date of enactment of this title.</text>
</subparagraph></paragraph><paragraph id="IDadb5e068ea91468cb95e3eef44947973"><enum>(19)</enum><header>Residential
building</header><text>The term <term>residential building</term> means a
low-rise building (including a single family home, a multifamily structure of 3
stories or less above grade, and a manufactured modular or mobile home) to
which ANSI/ASHRAE/IESNA Standard 90.1 does not apply.</text>
</paragraph><paragraph id="ID886d96e6678e44d6866335fa951d471c"><enum>(20)</enum><header>RESNET</header><text>The
term <term>RESNET</term> means the Residential Energy Services Network.</text>
</paragraph><paragraph id="ID1fea02eb1d5f4e00aa2d16f88e80e323"><enum>(21)</enum><header>SF<enum-in-header><subscript>6</subscript></enum-in-header>-containing
operating equipment</header><text>The term
<term>SF<subscript>6</subscript>-containing operating equipment</term> means
any equipment that—</text>
<subparagraph id="id8767AC7EF5414F35A98A602D6BE926C1"><enum>(A)</enum><text>is used for the
transmission or distribution of electricity; and</text>
</subparagraph><subparagraph id="id91E3719FFBDF40E8905A333D3964A62E"><enum>(B)</enum><text>contains sulfur
hexafluoride.</text>
</subparagraph></paragraph><paragraph id="ID73ad04fed1a345ebaacc6349cf823e09"><enum>(22)</enum><header>Total
solids</header><text>The term <term>total solids</term> means the content of
solid materials in a given sample, including suspended solids, dissolved
solids, and suspended volatile solids.</text>
</paragraph><paragraph id="IDf38f584e66e9434b8dff41e92ce78253"><enum>(23)</enum><header>Transmission
or distribution entity</header>
<subparagraph id="id052B7F7131C445FDB5CD8F8E27E6373A"><enum>(A)</enum><header>In
general</header><text>The term <term>transmission or distribution entity</term>
means an entity that transmits or distributes electricity from an electric
generator to the electrical load of a customer.</text>
</subparagraph><subparagraph id="idF195B22D565B44749BC0221DD32FCFD6"><enum>(B)</enum><header>Inclusions</header><text>The
term <term>transmission or distribution entity</term> includes all related
assets and equipment of an entity described in subparagraph (A) that are
located within the service area of the entity, as defined by the applicable
State regulatory agency.</text>
</subparagraph></paragraph><paragraph id="ID93dc64ca6c27431795d32621d0d9662e"><enum>(24)</enum><header>Verification</header><text>The
term <term>verification</term> means any activity conducted by a project
sponsor to ensure the adequacy and consistency of a component of an offset
project, including monitoring and reporting to the Administrator on any
violation of this title.</text>
</paragraph><paragraph id="idAE647204C51B4BEA8564B3D33413AE03"><enum>(25)</enum><header>UNFCCC</header><text>The
term <term>UNFCCC</term> means the United Nations Framework Convention on
Climate Change, done at New York on May 9, 1992.</text>
</paragraph><paragraph id="ID79509411425142ed940f9ad9704fc114"><enum>(26)</enum><header>Volatile
solids</header><text>The term <term>volatile solids</term> means the fraction
of total solids of a given sample that is comprised primarily of organic
matter.</text>
</paragraph></section><section id="ID2e6445438e394f15b3dcf8b1ca089b08"><enum>802.</enum><header>General
requirements</header>
<subsection id="id8769EA756E60445D826797CDCCF36266"><enum>(a)</enum><header>Eligible carbon
dioxide emission offset projects and eligible emission credit
retirements</header><text>Subject to subsection (c) and in accordance with the
calculations and other requirements of section 803, the Administrator may award
offset allowances to the sponsor of any offset project or eligible emission
credit retirement if the sponsor has met all applicable requirements of this
title.</text>
</subsection><subsection id="IDb07da1f645024ff79b6ef9ca038bad9f"><enum>(b)</enum><header>Project
sponsor</header><text>Any person may act as the sponsor of an offset project or
eligible emission credit retirement if the person meets all the requirements
established by the Administrator.</text>
</subsection><subsection id="ID45069d4cea0a4f349061cc3c3133d5c2"><enum>(c)</enum><header>Requirements
for the award of offset allowances</header><text>Except as provided in section
803, with respect to the awarding of offset allowances under this
section—</text>
<paragraph id="ID26dabd5ee1f248848b9a7a302f9fd983"><enum>(1)</enum><text>an offset
allowance may not be awarded for an offset project that is required to be
carried out pursuant to any Federal, State, or local law (including a
regulation), other than this Act, or administrative or judicial order;</text>
</paragraph><paragraph id="IDf8bdaff50c13458da9ee4ebff3ce268e"><enum>(2)</enum><text>offset allowances
shall not be awarded to an offset project that includes an electric generation
component; and</text>
</paragraph><paragraph id="ID0b01c5b90d11487b97377b3150ead3aa"><enum>(3)</enum><text>an offset
allowance shall not be awarded to an offset project that is awarded credits or
allowances under any other mandatory or voluntary greenhouse gas program, as
determined by the Administrator.</text>
</paragraph></subsection><subsection id="IDf8e9d1e26d7247aca531ef509906431e"><enum>(d)</enum><header>Offset project
audit</header><text>The sponsor of an offset project shall provide to the
Administrator (or a designee) access to the physical location at which the
offset project is carried out to ensure compliance with this title.</text>
</subsection><subsection id="ID352bdf5ff96a44629e22fe7faf8d75c6"><enum>(e)</enum><header>Ineligibility
because of noncompliance</header><text>If the Administrator determines that an
offset project or sponsor of an offset project has not complied, or is not in
compliance, with this title, the Administrator may—</text>
<paragraph id="idE1A63D38CF944E5B9DEA3002327E3190"><enum>(1)</enum><text>revoke and retire
any offset allowances in the account of the sponsor of the offset project;
and</text>
</paragraph><paragraph id="id89275D5E6B024FFE91051271BAFCA280"><enum>(2)</enum><text>revoke any other
approvals issued by the Administrator with respect to the offset
project.</text>
</paragraph></subsection><subsection id="id859AC23C5E174C9A9BFF25F6BC25F788"><enum>(f)</enum><header>Regulations</header>
<paragraph id="idCF08F32BD92F49288A36C73D20BB552C"><enum>(1)</enum><header>In
general</header><text>Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations to carry out this
title.</text>
</paragraph><paragraph id="idB3A77B9A85D94237929A07E2CC83A39E"><enum>(2)</enum><header>Interaction
with Department of Agriculture</header>
<subparagraph id="id158B922D92F04869B16B8DD6028BA08A"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the Administrator
shall promulgate all regulations relating to greenhouse gas offsets under this
title.</text>
</subparagraph><subparagraph id="ID041aeebb483f49cb9f5d884ac08fb805"><enum>(B)</enum><header>Offsets</header><text>The
Administrator, in consultation with the Secretary of Agriculture, shall
promulgate regulations, in accordance with the requirements of this title,
relating to greenhouse gas offsets produced by agricultural sequestration
practices.</text>
</subparagraph></paragraph><paragraph id="idD77F3CC31E6D4CE982E6414E8E286D7A"><enum>(3)</enum><header>Additional
project types</header><text>In promulgating regulations pursuant to this
subsection, the Administrator shall establish requirements, in accordance with
the requirements of this title, relating to types of greenhouse gas offset
projects not otherwise addressed under this title.</text>
</paragraph></subsection></section><section id="ID1b7d3e60441a437a9eefb5c66f816762"><enum>803.</enum><header>Standards for
offset allowances</header>
<subsection id="IDa9d099cbb682404485ae8e6fdc84dad5"><enum>(a)</enum><header>Landfill
methane capture and destruction offset projects</header>
<paragraph id="id573303554C174F339A26362F9157BB3E"><enum>(1)</enum><header>In
general</header><text>An offset project for the capture and destruction of
methane shall be eligible to receive allowances under this title if the offset
project—</text>
<subparagraph id="id80D5E1CC6A2C499DA3481DFE7800E7C5"><enum>(A)</enum><text>captures and
destroys methane from a landfill that is not subject to—</text>
<clause id="id9769C6C8EC694A8981C971554E918C45"><enum>(i)</enum><text>the regulations
entitled <quote>Standards of Performance for New Stationary Sources; Municipal
Solid Waste Landfills</quote> under subpart www of part 60 of title 40, Code of
Federal Regulations (or successor regulations); or</text>
</clause><clause id="idDEA0AD1455D94B62A2D0F5C9F4EA3CDD"><enum>(ii)</enum><text>any other
relevant Federal regulations, including emissions guidelines for municipal
solid waste landfills under—</text>
<subclause id="idD3D8335653E047A2BC6D6099DD018BA4"><enum>(I)</enum><text>subpart cc of
part 60 of that title; or</text>
</subclause><subclause id="idC80FE26A75DF47589C9A613004DB1EDA"><enum>(II)</enum><text>subpart aaaa of
part 63 of that title; and</text>
</subclause></clause></subparagraph><subparagraph id="id29855CFD749C46688E501841FA0D8A10"><enum>(B)</enum><text>meets the
requirements of this subsection.</text>
</subparagraph></paragraph><paragraph id="idDA6BDDDCEE7545FD927576CE97BBC048"><enum>(2)</enum><header>Requirement</header><text>To
be eligible to receive an allowance under this subsection, an offset project
described in paragraph (1) shall use a landfill gas collection system that
provides for continuous metering and data computation of—</text>
<subparagraph id="idCC7E35A4EFE1476B8B90742CC807FB4F"><enum>(A)</enum><text>the landfill gas
volumetric flow rate; and</text>
</subparagraph><subparagraph id="id9466B68E64154B31A9469F6923BE9E14"><enum>(B)</enum><text>methane
concentration.</text>
</subparagraph></paragraph><paragraph id="id040A3F3EB83744B288D5C0F0FDB1E8D8"><enum>(3)</enum><header>Emissions
calculations</header>
<subparagraph id="IDab062d00b4db4ff789c11c3b94ef4adc"><enum>(A)</enum><header>Emissions
baseline</header>
<clause id="id2A1E98BE07274CE69294BC0CF6228F8C"><enum>(i)</enum><header>In
general</header><text>The emissions baseline of an offset project that receives
allowances under this subsection shall be the potential fugitive landfill
emissions of methane (measured in tons of carbon dioxide equivalent), as
calculated based on the quantity of methane collected and metered for thermal
destruction as part of the offset project in accordance with the following
formula: Emissions (tons of carbon dioxide equivalent) = (V × M × (1–OX) ×
GWP)/2000.</text>
</clause><clause id="idDCED6F03ED494033BF36CC39A6B61ABC"><enum>(ii)</enum><header>Abbreviations</header><text>In
the formula contained in clause (i)—</text>
<subclause id="idC295FB4801684DD6851E97FA7055CC78"><enum>(I)</enum><text><quote>V</quote>
represents the volume of methane collected (expressed in cubic feet);</text>
</subclause><subclause id="id396E3A793A1A4C7C9A6730C4B2C5B8F8"><enum>(II)</enum><text><quote>M</quote>
represents the mass of methane per cubic foot (with a default value of 0.04246
pounds per cubic foot at 1 atmosphere and 20 °C);</text>
</subclause><subclause id="id38E5CC68E7084D4099D07614B4FD4EE6"><enum>(III)</enum><text><quote>OX</quote>
represents the oxidation factor, which is the estimated portion of collected
methane that would have oxidized to carbon dioxide if not collected (with a
default value of 0.10); and</text>
</subclause><subclause id="id8297C0CE7D8C489DBC642D48D8E917F6"><enum>(IV)</enum><text><quote>GWP</quote>
represents the carbon dioxide-equivalent global warming potential of methane
(with a default value of 23).</text>
</subclause></clause></subparagraph><subparagraph id="IDb6f10404c70c4caea01c314b41073ced"><enum>(B)</enum><header>Emissions
reductions</header>
<clause id="idFFA7A3F37A98438AA1ED9DFDE5C6896F"><enum>(i)</enum><header>In
general</header><text>The emissions reductions of an offset project under this
subsection shall be the potential fugitive landfill emissions of methane
(measured in tons of carbon dioxide equivalent) that would have occurred if
metered methane collected from the landfill for thermal destruction as part of
the offset project was not collected and destroyed, as calculated in accordance
with the following formula: Emissions reductions (tons of carbon dioxide
equivalent) = (V × M × (1–OX) × C<subscript>ef</subscript> × GWP)/2000.</text>
</clause><clause id="id165D424906974D43856A914EEDA299B5"><enum>(ii)</enum><header>Abbreviations</header><text>In
the formula contained in clause (i)—</text>
<subclause id="id524ACD2140CC440EA17AA137B7EB0DE9"><enum>(I)</enum><text><quote>V</quote>
represents the volume of methane collected (expressed in cubic feet);</text>
</subclause><subclause id="idB832E2CC727D4BF2A115FF129E3795F5"><enum>(II)</enum><text><quote>M</quote>
represents the mass of methane pre cubic foot (with a default value of 0.04246
pounds per cubic foot at 1 atmosphere and 20 °C);</text>
</subclause><subclause id="id63D563366AE94893BD4F27EBB08576D9"><enum>(III)</enum><text><quote>OX</quote>
represents the oxidation factor, which is the estimated portion of collected
methane that would have oxidized to carbon dioxide if not collected (with a
default value of 0.10);</text>
</subclause><subclause id="idCE8121EE037D42589F3AD7B6DF6261C3"><enum>(IV)</enum><text><quote>C<subscript>ef</subscript></quote>
represents the combustion efficiency of methane control technology (with a
default value of 0.98); and</text>
</subclause><subclause id="id4D7A260648624D2F95DDEC967B35359A"><enum>(V)</enum><text><quote>GWP</quote>
represents the carbon dioxide-equivalent global warming potential of methane
(with a default value of 23).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID9594df0609af472b847fa91a7003cfe7"><enum>(4)</enum><header>Monitoring and
verification</header><text>Not less frequently than once each year, the sponsor
of an offset project that receives an allowance under this subsection shall
submit to the Administrator a monitoring and verification report,
including—</text>
<subparagraph id="idE8139186A43A41728D43E81E0DC6C9B1"><enum>(A)</enum><text>data relating to
monthly volumetric flow rate and methane concentration of the offset project,
including documentation that the methane was actually supplied to an applicable
combustion source; and</text>
</subparagraph><subparagraph id="IDfc0552fd65d74ecb858912b1039c1fdb"><enum>(B)</enum><text>verification of
landfill gas methane composition through landfill gas sampling and independent
laboratory analysis using applicable laboratory test methods of the
Environmental Protection Agency.</text>
</subparagraph></paragraph></subsection><subsection id="ID3a846ca23e8348d98ee3c6aaa8af1f7c"><enum>(b)</enum><header>Sulfur
hexafluoride offset projects</header>
<paragraph id="id3384236381D744E59087FA094B4F5E09"><enum>(1)</enum><header>In
general</header><text>An offset project to prevent, through capture and
storage, recycling, or destruction, the emission into the atmosphere of sulfur
hexafluoride from equipment in the electricity transmission and distribution
sector shall be eligible to receive allowances under this title.</text>
</paragraph><paragraph id="idC23D0184C591495A8E9BDBEE8E1F0D8D"><enum>(2)</enum><header>Requirements</header>
<subparagraph id="idC6567B5D901C41C6B0DEE3990C97AEC2"><enum>(A)</enum><header>In
general</header><text>To be eligible to receive an allowance under this
subsection, an offset project described in paragraph (1) shall include
incremental action beyond action taken with respect to the offset project
during the calendar year preceding the year in which an application is
submitted (referred to in this subsection as the <term>baseline year</term>) to
achieve a reduction in sulfur hexafluoride emissions, in accordance with the
guidance under—</text>
<clause id="id656F548A7637483385E8A3451777524A"><enum>(i)</enum><text>the International
Electrotechnical Commission document numbered 1634 and entitled
<quote>High-voltage switchgear and control gear—Use and handling of sulfur
hexafluoride (SF<subscript>6</subscript>) in high-voltage switchgear and
control gear</quote> (CEI/IEC 1634, 1995–04); and</text>
</clause><clause id="id291B2510F42741D4929A331D262F4D45"><enum>(ii)</enum><text>the Electric
Power Research Institute document entitled <quote>Practical Guide to
SF<subscript>6</subscript> Handling Practices</quote> (TR–113933, 2002).</text>
</clause></subparagraph><subparagraph id="idAD16FFB2E9D54F499A709DF44F46BD4A"><enum>(B)</enum><header>Entity-wide
emissions rates</header>
<clause id="id0B42F9EC74CD426CB38071F8114B5944"><enum>(i)</enum><header>Calculation</header>
<subclause id="id8BDF9898F9FE4B9CB55BCF377558BB5C"><enum>(I)</enum><header>In
general</header><text>The entity-wide sulfur hexafluoride emissions rate of an
offset project, measured as a percentage, shall be calculated in accordance
with the following formula: SF<subscript>6</subscript> emissions rate (%) =
(total SF<subscript>6</subscript> emissions for reporting year)/(total
SF<subscript>6</subscript> nameplate capacity at end of reporting year).</text>
</subclause><subclause id="idB555F4BFB5854473886B4242FCF64BAB"><enum>(II)</enum><header>Description</header><text>In
the formula contained in subclause (I), <quote>SF<subscript>6</subscript>
nameplate capacity</quote> means the capacity of all
SF<subscript>6</subscript>-containing operating equipment owned or operated as
part of the offset project, measured at the full and proper
SF<subscript>6</subscript>-charge of that equipment, rather than the actual
charge of the equipment, which may reflect leakage.</text>
</subclause></clause><clause id="ID8166920aa3c542a880c33031d74f7d84"><enum>(ii)</enum><header>Requirement</header>
<subclause id="idD20FA38D552E4E70B5EB3F04B5439ACE"><enum>(I)</enum><header>In
general</header><text>Subject to subclauses (II) and (III) and except as
provided in clause (iii), to be eligible to receive allowances under this
subsection, the entity-wide emissions rate for the baseline year of an offset
project shall be lower than the applicable emissions rate contained in the
following table:</text>
<table align-to-level="section" blank-lines-before="1" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211" table-type="2-Entry:-2-text,-bold-hds">
<ttitle>Emissions Rates by Region</ttitle>
<tgroup cols="2" grid-typeface="1.1" thead-tbody-ldg-size="1.10.12" ttitle-size="10"><colspec align="left" coldef="txt" colname="col1" colsep="0" colwidth="294" min-data-value="190" rowsep="0"></colspec><colspec align="left" coldef="txt-no-spread" colname="col2" colsep="0" colwidth="147" min-data-value="95" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="col1" rowsep="0">Region</entry><entry align="center" colname="col2" rowsep="0">Emissions rate</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">A</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">9.68%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">B</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">5.22%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">C</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">9.68%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">D</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">5.77%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">E</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">3.65%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">National</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">9.68%</entry>
</row>
</tbody>
</tgroup>
</table>
</subclause><subclause id="id41E7A4C947BB43F6B061748967FC6E0C"><enum>(II)</enum><header>Adjustment</header>
<item id="id5DC4A3533AB540AE8BFDA8AE5C423C66"><enum>(aa)</enum><header>Finding</header><text>Congress
finds that the emissions rates contained in the table under subclause (I) are
based on weighted average emissions rates for calendar year 2004 for the
Environmental Protection Agency sulfur hexafluoride partnership utilities in
each region.</text>
</item><item id="idAFCA6491BBB2476EAA074E28F6BE52E1"><enum>(bb)</enum><header>Determination</header><text>If
the Administrator determines that an emissions rate contained in the table
under subclause (I) for any region is in error and is higher than the national
weighted average emissions rate, the national emissions rate contained in that
table shall apply with respect to the region.</text>
</item></subclause><subclause id="idF9664C1EFC1C455382A1AB9D0BC1667C"><enum>(III)</enum><header>Region
descriptions</header><text>For purposes of the table under in subclause
(I)—</text>
<item id="idE79F061F9C2848638B330BF0294E37E3"><enum>(aa)</enum><text>Region A is
comprised of the States of Connecticut, Delaware, Maine, Massachusetts, New
Jersey, New York, New Hampshire, Pennsylvania, Rhode Island, and
Vermont;</text>
</item><item id="idD6A65A9B0C524CB58CDADDBECBA00127"><enum>(bb)</enum><text>Region B is
comprised of the States of Alabama, Florida, Georgia, Kentucky, Maryland,
Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West
Virginia, and the District of Columbia;</text>
</item><item id="idFBF922CE86A5480A9B58D54DF63E9224"><enum>(cc)</enum><text>Region C is
comprised of the States of Colorado, Illinois, Indiana, Michigan, Minnesota,
Montana, North Dakota, Ohio, South Dakota, Utah, Wisconsin, and Wyoming;</text>
</item><item id="id48A1ED28D08B4BB9842B1D44B3148647"><enum>(dd)</enum><text>Region D is
comprised of the States of Arkansas, Iowa, Kansas, Louisiana, Missouri,
Nebraska, New Mexico, Oklahoma, and Texas; and</text>
</item><item id="id4A63406A9449412BBE64CCCD21974692"><enum>(ee)</enum><text>Region E is
comprised of the States of Alaska, Arizona, California, Hawaii, Idaho, Nevada,
Oregon, and Washington.</text>
</item></subclause></clause><clause id="id38F092E3FED54D2382CFA9F32B524103"><enum>(iii)</enum><header>Exception</header><text>Notwithstanding
clause (ii), an offset project shall be eligible to receive allowances under
this subsection regardless of the entity-wide emissions rate for the baseline
year of the offset project if the sponsor of the offset project demonstrates to
the satisfaction of the Administrator that each of the following conditions is
met:</text>
<subclause id="idBF08314337364A50AA273B201F91B4A6"><enum>(I)</enum><text>The offset
project is being carried out at a transmission or distribution entity the
service area of which is predominantly urban.</text>
</subclause><subclause id="id509095F5DC8B485CA6AD295F641FC8E4"><enum>(II)</enum><text>The optimal
management of sulfur hexafluoride is prevented by at least 2 of the following
factors:</text>
<item id="IDe5f4548a957843208435f7a46a3e328f"><enum>(aa)</enum><text>The transmission
or distribution entity for which the offset project is being carried out is
comprised of older-than-average installed transmission or distribution
equipment compared to the national average age of the equipment.</text>
</item><item id="IDf3bb788c3e824bb989c5a422783f16d2"><enum>(bb)</enum><text>A
majority of the electricity load of the transmission or distribution entity for
which the offset project is being carried out is served by equipment that is
located underground, precluding management of sulfur hexafluoride emissions
through regular ongoing maintenance.</text>
</item><item id="IDc2edbf21547c4d7fb7f3efe1004b1dc4"><enum>(cc)</enum><text>The transmission
or distribution entity for which the offset project is being carried out is
unable to remove a substantial portion of equipment from service because doing
so would impair system reliability.</text>
</item><item id="ID33ab717056e144159e27ef12cdc5a86b"><enum>(dd)</enum><text>The required
equipment purpose or design for a substantial portion of the equipment of the
transmission or distribution entity for which the offset project is being
carried out results in inherently leak-prone equipment.</text>
</item></subclause></clause></subparagraph></paragraph><paragraph id="ID7c51cabf0d274036a767a75fb06592ea"><enum>(3)</enum><header>Emissions
calculations</header>
<subparagraph id="id4D41784600A1476AB3A2CEB4D82C1C78"><enum>(A)</enum><header>In
general</header><text>To be eligible to receive allowances under this
subsection, the sponsor of an offset project shall submit to the Administrator
an annual report describing the sulfur hexafluoride emissions of the offset
project (including such supporting documentation as the Administrator
determines to be appropriate), calculated in accordance with this
paragraph.</text>
</subparagraph><subparagraph id="idE8FB0175C70F4A7C9F279C217592D044"><enum>(B)</enum><header>Determination
of baseline emissions</header>
<clause id="id32D19B1E6F1C4B9D8ACBBC195A4B1A3F"><enum>(i)</enum><header>In
general</header><text>The baseline sulfur hexafluoride emissions of an offset
project that receives an allowance under this subsection shall be determined
based on the sulfur hexafluoride emissions emitted by the transmission or
distribution entity for the baseline year of the offset project.</text>
</clause><clause id="idDC22BA02A0E24EC197D3606F67782F50"><enum>(ii)</enum><header>Limitation</header><text>The
baseline year for an offset project an application of which is submitted before
January 1, 2009, shall be not earlier than 2005.</text>
</clause><clause id="id0B1601AA3831496384FBF9DD38F1B7B0"><enum>(iii)</enum><header>Monitoring</header><text>The
sponsor of an offset project that receives an allowance under this subsection
shall systematically track and account for all uses of sulfur hexafluoride by
the transmission or distribution entity for which the offset project is being
carried out to determine entity-wide emissions of sulfur hexafluoride,
including monitoring all electric transmission and distribution assets and all
SF<subscript>6</subscript>-containing operating equipment owned or operated by
the transmission or distribution entity.</text>
</clause></subparagraph><subparagraph id="id00037180A6DE457B95F94BC4151C51ED"><enum>(C)</enum><header>Mass balance
method</header>
<clause id="id77A7ECA408F5407293655B20C4629DDC"><enum>(i)</enum><header>In
general</header><text>For purposes of this paragraph, the sulfur hexafluoride
emissions of an offset project for a calendar year shall be determined based on
the following mass balance formula: SF<subscript>6</subscript> emissions (lbs)
= (SF<subscript>6</subscript> change in inventory) +
(SF<subscript>6</subscript> purchases and acquisitions) –
(SF<subscript>6</subscript> sales and disbursements) – (change in total
SF<subscript>6</subscript> nameplate capacity of equipment).</text>
</clause><clause id="id148A9B887D5C4CC0BE6E5B51B6DDE575"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="id1C16C42B23644A27BD67005321AFF813"><enum>(I)</enum><text><quote>SF<subscript>6</subscript>
change in inventory</quote> means the difference between, with respect to the
applicable offset project—</text>
<item id="id3B9945BCDB0A40DBB6109EB037381ECE"><enum>(aa)</enum><text>the quantity of
sulfur hexafluoride gas in storage (including gas held in cylinders and gas
carts, but not including gas held in SF<subscript>6</subscript>-containing
operating equipment) on January 1 of the applicable calendar year; and</text>
</item><item id="id815A51831E3845EEB7E4DE6671DBA110"><enum>(bb)</enum><text>the quantity of
sulfur hexafluoride gas in storage on December 31 of the applicable calendar
year;</text>
</item></subclause><subclause id="idC8A43A844D52412C8A37AFD59B3F723A"><enum>(II)</enum><text><quote>SF<subscript>6</subscript>
purchases and acquisitions</quote> means the total quantity of sulfur
hexafluoride gas acquired from other entities during the applicable calendar
year, as contained in storage containers or
SF<subscript>6</subscript>-containing operating equipment;</text>
</subclause><subclause id="idB30A0D79B86A44FD8718E44E20F12C7E"><enum>(III)</enum><text><quote>SF<subscript>6</subscript>
sales and disbursements</quote> means the total quantity of sulfur hexafluoride
gas sold or otherwise distributed to other entities during the applicable
calendar year, as contained in storage containers or
SF<subscript>6</subscript>-containing operating equipment; and</text>
</subclause><subclause id="idC0B5A13778D44943B85D0C1898D92B34"><enum>(IV)</enum><text><quote>change in
total SF<subscript>6</subscript> nameplate capacity of equipment</quote>
(measured at the full and proper SF<subscript>6</subscript>-charge of that
equipment, rather than the actual charge of the equipment, which may reflect
leakage), means the net change in the total volume of
SF<subscript>6</subscript>-containing operating equipment during the applicable
calendar year, equal to the difference between—</text>
<item id="idA632ED88BFA9481B9C1266A6928024EB"><enum>(aa)</enum><text>the total volume
of SF<subscript>6</subscript>-containing operating equipment obtained during
the applicable calendar year; and</text>
</item><item id="id00A9ABB2C3244ACA8D68DF465DDC4E79"><enum>(bb)</enum><text>the total volume
of SF<subscript>6</subscript>-containing operating equipment retired during the
applicable calendar year.</text>
</item></subclause></clause></subparagraph><subparagraph id="id0BF390EF8A184BF1A6EFE121E990A817"><enum>(D)</enum><header>Emissions</header>
<clause id="id49B037B884174FACBF1EC90753CB3FAC"><enum>(i)</enum><header>In
general</header><text>The sulfur hexafluoride emissions of an offset project
for a calendar year shall be calculated in accordance with the following
formula: Emissions (tons of carbon dioxide equivalent) =
[(V<subscript>iby</subscript> – V<subscript>iey</subscript>) +
(PA<subscript>psd</subscript> + PA<subscript>e</subscript> +
PA<subscript>rre</subscript>) – (SD<subscript>op</subscript> +
SD<subscript>rs</subscript> + SD<subscript>df</subscript> +
SD<subscript>sor</subscript>) – (CNP<subscript>ne</subscript> –
CNP<subscript>rse</subscript>)] × GWP/2000.</text>
</clause><clause id="idCCC18BF1E3D54AB9B0F2B8B2537713EC"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i), in which each sulfur hexafluoride value
shall be expressed in pounds—</text>
<subclause id="idF048BD5B90994F108314BDFB601FFEEB"><enum>(I)</enum><text><quote>V<subscript>iby</subscript></quote>
represents the sulfur hexafluoride inventory of the offset project in
cylinders, gas carts, and other storage containers (not including
SF<subscript>6</subscript>-containing operating equipment) on January 1 of the
applicable calendar year;</text>
</subclause><subclause id="id407CD96EAC97484990300134BE26DF6A"><enum>(II)</enum><text><quote>V<subscript>iey</subscript></quote>
represents the sulfur hexafluoride inventory of the offset project in
cylinders, gas carts, and other storage containers (not including
SF<subscript>6</subscript>-containing operating equipment) on December 31 of
the applicable calendar year;</text>
</subclause><subclause id="idC939FE9A01AF41D4AE69A5C0204FA780"><enum>(III)</enum><text><quote>PA<subscript>psd</subscript></quote>
represents the quantity of sulfur hexafluoride purchased from suppliers and
distributors in cylinders for the offset project during the applicable calendar
year;</text>
</subclause><subclause id="id9C7BF4A0339E437DAB2F4DFAE79D96A5"><enum>(IV)</enum><text><quote>PA<subscript>e</subscript></quote>
represents the quantity of sulfur hexafluoride provided by equipment
manufacturers in SF<subscript>6</subscript>-containing operating equipment
during the applicable calendar year;</text>
</subclause><subclause id="idBED40CB158AB47279777AC61A27D4956"><enum>(V)</enum><text><quote>PA<subscript>rre</subscript></quote>
represents the quantity of sulfur hexafluoride returned to the offset project
entity after off-site recycling during the applicable calendar year;</text>
</subclause><subclause id="id08D5DE2D514D482DAE5571C656CB59E9"><enum>(VI)</enum><text><quote>SD<subscript>op</subscript></quote>
represents sales of sulfur hexafluoride by the offset project to other entities
during the applicable calendar year, including through sulfur hexafluoride gas
remaining in SF<subscript>6</subscript>-containing operating equipment sold by
the offset project;</text>
</subclause><subclause id="id94584C15CCB0433C80097C50F2803262"><enum>(VII)</enum><text><quote>SD<subscript>rs</subscript></quote>
represents the quantity of sulfur hexafluoride returned by the offset project
to the supplier during the applicable calendar year;</text>
</subclause><subclause id="id371F6831A05D4F479A04EBA60CB769F0"><enum>(VIII)</enum><text><quote>SD<subscript>df</subscript></quote>
represents the quantity of sulfur hexafluoride sent by the offset project to
destruction facilities during the applicable calendar year;</text>
</subclause><subclause id="id17A6B268CBF04AEE8A409488DB5C1CA7"><enum>(IX)</enum><text><quote>SD<subscript>sor</subscript></quote>
represents the quantity of sulfur hexafluoride sent off-site for recycling by
the offset project during the applicable calendar year;</text>
</subclause><subclause id="idEFAD666FE5FF4F08A89609B05A17C9E7"><enum>(X)</enum><text><quote>CNP<subscript>ne</subscript></quote>
represents the total sulfur hexafluoride nameplate capacity (measured at full
and proper charge) of SF<subscript>6</subscript>-containing operating equipment
of the offset project acquired during the applicable calendar year;</text>
</subclause><subclause id="id0CCAD5A56FCE43F7A8E96E5A7D592BA5"><enum>(XI)</enum><text><quote>CNP<subscript>rse</subscript></quote>
represents the total sulfur hexafluoride nameplate capacity (measured at full
and proper charge) of SF<subscript>6</subscript>-containing operating equipment
retired or sold by the offset project during the applicable calendar year;
and</text>
</subclause><subclause id="idD9E69AFBAB7B4BD8898C1DBA9AAF2D01"><enum>(XII)</enum><text><quote>GWP</quote>
represents the carbon dioxide equivalent global warming potential of sulfur
hexafluoride (the default value of which is 22,200).</text>
</subclause></clause></subparagraph><subparagraph id="id29EAD9DD53FC4E088EBFF6A2ECFDC1C9"><enum>(E)</enum><header>Emissions
reductions</header>
<clause id="id4273BD64D05E4C23BCDFCE8962CDCFEC"><enum>(i)</enum><header>In
general</header><text>The emissions reduction of an offset project for a
calendar year shall be determined in accordance with the following formula:
Emissions reduction (tons of carbon dioxide equivalent) = (total pounds of
SF<subscript>6</subscript> emissions in baseline year) – (total pounds of
SF<subscript>6</subscript> emissions in reporting year) × GWP/2000.</text>
</clause><clause id="id0B258089755945F998F77A27203571CF"><enum>(ii)</enum><header>Description</header><text>For
purposes of the formula contained in clause (i)—</text>
<subclause id="id1A5041492E9D42B2856B5B257832B7F8"><enum>(I)</enum><text>each value shall
be determined in accordance with the calculations described in this paragraph;
and</text>
</subclause><subclause id="id5A3F2D7BBBED459BAA6103709C3CB510"><enum>(II)</enum><text><quote>GWP</quote>
represents the carbon dioxide equivalent global warming potential of sulfur
hexafluoride (the default value of which is 22,200).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID62dbfb533a7f40bd8cc5c470be1fecf0"><enum>(4)</enum><header>Monitoring and
verification</header>
<subparagraph id="idCDCA9E9ABE464A93A5610FC168ABDC08"><enum>(A)</enum><header>In
general</header><text>Not less frequently than once each year, the sponsor of
an offset project that receives an allowance under this subsection shall submit
to the Administrator a monitoring and verification report that includes—</text>
<clause id="id23725041D6614E4BBF4891F9A764D79D"><enum>(i)</enum><text>the information
and documentation described in paragraph (3)(A);</text>
</clause><clause id="id621100817EE44BFD994FE1885D4C93EB"><enum>(ii)</enum><text>an
identification of each facility managed by the transmission or distribution
entity for which the offset project is being carried out from which sulfur
hexafluoride gas is acquired or disbursed, including—</text>
<subclause id="id23B7DDA755F5468098310561AE1D8FF9"><enum>(I)</enum><text>a log of each
such acquisition or dispersal describing—</text>
<item id="id2415A091F82A407F9E460E60D92CDB30"><enum>(aa)</enum><text>the weight of
each cylinder transported before shipment from the facility; and</text>
</item><item id="idFF58ACC7E86E4BEE9C7D92D179FF1D85"><enum>(bb)</enum><text>the weight of
each cylinder after return to the facility; and</text>
</item></subclause><subclause id="id331FF46D88824BD1B79612FB5DCD94C7"><enum>(II)</enum><text>a
cylinder-specific log (including the location, weight, and specific identifying
information of any applicable equipment) for each cylinder used at the
facility—</text>
<item id="id43E4D38498E445EFBBE8B912ED119325"><enum>(aa)</enum><text>to
fill equipment with sulfur hexafluoride; or</text>
</item><item id="idD1175FB703A34197889D1F661F24078B"><enum>(bb)</enum><text>to
reclaim sulfur hexafluoride from equipment; and</text>
</item></subclause></clause><clause id="id89AD7253E74C41EF87C650B243D70A61"><enum>(iii)</enum><text>an inventory of
all SF<subscript>6</subscript>-containing operating equipment and all other
sulfur hexafluoride-related items (including cylinders, gas carts, and other
storage containers) used by the transmission or distribution entity for which
the offset project is being carried out.</text>
</clause></subparagraph><subparagraph id="idDF9036032EE14493A1831FC3062427F4"><enum>(B)</enum><header>Return of
logs</header><text>The project sponsor shall submit to the facility in control
of each applicable cylinder a copy of each log described in subparagraph
(A)(ii)(II) relating to the cylinder by not later than the earlier of—</text>
<clause id="id37DE32378ECA471A9E3FE3E5FD2A6F53"><enum>(i)</enum><text>the date on which
the sponsor completes use of the cylinder; and</text>
</clause><clause id="idD219D36D45994C4BB838A7EE499CE828"><enum>(ii)</enum><text>the date on
which the cylinder is empty.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID55bbb70bf02449b2a63e841a62c3fcf5"><enum>(c)</enum><header>Sequestration
of carbon due to afforestation or reforestation</header>
<paragraph id="id1293972C77B64A32B15DC825A460D0EC"><enum>(1)</enum><header>In
general</header><text>An offset project that sequesters carbon through the
conversion of nonforested land to a forested condition may receive allowances
under this title if—</text>
<subparagraph id="idD1D2D85EFD8E4FE485AB3BB2477588E6"><enum>(A)</enum><text>the offset
project occurs on land that has been in a nonforested state for at least 10
years immediately preceding the date of implementation of the offset
project;</text>
</subparagraph><subparagraph id="idF0B12942022940C3805946A8F9C49A78"><enum>(B)</enum><text>the offset
project is, as determined by the Administrator—</text>
<clause id="ID6c80d13a388447d9b114be8785d19afb"><enum>(i)</enum><text>not common
practice in the geographic area in which the offset project will occur;</text>
</clause><clause id="id98A3BA9129524CE39809E825AD7A9556"><enum>(ii)</enum><text>managed in
accordance with widely-accepted environmentally sustainable forestry practices;
and</text>
</clause><clause id="idA946D2AB50E447BCA1A50CF9DC72601B"><enum>(iii)</enum><text>designed to
promote restoration of native forests by using mainly native species and
avoiding the introduction of invasive nonnative species; and</text>
</clause><clause id="idC075F7B451F24EA882A393F0401EC51F"><enum>(iv)</enum><text>before any
commercial timber harvest-related activity occurs pursuant to the offset
project, an appropriate certification is obtained by the sponsor of the offset
project through—</text>
<subclause id="idA5CC42470FEF479D87FC6C5FE78A2C84"><enum>(I)</enum><text>the Forest
Stewardship Council;</text>
</subclause><subclause id="id625E82DEDA984735B016B95B6EBA3505"><enum>(II)</enum><text>the Sustainable
Forestry Institute;</text>
</subclause><subclause id="id488EB4845AD84B3190B86D098A96350D"><enum>(III)</enum><text>the American
Tree Farm System; or</text>
</subclause><subclause id="idD2AD6455A51E45318383CD8F2C5FEA3A"><enum>(IV)</enum><text>such other
similar organization as the Administrator determines to be appropriate.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDe32b9686ddf74501be5ea046637aaa3a"><enum>(2)</enum><header>Carbon
sequestration baseline</header>
<subparagraph id="id0F3F2179D9AC408FBF2E3DD0283B05D7"><enum>(A)</enum><header>In
general</header><text>To be eligible to receive allowances under this
subsection, the sponsor of an offset project shall determine, using data from
the 1-year period ending on the date on which the offset project begins
operation, the carbon content of certain carbon pools in accordance with this
paragraph.</text>
</subparagraph><subparagraph id="id3CB7703CEE8E493FA6E1FDFF4D2594A0"><enum>(B)</enum><header>Carbon
pools</header>
<clause id="id04E97281A30944E3AB454719C16D17C3"><enum>(i)</enum><header>Mandatory</header><text>As
a condition of receiving allowances under this subsection, the sponsor of an
offset project shall determine the carbon content of the following carbon
pools:</text>
<subclause id="ID976b99d5518442898c412eeae21fc57b"><enum>(I)</enum><text>Live above-ground
tree biomass.</text>
</subclause><subclause id="IDcca08865af654cffb08294fb831f3ec6"><enum>(II)</enum><text>Live
below-ground tree biomass.</text>
</subclause><subclause id="ID3cf92707e1ec44f3b3b9dea145bc7fd1"><enum>(III)</enum><text>Soil
carbon.</text>
</subclause><subclause id="IDbbd39baf45c3498caca005d3e584ee9c"><enum>(IV)</enum><item commented="no" display-inline="yes-display-inline" id="id18AB614551724F9C891E7D4907977662"><enum>(aa)</enum><text>Except as provided in
item (bb), dead organic matter and coarse woody debris.</text>
</item><item id="id046AE756DC7B438396412AF7FD3358C7" indent="up1"><enum>(bb)</enum><text>If the Administrator determines that
the baseline measurement of the dead organic matter or coarse woody debris
carbon pool for an offset project is at or near zero, the determination of the
carbon content of that carbon pool shall be discretionary under clause
(ii).</text>
</item></subclause></clause><clause id="idB68A6C53C80C4479A01EB6905138844A"><enum>(ii)</enum><header>Discretionary</header><text>The
sponsor of an offset project may elect to determine the carbon content of the
following carbon pools:</text>
<subclause id="ID9173803dfd444a408aa1cb644412c5d3"><enum>(I)</enum><text>Live above-ground
non-tree biomass.</text>
</subclause><subclause id="ID2869cc543941423987aa9f5577ed5a11"><enum>(II)</enum><text>Dead organic
matter and forest floor.</text>
</subclause></clause><clause id="id5EE8592EBC0A4AFA9F76E523E8813EE5"><enum>(iii)</enum><header>Division into
subpopulations</header>
<subclause id="idEA19BC2C5BF147E7923690C786FC8F95"><enum>(I)</enum><header>In
general</header><text>To increase the accuracy of the calculation of carbon
content under this subparagraph, the sponsor of the offset project shall divide
the land within the jurisdiction of the offset project into subpopulations that
form relatively homogenous units.</text>
</subclause><subclause id="id419CF51F0138455F9E02FECD1CBC8DF3"><enum>(II)</enum><header>Factors for
consideration</header><text>In dividing land of the offset project under
subclause (I), the sponsor shall take into consideration—</text>
<item id="id3AE2B06C113D4B8DAA5330D48956BCAD"><enum>(aa)</enum><text>vegetation and
tree species (including existing vegetation and trees and vegetation and trees
to be used as part of the offset project); and</text>
</item><item id="id3D21BA62BA9F42138EB9404C04040A5F"><enum>(bb)</enum><text>site-specific
factors, such as soil type, elevation, slope, and age class.</text>
</item></subclause></clause><clause id="id93060AA5F6174ECBBF97A2B7547934EE"><enum>(iv)</enum><header>Subpopulation
calculation</header>
<subclause id="id1348BA122D4A45699CFBC8E06B92DE85"><enum>(I)</enum><header>In
general</header><text>The carbon content of each subpopulation of a carbon pool
under this subparagraph shall be calculated in accordance with the following
formula: carbon dioxide (tons) = [(A × C/ha)(44/12)] / 0.9072.</text>
</subclause><subclause id="id208219DE1D78440D9FFBA946C01C5DEA"><enum>(II)</enum><header>Description</header><text>In
the formula contained in subclause (I)—</text>
<item id="id9B23EFE0457F4BBA878CB1262FC4D858"><enum>(aa)</enum><text><quote>A</quote>
represents the area in hectares of the applicable subpopulation; and</text>
</item><item id="id8C2965BF19764E748852B459AC2FE5B3"><enum>(bb)</enum><text><quote>C/ha</quote>
represents the average carbon content per hectare of each carbon pool.</text>
</item></subclause></clause><clause id="ID525278962ad149a2869f3ec15f91b5eb"><enum>(v)</enum><header>Carbon pool
calculations</header>
<subclause id="id833562AC561C410C91E514E7CC24525A"><enum>(I)</enum><header>In
general</header><text>The carbon content of each carbon pool shall be
calculated using a measurement protocol and sample size that achieves
demonstrated, quantified accuracy for the combined carbon pool calculation
under subparagraph (C), such that the Administrator is 95-percent confident
that the calculated value is within 10 percent of the true mean.</text>
</subclause><subclause id="idE4A297849DE0440C87F5B593E1FBA041"><enum>(II)</enum><header>Requirements</header><text>Measurement
and sampling practices under this subparagraph shall meet the following
requirements:</text>
<item id="ID970fa176075144d3ba3dd2709cc317e0"><enum>(aa)</enum><text>Adequate sample
size that meets each applicable requirement with respect to each applicable
subpopulation.</text>
</item><item id="ID6694450ad5e9401a81fd667e11e1753d"><enum>(bb)</enum><text>Minimum required
number of sampling plots for each subpopulation, as determined in accordance
with the formula contained in subclause (III).</text>
</item></subclause><subclause id="idA1B0C02034FC43C8A89FF840C28DCC9F"><enum>(III)</enum><header>Formula</header>
<item id="id279DA731344F48EF83641FDBF0A3A35A"><enum>(aa)</enum><header>In
general</header><text>The formula referred to in subclause (II)(bb) is the
following: n = (s × 1.960)/(mean × re)<superscript>2</superscript>.</text>
</item><item id="idA76A8EDDC81842F0861AEBFFD2886D58"><enum>(bb)</enum><header>Description</header><text>In
the formula contained in item (aa)—</text>
<subitem id="idEE40B4B0A6674ABFAD9BC39D2643FA4D"><enum>(AA)</enum><text><quote>n</quote>
represents the required number of sample plots for each applicable
subpopulation;</text>
</subitem><subitem id="id029688144E4246529A7DE7812834983D"><enum>(BB)</enum><text><quote>s</quote>
represents the standard deviation;</text>
</subitem><subitem id="idAFB4F32D01F4479393BA819441DF2F30"><enum>(CC)</enum><text><quote>mean</quote>
represents the average carbon content calculated for the sample population;
and</text>
</subitem><subitem id="idB3D709570F4F46518F638BD9557AD217"><enum>(DD)</enum><text><quote>re</quote>
represents the level of sampling error (with a default value of 0.08) to ensure
a total maximum error of not more than 10 percent, assuming a total error due
to measurement error of 0.02.</text>
</subitem></item></subclause></clause></subparagraph><subparagraph id="idA5D9A59DF2954FD693A1CF75C8156C1B"><enum>(C)</enum><header>Total carbon
content calculation</header>
<clause id="idBED7E46718454BAD8457DD157DA8DFE9"><enum>(i)</enum><header>In
general</header><text>The carbon content of all carbon pools within the
jurisdiction of an offset project shall be determined, based on the values
calculated under subparagraph (B)(iv), in accordance with the following
formula: TC<subscript>pb</subscript> = TC<subscript>latb</subscript> +
TC<subscript>lbtb</subscript> + TC<subscript>s</subscript> [+
TC<subscript>lantb</subscript> + TC<subscript>doff</subscript> +
TC<subscript>docwd</subscript>].</text>
</clause><clause id="idB9150B7D579747C7B848FFE05A763E62"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="id8387EFC4BD52438A9F05590BC2F55B0E"><enum>(I)</enum><text><quote>TC<subscript>pb</subscript></quote>
represents the total carbon content of all carbon pools within the jurisdiction
of an offset project;</text>
</subclause><subclause id="id02BB84ED50DD4A75B63B9064E78CE079"><enum>(II)</enum><text><quote>TC<subscript>latb</subscript></quote>
represents the total carbon content of live above-ground tree biomass in all
applicable subpopulations;</text>
</subclause><subclause id="id3962A2F276E444DEB1CB60D6F0330D5F"><enum>(III)</enum><text><quote>TC<subscript>lbtb</subscript></quote>
represents the total carbon content of live below-ground tree biomass in all
applicable subpopulations;</text>
</subclause><subclause id="idFF0AF379ED19424E9A7D5D4C49A888DB"><enum>(IV)</enum><text><quote>TC<subscript>s</subscript></quote>
represents the total carbon content of soil carbon in all applicable
subpopulations;</text>
</subclause><subclause id="idFE0089FB6B2B43B49D24DFDAF3D26459"><enum>(V)</enum><text><quote>TC<subscript>lantb</subscript></quote>
represents the total carbon content of live above-ground non-tree biomass in
all applicable subpopulations;</text>
</subclause><subclause id="idE3C8A1D99464412FBA92C61296044A45"><enum>(VI)</enum><text><quote>TC<subscript>doff</subscript></quote>
represents the total carbon content of dead organic matter and forest floor in
all applicable subpopulations; and</text>
</subclause><subclause id="id96529130C30B4513B4F7685AB54E05C9"><enum>(VII)</enum><text><quote>TC<subscript>docwd</subscript></quote>
represents the total carbon content of dead organic matter and coarse woody
debris in all applicable subpopulations.</text>
</subclause></clause></subparagraph><subparagraph id="idA1F7763547FA43748CF85D08A7ADB2A8"><enum>(D)</enum><header>Requirement</header><text>Calculations
under this paragraph shall be in accordance with applicable forestry best
practices and guidance contained in section 3 of part 1 of chapter 1 of the
technical guidelines for the voluntary reporting of greenhouse gases program of
the Department of Energy, dated March 2006 (or successor guidelines).</text>
</subparagraph></paragraph><paragraph id="ID22527c111f704443be9aca138b989418"><enum>(3)</enum><header>Calculating
sequestration allowances</header>
<subparagraph id="idC2FB9BA4B4A94E048A43BC687DAEB771"><enum>(A)</enum><header>In
general</header><text>For any year, the Administrator shall allocate allowances
under this subsection based on the quantity of carbon sequestered as a result
of the applicable offset project, based on the difference between, expressed as
tons of carbon dioxide—</text>
<clause id="id99785093296440998B336EE09AD73D2F"><enum>(i)</enum><text>the aggregate
carbon uptake and carbon emissions of the carbon pools of the offset project
during the applicable year; and</text>
</clause><clause id="id3A23040122E141C1990314DFDFF7E135"><enum>(ii)</enum><text>the carbon
content of the carbon pools of the offset project for the preceding year or the
baseline year, as appropriate.</text>
</clause></subparagraph><subparagraph id="id93EECA31EA3E42199A130E9AB7514AB0"><enum>(B)</enum><header>Formula</header>
<clause id="idC9FDEAE539FD4F63BA22333443578277"><enum>(i)</enum><header>In
general</header><text>For purposes of allocating allowances under this
subsection, the quantity of carbon sequestered shall be calculated using a
stock-change approach, in accordance with the following formula:
NCS<subscript>t</subscript> = I<subscript>t</subscript> –
I<subscript>t–1</subscript>.</text>
</clause><clause id="idA37F1B393BBE41EAB97A207289FDA728"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="id76B45E3EE2AC42F48A96A6E59A96466C"><enum>(I)</enum><text><quote>NCS<subscript>t</subscript></quote>
represents the net carbon sequestered during reporting period
<added-phrase reported-display-style="italic">t</added-phrase>;</text>
</subclause><subclause id="idFAD2232691EB416BA1DF7B4388EB8751"><enum>(II)</enum><text><quote>I<subscript>t</subscript></quote>
represents the inventory of carbon stock for all carbon pools in all applicable
subpopulations within the jurisdiction of the offset project during reporting
period <added-phrase reported-display-style="italic">t</added-phrase>;
and</text>
</subclause><subclause id="id9562836ECCA34F40980AA7A428DFA534"><enum>(III)</enum><text><quote>I<subscript>t–1</subscript></quote>
represents the inventory of carbon stock for all carbon pools in all applicable
subpopulations within the jurisdiction of the offset project during the
reporting period immediately preceding reporting period
<added-phrase reported-display-style="italic">t</added-phrase>.</text>
</subclause></clause></subparagraph><subparagraph id="id25B87F8DD68D4396AAADCC67996A8622"><enum>(C)</enum><header>Requirements</header>
<clause id="idB201547D3E5A4D5F878ADC1E8B6E39BD"><enum>(i)</enum><header>Remeasurement</header><text>Except
as provided in paragraph (2)(B)(i)(IV)(bb), the carbon content of each carbon
pool calculated under paragraph (2) shall be remeasured for each year during
which the applicable offset project receives an allowance under this
subsection, with equal or greater precision, in accordance with that
paragraph.</text>
</clause><clause id="idB2A80EC6E9BA4CC7B1E8C6716E21B337"><enum>(ii)</enum><header>Determination
of carbon stock</header><text>Each calculation of the carbon stock of a
subpopulation of a carbon pool under this paragraph shall be made in accordance
with paragraph (2).</text>
</clause><clause id="idF475C97424064AED890F0AC8C1D09B2E"><enum>(iii)</enum><header>Potential
losses</header>
<subclause id="idF4B8AEA58B124FE08604EA65CA9F5E9B"><enum>(I)</enum><header>In
general</header><text>Subject to subclause (II), the sponsor of an offset
project shall decrease the net value of change in carbon stock calculated in
accordance with this paragraph by not more than 10 percent of the value to
account for potential losses of sequestered carbon in any carbon pool of the
offset project.</text>
</subclause><subclause id="idB6FEEF7723E74B99A9A567DB5887F546"><enum>(II)</enum><header>Insurance</header><text>The
requirement under subclause (I) shall not apply to any offset project that
obtains long-term insurance approved by the Administrator to guarantee
replacement of any lost sequestered carbon for which an allowance is issued
under this subsection.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID093adc16c10a4619b98dbc2077bf5dde"><enum>(4)</enum><header>Monitoring and
verification</header><text>Not less frequently than once every 5 years, the
sponsor of an offset project that receives allowances under this subsection
shall submit to the Administrator a monitoring and verification report,
including—</text>
<subparagraph id="id6C7A651DD8C44B2BAEA01C79BE590665"><enum>(A)</enum><text>a calculation of
total carbon stock within the jurisdiction of the offset project; and</text>
</subparagraph><subparagraph id="id4618AA50CBCB49DBA7CD16D62F517C46"><enum>(B)</enum><text>data from the
direct measurement of carbon content for each carbon pool used to determine the
baseline and reporting period carbon content of the offset project.</text>
</subparagraph></paragraph><paragraph id="ID0165c1f267d743f880e757777f93bd2b"><enum>(5)</enum><header>Carbon
sequestration permanence</header>
<subparagraph id="id7DFCD87B615C48EC9F7177DF76F50569"><enum>(A)</enum><header>In
general</header><text>To address the permanence of sequestered carbon, the
sponsor of each offset project that receives an allowance under this subsection
shall place land within the jurisdiction of the offset project under a
legally-binding permanent conservation easement, approved by the Administrator,
that requires the land to be maintained in a forested condition in
perpetuity.</text>
</subparagraph><subparagraph id="ID1af212ea299e472586d6b6cb09afaefc"><enum>(B)</enum><header>Requirements</header><text>A
conservation easement under subparagraph (A) shall include a requirement
that—</text>
<clause id="idEB2AE72806B048B0A2B9510F96550267"><enum>(i)</enum><text>the carbon
density within the jurisdiction of the offset project shall be maintained at
long-term levels; and</text>
</clause><clause id="id9DCCF6070BAC4F469FEDB8515309C3FB"><enum>(ii)</enum><text>land within the
jurisdiction of the offset project shall be managed in accordance with
environmentally sustainable forestry practices.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID3df91c06188446a39e1e0837116dfc69"><enum>(d)</enum><header>Reduction and
avoidance of carbon dioxide emissions from natural gas, oil, and propane
end-use combustion due to end-use energy efficiency</header>
<paragraph id="idDDBD411A012B43189F78320DAAEEFC8F"><enum>(1)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="idCFC81E70D2B142A7BF4D7A1282CEF212"><enum>(A)</enum><header>Building
envelope</header><text>The term <term>building envelope</term> means the
elements of a building that separate conditioned space from unconditioned
space, or that enclose semiheated space, through which thermal energy may be
transferred to or from the exterior, unconditioned space, or conditioned space,
including any element that separates the interior of a building from the
outdoor environment (such as walls, windows, foundation, basement slab,
ceiling, roof, and insulation).</text>
</subparagraph><subparagraph id="ID938bff89eb2f490db954bbf067d139f8"><enum>(B)</enum><header>Passive
solar</header><text>The term <term>passive solar</term>, with respect to a
building, means a combination of building design features and building
components that use solar energy to reduce or eliminate the need for—</text>
<clause id="idCED81D8AF6EA42E3AB2D23326ABE1716"><enum>(i)</enum><text>mechanical
heating and cooling; and</text>
</clause><clause id="id98B2950EB87F40C89B83BC73EBEE7674"><enum>(ii)</enum><text>daytime
artificial lighting.</text>
</clause></subparagraph><subparagraph id="id763A9EE8AC8C4967B01007D0794C56C6"><enum>(C)</enum><header>Whole-building
retrofit</header><text>The term <term>whole-building retrofit</term> means any
building project that—</text>
<clause id="id8D3C9C38963B4662AFD20F377235E0E1"><enum>(i)</enum><text>involves the
replacement of more than 1 building system or set of building components;
and</text>
</clause><clause id="id010E120846F1492CA0E9EDCD194C2C88"><enum>(ii)</enum><text>requires a
building permit.</text>
</clause></subparagraph><subparagraph id="ID1a6403d41f9848eb80483488b9d83032"><enum>(D)</enum><header>Zero-net energy
building</header><text>The term <term>zero-net energy building</term> means a
building designed to produce as much energy, using renewable energy sources, as
the building is projected to use, as measured on an annual basis.</text>
</subparagraph></paragraph><paragraph id="idE800501EA9F74F648A7BCA69BD7D3611"><enum>(2)</enum><header>Eligibility</header><text>An
offset project shall be eligible to receive allowances under this title if the
offset project—</text>
<subparagraph id="id9FE3887A5C014D24845D696622104776"><enum>(A)</enum><text>reduces carbon
dioxide emissions by reducing on-site combustion of natural gas, oil, or
propane for end-use in a commercial building or a residential building by
improving the energy efficiency of fuel usage or the energy-efficient delivery
of energy services; and</text>
</subparagraph><subparagraph id="id4B283A0A581741B881BBED543755D8EE"><enum>(B)</enum><text>meets the other
requirements of this subsection.</text>
</subparagraph></paragraph><paragraph id="idCAFD2E8AB12B4DE6986F7EE55EA75B00"><enum>(3)</enum><header>Requirements</header>
<subparagraph id="idDD557004CBC24133BEAFE767B8406BDE"><enum>(A)</enum><header>In
general</header><text>To be eligible to receive allowances under this
subsection, an offset project shall reduce carbon dioxide emissions through 1
or more of the following measures:</text>
<clause id="ID015656a82c9c40eb9676085ef075ec27"><enum>(i)</enum><text>Measures to
improve the energy efficiency of combustion equipment that provide space
heating and hot water, including a reduction in fossil fuel consumption through
the use of renewable energy.</text>
</clause><clause id="IDb20aaec25b0547469daea20d8e90c465"><enum>(ii)</enum><text>Measures to
improve the efficiency of a heating distribution system, including proper
sizing and commissioning of heating systems.</text>
</clause><clause id="IDd07d13f49ba1409cbc0a5cb44c993d24"><enum>(iii)</enum><text>Installation or
improvement of energy management systems.</text>
</clause><clause id="IDd20ade9f1a9546ab844b47a883550da5"><enum>(iv)</enum><text>Measures to
improve the efficiency of hot water distribution systems and reduction in
demand for hot water.</text>
</clause><clause id="ID4771b50e471b42dd9399ad841c315c2f"><enum>(v)</enum><text>Measures to
improve the thermal performance of the building envelope or reduce building
envelope air leakage.</text>
</clause><clause id="ID30886cce29e745339be5b9160e9a0328"><enum>(vi)</enum><text>Measures to
improve the passive solar performance of buildings and use of active heating
systems using renewable energy.</text>
</clause><clause id="ID3df7dab2e6fc4c99be1a9a15bdfefe9d"><enum>(vii)</enum><text>Use of a less
carbon-intensive fuel in combustion systems, including the use of liquid or
gaseous renewable fuels, but not including a conversion to electricity.</text>
</clause></subparagraph><subparagraph id="ID61d275dd3d94475a99e819cd69eef048"><enum>(B)</enum><header>New
buildings</header><text>To be eligible to receive allowances under this
subsection for an offset project a component of which is a new building, the
new building shall be designed—</text>
<clause id="id81B79B8CC1C1479DA79D957FB9326D90"><enum>(i)</enum><text>to replace an
existing building on the offset project site; or</text>
</clause><clause id="id9059E4769E954138B1567E6093EE7AFC"><enum>(ii)</enum><text>to be a zero-net
energy building.</text>
</clause></subparagraph><subparagraph id="ID2d24658d1bec40a798a48f5c844a5a3f"><enum>(C)</enum><header>Performance
standards</header>
<clause id="ID1a890d8705604b328a439f7f8b40ba2a"><enum>(i)</enum><header>In
general</header><text>To be eligible to receive allowances under this
subsection, an offset project shall meet the applicable performance
requirements of this subparagraph.</text>
</clause><clause id="ID088900bb399b486a92be203cd63c207a"><enum>(ii)</enum><header>Sizing and
installation</header><text>Any combustion equipment and related air handling
equipment (including any HVAC system) installed as part of an offset project
shall be sized and installed in accordance with—</text>
<subclause id="ID4284c1d9eece42699e0e56f6244a0f87"><enum>(I)</enum><text>for commercial
HVAC systems—</text>
<item id="idAFB15CBBA4D949B28A5E268338086DC8"><enum>(aa)</enum><text>ANSI/ASHRAE/IESNA
Standard 90.1–2004, entitled <quote>Energy Standard for Buildings Except
Low-Rise Residential Buildings</quote> (or a successor standard); and</text>
</item><item id="id3405B9CC119C4140B2AE86C74DA2B140"><enum>(bb)</enum><text>ANSI/ASHRAE
Standard 62.1–2004, entitled <quote>Ventilation for Acceptable Indoor Air
Quality</quote> (or a successor standard); and</text>
</item></subclause><subclause id="ID5d26dc30f5a64150a1bb401cabc36c0c"><enum>(II)</enum><text>for residential
HVAC systems—</text>
<item id="id2C81642F73424B169EB2E7E96DF17720"><enum>(aa)</enum><text>for sizing
specifications, the eighth edition of the Air Conditioner Contractors of
America Manual J, entitled <quote>Residential Load Calculation</quote> (or
successor specifications); and</text>
</item><item id="idAF15D797078F43A4A3C22DD9CEF36169"><enum>(bb)</enum><text>for applicable
installation specifications, the document of the Consortium for Energy
Efficiency entitled <quote>Specification of Energy-Efficient Installation and
Maintenance Practices for Residential HVAC Systems</quote> and dated 2000 (or a
successor document).</text>
</item></subclause></clause><clause id="IDbf45e37d2be140afb922a2e3e7c32e4d"><enum>(iii)</enum><header>Whole-building
energy performance</header><text>Any eligible new building or whole-building
retrofit that is part of an offset project shall meet the following
requirements:</text>
<subclause id="ID9dcce8d0dbc74f1c81aee8c849ad99e5"><enum>(I)</enum><header>Commercial
buildings</header>
<item id="idD76CDC67765F46968F65C7966F8970F7"><enum>(aa)</enum><header>In
general</header><text>Except as provided in item (bb), commercial buildings
shall exceed by at least 30 percent the energy performance requirements of
ANSI/ASHRAE/IESNA Standard 90.1–2004, entitled <quote>Energy Standard for
Buildings Except Low-Rise Residential Buildings</quote> (or a successor
standard).</text>
</item><item id="idD5D8B431819B4262A032D0AA5A1C5D1D"><enum>(bb)</enum><header>Exception</header><text>A
multifamily residential building classified as a commercial building under
ANSI/ASHRAE/IESNA Standard 90.1–2004 (or a successor standard) shall exceed the
energy performance requirements described in item (aa) by at least 20
percent.</text>
</item></subclause><subclause id="IDeb865e638f2f4976bceea18b5919875e"><enum>(II)</enum><header>Residential
buildings</header><text>Residential buildings shall exceed the energy
performance requirements of the 2004 International Energy Conservation Code (or
a successor code) by at least 30 percent.</text>
</subclause></clause></subparagraph><subparagraph id="IDeed3bcade5834c7389eca251702f7a94"><enum>(D)</enum><header>Offset projects
initiated before January 1, 2009</header><text>To be eligible to receive
allowances under this subsection, each energy conservation measure implemented
as part of an offset project initiated before January 1, 2009, shall meet the
following requirements:</text>
<clause id="ID905267963b8f41dd893c27ef5ca89734"><enum>(i)</enum><header>Combustion
equipment</header>
<subclause id="id128508DCE40549228F70EDE46D895C06"><enum>(I)</enum><header>In
general</header><text>Combustion equipment installed as part of the offset
project shall meet the energy efficiency performance standards required under
this clause.</text>
</subclause><subclause id="IDe3f330cff76d4f95bc4c2ceb5411f3ce"><enum>(II)</enum><header>Commercial
boilers</header>
<item id="id301976B9D49B4DAAAC3BE6DDF2BCEFB6"><enum>(aa)</enum><header>In
general</header><text>Commercial boilers shall meet or exceed the energy
efficiency criteria specified in the following table:</text>
<table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="4-Generic:-1-text,-3-num">
<ttitle>Minimum Commercial Boiler Energy Efficiency</ttitle>
<tgroup cols="4" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="left" coldef="txt" colname="col1" colsep="1" colwidth="31" min-data-value="20" rowsep="0"></colspec><colspec align="left" coldef="fig" colname="col2" colsep="1" colwidth="232" min-data-value="25"></colspec><colspec align="left" coldef="txt" colname="col3" colsep="1" colwidth="31" min-data-value="20"></colspec><colspec align="left" coldef="fig" colname="col4" colsep="1" colwidth="93" min-data-value="10" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="col1" rowsep="1">Technology</entry><entry align="center" colname="col2" rowsep="1">Size (Btu/hour)</entry><entry align="center" colname="col3" rowsep="1">Rating method</entry><entry align="center" colname="col4" rowsep="1">Minimum efficiency</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Gas-fired</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">125,000–300,000</entry><entry align="left" colname="col3" leader-modify="force-ldr" rowsep="0">AFUE</entry><entry align="left" colname="col4" leader-modify="clr-ldr" rowsep="0">88%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Gas-fired</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">300,000–12,500,000</entry><entry align="left" colname="col3" leader-modify="force-ldr" rowsep="0">Thermal efficiency</entry><entry align="left" colname="col4" leader-modify="clr-ldr" rowsep="0">90%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Oil-fired</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">300,000 or
more</entry><entry align="left" colname="col3" leader-modify="force-ldr" rowsep="0">Thermal efficiency</entry><entry align="left" colname="col4" leader-modify="clr-ldr" rowsep="0">88%</entry>
</row>
</tbody>
</tgroup>
</table>
</item><item id="id5F6FF1559B544B4B91371040168CBDFC"><enum>(bb)</enum><header>Gas-fired
boilers</header><text>A gas-fired boiler installed as part of the offset
project shall be installed with—</text>
<subitem id="id59093EE2C39B444086174480FCBC18A7"><enum>(AA)</enum><text>controls
allowing the gas-fired boiler to operate in condensing mode, such that the
design and operation of the boiler leads to the production of condensate in
flue gases; and</text>
</subitem><subitem id="idBF92C5FAB6BA4DCA973EACB8804FE3C2"><enum>(BB)</enum><text>vents designed
for positive vent static pressure and vent gas temperature that leads to
condensate production in the vent.</text>
</subitem></item><item id="id56A20F048F824CD1A8371E6B256483AE"><enum>(cc)</enum><header>Thermal
efficiency</header><text>For purposes of the table contained in item (aa), the
term <term>thermal efficiency</term> means the percentage obtained by dividing
(as measured under steady-state conditions, at full-rated useful thermal
output, with 140°F supply from, and 120°F return water temperature to, the
boiler)—</text>
<subitem id="id62E0C27D950D45D08730A43DE51F2A3E"><enum>(AA)</enum><text>the useful
energy output of a boiler, expressed in Btus; by</text>
</subitem><subitem id="id54DA39878AD84E97AC5CBEF99DA74423"><enum>(BB)</enum><text>the energy input
of the boiler, expressed in Btus.</text>
</subitem></item></subclause><subclause id="ID82dba7e1cc804359ab24f9d6f0bde3b4"><enum>(III)</enum><header>Residential
combustion equipment</header>
<item id="idECD14A62EA7945A582917B3E9E6BC419"><enum>(aa)</enum><header>In
general</header><text>Residential combustion equipment, including furnaces,
boilers, and water heaters, shall meet or exceed the energy efficiency criteria
specified in the following table:</text>
<table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="3-Generic:-1-text,-1-num,-1-text">
<ttitle>Minimum Residential Combustion Equipment Energy
Efficiency</ttitle>
<tgroup cols="3" grid-typeface="1.1" thead-tbody-ldg-size="10.10.10" ttitle-size="10"><colspec align="left" coldef="txt" colname="col1" colsep="1" colwidth="85" min-data-value="55" rowsep="0"></colspec><colspec align="left" coldef="fig" colname="col2" colsep="1" colwidth="140" min-data-value="15"></colspec><colspec align="right" coldef="txt-no-ldr" colname="col3" colsep="1" colwidth="62" min-data-value="40" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="col1" rowsep="1">Technology</entry><entry align="center" colname="col2" rowsep="1">Rating method</entry><entry align="center" colname="col3" rowsep="1">Minimum efficiency</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Gas-fired
furnace</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">AFUE</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">94%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Oil-fired
furnace</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">AFUE</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">92%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Gas- or oil-fired
boiler</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">AFUE</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">90%</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Gas- or oil-fired water
heater</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">Energy factor</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">0.62</entry>
</row>
</tbody>
</tgroup>
</table>
</item><item id="idEB72BFC67D4B4A3DACAF80BF0584E7E1"><enum>(bb)</enum><header>Definitions</header><text>In
the table contained in item (aa):</text>
<subitem id="id5F1A306BF94B46C9A52A3D45180BC0F4"><enum>(AA)</enum><header>Boiler</header><text>The
term <term>boiler</term> means any equipment with a heat input rate of less
than 300,000 Btu per hour.</text>
</subitem><subitem id="id8DEAEBB3443D4D62AD2E5BD62A8E9D96"><enum>(BB)</enum><header>Furnace</header><text>The
term <term>furnace</term> means any equipment with a heat input rate of less
than 225,000 Btu per hour.</text>
</subitem><subitem id="idB249063570E54E61AD4BD3516C5E35ED"><enum>(CC)</enum><header>Water
heater</header><text>The term <term>water heater</term> has the meaning given
the term in section 430.2 of title 10, Code of Federal Regulations (or a
successor regulation).</text>
</subitem></item></subclause></clause><clause id="IDd8d40856a86e4df7abbd26f7dbe715ca"><enum>(ii)</enum><header>Other energy
conservation measures</header><text>Each other energy conservation measure
carried out as part of the offset project shall meet—</text>
<subclause id="idEFF0403B2BD04A66BB554BAF94BA0044"><enum>(I)</enum><text>subject to
subclause (II), the more stringent energy performance requirements of, as
applicable—</text>
<item id="idC228C7B4EC2E4B79AD0DA58B6694D0FC"><enum>(aa)</enum><text>the requirements
of the document entitled <quote>Energy Benchmark for High Performance
Buildings, Version 1.1, New Buildings Institute</quote> and dated 2005 (or a
successor document); or</text>
</item><item id="id969F57DA9317452EB7EB5CB16B1A42BF"><enum>(bb)</enum><text>the requirements
of State building energy codes; and</text>
</item></subclause><subclause id="idA85A3143C1D844A99903953F448696BE"><enum>(II)</enum><text>for energy
conservation measures not subject to the requirements of the document described
in subclause (I)(aa), the more stringent energy performance requirements of, as
applicable—</text>
<item id="id1446B3BABBD44B909E34D470ADA1F1F6"><enum>(aa)</enum><text>the requirements
of the document entitled <quote>Federal Energy Management Program Product
Energy Efficiency Recommendations</quote>, issued pursuant to Executive orders
13123 and 13221 (64 Fed. Reg. 30851 (June 8, 1999); 66 Fed. Reg. 40571 (August
2, 2001)) (or a successor document); or</text>
</item><item id="idCDE9695852C242BBB3C133454597BA2C"><enum>(bb)</enum><text>the Energy Star
criteria issued jointly by the Administrator and the Secretary of
Energy.</text>
</item></subclause></clause></subparagraph><subparagraph id="ID0058a152233248fabc98fe19f50ed625"><enum>(E)</enum><header>Maximum market
penetration rate for offset projects commenced on or after January 1,
2009</header><text>To be eligible to receive allowances under this subsection
for an offset project initiated on or after January 1, 2009, the sponsor of the
offset project shall demonstrate to the satisfaction of the Administrator that
the energy conservation measures implemented as part of the offset project have
a market penetration rate of less than 5 percent.</text>
</subparagraph></paragraph><paragraph id="ID805d28e7c8a649aa82a979dcacc41538"><enum>(4)</enum><header>Emissions
baseline determination</header>
<subparagraph id="idAB24272690D247C19511369979AADA9E"><enum>(A)</enum><header>Energy usage,
emissions factors, and oxidation factors</header>
<clause id="id32E9A01140554DC5B1B9AA30C9A897C5"><enum>(i)</enum><header>In
general</header><text>The emissions baseline of an offset project that receives
allowances under this subsection shall be determined by multiplying—</text>
<subclause id="id53EEF2567D474EEC916FCA8BFD3CA3F8"><enum>(I)</enum><text>the energy usage
(measured in MMBtus), by fuel type, for each energy conservation measure
carried out under the offset project, as determined using historic fuel use
data from the most recent calendar year for which data is available; and</text>
</subclause><subclause id="id2A663B7B741341BE821F280311817C70"><enum>(II)</enum><text>the applicable
emissions factor (measured in pounds of carbon dioxide per MMBtu) and oxidation
factor for each fuel type, in accordance with the following table:</text>
<table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="3-Generic:-1-text,-1-num,-1-text">
<ttitle>Emissions and Oxidation Factors</ttitle>
<tgroup cols="3" grid-typeface="1.1" thead-tbody-ldg-size="10.10.10" ttitle-size="10"><colspec align="left" coldef="txt" colname="col1" colsep="1" colwidth="194" min-data-value="125" rowsep="0"></colspec><colspec align="right" coldef="fig" colname="col2" colsep="1" colwidth="93" min-data-value="10"></colspec><colspec align="right" coldef="txt" colname="col3" colsep="0" colwidth="194" min-data-value="125" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="col1" rowsep="1">Fuel
type</entry><entry align="center" colname="col2" rowsep="1">Emissions
factor</entry><entry align="center" colname="col3" rowsep="1">Oxidation
factor</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Natural
gas</entry><entry align="right" colname="col2" leader-modify="force-ldr" rowsep="0">116.98</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">0.995</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Propane</entry><entry align="right" colname="col2" leader-modify="force-ldr" rowsep="0">139.04</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">0.995</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Distillate fuel
oil</entry><entry align="right" colname="col2" leader-modify="force-ldr" rowsep="0">161.27</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">0.99</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Kerosene</entry><entry align="right" colname="col2" leader-modify="force-ldr" rowsep="0">159.41</entry><entry align="right" colname="col3" leader-modify="clr-ldr" rowsep="0">0.99</entry>
</row>
</tbody>
</tgroup>
</table>
</subclause></clause><clause id="IDffd319b4889647c9a2a2af51ba4b81fb"><enum>(ii)</enum><header>Energy usage
determination</header>
<subclause id="id48D88FDC24864AE3BDE81C7DB0BF847E"><enum>(I)</enum><header>In
general</header><text>For purposes of the calculation under clause (i), the
energy usage for each energy conservation measure carried out under the offset
project shall be determined in accordance with the following formula: Energy
usage (MMBtu) = BEU<subscript>AECM</subscript> × A.</text>
</subclause><subclause id="id4A625384EFF84D5984545214562B53E0"><enum>(II)</enum><header>Description</header><text>In
the formula contained in subclause (I)—</text>
<item id="id6A19F9BA85104FF980BD469C8F445A4F"><enum>(aa)</enum><text><quote>BEU<subscript>AECM</subscript></quote>
represents the annual pre-installation baseline energy use (measured in
MMBtus), by fuel type, attributable to each application to be targeted by the
energy conservation measure, as determined in accordance with paragraph (6);
and</text>
</item><item id="id6DDB1762FDB94ED882A0783477153B6A"><enum>(bb)</enum><text><quote>A</quote>
represents adjustments required to account for differing conditions during the
pre-installation and post-installation periods, such as weather, building
occupancy, and changes in building use or function, as adjusted in accordance
with paragraph (6).</text>
</item></subclause><subclause id="idB9689B862F8F42E7A826754B33287608"><enum>(III)</enum><header>Additional
requirements</header>
<item id="idC6EE783DC35A4989A63D1AFC9E5C1EBF"><enum>(aa)</enum><header>In
general</header><text>Subject to item (bb), for purposes of determining the
variable under subclause (II)(aa), if a building code or equipment standard
requires that equipment or materials installed as part of the offset project
meet certain minimum energy performance requirements, the annual
pre-installation baseline energy usage for the applicable application shall be
determined based on the assumption that the equipment or materials are
installed in accordance with those requirements.</text>
</item><item id="idDEE9AF0AD01543BD93B57E6C35E9ED39"><enum>(bb)</enum><header>Replacement of
combustion equipment</header><text>For an offset project under which existing
combustion equipment is replaced, the minimum energy performance required by a
building code or equipment standard shall be considered to be the minimum
energy performance standard that applies to new equipment that uses the same
fuel type as the equipment being replaced.</text>
</item></subclause></clause></subparagraph><subparagraph id="id623297F2E56741FFBD3A7FC4BE5FC103"><enum>(B)</enum><header>Annual baseline
emissions</header>
<clause id="id8DD3D63E65E24A798CE260EB4CCFD52C"><enum>(i)</enum><header>In
general</header><text>The annual baseline emissions of an offset project that
receives allowances under this subsection shall be calculated in accordance
with the following formula: Emissions (pounds of carbon dioxide) = ∑
BEU<subscript>i</subscript> × EF<subscript>i</subscript> ×
OF<subscript>i</subscript>.</text>
</clause><clause id="id344CDA316123449986B3AF4C754CF6A8"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="id3BF8151921CF42C0AFBBE277BC6ABAA4"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id51A67DD17727409293E3DAA006391242"><enum>(aa)</enum><text>the figure above the
sigma shall be <quote>n</quote>; and</text>
</item><item id="id26A286989B674CF3944A5A365CF26C78" indent="up1"><enum>(bb)</enum><text>the figure below the sigma shall be
<quote><added-phrase reported-display-style="italic">i</added-phrase> =
1</quote>;</text>
</item></subclause><subclause id="id1EB03F11A55E4D0AA740DBB6FA3207F4"><enum>(II)</enum><text><quote>BEU<subscript>i</subscript></quote>
represents the annual baseline energy usage for fuel type
<added-phrase reported-display-style="italic">i</added-phrase> (measured in
MMBtus), as determined in accordance with paragraph (6);</text>
</subclause><subclause id="id42883CD587A64B3CA8159D772222E3F2"><enum>(III)</enum><text><quote>EF<subscript>i</subscript></quote>
represents the emissions factor (measured in pounds of carbon dioxide per
MMBtu) for fuel type <added-phrase reported-display-style="italic">i</added-phrase>, as determined in accordance
with the table contained in subparagraph (A)(i)(II); and</text>
</subclause><subclause id="id1984DBA2BB1C4BB5B191C22FF42BD399"><enum>(IV)</enum><text><quote>OF<subscript>i</subscript></quote>
represents the oxidation factor for fuel type
<added-phrase reported-display-style="italic">i</added-phrase>, as determined
in accordance with the table contained in subparagraph (A)(i)(II).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID4ca42faab96341bebf3e846c9f531b96"><enum>(5)</enum><header>Calculating
emissions reductions</header>
<subparagraph id="id7C1E516B90A549748EF195ACAED3B816"><enum>(A)</enum><header>In
general</header><text>The emissions reductions of an offset project that
receives allowances under this subsection shall be determined, based on the
annual energy savings, by fuel type, for each energy conservation measure
carried out under the offset project, in accordance with this paragraph.</text>
</subparagraph><subparagraph id="ID71369b08ff7c497aaba36623d964a9ed"><enum>(B)</enum><header>Annual energy
savings</header>
<clause id="id9C388B706A01490891F814D9FB9407DE"><enum>(i)</enum><header>In
general</header><text>The annual energy savings of an offset project that
receives allowances under this subsection shall be determined in accordance
with the following formula: Energy savings (MMBtu) =
(BEU<subscript>AECM</subscript> × A) – (PIEU<subscript>ECM</subscript> ×
A).</text>
</clause><clause id="id6EDDB58527AC47B997FCBDF2E96F5614"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="id6CFEDA4F37D84E19B9CE7E48FB571CF2"><enum>(I)</enum><text><quote>BEU<subscript>AECM</subscript></quote>
represents the annual pre-installation baseline energy use (measured in
MMBtus), by fuel type, of an application subject to an energy conservation
measure under the offset project, as determined subject to clause (iii);</text>
</subclause><subclause id="idD3C87AF203084E54BFA400B7ACF6A909"><enum>(II)</enum><text><quote>PIEU<subscript>ECM</subscript></quote>
represents the annual post-installation energy use (measured in MMBtus), by
fuel type, attributable to the energy conservation measure, as verified in
accordance with ASHRAE Guideline 14–2002, entitled <quote>Measurement of Energy
and Demand Savings</quote> (or a successor guideline); and</text>
</subclause><subclause id="id4801C6878E764C7EA977F402D9981DA6"><enum>(III)</enum><text><quote>A</quote>
represents adjustments required to account for differing conditions during the
pre-installation and post-installation periods, such as weather, building
occupancy, and changes in building use or function, as adjusted in accordance
with—</text>
<item id="id2B1C16B8BA3D4C56BEF1E09BC7F055F1"><enum>(aa)</enum><text>for commercial
buildings, ASHRAE Guideline 14–2002, entitled <quote>Measurement of Energy and
Demand Savings</quote>, and section 11 and appendix G of ANSI/ASHRAE/IESNA
Standard 90.1–2004 (or successor specifications); and</text>
</item><item id="id75C66D0E161B4BE4ACC61489ACA96608"><enum>(bb)</enum><text>for residential
buildings, RESNET National Home Energy Rating Technical Guidelines, 2006
(Chapter 3 and Appendix A of 2006 Mortgage Industry National Home Energy Rating
System Standards) (or successor guidelines).</text>
</item></subclause></clause><clause id="id3B5D7CE4D7D2420B8CB91E8B5B72AEE1"><enum>(iii)</enum><header>Pre-installation
baseline energy use determinations for new buildings</header><text>The
pre-installation baseline energy use of any new building in which an energy
conservation measure will be carried out under an offset project shall be
determined based on a reference building that is equivalent in basic
configuration, orientation, and location to the new building, in accordance
with ASHRAE Guideline 14–2002, entitled <quote>Measurement of Energy and Demand
Savings</quote> and section 11 and appendix G of ANSI/ASHRAE/IESNA Standard
90.1–2004 (or successor specifications).</text>
</clause></subparagraph><subparagraph id="idE3592A4C976145E08959901F89CF6FD1"><enum>(C)</enum><header>Annual
emissions reductions</header>
<clause id="idB3381DAC297546DC99F085830238C6CA"><enum>(i)</enum><header>In
general</header><text>The annual emissions reductions of an offset project that
receives allowances under this subsection shall be determined in accordance
with the following formula: Emissions reduction (pounds of carbon dioxide) = ∑
ES<subscript>i</subscript> × EF<subscript>i</subscript> ×
OF<subscript>i</subscript>.</text>
</clause><clause id="idAF61EDD980A24E4E96AF5840BCD6D1CD"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="id368755A1D3584DBD8A1E1E0467545CD7"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id186F2CF0CBBA46C0A6240AAB64CF2792"><enum>(aa)</enum><text>the figure above the
sigma shall be <quote>n</quote>; and</text>
</item><item id="id9D42DFD64AF44E0F92D6C658321C7AB7" indent="up1"><enum>(bb)</enum><text>the figure below the sigma shall be
<quote><added-phrase reported-display-style="italic">i</added-phrase> =
1</quote>;</text>
</item></subclause><subclause id="id2EE3914A1E2E4EBD8AEC2675CAEAE0E0"><enum>(II)</enum><text><quote>ES<subscript>i</subscript></quote>
represents the energy savings for fuel type
<added-phrase reported-display-style="italic">i</added-phrase> (measured in
MMBtus), as determined in accordance with paragraph (6);</text>
</subclause><subclause id="id104A02858052497F9935A9B40CA98092"><enum>(III)</enum><text><quote>EF<subscript>i</subscript></quote>
represents the emissions factor (measured in pounds of carbon dioxide per
MMBtu) for fuel type <added-phrase reported-display-style="italic">i</added-phrase>, as determined in accordance
with the table contained in subparagraph (A)(i)(II); and</text>
</subclause><subclause id="idF190323E6BB543D185F2445AA0410C13"><enum>(IV)</enum><text><quote>OF<subscript>i</subscript></quote>
represents the oxidation factor for fuel type
<added-phrase reported-display-style="italic">i</added-phrase>, as determined
in accordance with the table contained in subparagraph (A)(i)(II).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID417bf5a1cf75432da0af671c166394a4"><enum>(6)</enum><header>Monitoring and
verification</header>
<subparagraph id="idA0913D7E29E84B0B835D9160954E149F"><enum>(A)</enum><header>In
general</header><text>Not less frequently than once each year, the sponsor of
each offset project that receives an allowance under this subsection shall
submit to the Administrator a monitoring and verification report.</text>
</subparagraph><subparagraph id="idCBE06B9DC5424E518B163E65CBC4C389"><enum>(B)</enum><header>Certification</header><text>Each
report under subparagraph (A) shall be certified.</text>
</subparagraph><subparagraph id="ID283e0a5ff8a8433eace8be9ac6bb7ced"><enum>(C)</enum><header>General energy
requirements</header><text>Monitoring and verification of energy usage under
this paragraph shall be conducted in accordance with the following protocols
and procedures, as applicable:</text>
<clause id="IDc6dcdedf09cc44eb8bb505a67469604c"><enum>(i)</enum><header>Commercial
buildings</header>
<subclause id="idE19F94C1F3D4489EB34210328A4E6530"><enum>(I)</enum><header>Existing
buildings</header><text>For commercial buildings in existence on the date on
which the applicable offset project enters operation, baseline energy usage
shall be determined in accordance with—</text>
<item id="id61CCDA5B9DC744B49D29005E9AB69717"><enum>(aa)</enum><text>the detailed
specifications in ASHRAE Guideline 14–2002, entitled <quote>Measurement of
Energy and Demand Savings</quote>, as applicable (or successor specifications);
and</text>
</item><item id="idDBBDC43ED3C44B619FA8446AABF09A71"><enum>(bb)</enum><subitem commented="no" display-inline="yes-display-inline" id="idCCB483D42B1C4F048AC4F1F92A08CDFD"><enum>(AA)</enum><text>volume I of the
International Performance Measurement and Verification Protocol, entitled
<quote>Concepts and Options for Determining Energy and Water Savings</quote>,
specifically the documents entitled <quote>Option B. Retrofit Isolation</quote>
and <quote>Option D. Calibrated Simulation</quote> (or successor
specifications); or</text>
</subitem><subitem id="id3E8C5090C0D041F388DA913D9D0AEB4B" indent="up1"><enum>(BB)</enum><text>if a building project carried out under
the offset project involves only energy conservation measures implemented as
part of a carbon dioxide emissions offset project, the document of the volume
referred to in subitem (AA) entitled <quote>Option C. Whole Facility</quote>
(or successor specifications).</text>
</subitem></item></subclause><subclause id="IDb6ae3c9be3fa40d5baf08f6e56d47b9a"><enum>(II)</enum><header>New
buildings</header><text>For new commercial buildings constructed under the
applicable offset project, baseline energy usage shall be determined in
accordance with—</text>
<item id="id1070815BEFD1479DAEE8B48CD39E4B70"><enum>(aa)</enum><text>the detailed
specifications in ASHRAE Guideline 14–2002, entitled <quote>Measurement of
Energy and Demand Savings</quote>, as applicable (or successor specifications);
and</text>
</item><item id="id1785864897A647A6BC77084D7959E2A4"><enum>(bb)</enum><text>volume III of
the International Performance Measurement and Verification Protocol, entitled
<quote>Concepts and Options for Determining Energy Savings in New
Construction</quote>, specifically the document entitled <quote>Option D.
Calibrated Simulation</quote> (or successor specifications).</text>
</item></subclause></clause><clause id="IDd19bfacdf5ac4049bf4e7fc60edda067"><enum>(ii)</enum><header>Residential
buildings</header><text>For any residential building relating to the applicable
offset project, baseline energy usage shall be determined in accordance with
the RESNET National Home Energy Rating Technical Guidelines, 2006 (Chapter 3
and Appendix A of 2006 Mortgage Industry National Home Energy Rating System
Standards) (or successor guidelines).</text>
</clause></subparagraph><subparagraph id="IDa004bf461abe41c3aca90df8be15ba67"><enum>(D)</enum><header>Isolation of
energy conservation measures</header>
<clause id="idAC0F5D5451AD4F5BB63C529DDE052CC2"><enum>(i)</enum><header>In
general</header><text>For purposes of calculating baseline energy usage and
energy savings under this subsection, the sponsor of the offset project shall
isolate the impact of each eligible energy conservation measure, to the maximum
extent practicable, through direct metering or, subject to subparagraph (E),
energy simulation modeling.</text>
</clause><clause id="idB43B13C5AB9042A09DFF7D8B50C0FB27"><enum>(ii)</enum><header>Projects with
multiple measures</header>
<subclause id="id9F91179C45C34622A552A6E392B111F2"><enum>(I)</enum><header>In
general</header><text>For offset projects under which multiple energy
conservation measures are carried out, and for which individual energy
conservation measures could affect the performance of other energy conservation
measures, the total energy savings due to individual energy conservation
measures shall be adjusted to account for the interaction of the energy
conservation measures in accordance with this clause.</text>
</subclause><subclause id="idC21A2ABBD8F44BC1AF460AEFD06DB816"><enum>(II)</enum><header>Commercial
buildings</header><text>For commercial buildings, the adjustment under
subclause (I) shall be in accordance with ASHRAE Guideline 14–2002, entitled
<quote>Measurement of Energy and Demand Savings</quote>, and ANSI/ASHRAE/IESNA
Standard 90.1–2004, entitled <quote>Energy Standard for Buildings Except
Low-Rise Residential Buildings</quote> (or successor specifications).</text>
</subclause><subclause id="id027C96750F9C45FFB9F1F2A4DE109D6E"><enum>(III)</enum><header>Residential
buildings</header><text>For residential buildings, the adjustment under
subclause (I) shall be in accordance with RESNET National Home Energy Rating
Technical Guidelines, 2006 (Chapter 3 and Appendix A of 2006 Mortgage Industry
National Home Energy Rating System Standards) (or successor guidelines).</text>
</subclause></clause></subparagraph><subparagraph id="ID7cced17a6ec04dd398ddc47641e7d2b1"><enum>(E)</enum><header>Simulation
modeling</header>
<clause id="idCB001309474E46BB812ECB58C9356B02"><enum>(i)</enum><header>In
general</header><text>Any reduction in energy usage due to an energy
conservation measure under an offset project shall be calculated based only on
actual energy usage data.</text>
</clause><clause id="id51BDD6503A2B4B41B160E118E3C82565"><enum>(ii)</enum><header>Limitation</header><text>Energy
simulation modeling—</text>
<subclause id="idB356EB07C245445F9773BE559DB47E54"><enum>(I)</enum><text>shall only be
used to determine the relative percentage contribution to total fuel usage, for
each fuel type, of an application targeted by an energy conservation measure
under an offset project; and</text>
</subclause><subclause id="idFAEC47FA872A40A08FC8EA05E572C2AA"><enum>(II)</enum><text>shall be carried
out under subclause (I) in accordance with—</text>
<item id="id1F4705F4BB9D4CCBB5B1CD202ECD9130"><enum>(aa)</enum><text>for commercial
buildings in existence on the date on which the applicable offset project is
commenced, ASHRAE Guideline 14–2002, entitled <quote>Measurement of Energy and
Demand Savings</quote> and section 11 and appendix G of ANSI/ASHRAE/IESNA
Standard 90.1–2004 (or successor specifications); and</text>
</item><item id="id6CB93602ABF0460D987DAD410E897E37"><enum>(bb)</enum><text>for residential
buildings, RESNET National Home Energy Rating Technical Guidelines, 2006
(Chapter 3 and Appendix A of 2006 Mortgage Industry National Home Energy Rating
System Standards) (or successor guidelines).</text>
</item></subclause></clause></subparagraph><subparagraph id="ID05d8ba336a91401995fbaa4e0244bfcc"><enum>(F)</enum><header>Sampling for
residential buildings</header>
<clause id="id74B13459C78A4D339762BB4CD298C586"><enum>(i)</enum><header>In
general</header><text>The sponsor of any offset project that carries out
similar energy conservation measures in multiple residential buildings may use
representative sampling of the residential buildings to determine the aggregate
baseline energy usage and energy savings of the offset projects.</text>
</clause><clause id="idC0832C67D63B4530ACA1784D7EA4E817"><enum>(ii)</enum><header>Requirements</header><text>Representative
sampling carried out under clause (i) shall be in accordance with sound
statistical methods, such that there is 95 percent confidence that the reported
value is within 10 percent of the true mean.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDebe6d49b7bf24199b45283617664b861"><enum>(e)</enum><header>Avoided methane
emissions from agricultural manure management operations</header>
<paragraph id="id82F5C5C362414035A7C03DE0BC61CC85"><enum>(1)</enum><header>In
general</header><text>An offset project that captures and destroys methane from
animal manure and organic food waste using an anaerobic digester in accordance
with this subsection shall be eligible to receive allowances under this
title.</text>
</paragraph><paragraph id="idDF36DECE629443D09E3E286ED36DA7C3"><enum>(2)</enum><header>Requirements</header>
<subparagraph id="id7FCCFBE5D3FD48379EA7005F3E49257B"><enum>(A)</enum><header>In
general</header><text>To be eligible to receive allowances under this
subsection, an offset project described in paragraph (1) shall—</text>
<clause id="id45FFA043A5394F4DACDDF070F29ABC4A"><enum>(i)</enum><text>involve the
destruction of the portion of methane generated by an anaerobic digester that
would have been generated in the absence of the offset project through the
uncontrolled anaerobic storage of manure or organic food waste;</text>
</clause><clause id="id4571C61658E54E7D9F7A99978BDE9D75"><enum>(ii)</enum><text>use only
manure-based anaerobic digester systems, using livestock manure to provide
greater than 50 percent of annual digester feedstock; and</text>
</clause><clause id="id29B7BA2A9D3649EBAF6BDD5C49BA4FBC"><enum>(iii)</enum><text>use organic
food waste for anaerobic digesters only in a quantity that would have been
stored in anaerobic conditions in the absence of the offset project.</text>
</clause></subparagraph><subparagraph id="idA2381932CE2647C08306C5D1D32A6457"><enum>(B)</enum><header>Determination
of market penetration rate</header>
<clause id="idEFD1EC8C009F4B8AB0883012F8B74319"><enum>(i)</enum><header>In
general</header><text>The market penetration rate of a State shall be
determined using the most recent market data available on the date of
submission of an application, in accordance with the following formula: MP (%)
= MG<subscript>AD</subscript> / MG<subscript>STATE</subscript>.</text>
</clause><clause id="idE1B4279C51384AFFA84FFC5F5A786438"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="idD14F7918A9CA4AF4A7C361EE44B4EBCB"><enum>(I)</enum><text><quote>MG<subscript>AD</subscript></quote>
represents the average annual manure production for the number of dairy cows
and swine serving all anaerobic digester projects in the applicable State on
the date of submission of an application; and</text>
</subclause><subclause id="id2F3504CE77784BC78C396B137644D208"><enum>(II)</enum><text><quote>MG<subscript>STATE</subscript></quote>
represents the average annual manure production of all dairy cows and swine in
the State on the date of submission of the application).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID12756150d95d4538a4e16950223d736b"><enum>(3)</enum><header>Emissions
baseline</header>
<subparagraph id="id94DA289934C74D4EA1004C53CAE8FD1F"><enum>(A)</enum><header>In
general</header><text>The emissions baseline of an offset project that receives
allowances under this subsection shall represent the potential emissions of the
methane that, in the absence of the offset project, would have been—</text>
<clause id="idED2A2E3F2E214E4F914562E7722D18C1"><enum>(i)</enum><text>produced in a
baseline scenario under uncontrolled anaerobic storage conditions; and</text>
</clause><clause id="id056F614458DC473A818DE9051D03CF44"><enum>(ii)</enum><text>released
directly into the atmosphere.</text>
</clause></subparagraph><subparagraph id="idECEA76EFCABD479FAB1D3BE1F907B537"><enum>(B)</enum><header>Calculation</header>
<clause id="id139B366374D8400BA215B8E61B8F5BBC"><enum>(i)</enum><header>In
general</header><text>The baseline methane emissions of an offset project under
this subsection shall be calculated in accordance with the following formula:
CO<subscript>2</subscript>e (tons) = (V<subscript>m</subscript> × M)/2000 ×
GWP.</text>
</clause><clause id="id31A10A5A81C7404E80CAF04988D8E93F"><enum>(ii)</enum><header>Description</header><text>In
the formula contained in clause (i)—</text>
<subclause id="idA6568453FFAC4F31AC961DB6D501F1FC"><enum>(I)</enum><text><quote>CO<subscript>2</subscript>e</quote>
represents the potential carbon dioxide-equivalent emissions due to calculated
methane production under site-specific anaerobic storage and weather
conditions;</text>
</subclause><subclause id="idF3AAF914E69A451BABD840BA7C7ED8C7"><enum>(II)</enum><text><quote>V<subscript>m</subscript></quote>
(expressed in cubic feet) represents the volume of methane produced each month
from degradation of volatile solids in a baseline uncontrolled anaerobic
storage scenario (as calculated under clauses (iii) and (iv)) under
site-specific storage and weather conditions for the facility at which the
manure or organic food waste is generated;</text>
</subclause><subclause id="id25BBCEFEAB1641FFAE543561BA9016F5"><enum>(III)</enum><text><quote>M</quote>
represents the mass of methane per cubic foot (with a default value of 0.04246
pounds per cubic foot at 1 atmosphere and 20 °C); and</text>
</subclause><subclause id="idF2F953FEA8374A6B8B26289C46E75CBA"><enum>(IV)</enum><text><quote>GWP</quote>
represents the global warming potential of methane (with a default value of
23).</text>
</subclause></clause><clause id="id92E3767AE1A44E3DBD78915E9218E9CE"><enum>(iii)</enum><header>Volatile
solids</header>
<subclause id="id47BE8A83CE1E4E9882F5F2922544A02A"><enum>(I)</enum><header>In
general</header><text>For purposes of clause (ii)(II), the estimated quantity
of volatile solids degraded each month under the baseline uncontrolled
anaerobic storage scenario (measured in kilograms) shall be calculated in
accordance with the following formula: VS<subscript>deg</subscript> =
VS<subscript>avail</subscript> × f.</text>
</subclause><subclause id="id6F36B3396B9740209180F688C774CA8F"><enum>(II)</enum><header>Volatile
solids available for degradation</header>
<item id="id761CF21F437F44D7A01FA24694A95010"><enum>(aa)</enum><header>In
general</header><text>In the formula contained in subclause (I),
<quote>VS<subscript>avail</subscript></quote> represents the quantity of
volatile solids available for degradation in manure or organic food waste
storage each month, determined in accordance with the following formula:
VS<subscript>avail</subscript> = VS<subscript>p</subscript> + ½
VS<subscript>in</subscript> – VS<subscript>out</subscript>.</text>
</item><item id="id12E58342D74F4B0EA72B6976C6564DE3"><enum>(bb)</enum><header>Description</header><text>In
the formula contained in item (aa)—</text>
<subitem id="idDC7EA98FEB6346FBBF5A1B3206CC40AA"><enum>(AA)</enum><text><quote>VS<subscript>p</subscript></quote>
represents the quantity of volatile solids (expressed in kilograms) present in
manure or organic food waste storage at the beginning of the applicable month
(including any manure or waste remaining from a preceding month);</text>
</subitem><subitem id="id0A44DAA79FE1447EA3404CC8E36A8F33"><enum>(BB)</enum><text><quote>VS<subscript>in</subscript></quote>
represents the quantity of volatile solids (expressed in kilograms) added to
manure or organic food waste storage during the course of the applicable month,
which is halved to represent the average mass of volatile solids available for
degradation for the month; and</text>
</subitem><subitem id="id142F1E56EB56435D95701B979D2ABC32"><enum>(CC)</enum><text><quote>VS<subscript>out</subscript></quote>
represents the quantity (expressed in kilograms) of volatile solids removed
from the manure or organic food waste storage for land application or export,
which may be assumed based on standard farm practice.</text>
</subitem></item></subclause><subclause id="id967086B796584D3E86E51AEABA953F14"><enum>(III)</enum><header>Van't
Hoff-Arrhenius factor</header>
<item id="id6CAB4A2C1D37444082FDDD382F34E58B"><enum>(aa)</enum><header>In
general</header><text>In the formula contained in subclause (I),
<quote>f</quote> represents the van't Hoff-Arrhenius factor, which measures the
conversion efficiency of volatile solids to methane, for a given month,
determined using a base temperature of 30 °C in accordance with the following
formula: f = exp[E(T<subscript>2</subscript> – T<subscript>1</subscript>)]/[(GC
× T<subscript>1</subscript> × T<subscript>2</subscript>)].</text>
</item><item id="id65FFABBB2ECF49BAA9A3B34971AD77C2"><enum>(bb)</enum><header>Description</header><text>In
the formula contained in item (aa)—</text>
<subitem id="id02A4DEDAD5CE49FEA4BC3BF790B2B244"><enum>(AA)</enum><text><quote>E</quote>
represents the activation energy constant (with a default value of 15,175
cal/mol);</text>
</subitem><subitem id="idCC9C9D4D33B8496FAC7ABE19927E01E8"><enum>(BB)</enum><text><quote>T<subscript>2</subscript></quote>
represents the average monthly ambient temperature for the facility at which
manure or organic food waste is generated (as converted from Celsius to
Kelvin), as determined by the nearest National Weather Service-certified
weather station (if reported temperature °C > 5 °C; if reported temperature
°C < 5 °C, then F = 0.104);</text>
</subitem><subitem id="id081BB82A3727458B9084853013BEA378"><enum>(CC)</enum><text><quote>T<subscript>1</subscript></quote>
equals 303.16; and</text>
</subitem><subitem id="id5424599C80A841BA8169C1A1DCCECAAD"><enum>(DD)</enum><text><quote>GC</quote>
represents the ideal gas constant (with a default value of 1.987 cal/K
mol).</text>
</subitem></item></subclause><subclause id="id7131E6BD2CA6441D9B0512ABC065776F"><enum>(IV)</enum><header>General
volatile solids calculations</header>
<item id="id8527B3FC1B0F4EE4B30B78EBA9E3D60B"><enum>(aa)</enum><header>In
general</header><text>For purposes of this clause, a quantity of volatile
solids may be determined in accordance with the following formula: VS =
M<subscript>m</subscript> × TS<subscript>%</subscript> ×
VS<subscript>%</subscript>.</text>
</item><item id="idEF3DEF1F987549BB8F3F6F4D5FDC9D25"><enum>(bb)</enum><header>Description</header><text>In
the formula contained in item (aa)—</text>
<subitem id="id434A48311AE44CD59FDA8B9B3B422D05"><enum>(AA)</enum><text><quote>M<subscript>m</subscript></quote>
represents the mass (expressed in kilograms) of manure or organic food waste
produced per month;</text>
</subitem><subitem id="id18E7F6CEEB5F4EEA8FC743CC587AD62C"><enum>(BB)</enum><text><quote>TS<subscript>%</subscript></quote>
represents the concentration (expressed as a percentage) of total solids in
manure or organic food waste, as determined in accordance with the testing
method of the Environmental Protection Agency numbered 160.3 (as contained in
the document of the Environmental Protection Agency entitled <quote>Methods for
the Chemical Analysis of Water and Wastes</quote> (EPA/600/4–79/020)) (or a
successor document); and</text>
</subitem><subitem id="id65D83AB719E848DA94F69932D038272E"><enum>(CC)</enum><text><quote>VS<subscript>%</subscript></quote>
represents the concentration (expressed as a percentage) of volatile solids in
total solids, as determined in accordance with the testing method of the
Environmental Protection Agency numbered 160.4 (as contained in the document of
the Environmental Protection Agency entitled <quote>Methods for the Chemical
Analysis of Water and Wastes</quote> (EPA/600/4–79/020)) (or a successor
document).</text>
</subitem></item></subclause></clause><clause id="id5FEEDBE6BF05411FB7E9F9EF7543A5BB"><enum>(iv)</enum><header>Volume of
methane produced</header>
<subclause id="idAE7780CF01CB4E2EB50ED535A0A8F2B4"><enum>(I)</enum><header>In
general</header><text>For purposes of clause (ii)(II), the volume of methane
produced each month from degradation of volatile solids in a baseline
uncontrolled anaerobic storage scenario (measured in cubic feet) shall be
calculated in accordance with the following formula: V<subscript>m</subscript>
= (VS<subscript>deg</subscript> × B<subscript>o</subscript>) × 35.3147.</text>
</subclause><subclause id="idE53325461E784D0D89C8EC6ADEC4C4F4"><enum>(II)</enum><header>Description</header><text>In
the formula contained in subclause (I)—</text>
<item id="id49945BC9A8F44E169E1A3DF0DF6DD012"><enum>(aa)</enum><text><quote>VS<subscript>deg</subscript></quote>
represents the quantity (measured in kilograms) of volatile solids degraded, as
determined in accordance with clause (iii); and</text>
</item><item id="id3638198FB8924CC1A6FB6DE36E749BC7"><enum>(bb)</enum><text><quote>B<subscript>o</subscript></quote>
represents the quantity of manure or organic food waste type-specific maximum
methane generation constant (expressed as cubic meters of methane per kilogram
of volatile solids degraded), as determined in accordance with subclause
(III).</text>
</item></subclause><subclause id="id2E7D6B7F7031450EAAC2AFF9FA64207F"><enum>(III)</enum><header>Methane
generation constant</header><text>For purposes of subclause (II)(bb), the
quantity of manure or organic food waste type-specific maximum methane
generation constant shall be—</text>
<item id="id111807A445F24E2B9096E334BEA0BC86"><enum>(aa)</enum><text>for dairy cow
manure, 0.24 cubic meters of methane per kilogram of volatile solids degraded;
and</text>
</item><item id="idA8322285A20D4A899BD9024CA5A68458"><enum>(bb)</enum><text>for any other
type of manure—</text>
<subitem id="idC41AC7CC868548E5894FDBB719F8FC75"><enum>(AA)</enum><text>the constant
specified in the document of the Environmental Protection Agency entitled
<quote>Inventory of United States Greenhouse Gas Emissions and Sinks:
1990–2004, Annex 3.10, Table 3–89</quote> and dated April 2006 (or a successor
document); or</text>
</subitem><subitem id="id89C37FB735CD41A7809128A634CD11C7"><enum>(BB)</enum><text>such other
methane generation constant as the sponsor of the applicable offset project may
specify, if the sponsor provides to the Administrator appropriate justification
and documentation for the constant.</text>
</subitem></item></subclause></clause></subparagraph></paragraph><paragraph id="ID10b64e0772cf43df9f2eb59280ccd503"><enum>(4)</enum><header>Emissions
reductions</header>
<subparagraph id="id1247933B6FDD488E8FD46F2B7E92AD60"><enum>(A)</enum><header>In
general</header><text>The emissions reductions of an offset project that
receives allowances under this subsection shall be determined based on the
potential emissions (measured in tons of carbon dioxide equivalent) of methane
that would have been produced, and released directly into the atmosphere, in
the absence of the offset project under a baseline scenario that represents
uncontrolled anaerobic storage conditions, as determined in accordance with
paragraph (3), taking into account fugitive methane emissions that may be
released into the atmosphere through leaks in the anaerobic digester
equipment.</text>
</subparagraph><subparagraph id="idC4FC236999C842C39E5CF4B13578CA6E"><enum>(B)</enum><header>Limitation</header><text>The
emissions reductions of an offset project shall not exceed the potential
emissions of the anaerobic digester of the offset project, as determined based
on the annual volume of methane produced by the anaerobic digester and
monitored in accordance with paragraph (5).</text>
</subparagraph><subparagraph id="id0C8358F3F6914FF09C60676475576234"><enum>(C)</enum><header>Regional-type
digester offset projects</header>
<clause id="id7C6DA2534D3F478DBAACFCB6E07F3239"><enum>(i)</enum><header>In
general</header><text>If an offset project is a regional-type digester offset
project, as determined by the Administrator, carbon dioxide emissions due to
transportation of manure and organic food waste from the site at which the
manure and organic food waste was generated to the anaerobic digester shall be
subtracted from the emissions reduction value determined under paragraph (3)
for the offset project.</text>
</clause><clause id="id167861373A164B318AD234B60F45CD92"><enum>(ii)</enum><header>Determination
of carbon dioxide emissions</header><text>For purposes of clause (i), carbon
dioxide emissions due to transportation of manure and organic food waste from
the site at which the manure and organic food waste was generated to the
anaerobic digester shall be determined in accordance with 1 of the following
methods:</text>
<subclause id="ID5b199c369a1f43f7978338d4741df155"><enum>(I)</enum><text>Documentation of
all quantities of fuel used to transport from off-site all shipments of manure
and organic food waste to the anaerobic digester of the offset project during
the applicable year (including a log of transport miles for each shipment),
from which carbon dioxide emissions shall be determined through the application
of the following emissions factors (based on the type of fuel used):</text>
<item id="ID75dbee5406b444cca93c3147e19cdc23"><enum>(aa)</enum><text>For diesel fuel,
22.912 pounds of carbon dioxide per gallon.</text>
</item><item id="IDdd36f9f47ab04de9bead65fea2c0d22f"><enum>(bb)</enum><text>For gasoline,
19.878 pounds of carbon dioxide per gallon.</text>
</item><item id="ID09e1a811a15948d29e91f8c2f2c0eb60"><enum>(cc)</enum><text>For any other
fuel, such emissions factor as the Administrator determines to be
appropriate.</text>
</item></subclause><subclause id="ID94bb2ccc3b4642b29631ef2ec3f86ff1"><enum>(II)</enum><text>Documentation of
the total quantity (expressed in tons) of manure and organic food waste
transported from off-site for input into the anaerobic digester of the offset
project during the applicable year (including a log of transport miles for each
shipment), as monitored under paragraph (5), from which carbon dioxide
emissions shall be determined through the application of the following ton-mile
transport emission factors (based on the type of fuel used):</text>
<item id="IDa53bab55d4374f06b81429d33baabec0"><enum>(aa)</enum><text>For diesel fuel,
0.131 pounds of carbon dioxide per ton-mile.</text>
</item><item id="ID23d7c71b24814564a3399040bca2698d"><enum>(bb)</enum><text>For gasoline,
0.133 pounds of carbon dioxide per ton-mile.</text>
</item><item id="id2D78A9ADB53F40CB8860518363134D65"><enum>(cc)</enum><text>For any other
fuel, such emissions factor as the Administrator determines to be
appropriate.</text>
</item></subclause></clause></subparagraph></paragraph><paragraph id="ID8b487a5f30234aa9839dd246d321bf3e"><enum>(5)</enum><header>Monitoring and
verification</header>
<subparagraph id="id3867F1BDDD1E431FBB492DFDD536A596"><enum>(A)</enum><header>In
general</header><text>The sponsor of each offset project that receives
allowances under this subsection shall—</text>
<clause id="idA84F53F7E0C142FFA9334ADC1D4B3315"><enum>(i)</enum><text>ensure that the
offset project uses a system that provides metering of biogas volumetric flow
rate and determination of methane concentration; and</text>
</clause><clause id="idD78C0405E17F482A831EEFA6529F6355"><enum>(ii)</enum><text>submit to the
Administrator an annual report, including a description of the monthly biogas
volumetric flow rate and methane concentration determinations for the offset
project.</text>
</clause></subparagraph><subparagraph id="id5B614894A9B04912AE79CB2222E45C80"><enum>(B)</enum><header>Regional-type
digester offset projects</header>
<clause id="id535FFBC653AE4558ADBDCBCDA3A47B5F"><enum>(i)</enum><header>In
general</header><text>The sponsor of an offset project that is a regional-type
digester offset project, as determined by the Administrator, shall ensure
monthly sampling of the manure and organic food waste from each distinct source
supplying the anaerobic digester to determine the quantity of volatile solids
present in the manure and waste.</text>
</clause><clause id="id86EC57126BC14A7CB88FC663350F61ED"><enum>(ii)</enum><header>Supporting
material</header><text>In the annual report relating to the offset project
submitted under subparagraph (A)(ii), the sponsor shall provide supporting
material and receipts tracking the monthly receipt from each supplier to the
offset project of quantities of manure and organic food waste (measured in
kilograms) for the anaerobic digester.</text>
</clause><clause id="ID9593beefd5bc4e51bc79908a1297445c"><enum>(iii)</enum><header>Emissions
reduction calculation requirement</header><text>The emissions reduction of an
offset project described in clause (i) shall be calculated according to, and
apportioned among sources based on, as determined in accordance with paragraphs
(3) and (4)—</text>
<subclause id="id5F7E536CADAA428494B504F2509C6C32"><enum>(I)</enum><text>the mass
(measured in kilograms) of manure and organic food waste digested as a result
of the offset project; and</text>
</subclause><subclause id="id8DFC4B141C774DE0A59E0E94BC5B66C3"><enum>(II)</enum><text>the percentage
of volatile solids present before digestion.</text>
</subclause></clause></subparagraph><subparagraph id="id1342E091C41343648CEE23729312310D"><enum>(C)</enum><header>Additional
monthly samples</header><text>The sponsor of an offset project that includes
the digestion of organic food waste shall ensure monthly sampling of the
organic food waste to determine in accordance with paragraphs (3) and (4), and
apportion accordingly, the quantity of volatile solids present in the waste
before digestion.</text>
</subparagraph><subparagraph id="idD1DEC5E6BA434C58A10BE82DB66A9881"><enum>(D)</enum><header>Other
monitoring requirements</header><text>In addition to the requirements of
subparagraphs (A) through (C), an offset project shall meet the applicable
requirements contained in the following table:</text>
<table align-to-level="section" blank-lines-before="1" frame="topbot" line-rules="hor-ver" rule-weights="4.4.4.4.0.0" subformat="S6211" table-type="4-Generic:-1-text,-3-num">
<ttitle>Input Monitoring Requirements</ttitle>
<tgroup cols="4" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="left" coldef="txt" colname="col1" colsep="1" colwidth="101.25pt" min-data-value="30" rowsep="0"></colspec><colspec align="left" coldef="txt" colname="col2" colsep="1" colwidth="77.63pt" min-data-value="30"></colspec><colspec align="left" coldef="txt" colname="col3" colsep="1" colwidth="72.31pt" min-data-value="30"></colspec><colspec align="left" coldef="txt" colname="col4" colsep="1" colwidth="138.25pt" min-data-value="30"></colspec>
<thead>
<row><entry align="center" colname="col1" rowsep="1">Input
parameter</entry><entry align="center" colname="col2" rowsep="1">Measurement
unit</entry><entry align="center" colname="col3" rowsep="1">Frequency of
sampling</entry><entry align="center" colname="col4" rowsep="1">Sampling
method</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Influent flow into
digester</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">Kilograms per month (wet weight)</entry><entry align="left" colname="col3" leader-modify="clr-ldr" rowsep="0">Monthly total into
digester</entry><entry align="left" colname="col4" leader-modify="force-ldr" rowsep="0">Recorded weight; digester influent pump flow; livestock population
and application of standard</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Influent total solids
concentration</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">Percent of sample</entry><entry align="left" colname="col3" leader-modify="clr-ldr" rowsep="0">Monthly,
depending on recorded variations</entry><entry align="left" colname="col4" leader-modify="force-ldr" rowsep="0">EPA Method Number 160.3, Methods for the
Chemical Analysis of Water and Wastes (EPA/600/4–79/020)</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Influent volatile
solids concentration</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">Percent of total solids</entry><entry align="left" colname="col3" leader-modify="clr-ldr" rowsep="0">Monthly,
depending on recorded variations</entry><entry align="left" colname="col4" leader-modify="force-ldr" rowsep="0">EPA Method Number 160.4, Methods for the
Chemical Analysis of Water and Wastes (EPA/600/4–79/020)</entry>
</row>
<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Average monthly ambient
temperature</entry><entry align="left" colname="col2" leader-modify="force-ldr" rowsep="0">Temperature (Celsius)</entry><entry align="left" colname="col3" leader-modify="clr-ldr" rowsep="0">Monthly (based on farm
averages)</entry><entry align="left" colname="col4" leader-modify="force-ldr" rowsep="0">Closest National Weather Service-certified weather station</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph></paragraph></subsection><subsection id="id9230AE11D8094394BD972AE51B72D0F3"><enum>(f)</enum><header>Eligible
biomass</header>
<paragraph id="id5D240E6D62754755ABD435A49CD1CF12"><enum>(1)</enum><header>In
general</header><text>An offset project that co-fires eligible biomass to
reduce emissions of carbon dioxide and that meets the requirements of this
subsection shall be eligible to receive allowances under this title.</text>
</paragraph><paragraph id="idEC2C0CE31023482BA3441DCDEE3AE1DA"><enum>(2)</enum><header>Application</header><text>To
be eligible to receive an allowance under this subsection, the owner or
operator of an offset project described in paragraph (1) shall submit to the
Administrator an application at such time, in such manner, and containing such
information as the Administrator may require.</text>
</paragraph><paragraph id="idD53A206F39B7459491E52521BD9A8E89"><enum>(3)</enum><header>Emissions
calculations</header>
<subparagraph id="id0441ED6540C94FEA8C76FFCCFB5C48F1"><enum>(A)</enum><header>As-fired carbon
dioxide emissions factor</header>
<clause id="id5376B6F798D84F729C3985E8FA60B8A1"><enum>(i)</enum><header>In
general</header><text>The as-fired carbon dioxide emissions factor of an offset
project under this subsection may be determined—</text>
<subclause id="id169A86DD07FB456EAB2148BE10F4CC23"><enum>(I)</enum><text>as measured and
recorded by a continuous emissions monitor of the offset project for each
period during which only eligible biomass was fired by the offset project;
or</text>
</subclause><subclause id="id1DF5D6F405024DB6A58C0BCE98C802F7"><enum>(II)</enum><text>in accordance
with clause (ii) or (iii), as applicable.</text>
</subclause></clause><clause id="idC816E515C6CF49C180A787CEBCD8100D"><enum>(ii)</enum><header>Solid
fuel</header>
<subclause id="id308F1250BF68469CA842BDD51DD64101"><enum>(I)</enum><header>In
general</header><text>The as-fired carbon dioxide emissions factor of an offset
project under this subsection that uses solid fuel shall be determined in
accordance with the following formula: CO<subscript>2</subscript> lbs/MMBtu =
((C × F<subscript>IN</subscript>)/HI) (44/12).</text>
</subclause><subclause id="idCAB50F25361B49F2A914D403F879DB92"><enum>(II)</enum><header>Abbreviations</header>
<item id="id01C76E6902FE4A049F58867B675B5BFC"><enum>(aa)</enum><header>In
general</header><text>In the formula contained in subclause (I)—</text>
<subitem id="id0792C52668E644E38B3C6325CCAFB697"><enum>(AA)</enum><text><quote>C</quote>
represents the carbon content of biomass (expressed as a percentage by dry
weight) for a distinct fuel type;</text>
</subitem><subitem id="id885D517C693B4C18B8802C6ECF2FE77C"><enum>(BB)</enum><text><quote>F<subscript>IN</subscript></quote>
represents the total biomass fuel input (expressed in pounds) for a distinct
fuel type; and</text>
</subitem><subitem id="id81DA53850C704AC3B53334796DA4B9F6"><enum>(CC)</enum><text><quote>HI</quote>
represents the heat input, as-fired (expressed in MMBtus), as determined in
accordance with the following formula: HI = ∑ (HHV<subscript>DRY</subscript>
(1–MCW<subscript>AS-FIRED-i</subscript>)) ×
F<subscript>IN-i</subscript>.</text>
</subitem></item><item id="id4379C811503A4FE19D6EC00657E9DB00"><enum>(bb)</enum><header>Description</header><text>In
the formula contained in item (aa)(CC)—</text>
<subitem id="id559C08AD330A4BE88BEAF0B08AC86504"><enum>(AA)</enum><text>the figure above
the sigma shall be <quote>n</quote>;</text>
</subitem><subitem id="id47D511ED1E144FEBBC56018C50B47B8B"><enum>(BB)</enum><text>the figure below
the sigma shall be <quote><added-phrase reported-display-style="italic">i</added-phrase> = 1</quote>;</text>
</subitem><subitem id="id84970C9A4613426D8C5FBFEB0BAE7366"><enum>(CC)</enum><text><quote>HHV<subscript>DRY</subscript></quote>
represents the higher heating value (expressed in Btu/lb) on a dry basis for a
distinct fuel type fired;</text>
</subitem><subitem id="id1E1F170E12014DD48F45B0596AAA4272"><enum>(DD)</enum><text><quote>MCW<subscript>AS-FIRED-i</subscript></quote>
represents the moisture content on a wet basis (expressed as a percentage) for
each shipment <added-phrase reported-display-style="italic">i</added-phrase>
fired; and</text>
</subitem><subitem id="idE35E8D741AE64108AD6D9E7F8E4780A3"><enum>(EE)</enum><text><quote>F<subscript>IN-i</subscript></quote>
represents the biomass fuel input (expressed in pounds) for each shipment
<added-phrase reported-display-style="italic">i</added-phrase> fired.</text>
</subitem></item></subclause></clause><clause id="idE71F223BD97149498FE45D65300DEA4E"><enum>(iii)</enum><header>Gaseous
fuel</header>
<subclause id="idE26DB210B2D247DCB4C377438E3A9012"><enum>(I)</enum><header>In
general</header><text>The as-fired carbon dioxide emissions factor of an offset
project under this subsection that uses gaseous fuel shall be determined in
accordance with the following formula: CO<subscript>2</subscript> lbs/MMBtu =
(C × (F<subscript>IN</subscript> × D))/HI) (44/12).</text>
</subclause><subclause id="idB0B768E5CE2441B1946AE155B5A4FCC4"><enum>(II)</enum><header>Abbreviations</header>
<item id="id6D5F31014E1F498B9A7C502058130152"><enum>(aa)</enum><header>In
general</header><text>In the formula contained in subclause (I)—</text>
<subitem id="idEEC75FE4E39849F9A096728B59429B8A"><enum>(AA)</enum><text><quote>C</quote>
represents the carbon content of biomass (expressed as a percentage by weight)
for a distinct fuel type;</text>
</subitem><subitem id="id5CFFA2663407485CAB0C919E1668BDB6"><enum>(BB)</enum><text><quote>F<subscript>IN</subscript></quote>
represents the total biomass fuel input (expressed in pounds) for a distinct
fuel type;</text>
</subitem><subitem id="idC8C79DA7D6F946F691DE0890C3BDD163"><enum>(CC)</enum><text><quote>D</quote>
represents the density of biogas (expressed in pounds per standard cubic feet)
for a distinct fuel type; and</text>
</subitem><subitem id="idA834F8E452A849FBB8C066BA214E80C5"><enum>(DD)</enum><text><quote>HI</quote>
represents the heat input, as-fired (expressed in MMBtus), as determined in
accordance with the following formula: HI = HHV ×
F<subscript>IN</subscript>.</text>
</subitem></item><item id="idA91A1B5339EF4FD98178EFE52AF90DFD"><enum>(bb)</enum><header>Description</header><text>In
the formula contained in item (aa)(DD)—</text>
<subitem id="id7868DD3D45D44CAA852EF553DA3B4ACB"><enum>(AA)</enum><text><quote>HHV</quote>
represents the higher heating value (expressed in Btus per standard cubic feet)
for a distinct fuel type; and</text>
</subitem><subitem id="id3B7B5D0363CB4D9B81E1BE12D5E630AC"><enum>(BB)</enum><text><quote>F<subscript>IN</subscript></quote>
represents the biogas fuel input (expressed in standard cubic feet).</text>
</subitem></item></subclause></clause></subparagraph><subparagraph id="id5AB6ED90C2DB498FA67C2382203FAA4F"><enum>(B)</enum><header>Carbon dioxide
emissions due to firing of eligible biomass</header>
<clause id="idE063B2A0E65D48FD8EC8EF1669DAE81E"><enum>(i)</enum><header>In
general</header><text>The carbon dioxide emissions due to firing of eligible
biomass of an offset project under this subsection shall be determined in
accordance with the following formula: CO<subscript>2</subscript> tons = ∑
(B<subscript>HI-i</subscript> × B<subscript>EF-i</subscript> ×
B<subscript>OF-i</subscript>)/2000.</text>
</clause><clause id="id926BC16692054A4DA11557AA5F06BD48"><enum>(ii)</enum><header>Abbreviations</header><text>In
the formula contained in clause (i)—</text>
<subclause id="idF3CF2ECF5A53497C981190C324419A4A"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id85CD772F19394B80A2C9088022910814"><enum>(aa)</enum><text>the figure above the
sigma shall be <quote>n</quote>; and</text>
</item><item id="idA41D287C0FF64710AF625570CE0CFE96" indent="up1"><enum>(bb)</enum><text>the figure below the sigma shall be
<quote><added-phrase reported-display-style="italic">i</added-phrase> =
1</quote>;</text>
</item></subclause><subclause id="id572DD8D2315742488EEFDE95D7EA4145"><enum>(II)</enum><text><quote>B<subscript>HI-i</subscript></quote>
represents the eligible biomass heat input, as-fired (expressed in MMBtus), for
the reporting quarter for each distinct type
<added-phrase reported-display-style="italic">i</added-phrase> of eligible
biomass fired;</text>
</subclause><subclause id="idCA10A6AA73F742BDBD2885526FC16E81"><enum>(III)</enum><text><quote>B<subscript>EF-i</subscript></quote>
represents the eligible biomass emissions factor for the reporting quarter
(expressed in pounds of carbon dioxide per MMBtu) for each distinct type
<added-phrase reported-display-style="italic">i</added-phrase> of eligible
biomass fired; and</text>
</subclause><subclause id="idDA044E27B9F74F248055008E844D9892"><enum>(IV)</enum><text><quote>B<subscript>OF-i</subscript></quote>
represents the eligible biomass oxidation factor for each distinct type
<added-phrase reported-display-style="italic">i</added-phrase> of eligible
biomass fired, derived for solid fuel based on the ash content of the eligible
biomass fired and the carbon content of that ash, as determined pursuant to
paragraph (4)(A) (with a default value for gaseous biomass fuel of
0.995).</text>
</subclause></clause></subparagraph><subparagraph id="idEA808B61B8424A82A41735CD23D318CF"><enum>(C)</enum><header>Applicable
standards</header><text>Each fuel sampling method and technology used to make a
calculation under this paragraph shall be in accordance with the applicable
standards contained in the New York State Renewable Portfolio Standard Biomass
Guidebook dated May 2006 (or successor standards).</text>
</subparagraph></paragraph><paragraph id="id1967AE1B32424FCD9D8E7D6AF593C7BF"><enum>(4)</enum><header>Monitoring and
verification</header>
<subparagraph id="id680B3802E13E48A1A902C12E08456B00"><enum>(A)</enum><header>In
general</header><text>Not less frequently than once each quarter of each
calendar year during which an offset project receives an allowance under this
title, the owner or operator of the offset project shall submit to the
Administrator a report describing—</text>
<clause id="ID4a03efc36f294040a371b51b647973a6"><enum>(i)</enum><text>a
chemical analysis (including carbon content and heating value) of eligible
biomass fired by the offset project;</text>
</clause><clause id="ID83d06a33b3c24e2dac6bdbea1e6331c3"><enum>(ii)</enum><text>the moisture
content of eligible biomass for each shipment received for firing by the offset
project;</text>
</clause><clause id="ID49a25897af9843069587151fe31fc9d6"><enum>(iii)</enum><text>the total
eligible biomass fuel input (expressed in units of mass or volume, as
appropriate) to the offset project;</text>
</clause><clause id="ID1e4bb5b261a042889bebd2e1e9b92326"><enum>(iv)</enum><text>the total
eligible biomass heat input, on an as-fired basis (expressed in MMBtus), to the
offset project;</text>
</clause><clause id="ID17b1d4f97d4747bdbbe68478d3226ab7"><enum>(v)</enum><text>the heat input
rate (expressed in MMBtus per hour) of eligible biomass to the offset
project;</text>
</clause><clause id="ID7bb1e5eac4d14602a5c6f9828b23fc9d"><enum>(vi)</enum><text>the fuel feed
rate of eligible biomass to the offset project (expressed in units of mass or
volume per hour, as appropriate);</text>
</clause><clause id="IDb33103b66b8444ce8e99165d739ea384"><enum>(vii)</enum><text>the total
number of operating hours during which eligible biomass was fired by the offset
project;</text>
</clause><clause id="ID07acd5c8783d48479ca947846cf81694"><enum>(viii)</enum><text>the number of
tons of carbon dioxide emitted from the offset project due to firing of
eligible biomass;</text>
</clause><clause id="ID045187b69af34194ae66e5d0333dd9bf"><enum>(ix)</enum><text>the fuel
sampling frequency, monitoring technology, and methodology used by the offset
project, including supporting documentation;</text>
</clause><clause id="id55675ECD29BC4241A116AF2354EEC455"><enum>(x)</enum><text>the additional
information required under subparagraph (B), if any; and</text>
</clause><clause id="idD1F843EA8FC34F2DA4D8BD69F060A9B2"><enum>(xi)</enum><text>the carbon
dioxide emissions factor of the offset project, calculated in accordance with
paragraph (3).</text>
</clause></subparagraph><subparagraph id="id10538520D0D54413BBD3FBF32A91CD59"><enum>(B)</enum><header>Additional data
requirements</header>
<clause id="ID594c86c4f083460892b4857052483c16"><enum>(i)</enum><header>Independent
system operator data</header><text>The owner or operator of an offset project
located in a State that requires the use of information submitted to an
independent system operator to establish the megawatt-hours of the offset
project shall submit to the Administrator, together with the report under
subparagraph (A)—</text>
<subclause id="idC75DD5D9AF2B4DDDB7AEE49CC9FB2C2E"><enum>(I)</enum><text>the megawatt-hour
value submitted to the independent system operator; and</text>
</subclause><subclause id="id348D19D039444A7A9EEF00E92A1B5210"><enum>(II)</enum><text>a statement
certifying that the megawatt-hour value reflects the total actual electrical
output for all offset projects at the facility used by the independent system
operator to determine the settlement resources of energy market
participants.</text>
</subclause></clause><clause id="ID65fd0787d41844878269f479b48258ae"><enum>(ii)</enum><header>Gross output
data</header><text>The owner or operator of an offset project that submits to
the Administrator information described in clause (i), and that is located in a
State that requires the use of gross output data with respect to the offset
project, shall submit to the Administrator, together with the information under
clause (i), an electronic data report describing the gross output (expressed in
megawatts) of the offset project, as calculated by adding, for each hour of the
applicable quarter during which the offset project was in operation, the
product obtained by multiplying—</text>
<subclause id="idDAF5719DDC184F7585C186D64CE8DF95"><enum>(I)</enum><text>the gross output
(expressed in megawatts) of the offset project for the hour; and</text>
</subclause><subclause id="idB64B3A205846428DB0E76F6CB7435479"><enum>(II)</enum><text>the proportion
that—</text>
<item id="id028AAD5F77FD45609118C987BE8CC352"><enum>(aa)</enum><text>the number of
minutes of the hour during which the offset project was in operation; bears
to</text>
</item><item commented="no" display-inline="no-display-inline" id="id91E95CDEC36C48E393B179F8BBB22D85"><enum>(bb)</enum><text>60.</text>
</item></subclause></clause></subparagraph></paragraph></subsection></section>.