[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2191 Reported in Senate (RS)]
Calendar No. 740
110th CONGRESS
2d Session
S. 2191
[Report No. 110-337]
To direct the Administrator of the Environmental Protection Agency to
establish a program to decrease emissions of greenhouse gases, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 18, 2007
Mr. Lieberman (for himself, Mr. Warner, Mr. Harkin, Mr. Coleman, Mrs.
Dole, Ms. Collins, Mr. Cardin, Ms. Klobuchar, Mr. Casey, Mr. Nelson of
Florida, Mr. Wyden, and Mr. Schumer) introduced the following bill;
which was read twice and referred to the Committee on Environment and
Public Works
May 20, 2008
Reported by Mrs. Boxer, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To direct the Administrator of the Environmental Protection Agency to
establish a program to decrease emissions of greenhouse gases, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>
<DELETED> (a) Short Title.--This Act may be cited as the ``America's
Climate Security Act of 2007''.</DELETED>
<DELETED> (b) Table of Contents.--The table of contents of this Act
is as follows:</DELETED>
<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Findings.
<DELETED>Sec. 3. Purposes.
<DELETED>Sec. 4. Definitions.
<DELETED>TITLE I--CAPPING GREENHOUSE GAS EMISSIONS
<DELETED>Subtitle A--Tracking Emissions
<DELETED>Sec. 1101. Purpose.
<DELETED>Sec. 1102. Definitions.
<DELETED>Sec. 1103. Reporting requirements.
<DELETED>Sec. 1104. Data quality and verification.
<DELETED>Sec. 1105. Federal greenhouse gas registry.
<DELETED>Sec. 1106. Enforcement.
<DELETED>Subtitle B--Reducing Emissions
<DELETED>Sec. 1201. Emission allowance account.
<DELETED>Sec. 1202. Compliance obligation.
<DELETED>Sec. 1203. Penalty for noncompliance.
<DELETED>TITLE II--MANAGING AND CONTAINING COSTS EFFICIENTLY
<DELETED>Subtitle A--Trading
<DELETED>Sec. 2101. Sale, exchange, and retirement of emission
allowances.
<DELETED>Sec. 2102. No restriction on transactions.
<DELETED>Sec. 2103. Allowance transfer system.
<DELETED>Sec. 2104. Allowance tracking system.
<DELETED>Subtitle B--Banking
<DELETED>Sec. 2201. Indication of calendar year.
<DELETED>Sec. 2202. Effect of time.
<DELETED>Subtitle C--Borrowing
<DELETED>Sec. 2301. Regulations.
<DELETED>Sec. 2302. Term.
<DELETED>Sec. 2303. Repayment with interest.
<DELETED>Subtitle D--Offsets
<DELETED>Sec. 2401. Outreach initiative on revenue enhancement for
agricultural producers.
<DELETED>Sec. 2402. Establishment of domestic offset program.
<DELETED>Sec. 2403. Eligible agricultural and forestry offset project
types.
<DELETED>Sec. 2404. Project initiation and approval.
<DELETED>Sec. 2405. Offset verification and issuance of allowances for
agricultural and forestry projects.
<DELETED>Sec. 2406. Tracking of reversals for sequestration projects.
<DELETED>Sec. 2407. Examinations.
<DELETED>Sec. 2408. Timing and the provision of offset allowances.
<DELETED>Sec. 2409. Offset registry.
<DELETED>Sec. 2410. Environmental considerations.
<DELETED>Sec. 2411. Program review.
<DELETED>Subtitle E--International Credits
<DELETED>Sec. 2501. Use of international allowances or credits.
<DELETED>Sec. 2502. Regulations.
<DELETED>Sec. 2503. Facility certification.
<DELETED>Subtitle F--Carbon Market Efficiency Board
<DELETED>Sec. 2601. Purposes.
<DELETED>Sec. 2602. Establishment of Carbon Market Efficiency Board.
<DELETED>Sec. 2603. Duties.
<DELETED>Sec. 2604. Powers.
<DELETED>Sec. 2605. Estimate of costs to economy of limiting greenhouse
gas emissions.
<DELETED>TITLE III--ALLOCATING AND DISTRIBUTING ALLOWANCES
<DELETED>Subtitle A--Early Auctions
<DELETED>Sec. 3101. Allocation for early auctions.
<DELETED>Subtitle B--Annual Auctions
<DELETED>Sec. 3201. Allocation for annual auctions.
<DELETED>Subtitle C--Early Action
<DELETED>Sec. 3301. Allocation.
<DELETED>Sec. 3302. Distribution.
<DELETED>Subtitle D--States
<DELETED>Sec. 3401. Allocation for energy savings.
<DELETED>Sec. 3402. Allocation for States with programs that exceed
Federal emission reduction targets.
<DELETED>Sec. 3403. General allocation.
<DELETED>Subtitle E--Electricity Consumers
<DELETED>Sec. 3501. Allocation.
<DELETED>Sec. 3502. Distribution.
<DELETED>Sec. 3503. Use.
<DELETED>Sec. 3504. Reporting.
<DELETED>Subtitle F--Bonus Allowances for Carbon Capture and Geological
Sequestration
<DELETED>Sec. 3601. Allocation.
<DELETED>Sec. 3602. Qualifying projects.
<DELETED>Sec. 3603. Distribution.
<DELETED>Sec. 3604. 10-Year limit.
<DELETED>Sec. 3605. Exhaustion of bonus allowance account.
<DELETED>Subtitle G--Domestic Agriculture and Forestry
<DELETED>Sec. 3701. Allocation.
<DELETED>Sec. 3702. Agricultural and forestry greenhouse gas management
research.
<DELETED>Sec. 3703. Distribution.
<DELETED>Subtitle H--International Forest Protection
<DELETED>Sec. 3801. Findings.
<DELETED>Sec. 3802. Definition of forest carbon activities.
<DELETED>Sec. 3803. Allocation.
<DELETED>Sec. 3804. Definition and eligibility requirements.
<DELETED>Sec. 3805. International forest carbon activities.
<DELETED>Sec. 3806. Reviews and discount.
<DELETED>Subtitle I--Covered Facilities
<DELETED>Sec. 3901. Allocation.
<DELETED>Sec. 3902. Distribution system.
<DELETED>Sec. 3903. Distributing emission allowances within the
electric power sector.
<DELETED>Sec. 3904. Distributing emission allowances within the
industrial sector.
<DELETED>TITLE IV--AUCTIONS AND USES OF AUCTION PROCEEDS
<DELETED>Subtitle A--Funds
<DELETED>Sec. 4101. Establishment.
<DELETED>Sec. 4102. Amounts in Funds.
<DELETED>Sec. 4103. Transfers to Funds.
<DELETED>Subtitle B--Climate Change Credit Corporation
<DELETED>Sec. 4201. Establishment.
<DELETED>Sec. 4202. Applicable laws.
<DELETED>Sec. 4203. Board of directors.
<DELETED>Subtitle C--Auctions
<DELETED>Sec. 4301. Early auctions.
<DELETED>Sec. 4302. Annual auctions.
<DELETED>Subtitle D--Energy Technology Deployment
<DELETED>Sec. 4401. In general.
<DELETED>Sec. 4402. Zero- or low-carbon energy technologies deployment.
<DELETED>Sec. 4403. Advanced coal and sequestration technologies
program.
<DELETED>Sec. 4404. Fuel from cellulosic biomass.
<DELETED>Sec. 4405. Advanced technology vehicles manufacturing
incentive program.
<DELETED>Subtitle E--Energy Consumers
<DELETED>Sec. 4501. Proportions of funding availability.
<DELETED>Sec. 4502. Rural energy assistance program.
<DELETED>Subtitle F--Climate Change Worker Training Program
<DELETED>Sec. 4601. Funding.
<DELETED>Sec. 4602. Purposes.
<DELETED>Sec. 4603. Establishment.
<DELETED>Sec. 4604. Grants to States.
<DELETED>Sec. 4605. Types of assistance.
<DELETED>Subtitle G--Adaptation Program for Natural Resources in United
States and Territories
<DELETED>Sec. 4701. Definitions.
<DELETED>Sec. 4702. Adaptation fund.
<DELETED>Subtitle H--Climate Change and National Security Program
<DELETED>Sec. 4801. Interagency Climate Change and National Security
Council.
<DELETED>Sec. 4802. Funding.
<DELETED>Subtitle I--Audits
<DELETED>Sec. 4901. Review and audit by Comptroller General of the
United States.
<DELETED>TITLE V--ENERGY EFFICIENCY
<DELETED>Subtitle A--Appliance Efficiency
<DELETED>Sec. 5101. Residential boilers.
<DELETED>Sec. 5102. Regional variations in heating or cooling
standards.
<DELETED>Subtitle B--Building Efficiency
<DELETED>Sec. 5201. Updating State building energy efficiency codes.
<DELETED>Sec. 5202. Conforming amendment.
<DELETED>TITLE VI--GLOBAL EFFORT TO REDUCE GREENHOUSE GAS EMISSIONS
<DELETED>Sec. 6001. Definitions.
<DELETED>Sec. 6002. Purposes.
<DELETED>Sec. 6003. International negotiations.
<DELETED>Sec. 6004. Interagency review.
<DELETED>Sec. 6005. Presidential determinations.
<DELETED>Sec. 6006. International reserve allowance program.
<DELETED>Sec. 6007. Adjustment of international reserve allowance
requirements.
<DELETED>TITLE VII--REVIEWS
<DELETED>Sec. 7001. National Academy of Sciences Review.
<DELETED>Sec. 7002. Transportation sector review.
<DELETED>Sec. 7003. Adaptation review.
<DELETED>TITLE VIII--FRAMEWORK FOR GEOLOGICAL SEQUESTRATION OF CARBON
DIOXIDE
<DELETED>Sec. 8001. National drinking water regulations.
<DELETED>Sec. 8002. Assessment of geological storage capacity for
carbon dioxide.
<DELETED>Sec. 8003. Study of the feasibility relating to construction
of pipelines and geological carbon dioxide
sequestration activities.
<DELETED>Sec. 8004. Liabilities for closed geological storage sites.
<DELETED>TITLE IX--MISCELLANEOUS
<DELETED>Sec. 9001. Paramount interest waiver.
<DELETED>Sec. 9002. Corporate environmental disclosure of climate
change risks.
<DELETED>Sec. 9003. Administrative procedure and judicial review.
<DELETED>Sec. 9004. Retention of State authority.
<DELETED>Sec. 9005. Tribal authority.
<DELETED>Sec. 9006. Authorization of appropriations.
<DELETED>SEC. 2. FINDINGS.</DELETED>
<DELETED> Congress finds that--</DELETED>
<DELETED> (1) unchecked global warming poses a significant
threat to--</DELETED>
<DELETED> (A) the national security and economy of
the United States;</DELETED>
<DELETED> (B) public health and welfare in the
United States;</DELETED>
<DELETED> (C) the well-being of other countries;
and</DELETED>
<DELETED> (D) the global environment;</DELETED>
<DELETED> (2) under the United Nations Framework Convention
on Climate Change, done at New York on May 9, 1992, the United
States is committed to stabilizing greenhouse gas
concentrations in the atmosphere at a level that will prevent
dangerous anthropogenic interference with the climate
system;</DELETED>
<DELETED> (3) according to the Fourth Assessment Report of
the Intergovernmental Panel on Climate Change, stabilizing
greenhouse gas concentrations in the atmosphere at a level that
will prevent dangerous interference with the climate system
will require a global effort to reduce anthropogenic greenhouse
gas emissions worldwide by 50 to 85 percent below 2000 levels
by 2050;</DELETED>
<DELETED> (4) prompt, decisive action is critical, since
global warming pollutants can persist in the atmosphere for
more than a century;</DELETED>
<DELETED> (5) the ingenuity of the people of the United
States will allow the United States to become a leader in
curbing global warming;</DELETED>
<DELETED> (6) it is possible and desirable to cap greenhouse
gas emissions, from sources that together account for the
majority of those emissions in the United States, at the
current level in 2012, and to lower the cap each year between
2012 and 2050, on the condition that the system includes--
</DELETED>
<DELETED> (A) cost containment measures;</DELETED>
<DELETED> (B) periodic review of
requirements;</DELETED>
<DELETED> (C) an aggressive program for deploying
advanced energy technology;</DELETED>
<DELETED> (D) programs to assist low- and middle-
income energy consumers; and</DELETED>
<DELETED> (E) programs to mitigate the impacts of
any unavoidable global climate change;</DELETED>
<DELETED> (7) Congress may need to update the emissions caps
in order to account for continuing scientific data and steps
taken, or not taken, by foreign countries;</DELETED>
<DELETED> (8) accurate emission data and timely compliance
with the requirements of the greenhouse gas emission reduction
and trading program established under this Act are needed to
ensure that reductions are achieved and to provide equity,
efficiency, and openness in the market for allowances subject
to the program; and</DELETED>
<DELETED> (9) additional policies external to a cap-and-
trade program may be required, including with respect to--
</DELETED>
<DELETED> (A) the transportation sector, where
reducing greenhouse gas emissions requires changes in
the vehicle, in the fuels, and in consumer behavior;
and</DELETED>
<DELETED> (B) the built environment, where reducing
direct and indirect greenhouse gas emissions requires
changes in buildings, appliances, lighting, heating,
cooling, and consumer behavior.</DELETED>
<DELETED>SEC. 3. PURPOSES.</DELETED>
<DELETED> The purposes of this Act are--</DELETED>
<DELETED> (1) to establish the core of a Federal program
that will reduce United States greenhouse gas emissions
substantially enough between 2007 and 2050 to avert the
catastrophic impacts of global climate change; and</DELETED>
<DELETED> (2) to accomplish that purpose while preserving
robust growth in the United States economy and avoiding the
imposition of hardship on United States citizens.</DELETED>
<DELETED>SEC. 4. DEFINITIONS.</DELETED>
<DELETED> In this Act:</DELETED>
<DELETED> (1) Additional and additionality.--The terms
``additional'' and ``additionality'' mean the extent to which
reductions in greenhouse gas emissions or increases in
sequestration are incremental to business-as-usual, measured as
the difference between--</DELETED>
<DELETED> (A) baseline greenhouse gas fluxes of an
offset project; and</DELETED>
<DELETED> (B) greenhouse gas fluxes of the offset
project.</DELETED>
<DELETED> (2) Administrator.--The term ``Administrator''
means the Administrator of the Environmental Protection
Agency.</DELETED>
<DELETED> (3) Baseline.--The term ``baseline'' means the
greenhouse gas flux or carbon stock that would have occurred in
the absence of an offset allowance.</DELETED>
<DELETED> (4) Biological sequestration; biologically
sequestered.--The terms ``biological sequestration'' and
``biologically sequestered'' mean--</DELETED>
<DELETED> (A) the removal of greenhouse gases from
the atmosphere by terrestrial biological means, such as
by growing plants; and</DELETED>
<DELETED> (B) the storage of those greenhouse gases
without reversal in the plants or related
soils.</DELETED>
<DELETED> (5) Carbon dioxide equivalent.--The term ``carbon
dioxide equivalent'' means, for each greenhouse gas, the
quantity of the greenhouse gas that the Administrator
determines makes the same contribution to global warming as 1
metric ton of carbon dioxide.</DELETED>
<DELETED> (6) Corporation.--The term ``Corporation'' means
the Climate Change Credit Corporation established by section
4201(a).</DELETED>
<DELETED> (7) Covered facility.--The term ``covered
facility'' means--</DELETED>
<DELETED> (A) any facility within the electric power
sector that contains fossil fuel-fired electricity
generating units that together emit more than 10,000
carbon dioxide equivalents of greenhouse gas in any
year;</DELETED>
<DELETED> (B) any facility within the industrial
sector that emits more than 10,000 carbon dioxide
equivalents of greenhouse gas in any year;</DELETED>
<DELETED> (C) any facility that in any year
produces, or any entity that in any year imports,
petroleum- or coal-based transportation fuel, the use
of which will emit more than 10,000 carbon dioxide
equivalents of greenhouse gas, assuming no capture and
permanent sequestration of that gas; or</DELETED>
<DELETED> (D) any facility that in any year
produces, or any entity that in any year imports,
nonfuel chemicals that will emit more than 10,000
carbon dioxide equivalents of greenhouse gas, assuming
no capture and destruction or permanent sequestration
of that gas.</DELETED>
<DELETED> (8) Destruction.--The term ``destruction'' means
the conversion of a greenhouse gas by thermal, chemical, or
other means--</DELETED>
<DELETED> (A) to another gas with a low- or zero-
global warming potential; and</DELETED>
<DELETED> (B) for which credit given reflects the
extent of reduction in global warming potential
actually achieved.</DELETED>
<DELETED> (9) Electric power sector.--The term ``electric
power sector'' means the ``Electric Power Industry'', as that
term is used in Table ES-7 of the Environmental Protection
Agency document entitled ``Inventory of U.S. Greenhouse Gas
Emissions and Sinks: 1990-2005''.</DELETED>
<DELETED> (10) Emission allowance.--The term ``emission
allowance'' means an authorization to emit 1 carbon dioxide
equivalent of greenhouse gas.</DELETED>
<DELETED> (11) Emission allowance account.--The term
``Emission Allowance Account'' means the aggregate of emission
allowances that the Administrator establishes for a calendar
year.</DELETED>
<DELETED> (12) Facility.--The term ``facility'' means--
</DELETED>
<DELETED> (A) a building, structure, or installation
located on 1 or more contiguous or adjacent properties
of an entity in the United States; and</DELETED>
<DELETED> (B) at the option of the Administrator,
any activity or operation that has a technical
connection with the activities carried out at a
facility, such as use of transportation fleets,
pipelines, transmission lines, and distribution lines,
but that is not conducted or located on the property of
the facility.</DELETED>
<DELETED> (13) Fair market value.--The term ``fair market
value'' means the average price, in a particular calendar year,
of an emission allowance auctioned by the
Corporation.</DELETED>
<DELETED> (14) Geological sequestration; geologically
sequestered.--The terms ``geological sequestration'' and
``geologically sequestered'' mean the long-term isolation of
greenhouse gases, without reversal, in geological formations,
in accordance with section 1421(d) of the Safe Drinking Water
Act (42 U.S.C. 300h(d)).</DELETED>
<DELETED> (15) Greenhouse gas.--The term ``greenhouse gas''
means any of--</DELETED>
<DELETED> (A) carbon dioxide;</DELETED>
<DELETED> (B) methane;</DELETED>
<DELETED> (C) nitrous oxide;</DELETED>
<DELETED> (D) sulfur hexafluoride;</DELETED>
<DELETED> (E) a hydrofluorocarbon; or</DELETED>
<DELETED> (F) a perfluorocarbon.</DELETED>
<DELETED> (16) Industrial sector.--The term ``industrial
sector'' means ``Industry'', as that term is used in Table ES-7
of the Environmental Protection Agency document entitled
``Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-
2005''.</DELETED>
<DELETED> (17) Leakage.--The term ``leakage'' means--
</DELETED>
<DELETED> (A) a potentially unaccounted increase in
greenhouse gas emissions by a facility or entity caused
by an offset project that produces an accounted
reduction in greenhouse gas emissions; or</DELETED>
<DELETED> (B) a potentially unaccounted decrease in
sequestration that is caused by an offset project that
results in an accounted increase in
sequestration.</DELETED>
<DELETED> (18) Load-serving entity.--The term ``load-serving
entity'' means an entity, whether public or private--</DELETED>
<DELETED> (A) that has a legal, regulatory, or
contractual obligation to deliver electricity to retail
consumers; and</DELETED>
<DELETED> (B) whose rates and costs are, except in
the case of a registered electric cooperative,
regulated by a State agency, regulatory commission,
municipality, or public utility district.</DELETED>
<DELETED> (19) New entrant.--The term ``new entrant'' means
any facility that commences operation on or after January 1,
2008.</DELETED>
<DELETED> (20) Offset allowance.--The term ``offset
allowance'' means a unit of reduction in the quantity of
emissions or an increase in sequestration equal to 1 carbon
dioxide equivalent at a facility that is not a covered
facility, where the reduction in emissions or increase in
sequestration is eligible to be used as an additional means of
compliance for the submission requirements established under
section 1202.</DELETED>
<DELETED> (21) Offset project.--The term ``offset project''
means a project, other than a project at a covered facility,
that reduces greenhouse gas emissions or increases
sequestration of carbon dioxide.</DELETED>
<DELETED> (22) Project developer.--The term ``project
developer'' means an individual or entity implementing an
offset project.</DELETED>
<DELETED> (23) Retail rate for distribution service.--
</DELETED>
<DELETED> (A) In general.--The term ``retail rate
for distribution service'' means the rate that a load-
serving entity charges for the use of the system of the
load-serving entity.</DELETED>
<DELETED> (B) Exclusion.--The term ``retail rate for
distribution service'' does not include any energy
component of the rate.</DELETED>
<DELETED> (24) Retire an emission allowance.--The term
``retire an emission allowance'' means to disqualify an
emission allowance for any subsequent use, regardless of
whether the use is a sale, exchange, or submission of the
allowance in satisfying a compliance obligation.</DELETED>
<DELETED> (25) Reversal.--The term ``reversal'' means an
intentional or unintentional loss of sequestered carbon dioxide
to the atmosphere.</DELETED>
<DELETED> (26) Rural electric cooperative.--The term ``rural
electric cooperative'' means a cooperatively-owned association
that is eligible to receive loans under section 4 of the Rural
Electrification Act of 1936 (7 U.S.C. 904).</DELETED>
<DELETED> (27) Sequestered and sequestration.--The terms
``sequestered'' and ``sequestration'' mean the capture,
permanent separation, isolation, or removal of greenhouse gases
from the atmosphere.</DELETED>
<DELETED> (28) State regulatory authority.--The term ``State
regulatory authority'' means any State agency that has
ratemaking authority with respect to the retail rate for
distribution service.</DELETED>
<DELETED> (29) Transportation sector.--The term
``transportation sector'' means ``Transportation'', as that
term is used in Table ES-7 of the Environmental Protection
Agency document entitled, ``Inventory of U.S. Greenhouse Gas
Emissions and Sinks: 1990-2005''.</DELETED>
<DELETED>TITLE I--CAPPING GREENHOUSE GAS EMISSIONS</DELETED>
<DELETED>Subtitle A--Tracking Emissions</DELETED>
<DELETED>SEC. 1101. PURPOSE.</DELETED>
<DELETED> The purpose of this subtitle is to establish a Federal
greenhouse gas registry that--</DELETED>
<DELETED> (1) is complete, consistent, transparent, and
accurate;</DELETED>
<DELETED> (2) will collect reliable and accurate data that
can be used by public and private entities to design efficient
and effective energy security initiatives and greenhouse gas
emission reduction strategies; and</DELETED>
<DELETED> (3) will provide appropriate high-quality data to
be used for implementing greenhouse gas reduction
policies.</DELETED>
<DELETED>SEC. 1102. DEFINITIONS.</DELETED>
<DELETED> In this subtitle:</DELETED>
<DELETED> (1) Affected facility.--</DELETED>
<DELETED> (A) In general.--The term ``affected
facility'' means--</DELETED>
<DELETED> (i) a covered facility;</DELETED>
<DELETED> (ii) another facility that emits a
greenhouse gas, as determined by the
Administrator; and</DELETED>
<DELETED> (iii) at the option of the
Administrator, a vehicle fleet with emissions
of more than 10,000 carbon dioxide equivalents
per year, assuming no double-counting of
emissions.</DELETED>
<DELETED> (B) Exclusions.--The term ``affected
facility'' does not include any facility that--
</DELETED>
<DELETED> (i) is not a covered
facility;</DELETED>
<DELETED> (ii) is owned or operated by a
small business (as described in part 121 of
title 13, Code of Federal Regulations (or a
successor regulation)); and</DELETED>
<DELETED> (iii) emits fewer than 10,000
carbon dioxide equivalents in any
year.</DELETED>
<DELETED> (2) Carbon content.--The term ``carbon content''
means the quantity of carbon (in carbon dioxide equivalent)
contained in a fuel.</DELETED>
<DELETED> (3) Climate registry.--The term ``Climate
Registry'' means the greenhouse gas emissions registry jointly
established and managed by more than 40 States and Indian
tribes to collect high-quality greenhouse gas emission data
from facilities, corporations, and other organizations to
support various greenhouse gas emission reporting and reduction
policies for the member States and Indian tribes.</DELETED>
<DELETED> (4) Feedstock fossil fuel.--The term ``feedstock
fossil fuel'' means fossil fuel used as raw material in a
manufacturing process.</DELETED>
<DELETED> (5) Greenhouse gas emissions.--The term
``greenhouse gas emissions'' means emissions of a greenhouse
gas, including--</DELETED>
<DELETED> (A) stationary combustion source emissions
emitted as a result of combustion of fuels in
stationary equipment, such as boilers, furnaces,
burners, turbines, heaters, incinerators, engines,
flares, and other similar sources;</DELETED>
<DELETED> (B) process emissions consisting of
emissions from chemical or physical processes other
than combustion;</DELETED>
<DELETED> (C) fugitive emissions consisting of
intentional and unintentional emissions from equipment
leaks, such as joints, seals, packing, and gaskets, or
from piles, pits, cooling towers, and other similar
sources; and</DELETED>
<DELETED> (D) biogenic emissions resulting from
biological processes, such as anaerobic decomposition,
nitrification, and denitrification.</DELETED>
<DELETED> (6) Indian tribe.--The term ``Indian tribe'' has
the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b).</DELETED>
<DELETED> (7) Registry.--The term ``Registry'' means the
Federal greenhouse gas registry established under section
1105(a).</DELETED>
<DELETED> (8) Source.--The term ``source'' means any
building, structure, installation, unit, point, operation,
vehicle, land area, or other item that emits or may emit a
greenhouse gas.</DELETED>
<DELETED>SEC. 1103. REPORTING REQUIREMENTS.</DELETED>
<DELETED> (a) In General.--Subject to this section, each affected
facility shall submit to the Administrator, for inclusion in the
Registry, periodic reports, including annual and quarterly data, that--
</DELETED>
<DELETED> (1) include the quantity and type of fossil fuels,
including feedstock fossil fuels, that are extracted, produced,
refined, imported, exported, or consumed at or by the
facility;</DELETED>
<DELETED> (2) include the quantity of hydrofluorocarbons,
perfluorocarbons, sulfur hexafluoride, nitrous oxide, carbon
dioxide that has been captured and sequestered, and other
greenhouse gases generated, produced, imported, exported, or
consumed at or by the facility;</DELETED>
<DELETED> (3) include the quantity of electricity generated,
imported, exported, or consumed by or at the facility, and
information on the quantity of greenhouse gases emitted when
the imported, exported, or consumed electricity was generated,
as determined by the Administrator;</DELETED>
<DELETED> (4) include the aggregate quantity of all
greenhouse gas emissions from sources at the facility,
including stationary combustion source emissions, process
emissions, and fugitive emissions;</DELETED>
<DELETED> (5) include greenhouse gas emissions expressed in
metric tons of each greenhouse gas emitted and in the quantity
of carbon dioxide equivalents of each greenhouse gas
emitted;</DELETED>
<DELETED> (6) include a list and description of sources of
greenhouse gas emissions at the facility;</DELETED>
<DELETED> (7) quantify greenhouse gas emissions in
accordance with the measurement standards established under
section 1104;</DELETED>
<DELETED> (8) include other data necessary for accurate and
complete accounting of greenhouse gas emissions, as determined
by the Administrator;</DELETED>
<DELETED> (9) include an appropriate certification regarding
the accuracy and completeness of reported data, as determined
by the Administrator; and</DELETED>
<DELETED> (10) are submitted electronically to the
Administrator, in such form and to such extent as may be
required by the Administrator.</DELETED>
<DELETED> (b) De Minimis Exemptions.--</DELETED>
<DELETED> (1) In general.--The Administrator may determine--
</DELETED>
<DELETED> (A) whether certain sources at a facility
should be considered to be eligible for a de minimis
exemption from a requirement for reporting under
subsection (a); and</DELETED>
<DELETED> (B) the level of greenhouse gases emitted
from a source that would qualify for such an
exemption.</DELETED>
<DELETED> (2) Factors.--In making a determination under
paragraph (1), the Administrator shall consider the
availability and suitability of simplified techniques and tools
for quantifying emissions and the cost to measure those
emissions relative to the purposes of this title, including the
goal of collecting complete and consistent facility-wide
data.</DELETED>
<DELETED> (c) Verification of Report Required.--Before including the
information from a report required under this section in the Registry,
the Administrator shall verify the completeness and accuracy of the
report using information provided under this section, obtained under
section 9003(c), or obtained under other provisions of law.</DELETED>
<DELETED> (d) Timing.--</DELETED>
<DELETED> (1) Calendar years 2004 through 2007.--For a
baseline period of calendar years 2004 through 2007, each
affected facility shall submit required annual data described
in this section to the Administrator not later than March 31,
2009.</DELETED>
<DELETED> (2) Subsequent calendar years.--For calendar year
2008 and each subsequent calendar year, each affected facility
shall submit quarterly data described in this section to the
Administrator not later than 60 days after the end of the
applicable quarter.</DELETED>
<DELETED> (e) No Effect on Other Requirements.--Nothing in this
title affects any requirement in effect as of the date of enactment of
this Act relating to the reporting of--</DELETED>
<DELETED> (1) fossil fuel production, refining, importation,
exportation, or consumption data;</DELETED>
<DELETED> (2) greenhouse gas emission data; or</DELETED>
<DELETED> (3) other relevant data.</DELETED>
<DELETED>SEC. 1104. DATA QUALITY AND VERIFICATION.</DELETED>
<DELETED> (a) Protocols and Methods.--</DELETED>
<DELETED> (1) In general.--The Administrator shall establish
by regulation, taking into account the work done by the Climate
Registry, comprehensive protocols and methods to ensure the
accuracy, completeness, consistency, and transparency of data
on greenhouse gas emissions and fossil fuel production,
refining, importation, exportation, and consumption submitted
to the Registry that include--</DELETED>
<DELETED> (A) accounting and reporting standards for
fossil fuel production, refining, importation,
exportation, and consumption;</DELETED>
<DELETED> (B) a requirement that, where
technologically feasible, submitted data are monitored
using monitoring systems for fuel flow or emissions,
such as continuous emission monitoring systems or
equivalent systems of similar rigor, accuracy, quality,
and timeliness;</DELETED>
<DELETED> (C) a requirement that, if a facility has
already been directed to monitor emissions of a
greenhouse gas using a continuous emission monitoring
system under existing law, that system be used in
complying with this Act with respect to the greenhouse
gas;</DELETED>
<DELETED> (D) for cases in which the Administrator
determines that monitoring emissions with the
precision, reliability, accessibility, and timeliness
similar to that provided by a continuous emission
monitoring system are not technologically feasible,
standardized methods for calculating greenhouse gas
emissions in specific industries using other readily
available and reliable information, such as fuel
consumption, materials consumption, production, or
other relevant activity data, on the condition that
those methods do not underreport emissions, as compared
with the continuous emission monitoring
system;</DELETED>
<DELETED> (E) information on the accuracy of
measurement and calculation methods;</DELETED>
<DELETED> (F) methods to avoid double-counting of
greenhouse gas emissions;</DELETED>
<DELETED> (G) protocols to prevent an affected
facility from avoiding the reporting requirements of
this title; and</DELETED>
<DELETED> (H) protocols for verification of data
submitted by affected facilities.</DELETED>
<DELETED> (2) Best practices.--The protocols and methods
developed under paragraph (1) shall incorporate and conform to
the best practices from the most recent Federal, State, and
international protocols for the measurement, accounting,
reporting, and verification of greenhouse gas emissions to
ensure the accuracy, completeness, and consistency of the
data.</DELETED>
<DELETED> (b) Verification; Information by Reporting Entities.--Each
affected facility shall--</DELETED>
<DELETED> (1) provide information sufficient for the
Administrator to verify, in accordance with the protocols and
methods developed under subsection (a), that the fossil fuel
data and greenhouse gas emission data of the affected facility
have been completely and accurately reported; and</DELETED>
<DELETED> (2) ensure the submission or retention, for the 5-
year period beginning on the date of provision of the
information, of--</DELETED>
<DELETED> (A) data sources;</DELETED>
<DELETED> (B) information on internal control
activities;</DELETED>
<DELETED> (C) information on assumptions used in
reporting emissions and fuels;</DELETED>
<DELETED> (D) uncertainty analyses; and</DELETED>
<DELETED> (E) other relevant data and information to
facilitate the verification of reports submitted to the
Registry.</DELETED>
<DELETED> (c) Waiver of Reporting Requirements.--The Administrator
may waive reporting requirements for specific facilities if the
Administrator determines that sufficient and equally or more reliable
data are available under other provisions of law.</DELETED>
<DELETED> (d) Missing Data.--If information, satisfactory to the
Administrator, is not provided for an affected facility, the
Administrator shall--</DELETED>
<DELETED> (1) prescribe methods to estimate emissions for
the facility for each period for which data are missing,
reflecting the highest emission levels that may reasonably have
occurred during the period for which data are missing;
and</DELETED>
<DELETED> (2) take appropriate enforcement action pursuant
to this section and section 9003(b).</DELETED>
<DELETED>SEC. 1105. FEDERAL GREENHOUSE GAS REGISTRY.</DELETED>
<DELETED> (a) Establishment.--The Administrator shall establish a
Federal greenhouse gas registry.</DELETED>
<DELETED> (b) Administration.--In establishing the Registry, the
Administrator shall--</DELETED>
<DELETED> (1) design and operate the Registry;</DELETED>
<DELETED> (2) establish an advisory body that is broadly
representative of private enterprise, agriculture,
environmental groups, and State, tribal, and local governments
to guide the development and management of the
Registry;</DELETED>
<DELETED> (3) provide coordination and technical assistance
for the development of proposed protocols and methods, taking
into account the duties carried out by the Climate Registry, to
be published by the Administrator;</DELETED>
<DELETED> (4)(A) develop an electronic format for reporting
under guidelines established under section 1104(a)(1);
and</DELETED>
<DELETED> (B) make the electronic format available to
reporting entities;</DELETED>
<DELETED> (5) verify and audit the data submitted by
reporting entities;</DELETED>
<DELETED> (6) establish consistent policies for calculating
carbon content and greenhouse gas emissions for each type of
fossil fuel reported under section 1103;</DELETED>
<DELETED> (7) calculate carbon content and greenhouse gas
emissions associated with the combustion of fossil fuel data
reported by reporting entities;</DELETED>
<DELETED> (8) immediately publish on the Internet all
information contained in the Registry, except in any case in
which publishing the information would result in a disclosure
of--</DELETED>
<DELETED> (A) information vital to national
security, as determined by the President; or</DELETED>
<DELETED> (B) confidential business information that
cannot be derived from information that is otherwise
publicly available and that would cause significant
calculable competitive harm if published (except that
information relating to greenhouse gas emissions shall
not be considered to be confidential business
information).</DELETED>
<DELETED> (c) Third-Party Verification.--The Administrator may use
the services of third parties that have no conflicts of interest to
verify reports required under section 1103.</DELETED>
<DELETED> (d) Regulations.--The Administrator shall--</DELETED>
<DELETED> (1) not later than 180 days after the date of
enactment of this Act, propose regulations to carry out this
section; and</DELETED>
<DELETED> (2) not later than July 1, 2008, promulgate final
regulations to carry out this section.</DELETED>
<DELETED>SEC. 1106. ENFORCEMENT.</DELETED>
<DELETED> (a) Civil Actions.--The Administrator may bring a civil
action in United States district court against the owner or operator of
an affected facility that fails to comply with any requirement of this
subtitle.</DELETED>
<DELETED> (b) Penalty.--Any person that has violated or is violating
this subtitle shall be subject to a civil penalty of not more than
$25,000 per day of each violation.</DELETED>
<DELETED>Subtitle B--Reducing Emissions</DELETED>
<DELETED>SEC. 1201. EMISSION ALLOWANCE ACCOUNT.</DELETED>
<DELETED> (a) In General.--The Administrator shall establish a
separate quantity of emission allowances for each of calendar years
2012 through 2050.</DELETED>
<DELETED> (b) Identification Numbers.--The Administrator shall
assign to each emission allowance established under subsection (a) a
unique identification number that includes the calendar year for which
that emission allowance was established.</DELETED>
<DELETED> (c) Legal Status of Emission Allowances.--</DELETED>
<DELETED> (1) In general.--An emission allowance shall not
be a property right.</DELETED>
<DELETED> (2) Termination or limitation.--Nothing in this
Act or any other provision of law limits the authority of the
United States to terminate or limit an emission
allowance.</DELETED>
<DELETED> (3) Other provisions unaffected.--Nothing in this
Act relating to emission allowances shall affect the
application of, or compliance with, any other provision of law
to or by a covered facility.</DELETED>
<DELETED> (d) Allowances for Each Calendar Year.--The numbers of
emission allowances established by the Administrator for each of
calendar years 2012 through 2050 shall be as follows:</DELETED>
----------------------------------------------------------------------------------------------------------------
Number of Emission Allowances (in
Calendar Year Millions)
----------------------------------------------------------------------------------------------------------------
2012 5,200
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2013 5,104
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2014 5,008
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2015 4,912
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2016 4,816
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2017 4,720
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2018 4,624
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2019 4,528
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2020 4,432
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2021 4,336
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2022 4,240
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2023 4,144
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2024 4,048
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2025 3,952
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2026 3,856
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2027 3,760
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2028 3,664
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2029 3,568
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2030 3,472
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2031 3,376
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2032 3,280
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2033 3,184
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2034 3,088
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2035 2,992
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2036 2,896
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2037 2,800
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2038 2.704
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2039 2,608
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2040 2,512
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2041 2,416
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2042 2,320
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2043 2,224
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2044 2,128
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2045 2,032
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2046 1,936
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2047 1,840
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2048 1,744
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2049 1,646
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2050 1,560
----------------------------------------------------------------------------------------------------------------
<DELETED>SEC. 1202. COMPLIANCE OBLIGATION.</DELETED>
<DELETED> (a) In General.--Not later than 90 days after the end of a
calendar year, the owner or operator of a covered facility shall submit
to the Administrator an emission allowance, an offset allowance awarded
pursuant to subtitle D of title II, or an international allowance or
credit obtained in compliance with regulations promulgated under
section 2502, for each carbon dioxide equivalent of greenhouse gas
that--</DELETED>
<DELETED> (1) was emitted by that facility during the
preceding year;</DELETED>
<DELETED> (2) will, assuming no capture and permanent
geological sequestration of that gas, be emitted from the use
of any petroleum- or coal-based transportation fuel that was
produced or imported at that facility during the preceding
year; and</DELETED>
<DELETED> (3) will, assuming no capture and destruction or
permanent geological sequestration of that gas, be emitted from
any nonfuel chemical that was produced or imported at that
facility during the preceding year.</DELETED>
<DELETED> (b) Retirement of Allowances.--Immediately upon receipt of
an emission allowance under subsection (a), the Administrator shall
retire the emission allowance.</DELETED>
<DELETED> (c) Determination of Compliance.--Not later than July 1 of
each year, the Administrator shall determine whether the owners and
operators of all covered facilities are in full compliance with
subsection (a) for the preceding year.</DELETED>
<DELETED>SEC. 1203. PENALTY FOR NONCOMPLIANCE.</DELETED>
<DELETED> (a) Excess Emissions Penalty.--</DELETED>
<DELETED> (1) In general.--The owner or operator of any
covered facility that fails for any year to submit to the
Administrator by the deadline described in section 1202(a) or
2303, 1 or more of the emission allowances due pursuant to
either of those sections shall be liable for the payment to the
Administrator of an excess emissions penalty.</DELETED>
<DELETED> (2) Amount.--The amount of an excess emissions
penalty required to be paid under paragraph (1) shall be, as
determined by the Administrator, an amount equal to the product
obtained by multiplying--</DELETED>
<DELETED> (A) the number of excess emission
allowances that the owner or operator failed to submit;
and</DELETED>
<DELETED> (B) the greater of--</DELETED>
<DELETED> (i) $200; or</DELETED>
<DELETED> (ii) a dollar figure representing
3 times the mean market value of an emission
allowance during the calendar year for which
the emission allowances were due.</DELETED>
<DELETED> (3) Timing.--An excess emissions penalty required
under this subsection shall be immediately due and payable to
the Administrator, without demand, in accordance with such
regulations as shall be promulgated by the Administrator by the
date that is 1 year after the date of enactment of this
Act.</DELETED>
<DELETED> (4) Deposit.--The Administrator shall deposit each
excess emissions penalty paid under this subsection in the
Treasury of the United States.</DELETED>
<DELETED> (5) No effect on liability.--An excess emissions
penalty due and payable by the owner or operator of a covered
facility under this subsection shall not diminish the liability
of the owner or operator for any fine, penalty, or assessment
against the owner or operator for the same violation under any
other provision of this Act or any other law.</DELETED>
<DELETED> (b) Excess Emission Allowance.--</DELETED>
<DELETED> (1) In general.--The owner or operator of a
covered facility that fails for any year to submit to the
Administrator by the deadline described in section 1202(a) or
2303 1 or more of the emission allowances due pursuant to
either of those sections shall be liable to offset the excess
emissions by an equal quantity, in tons, during--</DELETED>
<DELETED> (A) the following calendar year;
or</DELETED>
<DELETED> (B) such longer period as the
Administrator may prescribe.</DELETED>
<DELETED> (2) Plan.--</DELETED>
<DELETED> (A) In general.--Not later than 60 days
after the end of the calendar year during which a
covered facility emits excess emissions, the owner or
operator of the covered facility shall submit to the
Administrator, and to the State in which the covered
facility is located, a proposed plan to achieve the
required offsets for the excess emissions.</DELETED>
<DELETED> (B) Condition of operation.--Upon approval
of a proposed plan described in subparagraph (A) by the
Administrator, the plan, as submitted, modified, or
conditioned, shall be considered to be a condition of
the operating permit for the covered facility, without
further review or revision of the permit.</DELETED>
<DELETED> (C) Deduction of allowances.--For each
covered facility that, in any calendar year, emits
excess emissions, the Administrator shall deduct, from
emission allowances allocated to the covered facility
for the calendar year, or for succeeding years during
which offsets are required, emission allowances equal
to the excess quantity, in tons, of the excess
emissions.</DELETED>
<DELETED> (c) Prohibition.--It shall be unlawful for the owner or
operator of any facility liable for a penalty and offset under this
section to fail--</DELETED>
<DELETED> (1) to pay the penalty in accordance with this
section;</DELETED>
<DELETED> (2) to provide, and thereafter comply with, a
proposed plan for compliance as required by subsection (b)(2);
and</DELETED>
<DELETED> (3) to offset excess emissions as required by
subsection (b)(1).</DELETED>
<DELETED> (d) No Effect on Other Section.--Nothing in this subtitle
limits or otherwise affects the application of section
9003(b).</DELETED>
<DELETED>TITLE II--MANAGING AND CONTAINING COSTS EFFICIENTLY</DELETED>
<DELETED>Subtitle A--Trading</DELETED>
<DELETED>SEC. 2101. SALE, EXCHANGE, AND RETIREMENT OF EMISSION
ALLOWANCES.</DELETED>
<DELETED> Except as otherwise provided in this Act, the lawful
holder of an emission allowance may sell, exchange, transfer, submit
for compliance in accordance with section 1202, or retire the emission
allowance.</DELETED>
<DELETED>SEC. 2102. NO RESTRICTION ON TRANSACTIONS.</DELETED>
<DELETED> The privilege of purchasing, holding, selling, exchanging,
and retiring emission allowances shall not be restricted to the owners
and operators of covered facilities.</DELETED>
<DELETED>SEC. 2103. ALLOWANCE TRANSFER SYSTEM.</DELETED>
<DELETED> (a) In General.--Not later than 18 months after the date
of enactment of this Act, the Administrator shall promulgate
regulations to carry out the provisions of this Act relating to
emission allowances, including regulations providing that the transfer
of emission allowances shall not be effective until such date as a
written certification of the transfer, signed by a responsible official
of each party to the transfer, is received and recorded by the
Administrator in accordance with those regulations.</DELETED>
<DELETED> (b) Transfers.--</DELETED>
<DELETED> (1) In general.--The regulations promulgated under
subsection (a) shall permit the transfer of allowances prior to
the issuance of the allowances.</DELETED>
<DELETED> (2) Deduction and addition of transfers.--A
recorded pre-allocation transfer of allowances shall be--
</DELETED>
<DELETED> (A) deducted by the Administrator from the
number of allowances that would otherwise be
distributed to the transferor; and</DELETED>
<DELETED> (B) added to those allowances distributed
to the transferee.</DELETED>
<DELETED>SEC. 2104. ALLOWANCE TRACKING SYSTEM.</DELETED>
<DELETED> The regulations promulgated under section 2103(a) shall
include a system for issuing, recording, and tracking emission
allowances that shall specify all necessary procedures and requirements
for an orderly and competitive functioning of the emission allowance
system.</DELETED>
<DELETED>Subtitle B--Banking</DELETED>
<DELETED>SEC. 2201. INDICATION OF CALENDAR YEAR.</DELETED>
<DELETED> An emission allowance submitted to the Administrator by
the owner or operator of a covered facility in accordance with section
1202(a) shall not be required to indicate in the identification number
of the emission allowance the calendar year for which the emission
allowance is submitted.</DELETED>
<DELETED>SEC. 2202. EFFECT OF TIME.</DELETED>
<DELETED> The passage of time shall not, by itself, cause an
emission allowance to be retired or otherwise diminish the compliance
value of the emission allowance.</DELETED>
<DELETED>Subtitle C--Borrowing</DELETED>
<DELETED>SEC. 2301. REGULATIONS.</DELETED>
<DELETED> (a) In General.--Not later than 3 years after the date of
enactment of this Act, the Administrator shall promulgate regulations
under which, subject to subsection (b), the owner or operator of a
covered facility may--</DELETED>
<DELETED> (1) borrow emission allowances from the
Administrator; and</DELETED>
<DELETED> (2) for a calendar year, submit borrowed emission
allowances to the Administrator in satisfaction of up to 15
percent of the compliance obligation under section
1202(a).</DELETED>
<DELETED> (b) Limitation.--An emission allowance borrowed under
subsection (a) shall be an emission allowance established by the
Administrator for a specific future calendar year under subsection
1201(a).</DELETED>
<DELETED>SEC. 2302. TERM.</DELETED>
<DELETED> The owner or operator of a covered facility shall not
submit, and the Administrator shall not accept, a borrowed emission
allowance in partial satisfaction of the compliance obligation under
section 1202(a) for any calendar year that is more than 5 years earlier
than the calendar year included in the identification number of the
borrowed emission allowance.</DELETED>
<DELETED>SEC. 2303. REPAYMENT WITH INTEREST.</DELETED>
<DELETED> For each borrowed emission allowance submitted in partial
satisfaction of the compliance obligation under subsection 1202(a) for
a particular calendar year (referred to in this section as the ``use
year''), the number of emission allowances that the owner or operator
is required to submit under section 1202(a) for the year from which the
borrowed emission allowance was taken (referred to in this section as
the ``source year'') shall be increased by an amount equal to the
product obtained by multiplying--</DELETED>
<DELETED> (1) 1.1; and</DELETED>
<DELETED> (2) the number of years beginning after the use
year and before the source year.</DELETED>
<DELETED>Subtitle D--Offsets</DELETED>
<DELETED>SEC. 2401. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR
AGRICULTURAL PRODUCERS.</DELETED>
<DELETED> (a) Establishment.--The Secretary of Agriculture, acting
through the Chief of the Natural Resources Conservation Service, the
Chief of the Forest Service, the Administrator of the Cooperative State
Research, Education, and Extension Service, and land-grant colleges and
universities, in consultation with the Administrator and the heads of
other appropriate departments and agencies, shall establish an outreach
initiative to provide information to agricultural producers,
agricultural organizations, foresters, and other landowners about
opportunities under this subtitle to earn new revenue.</DELETED>
<DELETED> (b) Components.--The initiative under this section--
</DELETED>
<DELETED> (1) shall be designed to ensure that, to the
maximum extent practicable, agricultural organizations and
individual agricultural producers, foresters, and other
landowners receive detailed practical information about--
</DELETED>
<DELETED> (A) opportunities to earn new revenue
under this subtitle;</DELETED>
<DELETED> (B) measurement protocols, monitoring,
verifying, inventorying, registering, insuring, and
marketing offsets under this title;</DELETED>
<DELETED> (C) emerging domestic and international
markets for energy crops, allowances, and offsets;
and</DELETED>
<DELETED> (D) local, regional, and national
databases and aggregation networks to facilitate
achievement, measurement, registration, and sales of
offsets;</DELETED>
<DELETED> (2) shall provide--</DELETED>
<DELETED> (A) outreach materials, including the
handbook published under subsection (c), to interested
parties;</DELETED>
<DELETED> (B) workshops; and</DELETED>
<DELETED> (C) technical assistance; and</DELETED>
<DELETED> (3) may include the creation and development of
regional marketing centers or coordination with existing
centers (including centers within the Natural Resources
Conservation Service or the Cooperative State Research,
Education, and Extension Service or at land-grant colleges and
universities).</DELETED>
<DELETED> (c) Handbook.--</DELETED>
<DELETED> (1) In general.--Not later than 2 years after the
date of enactment of this Act, the Secretary of Agriculture, in
consultation with the Administrator and after an opportunity
for public comment, shall publish a handbook for use by
agricultural producers, agricultural cooperatives, foresters,
other landowners, offset buyers, and other stakeholders that
provides easy-to-use guidance on achieving, reporting,
registering, and marketing offsets.</DELETED>
<DELETED> (2) Distribution.--The Secretary of Agriculture
shall ensure, to the maximum extent practicable, that the
handbook--</DELETED>
<DELETED> (A) is made available through the Internet
and in other electronic media;</DELETED>
<DELETED> (B) includes, with respect to the
electronic form of the handbook described in
subparagraph (A), electronic forms and calculation
tools to facilitate the petition process described in
section 2404; and</DELETED>
<DELETED> (C) is distributed widely through land-
grant colleges and universities and other appropriate
institutions.</DELETED>
<DELETED>SEC. 2402. ESTABLISHMENT OF DOMESTIC OFFSET PROGRAM.</DELETED>
<DELETED> (a) Alternative Means of Compliance.--Beginning with
calendar year 2012, the owner or operator of a covered entity may
satisfy 15 percent of the total allowance submission requirement of the
covered entity under section 1202(a) by submitting offset allowances
generated in accordance with this subtitle.</DELETED>
<DELETED> (b) Regulations Required.--Not later than 18 months after
the date of enactment of this Act, the Administrator, in consultation
with the Secretary of Agriculture, shall promulgate regulations
authorizing the issuance and certification of offset allowances from
certain agricultural, forestry, and other land use-related projects
undertaken within the United States, and certain other projects
identified by the Administrator under section 2403(b)(4), including
provisions that--</DELETED>
<DELETED> (1) ensure that those offsets represent real,
verifiable, additional, permanent, and enforceable reductions
in greenhouse gas emissions or increases in biological
sequestration;</DELETED>
<DELETED> (2) specify the types of offset projects eligible
to generate offset allowances, in accordance with section
2403;</DELETED>
<DELETED> (3) establish procedures for project initiation
and approval, in accordance with section 2404;</DELETED>
<DELETED> (4) establish procedures to monitor, quantify, and
discount reductions in greenhouse gas emissions or increases in
biological sequestration, in accordance with subsections (d)
through (g) of section 2404;</DELETED>
<DELETED> (5) establish procedures for verification,
registration, and issuance of offset allowances, in accordance
with section 2405; and</DELETED>
<DELETED> (6) ensure permanence of offsets by mitigating and
compensating for reversals, in accordance with section
2406.</DELETED>
<DELETED> (c) Offset Allowances Awarded.--The Administrator shall
issue offset allowances for qualifying emission reductions and
biological sequestrations from offset projects that satisfy the
applicable requirements of this subtitle.</DELETED>
<DELETED> (d) Ownership.--Initial ownership of an offset allowance
shall lie with a project developer, unless otherwise specified in a
legally-binding contract or agreement.</DELETED>
<DELETED> (e) Transferability.--An offset allowance generated
pursuant to this subtitle may be sold, traded, or transferred, on the
conditions that--</DELETED>
<DELETED> (1) the offset allowance has not expired or been
retired or canceled; and</DELETED>
<DELETED> (2) liability and responsibility for mitigating
and compensating for reversals of registered offset allowances
is specified in accordance with section 2406(b).</DELETED>
<DELETED>SEC. 2403. ELIGIBLE AGRICULTURAL AND FORESTRY OFFSET PROJECT
TYPES.</DELETED>
<DELETED> (a) In General.--Offset allowances from agricultural,
forestry, and other land use-related projects shall be limited to those
allowances achieving an offset of 1 or more greenhouse gases by a
method other than a reduction of combustion of greenhouse gas-emitting
fuel.</DELETED>
<DELETED> (b) Categories of Eligible Agricultural, Forestry, and
Other Land Use-Related Projects.--Subject to the requirements
promulgated pursuant to section 2402(b), the types of operations
eligible to generate offset allowances under this subtitle include--
</DELETED>
<DELETED> (1) agricultural and rangeland sequestration and
management practices, including--</DELETED>
<DELETED> (A) altered tillage practices;</DELETED>
<DELETED> (B) winter cover cropping, continuous
cropping, and other means to increase biomass returned
to soil in lieu of planting followed by
fallowing;</DELETED>
<DELETED> (C) conversion of cropland to rangeland or
grassland, on the condition that the land has been in
nonforest use for at least 10 years before the date of
initiation of the project;</DELETED>
<DELETED> (D) reduction of nitrogen fertilizer use
or increase in nitrogen use efficiency;</DELETED>
<DELETED> (E) reduction in the frequency and
duration of flooding of rice paddies; and</DELETED>
<DELETED> (F) reduction in carbon emissions from
organic soils;</DELETED>
<DELETED> (2) changes in carbon stocks attributed to land
use change and forestry activities limited to--</DELETED>
<DELETED> (A) afforestation or reforestation of
acreage not forested as of the date of enactment of
this Act; and</DELETED>
<DELETED> (B) forest management resulting in an
increase in forest stand volume;</DELETED>
<DELETED> (3) manure management and disposal, including--
</DELETED>
<DELETED> (A) waste aeration; and</DELETED>
<DELETED> (B) methane capture and
combustion;</DELETED>
<DELETED> (4) subject to the requirements of this subtitle,
any other terrestrial offset practices identified by the
Administrator, including--</DELETED>
<DELETED> (A) the capture or reduction of noncovered
fugitive emissions;</DELETED>
<DELETED> (B) methane capture and combustion at
nonagricultural facilities; and</DELETED>
<DELETED> (C) other actions that result in the
avoidance or reduction of greenhouse gas emissions in
accordance with section 2402; and</DELETED>
<DELETED> (5) combinations of any of the offset practices
described in paragraphs (1) through (4).</DELETED>
<DELETED> (c) Exclusion.--A project participating in a Federal,
State, or local cost-sharing, competitive grant, or technical
assistance program shall not be eligible to generate offset allowances
under this subtitle.</DELETED>
<DELETED> (d) Earned Allowances.--</DELETED>
<DELETED> (1) In general.--Any project approved by the
Administrator shall earn offset allowances in proportion to the
private investment in the project, as described in paragraph
(2).</DELETED>
<DELETED> (2) Private investment.--</DELETED>
<DELETED> (A) In general.--Except as provided in
subparagraph (B), the private share of investment in
the project shall be assumed to be 50
percent.</DELETED>
<DELETED> (B) Demonstration of investment.--
Subparagraph (A) shall not apply in any case in which a
project elects to demonstrate the private share of
investment in the project in accordance with rules
established by the Administrator.</DELETED>
<DELETED>SEC. 2404. PROJECT INITIATION AND APPROVAL.</DELETED>
<DELETED> (a) Project Approval.--A project developer--</DELETED>
<DELETED> (1) may submit a petition for offset project
approval at any time following the effective date of
regulations promulgated under section 2402(b); but</DELETED>
<DELETED> (2) may not register or issue offset allowances
until such approval is received and until after the emission
reductions or sequestrations supporting the offset allowances
have actually occurred.</DELETED>
<DELETED> (b) Petition Process.--Prior to offset registration and
issuance of offset allowances, a project developer shall submit a
petition to the Administrator, consisting of--</DELETED>
<DELETED> (1) a copy of the monitoring and quantification
plan prepared for the offset project, as described under
subsection (d);</DELETED>
<DELETED> (2) a greenhouse gas initiation certification, as
described under subsection (e); and</DELETED>
<DELETED> (3) subject to the requirements of this subtitle,
any other information identified by the Administrator as
necessary to meet the objectives of this subtitle.</DELETED>
<DELETED> (c) Approval and Notification.--</DELETED>
<DELETED> (1) In general.--Not later than 180 days after the
date on which the Administrator receives a complete petition
under subsection (b), the Administrator shall--</DELETED>
<DELETED> (A) determine whether the monitoring and
quantification plan satisfies the applicable
requirements of this subtitle;</DELETED>
<DELETED> (B) determine whether the greenhouse gas
initiation certification indicates a significant
deviation in accordance with subsection
(e)(3);</DELETED>
<DELETED> (C) notify the project developer of the
determinations under subparagraphs (A) and (B);
and</DELETED>
<DELETED> (D) issue offset allowances for approved
projects.</DELETED>
<DELETED> (2) Appeal.--The Administrator shall establish
mechanisms for appeal and review of determinations made under
this subsection.</DELETED>
<DELETED> (d) Monitoring and Quantification.--</DELETED>
<DELETED> (1) In general.--A project developer shall make
use of the standardized tools and methods described in this
section to monitor, quantify, and discount reductions in
greenhouse gas emissions or increases in
sequestration.</DELETED>
<DELETED> (2) Monitoring and quantification plan.--A
monitoring and quantification plan shall be used to monitor,
quantify, and discount reductions in greenhouse gas emissions
or increases in sequestration as described by this
subsection.</DELETED>
<DELETED> (3) Plan completion and retention.--A monitoring
and quantification plan shall be--</DELETED>
<DELETED> (A) completed for all offset projects
prior to offset project initiation; and</DELETED>
<DELETED> (B) retained by the project developer for
the duration of the offset project.</DELETED>
<DELETED> (4) Plan requirements.--Subject to section 2402,
the Administrator shall specify the required components of a
monitoring and quantification plan, including--</DELETED>
<DELETED> (A) a description of the offset project,
including project type;</DELETED>
<DELETED> (B) a determination of accounting
periods;</DELETED>
<DELETED> (C) an assignment of reporting
responsibility;</DELETED>
<DELETED> (D) the contents and timing of public
reports, including summaries of the original data, as
well as the results of any analyses;</DELETED>
<DELETED> (E) a delineation of project boundaries,
based on methods and formats determined to be
acceptable to the Administrator;</DELETED>
<DELETED> (F) a description of which of the
monitoring and quantification tools developed under
subsection (f) are to be used to monitor and quantify
changes in greenhouse gas fluxes or carbon stocks
associated with a project;</DELETED>
<DELETED> (G) a description of which of the
standardized methods developed under subsection (g) to
be used to determine additionality, estimate the
baseline carbon, and discount for leakage;</DELETED>
<DELETED> (H) based on the standardized methods
chosen in subparagraphs (F) and (G), a determination of
uncertainty in accordance with subsection
(h);</DELETED>
<DELETED> (I) what site-specific data, if any, will
be used in monitoring, quantification, and the
determination of discounts;</DELETED>
<DELETED> (J) a description of procedures for use in
managing and storing data, including quality-control
standards and methods, such as redundancy in case
records are lost; and</DELETED>
<DELETED> (K) subject to the requirements of this
subtitle, any other information identified by the
Administrator as being necessary to meet the objectives
of this subtitle.</DELETED>
<DELETED> (e) Greenhouse Gas Initiation Certification.--</DELETED>
<DELETED> (1) In general.--In reviewing a petition submitted
under subsection (b), the Administrator shall seek to exclude
each activity that undermines the integrity of the offset
program established under this subtitle, such as the conversion
or clearing of land, or marked change in management regime, in
anticipation of offset project initiation.</DELETED>
<DELETED> (2) Greenhouse gas initiation certification
requirements.--A greenhouse gas initiation certification
developed under this subsection shall include--</DELETED>
<DELETED> (A) the estimated greenhouse gas flux or
carbon stock for the offset project for each of the 4
complete calendar years preceding the effective date of
the regulations promulgated under section 2402(b);
and</DELETED>
<DELETED> (B) the estimated greenhouse gas flux or
carbon stock for the offset project, averaged across
each of the 4 calendar years preceding the effective
date of the regulations promulgated under section
2402(b).</DELETED>
<DELETED> (3) Determination of significant deviation.--Based
on standards developed by the Administrator--</DELETED>
<DELETED> (A) each greenhouse gas initiation
certification submitted pursuant to this section shall
be reviewed; and</DELETED>
<DELETED> (B) a determination shall be made as to
whether, as a result of activities or behavior
inconsistent with the purposes of this title, a
significant deviation exists between the average annual
greenhouse gas flux or carbon stock and the greenhouse
gas flux or carbon stock for a given year.</DELETED>
<DELETED> (f) Development of Monitoring and Quantification Tools for
Agricultural and Forestry Projects.--</DELETED>
<DELETED> (1) In general.--Subject to section 2402(b), the
Administrator, in consultation with the Secretary of
Agriculture, shall develop standardized tools for use in the
monitoring and quantification of changes in greenhouse gas
fluxes or carbon stocks for each offset project type listed
under section 2403(b).</DELETED>
<DELETED> (2) Tool development.--The tools used to monitor
and quantify changes in greenhouse gas fluxes or carbon stocks
shall, for each project type, include applicable--</DELETED>
<DELETED> (A) statistically-sound field and remote
sensing sampling methods, procedures, techniques,
protocols, or programs;</DELETED>
<DELETED> (B) models, factors, equations, or look-up
tables; and</DELETED>
<DELETED> (C) any other process or tool considered
to be acceptable by the Administrator, in consultation
with the Secretary of Agriculture.</DELETED>
<DELETED> (g) Development of Accounting and Discounting Methods.--
</DELETED>
<DELETED> (1) In general.--The Administrator, in
consultation with the Secretary of Agriculture, shall--
</DELETED>
<DELETED> (A) develop standardized methods for use
in accounting for additionality and uncertainty,
estimating the baseline, and discounting for leakage
for each offset project type listed under section
2403(b); and</DELETED>
<DELETED> (B) require that leakage be subtracted
from reductions in greenhouse gas emissions or
increases in sequestration attributable to a
project.</DELETED>
<DELETED> (2) Additionality determination and baseline
estimation.--The standardized methods used to determine
additionality and establish baselines shall, for each project
type, at a minimum--</DELETED>
<DELETED> (A) in the case of a sequestration
project, determine the greenhouse gas flux and carbon
stock on comparable land identified on the basis of--
</DELETED>
<DELETED> (i) similarity in current
management practices;</DELETED>
<DELETED> (ii) similarity of regional,
State, or local policies or programs;
and</DELETED>
<DELETED> (iii) similarity in geographical
and biophysical characteristics;</DELETED>
<DELETED> (B) in the case of an emission reduction
project, use as a basis emissions from preexisting or
comparable facilities; and</DELETED>
<DELETED> (C) in the case of a sequestration project
or emission reduction project, specify a selected time
period.</DELETED>
<DELETED> (3) Leakage.--The standardized methods used to
determine and discount for leakage shall, at a minimum, take
into consideration--</DELETED>
<DELETED> (A) the scope of the offset system in
terms of activities and geography covered;</DELETED>
<DELETED> (B) the markets relevant to the offset
project;</DELETED>
<DELETED> (C) emission intensity per unit of
production, both inside and outside of the offset
project; and</DELETED>
<DELETED> (D) a time period sufficient in length to
yield a stable leakage rate.</DELETED>
<DELETED> (h) Uncertainty for Agricultural and Forestry Projects.--
</DELETED>
<DELETED> (1) In general.--The Administrator, in
consultation with the Secretary of Agriculture, shall develop
standardized methods for use in determining and discounting for
uncertainty for each offset project type listed under section
2403(b).</DELETED>
<DELETED> (2) Basis.--The standardized methods used to
determine and discount for uncertainty shall be based on--
</DELETED>
<DELETED> (A) the robustness and rigor of the
methods used by a project developer to monitor and
quantify changes in greenhouse gas fluxes or carbon
stocks;</DELETED>
<DELETED> (B) the robustness and rigor of methods
used by a project developer to determine additionality
and leakage; and</DELETED>
<DELETED> (C) an exaggerated proportional discount
that increases relative to uncertainty, as determined
by the Administrator, to encourage better measurement
and accounting.</DELETED>
<DELETED> (i) Acquisition of New Data and Review of Methods for
Agricultural and Forestry Projects.--The Administrator, in consultation
with the Secretary of Agriculture, shall--</DELETED>
<DELETED> (1) establish a comprehensive field sampling
program to improve the scientific bases on which the
standardized tools and methods developed under this section are
based; and</DELETED>
<DELETED> (2) review and revise the standardized tools and
methods developed under this section, based on--</DELETED>
<DELETED> (A) validation of existing methods,
protocols, procedures, techniques, factors, equations,
or models;</DELETED>
<DELETED> (B) development of new methods, protocols,
procedures, techniques, factors, equations, or
models;</DELETED>
<DELETED> (C) increased availability of field data
or other datasets; and</DELETED>
<DELETED> (D) any other information identified by
the Administrator, in consultation with the Secretary
of Agriculture, that is necessary to meet the
objectives of this subtitle.</DELETED>
<DELETED> (j) Exclusion.--No activity for which any emission
allowances are received under subtitle G of title III shall generate
offset allowances under this subtitle.</DELETED>
<DELETED>SEC. 2405. OFFSET VERIFICATION AND ISSUANCE OF ALLOWANCES FOR
AGRICULTURAL AND FORESTRY PROJECTS.</DELETED>
<DELETED> (a) In General.--Offset allowances may be claimed for net
emission reductions or increases in sequestration annually, after
accounting for any necessary discounts in accordance with section 2404,
by submitting a verification report for an offset project to the
Administrator.</DELETED>
<DELETED> (b) Offset Verification.--</DELETED>
<DELETED> (1) Scope of verification.--A verification report
for an offset project shall--</DELETED>
<DELETED> (A) be completed by a verifier accredited
in accordance with paragraph (3); and</DELETED>
<DELETED> (B) shall be developed taking into
consideration--</DELETED>
<DELETED> (i) the information and
methodology contained within a monitoring and
quantification plan;</DELETED>
<DELETED> (ii) data and subsequent analysis
of the offset project, including--</DELETED>
<DELETED> (I) quantification of net
emission reductions or increases in
sequestration;</DELETED>
<DELETED> (II) determination of
additionality;</DELETED>
<DELETED> (III) calculation of
leakage;</DELETED>
<DELETED> (IV) assessment of
permanence;</DELETED>
<DELETED> (V) discounting for
uncertainty; and</DELETED>
<DELETED> (VI) the adjustment of net
emission reductions or increases in
sequestration by the discounts
determined under clauses (II) through
(V); and</DELETED>
<DELETED> (iii) subject to the requirements
of this subtitle, any other information
identified by the Administrator as being
necessary to achieve the purposes of this
subtitle.</DELETED>
<DELETED> (2) Verification report requirements.--The
Administrator shall specify the required components of a
verification report, including--</DELETED>
<DELETED> (A) the quantity of offsets
generated;</DELETED>
<DELETED> (B) the amount of discounts
applied;</DELETED>
<DELETED> (C) an assessment of methods (and the
appropriateness of those methods);</DELETED>
<DELETED> (D) an assessment of quantitative errors
or omissions (and the effect of the errors or omissions
on offsets);</DELETED>
<DELETED> (E) any potential conflicts of interest
between a verifier and project developer; and</DELETED>
<DELETED> (F) any other provision that the
Administrator considers to be necessary to achieve the
purposes of this subtitle.</DELETED>
<DELETED> (3) Verifier accreditation.--</DELETED>
<DELETED> (A) In general.--Not later than 18 months
after the date of enactment of this Act, the
Administrator shall promulgate regulations establishing
a process and requirements for accreditation by a
third-party verifier that has no conflicts of
interest.</DELETED>
<DELETED> (B) Public accessibility.--Each verifier
meeting the requirements for accreditation in
accordance with this paragraph shall be listed in a
publicly-accessible database, which shall be maintained
and updated by the Administrator.</DELETED>
<DELETED> (c) Registration and Awarding of Offsets.--</DELETED>
<DELETED> (1) In general.--Not later than 90 days after the
date on which the Administrator receives a complete petition
required under section 2404(b), the Administrator shall--
</DELETED>
<DELETED> (A) determine whether the offsets satisfy
the applicable requirements of this subtitle;
and</DELETED>
<DELETED> (B) notify the project developer of that
determination.</DELETED>
<DELETED> (2) Affirmative determination.--In the case of an
affirmative determination under paragraph (1), the
Administrator shall--</DELETED>
<DELETED> (A) register the offset allowances in
accordance with this subtitle; and</DELETED>
<DELETED> (B) issue the offset allowances.</DELETED>
<DELETED> (3) Appeal and review.--The Administrator shall
establish mechanisms for the appeal and review of
determinations made under this subsection.</DELETED>
<DELETED>SEC. 2406. TRACKING OF REVERSALS FOR SEQUESTRATION
PROJECTS.</DELETED>
<DELETED> (a) Reversal Certification.--</DELETED>
<DELETED> (1) In general.--Subject to section 2402, the
Administrator shall promulgate regulations requiring the
submission of a reversal certification for each offset project
on an annual basis following the registration of offset
allowances.</DELETED>
<DELETED> (2) Requirements.--A reversal certification
submitted in accordance with this subsection shall state--
</DELETED>
<DELETED> (A) whether any unmitigated reversal
relating to the offset project has occurred in the year
preceding the year in which the certification is
submitted; and</DELETED>
<DELETED> (B) the quantity of each unmitigated
reversal.</DELETED>
<DELETED> (b) Effect on Offset Allowances.--</DELETED>
<DELETED> (1) Invalidity.--The Administrator shall declare
invalid all offset allowances issued for any offset project
that has undergone a complete reversal.</DELETED>
<DELETED> (2) Partial reversal.--In the case of an offset
project that has undergone a partial reversal, the
Administrator shall render invalid offset allowances issued for
the offset project in direct proportion to the degree of
reversal.</DELETED>
<DELETED> (c) Accountability for Reversals.--Liability and
responsibility for compensation of a reversal of a registered offset
allowance under subsection (a) shall lie with the person that submitted
the offset allowance to the Administrator for the purpose of compliance
with section 1202(a), unless otherwise specified in a legally-binding
contract or agreement.</DELETED>
<DELETED> (d) Compensation for Reversals.--The unmitigated reversal
of 1 or more registered offset allowances shall require the submission
of--</DELETED>
<DELETED> (1) an equal number of offset allowances;
or</DELETED>
<DELETED> (2) a combination of offset allowances and
emission allowances equal to the unmitigated
reversal.</DELETED>
<DELETED> (e) Adjustment of Baseline.--</DELETED>
<DELETED> (1) In general.--If the Administrator determines
that, as a result of activities or behavior that is
inconsistent with the purposes of this subtitle, a significant
deviation exists between the average annual greenhouse gas flux
or carbon stock for a given year pursuant to the certification
submitted under subsection (a), the baseline for that project
shall be adjusted by a quantity equal to the difference
between--</DELETED>
<DELETED> (A) the estimated greenhouse gas flux or
carbon stock at the end of the year prior to the year
in which the significant deviation occurred;
and</DELETED>
<DELETED> (B) the estimated greenhouse gas flux or
carbon stock at the end of the year in which the
significant deviation occurred.</DELETED>
<DELETED> (2) Project termination.--A project developer may
cease participation in the domestic offset program established
under this subtitle at any time, on the condition that any
registered allowances awarded for increases in sequestration
have been compensated for by the project developer through the
submission of an equal number of offset allowances.</DELETED>
<DELETED>SEC. 2407. EXAMINATIONS.</DELETED>
<DELETED> (a) Regulations.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall promulgate regulations
governing the examination and auditing of offset allowances.</DELETED>
<DELETED> (b) Requirements.--The regulations promulgated under this
section shall specifically consider--</DELETED>
<DELETED> (1) principles for initiating and conducting
examinations;</DELETED>
<DELETED> (2) the type or scope of examinations, including--
</DELETED>
<DELETED> (A) reporting and recordkeeping;
and</DELETED>
<DELETED> (B) site review or visitation;</DELETED>
<DELETED> (3) the rights and privileges of an examined
party; and</DELETED>
<DELETED> (4) the establishment of an appeal
process.</DELETED>
<DELETED>SEC. 2408. TIMING AND THE PROVISION OF OFFSET
ALLOWANCES.</DELETED>
<DELETED> (a) Initiation of Offset Projects.--An offset project that
commences operation on or after the effective date of regulations
promulgated under section 2407(a) shall be eligible to generate offset
allowances under this subtitle if the offset project meets the other
applicable requirements of this subtitle.</DELETED>
<DELETED> (b) Pre-Existing Projects.--</DELETED>
<DELETED> (1) In general.--The Administrator may allow for
the transition into the Registry of offset projects and banked
offset allowances operating under other Federal, State, or
private reporting programs or registries as of the effective
date of regulations promulgated under section 2407(a) if the
Administrator determines that the offset projects and banked
offset allowances satisfy the applicable requirements of this
subtitle.</DELETED>
<DELETED> (2) Exception.--An offset allowance that is
expired, retired, or canceled under any other offset program,
registry, or market as of the effective date of regulations
promulgated under section 2407(a) shall be ineligible for
transition into the Registry.</DELETED>
<DELETED>SEC. 2409. OFFSET REGISTRY.</DELETED>
<DELETED> In addition to the requirements established by section
2404, an offset allowance registered under this subtitle shall be
accompanied in the Registry by--</DELETED>
<DELETED> (1) a verification report submitted pursuant to
section 2405(a);</DELETED>
<DELETED> (2) a reversal certification submitted pursuant to
section 2406(b); and</DELETED>
<DELETED> (3) subject to the requirements of this subtitle,
any other information identified by the Administrator as being
necessary to achieve the purposes of this subtitle.</DELETED>
<DELETED>SEC. 2410. ENVIRONMENTAL CONSIDERATIONS.</DELETED>
<DELETED> (a) Coordination to Minimize Negative Effects.--In
promulgating regulations under this subtitle, the Administrator, in
consultation with the Secretary of Agriculture, shall act (including by
rejecting projects, if necessary) to avoid or minimize, to the maximum
extent practicable, adverse effects on human health or the environment
resulting from the implementation of offset projects under this
subtitle.</DELETED>
<DELETED> (b) Report on Positive Effects.--Not later than 2 years
after the date of enactment of this Act, the Administrator, in
consultation with the Secretary of Agriculture, shall submit to
Congress a report detailing--</DELETED>
<DELETED> (1) the incentives, programs, or policies capable
of fostering improvements to human health or the environment in
conjunction with the implementation of offset projects under
this subtitle; and</DELETED>
<DELETED> (2) the cost of those incentives, programs, or
policies.</DELETED>
<DELETED> (c) Use of Native Plant Species in Offset Projects.--Not
later than 18 months after the date of enactment of this Act, the
Administrator, in consultation with the Secretary of Agriculture, shall
promulgate regulations for the selection, use, and storage of native
and nonnative plant materials--</DELETED>
<DELETED> (1) to ensure native plant materials are given
primary consideration, in accordance with applicable Department
of Agriculture guidance for use of native plant
materials;</DELETED>
<DELETED> (2) to prohibit the use of Federal- or State-
designated noxious weeds; and</DELETED>
<DELETED> (3) to prohibit the use of a species listed by a
regional or State invasive plant council within the applicable
region or State.</DELETED>
<DELETED>SEC. 2411. PROGRAM REVIEW.</DELETED>
<DELETED> Not later than 5 years after the date of enactment of this
Act, and periodically thereafter, the Administrator shall review and
revise, as necessary, the regulations promulgated under this
subtitle.</DELETED>
<DELETED>Subtitle E--International Credits</DELETED>
<DELETED>SEC. 2501. USE OF INTERNATIONAL ALLOWANCES OR
CREDITS.</DELETED>
<DELETED> The owner or operator of a covered facility may satisfy up
to 15 percent of the allowance submission requirement of the covered
facility under section 1202(a) by submitting allowances or credits
obtained on a foreign greenhouse gas emissions trading market, on the
condition that the Administrator has certified the market in accordance
with the regulations promulgated pursuant to section 2502(a).</DELETED>
<DELETED>SEC. 2502. REGULATIONS.</DELETED>
<DELETED> (a) In General.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall promulgate regulations,
taking into consideration protocols adopted in accordance with the
United Nations Framework Convention on Climate Change, done at New York
on May 9, 1992--</DELETED>
<DELETED> (1) approving the use under this subtitle of
credits from such foreign greenhouse gas emissions trading
markets as the regulations may establish; and</DELETED>
<DELETED> (2) permitting the use of international credits
from the foreign country that issued the credits.</DELETED>
<DELETED> (b) Requirements.--The regulations promulgated under
subsection (a) shall require that, in order to be approved for use
under this subtitle--</DELETED>
<DELETED> (1) a credit shall have been issued by a foreign
country pursuant to a governmental program that imposes
mandatory absolute tonnage limits on greenhouse gas emissions
from the foreign country, or 1 or more industry sectors in that
country, pursuant to protocols described in subsection (a);
and</DELETED>
<DELETED> (2) the governmental program be of comparable
stringency to the program established by this Act, including
comparable monitoring, compliance, and enforcement.</DELETED>
<DELETED>SEC. 2503. FACILITY CERTIFICATION.</DELETED>
<DELETED> The owner or operator of a covered facility who submits an
international allowance or credit under this subtitle shall certify
that the allowance or credit has not been retired from use in the
registry of the applicable foreign country.</DELETED>
<DELETED>Subtitle F--Carbon Market Efficiency Board</DELETED>
<DELETED>SEC. 2601. PURPOSES.</DELETED>
<DELETED> The purposes of this subtitle are--</DELETED>
<DELETED> (1) to ensure that the imposition of limits on
greenhouse gas emissions will not significantly harm the
economy of the United States; and</DELETED>
<DELETED> (2) to establish a Carbon Market Efficiency Board
to ensure the implementation and maintenance of a stable,
functioning, and efficient market in emission
allowances.</DELETED>
<DELETED>SEC. 2602. ESTABLISHMENT OF CARBON MARKET EFFICIENCY
BOARD.</DELETED>
<DELETED> (a) Establishment.--There is established a board, to be
known as the ``Carbon Market Efficiency Board'' (referred to in this
subtitle as the ``Board'').</DELETED>
<DELETED> (b) Purposes.--The purposes of the Board are--</DELETED>
<DELETED> (1) to promote the achievement of the purposes of
this Act;</DELETED>
<DELETED> (2) to observe the national greenhouse gas
emission market and evaluate periods during which the cost of
emission allowances provided under Federal law might pose
significant harm to the economy; and</DELETED>
<DELETED> (3) to submit to the President and Congress
quarterly reports--</DELETED>
<DELETED> (A) describing--</DELETED>
<DELETED> (i) the status of the emission
allowance market established under this
Act;</DELETED>
<DELETED> (ii) the economic effects of the
market, regional, industrial, and consumer
responses to the market;</DELETED>
<DELETED> (iii) where practicable, energy
investment responses to the market;</DELETED>
<DELETED> (iv) any corrective measures that
should be carried out to relieve excessive
costs of the market; and</DELETED>
<DELETED> (v) plans to compensate for those
measures to ensure that the long-term emission-
reduction goals of this Act are
achieved;</DELETED>
<DELETED> (B) that are timely and succinct to ensure
regular monitoring of market trends; and</DELETED>
<DELETED> (C) that are prepared independently by the
Board.</DELETED>
<DELETED> (c) Membership.--</DELETED>
<DELETED> (1) Composition.--The Board shall be composed of 7
members who are citizens of the United States, to be appointed
by the President, by and with the advice and consent of the
Senate.</DELETED>
<DELETED> (2) Requirements.--In appointing members of the
Board under paragraph (1), the President shall--</DELETED>
<DELETED> (A) ensure fair representation of the
financial, agricultural, industrial, and commercial
sectors, and the geographical regions, of the United
States, and include a representative of consumer
interests; and</DELETED>
<DELETED> (B) appoint not more than 1 member from
each such geographical region.</DELETED>
<DELETED> (3) Compensation.--</DELETED>
<DELETED> (A) In general.--A member of the Board
shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed
for level II of the Executive Schedule under section
5313 of title 5, United States Code, for each day
(including travel time) during which the member is
engaged in the performance of the duties of the
Board.</DELETED>
<DELETED> (B) Chairperson.--The Chairperson of the
Board shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed
for level I of the Executive Schedule under section
5312 of title 5, United States Code, for each day
(including travel time) during which the member is
engaged in the performance of the duties of the
Board.</DELETED>
<DELETED> (4) Prohibitions.--</DELETED>
<DELETED> (A) Conflicts of interest.--An individual
employed by, or holding any official relationship
(including any shareholder) with, any entity engaged in
the generation, transmission, distribution, or sale of
energy, an individual who has any pecuniary interest in
the generation, transmission, distribution, or sale of
energy, or an individual who has a pecuniary interest
in the implementation of this Act, shall not be
appointed to the Board under this subsection.</DELETED>
<DELETED> (B) No other employment.--A member of the
Board shall not hold any other employment during the
term of service of the member.</DELETED>
<DELETED> (d) Term; Vacancies.--</DELETED>
<DELETED> (1) Term.--</DELETED>
<DELETED> (A) In general.--The term of a member of
the Board shall be 14 years, except that the members
first appointed to the Board shall be appointed for
terms in a manner that ensures that--</DELETED>
<DELETED> (i) the term of not more than 1
member shall expire during any 2-year period;
and</DELETED>
<DELETED> (ii) no member serves a term of
more than 14 years.</DELETED>
<DELETED> (B) Oath of office.--A member shall take
the oath of office of the Board by not later than 15
days after the date on which the member is appointed
under subsection (c)(1).</DELETED>
<DELETED> (C) Removal.--</DELETED>
<DELETED> (i) In general.--A member may be
removed from the Board on determination of the
President for cause.</DELETED>
<DELETED> (ii) Notification.--The President
shall submit to Congress a notification of any
determination by the President to remove a
member of the Board for cause under clause
(i).</DELETED>
<DELETED> (2) Vacancies.--</DELETED>
<DELETED> (A) In general.--A vacancy on the Board--
</DELETED>
<DELETED> (i) shall not affect the powers of
the Board; and</DELETED>
<DELETED> (ii) shall be filled in the same
manner as the original appointment was
made.</DELETED>
<DELETED> (B) Service until new appointment.--A
member of the Board the term of whom has expired or
otherwise been terminated shall continue to serve until
the date on which a replacement is appointed under
subparagraph (A)(ii), if the President determines that
service to be appropriate.</DELETED>
<DELETED> (e) Chairperson and Vice-Chairperson.--Of members of the
Board, the President shall appoint--</DELETED>
<DELETED> (1) 1 member to serve as Chairperson of the Board
for a term of 4 years; and</DELETED>
<DELETED> (2) 1 member to serve as Vice-Chairperson of the
Board for a term of 4 years.</DELETED>
<DELETED> (f) Meetings.--</DELETED>
<DELETED> (1) Initial meeting.--The Board shall hold the
initial meeting of the Board as soon as practicable after the
date on which all members have been appointed to the Board
under subsection (c)(1).</DELETED>
<DELETED> (2) Presiding officer.--A meeting of the Board
shall be presided over by--</DELETED>
<DELETED> (A) the Chairperson;</DELETED>
<DELETED> (B) in any case in which the Chairperson
is absent, the Vice-Chairperson; or</DELETED>
<DELETED> (C) in any case in which the Chairperson
and Vice-Chairperson are absent, a chairperson pro
tempore, to be elected by the members of the
Board.</DELETED>
<DELETED> (3) Quorum.--Four members of the Board shall
constitute a quorum for a meeting of the Board.</DELETED>
<DELETED> (4) Open meetings.--The Board shall be subject to
section 552b of title 5, United States Code (commonly known as
the ``Government in the Sunshine Act'').</DELETED>
<DELETED>SEC. 2603. DUTIES.</DELETED>
<DELETED> (a) Information Gathering.--</DELETED>
<DELETED> (1) Authority.--The Board shall collect and
analyze relevant market information to promote a full
understanding of the dynamics of the emission allowance market
established under this Act.</DELETED>
<DELETED> (2) Information.--The Board shall gather such
information as the Board determines to be appropriate regarding
the status of the market, including information relating to--
</DELETED>
<DELETED> (A) emission allowance allocation and
availability;</DELETED>
<DELETED> (B) the price of emission
allowances;</DELETED>
<DELETED> (C) macro- and micro-economic effects of
unexpected significant increases in emission allowance
prices, or shifts in the emission allowance market,
should those increases or shifts occur;</DELETED>
<DELETED> (D) economic effect thresholds that could
warrant implementation of cost relief measures
described in section 2604(a) after the initial 2-year
period described in section 2603(d)(2);</DELETED>
<DELETED> (E) in the event any cost relief measures
described in section 2604(a) are taken, the effects of
those measures on the market;</DELETED>
<DELETED> (F) maximum levels of cost relief measures
that are necessary to achieve avoidance of economic
harm and preserve achievement of the purposes of this
Act; and</DELETED>
<DELETED> (G) the success of the market in promoting
achievement of the purposes of this Act.</DELETED>
<DELETED> (b) Treatment as Primary Activity.--</DELETED>
<DELETED> (1) In general.--During the initial 2-year period
of operation of the Board, information gathering under
subsection (a) shall be the primary activity of the
Board.</DELETED>
<DELETED> (2) Subsequent authority.--After the 2-year period
described in paragraph (1), the Board shall assume authority to
implement the cost-relief measures described in section
2604(a).</DELETED>
<DELETED> (c) Study.--</DELETED>
<DELETED> (1) In general.--During the 2-year period
beginning on the date on which the emission allowance market
established under this Act begins operation, the Board shall
conduct a study of other markets for tradeable permits to emit
covered greenhouse gases.</DELETED>
<DELETED> (2) Report.--Not later than 180 days after the
beginning of the period described in paragraph (1), the Board
shall submit to Congress a report describing the status of the
market, specifically with respect to volatility within the
market and the average price of emission allowances during that
180-day period.</DELETED>
<DELETED> (d) Employment of Cost Relief Measures.--</DELETED>
<DELETED> (1) In general.--If the Board determines that the
emission allowance market established under this Act poses a
significant harm to the economy of the United States, the Board
shall carry out such cost relief measures relating to that
market as the Board determines to be appropriate under section
2604(a).</DELETED>
<DELETED> (2) Initial period.--During the 2-year period
beginning on the date on which the emission allowance market
established under this Act begins operation, if the Board
determines that the average daily closing price of emission
allowances during a 180-day period exceeds the upper range of
the estimate provided under section 2605, the Board shall--
</DELETED>
<DELETED> (A) increase the quantity of emission
allowances that covered facilities may borrow from the
prescribed allocations of the covered facilities for
future years; and</DELETED>
<DELETED> (B) take subsequent action as described in
section 2604(a)(2).</DELETED>
<DELETED> (3) Requirements.--Any action carried out pursuant
to this subsection shall be subject to the requirements of
section 2604(a)(3)(B).</DELETED>
<DELETED> (e) Reports.--The Board shall submit to the President and
Congress quarterly reports--</DELETED>
<DELETED> (1) describing the status of the emission
allowance market established under this Act, the economic
effects of the market, regional, industrial, and consumer
responses to the market, energy investment responses to the
market, any corrective measures that should be carried out to
relieve excessive costs of the market, and plans to compensate
for those measures; and</DELETED>
<DELETED> (2) that are prepared independently by the Board,
and not in partnership with Federal agencies.</DELETED>
<DELETED>SEC. 2604. POWERS.</DELETED>
<DELETED> (a) Cost Relief Measures.--</DELETED>
<DELETED> (1) In general.--Beginning on the day after the
date of expiration of the 2-year period described in section
2603(b), the Board may carry out 1 or more of the following
cost relief measures to ensure functioning, stable, and
efficient markets for emission allowances:</DELETED>
<DELETED> (A) Increase the quantity of emission
allowances that covered facilities may borrow from the
prescribed allocations of the covered facilities for
future years.</DELETED>
<DELETED> (B) Expand the period during which a
covered facility may repay the Administrator for an
emission allowance as described in subparagraph
(A).</DELETED>
<DELETED> (C) Lower the interest rate at which an
emission allowance may be borrowed as described in
subparagraph (A).</DELETED>
<DELETED> (D) Increase the quantity of allowances or
credits obtained on a foreign greenhouse gas emissions
trading market that the owner or operator of any
covered facility may use to satisfy the allowance
submission requirement of the covered facility under
section 1202(a), on the condition that the
Administrator has certified the market in accordance
with the regulations promulgated pursuant to section
2502(a).</DELETED>
<DELETED> (E) Increase the quantity of offset
allowances generated in accordance with subtitle D that
the owner or operator of any covered facility may use
to satisfy the total allowance submission requirement
of the covered facility under section
1202(a).</DELETED>
<DELETED> (F) Expand the total quantity of emission
allowances made available to all covered facilities at
any given time by borrowing against the total allowable
quantity of emission allowances to be provided for
future years.</DELETED>
<DELETED> (2) Subsequent actions.--On determination by the
Board to carry out a cost relief measure pursuant to paragraph
(1), the Board shall--</DELETED>
<DELETED> (A) allow the cost relief measure to be
used only during the applicable allocation
year;</DELETED>
<DELETED> (B) exercise the cost relief measure
incrementally, and only as needed to avoid significant
economic harm during the applicable allocation
year;</DELETED>
<DELETED> (C) specify the terms of the relief to be
achieved using the cost relief measure, including
requirements for entity-level or national market-level
compensation to be achieved by a specific date or
within a specific time period;</DELETED>
<DELETED> (D) in accordance with section 2603(e),
submit to the President and Congress a report
describing the actions carried out by the Board and
recommendations for the terms under which the cost
relief measure should be authorized by Congress and
carried out by Federal entities; and</DELETED>
<DELETED> (E) evaluate, at the end of the applicable
allocation year, actions that need to be carried out
during subsequent years to compensate for any cost
relief measure carried out during the applicable
allocation year.</DELETED>
<DELETED> (3) Action on expansion of borrowing.--</DELETED>
<DELETED> (A) In general.--If the Board carries out
a cost relief measure pursuant to paragraph (1) that
results in the expansion of borrowing of emission
allowances under this Act, and if the average daily
closing price of emission allowances for the 180-day
period beginning on the date on which borrowing is so
expanded exceeds the upper range of the estimate
provided under section 2605, the Board shall increase
the quantity of emission allowances available for the
applicable allocation year in accordance with this
paragraph.</DELETED>
<DELETED> (B) Requirements.--An increase in the
quantity of emission allowances under subparagraph (A)
shall--</DELETED>
<DELETED> (i) apply to all covered
facilities;</DELETED>
<DELETED> (ii) be allocated in accordance
with the applicable formulas and procedures
established under this Act;</DELETED>
<DELETED> (iii) be equal to not more than 5
percent of the total quantity of emission
allowances otherwise available for the
applicable allocation year under this
Act;</DELETED>
<DELETED> (iv) remain in effect only for the
applicable allocation year;</DELETED>
<DELETED> (v) specify the date by which the
increase shall be repaid by covered facilities
through a proportionate reduction of emission
allowances available for subsequent allocation
years; and</DELETED>
<DELETED> (vi) require the repayment under
clause (v) to be made by not later than the
date that is 15 years after the date on which
the increase is provided.</DELETED>
<DELETED> (b) Assessments.--Not more frequently than semiannually,
the Board may levy on owners and operators of covered facilities, in
proportion to the capital stock and surplus of the participants, an
assessment sufficient to pay the estimated expenses of the Board and
the salaries of members of and employees of the Board during the 180-
day period beginning on the date on which the assessment is levied,
taking into account any deficit carried forward from the preceding 180-
day period.</DELETED>
<DELETED> (c) Limitations.--Nothing in this section gives the Board
the authority--</DELETED>
<DELETED> (1) to consider or prescribe entity-level
petitions for relief from the costs of an emission allowance
allocation or trading program established under Federal
law;</DELETED>
<DELETED> (2) to carry out any investigative or punitive
process under the jurisdiction of any Federal or State
court;</DELETED>
<DELETED> (3) to interfere with, modify, or adjust any
emission allowance allocation scheme established under Federal
law; or</DELETED>
<DELETED> (4) to modify the total quantity of allowances
issued under this Act for the period of calendar years 2012
through 2050.</DELETED>
<DELETED>SEC. 2605. ESTIMATE OF COSTS TO ECONOMY OF LIMITING GREENHOUSE
GAS EMISSIONS.</DELETED>
<DELETED> Not later than July 1, 2014, the Director of the
Congressional Budget Office, using economic and scientific analyses,
shall submit to Congress a report that describes--</DELETED>
<DELETED> (1) the projected price range at which emission
allowances are expected to trade during the 2-year period of
the initial greenhouse gas emission market established under
Federal law; and</DELETED>
<DELETED> (2) the projected impact of that market on the
economy of the United States.</DELETED>
<DELETED>TITLE III--ALLOCATING AND DISTRIBUTING ALLOWANCES</DELETED>
<DELETED>Subtitle A--Early Auctions</DELETED>
<DELETED>SEC. 3101. ALLOCATION FOR EARLY AUCTIONS.</DELETED>
<DELETED> Not later than 180 days after the date of enactment of
this Act, the Administrator shall allocate 6 percent of the emission
allowances established for calendar year 2012, 4 percent of the
emission allowances established for calendar year 2013, and 2 percent
of the emissions established for calendar 2014, to the Corporation for
early auctioning in accordance with section 4301.</DELETED>
<DELETED>Subtitle B--Annual Auctions</DELETED>
<DELETED>SEC. 3201. ALLOCATION FOR ANNUAL AUCTIONS.</DELETED>
<DELETED> Not later than January 1, 2012, and annually thereafter
through January 1, 2050, the Administrator shall allocate to the
Corporation a percentage of emission allowances for that calendar year,
for annual auctioning, as follows:</DELETED>
----------------------------------------------------------------------------------------------------------------
Percentage of Emission Allowance
Calendar Year Account Allocated to the
Corporation
----------------------------------------------------------------------------------------------------------------
2012 18
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2013 21
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2014 24
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2015 27
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2016 28
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2017 31
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2018 33
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2019 35
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2020 37
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2021 39
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2022 41
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2023 43
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2024 45
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2025 47
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2026 49
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2027 51
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2028 53
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2029 55
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2030 57
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2031 59
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2032 61
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2033 63
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2034 65
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2035 67
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2036 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2037 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2038 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2039 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2040 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2041 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2042 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2043 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2044 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2045 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2046 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2047 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2048 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2049 73
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2050 73
----------------------------------------------------------------------------------------------------------------
<DELETED>Subtitle C--Early Action</DELETED>
<DELETED>SEC. 3301. ALLOCATION.</DELETED>
<DELETED> Not later than 2 years after the date of enactment of this
Act, the Administrator shall allocate to owners or operators of covered
facilities, in recognition of actions of the owners and operators taken
since January 1, 1994, that resulted in verified and credible
reductions of greenhouse gas emissions--</DELETED>
<DELETED> (1) 5 percent of the emission allowances
established for calendar year 2012;</DELETED>
<DELETED> (2) 4 percent of the emission allowances
established for calendar year 2013;</DELETED>
<DELETED> (3) 3 percent of the emission allowances
established for calendar year 2014;</DELETED>
<DELETED> (4) 2 percent of the emission allowances
established for calendar year 2015; and</DELETED>
<DELETED> (5) 1 percent of the emission allowances
established for calendar year 2016.</DELETED>
<DELETED>SEC. 3302. DISTRIBUTION.</DELETED>
<DELETED> (a) In General.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall establish, by
regulation, procedures and standards for use in distributing, to owners
and operators of covered facilities, emission allowances allocated
under section 3301.</DELETED>
<DELETED> (b) Consideration.--The procedures and standards
established under subsection (a) shall provide for consideration of
verified and credible emission reductions registered before the date of
enactment of this Act under--</DELETED>
<DELETED> (1) the Climate Leaders Program, or any other
voluntary greenhouse gas reduction program of the United States
Environmental Protection Agency and United States Department of
Energy;</DELETED>
<DELETED> (2) the Voluntary Reporting of Greenhouse Gases
Program of the Energy Information Administration;</DELETED>
<DELETED> (3) State or regional greenhouse gas emission
reduction programs that include systems for tracking and
verifying the greenhouse gas emission reductions; and</DELETED>
<DELETED> (4) voluntary entity programs that resulted in
entity-wide reductions in greenhouse gas emissions.</DELETED>
<DELETED> (c) Distribution.--Not later than 4 years after the date
of enactment of this Act, the Administrator shall distribute all
emission allowances allocated under section 3301.</DELETED>
<DELETED>Subtitle D--States</DELETED>
<DELETED>SEC. 3401. ALLOCATION FOR ENERGY SAVINGS.</DELETED>
<DELETED> (a) Allocation.--Not later than January 1, 2012, and
annually thereafter through January 1, 2050, the Administrator shall
allocate 1 percent of the Emission Allowance Account among States
that--</DELETED>
<DELETED> (1) have adopted regulations by not later than the
date on which the allowance allocations are made, that subject
regulated natural gas and electric utilities that deliver gas
or electricity in the State to regulations that--</DELETED>
<DELETED> (A) automatically adjust the rates charged
by natural gas and electric utilities to fully recover
fixed costs of service without regard to whether their
actual sales are higher or lower than the forecast of
sales on which the tariffed rates were based;
and</DELETED>
<DELETED> (B) make cost-effective energy-efficiency
investments by investor-owned natural gas or electric
utilities at least as rewarding to their shareholders,
on a risk-adjusted basis for the equity capital
invested, as power or energy purchases, or investments
in new energy supplies or infrastructure; and</DELETED>
<DELETED> (2) have adopted, or whose political subdivisions
have adopted, regulations by not later than the date on which
allocations are made, that are as stringent as, or more
stringent than, the most recent energy performance requirements
of ASHRAE 90.1 and the International Energy Conservation Code
for new buildings.</DELETED>
<DELETED> (b) Allocation for Building Efficiency.--Not later than
January 1, 2012, and annually thereafter through January 1, 2050, the
Administrator shall allocate 1 percent of the Emission Allowance
Account among States that are in compliance with section 304(c)(3) of
the Energy Conservation and Production Act (as amended by section
5201).</DELETED>
<DELETED> (c) Distribution.--Not later than 2 years after the date
of enactment of this Act, the Administrator shall establish procedures
and standards for the distribution of emission allowances to States in
accordance with subsections (a) and (b).</DELETED>
<DELETED> (d) Use.--Any State receiving emission allowances under
this section for a calendar year shall retire or use, in 1 or more of
the ways described in section 3403(c)(1), not less than 90 percent of
the emission allowances allocated to the State (or proceeds of the sale
of those allowances) under this section for the calendar
year.</DELETED>
<DELETED>SEC. 3402. ALLOCATION FOR STATES WITH PROGRAMS THAT EXCEED
FEDERAL EMISSION REDUCTION TARGETS.</DELETED>
<DELETED> (a) Allocation.--Not later than January 1, 2012, and
annually thereafter through January 1, 2050, the Administrator shall
allocate 2 percent of the Emission Allowance Account for the year among
States that have--</DELETED>
<DELETED> (1) before the date of enactment of this Act,
enacted statewide greenhouse gas emission reduction targets
that are more stringent than the nationwide targets established
under title II; and</DELETED>
<DELETED> (2) by the time of an allocation under this
subsection, imposed on covered facilities within the States
aggregate greenhouse gas emission limitations more stringent
than those imposed on covered facilities under title
II.</DELETED>
<DELETED> (b) Distribution.--Not later than 2 years after the date
of enactment of this Act, the Administrator shall establish procedures
and standards for use in distributing emission allowances among States
in accordance with subsection (a).</DELETED>
<DELETED> (c) Use.--Any State receiving emission allowances under
this section for a calendar year shall retire or use, in 1 or more of
the ways described in section 3403(c)(1), not less than 90 percent of
the emission allowances allocated to the State (or proceeds of the sale
of those allowances) under this section for the calendar
year.</DELETED>
<DELETED>SEC. 3403. GENERAL ALLOCATION.</DELETED>
<DELETED> (a) Allocation.--Subject to subsection (d)(3), not later
than January 1, 2012, and annually thereafter through January 1, 2050,
the Administrator shall allocate 5 percent of the Emission Allowance
Account for the year among States.</DELETED>
<DELETED> (b) Distribution.--The allowances available for allocation
to States under subsection (a) for a calendar year shall be distributed
as follows:</DELETED>
<DELETED> (1) For each calendar year, </DELETED>\<DELETED>1/
3</DELETED>\ <DELETED>of the quantity of allowances available
for allocation to States under subsection (a) shall be
allocated among individual States based on the proportion
that--</DELETED>
<DELETED> (A) the expenditures of a State for the
low-income home energy assistance program established
under the Low-Income Home Energy Assistance Act of 1981
(42 U.S.C. 8621 et seq.) for the preceding calendar
year; bears to</DELETED>
<DELETED> (B) the expenditures of all States for
that program for the preceding calendar year.</DELETED>
<DELETED> (2) For each calendar year, </DELETED>\<DELETED>1/
3</DELETED>\ <DELETED>of the quantity of allowances available
for allocation to States under subsection (a) shall be
allocated among the States based on the proportion that--
</DELETED>
<DELETED> (A) the population of a State, as
determined by the most recent decennial census
preceding the calendar year for which the allocation
regulations are for the allocation year; bears
to</DELETED>
<DELETED> (B) the population of all States, as
determined by that census.</DELETED>
<DELETED> (3) For each calendar year, </DELETED>\<DELETED>1/
3</DELETED>\ <DELETED>of the quantity of allowances available
for allocation to States under subsection (a) shall be
allocated among the States based on the proportion that--
</DELETED>
<DELETED> (A) the quantity of carbon dioxide that
would be emitted assuming that all of the coal that is
mined, natural gas that is processed, and petroleum
that is refined within the boundaries of a State during
the preceding year is completely combusted and that
none of the carbon dioxide emissions are captured, as
determined by the Secretary of Energy; bears
to</DELETED>
<DELETED> (B) the aggregate quantity of carbon
dioxide that would be emitted assuming that all of the
coal that is mined, natural gas that is processed, and
petroleum that is refined in all States for the
preceding year is completely combusted and that none of
the carbon dioxide emissions are captured, as
determined by the Secretary of Energy.</DELETED>
<DELETED> (c) Use.--</DELETED>
<DELETED> (1) In general.--During any calendar year, a State
shall retire or use in 1 or more of the following ways not less
than 90 percent of the allowances allocated to the State (or
proceeds of sale of those emission allowances) under this
section for that calendar year:</DELETED>
<DELETED> (A) To mitigate impacts on low-income
energy consumers.</DELETED>
<DELETED> (B) To promote energy efficiency
(including support of electricity and natural gas
demand reduction, waste minimization, and recycling
programs).</DELETED>
<DELETED> (C) To promote investment in nonemitting
electricity generation technology.</DELETED>
<DELETED> (D) To improve public transportation and
passenger rail service and otherwise promote reductions
in vehicle miles traveled.</DELETED>
<DELETED> (E) To encourage advances in energy
technology that reduce or sequester greenhouse gas
emissions.</DELETED>
<DELETED> (F) To address local or regional impacts
of climate change, including the relocation of
communities displaced by the impacts of climate
change.</DELETED>
<DELETED> (G) To mitigate obstacles to investment by
new entrants in electricity generation markets and
energy-intensive manufacturing sectors.</DELETED>
<DELETED> (H) To address local or regional impacts
of climate change policy, including providing
assistance to displaced workers.</DELETED>
<DELETED> (I) To mitigate impacts on energy-
intensive industries in internationally competitive
markets.</DELETED>
<DELETED> (J) To reduce hazardous fuels, and to
prevent and suppress wildland fire.</DELETED>
<DELETED> (K) To fund rural, municipal, and
agricultural water projects that are consistent with
the sustainable use of water resources.</DELETED>
<DELETED> (2) Deadline.--A State shall distribute or sell
allowances for use in accordance with paragraph (1) by not
later than 1 year before the beginning of each allowance
allocation year.</DELETED>
<DELETED> (3) Return of allowances.--Not later than 330 days
before the beginning of each allowance allocation year, a State
shall return to the Administrator any allowances not
distributed by the deadline under paragraph (2).</DELETED>
<DELETED> (d) Program for Tribal Communities.--</DELETED>
<DELETED> (1) Establishment.--Not later than 3 years after
the date of enactment of this Act, the Administrator, in
consultation with the Secretary of the Interior, shall by
regulation establish a program for tribal communities--
</DELETED>
<DELETED> (A) that is designed to deliver assistance
to tribal communities within the United States that
face disruption or dislocation as a result of global
climate change; and</DELETED>
<DELETED> (B) under which the Administrator shall
distribute 0.5 percent of the Emission Allowance
Account for each calendar among tribal governments of
the tribal communities described in subparagraph
(A).</DELETED>
<DELETED> (2) Allocation.--Beginning in the first calendar
year that begins after promulgation of the regulations referred
to in paragraph (1), and annually thereafter until calendar
year 2050, the Administrator shall allocate 0.5 percent of the
Emission Allowance Account for each calendar year to the
program established under paragraph (1).</DELETED>
<DELETED> (3) Allocations to states.--For each calendar year
for which the Administrator allocates 0.5 percent of the
Emission Allowance Account to the program established under
paragraph (1), the general allocation for States under
subsection (a) shall be 4.5 percent of the Emission Allowance
Account.</DELETED>
<DELETED>Subtitle E--Electricity Consumers</DELETED>
<DELETED>SEC. 3501. ALLOCATION.</DELETED>
<DELETED> Not later than April 1, 2012, and annually thereafter
through January 1, 2050, the Administrator shall allocate among load-
serving entities 10 percent of the Emission Allowance Account for the
year.</DELETED>
<DELETED>SEC. 3502. DISTRIBUTION.</DELETED>
<DELETED> (a) In General.--For each calendar year, the emission
allowances allocated under section 3501 shall be distributed by the
Administrator to each load-serving entity based on the proportion
that--</DELETED>
<DELETED> (1) the quantity of electricity delivered by the
load-serving entity during the 3 calendar years preceding the
calendar year for which the emission allowances are
distributed, adjusted upward for electricity not delivered as a
result of consumer energy-efficiency programs implemented by
the load-serving entity and verified by the regulatory agency
of the load-serving entity; bears to</DELETED>
<DELETED> (2) the total quantity of electricity delivered by
all load-serving entities during those 3 calendar
years.</DELETED>
<DELETED> (b) Basis.--The Administrator shall base the determination
of the quantity of electricity delivered by a load-serving entity for
the purpose of subsection (a) on the most recent data available in
annual reports filed with the Energy Information Administration of the
Department of Energy</DELETED>
<DELETED>SEC. 3503. USE.</DELETED>
<DELETED> (a) In General.--Any load-serving entity that accepts
emission allowances distributed under section 3502 shall--</DELETED>
<DELETED> (1) sell each emission allowance distributed to
the load-serving entity by not later than 1 year after
receiving the emission allowance; and</DELETED>
<DELETED> (2) pursue fair market value for each emission
allowance sold in accordance with paragraph (1).</DELETED>
<DELETED> (b) Proceeds.--All proceeds from the sale of emission
allowances under subsection (a) shall be used solely--</DELETED>
<DELETED> (1) to mitigate economic impacts on low- and
middle-income energy consumers, including by reducing
transmission charges or issuing rebates; and</DELETED>
<DELETED> (2) to promote energy efficiency on the part of
energy consumers.</DELETED>
<DELETED> (c) Inclusion in Retail Rates.--To facilitate the prompt
pass-through of the benefits from the sale of emission allowances to
retail customers--</DELETED>
<DELETED> (1) any credit from the sale of allowances shall
be reflected in the retail rates of a load-serving entity not
later than 90 days after the sale of the allowances;</DELETED>
<DELETED> (2) the load-serving entity shall not be required
to file a retail rate case in order to pass through the credit;
and</DELETED>
<DELETED> (3) the amount of the credit shall not be subject
to review by any State regulatory authority.</DELETED>
<DELETED> (d) Prohibition on Rebates.--No load-serving entity may
use any proceeds from the sale of emission allowances under subsection
(a) to provide to any consumer a rebate that is based on the quantity
of electricity used by the consumer.</DELETED>
<DELETED>SEC. 3504. REPORTING.</DELETED>
<DELETED> (a) In General.--Each load-serving entity that accepts
emission allowances distributed under section 3502 shall, for each
calendar year for which the load-serving entity accepts emission
allowances, submit to the Administrator a report describing--</DELETED>
<DELETED> (1) the date of each sale of each emission
allowance during the preceding year;</DELETED>
<DELETED> (2) the amount of revenue generated from the sale
of emission allowances during the preceding year; and</DELETED>
<DELETED> (3) how, and to what extent, the load-serving
entity used the proceeds of the sale of the emission allowances
during the preceding year.</DELETED>
<DELETED> (b) Availability of Reports.--The Administrator shall make
available to the public all reports submitted by any load-serving
entity under subsection (b), including by publishing those reports on
the Internet.</DELETED>
<DELETED>Subtitle F--Bonus Allowances for Carbon Capture and Geological
Sequestration</DELETED>
<DELETED>SEC. 3601. ALLOCATION.</DELETED>
<DELETED> (a) In General.--Not later than 3 years after the date of
enactment of this Act, the Administrator shall--</DELETED>
<DELETED> (1) establish a Bonus Allowance Account;
and</DELETED>
<DELETED> (2) allocate 4 percent of the emission allowances
established for calendar years 2012 through 2035 to the Bonus
Allowance Account.</DELETED>
<DELETED> (b) Initial Number of Allowances.--As of January 1, 2012,
there shall be 3,932,160,000 emission allowances in the Bonus Allowance
Account.</DELETED>
<DELETED>SEC. 3602. QUALIFYING PROJECTS.</DELETED>
<DELETED> To be eligible to receive emission allowances under this
subtitle, a carbon capture and sequestration project shall--</DELETED>
<DELETED> (1) comply with such criteria and procedures as
the Administrator may establish, including a requirement for a
minimum of an 85-percent capture rate for carbon dioxide
emissions on an annual basis from any unit for which allowances
are allocated;</DELETED>
<DELETED> (2) sequester in a geological formation permitted
by the Administrator for that purpose in accordance with
regulations promulgated under section 1421(d) of the Safe
Drinking Water Act (42 U.S.C. 300h(d)) carbon dioxide resulting
from electric power generation; and</DELETED>
<DELETED> (3) have begun operation during the period
beginning on January 1, 2008, and ending on December 31,
2035.</DELETED>
<DELETED>SEC. 3603. DISTRIBUTION.</DELETED>
<DELETED> Subject to section 3604, for each of calendar years 2012
through 2039, the Administrator shall distribute emission allowances
from the Bonus Allowance Account to each qualifying project under this
subtitle in a quantity equal to the product obtained by multiplying the
number of metric tons of carbon dioxide geologically sequestered by the
project and the bonus allowance rate for that calendar year, as
provided in the following table:</DELETED>
Year Bonus Allowance Rate
2012 4.5
2013 4.5
2014 4.5
2015 4.5
2016 4.5
2017 4.5
2018 4.2
2019 3.9
2020 3.6
2021 3.3
2022 3.0
2023 2.7
2024 2.4
2025 2.1
2026 1.8
2027 1.5
2028 1.3
2029 1.1
2030 0.9
2031 0.7
2032 0.5
2033 0.5
2034 0.5
2035 0.5
2036 0.5
2037 0.5
2038 0.5
2039 0.5
<DELETED>SEC. 3604. 10-YEAR LIMIT.</DELETED>
<DELETED> A qualifying project may receive annual emission
allowances under this subsection only for--</DELETED>
<DELETED> (1) the first 10 years of operation; or</DELETED>
<DELETED> (2) if the unit covered by the qualifying project
began operating before January 1, 2012, the period of calendar
years 2012 through 2021.</DELETED>
<DELETED>SEC. 3605. EXHAUSTION OF BONUS ALLOWANCE ACCOUNT.</DELETED>
<DELETED> If, at the beginning of a calendar year, the Administrator
determines that the number of emission allowances remaining in the
Bonus Allowance Account will be insufficient to allow the distribution,
in that calendar year, of the number of allowances that otherwise would
be distributed under section 3603 for the calendar year, the
Administrator shall, for the calendar year--</DELETED>
<DELETED> (1) distribute the remaining bonus allowances only
to qualifying projects that were already qualifying projects
during the preceding calendar year;</DELETED>
<DELETED> (2) distribute the remaining bonus allowances to
those qualifying projects on a pro rata basis; and</DELETED>
<DELETED> (3) discontinue the program established under this
subtitle as of the date on which the Bonus Allowance Account is
projected to be fully used based on projects already in
operation.</DELETED>
<DELETED>Subtitle G--Domestic Agriculture and Forestry</DELETED>
<DELETED>SEC. 3701. ALLOCATION.</DELETED>
<DELETED> Not later than January 1, 2012, and annually thereafter
through January 1, 2050, the Administrator shall allocate to the
Secretary of Agriculture 5 percent of the Emission Allowance Account
for the calendar year for use in--</DELETED>
<DELETED> (1) reducing greenhouse gas emissions from the
agriculture and forestry sectors of the United States economy;
and</DELETED>
<DELETED> (2) increasing greenhouse gas sequestration from
those sectors.</DELETED>
<DELETED>SEC. 3702. AGRICULTURAL AND FORESTRY GREENHOUSE GAS MANAGEMENT
RESEARCH.</DELETED>
<DELETED> (a) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Agriculture, in consultation
with scientific and agricultural and forestry experts, shall prepare
and submit to Congress a report that describes the status of research
on agricultural and forestry greenhouse gas management, including a
description of--</DELETED>
<DELETED> (1) research on soil carbon sequestration and
other agricultural and forestry greenhouse gas management that
has been carried out;</DELETED>
<DELETED> (2) any additional research that is
necessary;</DELETED>
<DELETED> (3) the proposed priority for additional
research;</DELETED>
<DELETED> (4) the most appropriate approaches for conducting
the additional research; and</DELETED>
<DELETED> (5) the manner in which carbon credits that are
specific to agricultural and forestry operations should be
valued and allotted.</DELETED>
<DELETED> (b) Standardized System of Soil Carbon Measurement and
Certification for the Agricultural and Forestry Sectors.--</DELETED>
<DELETED> (1) In general.--As soon as practicable after the
date of enactment of this Act, the Secretary of Agriculture
shall establish a standardized system of carbon measurement and
certification for the agricultural and forestry
sectors.</DELETED>
<DELETED> (2) Administration.--In establishing the system,
the Secretary of Agriculture shall--</DELETED>
<DELETED> (A) create a standardized system of
measurements for agricultural and forestry greenhouse
gases; and</DELETED>
<DELETED> (B) delineate the most appropriate system
of certification of credit by public or private
entities.</DELETED>
<DELETED> (c) Research.--After the date of submission of the report
described in paragraph (1), the President and the Secretary of
Agriculture (in collaboration with the member institutions of higher
education of the Consortium for Agricultural Soil Mitigation of
Greenhouse Gases, institutions of higher education, and research
entities) shall initiate a program to conduct any additional research
that is necessary.</DELETED>
<DELETED>SEC. 3703. DISTRIBUTION.</DELETED>
<DELETED> Taking into account the report prepared under subsection
3702(a), the Secretary of Agriculture shall establish, by regulation, a
program under which agricultural and forestry sequestration allowances
may be distributed to entities that carry out sequestration projects on
agricultural and forest land that achieve long-term greenhouse gas
emission mitigation benefits.</DELETED>
<DELETED>Subtitle H--International Forest Protection</DELETED>
<DELETED>SEC. 3801. FINDINGS.</DELETED>
<DELETED> Congress finds that--</DELETED>
<DELETED> (1) land-use change and forest sector emissions
account for approximately 20 percent of global greenhouse gas
emissions;</DELETED>
<DELETED> (2) land conversion and deforestation are 2 of the
largest sources of greenhouse gas emissions in the developing
world, amounting to roughly 40 percent of the total greenhouse
gas emissions of the developing world;</DELETED>
<DELETED> (3) with sufficient data, deforestation rates and
forest carbon stocks can be measured with an acceptable level
of uncertainty; and</DELETED>
<DELETED> (4) encouraging reduced deforestation and other
forest carbon activities in other countries can--</DELETED>
<DELETED> (A) provide critical leverage to encourage
voluntary developing country participation in emission
limitation regimes;</DELETED>
<DELETED> (B) facilitate greater overall reductions
in greenhouse gas emissions than would otherwise be
practicable; and</DELETED>
<DELETED> (C) substantially benefit biodiversity,
conservation, and indigenous and other forest-dependent
people in developing countries.</DELETED>
<DELETED>SEC. 3802. DEFINITION OF FOREST CARBON ACTIVITIES.</DELETED>
<DELETED> In this subtitle, the term ``forest carbon activities''
means--</DELETED>
<DELETED> (1) activities directed at reducing greenhouse gas
emissions from deforestation and forest degradation in
countries other than the United States; and</DELETED>
<DELETED> (2) activities directed at increasing
sequestration of carbon through restoration of forests, and
degraded land in countries other than the United States that
has not been forested prior to restoration, afforestation, and
improved forest management, that meet the eligibility
requirements promulgated under section 3804(a).</DELETED>
<DELETED>SEC. 3803. ALLOCATION.</DELETED>
<DELETED> Not later than January 1, 2012, and annually thereafter
through January 1, 2050, the Administrator shall allocate and
distribute 3 percent of the Emission Allowance Account for the calendar
year for use in carrying out forest carbon activities in countries
other than the United States.</DELETED>
<DELETED>SEC. 3804. DEFINITION AND ELIGIBILITY REQUIREMENTS.</DELETED>
<DELETED> (a) Eligibility Requirements for Forest Carbon
Activities.--Not later than 2 years after the date of enactment of this
Act, the Administrator, in consultation with the Secretary of the
Interior, the Secretary of State, and the Secretary of Agriculture,
shall promulgate eligibility requirements for forest carbon activities
directed at sequestration of carbon through restoration of forests and
degraded land, afforestation, and improved forest management in
countries other than the United States, including requirements that
those activities be--</DELETED>
<DELETED> (1) carried out and managed in accordance with
widely-accepted environmentally sustainable forestry practices;
and</DELETED>
<DELETED> (2) designed--</DELETED>
<DELETED> (A) to promote native species and
restoration of native forests, where practicable;
and</DELETED>
<DELETED> (B) to avoid the introduction of invasive
nonnative species.</DELETED>
<DELETED> (b) Quality Criteria for Forest Carbon Allocations.--Not
later than 2 years after the date of enactment of this Act, the
Administrator, in consultation with the Secretary of the Interior, the
Secretary of State, and the Secretary of Agriculture, shall promulgate
regulations establishing the requirements for eligibility to receive
allowances under this section, including requirements that ensure that
the emission reductions or sequestrations are real, permanent,
additional, and verifiable, with reliable measuring and monitoring and
appropriate accounting for leakage.</DELETED>
<DELETED>SEC. 3805. INTERNATIONAL FOREST CARBON ACTIVITIES.</DELETED>
<DELETED> (a) In General.--The Administrator, in consultation with
the Secretary of State, shall identify and periodically update a list
of countries that have--</DELETED>
<DELETED> (1) demonstrated capacity to participate in
international forest carbon activities, including--</DELETED>
<DELETED> (A) sufficient historical data on changes
in national forest carbon stocks;</DELETED>
<DELETED> (B) technical capacity to monitor and
measure forest carbon fluxes with an acceptable level
of uncertainty; and</DELETED>
<DELETED> (C) institutional capacity to reduce
emissions from deforestation and degradation;</DELETED>
<DELETED> (2) capped greenhouse gas emissions or otherwise
established a national emission reference scenario based on
historical data; and</DELETED>
<DELETED> (3) commenced an emission reduction program for
the forest sector.</DELETED>
<DELETED> (b) Crediting and Additionality.--</DELETED>
<DELETED> (1) Reduction in deforestation and forest
degradation.--A verified reduction in greenhouse gas emissions
from deforestation and forest degradation under a cap or from a
nationwide emissions reference scenario described in subsection
(a) shall be--</DELETED>
<DELETED> (A) eligible for crediting; and</DELETED>
<DELETED> (B) considered to satisfy the
additionality criterion.</DELETED>
<DELETED> (2) Periodic review of national level reductions
in deforestation and degradation.--The Administrator, in
consultation with the Secretary of State, shall identify and
periodically update a list of countries described in subsection
(a) that have--</DELETED>
<DELETED> (A) achieved national-level reductions of
deforestation and degradation below a historical
reference scenario, taking into consideration the
average annual deforestation and degradation rates of
the country and of all countries during a period of at
least 5 years; and</DELETED>
<DELETED> (B) demonstrated those reductions using
remote sensing technology that meets international
standards.</DELETED>
<DELETED> (3) Other forest carbon activities.--A forest
carbon activity, other than a reduction in deforestation or
forest degradation, shall be eligible for crediting, subject to
the quality criteria for forest carbon credits identified in
this Act or in regulations promulgated under this
Act.</DELETED>
<DELETED> (c) Recognition of Credits.--With respect to countries
other than countries described in subsection (a), the Administrator--
</DELETED>
<DELETED> (1) shall recognize credits from forest carbon
activities, subject to the quality criteria for forest carbon
credits identified in this Act and regulations promulgated
under this Act; and</DELETED>
<DELETED> (2) is encouraged to identify other incentives,
including economic and market-based incentives, to encourage
developing countries with largely-intact native forests to
protect those forests.</DELETED>
<DELETED>SEC. 3806. REVIEWS AND DISCOUNT.</DELETED>
<DELETED> (a) Reviews.--Not later than 3 years after the date of
enactment of this Act, and 5 years thereafter, the Administrator shall
conduct a review of the credit program under this subtitle.</DELETED>
<DELETED> (b) Discount.--If, after the date that is 10 years after
the date of enactment of this Act, the Administrator determines that
foreign countries that, in the aggregate, generate greenhouse gas
emissions accounting for more than 0.5 percent of global greenhouse gas
emissions have not capped those emissions, established emissions
reference scenarios based on historical data, or otherwise reduced
total forest emissions, the Administrator may apply a discount to
forest carbon credits imported into the United States from those
countries.</DELETED>
<DELETED>Subtitle I--Covered Facilities</DELETED>
<DELETED>SEC. 3901. ALLOCATION.</DELETED>
<DELETED> Not later than April 1, 2012, and annually thereafter
through January 1, 2035, the Administrator shall allocate percentages
of the Emission Allowance Account for the calendar year to owners or
operators of covered facilities within the electric power sector and
the industrial sector, as follows:</DELETED>
----------------------------------------------------------------------------------------------------------------
Percentage of Emission Allowance Percentage of Emission Allowance
Calendar Account Allocated to the Electric Account Allocated to the Industrial
Power Sector Sector
----------------------------------------------------------------------------------------------------------------
2012 20 20
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2013 20 20
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2014 20 20
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2015 20 20
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2016 20 20
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2017 19 19
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2018 18 18
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2019 17 17
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2020 16 16
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2021 15 15
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2022 14 14
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2023 13 13
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2024 12 12
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2025 11 11
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2026 10 10
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2027 9 9
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2028 8 8
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2029 7 7
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2030 6 6
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2031 5 5
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2032 4 4
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2033 3 3
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2034 2 2
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2035 1 1
----------------------------------------------------------------------------------------------------------------
<DELETED>SEC. 3902. DISTRIBUTION SYSTEM.</DELETED>
<DELETED> Not later than 1 year after the date of enactment of this
Act, the Administrator shall establish a system for distributing to
covered facilities within the electric power and industrial sectors the
emission allowances allocated under section 3901.</DELETED>
<DELETED>SEC. 3903. DISTRIBUTING EMISSION ALLOWANCES WITHIN THE
ELECTRIC POWER SECTOR.</DELETED>
<DELETED> (a) New Entrants.--</DELETED>
<DELETED> (1) In general.--As part of the system established
under section 3902, the Administrator shall, for each calendar
year, set aside, from the quantity of emission allowances
represented by the percentages described in the table contained
in section 3901 for the electric power sector, a quantity of
emission allowances for distribution to new entrant covered
electric power sector facilities.</DELETED>
<DELETED> (2) Calculation of allowances.--The quantity of
emission allowances distributed by the Administrator for a
calendar year to a new covered electric power sector facility
under paragraph (1) shall be equal to the product obtained by
multiplying--</DELETED>
<DELETED> (A) the average greenhouse gas emission
rate of all covered electric power sector facilities
that commenced operations during the 5 years preceding
the date of enactment of this Act; and</DELETED>
<DELETED> (B) the electricity generated by the
facility during the calendar year, adjusted downward on
a pro rata basis for each new facility in the event
that insufficient allowances are available under
section 3901 for a calendar year.</DELETED>
<DELETED> (b) Facilities Owned by a Rural Electric Cooperative.--
</DELETED>
<DELETED> (1) In general.--As part of the system established
under section 3902, the Administrator shall, for each calendar
year, set aside, from the quantity of emission allowances
represented by the percentages described in the table contained
in section 3901 for the electric power sector, a quantity of
emission allowances for distribution to covered electric power
sector facilities that are owned or operated by a rural
electric cooperative.</DELETED>
<DELETED> (2) Calculation of allowances.--The quantity of
emission allowances distributed by the Administrator in a
calendar year under paragraph (1) to a covered electric power
sector facility that is owned or operated by a rural electric
cooperative shall be equal to the quantity of carbon dioxide
equivalents that the covered electric power sector facility
emitted during calendar year 2006.</DELETED>
<DELETED> (c) Incumbents.--</DELETED>
<DELETED> (1) In general.--As part of the system established
under section 3902, the Administrator shall, for each calendar
year, distribute to covered electric power sector facilities
(other than facilities owned or operated by a rural electric
cooperative) that were operating during the calendar year
preceding the year in which this Act was enacted the emission
allowances represented by the percentages described in the
table contained in section 3901 for the electric power sector
that remain after the distribution of emission allowances under
subsections (a) and (b).</DELETED>
<DELETED> (2) Calculation of allowances.--The quantity of
emission allowances distributed to a covered electric power
sector facility under paragraph (1) shall be equal to the
product obtained by multiplying--</DELETED>
<DELETED> (A) the quantity of emission allowances
available for distribution under paragraph (1);
and</DELETED>
<DELETED> (B) the quotient obtained by dividing--
</DELETED>
<DELETED> (i) the annual average quantity of
carbon dioxide equivalents emitted by the
covered electric power sector facility during
the 3 calendar years preceding the date of
enactment of this Act; by</DELETED>
<DELETED> (ii) the annual average of the
aggregate quantity of carbon dioxide
equivalents emitted by all covered electric
power sector facilities during those 3 calendar
years.</DELETED>
<DELETED>SEC. 3904. DISTRIBUTING EMISSION ALLOWANCES WITHIN THE
INDUSTRIAL SECTOR.</DELETED>
<DELETED> (a) New Entrants.--</DELETED>
<DELETED> (1) In general.--As part of the system established
under section 3902, the Administrator shall, for each calendar
year, set aside, from the quantity of emission allowances
represented by the percentages described in the table contained
in section 3901 for the industrial sector, a quantity of
emission allowances for distribution to new entrant covered
industrial sector facilities.</DELETED>
<DELETED> (2) Calculation of allowances.--The quantity of
emission allowances distributed by the Administrator in a
calendar year to a new covered industrial sector facility under
paragraph (1) shall be calculated pursuant to such formula as
shall be established under the system established under section
3902.</DELETED>
<DELETED> (b) Incumbents.--</DELETED>
<DELETED> (1) In general.--As part of the system established
under section 3902, the Administrator shall, for each calendar
year, distribute to covered industrial sector facilities that
were operating during the calendar year preceding the year in
which this Act was enacted the emission allowances represented
by the percentages described in the table contained in section
3901 for the industrial sector that remain after the
distribution of emission allowances under subsection
(a).</DELETED>
<DELETED> (2) Calculation of allowances.--The quantity of
emission allowances distributed to a covered industrial sector
facility under paragraph (1) shall be equal to the product
obtained by multiplying--</DELETED>
<DELETED> (A) the quantity of emission allowances
available for distribution under paragraph (1);
and</DELETED>
<DELETED> (B) the quotient obtained by dividing--
</DELETED>
<DELETED> (i) the annual average quantity of
carbon dioxide equivalents emitted by the
covered industrial sector facility during the 3
calendar years preceding the date of enactment
of this Act; by</DELETED>
<DELETED> (ii) the annual average of the
aggregate quantity of carbon dioxide
equivalents emitted by all covered industrial
sector facilities during those 3 calendar
years.</DELETED>
<DELETED> (c) Revocation of Distribution Upon Facility Shutdown.--If
a covered facility within the industrial sector receives a distribution
of emission allowances under this section for a calendar year and is
subsequently permanently shut down during that calendar year, the owner
or operator of the facility shall promptly return to the Administrator
a number of emission allowances equal to the difference between--
</DELETED>
<DELETED> (1) the number of carbon dioxide equivalents
emitted by the facility in that calendar year prior to the
shutdown; and</DELETED>
<DELETED> (2) the number of emission allowances distributed
to the facility by the Administrator for that calendar
year.</DELETED>
<DELETED>TITLE IV--AUCTIONS AND USES OF AUCTION PROCEEDS</DELETED>
<DELETED>Subtitle A--Funds</DELETED>
<DELETED>SEC. 4101. ESTABLISHMENT.</DELETED>
<DELETED> There are established in the Treasury of the United States
the following funds:</DELETED>
<DELETED> (1) The Energy Assistance Fund.</DELETED>
<DELETED> (2) The Climate Change Worker Training
Fund.</DELETED>
<DELETED> (3) The Adaptation Fund.</DELETED>
<DELETED> (4) The Climate Change and National Security
Fund.</DELETED>
<DELETED>SEC. 4102. AMOUNTS IN FUNDS.</DELETED>
<DELETED> Each Fund established by section 4101 shall consist of
such amounts as are appropriated to the respective Fund under section
4103.</DELETED>
<DELETED>SEC. 4103. TRANSFERS TO FUNDS.</DELETED>
<DELETED> There are appropriated to each Fund established by section
4101, out of funds of the Treasury not otherwise appropriated, amounts
equivalent to amounts deposited in each respective Fund under section
4302(b)(2).</DELETED>
<DELETED>Subtitle B--Climate Change Credit Corporation</DELETED>
<DELETED>SEC. 4201. ESTABLISHMENT.</DELETED>
<DELETED> (a) In General.--There is established, as a nonprofit
corporation without stock, a corporation to be known as the ``Climate
Change Credit Corporation''.</DELETED>
<DELETED> (b) Treatment.--The Corporation shall not be considered to
be an agency or establishment of the Federal Government.</DELETED>
<DELETED>SEC. 4202. APPLICABLE LAWS.</DELETED>
<DELETED> The Corporation shall be subject to this title and, to the
extent consistent with this title, the District of Columbia Business
Corporation Act (D.C. Code section 29-301 et seq.).</DELETED>
<DELETED>SEC. 4203. BOARD OF DIRECTORS.</DELETED>
<DELETED> (a) In General.--The Corporation shall have a board of
directors composed of 5 individuals who are citizens of the United
States, of whom 1 shall be elected annually by the board to serve as
Chairperson.</DELETED>
<DELETED> (b) Political Affiliation.--Not more than 3 members of the
board serving at any time may be affiliated with the same political
party.</DELETED>
<DELETED> (c) Appointment and Term.--A member of the board shall be
appointed by the President, by and with the advice and consent of the
Senate, for a term of 5 years.</DELETED>
<DELETED> (d) Quorum.--Three members of the board shall constitute a
quorum for a meeting of the board of directors.</DELETED>
<DELETED>Subtitle C--Auctions</DELETED>
<DELETED>SEC. 4301. EARLY AUCTIONS.</DELETED>
<DELETED> (a) Initiation of Auctioning.--Not later than 1 year after
the date of enactment of this Act, the Corporation shall begin
auctioning the emission allowances allocated to the Corporation under
section 3101.</DELETED>
<DELETED> (b) Completion of Auctioning.--Not later than December 31,
2011, the Corporation shall complete auctioning of all allowances
allocated to the Corporation under section 3101.</DELETED>
<DELETED> (c) Proceeds From Early Auctioning.--The Corporation shall
use to carry out programs established under subtitle D all proceeds of
early auctioning conducted by the Corporation under this
section.</DELETED>
<DELETED>SEC. 4302. ANNUAL AUCTIONS.</DELETED>
<DELETED> (a) In General.--Not later than 30 days after the
beginning of a calendar year identified in the table contained in
section 3201, and annually thereafter through calendar year 2050, the
Corporation shall auction all of the allowances allocated to the
Corporation for that year by the Administrator under section
3201.</DELETED>
<DELETED> (b) Proceeds From Annual Auctioning.--</DELETED>
<DELETED> (1) In general.--For each of calendar years 2012
through 2050, the Corporation shall use to carry out the
programs established under subtitle D 55 percent of the
proceeds from annual auctions that the Corporation conducts for
the calendar year under this section.</DELETED>
<DELETED> (2) Deposit of funds.--For each of calendar years
2012 through 2050, the Corporation shall, subject to subtitle
H, deposit into the following Funds established by section 4101
the following percentages of the proceeds from auctions that
the Corporation conducts for the calendar year under this
section:</DELETED>
Energy Assistance Fund 20
Climate Change Worker Training Fund.... 5
Adaptation Fund........................ 20
<DELETED>Subtitle D--Energy Technology Deployment</DELETED>
<DELETED>SEC. 4401. IN GENERAL.</DELETED>
<DELETED> For each calendar year, the Corporation shall use the
amounts described in section 4301(c) and 4302(b) to carry out the
programs established under this subtitle, as follows:</DELETED>
<DELETED> (1) Not more than 45 percent of the funds shall be
used to carry out the zero- or low-carbon energy technologies
program under section 4402.</DELETED>
<DELETED> (2) Not more than 35 percent of the funds shall be
used as follows:</DELETED>
<DELETED> (A) Not more than 28 percent shall be used
to carry out the advanced coal and sequestration
technologies program under section 4403.</DELETED>
<DELETED> (B) Not more than 7 percent shall be used
to carry out the cellulosic biomass ethanol technology
deployment programs under section 4404.</DELETED>
<DELETED> (3) Not more than 20 percent shall be used to
carry out the advanced technology vehicles manufacturing
incentive program under section 4405.</DELETED>
<DELETED>SEC. 4402. ZERO- OR LOW-CARBON ENERGY TECHNOLOGIES
DEPLOYMENT.</DELETED>
<DELETED> (a) Definitions.--In this section:</DELETED>
<DELETED> (1) Energy savings.--The term ``energy savings''
means megawatt-hours of electricity or million British thermal
units of natural gas saved by a product, in comparison to
projected energy consumption under an energy-efficiency
standard applicable to the product.</DELETED>
<DELETED> (2) High-efficiency consumer product.--The term
``high-efficiency consumer product'' means a covered product to
which an energy conservation standard applies under section 325
of the Energy Policy and Conservation Act (42 U.S.C. 6295), if
the energy efficiency of the product exceeds the energy
efficiency required under the standard.</DELETED>
<DELETED> (3) Zero- or low-carbon generation.--The term
``zero- or low-carbon generation'' means generation of
electricity by an electric generation unit that--</DELETED>
<DELETED> (A) emits no carbon dioxide into the
atmosphere, or is fossil-fuel fired and emits into the
atmosphere not more than 250 pounds of carbon dioxide
per megawatt-hour (after adjustment for any carbon
dioxide from the unit that is geologically
sequestered); and</DELETED>
<DELETED> (B) was placed into commercial service
after the date of enactment of this Act.</DELETED>
<DELETED> (b) Financial Incentives Program.--During each fiscal year
beginning on or after October 1, 2008, the Corporation shall
competitively award financial incentives under this subsection in the
technology categories of--</DELETED>
<DELETED> (1) the production of electricity from new zero-
or low-carbon generation; and</DELETED>
<DELETED> (2) the manufacture of high-efficiency consumer
products.</DELETED>
<DELETED> (c) Requirements.--</DELETED>
<DELETED> (1) In general.--The Corporation shall make awards
under this section to producers of new zero- or low-carbon
generation and to manufacturers of high-efficiency consumer
products--</DELETED>
<DELETED> (A) in the case of producers of new zero-
or low-carbon generation, based on the bid of each
producer in terms of dollars per megawatt-hour of
electricity generated; and</DELETED>
<DELETED> (B) in the case of manufacturers of high-
efficiency consumer products, based on the bid of each
manufacturer in terms of dollars per megawatt-hour or
million British thermal units saved.</DELETED>
<DELETED> (2) Acceptance of bids.--</DELETED>
<DELETED> (A) In general.--In making awards under
this subsection, the Corporation shall--</DELETED>
<DELETED> (i) solicit bids for reverse
auction from appropriate producers and
manufacturers, as determined by the
Corporation; and</DELETED>
<DELETED> (ii) award financial incentives to
the producers and manufacturers that submit the
lowest bids that meet the requirements
established by the Corporation.</DELETED>
<DELETED> (B) Factors for conversion.--</DELETED>
<DELETED> (i) In general.--For the purpose
of assessing bids under subparagraph (A), the
Corporation shall specify a factor for
converting megawatt-hours of electricity and
million British thermal units of natural gas to
common units.</DELETED>
<DELETED> (ii) Requirement.--The conversion
factor shall be based on the relative
greenhouse gas emission benefits of electricity
and natural gas conservation.</DELETED>
<DELETED> (d) Forms of Awards.--</DELETED>
<DELETED> (1) Zero- and low-carbon generators.--An award for
zero- or low-carbon generation under this subsection shall be
in the form of a contract to provide a production payment for
each year during the first 10 years of commercial service of
the generation unit in an amount equal to the product obtained
by multiplying--</DELETED>
<DELETED> (A) the amount bid by the producer of the
zero- or low-carbon generation; and</DELETED>
<DELETED> (B) the megawatt-hours estimated to be
generated by the zero- or low-carbon generation unit
each year.</DELETED>
<DELETED> (2) High-efficiency consumer products.--An award
for a high-efficiency consumer product under this subsection
shall be in the form of a lump sum payment in an amount equal
to the product obtained by multiplying--</DELETED>
<DELETED> (A) the amount bid by the manufacturer of
the high-efficiency consumer product; and</DELETED>
<DELETED> (B) the energy savings during the
projected useful life of the high-efficiency consumer
product, not to exceed 10 years, as determined by the
Corporation.</DELETED>
<DELETED>SEC. 4403. ADVANCED COAL AND SEQUESTRATION TECHNOLOGIES
PROGRAM.</DELETED>
<DELETED> (a) Advanced Coal Technologies.--</DELETED>
<DELETED> (1) Definition of advanced coal generation
technology.--In this subsection, the term ``advanced coal
generation technology'' means advanced a coal-fueled power
plant technology that--</DELETED>
<DELETED> (A) achieves a minimum efficiency of 30
percent with respect to higher heating value of the
feedstock, after all parasitic requirements for carbon
dioxide capture and compression to 2,000 pounds per
square inch absolute have been subtracted;</DELETED>
<DELETED> (B) provides for the capture and
geological sequestration of at least 85 percent of
carbon dioxide produced at the facility, as determined
by the Corporation; and</DELETED>
<DELETED> (C) has an emission rate of not more than
250 pounds of carbon dioxide per megawatt-hour of net
electricity generation, after subtracting the carbon
dioxide that is captured and sequestered.</DELETED>
<DELETED> (2) Demonstration projects.--The Corporation shall
use not less than </DELETED>\<DELETED>1/4</DELETED>\
<DELETED>of the amounts made available to carry out this
section for each fiscal year to support demonstration projects
using advanced coal generation technology, including retrofit
technology that could be deployed on existing coal generation
facilities.</DELETED>
<DELETED> (3) Deployment incentives.--</DELETED>
<DELETED> (A) In general.--The Corporation shall use
not less than </DELETED>\<DELETED>1/4</DELETED>\
<DELETED>of the amounts made available to carry out
this subsection for each fiscal year to provide Federal
financial incentives to facilitate the deployment of
not more than 20 gigawatts of advanced coal generation
technologies.</DELETED>
<DELETED> (B) Administration.--In providing
incentives under this paragraph, the Corporation
shall--</DELETED>
<DELETED> (i) provide appropriate incentives
for regulated investor-owned utilities,
municipal utilities, electric cooperatives, and
independent power producers, as determined by
the Secretary of Energy; and</DELETED>
<DELETED> (ii) ensure that a range of the
domestic coal types is employed in the
facilities that receive incentives under this
paragraph.</DELETED>
<DELETED> (C) Funding requirements.--</DELETED>
<DELETED> (i) Sequestration activities.--The
Corporation shall provide incentives only to
projects that will capture and sequester at
least 85 percent of the carbon dioxide produced
by the project facilities.</DELETED>
<DELETED> (ii) Storage agreement required.--
The Corporation shall require a binding storage
agreement for the carbon dioxide captured in a
project under this subsection, in a geological
storage project permitted by the Administrator
under regulations promulgated pursuant to
section 1421(d) of the Safe Drinking Water Act
(42 U.S.C. 300h(d)).</DELETED>
<DELETED> (iii) Projects using certain
coals.--In providing incentives under this
paragraph, the Corporation shall set aside not
less than 25 percent of any amounts made
available to carry out this subsection for
projects using lower-rank coals, such as
subbituminous coal and lignite.</DELETED>
<DELETED> (4) Distribution of funds.--A project that
receives an award under this subsection may elect 1 of the
following Federal financial incentives:</DELETED>
<DELETED> (A) A loan guarantee.</DELETED>
<DELETED> (B) A cost-sharing grant to cover the
incremental cost of installing and operating carbon
capture and storage equipment (for which utilization
costs may be covered for the first 10 years of
operation).</DELETED>
<DELETED> (C) Production payments of not more than
1.5 cents per kilowatt-hour of electric output during
the first 10 years of commercial service of the
project.</DELETED>
<DELETED> (5) Limitation.--A project may not receive an
award under this subsection if the project receives an award
under section 4402.</DELETED>
<DELETED> (b) Sequestration.--</DELETED>
<DELETED> (1) In general.--The Corporation shall use not
less than </DELETED>\<DELETED>1/2</DELETED>\ <DELETED>of the
amounts made available to carry out this subsection for each
fiscal year for large-scale geological carbon storage
demonstration projects that store carbon dioxide captured from
facilities for the generation of electricity using coal
gasification or other advanced coal combustion processes,
including facilities that receive assistance under subsection
(a).</DELETED>
<DELETED> (2) Project capital and operating costs.--The
Corporation shall provide assistance under this paragraph to
reimburse the project owner for a percentage of the incremental
project capital and operating costs of the project that are
attributable to carbon capture and sequestration, as the
Secretary determines to be appropriate.</DELETED>
<DELETED>SEC. 4404. FUEL FROM CELLULOSIC BIOMASS.</DELETED>
<DELETED> (a) In General.--The Corporation shall provide deployment
incentives under this section to encourage a variety of projects to
produce transportation fuels from cellulosic biomass, relying on
different feedstocks in different regions of the United
States.</DELETED>
<DELETED> (b) Project Eligibility.--Incentives under this section
shall be provided on a competitive basis to projects that produce fuels
that--</DELETED>
<DELETED> (1) meet United States fuel and emission
specifications;</DELETED>
<DELETED> (2) help diversify domestic transportation energy
supplies; and</DELETED>
<DELETED> (3) improve or maintain air, water, soil, and
habitat quality, and protect scarce water supplies.</DELETED>
<DELETED> (c) Incentives.--Incentives under this section may consist
of--</DELETED>
<DELETED> (1) loan guarantees for the construction of
production facilities and supporting infrastructure;
or</DELETED>
<DELETED> (2) production payments through a reverse auction
in accordance with subsection (d).</DELETED>
<DELETED> (d) Reverse Auction.--</DELETED>
<DELETED> (1) In general.--In providing incentives under
this section, the Corporation shall--</DELETED>
<DELETED> (A) prescribe rules under which producers
of fuel from cellulosic biomass may bid for production
payments under subsection (c)(2); and</DELETED>
<DELETED> (B) solicit bids from producers of
different classes of transportation fuel, as the
Corporation determines to be appropriate.</DELETED>
<DELETED> (2) Requirement.--The rules under section 4402
shall require that incentives shall be provided to the
producers that submit the lowest bid (in terms of cents per
gallon gasoline equivalent) for each class of transportation
fuel from which the Corporation solicits a bid.</DELETED>
<DELETED>SEC. 4405. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING
INCENTIVE PROGRAM.</DELETED>
<DELETED> (a) Definitions.--In this section:</DELETED>
<DELETED> (1) Advanced technology vehicle.--The term
``advanced technology vehicle'' means a hybrid or advanced
diesel light duty motor vehicle that meets--</DELETED>
<DELETED> (A) the Tier II Bin 5 emission standard
established in rules prescribed by the Administrator
under section 202(i) of the Clean Air Act (42 U.S.C.
7521(i)), or a lower-numbered Bin emission
standard;</DELETED>
<DELETED> (B) any new emission standard for fine
particulate matter prescribed by the Administrator
under that Act; and</DELETED>
<DELETED> (C) at least 125 percent of the average
base year combined fuel economy, calculated on an
energy-equivalent basis, for vehicles of a
substantially similar footprint.</DELETED>
<DELETED> (2) Combined fuel economy.--The term ``combined
fuel economy'' means--</DELETED>
<DELETED> (A) the combined city-highway miles per
gallon values, as reported in accordance with section
32908 of title 49, United States Code; and</DELETED>
<DELETED> (B) in the case of an electric drive
vehicle with the ability to recharge from an off-board
source, the reported mileage, as determined in a manner
consistent with the Society of Automotive Engineers
recommended practice for that configuration, or a
similar practice recommended by the Secretary of
Energy, using a petroleum equivalence factor for the
off-board electricity (as defined by the Secretary of
Energy).</DELETED>
<DELETED> (3) Engineering integration costs.--The term
``engineering integration costs'' includes the cost of
engineering tasks relating to--</DELETED>
<DELETED> (A) incorporating qualifying components
into the design of advanced technology vehicles;
and</DELETED>
<DELETED> (B) designing new tooling and equipment
for production facilities that produce qualifying
components or advanced technology vehicles.</DELETED>
<DELETED> (4) Qualifying component.--The term ``qualifying
component'' means a component that the Secretary of Energy
determines to be--</DELETED>
<DELETED> (A) specially designed for advanced
technology vehicles; and</DELETED>
<DELETED> (B) installed for the purpose of meeting
the performance requirements of advanced technology
vehicles as specified in subparagraphs (A), (B), and
(C) of paragraph (1).</DELETED>
<DELETED> (b) Manufacturer Facility Conversion Awards.--The
Corporation shall provide facility conversion funding awards under this
subsection to automobile manufacturers and component suppliers to pay
up to 30 percent of the cost of--</DELETED>
<DELETED> (1) reequipping or expanding an existing
manufacturing facility to produce--</DELETED>
<DELETED> (A) qualifying advanced technology
vehicles; or</DELETED>
<DELETED> (B) qualifying components; and</DELETED>
<DELETED> (2) engineering integration of qualifying vehicles
and qualifying components.</DELETED>
<DELETED> (c) Period of Availability.--An award under subsection (b)
shall apply to--</DELETED>
<DELETED> (1) facilities and equipment placed in service
after the date of enactment of this Act and before January 1,
2016; and</DELETED>
<DELETED> (2) engineering integration costs incurred after
the date of enactment of this Act.</DELETED>
<DELETED>Subtitle E--Energy Consumers</DELETED>
<DELETED>SEC. 4501. PROPORTIONS OF FUNDING AVAILABILITY.</DELETED>
<DELETED> All funds deposited into the Energy Assistance Fund
established by section 4101 shall be made available, without further
appropriation or fiscal year limitation, to the following programs in
the following proportions:</DELETED>
<DELETED> (1) 50 percent of the funds to the low-income home
energy assistance program established under the Low Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8621 et
seq.).</DELETED>
<DELETED> (2) 25 percent of the funds to the Weatherization
Assistance Program for Low-Income Persons established under
part A of title IV of the Energy Conservation and Production
Act (42 U.S.C. 6861 et seq.).</DELETED>
<DELETED> (3) 25 percent of the funds to the rural energy
assistance program described in section 4502.</DELETED>
<DELETED>SEC. 4502. RURAL ENERGY ASSISTANCE PROGRAM.</DELETED>
<DELETED> The Secretary of Energy shall carry out a program to use
the funds made available under section 4501(3) to provide financial
assistance to promote the availability of reasonably-priced electricity
in off-grid rural regions in which electricity prices exceed 150
percent of the national average, as determined by the Secretary of
Energy.</DELETED>
<DELETED>Subtitle F--Climate Change Worker Training Program</DELETED>
<DELETED>SEC. 4601. FUNDING.</DELETED>
<DELETED> All funds deposited into the Climate Change Worker
Training Fund established by section 4101 shall be made available,
without further appropriation or fiscal year limitation, to carry out
the programs established under this subtitle.</DELETED>
<DELETED>SEC. 4602. PURPOSES.</DELETED>
<DELETED> The purposes of this subtitle are--</DELETED>
<DELETED> (1) to provide quality job training to any workers
displaced by this Act;</DELETED>
<DELETED> (2) to provide assistance in the form of temporary
wages and health care benefits to workers in
training;</DELETED>
<DELETED> (3) to transition workers into jobs created as a
result of this Act;</DELETED>
<DELETED> (4) to provide skilled workers to enterprises
developing and marketing advanced technologies and practices
that reduce greenhouse gas emissions of the United States;
and</DELETED>
<DELETED> (5) to provide funding for State worker training
programs.</DELETED>
<DELETED>SEC. 4603. ESTABLISHMENT.</DELETED>
<DELETED> Not later than 180 days after the date of enactment of
this Act, the Secretary of Labor, in consultation with the
Administrator and the Secretary of Energy, shall establish a climate
change worker training program that achieves the purposes of this
subtitle.</DELETED>
<DELETED>SEC. 4604. GRANTS TO STATES.</DELETED>
<DELETED> Not later than 1 year after the date of enactment of this
Act, the Secretary of Labor shall establish a program to award grants
to States, for use in funding State worker training programs, based on
the impact of this Act on the workforce of each State, as determined by
the Secretary of Labor.</DELETED>
<DELETED>SEC. 4605. TYPES OF ASSISTANCE.</DELETED>
<DELETED> The types of assistance that workers may receive under the
climate change worker training program shall include, as determined by
the Secretary of Labor--</DELETED>
<DELETED> (1) income replacement;</DELETED>
<DELETED> (2) health care credits;</DELETED>
<DELETED> (3) travel costs incidental to participation in a
training program under this subtitle; and</DELETED>
<DELETED> (4) a portion of the cost of relocating to a new
job.</DELETED>
<DELETED>Subtitle G--Adaptation Program for Natural Resources in United
States and Territories</DELETED>
<DELETED>SEC. 4701. DEFINITIONS.</DELETED>
<DELETED> In this subtitle:</DELETED>
<DELETED> (1) Ecological process.--</DELETED>
<DELETED> (A) In general.--The term ``ecological
process'' means a biological, chemical, or physical
interaction between the biotic and abiotic components
of an ecosystem.</DELETED>
<DELETED> (B) Inclusions.--The term ``ecological
process'' includes--</DELETED>
<DELETED> (i) nutrient cycling;</DELETED>
<DELETED> (ii) pollination;</DELETED>
<DELETED> (iii) predator-prey
relationships;</DELETED>
<DELETED> (iv) soil formation;</DELETED>
<DELETED> (v) gene flow;</DELETED>
<DELETED> (vi) larval dispersal and
settlement;</DELETED>
<DELETED> (vii) hydrological
cycling;</DELETED>
<DELETED> (viii) decomposition;
and</DELETED>
<DELETED> (ix) disturbance regimes, such as
fire and flooding.</DELETED>
<DELETED> (2) Fish and wildlife.--The term ``fish and
wildlife'' means--</DELETED>
<DELETED> (A) any species of wild fauna, including
fish and other aquatic species; and</DELETED>
<DELETED> (B) any fauna in a captive breeding
program the object of which is to reintroduce
individuals of a depleted indigenous species into
previously occupied range.</DELETED>
<DELETED> (3) Habitat.--The term ``habitat'' means the
physical, chemical, and biological properties that are used by
wildlife (including aquatic and terrestrial plant communities)
for growth, reproduction, and survival, food, water, cover, and
space, on a tract of land, in a body of water, or in an area or
region.</DELETED>
<DELETED> (4) Indian tribe.--The term ``Indian tribe'' has
the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b).</DELETED>
<DELETED> (5) Plant.--The term ``plant'' means any species
of wild flora.</DELETED>
<DELETED> (6) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.</DELETED>
<DELETED> (7) State.--The term ``State'' means--</DELETED>
<DELETED> (A) a State;</DELETED>
<DELETED> (B) the District of Columbia;</DELETED>
<DELETED> (C) the Commonwealth of Puerto Rico;
and</DELETED>
<DELETED> (D) any other territory or possession of
the United States.</DELETED>
<DELETED>SEC. 4702. ADAPTATION FUND.</DELETED>
<DELETED> (a) In General.--All amounts deposited in the Adaptation
Fund established by section 4101 shall be made available, without
further appropriation or fiscal year limitation, to carry out
activities (including research and education activities) that assist
fish and wildlife, fish and wildlife habitat, plants, and associated
ecological processes in adapting to and surviving the impacts of
climate change (referred to in this subtitle as ``adaptation
activities'') pursuant to this subtitle.</DELETED>
<DELETED> (b) Department of the Interior.--Of the amounts made
available to carry out this subtitle--</DELETED>
<DELETED> (1) 40 percent shall be allocated to the
Secretary, and subsequently made available to States through
the Wildlife Conservation and Restoration Account established
under section 3(a)(2) of the Pittman-Robertson Wildlife
Restoration Act (16 U.S.C. 669b(a)(2)), to carry out adaptation
activities in accordance with comprehensive wildlife
conservation strategies and, where appropriate, other fish and
wildlife conservation strategies, including--</DELETED>
<DELETED> (A) plans under the National Fish Habitat
Initiative of the National Fish and Wildlife
Foundation;</DELETED>
<DELETED> (B) North American Wetlands Conservation
Act (16 U.S.C. 4401 et seq.);</DELETED>
<DELETED> (C) the Federal, State, and local
partnership known as ``Partners in Flight'';</DELETED>
<DELETED> (D) coastal zone management
plans;</DELETED>
<DELETED> (E) regional fishery management plans;
and</DELETED>
<DELETED> (F) recovery plans for threatened and
endangered species under section 6 of the Endangered
Species Act of 1973 (16 U.S.C. 1535);</DELETED>
<DELETED> (2) 20 percent shall be allocated to the Secretary
for use in funding adaptation activities carried out--
</DELETED>
<DELETED> (A) under endangered species, migratory
bird, and other fish and wildlife programs administered
by the United States Fish and Wildlife
Service;</DELETED>
<DELETED> (B) on wildlife refuges and other public
land under the jurisdiction of the United States Fish
and Wildlife Service, Bureau of Land Management, or
National Park Service; or</DELETED>
<DELETED> (C) within Federal water managed by the
Bureau of Reclamation; and</DELETED>
<DELETED> (3) 5 percent shall be allocated to the Secretary
for adaptation activities carried out under cooperative grant
programs, including--</DELETED>
<DELETED> (A) the Tribal Wildlife Grants program of
the United States Fish and Wildlife Service;</DELETED>
<DELETED> (B) the cooperative endangered species
conservation fund authorized under section 6(i) of the
Endangered Species Act of 1973 (16 U.S.C.
1535(i));</DELETED>
<DELETED> (C) programs under the North American
Wetlands Conservation Act (16 U.S.C. 4401 et
seq.);</DELETED>
<DELETED> (D) the Land and Water Conservation Fund
established under section 2 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-
5);</DELETED>
<DELETED> (E) the multinational species conservation
fund established under the heading ``multinational
species conservation fund'' of title I of the
Department of the Interior and Related Agencies
Appropriations Act, 1999 (16 U.S.C. 4246);</DELETED>
<DELETED> (F) the Neotropical Migratory Bird
Conservation Fund established by section 9(a) of the
Neotropical Migratory Bird Conservation Act (16 U.S.C.
6108(a));</DELETED>
<DELETED> (G) the Coastal Program of the United
States Fish and Wildlife Service; and</DELETED>
<DELETED> (H) the National Fish Habitat Action
Plan.</DELETED>
<DELETED> (c) Forest Service.--Of the amounts made available each
fiscal year to carry out this subtitle, 5 percent shall be allocated to
the Secretary of Agriculture for use in funding adaptation activities
carried out on National Forests and National Grasslands under the
jurisdiction of the Forest Service.</DELETED>
<DELETED> (d) Environmental Protection Agency.--Of the amounts made
available to carry out this subtitle, 12.5 percent shall be allocated
to the Administrator for use in restoring and protecting--</DELETED>
<DELETED> (1) large-scale freshwater aquatic ecosystems,
such as the Everglades, the Great Lakes, Flathead Lake, the
Missouri River, and the Yellowstone River; and</DELETED>
<DELETED> (2) large-scale estuarine ecosystems, such as
Chesapeake Bay and Long Island Sound.</DELETED>
<DELETED> (e) Corps of Engineers.--Of the amounts made available to
carry out this subtitle, 12.5 percent shall be allocated to the Corps
of Engineers for use in restoring--</DELETED>
<DELETED> (1) large-scale freshwater aquatic ecosystems,
such as the ecosystems described in subsection (d)(1);
and</DELETED>
<DELETED> (2) large-scale estuarine ecosystems, such as
Chesapeake Bay, California Bay Delta, Coastal Louisiana, Long
Island Sound, and Puget Sound.</DELETED>
<DELETED> (f) Department of Commerce.--Of the amounts made available
to carry out this subtitle, 5 percent shall be allocated to the
Secretary of Commerce for use in funding adaptation activities carried
out in protecting and restoring coastal, estuarine, coral, and marine
species and habitats, including adaptation activities in cooperative
grant programs such as--</DELETED>
<DELETED> (1) the Coastal and Estuarine Land Conservation
Program and the Community-Based Restoration Program of the
National Oceanic and Atmospheric Administration; and</DELETED>
<DELETED> (2) programs under the Coastal Zone Management Act
of 1972 (16 U.S.C. 1451 et seq.).</DELETED>
<DELETED> (g) Cost Sharing.--Notwithstanding any other provision of
law, a State or Indian tribe that receives a grant under this section
shall be required to provide 10 percent of the costs of each activity
carried out using funds from the grant.</DELETED>
<DELETED> (h) Comprehensive Adaptation Strategy.--</DELETED>
<DELETED> (1) In general.--Effective beginning on the date
that is 18 months after the date of enactment of this Act,
funds made available to the Federal agencies under this
subtitle shall be used only for activities that are consistent
with a comprehensive adaptation strategy that--</DELETED>
<DELETED> (A) is jointly approved by the head of
each of the Federal agencies, after--</DELETED>
<DELETED> (i) consultation with States and
Indian tribes; and</DELETED>
<DELETED> (ii) solicitation of public and
independent scientific input; and</DELETED>
<DELETED> (B) describes the manner in which the
Federal Government will assist fish and wildlife, fish
and wildlife habitat, plants, and associated ecological
processes in adapting to and surviving the impacts of
climate change.</DELETED>
<DELETED> (2) Updating.--Each adaptation strategy described
in paragraph (1) shall be updated at least every 5
years.</DELETED>
<DELETED>Subtitle H--Climate Change and National Security
Program</DELETED>
<DELETED>SEC. 4801. INTERAGENCY CLIMATE CHANGE AND NATIONAL SECURITY
COUNCIL.</DELETED>
<DELETED> (a) Establishment.--There is established a Climate Change
and National Security Council (referred to in this subtitle as the
``Council'').</DELETED>
<DELETED> (b) Membership.--The Council shall include--</DELETED>
<DELETED> (1) the Secretary of State, who shall serve as
Chairperson of the Council;</DELETED>
<DELETED> (2) the Administrator;</DELETED>
<DELETED> (3) the Secretary of Defense; and</DELETED>
<DELETED> (4) the Director of National
Intelligence.</DELETED>
<DELETED> (c) Duties.--The Council shall--</DELETED>
<DELETED> (1) submit annual reports to the President, the
Committees on Environment and Public Works and Foreign
Relations of the Senate, and the Committees on Energy and
Commerce and Foreign Relations of the House of Representatives
that describe--</DELETED>
<DELETED> (A) the extent to which other countries
are committing to reducing greenhouse gas emissions
through mandatory programs;</DELETED>
<DELETED> (B) the extent to which global climate
change, through the potential negative impacts of
climate change on sensitive populations and natural
resources in different regions of the world, may
threaten, cause, or exacerbate political instability or
international conflict in those regions; and</DELETED>
<DELETED> (C) the ramifications of any potentially
destabilizing impacts climate change may have on the
national security of the United States, including--
</DELETED>
<DELETED> (i) the creation of refugees;
and</DELETED>
<DELETED> (ii) international or
intranational conflicts over water, food, land,
or other resources; and</DELETED>
<DELETED> (2) include in each annual report submitted under
paragraph (1) recommendations on whether it is necessary to
enhance the national security of the United States by funding
programs with amounts made available under section 4802 that
the Council determines would assist in avoiding the politically
destabilizing impacts of climate change in volatile regions of
the world.</DELETED>
<DELETED>SEC. 4802. FUNDING.</DELETED>
<DELETED> Upon a determination for any calendar year by the
President, based on any report and recommendations submitted by the
Council under section 4801, that funds should be made available to
carry out the recommendations--</DELETED>
<DELETED> (1) notwithstanding section 4302(b)(2), the
Corporation shall deposit 5 percent of the proceeds from
auctions that the Corporation conducts for that calendar year
under section 4302(a) into the Climate Change and National
Security Fund established by section 4101; and</DELETED>
<DELETED> (2) the President shall use those funds to
implement the recommendations.</DELETED>
<DELETED>Subtitle I--Audits</DELETED>
<DELETED>SEC. 4901. REVIEW AND AUDIT BY COMPTROLLER GENERAL OF THE
UNITED STATES.</DELETED>
<DELETED> Not later than January 1, 2014, and at least every 3 years
thereafter, the Comptroller General of the United States shall review
and audit the expenditures under this title to determine the efficacy
of the programs, expenditures, and projects funded under this
title.</DELETED>
<DELETED>TITLE V--ENERGY EFFICIENCY</DELETED>
<DELETED>Subtitle A--Appliance Efficiency</DELETED>
<DELETED>SEC. 5101. RESIDENTIAL BOILERS.</DELETED>
<DELETED> Section 325(f) of the Energy Policy and Conservation Act
(42 U.S.C. 6925(f)) is amended--</DELETED>
<DELETED> (1) in the subsection heading, by inserting ``and
Boilers'' after ``Furnaces'';</DELETED>
<DELETED> (2) in paragraph (1), by striking ``except that''
and all that follows through subparagraph (A) and inserting
``except that'';</DELETED>
<DELETED> (3) in subparagraph (B)--</DELETED>
<DELETED> (A) by striking ``(B) the Secretary'' and
inserting ``the Secretary''; and</DELETED>
<DELETED> (B) by redesignating clauses (i) through
(iii) as subparagraphs (A) through (C), respectively,
and indenting appropriately;</DELETED>
<DELETED> (4) by redesignating paragraph (3) as paragraph
(4); and</DELETED>
<DELETED> (5) by inserting after paragraph (2) the
following:</DELETED>
<DELETED> ``(3) Boilers.--</DELETED>
<DELETED> ``(A) In general.--Subject to
subparagraphs (B) and (C), boilers manufactured on or
after September 1, 2012, shall meet the following
requirements:</DELETED>
------------------------------------------------------------------------
Minimum
Annual Fuel
``Boiler Type Requirements Utilization Design
Efficiency
------------------------------------------------------------------------
Gas hot water................. 82 percent No constant burning pilot,
automatic means for
adjusting water
temperature
Gas steam..................... 80 percent No constant burning pilot
Oil hot water................. 84 percent Automatic means for
adjusting temperature
Oil steam..................... 82 percent None
Electric hot water............ None Automatic means for
adjusting temperature
Electric steam................ None None
------------------------------------------------------------------------
<DELETED> ``(B) Automatic means for adjusting water
temperature.--</DELETED>
<DELETED> ``(i) In general.--The
manufacturer shall equip each gas, oil, and
electric hot water boiler (other than a boiler
equipped with tankless domestic water heating
coils) with an automatic means for adjusting
the temperature of the water supplied by the
boiler to ensure that an incremental change in
inferred heat load produces a corresponding
incremental change in the temperature of water
supplied.</DELETED>
<DELETED> ``(ii) Certain boilers.--For a
boiler that fires at 1 input rate, the
requirements of this subparagraph may be
satisfied by providing an automatic means that
allows the burner or heating element to fire
only when the means has determined that the
inferred heat load cannot be met by the
residual heat of the water in the
system.</DELETED>
<DELETED> ``(iii) No inferred heat load.--
When there is no inferred heat load with
respect to a hot water boiler, the automatic
means described in clauses (i) and (ii) shall
limit the temperature of the water in the
boiler to not more than 140 degrees
Fahrenheit.</DELETED>
<DELETED> ``(iv) Operation.--A boiler
described in clause (i) or (ii) shall be
operable only when the automatic means
described in clauses (i), (ii), and (iii) is
installed.</DELETED>
<DELETED> ``(C) Exception.--A boiler that is
manufactured to operate without any need for
electricity, any electric connection, any electric
gauges, electric pumps, electric wires, or electric
devices of any sort, shall not be required to meet the
requirements of this subsection.''.</DELETED>
<DELETED>SEC. 5102. REGIONAL VARIATIONS IN HEATING OR COOLING
STANDARDS.</DELETED>
<DELETED> (a) In General.--Section 327 of the Energy Policy and
Conservation Act (42 U.S.C. 6297) is amended--</DELETED>
<DELETED> (1) by redesignating subsections (e), (f), and (g)
as subsections (f), (g), and (h), respectively; and</DELETED>
<DELETED> (2) by inserting after subsection (d) the
following:</DELETED>
<DELETED> ``(e) Regional Standards for Space Heating and Air
Conditioning Products.--</DELETED>
<DELETED> ``(1) Standards.--</DELETED>
<DELETED> ``(A) In general.--The Secretary may
establish regional standards for space heating and air
conditioning products, other than window-unit air-
conditioners and portable space heaters.</DELETED>
<DELETED> ``(B) National minimum and regional
standards.--For each space heating and air conditioning
product, the Secretary may establish--</DELETED>
<DELETED> ``(i) a national minimum standard;
and</DELETED>
<DELETED> ``(ii) 2 more stringent regional
standards for regions determined to have
significantly differing climatic
conditions.</DELETED>
<DELETED> ``(C) Maximum savings.--Any standards
established for a region under subparagraph (B)(ii)
shall achieve the maximum level of energy savings that
are technically feasible and economically justified
within that region.</DELETED>
<DELETED> ``(D) Economic justifiability study.--
</DELETED>
<DELETED> ``(i) In general.--As a
preliminary step in determining the economic
justifiability of establishing a regional
standard under subparagraph (B)(ii), the
Secretary shall conduct a study involving
stakeholders, including--</DELETED>
<DELETED> ``(I) a representative
from the National Institute of
Standards and Technology;</DELETED>
<DELETED> ``(II) representatives of
nongovernmental advocacy
organizations;</DELETED>
<DELETED> ``(III) representatives of
product manufacturers, distributors,
and installers;</DELETED>
<DELETED> ``(IV) representatives of
the gas and electric utility
industries; and</DELETED>
<DELETED> ``(V) such other
individuals as the Secretary may
designate.</DELETED>
<DELETED> ``(ii) Requirements.--The study
under this subparagraph--</DELETED>
<DELETED> ``(I) shall determine the
potential benefits and consequences of
prescribing regional standards for
heating and cooling products;
and</DELETED>
<DELETED> ``(II) may, if favorable
to the standards, constitute the
evidence of economic justifiability
required under this Act.</DELETED>
<DELETED> ``(E) Regional boundaries.--Regional
boundaries used in establishing regional standards
under subparagraph (B)(ii) shall--</DELETED>
<DELETED> ``(i) conform to State borders;
and</DELETED>
<DELETED> ``(ii) include only contiguous
States (other than Alaska and Hawaii), except
that on the request of a State, the Secretary
may divide the State to include a part of the
State in each of 2 regions.</DELETED>
<DELETED> ``(2) Noncomplying products.--If the Secretary
establishes standards for a region, it shall be unlawful under
section 332 to offer for sale at retail, sell at retail, or
install within the region products that do not comply with the
applicable standards.</DELETED>
<DELETED> ``(3) Distribution in commerce.--</DELETED>
<DELETED> ``(A) In general.--Except as provided in
subparagraph (B), no product manufactured in a manner
that complies with a regional standard established
under paragraph (1) shall be distributed in commerce
without a prominent label affixed to the product that
includes--</DELETED>
<DELETED> ``(i) at the top of the label, in
print of not less than 14-point type, the
following statement: `It is a violation of
Federal law for this product to be installed in
any State outside the region shaded on the map
printed on this label.';</DELETED>
<DELETED> ``(ii) below the notice described
in clause (i), an image of a map of the United
States with clearly defined State boundaries
and names, and with all States in which the
product meets or exceeds the standard
established pursuant to paragraph (1) shaded in
a color or a manner as to be easily visible
without obscuring the State boundaries and
names; and</DELETED>
<DELETED> ``(iii) below the image of the map
required under clause (ii), the following
statement: `It is a violation of Federal law
for this label to be removed, except by the
owner and legal resident of any single-family
home in which this product is
installed.'.</DELETED>
<DELETED> ``(B) Energy-efficiency rating.--A product
manufactured that meets or exceeds all regional
standards established under this paragraph shall bear a
prominent label affixed to the product that includes at
the top of the label, in print of not less than 14-
point type, the following statement: `This product has
achieved an energy-efficiency rating under Federal law
allowing its installation in any State.'.</DELETED>
<DELETED> ``(4) Recordkeeping.--A manufacturer of space
heating or air conditioning equipment subject to regional
standards established under this subsection shall--</DELETED>
<DELETED> ``(A) obtain and retain records on the
intended installation locations of the equipment sold;
and</DELETED>
<DELETED> ``(B) make such records available to the
Secretary on request.''.</DELETED>
<DELETED> (b) Conforming Amendments.--Section 327 of the Energy
Policy and Conservation Act (42 U.S.C. 6297) is amended--</DELETED>
<DELETED> (1) in subsection (b)--</DELETED>
<DELETED> (A) in paragraph (2), by striking
``subsection (e)'' and inserting ``subsection (f)'';
and</DELETED>
<DELETED> (B) in paragraph (3)--</DELETED>
<DELETED> (i) by striking ``subsection
(f)(1)'' and inserting ``subsection (g)(1)'';
and</DELETED>
<DELETED> (ii) by striking ``subsection
(f)(2)'' and inserting ``subsection (g)(2)'';
and</DELETED>
<DELETED> (2) in subsection (c)(3), by striking ``subsection
(f)(3)'' and inserting ``subsection (g)(3)''.</DELETED>
<DELETED>Subtitle B--Building Efficiency</DELETED>
<DELETED>SEC. 5201. UPDATING STATE BUILDING ENERGY EFFICIENCY
CODES.</DELETED>
<DELETED> Section 304 of the Energy Conservation and Production Act
(42 U.S.C. 6833) is amended to read as follows:</DELETED>
<DELETED>``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY
CODES.</DELETED>
<DELETED> ``(a) Updates.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall support
updating the national model building energy codes and standards
not later than 3 years after the date of enactment of the
America's Climate Security Act of 2007, and not less frequently
every 3 years thereafter, to achieve overall energy savings, as
compared to the IECC (2006) for residential buildings and
ASHRAE Standard 90.1 (2004) for commercial buildings, of at
least--</DELETED>
<DELETED> ``(A) 30 percent by 2010;</DELETED>
<DELETED> ``(B) 50 percent by 2020; and</DELETED>
<DELETED> ``(C) goals to be established by the
Secretary in intermediate and subsequent years, at the
maximum level of energy efficiency that is
technologically feasible and lifecycle cost
effective.</DELETED>
<DELETED> ``(2) Revisions to iecc and ashrae.--</DELETED>
<DELETED> ``(A) In general.--If the IECC or ASHRAE
Standard 90.1 regarding building energy use is revised,
not later than 180 days after the date of the revision,
the Secretary shall determine whether the revision
will--</DELETED>
<DELETED> ``(i) improve energy efficiency in
buildings; and</DELETED>
<DELETED> ``(ii) meet the energy savings
goals described in paragraph (1).</DELETED>
<DELETED> ``(B) Modifications.--</DELETED>
<DELETED> ``(i) In general.--If the
Secretary makes a determination under
subparagraph (A)(ii) that a code or standard
does not meet the energy savings goals
established under paragraph (1) or if a
national model code or standard is not updated
for more than 3 years, not later than 1 year
after the determination or the expiration of
the 3-year period, the Secretary shall propose
a modified code or standard that meets the
energy savings goals.</DELETED>
<DELETED> ``(ii) Requirements.--</DELETED>
<DELETED> ``(I) Energy savings.--A
modification to a code or standard
under clause (i) shall--</DELETED>
<DELETED> ``(aa) achieve the
maximum level of energy savings
that is technically feasible
and economically justified;
and</DELETED>
<DELETED> ``(bb) incorporate
available appliances,
technologies, and construction
practices.</DELETED>
<DELETED> ``(II) Treatment as
baseline.--A modification to a code or
standard under clause (i) shall serve
as the baseline for the next applicable
determination of the Secretary under
subparagraph (A)(i).</DELETED>
<DELETED> ``(C) Public participation.--The Secretary
shall--</DELETED>
<DELETED> ``(i) publish in the Federal
Register a notice relating to each goal,
determination, and modification under this
paragraph; and</DELETED>
<DELETED> ``(ii) provide an opportunity for
public comment regarding the goals,
determinations, and modifications.</DELETED>
<DELETED> ``(b) State Certification of Building Energy Code
Updates.--</DELETED>
<DELETED> ``(1) General certification.--</DELETED>
<DELETED> ``(A) In general.--Not later than 2 years
after the date of enactment of the America's Climate
Security Act of 2007, each State shall certify to the
Secretary that the State has reviewed and updated the
provisions of the residential and commercial building
codes of the State regarding energy
efficiency.</DELETED>
<DELETED> ``(B) Energy savings.--A certification
under subparagraph (A) shall include a demonstration
that the applicable provisions of the State code meet
or exceed, as applicable--</DELETED>
<DELETED> ``(i)(I) the IECC (2006) for
residential buildings; or</DELETED>
<DELETED> ``(II) the ASHRAE Standard 90.1
(2004) for commercial buildings; or</DELETED>
<DELETED> ``(ii) the quantity of energy
savings represented by the provisions referred
to in clause (i).</DELETED>
<DELETED> ``(2) Revision of codes and standards.--</DELETED>
<DELETED> ``(A) In general.--If the Secretary makes
an affirmative determination under subsection
(a)(2)(A)(i) or proposes a modified code or standard
under subsection (a)(2)(B), not later than 2 years
after the determination or proposal, each State shall
certify that the State has reviewed and updated the
provisions of the residential and commercial building
codes of the State regarding energy
efficiency.</DELETED>
<DELETED> ``(B) Energy savings.--A certification
under subparagraph (A) shall include a demonstration
that the applicable provisions of the State code meet
or exceed--</DELETED>
<DELETED> ``(i) the modified code or
standard; or</DELETED>
<DELETED> ``(ii) the quantity of energy
savings represented by the modified code or
standard.</DELETED>
<DELETED> ``(C) Failure to determine.--If the
Secretary fails to make a determination under
subsection (a)(2)(A)(i) by the date specified in
subsection (a)(2), or if the Secretary makes a negative
determination, not later than 2 years after the
specified date or the date of the determination, each
State shall certify that the State has--</DELETED>
<DELETED> ``(i) reviewed the revised code or
standard; and</DELETED>
<DELETED> ``(ii) updated the provisions of
the residential and commercial building codes
of the State as necessary to meet or exceed, as
applicable--</DELETED>
<DELETED> ``(I) any provisions of a
national code or standard determined to
improve energy efficiency in buildings;
or</DELETED>
<DELETED> ``(II) energy savings
achieved by those provisions through
other means.</DELETED>
<DELETED> ``(c) Achievement of Compliance by States.--</DELETED>
<DELETED> ``(1) In general.--Not later than 3 years after
the date on which a State makes a certification under
subsection (b), the State shall certify to the Secretary that
the State has achieved compliance with the national building
energy code that is the subject of the certification.</DELETED>
<DELETED> ``(2) Rate of compliance.--The certification shall
include documentation of the rate of compliance based on
independent inspections of a random sample of the new and
renovated buildings covered by the State code during the
preceding calendar year.</DELETED>
<DELETED> ``(3) Compliance.--A State shall be considered to
achieve compliance for purposes of paragraph (1) if--</DELETED>
<DELETED> ``(A) at least 90 percent of new and
renovated buildings covered by the State code during
the preceding calendar year substantially meet all the
requirements of the code; or</DELETED>
<DELETED> ``(B) the estimated excess energy use of
new and renovated buildings that did not meet the
requirements of the State code during the preceding
calendar year, as compared to a baseline of comparable
buildings that meet the requirements of the code, is
not more than 10 percent of the estimated energy use of
all new and renovated buildings covered by the State
code during the preceding calendar year.</DELETED>
<DELETED> ``(d) Failure to Certify.--</DELETED>
<DELETED> ``(1) Extension of deadlines.--The Secretary shall
extend a deadline for certification by a State under subsection
(b) or (c) for not more than 1 additional year, if the State
demonstrates to the satisfaction of the Secretary that the
State has made--</DELETED>
<DELETED> ``(A) a good faith effort to comply with
the certification requirement; and</DELETED>
<DELETED> ``(B) significant progress with respect to
the compliance.</DELETED>
<DELETED> ``(2) Noncompliance by state.--</DELETED>
<DELETED> ``(A) In general.--A State that fails to
submit a certification required under subsection (b) or
(c), and to which an extension is not provided under
paragraph (1), shall be considered to be out of
compliance with this section.</DELETED>
<DELETED> ``(B) Effect on local governments.--A
local government of a State that is out of compliance
with this section may be considered to be in compliance
with this section if the local government meets each
applicable certification requirement of this
section.</DELETED>
<DELETED> ``(e) Technical Assistance.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall provide
technical assistance (including building energy analysis and
design tools, building demonstrations, and design assistance
and training) to ensure that national model building energy
codes and standards meet the goals described in subsection
(a)(1).</DELETED>
<DELETED> ``(2) Assistance to states.--The Secretary shall
provide technical assistance to States--</DELETED>
<DELETED> ``(A) to implement this section, including
procedures for States to demonstrate that the codes of
the States achieve equivalent or greater energy savings
than the national model codes and standards;</DELETED>
<DELETED> ``(B) to improve and implement State
residential and commercial building energy efficiency
codes; and</DELETED>
<DELETED> ``(C) to otherwise promote the design and
construction of energy-efficient buildings.</DELETED>
<DELETED> ``(f) Incentive Funding.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall provide
incentive funding to States--</DELETED>
<DELETED> ``(A) to implement this section;
and</DELETED>
<DELETED> ``(B) to improve and implement State
residential and commercial building energy efficiency
codes, including increasing and verifying compliance
with the codes.</DELETED>
<DELETED> ``(2) Amount.--In determining whether, and in what
amount, to provide incentive funding under this subsection, the
Secretary shall take into consideration actions proposed by the
State--</DELETED>
<DELETED> ``(A) to implement this section;</DELETED>
<DELETED> ``(B) to implement and improve residential
and commercial building energy efficiency codes;
and</DELETED>
<DELETED> ``(C) to promote building energy
efficiency through use of the codes.</DELETED>
<DELETED> ``(3) Additional funding.--The Secretary shall
provide additional funding under this subsection for
implementation of a plan to demonstrate a rate of compliance
with applicable residential and commercial building energy
efficiency codes at a rate of not less than 90 percent, based
on energy performance--</DELETED>
<DELETED> ``(A) to a State that has adopted and is
implementing, on a statewide basis--</DELETED>
<DELETED> ``(i) a residential building
energy efficiency code that meets or exceeds
the requirements of the IECC (2006) (or a
successor code that is the subject of an
affirmative determination by the Secretary
under subsection (a)(2)(A)(i)); and</DELETED>
<DELETED> ``(ii) a commercial building
energy efficiency code that meets or exceeds
the requirements of the ASHRAE Standard 90.1
(2004) (or a successor standard that is the
subject of an affirmative determination by the
Secretary under subsection (a)(2)(A)(i));
or</DELETED>
<DELETED> ``(B) in the case of a State in which no
statewide energy code exists for residential buildings
or commercial buildings, or in which the State code
fails to comply with subparagraph (A), to a local
government that has adopted and is implementing
residential and commercial building energy efficiency
codes, as described in subparagraph (A).</DELETED>
<DELETED> ``(4) Training.--Of the amounts made available to
carry out this subsection, the Secretary may use not more than
$500,000 for each State to train State and local officials to
implement State or local energy codes in accordance with a plan
described in paragraph (3).''.</DELETED>
<DELETED>SEC. 5202. CONFORMING AMENDMENT.</DELETED>
<DELETED> Section 303 of the Energy Conservation and Production Act
(42 U.S.C. 6832) is amended by adding at the end the following new
paragraph:</DELETED>
<DELETED> ``(17) IECC.--The term `IECC' means the
International Energy Conservation Code.''.</DELETED>
<DELETED>TITLE VI--GLOBAL EFFORT TO REDUCE GREENHOUSE GAS
EMISSIONS</DELETED>
<DELETED>SEC. 6001. DEFINITIONS.</DELETED>
<DELETED> In this title:</DELETED>
<DELETED> (1) Baseline emission level.--The term ``baseline
emission level'' means, as determined by the Administrator, the
total average annual greenhouse gas emissions attributed to a
category of covered goods of a foreign country during the
period beginning on January 1, 2012, and ending on December 31,
2014, based on--</DELETED>
<DELETED> (A) relevant data available for that
period; and</DELETED>
<DELETED> (B) to the extent necessary with respect
to a specific category of covered goods, economic and
engineering models and best available information on
technology performance levels for the manufacture of
that category of covered goods.</DELETED>
<DELETED> (2) Comparable action.--The term ``comparable
action'' means any greenhouse gas regulatory programs,
requirements, and other measures adopted by a foreign country
that, in combination, are comparable in effect to actions
carried out by the United States to limit greenhouse gas
emissions pursuant to this Act, as determined by the President,
taking into consideration the level of economic development of
the foreign country.</DELETED>
<DELETED> (3) Compliance year.--The term ``compliance year''
means each calendar year for which the requirements of this
title apply to a category of covered goods of a covered foreign
country that is imported into the United States.</DELETED>
<DELETED> (4) Covered foreign country.--The term ``covered
foreign country'' means a foreign country that is included on
the covered list prepared under section 6006(b)(3).</DELETED>
<DELETED> (5) Covered good.--The term ``covered good'' means
a good that (as identified by the Administrator by rule)--
</DELETED>
<DELETED> (A) is a primary product;</DELETED>
<DELETED> (B) generates, in the course of the
manufacture of the good, a substantial quantity of
direct greenhouse gas emissions and indirect greenhouse
gas emissions; and</DELETED>
<DELETED> (C) is closely related to a good the cost
of production of which in the United States is affected
by a requirement of this Act.</DELETED>
<DELETED> (6) Foreign country.--The term ``foreign country''
means a member of, or observer government to, the World Trade
Organization (WTO), other than the United States.</DELETED>
<DELETED> (7) Indirect greenhouse gas emissions.--The term
``indirect greenhouse gas emissions'' means any emissions of a
greenhouse gas resulting from the generation of electricity
that is consumed during the manufacture of a good.</DELETED>
<DELETED> (8) International agreement.--The term
``international agreement'' means any international agreement
to which the United States is a party, including the Marrakesh
agreement establishing the World Trade Organization, done at
Marrakesh on April 15, 1994.</DELETED>
<DELETED> (9) International reserve allowance.--The term
``international reserve allowance'' means an allowance
(denominated in units of metric tons of carbon dioxide
equivalent) that is--</DELETED>
<DELETED> (A) purchased from a special reserve of
allowances pursuant to section 6006(a)(2);
and</DELETED>
<DELETED> (B) used for purposes of meeting the
requirements of section 6006.</DELETED>
<DELETED> (10) Primary product.--The term ``primary
product'' means--</DELETED>
<DELETED> (A) iron, steel, aluminum, cement, bulk
glass, or paper; or</DELETED>
<DELETED> (B) any other manufactured product that--
</DELETED>
<DELETED> (i) is sold in bulk for purposes
of further manufacture; and</DELETED>
<DELETED> (ii) generates, in the course of
the manufacture of the product, direct
greenhouse gas emissions and indirect
greenhouse gas emissions that are comparable
(on an emissions-per-dollar basis) to emissions
generated in the manufacture of products by
covered facilities in the industrial
sector.</DELETED>
<DELETED>SEC. 6002. PURPOSES.</DELETED>
<DELETED> The purposes of this title are--</DELETED>
<DELETED> (1) to promote a strong global effort to
significantly reduce greenhouse gas emissions;</DELETED>
<DELETED> (2) to ensure, to the maximum extent practicable,
that greenhouse gas emissions occurring outside the United
States do not undermine the objectives of the United States in
addressing global climate change; and</DELETED>
<DELETED> (3) to encourage effective international action to
achieve those objectives through--</DELETED>
<DELETED> (A) agreements negotiated between the
United States and foreign countries; and</DELETED>
<DELETED> (B) measures carried out by the United
States that comply with applicable international
agreements.</DELETED>
<DELETED>SEC. 6003. INTERNATIONAL NEGOTIATIONS.</DELETED>
<DELETED> (a) Finding.--Congress finds that the purposes described
in section 6002 can be most effectively addressed and achieved through
agreements negotiated between the United States and foreign
countries.</DELETED>
<DELETED> (b) Negotiating Objective.--</DELETED>
<DELETED> (1) Statement of policy.--It is the policy of the
United States to work proactively under the United Nations
Framework Convention on Climate Change and, in other
appropriate forums, to establish binding agreements committing
all major greenhouse gas-emitting nations to contribute
equitably to the reduction of global greenhouse gas
emissions.</DELETED>
<DELETED> (2) Intent of congress regarding objective.--To
the extent that the agreements described in subsection (a)
involve measures that will affect international trade in any
good or service, it is the intent of Congress that the
negotiating objective of the United States shall be to focus
multilateral and bilateral international agreements on the
reduction of greenhouse gas emissions to advance achievement of
the purposes described in section 6002.</DELETED>
<DELETED>SEC. 6004. INTERAGENCY REVIEW.</DELETED>
<DELETED> (a) Interagency Group.--</DELETED>
<DELETED> (1) Establishment.--The President shall establish
an interagency group to carry out this section.</DELETED>
<DELETED> (2) Chairperson.--The chairperson of the
interagency group established under paragraph (1) shall be the
Secretary of State.</DELETED>
<DELETED> (3) Requirement.--The Administrator shall be a
member of the interagency group.</DELETED>
<DELETED> (b) Determinations.--</DELETED>
<DELETED> (1) In general.--Subject to paragraph (2), the
interagency group established under subsection (a)(1) shall
determine whether, and the extent to which, each foreign
country has taken comparable action to limit the greenhouse gas
emissions of the foreign country.</DELETED>
<DELETED> (2) Exemption.--The interagency group may exempt
from a determination under paragraph (1) any foreign country on
the excluded list under section 6006(b)(2).</DELETED>
<DELETED> (c) Report to President.--Not later than January 1, 2018,
and annually thereafter, the interagency group shall submit to the
President a report describing the determinations of the interagency
group under subsection (b).</DELETED>
<DELETED>SEC. 6005. PRESIDENTIAL DETERMINATIONS.</DELETED>
<DELETED> (a) In General.--Not later than January 1, 2019, and
annually thereafter, the President shall determine whether each foreign
country that is subject to interagency review under section 6004(b) has
taken comparable action to limit the greenhouse gas emissions of the
foreign country, taking into consideration--</DELETED>
<DELETED> (1) the baseline emission levels of the foreign
country; and</DELETED>
<DELETED> (2) applicable reports submitted under section
6004(c).</DELETED>
<DELETED> (b) Reports.--The President shall--</DELETED>
<DELETED> (1) submit to Congress an annual report describing
the determinations of the President under subsection (a) for
the most recent calendar year; and</DELETED>
<DELETED> (2) publish the determinations in the Federal
Register.</DELETED>
<DELETED>SEC. 6006. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.</DELETED>
<DELETED> (a) Establishment.--</DELETED>
<DELETED> (1) In general.--The Administrator shall establish
a program under which the Administrator, during the 1-year
period beginning on January 1, 2019, and annually thereafter,
shall offer for sale to United States importers international
reserve allowances in accordance with this
subsection.</DELETED>
<DELETED> (2) Source.--International reserve allowances
under paragraph (1) shall be issued from a special reserve of
allowances that is separate from, and established in addition
to, the quantity of allowances established under section
1201.</DELETED>
<DELETED> (3) Price.--</DELETED>
<DELETED> (A) In general.--Subject to subparagraph
(B), the Administrator shall establish, by rule, a
methodology for determining the price of international
reserve allowances for each compliance year at a level
that does not exceed the market price of allowances
established under section 1201 for the compliance
year.</DELETED>
<DELETED> (B) Maximum price.--The price for an
international reserve allowance under subparagraph (A)
shall not exceed the clearing price for current
compliance year allowances established at the most
recent auction of allowances by the
Corporation.</DELETED>
<DELETED> (4) Serial number.--The Administrator shall assign
a unique serial number to each international reserve allowance
issued under this subsection.</DELETED>
<DELETED> (5) Trading system.--The Administrator may
establish, by rule, a system for the sale, exchange, purchase,
transfer, and banking of international reserve
allowances.</DELETED>
<DELETED> (6) Regulated entities.--International reserve
allowances may not be submitted by regulated entities to comply
with the allowance submission requirements of section
1202.</DELETED>
<DELETED> (7) Proceeds.--All proceeds from the sale of
international reserve allowances under this subsection shall be
allocated to a program that the Administrator, in coordination
with the Secretary of State, shall establish to mitigate the
negative impacts of global climate change on disadvantaged
communities in other countries.</DELETED>
<DELETED> (b) Foreign Country Lists.--</DELETED>
<DELETED> (1) In general.--Not later than January 1, 2020,
and annually thereafter, the President shall develop and
publish in the Federal Register 2 lists of foreign countries,
in accordance with this subsection.</DELETED>
<DELETED> (2) Excluded list.--</DELETED>
<DELETED> (A) In general.--The President shall
identify and publish in a list, to be known as the
``excluded list'', each foreign country the share of
total global greenhouse gas emissions of which is below
the de minimis percentage described in subparagraph
(B).</DELETED>
<DELETED> (B) De minimis percentage.--The de minimis
percentage referred to in subparagraph (A) is a
percentage of total global greenhouse gas emissions of
not more than 0.5, as determined by the President, for
the most recent calendar year for which emissions and
other relevant data is available, taking into
consideration, as necessary, the annual average
deforestation rate during a representative period for a
foreign country that is a developing country.</DELETED>
<DELETED> (3) Covered list.--</DELETED>
<DELETED> (A) In general.--The President shall
identify and publish in a list, to be known as the
``covered list'', each foreign country the covered
goods of which are subject to the requirements of this
section.</DELETED>
<DELETED> (B) Requirement.--The covered list shall
include each foreign country that is not included on
the excluded list under paragraph (2).</DELETED>
<DELETED> (c) Written Declarations.--</DELETED>
<DELETED> (1) In general.--Effective beginning January 1,
2020, a United States importer of any covered good shall, as a
condition of importation or withdrawal for consumption from a
warehouse of the covered good, submit to the Administrator and
the appropriate office of the U.S. Customs and Border
Protection a written declaration with respect to each such
importation or withdrawal.</DELETED>
<DELETED> (2) Contents.--A written declaration under
paragraph (1) shall contain a statement that--</DELETED>
<DELETED> (A) the applicable covered good is
accompanied by a sufficient number of international
reserve allowances, as determined under subsection (d);
or</DELETED>
<DELETED> (B) the covered good is from a foreign
country on the excluded list under subsection
(b)(2).</DELETED>
<DELETED> (3) Inclusion.--A written declaration described in
paragraph (2)(A) shall include the unique serial number of each
emission allowance associated with the importation of the
applicable covered good.</DELETED>
<DELETED> (4) Failure to declare.--</DELETED>
<DELETED> (A) In general.--Except as provided in
subparagraph (B), an imported covered good that is not
accompanied by a written declaration under this
subsection shall not be permitted to enter the customs
territory of the United States.</DELETED>
<DELETED> (B) Exception for certain imports.--
Subparagraph (A) shall not apply to a covered good of a
foreign country if the President determines that--
</DELETED>
<DELETED> (i) the foreign country has taken
comparable action to limit the greenhouse gas
emissions of the foreign country, in accordance
with section 6005;</DELETED>
<DELETED> (ii) the United Nations has
identified the foreign country as among the
least-developed of developing countries;
or</DELETED>
<DELETED> (iii) the foreign country is on
the excluded list under subsection
(b)(2).</DELETED>
<DELETED> (5) Corrected declaration.--</DELETED>
<DELETED> (A) In general.--If, after making a
declaration required under this subsection, an importer
has reason to believe that the declaration contains
information that is not correct, the importer shall
provide a corrected declaration by not later than 30
days after the date of discovery of the error, in
accordance with subparagraph (B).</DELETED>
<DELETED> (B) Method.--A corrected declaration under
subparagraph (A) shall be in the form of a letter or
other written statement to the Administrator and the
office of the U.S. Customs and Border Protection to
which the original declaration was submitted.</DELETED>
<DELETED> (d) Quantity of Allowances Required.--</DELETED>
<DELETED> (1) Methodology.--</DELETED>
<DELETED> (A) In general.--The Administrator shall
establish, by rule, a method for calculating the
required number of international reserve allowances
that a United States importer must submit, together
with a written declaration under subsection (c), for
each category of covered goods of each covered foreign
country.</DELETED>
<DELETED> (B) Formula.--The Administrator shall
develop a general formula for calculating the
international reserve allowance requirement that
applies, on a per unit basis, to each covered good of a
covered foreign country that is imported during each
compliance year.</DELETED>
<DELETED> (2) Initial compliance year.--</DELETED>
<DELETED> (A) In general.--Subject to subparagraph
(B), the methodology under paragraph (1) shall
establish an international reserve allowance
requirement (per unit imported into the United States)
for the initial compliance year for each category of
covered goods of each covered foreign country that is
equal to the quotient obtained by dividing--</DELETED>
<DELETED> (i) the excess, if any, of the
total emissions from the covered foreign
country that are attributable to the category
of covered goods produced during the most
recent year for which data are available, over
the baseline emission level of the covered
foreign country for that category;
and</DELETED>
<DELETED> (ii) the total quantity of the
covered good produced in the covered foreign
country during the most recent calendar
year.</DELETED>
<DELETED> (B) Adjustments.--The Administrator shall
adjust the requirement under subparagraph (A)--
</DELETED>
<DELETED> (i) in accordance with the ratio
that--</DELETED>
<DELETED> (I) the quantity of
allowances that were allocated at no
cost to entities within the industry
sector manufacturing the covered goods
for the compliance year during which
the covered goods were imported into
the United States; bears to</DELETED>
<DELETED> (II) the greenhouse gas
emissions of that industry sector;
and</DELETED>
<DELETED> (ii) to take into account the
level of economic development of the covered
foreign country in which the covered goods were
produced.</DELETED>
<DELETED> (3) Subsequent compliance years.--For each
subsequent compliance year, the Administrator shall revise, as
appropriate, the international reserve allowance requirement
applicable to each category of imported covered goods of each
covered foreign country to reflect changes in the factors
described in paragraph (2)(B).</DELETED>
<DELETED> (4) Publication.--Not later than 90 days before
the beginning of each compliance year, the Administrator shall
publish in the Federal Register a schedule describing the
required number of international reserve allowances for each
category of imported covered goods of each covered foreign
country, as calculated under this subsection.</DELETED>
<DELETED> (e) Foreign Allowances and Credits.--</DELETED>
<DELETED> (1) Foreign allowances.--</DELETED>
<DELETED> (A) In general.--A United States importer
may submit, in lieu of an international reserve
allowance issued under this section, a foreign
allowance or similar compliance instrument distributed
by a foreign country pursuant to a cap and trade
program that represents a comparable action.</DELETED>
<DELETED> (B) Commensurate cap and trade program.--
For purposes of subparagraph (A), a cap and trade
program that represents a comparable action shall
include any greenhouse gas regulatory program adopted
by a covered foreign country to limit the greenhouse
gas emissions of the covered foreign country, if the
President certifies that the program--</DELETED>
<DELETED> (i)(I) places a quantitative
limitation on the total quantity of greenhouse
gas emissions of the covered foreign country
(expressed in terms of tons emitted per
calendar year); and</DELETED>
<DELETED> (II) achieves that limitation
through an allowance trading system;</DELETED>
<DELETED> (ii) satisfies such criteria as
the President may establish for requirements
relating to the enforceability of the cap and
trade program, including requirements for
monitoring, reporting, verification procedures,
and allowance tracking; and</DELETED>
<DELETED> (iii) is a comparable
action.</DELETED>
<DELETED> (2) Foreign credits.--</DELETED>
<DELETED> (A) In general.--A United States importer
may submit, in lieu of an international reserve
allowance issued under this section, a foreign credit
or a credit for an international offset project that
the Administrator has authorized for use under subtitle
E of title II.</DELETED>
<DELETED> (B) Application.--The limitation on the
use of international reserve allowances by regulated
entities under subsection (a)(6) shall not apply to a
United States importer for purposes of this
paragraph.</DELETED>
<DELETED> (f) Retirement of Allowances.--The Administrator shall
retire each international reserve allowance, foreign allowance, and
foreign credit submitted to achieve compliance with this
section.</DELETED>
<DELETED> (g) Consistency With International Agreements.--The
Administrator, in consultation with the Secretary of State, shall
adjust the international reserve allowance requirements established
under this section (including the quantity of international reserve
allowances required for each category of covered goods of a covered
foreign country) as the Administrator determines to be necessary to
ensure that the United States complies with all applicable
international agreements.</DELETED>
<DELETED> (h) Termination.--The international reserve allowance
requirements of this section shall not apply to a covered good of a
covered foreign country in any case in which the President makes a
determination described in subsection (b)(2) with respect to the
covered goods of that covered foreign country.</DELETED>
<DELETED> (i) Final Regulations.--Not later than January 1, 2019,
the Administrator shall promulgate such regulations as the
Administrator determines to be necessary to carry out this
section.</DELETED>
<DELETED>SEC. 6007. ADJUSTMENT OF INTERNATIONAL RESERVE ALLOWANCE
REQUIREMENTS.</DELETED>
<DELETED> (a) In General.--Not later than January 1, 2023, and
annually thereafter, the President shall prepare and submit to Congress
a report that assesses the effectiveness of the applicable
international reserve allowance requirements under section 6006 with
respect to the covered goods of each covered foreign country.</DELETED>
<DELETED> (b) Inadequate Requirements.--If the President determines
that an applicable international reserve allowance requirement is not
adequate to achieve the purposes of this title, the President,
simultaneously with the submission of the report under subsection (a),
shall--</DELETED>
<DELETED> (1) adjust the requirement; or</DELETED>
<DELETED> (2) take such other action as the President
determines to be necessary to improve the effectiveness of the
requirement, in accordance with all applicable international
agreements.</DELETED>
<DELETED> (c) Effective Date.--An adjustment under subsection (b)(1)
shall take effect beginning on January 1 of the compliance year
immediately following the date on which the adjustment is
made.</DELETED>
<DELETED>TITLE VII--REVIEWS</DELETED>
<DELETED>SEC. 7001. NATIONAL ACADEMY OF SCIENCES REVIEW.</DELETED>
<DELETED> (a) Report.--</DELETED>
<DELETED> (1) In general.--Not later than January 1, 2012,
and every 3 years thereafter, the Administrator shall offer to
enter into a contract with the National Academy of Sciences
under which the Academy shall submit to Congress and the
Administrator reports evaluating the implementation of this
Act.</DELETED>
<DELETED> (2) Contents of report.--Each report submitted to
Congress under paragraph (1) shall include an analysis of--
</DELETED>
<DELETED> (A) the extent to which the emission
reductions required under this Act are being
achieved;</DELETED>
<DELETED> (B) the extent to which the emission
reductions achieved under this Act, taken together with
actual steps taken by other countries to reduce
greenhouse gas emissions, is predicted to stabilize
atmospheric greenhouse gas concentrations at a level
adequate to forestall dangerous anthropogenic
interference with the climate system;</DELETED>
<DELETED> (C) whether an increase of global average
temperature in excess of 3.6 degrees Fahrenheit (2
degrees Celsius) above the preindustrial average has
occurred or is more likely than not to occur in the
foreseeable future as a result of anthropogenic climate
change;</DELETED>
<DELETED> (D)(i) predicted changes in ocean acidity,
the extent of coral reefs, and other indicators of
ocean ecosystem health due to anthropogenic carbon
dioxide; and</DELETED>
<DELETED> (ii) any additional actions that should be
taken by the United States or other countries to
protect the health of the oceans;</DELETED>
<DELETED> (E) the status of the best available
science and the status of technologies to reduce,
sequester, or avoid greenhouse gas emissions;</DELETED>
<DELETED> (F) whether the percentage of allowances
for any calendar year that are auctioned, allocated, or
devoted to other purposes under this Act should be
modified;</DELETED>
<DELETED> (G) the effectiveness of auction revenues
in meeting the stated purposes of this Act;
and</DELETED>
<DELETED> (H) whether additional measures, including
an increase in the earned income tax credit, a
reduction in payroll taxes, or the implementation of
electronic benefit transfers by State health and human
services agencies to reach low-income individuals who
are not required to file Federal income tax returns,
are needed to help low- and moderate-income individuals
respond to changes in the cost of energy-related goods
and services.</DELETED>
<DELETED> (b) Technology Reports.--</DELETED>
<DELETED> (1) Definition.--In this subsection, the term
``technologically infeasible,'' with respect to a technology,
means that the technology--</DELETED>
<DELETED> (A) will not be demonstrated beyond
laboratory-scale conditions;</DELETED>
<DELETED> (B) would be unsafe;</DELETED>
<DELETED> (C) would not reliably reduce greenhouse
gas emissions; or</DELETED>
<DELETED> (D) would prevent the activity to which
the technology applies from meeting or performing the
primary purpose of the activity (such as generating
electricity or transporting goods or
individuals).</DELETED>
<DELETED> (2) Reports.--Not later than 180 days after the
date of enactment of this Act, the Administrator shall offer to
enter into a contract with the National Academy of Sciences
under which the Academy, not later than 2 years after the date
of enactment of this Act and every 3 years thereafter, shall
submit to Congress and the Administrator a report that
describes or analyzes--</DELETED>
<DELETED> (A) the status of current greenhouse gas
emission reduction technologies, including--</DELETED>
<DELETED> (i) technologies for capture and
disposal of greenhouse gases;</DELETED>
<DELETED> (ii) efficiency improvement
technologies;</DELETED>
<DELETED> (iii) zero-greenhouse gas emitting
energy technologies; and</DELETED>
<DELETED> (iv) above- and below-ground
biological sequestration
technologies;</DELETED>
<DELETED> (B) whether the requirements of this Act
(including regulations promulgated under this Act)--
</DELETED>
<DELETED> (i) promote the development and
deployment of greenhouse gas emission reduction
technologies; or</DELETED>
<DELETED> (ii) mandate a level of emission
control or reduction that, based on available
or expected technology, will be technologically
infeasible at the time at which the
requirements become effective;</DELETED>
<DELETED> (C) the projected date on which any
technology determined to be technologically infeasible
will become technologically feasible;</DELETED>
<DELETED> (D) whether any technology determined to
be technologically infeasible cannot reasonably be
expected to become technologically feasible prior to
calendar year 2050; and</DELETED>
<DELETED> (E) the costs of available alternative
greenhouse gas emission reduction strategies that could
be used or pursued in lieu of any technologies that are
determined to be technologically infeasible.</DELETED>
<DELETED>SEC. 7002. TRANSPORTATION SECTOR REVIEW.</DELETED>
<DELETED> (a) Review.--Not later than January 1, 2010, the
Administrator shall conduct a comprehensive review and analysis to
determine whether any of the following have occurred:</DELETED>
<DELETED> (1)(A) The motor vehicle fuel and motor vehicle
and nonroad regulations within the scope of Executive Order
13432 (72 Fed. Reg. 27717; relating to cooperation among
agencies in protecting the environment with respect to
greenhouse gas emissions from motor vehicles, nonroad vehicles,
and nonroad engines) have been finalized and implemented by
Federal agencies and departments.</DELETED>
<DELETED> (B) Any other transportation-related programs,
including corporate average fuel economy standard reform,
greenhouse gas vehicle emissions standards, renewable fuel
volume mandates, low carbon fuel standards, and activities to
reduce vehicle miles traveled have been finalized and
implemented by a Federal agency or department.</DELETED>
<DELETED> (2) Any regulation or program described in
paragraph (1) is expected to achieve at least 1 of the
following, as compared to the baseline greenhouse gas emissions
consistent with the reference case contained in the report of
the Energy Information Administration entitled ``Annual Energy
Outlook 2006'':</DELETED>
<DELETED> (A) At least a 6.2-percent reduction in
cumulative greenhouse gas emissions from the light-duty
motor vehicle sector, including light-duty vehicles and
light-duty trucks, during the period beginning on
January 1, 2010, and ending on December 31,
2020.</DELETED>
<DELETED> (B) A cumulative reduction of
approximately 1,140,000 metric tons of carbon dioxide
equivalent, measured on a full fuel cycle
basis.</DELETED>
<DELETED> (b) Report.--If the Administrator determines that a
reduction described in subsection (a)(2)(A) will not be achieved, the
Administrator shall submit to Congress, not later than January 1, 2010,
a report describing--</DELETED>
<DELETED> (1) any additional action of the Administrator
that will be necessary to reduce greenhouse gas emissions from
the light-duty motor vehicle sector; and</DELETED>
<DELETED> (2) recommendations of the Administrator with
respect to actions that could be established by Congress to
ensure that the United States transportation sector will
achieve--</DELETED>
<DELETED> (A) the reductions described in subsection
(a)(2)(B); and</DELETED>
<DELETED> (B) any additional reductions necessary
for that sector to assume an equitable share of
responsibility for reducing greenhouse gas
emissions.</DELETED>
<DELETED>SEC. 7003. ADAPTATION REVIEW.</DELETED>
<DELETED> (a) Regional Estimates.--</DELETED>
<DELETED> (1) Estimates.--</DELETED>
<DELETED> (A) In general.--The Administrator, in
consultation with the officials described in paragraph
(2) and relevant State agencies, shall conduct 6
regional infrastructure cost assessments in various
regions of the United States, and a national cost
assessment, to provide estimates of the range of costs
that should be anticipated for adaptation to the
impacts of climate change.</DELETED>
<DELETED> (B) Various probabilities.--The
Administrator shall develop the estimates under
subparagraph (A) for low, medium, and high
probabilities of climate change and the potential
impacts of climate change.</DELETED>
<DELETED> (2) Description of officials.--The officials
referred to in paragraph (1) are--</DELETED>
<DELETED> (A) the Secretary of
Agriculture;</DELETED>
<DELETED> (B) the Secretary of Commerce;</DELETED>
<DELETED> (C) the Secretary of Defense;</DELETED>
<DELETED> (D) the Secretary of Energy;</DELETED>
<DELETED> (E) the Secretary of Health and Human
Services;</DELETED>
<DELETED> (F) the Secretary of Homeland
Security;</DELETED>
<DELETED> (G) the Secretary of Housing and Urban
Development;</DELETED>
<DELETED> (H) the Secretary of the
Interior;</DELETED>
<DELETED> (I) the Secretary of
Transportation;</DELETED>
<DELETED> (J) the Director of United States
Geological Survey; and</DELETED>
<DELETED> (K) the heads of such other Federal
agencies and departments as the Administrator
determines to be necessary.</DELETED>
<DELETED> (3) Submission to congress.--Not later than 1 year
after the date of enactment of this Act, the Administrator
shall submit to Congress a report describing the results of the
assessments conducted under this subsection.</DELETED>
<DELETED> (b) Adaptation Plan.--</DELETED>
<DELETED> (1) In general.--Not later than 180 days after the
date of enactment of this Act, the Administrator shall submit
to Congress a climate change adaptation plan for the United
States, based on--</DELETED>
<DELETED> (A) assessments performed by the United
Nations Intergovernmental Panel on Climate Change in
accordance with the Global Change Research Act of 1990
(15 U.S.C. 2921 et seq.); and</DELETED>
<DELETED> (B) any other scientific, peer-reviewed
regional assessments.</DELETED>
<DELETED> (2) Inclusions.--The adaptation plan under
paragraph (1) shall include--</DELETED>
<DELETED> (A) a prioritized list of vulnerable
systems and regions in the United States;</DELETED>
<DELETED> (B) requirements for coordination between
Federal, State, and local governments to ensure that
key public infrastructure, safety, health, and land use
planning and control issues are addressed;</DELETED>
<DELETED> (C) requirements for coordination among
the Federal Government, industry, and
communities;</DELETED>
<DELETED> (D) an assessment of climate change
science research needs, including probabilistic
assessments as an aid to planning;</DELETED>
<DELETED> (E) an assessment of climate change
technology needs; and</DELETED>
<DELETED> (F) regional and national cost assessments
for the range of costs that should be anticipated for
adapting to the impacts of climate change.</DELETED>
<DELETED> (c) Impacts of Climate Change on Low-Income Populations.--
</DELETED>
<DELETED> (1) In general.--The Administrator shall conduct
research on the impact of climate change on low-income
populations in all countries, including--</DELETED>
<DELETED> (A) an assessment of the adverse impact of
climate change on--</DELETED>
<DELETED> (i) low-income populations in the
United States; and</DELETED>
<DELETED> (ii) developing
countries;</DELETED>
<DELETED> (B)(i) an identification of appropriate
climate change adaptation measures and programs for
developing countries and low-income
populations;</DELETED>
<DELETED> (ii) an assessment of the impact of the
measures and programs on low-income populations;
and</DELETED>
<DELETED> (C) an estimate of the costs of developing
and implementing those climate change adaptation and
mitigation programs.</DELETED>
<DELETED> (2) Report.--Not later than 1 year after the date
of enactment of this Act, the Administrator shall submit to
Congress a report describing the results of the research
conducted under paragraph (1).</DELETED>
<DELETED>TITLE VIII--FRAMEWORK FOR GEOLOGICAL SEQUESTRATION OF CARBON
DIOXIDE</DELETED>
<DELETED>SEC. 8001. NATIONAL DRINKING WATER REGULATIONS.</DELETED>
<DELETED> (a) In General.--Section 1421 of the Safe Drinking Water
Act (42 U.S.C. 300h) is amended--</DELETED>
<DELETED> (1) in subsection (b)(1), by striking ``subsection
(d)(2)'' and inserting ``subsection (e)(2)'';</DELETED>
<DELETED> (2) by redesignating subsection (d) as subsection
(e); and</DELETED>
<DELETED> (3) by inserting after subsection (c) the
following:</DELETED>
<DELETED> ``(d) Carbon Dioxide.--</DELETED>
<DELETED> ``(1) Regulations.--Not later than 1 year after
the date of enactment of the America's Climate Security Act of
2007, the Administrator shall promulgate regulations for
permitting commercial-scale underground injection of carbon
dioxide for purposes of geological sequestration to address
climate change, including provisions--</DELETED>
<DELETED> ``(A) for monitoring and controlling the
long-term storage of carbon dioxide and avoiding, to
the maximum extent practicable, any release of carbon
dioxide into the atmosphere, and for ensuring
protection of underground sources of drinking water,
human health, and the environment; and</DELETED>
<DELETED> ``(B) relating to long-term liability
associated with commercial-scale geological
sequestration.</DELETED>
<DELETED> ``(2) Subsequent reports.--Not later than 5 years
after the date on which regulations are promulgated pursuant to
paragraph (1), and not less frequently than once every 5 years
thereafter, the Administrator shall submit to Congress a report
that contains an evaluation of the effectiveness of the
regulations, based on current knowledge and experience, with
particular emphasis on any new information on potential impacts
of commercial-scale geological sequestration on drinking water,
human health, and the environment.</DELETED>
<DELETED> ``(3) Revision.--If the Administrator determines,
based on a report under paragraph (2), that regulations
promulgated pursuant to paragraph (1) require revision, the
Administrator shall promulgate revised regulations not later
than 1 year after the date on which the applicable report is
submitted to Congress under paragraph (2).''.</DELETED>
<DELETED> (b) Conforming Amendment.--Section 1447(a)(4) of the Safe
Drinking Water Act (42 U.S.C. 300j-6(a)(4)) is amended by striking
``section 1421(d)(2)'' and inserting ``section 1421(e)(2)''.</DELETED>
<DELETED>SEC. 8002. ASSESSMENT OF GEOLOGICAL STORAGE CAPACITY FOR
CARBON DIOXIDE.</DELETED>
<DELETED> (a) Definitions.--In this section:</DELETED>
<DELETED> (1) Assessment.--The term ``assessment'' means the
national assessment of capacity for carbon dioxide completed
under subsection (f).</DELETED>
<DELETED> (2) Capacity.--The term ``capacity'' means the
portion of a storage formation that can retain carbon dioxide
in accordance with the requirements (including physical,
geological, and economic requirements) established under the
methodology developed under subsection (b).</DELETED>
<DELETED> (3) Engineered hazard.--The term ``engineered
hazard'' includes the location and completion history of any
well that could affect a storage formation or
capacity.</DELETED>
<DELETED> (4) Risk.--The term ``risk'' includes any risk
posed by a geomechanical, geochemical, hydrogeological,
structural, or engineered hazard.</DELETED>
<DELETED> (5) Secretary.--The term ``Secretary'' means the
Secretary of the Interior, acting through the Director of the
United States Geological Survey.</DELETED>
<DELETED> (6) Storage formation.--The term ``storage
formation'' means a deep saline formation, unmineable coal
seam, or oil or gas reservoir that is capable of accommodating
a volume of industrial carbon dioxide.</DELETED>
<DELETED> (b) Methodology.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop a methodology for
conducting an assessment under subsection (f), taking into
consideration--</DELETED>
<DELETED> (1) the geographical extent of all potential
storage formations in all States;</DELETED>
<DELETED> (2) the capacity of the potential storage
formations;</DELETED>
<DELETED> (3) the injectivity of the potential storage
formations;</DELETED>
<DELETED> (4) an estimate of potential volumes of oil and
gas recoverable by injection and storage of industrial carbon
dioxide in potential storage formations;</DELETED>
<DELETED> (5) the risk associated with the potential storage
formations; and</DELETED>
<DELETED> (6) the work performed to develop the Carbon
Sequestration Atlas of the United States and Canada completed
by the Department of Energy in April 2006.</DELETED>
<DELETED> (c) Coordination.--</DELETED>
<DELETED> (1) Federal coordination.--</DELETED>
<DELETED> (A) Consultation.--The Secretary shall
consult with the Secretary of Energy and the
Administrator regarding data sharing and the format,
development of methodology, and content of the
assessment to ensure the maximum usefulness and success
of the assessment.</DELETED>
<DELETED> (B) Cooperation.--The Secretary of Energy
and the Administrator shall cooperate with the
Secretary to ensure, to the maximum extent practicable,
the usefulness and success of the assessment.</DELETED>
<DELETED> (2) State coordination.--The Secretary shall
consult with State geological surveys and other relevant
entities to ensure, to the maximum extent practicable, the
usefulness and success of the assessment.</DELETED>
<DELETED> (d) External Review and Publication.--On completion of the
methodology under subsection (b), the Secretary shall--</DELETED>
<DELETED> (1) publish the methodology and solicit comments
from the public and the heads of affected Federal and State
agencies;</DELETED>
<DELETED> (2) establish a panel of individuals with
expertise in the matters described in paragraphs (1) through
(5) of subsection (b) composed, as appropriate, of
representatives of Federal agencies, institutions of higher
education, nongovernmental organizations, State organizations,
industry, and international geosciences organizations to review
the methodology and comments received under paragraph (1);
and</DELETED>
<DELETED> (3) on completion of the review under paragraph
(2), publish in the Federal Register the revised final
methodology.</DELETED>
<DELETED> (e) Periodic Updates.--The methodology developed under
this section shall be updated periodically (including not less
frequently than once every 5 years) to incorporate new data as the data
becomes available.</DELETED>
<DELETED> (f) National Assessment.--</DELETED>
<DELETED> (1) In general.--Not later than 2 years after the
date of publication of the methodology under subsection (d)(3),
the Secretary, in consultation with the Secretary of Energy and
State geological surveys, shall complete a national assessment
of the capacity for carbon dioxide storage in accordance with
the methodology.</DELETED>
<DELETED> (2) Geological verification.--As part of the
assessment, the Secretary shall carry out a drilling program to
supplement the geological data relevant to determining storage
capacity in carbon dioxide in geological storage formations,
including--</DELETED>
<DELETED> (A) well log data;</DELETED>
<DELETED> (B) core data; and</DELETED>
<DELETED> (C) fluid sample data.</DELETED>
<DELETED> (3) Partnership with other drilling programs.--As
part of the drilling program under paragraph (2), the Secretary
shall enter into partnerships, as appropriate, with other
entities to collect and integrate data from other drilling
programs relevant to the storage of carbon dioxide in geologic
formations.</DELETED>
<DELETED> (4) Incorporation into natcarb.--</DELETED>
<DELETED> (A) In general.--On completion of the
assessment, the Secretary shall incorporate the results
of the assessment using, to the maximum extent
practicable--</DELETED>
<DELETED> (i) the NatCarb database;
or</DELETED>
<DELETED> (ii) a new database developed by
the Secretary, as the Secretary determines to
be necessary.</DELETED>
<DELETED> (B) Ranking.--The database shall include
the data necessary to rank potential storage sites--
</DELETED>
<DELETED> (i) for capacity and
risk;</DELETED>
<DELETED> (ii) across the United
States;</DELETED>
<DELETED> (iii) within each State;</DELETED>
<DELETED> (iv) by formation; and</DELETED>
<DELETED> (v) within each basin.</DELETED>
<DELETED> (5) Report.--Not later than 180 days after the
date on which the assessment is completed, the Secretary shall
submit to the Committee on Energy and Natural Resources of the
Senate and the Committee on Science and Technology of the House
of Representatives a report describing the results of the
assessment.</DELETED>
<DELETED> (6) Periodic updates.--The assessment shall be
updated periodically (including not less frequently than once
every 5 years) as necessary to support public and private
sector decisionmaking, as determined by the
Secretary.</DELETED>
<DELETED>SEC. 8003. STUDY OF THE FEASIBILITY RELATING TO CONSTRUCTION
OF PIPELINES AND GEOLOGICAL CARBON DIOXIDE SEQUESTRATION
ACTIVITIES.</DELETED>
<DELETED> (a) In General.--The Secretary of Energy, in coordination
with the Administrator, the Federal Energy Regulatory Commission, the
Secretary of Transportation, and the Secretary of the Interior, shall
conduct a study to assess the feasibility of the construction of--
</DELETED>
<DELETED> (1) pipelines to be used for the transportation of
carbon dioxide for the purpose of sequestration or enhanced oil
recovery; and</DELETED>
<DELETED> (2) geological carbon dioxide sequestration
facilities.</DELETED>
<DELETED> (b) Scope.--The study shall consider--</DELETED>
<DELETED> (1) any barrier or potential barrier in existence
as of the date of enactment of this Act, including any
technical, siting, financing, or regulatory barrier, relating
to--</DELETED>
<DELETED> (A) the construction of pipelines to be
used for the transportation of carbon dioxide for the
purpose of sequestration or enhanced oil recovery;
or</DELETED>
<DELETED> (B) the geological sequestration of carbon
dioxide;</DELETED>
<DELETED> (2) any market risk (including throughput risk)
relating to--</DELETED>
<DELETED> (A) the construction of pipelines to be
used for the transportation of carbon dioxide for the
purpose of sequestration or enhanced oil recovery;
or</DELETED>
<DELETED> (B) the geological sequestration of carbon
dioxide;</DELETED>
<DELETED> (3) any regulatory, financing, or siting option
that, as determined by the Secretary of Energy, would--
</DELETED>
<DELETED> (A) mitigate any market risk described in
paragraph (2); or</DELETED>
<DELETED> (B) help ensure the construction of
pipelines dedicated to the transportation of carbon
dioxide for the purpose of sequestration or enhanced
oil recovery;</DELETED>
<DELETED> (4) the means by which to ensure the safe handling
and transportation of carbon dioxide;</DELETED>
<DELETED> (5) any preventive measure to ensure the
integration of pipelines to be used for the transportation of
carbon dioxide for the purpose of sequestration or enhanced oil
recovery; and</DELETED>
<DELETED> (6) any other appropriate use, as determined by
the Secretary of Energy, in coordination with the
Administrator, the Federal Energy Regulatory Commission, the
Secretary of Transportation, and the Secretary of the
Interior.</DELETED>
<DELETED> (c) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Energy shall submit to the
Congress a report describing the results of the study.</DELETED>
<DELETED>SEC. 8004. LIABILITIES FOR CLOSED GEOLOGICAL STORAGE
SITES.</DELETED>
<DELETED> (a) Establishment of Task Force.--As soon as practicable
after the date of enactment of this Act, the Administrator shall
establish a task force, to be composed of an equal number of
stakeholders, the public, subject matter experts, and members of the
private sector, to conduct a study of the legal framework,
environmental and safety considerations, and cost implications of
potential Federal assumption of liability with respect to closed
geological storage sites.</DELETED>
<DELETED> (b) Report.--Not later than 18 months after the date of
enactment of this Act, the task force established under subsection (a)
shall submit to Congress a report describing the results of the study
conducted under subsection (a), including recommendations of the task
force, if any, with respect to the framework described in that
subsection.</DELETED>
<DELETED>TITLE IX--MISCELLANEOUS</DELETED>
<DELETED>SEC. 9001. PARAMOUNT INTEREST WAIVER.</DELETED>
<DELETED> (a) In General.--If the President determines that a
national security emergency exists and, in light of information that
was not available as of the date of enactment of this Act, it is in the
paramount interest of the United States to modify any requirement under
this Act to minimize the effects of the emergency, the President may,
after opportunity for public notice and comment, temporarily adjust,
suspend, or waive any regulations promulgated pursuant to this Act to
achieve that minimization.</DELETED>
<DELETED> (b) Consultation.--In making an emergency determination
under subsection (a), the President shall, to the maximum extent
practicable, consult with and take into account any advice received
from--</DELETED>
<DELETED> (1) the National Academy of Sciences;</DELETED>
<DELETED> (2) the Secretary of Energy; and</DELETED>
<DELETED> (3) the Administrator.</DELETED>
<DELETED> (c) Judicial Review.--An emergency determination under
subsection (a) shall be subject to judicial review in accordance with
section 307 of the Clean Air Act (42 U.S.C. 7607).</DELETED>
<DELETED>SEC. 9002. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE
CHANGE RISKS.</DELETED>
<DELETED> (a) Regulations.--Not later than 2 years after the date of
enactment of this Act, the Securities and Exchange Commission (referred
to in this section as the ``Commission'') shall promulgate regulations
in accordance with section 13 of the Securities Exchange Act of 1934
(15 U.S.C. 78m) directing each issuer of securities under that Act, to
inform, based on the current expectations and projections and knowledge
of facts of the issuer, securities investors of material risks relating
to--</DELETED>
<DELETED> (1) the financial exposure of the issuer because
of the net global warming pollution emissions of the issuer;
and</DELETED>
<DELETED> (2) the potential economic impacts of global
warming on the interests of the issuer.</DELETED>
<DELETED> (b) Uniform Format for Disclosure.--In carrying out
subsection (a), the Commission shall enter into an agreement with the
Financial Accounting Standards Board, or another appropriate
organization that establishes voluntary standards, to develop a uniform
format for disclosing to securities investors information on the risks
described in subsection (a).</DELETED>
<DELETED> (c) Interim Interpretive Release.--</DELETED>
<DELETED> (1) In general.--Not later than 1 year after the
date of enactment of this Act, the Commission shall issue an
interpretive release clarifying that under items 101 and 303 of
Regulation S-K of the Commission under part 229 of title 17,
Code of Federal Regulations (as in effect on the date of
enactment of this Act)--</DELETED>
<DELETED> (A) the commitments of the United States
to reduce emissions of global warming pollution under
the United Nations Framework Convention on Climate
Change, done at New York on May 9, 1992, are considered
to be a material effect; and</DELETED>
<DELETED> (B) global warming constitutes a known
trend.</DELETED>
<DELETED> (2) Period of effectiveness.--The interpretive
release issued under paragraph (1) shall remain in effect until
the effective date of the final regulations promulgated under
subsection (a).</DELETED>
<DELETED>SEC. 9003. ADMINISTRATIVE PROCEDURE AND JUDICIAL
REVIEW.</DELETED>
<DELETED> (a) Rulemaking Procedures.--Any rule, requirement,
regulation, method, standard, program, determination, or final action
made or promulgated pursuant to any title of this Act, with the
exception of sections 3101, 3201, 3301, and 3901, shall be subject to
the rulemaking procedures described in sections 551 through 557 of
title 5, United States Code.</DELETED>
<DELETED> (b) Enforcement.--Each provision of this Act (including
provisions relating to mandatory duties of the Administrator) shall be
fully enforceable pursuant to sections 113, 303, and 304 of the Clean
Air Act (42 U.S.C. 7413, 7603, 7604).</DELETED>
<DELETED> (c) Recordkeeping, Inspections, Monitoring, Entry, and
Subpoenas.--The Administrator shall have the same powers and authority
provided under sections 114 and 307(a) of the Clean Air Act (42 U.S.C.
7414, 7607(a)) in carrying out, administering, and enforcing this
Act.</DELETED>
<DELETED> (d) Judicial Review.--A petition for judicial review of
any regulation promulgated, or final action carried out, by the
Administrator pursuant to this Act may be filed only--</DELETED>
<DELETED> (1) in the United States Court of Appeals for the
District of Columbia; and</DELETED>
<DELETED> (2) in accordance with section 307(b) of the Clean
Air Act (42 U.S.C. 7607(b)).</DELETED>
<DELETED>SEC. 9004. RETENTION OF STATE AUTHORITY.</DELETED>
<DELETED> (a) In General.--Except as provided in subsection (b), in
accordance with section 116 of the Clean Air Act (42 U.S.C. 7416) and
section 510 of the Federal Water Pollution Control Act (33 U.S.C.
1370), nothing in this Act precludes or abrogates the right of any
State to adopt or enforce--</DELETED>
<DELETED> (1) any standard, cap, limitation, or prohibition
relating to emissions of greenhouse gas; or</DELETED>
<DELETED> (2) any requirement relating to control,
abatement, or avoidance of emissions of greenhouse
gas.</DELETED>
<DELETED> (b) Exception.--Notwithstanding subsection (a), no State
may adopt a standard, cap, limitation, prohibition, or requirement that
is less stringent than the applicable standard, cap, limitation,
prohibition, or requirement under this Act.</DELETED>
<DELETED>SEC. 9005. TRIBAL AUTHORITY.</DELETED>
<DELETED> For purposes of this Act, the Administrator may treat any
federally recognized Indian tribe as a State, in accordance with
section 301(d) of the Clean Air Act (42 U.S.C. 7601(d)).</DELETED>
<DELETED>SEC. 9006. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> There are authorized to be appropriated such sums as are
necessary to carry out this Act.</DELETED>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Lieberman-Warner
Climate Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
TITLE I--CAPPING GREENHOUSE GAS EMISSIONS
Subtitle A--Tracking Emissions
Sec. 1101. Purpose.
Sec. 1102. Definitions.
Sec. 1103. Reporting requirements.
Sec. 1104. Data quality and verification.
Sec. 1105. Federal greenhouse gas registry.
Sec. 1106. Enforcement.
Subtitle B--Reducing Emissions
Sec. 1201. Emission allowance account.
Sec. 1202. Compliance obligation.
Sec. 1203. Penalty for noncompliance.
Sec. 1204. Rulemaking.
TITLE II--MANAGING AND CONTAINING COSTS EFFICIENTLY
Subtitle A--Trading
Sec. 2101. Sale, exchange, and retirement of emission allowances.
Sec. 2102. No restriction on transactions.
Sec. 2103. Allowance transfer system.
Sec. 2104. Allowance tracking system.
Subtitle B--Banking
Sec. 2201. Indication of calendar year.
Sec. 2202. Effect of time.
Subtitle C--Borrowing
Sec. 2301. Regulations.
Sec. 2302. Term.
Sec. 2303. Repayment with interest.
Subtitle D--Offsets
Sec. 2401. Outreach initiative on revenue enhancement for agricultural
producers.
Sec. 2402. Establishment of domestic offset program.
Sec. 2403. Eligible offset project types.
Sec. 2404. Project initiation and approval.
Sec. 2405. Offset verification and issuance of allowances.
Sec. 2406. Tracking of reversals for sequestration projects.
Sec. 2407. Examinations.
Sec. 2408. Timing and the provision of offset allowances.
Sec. 2409. Offset registry.
Sec. 2410. Environmental considerations.
Sec. 2411. Program review.
Sec. 2412. Retail carbon offsets.
Subtitle E--International Emission Allowances
Sec. 2501. Use of international emission allowances.
Sec. 2502. Regulations.
Sec. 2503. Facility certification.
Subtitle F--Carbon Market Efficiency Board
Sec. 2601. Purposes.
Sec. 2602. Establishment of Carbon Market Efficiency Board.
Sec. 2603. Duties.
Sec. 2604. Powers.
Sec. 2605. Estimate of costs to economy of limiting greenhouse gas
emissions.
TITLE III--ALLOCATING AND DISTRIBUTING ALLOWANCES
Subtitle A--Auctions
Sec. 3101. Allocation for early auctions.
Sec. 3102. Allocation for annual auctions.
Subtitle B--Early Action
Sec. 3201. Allocation.
Sec. 3202. Distribution.
Subtitle C--States
Sec. 3301. Allocation for energy savings.
Sec. 3302. Allocation for States with programs that exceed Federal
emission reduction targets.
Sec. 3303. General allocation.
Sec. 3304. Allocation for mass transit.
Subtitle D--Electricity Consumers
Sec. 3401. Allocation.
Sec. 3402. Distribution.
Sec. 3403. Use.
Sec. 3404. Reporting.
Subtitle E--Natural Gas Consumers
Sec. 3501. Allocation.
Sec. 3502. Distribution.
Sec. 3503. Use.
Sec. 3504. Reporting.
Subtitle F--Bonus Allowances for Carbon Capture and Geological
Sequestration
Sec. 3601. Allocation.
Sec. 3602. Qualifying projects.
Sec. 3603. Distribution.
Sec. 3604. 10-Year limit.
Sec. 3605. Exhaustion of bonus allowance account.
Subtitle G--Domestic Agriculture and Forestry
Sec. 3701. Allocation.
Sec. 3702. Agricultural and forestry greenhouse gas management
research.
Sec. 3703. Distribution.
Subtitle H--International Forest Protection
Sec. 3801. Findings.
Sec. 3802. Definition of forest carbon activities.
Sec. 3803. Allocation.
Sec. 3804. Definition and eligibility requirements.
Sec. 3805. International forest carbon activities.
Sec. 3806. Reviews and discount.
Subtitle I--Transition Assistance
Sec. 3901. General allocation and distribution.
Sec. 3902. Distributing emission allowances to owners and operators of
fossil fuel-fired electric power generating
facilities.
Sec. 3903. Distributing additional emission allowances to rural
electric cooperatives.
Sec. 3904. Distributing emission allowances to owners and operators of
energy intensive manufacturing facilities.
Sec. 3905. Distributing emission allowances to owners and operators of
facilities and other entities that produce
or import petroleum-based fuel.
Sec. 3906. Distributing emission allowances to hydrofluorocarbon
producers and importers.
Subtitle J--Reducing Methane Emissions From Landfills and Coal Mines
Sec. 3907. Allocation.
Sec. 3908. Distribution.
TITLE IV--AUCTIONS AND USES OF AUCTION PROCEEDS
Subtitle A--Funds
Sec. 4101. Establishment.
Sec. 4102. Amounts in Funds.
Subtitle B--Climate Change Credit Corporation
Sec. 4201. Establishment.
Sec. 4202. Applicable laws.
Sec. 4203. Board of directors.
Sec. 4204. Review and audit by Comptroller General.
Subtitle C--Auctions
Sec. 4301. Early auctions.
Sec. 4302. Annual auctions.
Subtitle D--Energy Technology Deployment
Sec. 4401. General allocations.
Sec. 4402. Zero- or low-carbon energy technologies deployment.
Sec. 4403. Advanced coal and sequestration technologies program.
Sec. 4404. Fuel from cellulosic biomass.
Sec. 4405. Advanced technology vehicles manufacturing incentive
program.
Sec. 4406. Sustainable energy program.
Subtitle E--Energy Consumers
Sec. 4501. Proportions of funding availability.
Sec. 4502. Rural energy assistance program.
Subtitle F--Climate Change Worker Training Program
Sec. 4601. Funding.
Sec. 4602. Purposes.
Sec. 4603. Establishment.
Sec. 4604. Activities.
Sec. 4605. Worker protections and nondiscrimination requirements.
Sec. 4606. Workforce training and safety.
Subtitle G--Adaptation Program for Natural Resources in United States
and Territories
Sec. 4701. Definitions.
Sec. 4702. Adaptation fund.
Subtitle H--International Climate Change Adaptation and National
Security Program
Sec. 4801. Findings.
Sec. 4802. Purposes.
Sec. 4803. Establishment.
Sec. 4804. Funding.
Subtitle I--Emergency Firefighting Programs
Sec. 4901. Findings.
Sec. 4902. Bureau of Land Management emergency firefighting program.
Sec. 4903. Forest Service emergency firefighting program.
TITLE V--ENERGY EFFICIENCY
Subtitle A--Appliance Efficiency
Sec. 5101. Residential boilers.
Sec. 5102. Regional variations in heating or cooling standards.
Subtitle B--Building Efficiency
Sec. 5201. Updating State building energy efficiency codes.
Sec. 5202. Conforming amendment.
TITLE VI--GLOBAL EFFORT TO REDUCE GREENHOUSE GAS EMISSIONS
Sec. 6001. Definitions.
Sec. 6002. Purposes.
Sec. 6003. International negotiations.
Sec. 6004. Interagency review.
Sec. 6005. Presidential determinations.
Sec. 6006. International reserve allowance program.
Sec. 6007. Adjustment of international reserve allowance requirements.
TITLE VII--REVIEWS AND RECOMMENDATIONS
Sec. 7001. National Academy of Sciences Reviews.
Sec. 7002. Environmental Protection Agency review.
Sec. 7003. Environmental Protection Agency recommendations.
Sec. 7004. Presidential recommendations.
Sec. 7005. Adaptation assessments and plan.
Sec. 7006. Study by Administrator of aviation sector greenhouse gas
emissions.
TITLE VIII--FRAMEWORK FOR GEOLOGICAL SEQUESTRATION OF CARBON DIOXIDE
Sec. 8001. National drinking water regulations.
Sec. 8002. Assessment of geological storage capacity for carbon
dioxide.
Sec. 8003. Study of the feasibility relating to construction of
pipelines and geological carbon dioxide
sequestration activities.
Sec. 8004. Liabilities for closed geological storage sites.
TITLE IX--MISCELLANEOUS
Sec. 9001. Paramount interest waiver.
Sec. 9002. Administrative procedure and judicial review.
Sec. 9003. Retention of State authority.
Sec. 9004. Tribal authority.
Sec. 9005. Rocky Mountain Centers for Study of Coal Utilization.
Sec. 9006. Sun grant center research on compliance with Clean Air Act.
Sec. 9007. Authorization of appropriations.
TITLE X--CONTROL OF HYDROFLUOROCARBON CONSUMPTION
Sec. 10001. Applicability.
Sec. 10002. Definitions.
Sec. 10003. Cap on hydrofluorocarbon consumption and importation into
United States.
Sec. 10004. Hydrofluorocarbon consumption allowance account.
Sec. 10005. Allocation of hydrofluorocarbon consumption allowances.
Sec. 10006. Compliance obligation.
Sec. 10007. Sale, exchange, and other uses of hydrofluorocarbon
consumption allowances.
Sec. 10008. Allowance transfer system.
Sec. 10009. Banking and borrowing.
Sec. 10010. Hydrofluorocarbon destruction allowances.
TITLE XI--AMENDMENTS TO CLEAN AIR ACT
Sec. 11001. National recycling and emission reduction program.
Sec. 11002. Servicing of motor vehicle air conditioners.
Sec. 11003. Carbon dioxide reduction.
SEC. 2. FINDINGS.
Congress finds that--
(1) unchecked global warming poses a significant threat
to--
(A) the national security and economy of the United
States;
(B) public health and welfare in the United States;
(C) the well-being of other countries; and
(D) the global environment;
(2) under the United Nations Framework Convention on
Climate Change, done at New York on May 9, 1992, the United
States is committed to stabilizing greenhouse gas
concentrations in the atmosphere at a level that will prevent
dangerous anthropogenic interference with the climate system;
(3) according to the Fourth Assessment Report of the
Intergovernmental Panel on Climate Change, stabilizing
greenhouse gas concentrations in the atmosphere at a level that
will prevent dangerous interference with the climate system
will require a global effort to reduce anthropogenic greenhouse
gas emissions worldwide by 50 to 85 percent below 2000 levels
by 2050;
(4) prompt, decisive action is critical, since global
warming pollutants can persist in the atmosphere for more than
a century;
(5) the ingenuity of the people of the United States will
allow the United States to become a leader in curbing global
warming;
(6) it is possible and desirable to cap greenhouse gas
emissions, from sources that together account for the majority
of those emissions in the United States, at or slightly below
the current level in 2012, and to lower the cap each year
between 2012 and 2050, on the condition that the system
includes--
(A) cost containment measures;
(B) periodic review of requirements;
(C) an aggressive program for deploying advanced
energy technology;
(D) programs to assist low- and middle-income
energy consumers; and
(E) programs to mitigate the impacts of any
unavoidable global climate change;
(7) Congress may need to update the emissions caps in order
to account for continuing scientific data and steps taken, or
not taken, by foreign countries;
(8) accurate emission data and timely compliance with the
requirements of the greenhouse gas emission reduction and
trading program established under this Act are needed to ensure
that reductions are achieved and to provide equity, efficiency,
and openness in the market for allowances subject to the
program;
(9) additional policies external to a cap-and-trade program
may be required, including with respect to--
(A) the transportation sector, where reducing
greenhouse gas emissions requires changes in vehicles,
in fuels, and in consumer behavior; and
(B) the built environment, where reducing direct
and indirect greenhouse gas emissions requires changes
in buildings, appliances, lighting, heating, cooling,
and consumer behavior;
(10) significant and sustained domestic investments are
required to support an aggressive program for developing and
deploying advanced technologies to reduce greenhouse gas
emissions;
(11) all, or virtually all, emissions of greenhouse gases
from the combustion of natural gas in the United States should
be reduced through the inclusion in a cap-and-trade system of
entities that sell natural gas in the United States;
(12) including natural gas in a cap-and-trade system in the
United States should be carried out in a way that minimizes, to
the extent feasible, the number of entities required to submit
emission allowances for the natural gas sold by the entities;
(13) including natural gas in a cap-and-trade system in the
United States promotes substantial reductions in total United
States greenhouse gas emissions while also minimizing, to the
extent feasible, the activities within the industrial sector
that necessitate the submission of emission allowances;
(14) emissions of sulfur dioxide, nitrogen oxides, and
mercury to the atmosphere from coal-fired electric power
generating facilities in the United States inflicts harm on the
public health, economy, and natural resources of the United
States;
(15) fossil fuel-fired electric power generating facilities
emit approximately 67 percent of the total sulfur dioxide
emissions, 23 percent of the total nitrogen oxide emissions, 40
percent of the total carbon dioxide emissions, and 40 percent
of the total mercury emissions in the United States;
(16) while the reductions in emissions of sulfur dioxide,
nitrogen oxides, and mercury that will occur in the presence of
a declining cap on the greenhouse gas emissions from coal-fired
electric power generating facilities are larger than those that
would occur in the absence of such a cap, new, stricter Federal
limits on emissions of sulfur dioxide, nitrogen oxides, and
mercury may still be needed to protect public health; and
(17) many existing fossil fuel-fired electric power
generating facilities were exempted by Congress from emissions
limitations applicable to new and modified units based on an
expectation by Congress that, over time, the units would be
retired or updated with new pollution control equipment, but
many of the exempted facilities nevertheless continue to
operate and emit pollutants at relatively high rates and
without new pollution control equipment.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to establish the core of a Federal program that will
reduce United States greenhouse gas emissions substantially
enough between 2007 and 2050 to avert the catastrophic impacts
of global climate change; and
(2) to accomplish that purpose while preserving robust
growth in the United States economy, creating new jobs, and
avoiding the imposition of hardship on United States citizens.
SEC. 4. DEFINITIONS.
In this Act:
(1) Additional; additionality.--The terms ``additional''
and ``additionality'' mean the extent to which reductions in
greenhouse gas emissions or increases in sequestration are
incremental to business-as-usual, measured as the difference
between--
(A) baseline greenhouse gas fluxes of an offset
project; and
(B) greenhouse gas fluxes of the offset project.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(3) Baseline.--The term ``baseline'' means the greenhouse
gas flux or carbon stock that would have occurred in the
absence of an offset project.
(4) Biological sequestration; biologically sequestered.--
The terms ``biological sequestration'' and ``biologically
sequestered'' mean--
(A) the removal of greenhouse gases from the
atmosphere by biological means, such as by growing
plants; and
(B) the storage of those greenhouse gases in the
plants or related soils.
(5) Carbon dioxide equivalent.--The term ``carbon dioxide
equivalent'' means, for each greenhouse gas, the quantity of
the greenhouse gas that the Administrator determines makes the
same contribution to global warming as 1 metric ton of carbon
dioxide.
(6) Corporation.--The term ``Corporation'' means the
Climate Change Credit Corporation established by section
4201(a).
(7) Covered facility.--The term ``covered facility''
means--
(A) any facility that uses more than 5,000 tons of
coal in a calendar year;
(B) any facility that is a natural gas processing
plant or that produces natural gas in the State of
Alaska, or any entity that imports natural gas
(including liquefied natural gas);
(C) any facility that in any year produces, or any
entity that in any year imports, petroleum- or coal-
based liquid or gaseous fuel, the combustion of which
will emit a group I greenhouse gas, assuming no capture
and sequestration of that gas;
(D) any facility that in any year produces for sale
or distribution, or any entity that in any year
imports, more than 10,000 carbon dioxide equivalents of
chemicals that are group I greenhouse gas, assuming no
capture and destruction or sequestration of that gas;
or
(E) any facility that in any year emits as a
byproduct of the production of hydrochlorofluorocarbons
more than 10,000 carbon dioxide equivalents of
hydrofluorocarbons.
(8) Destruction.--The term ``destruction'' means the
conversion of a greenhouse gas by thermal, chemical, or other
means--
(A) to another gas with a low- or zero-global
warming potential; and
(B) for which credit given reflects the extent of
reduction in global warming potential actually
achieved.
(9) Emission allowance.--The term ``emission allowance''
means an authorization to emit 1 carbon dioxide equivalent of
greenhouse gas.
(10) Emission allowance account.--The term ``Emission
Allowance Account'' means the aggregate of emission allowances
that the Administrator establishes for a calendar year.
(11) Facility.--The term ``facility'' means--
(A) 1 or more buildings, structures, or
installations located on 1 or more contiguous or
adjacent properties of an entity in the United States;
and
(B) at the option of the Administrator, any
activity or operation that--
(i) emits 10,000 carbon dioxide equivalents
in any year; and
(ii) has a technical connection with the
activities carried out at a facility, such as
use of transportation fleets, pipelines,
transmission lines, and distribution lines, but
that is not conducted or located on the
property of the facility.
(12) Fair market value.--The term ``fair market value''
means the average market price, in a particular calendar year,
of an emission allowance.
(13) Geological sequestration; geologically sequestered.--
The terms ``geological sequestration'' and ``geologically
sequestered'' mean the permanent isolation of greenhouse gases,
without reversal, in geological formations, in accordance with
part C of the Safe Drinking Water Act (42 U.S.C. 300h et seq.),
as determined by the Administrator.
(14) Group i greenhouse gas.----The term ``group I
greenhouse gas'' means any of--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) sulfur hexafluoride; or
(E) a perfluorocarbon.
(15) Group ii greenhouse gas.--The term ``group II
greenhouse gas'' means a hydrofluorocarbon.
(16) Leakage.--The term ``leakage'' means--
(A) a significant unaccounted increase in
greenhouse gas emissions by a facility or entity caused
by an offset project that produces an accounted
reduction in greenhouse gas emissions, as determined by
the Administrator; or
(B) a significant unaccounted decrease in
sequestration that is caused by an offset project that
results in an accounted increase in sequestration, as
determined by the Administrator.
(17) Load-serving entity.--The term ``load-serving entity''
means an entity, whether public or private--
(A) that has a legal, regulatory, or contractual
obligation to deliver electricity to retail consumers;
and
(B) whose rates and costs are, except in the case
of a registered electric cooperative, regulated by a
State agency, regulatory commission, municipality, or
public utility district.
(18) Natural gas processing plant.--The term ``natural gas
processing plant'' means a facility in the United States that
is designed to separate natural gas liquids from natural gas.
(19) New entrant.--The term ``new entrant'' means any
facility that commences operation on or after January 1, 2008.
(20) Offset allowance.--The term ``offset allowance'' means
a unit of reduction in the quantity of emissions or an increase
in sequestration equal to 1 carbon dioxide equivalent at an
entity that is not a covered facility, where the reduction in
emissions or increase in sequestration is eligible to be used
as an additional means of compliance for the submission
requirements established under section 1202.
(21) Offset project.--The term ``offset project'' means a
domestic project, other than a project at a covered facility,
that reduces greenhouse gas emissions or increases terrestrial
sequestration of carbon dioxide.
(22) Project developer.--The term ``project developer''
means an individual or entity implementing an offset project.
(23) Retail rate for distribution service.--
(A) In general.--The term ``retail rate for
distribution service'' means the rate that a load-
serving entity charges for the use of the system of the
load-serving entity.
(B) Exclusion.--The term ``retail rate for
distribution service'' does not include any energy
component of the rate.
(24) Retire an emission allowance.--The term ``retire an
emission allowance'' means to disqualify an emission allowance
for any subsequent use, regardless of whether the use is a
sale, exchange, or submission of the allowance in satisfying a
compliance obligation.
(25) Reversal.--The term ``reversal'' means an intentional
or unintentional loss of sequestered carbon dioxide to the
atmosphere in significant quantities, as determined by the
Administrator, in order to accomplish the purposes of this Act
in an effective and efficient manner.
(26) Rural electric cooperative.--The term ``rural electric
cooperative'' means a cooperatively-owned association that was
in existence as of October 18, 2007, and is eligible to receive
loans under section 4 of the Rural Electrification Act of 1936
(7 U.S.C. 904).
(27) Sequestered and sequestration.--The terms
``sequestered'' and ``sequestration'' mean the capture,
permanent separation, isolation, or removal of greenhouse gases
from the atmosphere, as determined by the Administrator.
(28) State regulatory authority.--The term ``State
regulatory authority'' means any State agency that has
ratemaking authority with respect to the retail rate for
distribution service.
TITLE I--CAPPING GREENHOUSE GAS EMISSIONS
Subtitle A--Tracking Emissions
SEC. 1101. PURPOSE.
The purpose of this subtitle is to establish a Federal greenhouse
gas registry that--
(1) is complete, consistent, transparent, and accurate;
(2) will collect reliable and accurate data that can be
used by public and private entities to design efficient and
effective energy security initiatives and greenhouse gas
emission reduction strategies; and
(3) will provide appropriate high-quality data to be used
for implementing greenhouse gas reduction policies.
SEC. 1102. DEFINITIONS.
In this subtitle:
(1) Affected facility.--
(A) In general.--The term ``affected facility''
means--
(i) a covered facility;
(ii) another facility that emits a
greenhouse gas, as determined by the
Administrator; and
(iii) at the option of the Administrator, a
vehicle fleet with emissions of more than
10,000 carbon dioxide equivalents in any year,
assuming no double-counting of emissions.
(B) Exclusions.--The term ``affected facility''
does not include any facility that--
(i) is not a covered facility;
(ii) is owned or operated by a small
business (as described in part 121 of title 13,
Code of Federal Regulations (or a successor
regulation)); and
(iii) emits fewer than 10,000 carbon
dioxide equivalents in any year.
(2) Carbon content.--The term ``carbon content'' means the
quantity of carbon (in carbon dioxide equivalent) contained in
a fuel.
(3) Climate registry.--The term ``Climate Registry'' means
the greenhouse gas emissions registry jointly established and
managed by more than 40 States and Indian tribes to collect
high-quality greenhouse gas emission data from facilities,
corporations, and other organizations to support various
greenhouse gas emission reporting and reduction policies for
the member States and Indian tribes.
(4) Feedstock fossil fuel.--The term ``feedstock fossil
fuel'' means fossil fuel used as raw material in a
manufacturing process.
(5) Greenhouse gas emissions.--The term ``greenhouse gas
emissions'' means emissions of a greenhouse gas, including--
(A) stationary combustion source emissions emitted
as a result of combustion of fuels in stationary
equipment, such as boilers, furnaces, burners,
turbines, heaters, incinerators, engines, flares, and
other similar sources;
(B) process emissions consisting of emissions from
chemical or physical processes other than combustion;
(C) fugitive emissions consisting of intentional
and unintentional emissions from equipment leaks, such
as joints, seals, packing, and gaskets, or from piles,
pits, cooling towers, and other similar sources; and
(D) biogenic emissions resulting from biological
processes, such as anaerobic decomposition,
nitrification, and denitrification.
(6) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(7) Registry.--The term ``Registry'' means the Federal
greenhouse gas registry established under section 1105(a).
(8) Source.--The term ``source'' means any building,
structure, installation, unit, point, operation, vehicle, land
area, or other item that emits or may emit a greenhouse gas.
SEC. 1103. REPORTING REQUIREMENTS.
(a) In General.--Subject to this section, each affected facility
shall submit to the Administrator, for inclusion in the Registry,
periodic reports, including annual and quarterly data, that--
(1) include the quantity and type of fossil fuels,
including feedstock fossil fuels, that are extracted, produced,
refined, imported, exported, or consumed at or by the facility;
(2) include the quantity of hydrofluorocarbons,
perfluorocarbons, sulfur hexafluoride, nitrous oxide, carbon
dioxide that has been captured and sequestered, and other
greenhouse gases generated, produced, imported, exported, or
consumed at or by the facility;
(3) include the quantity of electricity generated,
imported, exported, or consumed by or at the facility, and
information on the quantity of greenhouse gases emitted when
the imported, exported, or consumed electricity was generated,
as determined by the Administrator;
(4) include the aggregate quantity of all greenhouse gas
emissions from sources at the facility, including stationary
combustion source emissions, process emissions, and fugitive
emissions;
(5) include greenhouse gas emissions expressed in metric
tons of each greenhouse gas emitted and in the quantity of
carbon dioxide equivalents of each greenhouse gas emitted;
(6) include a list and description of sources of greenhouse
gas emissions at the facility;
(7) quantify greenhouse gas emissions in accordance with
the measurement standards established under section 1104;
(8) include other data necessary for accurate and complete
accounting of greenhouse gas emissions, as determined by the
Administrator;
(9) include an appropriate certification regarding the
accuracy and completeness of reported data, as determined by
the Administrator; and
(10) are submitted electronically to the Administrator, in
such form and to such extent as may be required by the
Administrator.
(b) De Minimis Exemptions.--
(1) In general.--The Administrator may determine--
(A) whether certain sources at a facility should be
considered to be eligible for a de minimis exemption
from a requirement for reporting under subsection (a);
and
(B) the level of greenhouse gases emitted from a
source that would qualify for such an exemption.
(2) Factors.--In making a determination under paragraph
(1), the Administrator shall consider the availability and
suitability of simplified techniques and tools for quantifying
emissions and the cost to measure those emissions relative to
the purposes of this title, including the goal of collecting
complete and consistent facility-wide data.
(c) Verification of Report Required.--Before including the
information from a report required under this section in the Registry,
the Administrator shall verify the completeness and accuracy of the
report using information provided under this section, obtained under
section 9002(c), or obtained under other provisions of law.
(d) Timing.--
(1) Calendar years 2004 through 2007.--For a baseline
period of calendar years 2004 through 2007, each affected
facility shall submit required annual data described in this
section to the Administrator not later than March 31, 2009.
(2) Subsequent calendar years.--For calendar year 2008 and
each subsequent calendar year, each affected facility shall
submit quarterly data described in this section to the
Administrator not later than 60 days after the end of the
applicable quarter.
(e) No Effect on Other Requirements.--Nothing in this title affects
any requirement in effect as of the date of enactment of this Act
relating to the reporting of--
(1) fossil fuel production, refining, importation,
exportation, or consumption data;
(2) greenhouse gas emission data; or
(3) other relevant data.
SEC. 1104. DATA QUALITY AND VERIFICATION.
(a) Protocols and Methods.--
(1) In general.--The Administrator shall establish by
regulation, taking into account the work done by the Climate
Registry, comprehensive protocols and methods to ensure the
accuracy, completeness, consistency, and transparency of data
on greenhouse gas emissions and fossil fuel production,
refining, importation, exportation, and consumption submitted
to the Registry that include--
(A) accounting and reporting standards for fossil
fuel production, refining, importation, exportation,
and consumption;
(B) a requirement that, where technically feasible,
submitted data are monitored using monitoring systems
for fuel flow or emissions, such as continuous emission
monitoring systems or equivalent systems of similar
rigor, accuracy, quality, and timeliness;
(C) a requirement that, if a facility has already
been directed to monitor emissions of a greenhouse gas
using a continuous emission monitoring system under
existing law, that system be used in complying with
this Act with respect to the greenhouse gas;
(D) for cases in which the Administrator determines
that monitoring emissions with the precision,
reliability, accessibility, and timeliness similar to
that provided by a continuous emission monitoring
system are not technologically feasible, standardized
methods for calculating greenhouse gas emissions in
specific industries using other readily available and
reliable information, such as fuel consumption,
materials consumption, production, or other relevant
activity data, on the condition that those methods do
not underreport emissions, as compared with the
continuous emission monitoring system;
(E) information on the accuracy of measurement and
calculation methods;
(F) methods to avoid double-counting of greenhouse
gas emissions;
(G) protocols to prevent an affected facility from
avoiding the reporting requirements of this title (such
as by reorganizing into multiple entities or
outsourcing activities that result in greenhouse gas
emissions); and
(H) protocols for verification of data submitted by
affected facilities.
(2) Best practices.--The protocols and methods developed
under paragraph (1) shall incorporate and conform to the best
practices from the most recent Federal, State, and
international protocols for the measurement, accounting,
reporting, and verification of greenhouse gas emissions to
ensure the accuracy, completeness, and consistency of the data.
(b) Verification; Information by Reporting Entities.--Each affected
facility shall--
(1) provide information sufficient for the Administrator to
verify, in accordance with the protocols and methods developed
under subsection (a), that the fossil fuel data and greenhouse
gas emission data of the affected facility have been completely
and accurately reported; and
(2) ensure the submission or retention, for the 5-year
period beginning on the date of provision of the information,
of--
(A) data sources;
(B) information on internal control activities;
(C) information on assumptions used in reporting
emissions and fuels;
(D) uncertainty analyses; and
(E) other relevant data and information to
facilitate the verification of reports submitted to the
Registry.
(c) Waiver of Reporting Requirements.--The Administrator may waive
reporting requirements for specific facilities if the Administrator
determines that sufficient and equally or more reliable data are
available under other provisions of law.
(d) Missing Data.--If information, satisfactory to the
Administrator, is not provided for an affected facility, the
Administrator shall--
(1) prescribe methods to estimate emissions for the
facility for each period for which data are missing, reflecting
the highest emission levels that may reasonably have occurred
during the period for which data are missing; and
(2) take appropriate enforcement action pursuant to this
section and section 9002(b).
SEC. 1105. FEDERAL GREENHOUSE GAS REGISTRY.
(a) Establishment.--The Administrator shall establish a Federal
greenhouse gas registry.
(b) Administration.--In establishing the Registry, the
Administrator shall--
(1) design and operate the Registry;
(2) establish an advisory body that is broadly
representative of private enterprise, agriculture,
environmental groups, and State, tribal, and local governments
to guide the development and management of the Registry;
(3) provide coordination and technical assistance for the
development of proposed protocols and methods, taking into
account the duties carried out by the Climate Registry, to be
published by the Administrator;
(4)(A) develop an electronic format for reporting under
guidelines established under section 1104(a)(1); and
(B) make the electronic format available to reporting
entities;
(5) verify and audit the data submitted by reporting
entities;
(6) establish consistent policies for calculating carbon
content and greenhouse gas emissions for each type of fossil
fuel reported under section 1103;
(7) calculate carbon content and greenhouse gas emissions
associated with the combustion of fossil fuel data reported by
reporting entities; and
(8) immediately publish on the Internet all information
contained in the Registry, except in any case in which
publishing the information would result in a disclosure of--
(A) information vital to national security, as
determined by the President; or
(B) confidential business information that cannot
be derived from information that is otherwise publicly
available and that would cause significant calculable
competitive harm if published (except that information
relating to greenhouse gas emissions shall not be
considered to be confidential business information).
(c) Third-Party Verification.--The Administrator may use the
services of third parties that have no conflicts of interest to verify
reports required under section 1103.
(d) Regulations.--The Administrator shall--
(1) not later than 180 days after the date of enactment of
this Act, propose regulations to carry out this section; and
(2) not later than July 1, 2008, promulgate final
regulations to carry out this section.
SEC. 1106. ENFORCEMENT.
(a) Civil Actions.--The Administrator may bring a civil action in
United States district court against the owner or operator of an
affected facility that fails to comply with any requirement of this
subtitle.
(b) Penalty.--Any person that has violated or is violating this
subtitle shall be subject to a civil penalty of not more than $25,000
per day of each violation.
Subtitle B--Reducing Emissions
SEC. 1201. EMISSION ALLOWANCE ACCOUNT.
(a) In General.--The Administrator shall establish a separate
quantity of emission allowances for each of calendar years 2012 through
2050.
(b) Identification Numbers.--The Administrator shall assign to each
emission allowance established under subsection (a) a unique
identification number that includes the calendar year for which that
emission allowance was established.
(c) Legal Status of Emission Allowances.--
(1) In general.--An emission allowance shall not be a
property right.
(2) Termination or limitation.--Nothing in this Act or any
other provision of law limits the authority of the United
States to terminate or limit an emission allowance.
(3) Other provisions unaffected.--Nothing in this Act
relating to emission allowances shall affect the application
of, or compliance with, any other provision of law to or by a
covered facility.
(d) Allowances for Each Calendar Year.--The numbers of emission
allowances established by the Administrator for each of calendar years
2012 through 2050 shall be as follows:
----------------------------------------------------------------------------------------------------------------
Number of Emission Allowances (in
Calendar Year Millions)
----------------------------------------------------------------------------------------------------------------
2012 5,775
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2013 5,669
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2014 5,562
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2015 5,456
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2016 5,349
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2017 5,243
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2018 5,137
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2019 5,030
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2020 4,924
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2021 4,817
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2022 4,711
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2023 4,605
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2024 4,498
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2025 4,392
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2026 4,286
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2027 4,179
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2028 4,073
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2029 3,966
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2030 3,860
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2031 3,754
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2032 3,647
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2033 3,541
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2034 3,435
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2035 3,328
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2036 3,222
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2037 3,115
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2038 3,009
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2039 2,903
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2040 2,796
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2041 2,690
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2042 2,584
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2043 2,477
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2044 2,371
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2045 2,264
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2046 2,158
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2047 2,052
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2048 1,945
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2049 1,839
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2050 1,732
----------------------------------------------------------------------------------------------------------------
SEC. 1202. COMPLIANCE OBLIGATION.
(a) In General.--Not later than 90 days after the end of a calendar
year, the owner or operator of a covered facility shall submit to the
Administrator an emission allowance, an offset allowance awarded
pursuant to subtitle D of title II, or an international emission
allowance obtained in compliance with regulations promulgated under
section 2502, for each carbon dioxide equivalent of--
(1) group I greenhouse gas that was emitted by the use of
coal by that covered facility during the preceding year;
(2) group I greenhouse gas that will, assuming no capture
and sequestration of that gas, be emitted from the use of any
petroleum- or coal-based liquid or gaseous fuel that was
produced or imported by that covered facility during the
preceding year;
(3) group I greenhouse gas that was produced for sale or
distribution or imported by that facility during the preceding
year;
(4) group II greenhouse gas that was emitted as a byproduct
of hydrochlorofluorocarbon production; and
(5) group I greenhouse gas that will, assuming no capture
and destruction or sequestration of that gas, be emitted--
(A) from the use of natural gas that was, by that
covered facility, processed, imported, or produced and
not reinjected into the field; or
(B) from the use of natural gas liquids that were
processed or imported by that covered facility during
the preceding year.
(b) Requirements.--
(1) Assumptions.--For the purpose of calculating the
submission requirement under paragraphs (2) through (5) of
subsection (a), the Administrator shall, subject to subsections
(e) through (g), assume that no capture, sequestration,
chemical retention, or other retention of a greenhouse gas has
occurred or will occur.
(2) Factors for consideration.--For the purpose of
calculating the submission requirement under paragraph (1) of
subsection (a), the Administrator shall take into account any
metric tons of carbon dioxide that the owner or operator has
geologically sequestered during the preceding calendar year.
(c) Retirement of Allowances.--Immediately upon receipt of an
emission allowance under subsection (a), the Administrator shall retire
the emission allowance.
(d) Determination of Compliance.--Not later than July 1 of each
year, the Administrator shall determine whether the owners and
operators of all covered facilities are in full compliance with
subsection (a) for the preceding year.
(e) Feedstock Credit.--If the Administrator determines that an
entity has used a petroleum- or coal-based product, natural gas, or a
natural gas liquid as a feedstock during any of calendar years 2012
through 2050, such that no group I greenhouse gas associated with that
feedstock will be emitted, the Administrator shall establish and
distribute to that entity a quantity of emission allowances equal to
the quantity of emission allowances, offset allowances, or
international emission allowances submitted under subsection (a) for
that petroleum- or coal-based product, natural gas, or natural gas
liquid.
(f) Sequestration Credit.--If the Administrator determines that the
owner or operator of a covered facility that is subject to the
submission requirement under any of paragraphs (2) through (5) of
subsection (a) has geologically sequestered carbon dioxide during any
of calendar years 2012 through 2050, the Administrator shall establish
and distribute to that owner or operator a quantity of emission
allowances equal to the number of metric tons of carbon dioxide that
the owner or operator geologically sequestered during that calendar
year.
(g) Destruction Credit.--If the Administrator determines that an
entity has destroyed greenhouse gas during any of calendar years 2012
through 2050, the Administrator shall establish and distribute to that
entity a quantity of emission allowances equal to the number of carbon
dioxide equivalents of greenhouse gas that the owner or operator
destroyed during that calendar year.
SEC. 1203. PENALTY FOR NONCOMPLIANCE.
(a) Excess Emissions Penalty.--
(1) In general.--The owner or operator of any covered
facility that fails for any year to submit to the Administrator
by the deadline described in section 1202(a) or 2303, 1 or more
of the emission allowances due pursuant to either of those
sections shall be liable for the payment to the Administrator
of an excess emissions penalty.
(2) Amount.--The amount of an excess emissions penalty
required to be paid under paragraph (1) shall be, as determined
by the Administrator, an amount equal to the product obtained
by multiplying--
(A) the number of excess emission allowances that
the owner or operator failed to submit; and
(B) the greater of--
(i) $200; or
(ii) a dollar figure representing 3 times
the mean market value of an emission allowance
during the calendar year for which the emission
allowances were due.
(3) Timing.--An excess emissions penalty required under
this subsection shall be immediately due and payable to the
Administrator, without demand, in accordance with such
regulations as shall be promulgated by the Administrator by the
date that is 1 year after the date of enactment of this Act.
(4) Deposit.--The Administrator shall deposit each excess
emissions penalty paid under this subsection in the Treasury of
the United States.
(5) No effect on liability.--An excess emissions penalty
due and payable by the owner or operator of a covered facility
under this subsection shall not diminish the liability of the
owner or operator for any fine, penalty, or assessment against
the owner or operator for the same violation under any other
provision of this Act or any other law.
(b) Excess Emission Allowance.--
(1) In general.--The owner or operator of a covered
facility that fails for any year to submit to the Administrator
by the deadline described in section 1202(a) or 2303 1 or more
of the emission allowances due pursuant to either of those
sections shall be liable to offset the excess emissions by an
equal quantity, in tons, during--
(A) the following calendar year; or
(B) such longer period as the Administrator may
prescribe.
(2) Plan.--
(A) In general.--Not later than 60 days after the
end of the calendar year during which a covered
facility emits excess emissions, the owner or operator
of the covered facility shall submit to the
Administrator, and to the State in which the covered
facility is located, a proposed plan to achieve the
required offsets for the excess emissions.
(B) Condition of operation.--Upon approval of a
proposed plan described in subparagraph (A) by the
Administrator, the plan, as submitted, modified, or
conditioned, shall be considered to be a condition of
the operating permit for the covered facility, without
further review or revision of the permit.
(C) Deduction of allowances.--For each covered
facility that, in any calendar year, emits excess
emissions, the Administrator shall deduct, from
emission allowances allocated to the covered facility
for the calendar year, or for succeeding years during
which offsets are required, emission allowances equal
to the excess quantity, in tons, of the excess
emissions.
(c) Prohibition.--It shall be unlawful for the owner or operator of
any facility liable for a penalty and offset under this section to
fail--
(1) to pay the penalty in accordance with this section;
(2) to provide, and thereafter comply with, a proposed plan
for compliance as required by subsection (b)(2); and
(3) to offset excess emissions as required by subsection
(b)(1).
(d) No Effect on Other Section.--Nothing in this subtitle limits or
otherwise affects the application of section 9002(b).
SEC. 1204. RULEMAKING.
Not later than 2 years after the date of enactment of this Act, the
Administrator shall, by rule, expand the definition of the term
``covered facility'' to ensure the inclusion of all greenhouse gas
emissions from natural gas emitted, flared during production or
processing, or sold for use in the United States.
TITLE II--MANAGING AND CONTAINING COSTS EFFICIENTLY
Subtitle A--Trading
SEC. 2101. SALE, EXCHANGE, AND RETIREMENT OF EMISSION ALLOWANCES.
Except as otherwise provided in this Act, the lawful holder of an
emission allowance may, without restriction, sell, exchange, transfer,
submit for compliance in accordance with section 1202, or retire the
emission allowance.
SEC. 2102. NO RESTRICTION ON TRANSACTIONS.
The privilege of purchasing, holding, selling, exchanging, and
retiring emission allowances shall not be restricted to the owners and
operators of covered facilities.
SEC. 2103. ALLOWANCE TRANSFER SYSTEM.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall promulgate regulations
to carry out the provisions of this Act relating to emission
allowances, including regulations providing that the transfer of
emission allowances shall not be effective until such date as a written
certification of the transfer, signed by a responsible official of each
party to the transfer, is received and recorded by the Administrator in
accordance with those regulations.
(b) Transfers.--
(1) In general.--The regulations promulgated under
subsection (a) shall permit the transfer of allowances prior to
the issuance of the allowances.
(2) Deduction and addition of transfers.--A recorded pre-
allocation transfer of allowances shall be--
(A) deducted by the Administrator from the number
of allowances that would otherwise be distributed to
the transferor; and
(B) added to those allowances distributed to the
transferee.
SEC. 2104. ALLOWANCE TRACKING SYSTEM.
The regulations promulgated under section 2103(a) shall include a
system for issuing, recording, and tracking emission allowances that
shall specify all necessary procedures and requirements for an orderly
and competitive functioning of the emission allowance system.
Subtitle B--Banking
SEC. 2201. INDICATION OF CALENDAR YEAR.
An emission allowance submitted to the Administrator by the owner
or operator of a covered facility in accordance with section 1202(a)
shall not be required to indicate in the identification number of the
emission allowance the calendar year for which the emission allowance
is submitted.
SEC. 2202. EFFECT OF TIME.
The passage of time shall not, by itself, cause an emission
allowance to be retired or otherwise diminish the compliance value of
the emission allowance.
Subtitle C--Borrowing
SEC. 2301. REGULATIONS.
(a) In General.--Not later than 3 years after the date of enactment
of this Act, the Administrator shall promulgate regulations under
which, subject to subsection (b), the owner or operator of a covered
facility may--
(1) borrow emission allowances from the Administrator; and
(2) for a calendar year, submit borrowed emission
allowances to the Administrator in satisfaction of up to 15
percent of the compliance obligation under section 1202(a).
(b) Limitation.--An emission allowance borrowed under subsection
(a) shall be an emission allowance established by the Administrator for
a specific future calendar year under subsection 1201(a).
SEC. 2302. TERM.
The owner or operator of a covered facility shall not submit, and
the Administrator shall not accept, a borrowed emission allowance in
partial satisfaction of the compliance obligation under section 1202(a)
for any calendar year that is more than 5 years earlier than the
calendar year included in the identification number of the borrowed
emission allowance.
SEC. 2303. REPAYMENT WITH INTEREST.
For each borrowed emission allowance submitted in partial
satisfaction of the compliance obligation under subsection 1202(a) for
a particular calendar year (referred to in this section as the ``use
year''), the number of emission allowances that the owner or operator
is required to submit under section 1202(a) for the year from which the
borrowed emission allowance was taken (referred to in this section as
the ``source year'') shall be increased by an amount equal to the
product obtained by multiplying--
(1) 1.1; and
(2) the number of years beginning after the use year and
before the source year.
Subtitle D--Offsets
SEC. 2401. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR AGRICULTURAL
PRODUCERS.
(a) Establishment.--The Secretary of Agriculture, acting through
the Chief of the Natural Resources Conservation Service, the Chief of
the Forest Service, the Administrator of the Cooperative State
Research, Education, and Extension Service, and land-grant colleges and
universities, in consultation with the Administrator and the heads of
other appropriate departments and agencies, shall establish an outreach
initiative to provide information to agricultural producers,
agricultural organizations, foresters, and other landowners about
opportunities under this subtitle to earn new revenue.
(b) Components.--The initiative under this section--
(1) shall be designed to ensure that, to the maximum extent
practicable, agricultural organizations and individual
agricultural producers, foresters, and other landowners receive
detailed practical information about--
(A) opportunities to earn new revenue under this
subtitle;
(B) measurement protocols, monitoring, verifying,
inventorying, registering, insuring, and marketing
offsets under this title;
(C) emerging domestic and international markets for
energy crops, allowances, and offsets; and
(D) local, regional, and national databases and
aggregation networks to facilitate achievement,
measurement, registration, and sales of offsets;
(2) shall provide--
(A) outreach materials, including the handbook
published under subsection (c), to interested parties;
(B) workshops; and
(C) technical assistance; and
(3) may include the creation and development of regional
marketing centers or coordination with existing centers
(including centers within the Natural Resources Conservation
Service or the Cooperative State Research, Education, and
Extension Service or at land-grant colleges and universities).
(c) Handbook.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Agriculture, in
consultation with the Administrator and after an opportunity
for public comment, shall publish a handbook for use by
agricultural producers, agricultural cooperatives, foresters,
other landowners, offset buyers, and other stakeholders that
provides easy-to-use guidance on achieving, reporting,
registering, and marketing offsets.
(2) Distribution.--The Secretary of Agriculture shall
ensure, to the maximum extent practicable, that the handbook--
(A) is made available through the Internet and in
other electronic media;
(B) includes, with respect to the electronic form
of the handbook described in subparagraph (A),
electronic forms and calculation tools to facilitate
the petition process described in section 2404; and
(C) is distributed widely through land-grant
colleges and universities and other appropriate
institutions.
SEC. 2402. ESTABLISHMENT OF DOMESTIC OFFSET PROGRAM.
(a) Alternative Means of Compliance.--Beginning with calendar year
2012, the owner or operator of a covered entity may satisfy up to 15
percent of the total allowance submission requirement of the covered
entity under section 1202(a) by submitting offset allowances generated
in accordance with this subtitle.
(b) Regulations Required.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Administrator, in conjunction with
the Secretary of Agriculture, shall promulgate regulations
authorizing the issuance and certification of offset
allowances.
(2) Certain sources.--
(A) In general.--For offsets from sources of
greenhouse gases not linked to agricultural, forestry,
or other land use-related projects, the regulations
promulgated under this subsection shall require that
the owner of the project establish the project baseline
and register emissions under the Federal Greenhouse Gas
Registry established under section 1105.
(B) Requirement.--The regulations described in
subparagraph (A) shall--
(i) authorize the issuance and
certification of offset allowances for
greenhouse gas emission reductions below the
project baseline; and
(ii) ensure that those offsets represent
real, verifiable, additional, permanent, and
enforceable reductions in greenhouse gas
emissions or increases in sequestration.
(3) Agricultural, forestry, and other land use-related
projects.--For offsets from certain agricultural, forestry, and
other land use-related projects undertaken within the United
States, the regulations promulgated under this subsection shall
include provisions that--
(A) ensure that those offsets represent real,
verifiable, additional, permanent, and enforceable
reductions in greenhouse gas emissions or increases in
biological sequestration;
(B) specify the types of offset projects eligible
to generate offset allowances, in accordance with
section 2403;
(C) establish procedures for project initiation and
approval, in accordance with section 2404;
(D) establish procedures to monitor, quantify, and
discount reductions in greenhouse gas emissions or
increases in biological sequestration, in accordance
with subsections (d) through (g) of section 2404;
(E) establish procedures for third-party
verification, registration, and issuance of offset
allowances, in accordance with section 2405;
(F) ensure permanence of offsets by mitigating and
compensating for reversals, in accordance with section
2406; and
(G) assign a unique serial number to each offset
allowance issued under this section.
(c) Offset Allowances Awarded.--The Administrator shall issue
offset allowances for qualifying emission reductions and biological
sequestrations from offset projects that satisfy the applicable
requirements of this subtitle.
(d) Ownership.--Initial ownership of an offset allowance shall lie
with a project developer, unless otherwise specified in a legally-
binding contract or agreement.
(e) Transferability.--An offset allowance generated pursuant to
this subtitle may be sold, traded, or transferred, on the conditions
that--
(1) the offset allowance has not expired or been retired or
canceled; and
(2) liability and responsibility for mitigating and
compensating for reversals of registered offset allowances is
specified in accordance with section 2406(b).
SEC. 2403. ELIGIBLE OFFSET PROJECT TYPES.
(a) In General.--Offset allowances from agricultural, forestry, and
other land use-related projects shall be limited to those allowances
achieving an offset of 1 or more greenhouse gases by a method other
than a reduction of combustion of greenhouse gas-emitting fuel.
(b) Categories of Eligible Offset Projects.--Subject to the
requirements promulgated pursuant to section 2402(b), the types of
operations eligible to generate offset allowances under this subtitle
include--
(1) agricultural and rangeland sequestration and management
practices, including--
(A) altered tillage practices;
(B) winter cover cropping, continuous cropping, and
other means to increase biomass returned to soil in
lieu of planting followed by fallowing;
(C) conversion of cropland to rangeland or
grassland, on the condition that the land has been in
nonforest use for at least 10 years before the date of
initiation of the project;
(D) reduction of nitrogen fertilizer use or
increase in nitrogen use efficiency;
(E) reduction in the frequency and duration of
flooding of rice paddies; and
(F) reduction in carbon emissions from organic
soils;
(2) changes in carbon stocks attributed to land use change
and forestry activities limited to--
(A) afforestation or reforestation of acreage not
forested as of October 18, 2007; and
(B) forest management resulting in an increase in
forest stand volume;
(3) manure management and disposal, including--
(A) waste aeration; and
(B) methane capture and combustion;
(4) subject to the requirements of this subtitle, any other
terrestrial offset practices identified by the Administrator,
including--
(A) the capture or reduction of fugitive greenhouse
gas emissions for which no covered facility is required
under section 1202(a) to submit any emission
allowances, offset allowances, or international
emission allowances;
(B) methane capture and combustion at
nonagricultural facilities; and
(C) other actions that result in the avoidance or
reduction of greenhouse gas emissions in accordance
with section 2402; and
(5) combinations of any of the offset practices described
in paragraphs (1) through (4).
SEC. 2404. PROJECT INITIATION AND APPROVAL.
(a) Project Approval.--A project developer--
(1) may submit a petition for offset project approval at
any time following the effective date of regulations
promulgated under section 2402(b); but
(2) may not register or issue offset allowances until such
approval is received and until after the emission reductions or
sequestrations supporting the offset allowances have actually
occurred.
(b) Petition Process.--Prior to offset registration and issuance of
offset allowances, a project developer shall submit a petition to the
Administrator, consisting of--
(1) a copy of the monitoring and quantification plan
prepared for the offset project, as described under subsection
(d);
(2) a greenhouse gas initiation certification, as described
under subsection (e); and
(3) subject to the requirements of this subtitle, any other
information identified by the Administrator in the regulations
promulgated under section 2402 as necessary to meet the
objectives of this subtitle.
(c) Approval and Notification.--
(1) In general.--Not later than 180 days after the date on
which the Administrator receives a complete petition under
subsection (b), the Administrator shall--
(A) determine whether the monitoring and
quantification plan satisfies the applicable
requirements of this subtitle;
(B) determine whether the greenhouse gas initiation
certification indicates a significant deviation in
accordance with subsection (e)(3);
(C) notify the project developer of the
determinations under subparagraphs (A) and (B); and
(D) issue offset allowances for approved projects.
(2) Appeal.--The Administrator shall establish mechanisms
for appeal and review of determinations made under this
subsection.
(d) Monitoring and Quantification.--
(1) In general.--A project developer shall make use of the
standardized tools and methods described in this section to
monitor, quantify, and discount reductions in greenhouse gas
emissions or increases in sequestration.
(2) Monitoring and quantification plan.--A monitoring and
quantification plan shall be used to monitor, quantify, and
discount reductions in greenhouse gas emissions or increases in
sequestration as described by this subsection.
(3) Plan completion and retention.--A monitoring and
quantification plan shall be--
(A) completed for all offset projects prior to
offset project initiation; and
(B) retained by the project developer for the
duration of the offset project.
(4) Plan requirements.--Subject to section 2402, the
Administrator, in conjunction with the Secretary of
Agriculture, shall specify the required components of a
monitoring and quantification plan, including--
(A) a description of the offset project, including
project type;
(B) a determination of accounting periods;
(C) an assignment of reporting responsibility;
(D) the contents and timing of public reports,
including summaries of the original data, as well as
the results of any analyses;
(E) a delineation of project boundaries, based on
acceptable methods and formats;
(F) a description of which of the monitoring and
quantification tools developed under subsection (f) are
to be used to monitor and quantify changes in
greenhouse gas fluxes or carbon stocks associated with
a project;
(G) a description of which of the standardized
methods developed under subsection (g) to be used to
determine additionality, estimate the baseline carbon,
and discount for leakage;
(H) based on the standardized methods chosen in
subparagraphs (F) and (G), a determination of
uncertainty in accordance with subsection (h);
(I) what site-specific data, if any, will be used
in monitoring, quantification, and the determination of
discounts;
(J) a description of procedures for use in managing
and storing data, including quality-control standards
and methods, such as redundancy in case records are
lost;
(K) subject to the requirements of this subtitle,
any other information identified by the Administrator
or the Secretary of Agriculture as being necessary to
meet the objectives of this subtitle; and
(L) a description of the risk of reversals for the
project, including any way in which the proposed
project may alter the risk of reversal for the project
or other projects in the area.
(e) Greenhouse Gas Initiation Certification.--
(1) In general.--In reviewing a petition submitted under
subsection (b), the Administrator shall seek to exclude each
activity that undermines the integrity of the offset program
established under this subtitle, such as the conversion or
clearing of land, or marked change in management regime, in
anticipation of offset project initiation.
(2) Greenhouse gas initiation certification requirements.--
A greenhouse gas initiation certification developed under this
subsection shall include--
(A) the estimated greenhouse gas flux or carbon
stock for the offset project for each of the 4 complete
calendar years preceding the effective date of the
regulations promulgated under section 2402(b); and
(B) the estimated greenhouse gas flux or carbon
stock for the offset project, averaged across each of
the 4 calendar years preceding the effective date of
the regulations promulgated under section 2402(b).
(3) Determination of significant deviation.--Based on
standards developed by the Administrator, in conjunction with
the Secretary of Agriculture--
(A) each greenhouse gas initiation certification
submitted pursuant to this section shall be reviewed;
and
(B) a determination shall be made as to whether, as
a result of activities or behavior inconsistent with
the purposes of this title, a significant deviation
exists between the average annual greenhouse gas flux
or carbon stock and the greenhouse gas flux or carbon
stock for a given year.
(4) Adjustment for projects with significant deviation.--In
the case of a significant deviation, the Administrator shall
adjust the number of allowances awarded in order to account for
the deviation.
(f) Development of Monitoring and Quantification Tools for Offset
Projects.--
(1) In general.--Subject to section 2402(b), the
Administrator, in conjunction with the Secretary of
Agriculture, shall develop standardized tools for use in the
monitoring and quantification of changes in greenhouse gas
fluxes or carbon stocks for each offset project type listed
under section 2403(b).
(2) Tool development.--The tools used to monitor and
quantify changes in greenhouse gas fluxes or carbon stocks
shall, for each project type, include applicable--
(A) statistically-sound field and remote sensing
sampling methods, procedures, techniques, protocols, or
programs;
(B) models, factors, equations, or look-up tables;
and
(C) any other process or tool considered to be
acceptable by the Administrator, in conjunction with
the Secretary of Agriculture.
(g) Development of Accounting and Discounting Methods.--
(1) In general.--The Administrator, in consultation with
the Secretary of Agriculture, shall--
(A) develop standardized methods for use in
accounting for additionality and uncertainty,
estimating the baseline, and discounting for leakage
for each offset project type listed under section
2403(b); and
(B) require that leakage be subtracted from
reductions in greenhouse gas emissions or increases in
sequestration attributable to a project.
(2) Additionality determination and baseline estimation.--
The standardized methods used to determine additionality and
establish baselines shall, for each project type, at a
minimum--
(A) in the case of a sequestration project,
determine the greenhouse gas flux and carbon stock on
comparable land identified on the basis of--
(i) similarity in current management
practices;
(ii) similarity of regional, State, or
local policies or programs; and
(iii) similarity in geographical and
biophysical characteristics;
(B) in the case of an emission reduction project,
use as a basis emissions from comparable land or
facilities; and
(C) in the case of a sequestration project or
emission reduction project, specify a selected time
period.
(3) Leakage.--The standardized methods used to determine
and discount for leakage shall, at a minimum, take into
consideration--
(A) the scope of the offset system in terms of
activities and geography covered;
(B) the markets relevant to the offset project;
(C) emission intensity per unit of production, both
inside and outside of the offset project; and
(D) a time period sufficient in length to yield a
stable leakage rate.
(h) Uncertainty for Agricultural and Forestry Projects.--
(1) In general.--The Administrator, in conjunction with the
Secretary of Agriculture, shall develop standardized methods
for use in determining and discounting for uncertainty for each
offset project type listed under section 2403(b).
(2) Basis.--The standardized methods used to determine and
discount for uncertainty shall be based on--
(A) the robustness and rigor of the methods used by
a project developer to monitor and quantify changes in
greenhouse gas fluxes or carbon stocks;
(B) the robustness and rigor of methods used by a
project developer to determine additionality and
leakage; and
(C) an exaggerated proportional discount that
increases relative to uncertainty, as determined by the
Administrator, in conjunction with the Secretary of
Agriculture, to encourage better measurement and
accounting.
(i) Acquisition of New Data and Review of Methods for Agricultural
and Forestry Projects.--The Administrator, in conjunction with the
Secretary of Agriculture, shall--
(1) establish a comprehensive field sampling program to
improve the scientific bases on which the standardized tools
and methods developed under this section are based; and
(2) review and revise the standardized tools and methods
developed under this section, based on--
(A) validation of existing methods, protocols,
procedures, techniques, factors, equations, or models;
(B) development of new methods, protocols,
procedures, techniques, factors, equations, or models;
(C) increased availability of field data or other
datasets; and
(D) any other information identified by the
Administrator, in conjunction with the Secretary of
Agriculture, that is necessary to meet the objectives
of this subtitle.
(j) Exclusion.--No activity for which any emission allowances are
received under subtitle G of title III shall generate offset allowances
under this subtitle.
SEC. 2405. OFFSET VERIFICATION AND ISSUANCE OF ALLOWANCES.
(a) In General.--Offset allowances may be claimed for net emission
reductions or increases in sequestration annually, after accounting for
any necessary discounts in accordance with section 2404, by submitting
a verification report for an offset project to the Administrator.
(b) Offset Verification.--
(1) Scope of verification.--A verification report for an
offset project shall--
(A) be completed by a verifier accredited in
accordance with paragraph (3); and
(B) shall be developed taking into consideration--
(i) the information and methodology
contained within a monitoring and
quantification plan;
(ii) data and subsequent analysis of the
offset project, including--
(I) quantification of net emission
reductions or increases in
sequestration;
(II) determination of
additionality;
(III) calculation of leakage;
(IV) assessment of permanence;
(V) discounting for uncertainty;
and
(VI) the adjustment of net emission
reductions or increases in
sequestration by the discounts
determined under clauses (II) through
(V); and
(iii) subject to the requirements of this
subtitle, any other information identified by
the Administrator as being necessary to achieve
the purposes of this subtitle.
(2) Verification report requirements.--The Administrator
shall specify the required components of a verification report,
including--
(A) the quantity of offsets generated;
(B) the amount of discounts applied;
(C) an assessment of methods (and the
appropriateness of those methods);
(D) an assessment of quantitative errors or
omissions (and the effect of the errors or omissions on
offsets);
(E) any potential conflicts of interest between a
verifier and project developer; and
(F) any other provision that the Administrator
considers to be necessary to achieve the purposes of
this subtitle.
(3) Verifier accreditation.--
(A) In general.--Not later than 18 months after the
date of enactment of this Act, the Administrator shall
promulgate regulations establishing a process and
requirements for accreditation by a third-party
verifier that has no conflicts of interest.
(B) Public accessibility.--Each verifier meeting
the requirements for accreditation in accordance with
this paragraph shall be listed in a publicly-accessible
database, which shall be maintained and updated by the
Administrator.
(c) Registration and Awarding of Offsets.--
(1) In general.--Not later than 90 days after the date on
which the Administrator receives a verification report required
under subsection (b), the Administrator shall--
(A) determine whether the offsets satisfy the
applicable requirements of this subtitle; and
(B) notify the project developer of that
determination.
(2) Affirmative determination.--In the case of an
affirmative determination under paragraph (1), the
Administrator shall--
(A) register the offset allowances in accordance
with this subtitle; and
(B) issue the offset allowances.
(3) Appeal and review.--The Administrator shall establish
mechanisms for the appeal and review of determinations made
under this subsection.
SEC. 2406. TRACKING OF REVERSALS FOR SEQUESTRATION PROJECTS.
(a) Reversal Certification.--
(1) In general.--Subject to section 2402, the Administrator
shall promulgate regulations requiring the submission of a
reversal certification for each offset project on an annual
basis following the registration of offset allowances.
(2) Requirements.--A reversal certification submitted in
accordance with this subsection shall state--
(A) whether any unmitigated reversal relating to
the offset project has occurred in the year preceding
the year in which the certification is submitted; and
(B) the quantity of each unmitigated reversal.
(b) Effect on Offset Allowances.--
(1) Invalidity.--The Administrator shall declare invalid
all offset allowances issued for any offset project that has
undergone a complete reversal.
(2) Partial reversal.--In the case of an offset project
that has undergone a partial reversal, the Administrator shall
render invalid offset allowances issued for the offset project
in direct proportion to the degree of reversal.
(c) Accountability for Reversals.--Liability and responsibility for
compensation of a reversal of a registered offset allowance under
subsection (a) shall lie with the owner of the offset allowance, as
described in section 2402.
(d) Compensation for Reversals.--The unmitigated reversal of 1 or
more registered offset allowances that were submitted for the purpose
of compliance with section 1202(a) shall require the submission of--
(1) an equal number of offset allowances; or
(2) a combination of offset allowances and emission
allowances equal to the unmitigated reversal.
(e) Project Termination.--A project developer may cease
participation in the domestic offset program established under this
subtitle at any time, on the condition that any registered allowances
awarded for increases in sequestration have been compensated for by the
project developer through the submission of an equal number of any
combination of offset allowances and emission allowances.
SEC. 2407. EXAMINATIONS.
(a) Regulations.--Not later than 2 years after the date of
enactment of this Act, the Administrator, in conjunction with the
Secretary of Agriculture, shall promulgate regulations governing the
examination and auditing of offset allowances.
(b) Requirements.--The regulations promulgated under this section
shall specifically consider--
(1) principles for initiating and conducting examinations;
(2) the type or scope of examinations, including--
(A) reporting and recordkeeping; and
(B) site review or visitation;
(3) the rights and privileges of an examined party; and
(4) the establishment of an appeal process.
SEC. 2408. TIMING AND THE PROVISION OF OFFSET ALLOWANCES.
(a) Initiation of Offset Projects.--An offset project that
commences operation on or after the effective date of regulations
promulgated under section 2407(a) shall be eligible to generate offset
allowances under this subtitle if the offset project meets the other
applicable requirements of this subtitle.
(b) Pre-Existing Projects.--
(1) In general.--The Administrator may allow for the
transition into the Registry of offset projects and banked
offset allowances that, as of the effective date of regulations
promulgated under section 2407(a), are registered under or meet
the standards of the Climate Registry, the California Action
Registry, the GHG Registry, the Chicago Climate Exchange, the
GHG CleanProjects Registry, or any other Federal, State, or
private reporting programs or registries if the Administrator
determines that such other offset projects and banked offset
allowances under those other programs or registries satisfy the
applicable requirements of this subtitle.
(2) Exception.--An offset allowance that is expired,
retired, or canceled under any other offset program, registry,
or market as of the effective date of regulations promulgated
under section 2407(a) shall be ineligible for transition into
the Registry.
SEC. 2409. OFFSET REGISTRY.
In addition to the requirements established by section 2404, an
offset allowance registered under this subtitle shall be accompanied in
the Registry by--
(1) a verification report submitted pursuant to section
2405(a);
(2) a reversal certification submitted pursuant to section
2406(b); and
(3) subject to the requirements of this subtitle, any other
information identified by the Administrator as being necessary
to achieve the purposes of this subtitle.
SEC. 2410. ENVIRONMENTAL CONSIDERATIONS.
(a) Coordination To Minimize Negative Effects.--In promulgating
regulations under this subtitle, the Administrator, in conjunction with
the Secretary of Agriculture, shall act (including by rejecting
projects, if necessary) to avoid or minimize, to the maximum extent
practicable, adverse effects on human health or the environment
resulting from the implementation of offset projects under this
subtitle.
(b) Report on Positive Effects.--Not later than 2 years after the
date of enactment of this Act, the Administrator, in conjunction with
the Secretary of Agriculture, shall submit to Congress a report
detailing--
(1) the incentives, programs, or policies capable of
fostering improvements to human health or the environment in
conjunction with the implementation of offset projects under
this subtitle; and
(2) the cost of those incentives, programs, or policies.
(c) Use of Native Plant Species in Offset Projects.--Not later than
18 months after the date of enactment of this Act, the Administrator,
in conjunction with the Secretary of Agriculture, shall promulgate
regulations for the selection, use, and storage of native and nonnative
plant materials--
(1) to ensure native plant materials are given primary
consideration, in accordance with applicable Department of
Agriculture guidance for use of native plant materials;
(2) to prohibit the use of Federal- or State-designated
noxious weeds; and
(3) to prohibit the use of a species listed by a regional
or State invasive plant council within the applicable region or
State.
SEC. 2411. PROGRAM REVIEW.
Not later than 5 years after the date of enactment of this Act, and
periodically thereafter, the Administrator, in conjunction with the
Secretary of Agriculture, shall review and revise, as necessary to
achieve the purposes of this Act, the regulations promulgated under
this subtitle.
SEC. 2412. RETAIL CARBON OFFSETS.
(a) Definition of Retail Carbon Offset.--In this section, the term
``retail carbon offset'' means any carbon credit or carbon offset that
cannot be used in satisfaction of any mandatory compliance obligation
under a regulatory system for reducing greenhouse gas emissions.
(b) Qualifying Levels and Requirements.--Not later than January 1,
2009, the Administrator shall establish new qualifying levels and
requirements for Energy Star certification for retail carbon offsets,
effective beginning January 1, 2010.
Subtitle E--International Emission Allowances
SEC. 2501. USE OF INTERNATIONAL EMISSION ALLOWANCES.
The owner or operator of a covered facility may satisfy up to 15
percent of the allowance submission requirement of the covered facility
under section 1202(a) by submitting emission allowances obtained on a
foreign greenhouse gas emissions trading market, on the condition that
the Administrator has certified the market in accordance with the
regulations promulgated pursuant to section 2502(a).
SEC. 2502. REGULATIONS.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Administrator shall promulgate regulations, taking
into consideration protocols adopted in accordance with the United
Nations Framework Convention on Climate Change, done at New York on May
9, 1992--
(1) approving the use under this subtitle of emission
allowances from such foreign greenhouse gas emissions trading
markets as the regulations may establish; and
(2) permitting the use of international emission allowances
from the foreign country that issued the emission allowances.
(b) Requirements.--The regulations promulgated under subsection (a)
shall require that, in order to be approved for use under this
subtitle--
(1) an emission allowance shall have been issued by a
foreign country pursuant to a governmental program that imposes
mandatory absolute tonnage limits on greenhouse gas emissions
from the foreign country, or 1 or more industry sectors in that
country, pursuant to protocols described in subsection (a); and
(2) the governmental program be of comparable stringency to
the program established by this Act, including comparable
monitoring, compliance, and enforcement.
SEC. 2503. FACILITY CERTIFICATION.
The owner or operator of a covered facility who submits an
international emission allowance under this subtitle shall certify that
the allowance has not been retired from use in the registry of the
applicable foreign country.
Subtitle F--Carbon Market Efficiency Board
SEC. 2601. PURPOSES.
The purposes of this subtitle are--
(1) to ensure that the imposition of limits on greenhouse
gas emissions will not significantly harm the economy of the
United States; and
(2) to establish a Carbon Market Efficiency Board to ensure
the implementation and maintenance of a stable, functioning,
and efficient market in emission allowances.
SEC. 2602. ESTABLISHMENT OF CARBON MARKET EFFICIENCY BOARD.
(a) Establishment.--There is established a board, to be known as
the ``Carbon Market Efficiency Board'' (referred to in this subtitle as
the ``Board'').
(b) Purposes.--The purposes of the Board are--
(1) to promote the achievement of the purposes of this Act;
(2) to observe the national greenhouse gas emission market
and evaluate periods during which the cost of emission
allowances provided under Federal law might pose significant
harm to the economy; and
(3) to submit to the President and Congress, and publish on
the Internet, quarterly reports--
(A) describing--
(i) the status of the emission allowance
market established under this Act;
(ii) the economic cost and benefits of the
market, regional, industrial, and consumer
responses to the market;
(iii) where practicable, energy investment
responses to the market;
(iv) any corrective measures that should be
carried out to relieve excessive net costs of
the market;
(v) plans to compensate for those measures
to ensure that the long-term emission-reduction
goals of this Act are achieved; and
(vi) any instances of actual or potential
fraud on, or manipulation of, the market that
the Board has identified, and the effects of
such fraud or manipulation;
(B) that are timely and succinct to ensure regular
monitoring of market trends; and
(C) that are prepared independently by the Board.
(c) Membership.--
(1) Composition.--The Board shall be composed of--
(A) 7 members who are citizens of the United
States, to be appointed by the President, by and with
the advice and consent of the Senate; and
(B) an advisor who is a scientist with expertise in
climate change and the effects of climate change on the
environment, to be appointed by the President, by and
with the advice and consent of the Senate.
(2) Requirements.--In appointing members of the Board under
paragraph (1), the President shall--
(A) ensure fair representation of the financial,
agricultural, industrial, and commercial sectors, and
the geographical regions, of the United States, and
include a representative of consumer interests;
(B) appoint not more than 1 member from each such
geographical region; and
(C) ensure that not more than 4 members of the
Board serving at any time are affiliated with the same
political party.
(3) Compensation.--
(A) In general.--A member of the Board shall be
compensated at a rate equal to the daily equivalent of
the annual rate of basic pay prescribed for level II of
the Executive Schedule under section 5313 of title 5,
United States Code, for each day (including travel
time) during which the member is engaged in the
performance of the duties of the Board.
(B) Chairperson.--The Chairperson of the Board
shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed
for level I of the Executive Schedule under section
5312 of title 5, United States Code, for each day
(including travel time) during which the member is
engaged in the performance of the duties of the Board.
(4) Prohibitions.--
(A) Conflicts of interest.--An individual employed
by, or holding any official relationship (including any
shareholder) with, any entity engaged in the
generation, transmission, distribution, or sale of
energy, an individual who has any pecuniary interest in
the generation, transmission, distribution, or sale of
energy, or an individual who has a pecuniary interest
in the implementation of this Act, shall not be
appointed to the Board under this subsection.
(B) No other employment.--A member of the Board
shall not hold any other employment during the term of
service of the member.
(d) Term; Vacancies.--
(1) Term.--
(A) In general.--The term of a member of the Board
shall be 14 years, except that the members first
appointed to the Board shall be appointed for terms in
a manner that ensures that--
(i) the term of not more than 1 member
shall expire during any 2-year period; and
(ii) no member serves a term of more than
14 years.
(B) Oath of office.--A member shall take the oath
of office of the Board by not later than 15 days after
the date on which the member is appointed under
subsection (c)(1).
(C) Removal.--
(i) In general.--A member may be removed
from the Board on determination of the
President for cause.
(ii) Notification.--Not later than 30 days
before removing a member from the Board for
cause under clause (i), the President shall
provide to Congress an advance notification of
the determination by the President to remove
the member.
(2) Vacancies.--
(A) In general.--A vacancy on the Board--
(i) shall not affect the powers of the
Board; and
(ii) shall be filled in the same manner as
the original appointment was made.
(B) Service until new appointment.--A member of the
Board the term of whom has expired or otherwise been
terminated shall continue to serve until the date on
which a replacement is appointed under subparagraph
(A)(ii), if the President determines that service to be
appropriate.
(e) Chairperson and Vice-Chairperson.--Of members of the Board, the
President shall appoint--
(1) 1 member to serve as Chairperson of the Board for a
term of 4 years; and
(2) 1 member to serve as Vice-Chairperson of the Board for
a term of 4 years.
(f) Meetings.--
(1) Initial meeting.--The Board shall hold the initial
meeting of the Board as soon as practicable after the date on
which all members have been appointed to the Board under
subsection (c)(1).
(2) Presiding officer.--A meeting of the Board shall be
presided over by--
(A) the Chairperson;
(B) in any case in which the Chairperson is absent,
the Vice-Chairperson; or
(C) in any case in which the Chairperson and Vice-
Chairperson are absent, a chairperson pro tempore, to
be elected by the members of the Board.
(3) Quorum.--Four members of the Board shall constitute a
quorum for a meeting of the Board.
(4) Open meetings.--The Board shall be subject to section
552b of title 5, United States Code (commonly known as the
``Government in the Sunshine Act'').
(g) Records.--The Board shall be subject to section 552 of title 5,
United States Code (commonly known as the ``Freedom of Information
Act'').
(h) Review by Government Accountability Office.--Not later than
January 1, 2013, and annually thereafter, the Comptroller General of
the United States shall conduct a review of the efficacy of the Board
in fulfilling the purposes and duties of the Board under this subtitle.
SEC. 2603. DUTIES.
(a) Information Gathering.--
(1) Authority.--The Board shall collect and analyze
relevant market information to promote a full understanding of
the dynamics of the emission allowance market established under
this Act.
(2) Information.--The Board shall gather such information
as the Board determines to be appropriate regarding the status
of the market, including information relating to--
(A) emission allowance allocation and availability;
(B) the price of emission allowances;
(C) macro- and micro-economic effects of unexpected
significant increases and decreases in emission
allowance prices, or shifts in the emission allowance
market, should those increases, decreases, or shifts
occur;
(D) economic effect thresholds that could warrant
implementation of cost relief measures described in
section 2604(a) after the initial 2-year period
described in subsection (d)(2);
(E) in the event any cost relief measures described
in section 2604(a) are taken, the effects of those
measures on the market;
(F) maximum levels of cost relief measures that are
necessary to achieve avoidance of economic harm and
preserve achievement of the purposes of this Act; and
(G) the success of the market in promoting
achievement of the purposes of this Act.
(b) Treatment as Primary Activity.--
(1) In general.--During the initial 2-year period of
operation of the Board, information gathering under subsection
(a) shall be the primary activity of the Board.
(2) Subsequent authority.--After the 2-year period
described in paragraph (1), the Board shall assume authority to
implement the cost-relief measures described in section
2604(a).
(c) Study.--
(1) In general.--During the 2-year period beginning on the
date on which the emission allowance market established under
this Act begins operation, the Board shall conduct a study of
other markets for tradeable permits to emit covered greenhouse
gases.
(2) Report.--Not later than 180 days after the beginning of
the period described in paragraph (1), the Board shall submit
to Congress, and publish on the Internet, a report describing
the status of the market, specifically with respect to
volatility within the market and the average price of emission
allowances during that 180-day period.
(d) Employment of Cost Relief Measures.--
(1) In general.--If the Board determines that the emission
allowance market established under this Act poses a significant
harm to the economy of the United States, the Board shall carry
out such cost relief measures relating to that market as the
Board determines to be appropriate under section 2604(a).
(2) Initial period.--During the 2-year period beginning on
the date on which the emission allowance market established
under this Act begins operation, if the Board determines that
the average daily closing price of emission allowances during a
180-day period exceeds the upper range of the estimate provided
under section 2605, the Board shall--
(A) increase the quantity of emission allowances
that covered facilities may borrow from the prescribed
allocations of the covered facilities for future years;
and
(B) take subsequent action as described in section
2604(a)(2).
(3) Requirements.--Any action carried out pursuant to this
subsection shall be subject to the requirements of section
2604(a)(3)(B).
(e) Reports.--The Board shall submit to the President and Congress
quarterly reports--
(1) describing the status of the emission allowance market
established under this Act, the economic effects of the market,
regional, industrial, and consumer responses to the market,
energy investment responses to the market, the effects on the
market of any fraud on, or manipulation of, the market that the
Board has identified, any corrective measures that should be
carried out to relieve excessive costs of the market, and plans
to compensate for those measures; and
(2) that are prepared independently by the Board, and not
in partnership with Federal agencies.
SEC. 2604. POWERS.
(a) Cost Relief Measures.--
(1) In general.--Beginning on the day after the date of
expiration of the 2-year period described in section 2603(b),
the Board may carry out 1 or more of the following cost relief
measures to ensure functioning, stable, and efficient markets
for emission allowances:
(A) Increase the quantity of emission allowances
that covered facilities may borrow from the prescribed
allocations of the covered facilities for future years.
(B) Expand the period during which a covered
facility may repay the Administrator for an emission
allowance as described in subparagraph (A).
(C) Lower the interest rate at which an emission
allowance may be borrowed as described in subparagraph
(A).
(D) Increase the quantity of emission allowances
obtained on a foreign greenhouse gas emissions trading
market that the owner or operator of any covered
facility may use to satisfy the allowance submission
requirement of the covered facility under section
1202(a), on the condition that the Administrator has
certified the market in accordance with the regulations
promulgated pursuant to section 2502(a).
(E) Increase the quantity of offset allowances
generated in accordance with subtitle D that the owner
or operator of any covered facility may use to satisfy
the total allowance submission requirement of the
covered facility under section 1202(a).
(F) Expand the total quantity of emission
allowances made available to all covered facilities at
any given time by borrowing against the total allowable
quantity of emission allowances to be provided for
future years.
(2) Subsequent actions.--On determination by the Board to
carry out a cost relief measure pursuant to paragraph (1), the
Board shall--
(A) allow the cost relief measure to be used only
during the applicable allocation year;
(B) exercise the cost relief measure incrementally,
and only as needed to avoid significant economic harm
during the applicable allocation year;
(C) specify the terms of the relief to be achieved
using the cost relief measure, including requirements
for entity-level or national market-level compensation
to be achieved by a specific date or within a specific
time period;
(D) in accordance with section 2603(e), submit to
the President and Congress a report describing the
actions carried out by the Board and recommendations
for the terms under which the cost relief measure
should be authorized by Congress and carried out by
Federal entities; and
(E) evaluate, at the end of the applicable
allocation year, actions that need to be carried out
during subsequent years to compensate for any cost
relief measure carried out during the applicable
allocation year.
(3) Action on expansion of borrowing.--
(A) In general.--If the Board carries out a cost
relief measure pursuant to paragraph (1) that results
in the expansion of borrowing of emission allowances
under this Act, and if the average daily closing price
of emission allowances for the 180-day period beginning
on the date on which borrowing is so expanded exceeds
the upper range of the estimate provided under section
2605, the Board shall increase the quantity of emission
allowances available for the applicable allocation year
in accordance with this paragraph.
(B) Requirements.--An increase in the quantity of
emission allowances under subparagraph (A) shall--
(i) apply to all covered facilities;
(ii) be allocated in accordance with the
applicable formulas and procedures established
under this Act;
(iii) be equal to not more than 5 percent
of the total quantity of emission allowances
otherwise available for the applicable
allocation year under this Act;
(iv) remain in effect only for the
applicable allocation year;
(v) specify the date by which the increase
shall be repaid by covered facilities through a
proportionate reduction of emission allowances
available for subsequent allocation years; and
(vi) require the repayment under clause (v)
to be made by not later than the date that is
15 years after the date on which the increase
is provided.
(b) Assessments.--Not more frequently than semiannually, the Board
may levy on owners and operators of covered facilities an assessment
sufficient to pay the estimated expenses of the Board and the salaries
of members of and employees of the Board during the 180-day period
beginning on the date on which the assessment is levied, taking into
account any deficit carried forward from the preceding 180-day period.
(c) Limitations.--Nothing in this section gives the Board the
authority--
(1) to consider or prescribe entity-level petitions for
relief from the costs of an emission allowance allocation or
trading program established under Federal law;
(2) to carry out any investigative or punitive process
under the jurisdiction of any Federal or State court;
(3) to interfere with, modify, or adjust any emission
allowance allocation scheme established under Federal law; or
(4) to modify the total quantity of emission allowances
issued under this Act for the period of calendar years 2012
through 2050.
SEC. 2605. ESTIMATE OF COSTS TO ECONOMY OF LIMITING GREENHOUSE GAS
EMISSIONS.
Not later than July 1, 2014, the Director of the Congressional
Budget Office, using economic and scientific analyses, shall submit to
Congress a report that describes--
(1) the projected price range at which emission allowances
are expected to trade during the 2-year period of the initial
greenhouse gas emission market established under Federal law;
and
(2) the projected impact of that market on the economy of
the United States.
TITLE III--ALLOCATING AND DISTRIBUTING ALLOWANCES
Subtitle A--Auctions
SEC. 3101. ALLOCATION FOR EARLY AUCTIONS.
Not later than 180 days after the date of enactment of this Act,
the Administrator shall allocate 5 percent of the emission allowances
established for calendar year 2012, 3 percent of the emission
allowances established for calendar year 2013, and 1 percent of the
emissions established for calendar 2014, to the Corporation for early
auctioning in accordance with section 4301.
SEC. 3102. ALLOCATION FOR ANNUAL AUCTIONS.
Not later than April 1, 2011, and annually thereafter through
calendar year 2049, the Administrator shall allocate to the Corporation
for annual auctioning a percentage of emission allowances for the
following calendar year, as follows:
----------------------------------------------------------------------------------------------------------------
Percentage of Emission Allowance
Calendar Year Account Allocated to the
Corporation
----------------------------------------------------------------------------------------------------------------
2012 21.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2013 24.5
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2014 27.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2015 29.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2016 30.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2017 31.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2018 33.5
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2019 34.5
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2020 36.5
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2021 39.75
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2022 41
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2023 43.25
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2024 45.75
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2025 48.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2026 51.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2027 55.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2028 58.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2029 61.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2030 62.75
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2031 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2032 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2033 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2034 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2035 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2036 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2037 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2038 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2039 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2040 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2041 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2042 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2043 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2044 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2045 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2046 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2047 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2048 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2049 69.5
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2050 69.5
----------------------------------------------------------------------------------------------------------------
Subtitle B--Early Action
SEC. 3201. ALLOCATION.
Not later than 2 years after the date of enactment of this Act, the
Administrator shall allocate to owners or operators of covered
facilities and other facilities that emit greenhouse gas, in
recognition of actions of the owners and operators taken since January
1, 1994, that resulted in verified and credible reductions of
greenhouse gas emissions--
(1) 5 percent of the emission allowances established for
calendar year 2012;
(2) 4 percent of the emission allowances established for
calendar year 2013;
(3) 3 percent of the emission allowances established for
calendar year 2014;
(4) 2 percent of the emission allowances established for
calendar year 2015; and
(5) 1 percent of the emission allowances established for
calendar year 2016.
SEC. 3202. DISTRIBUTION.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Administrator shall establish, by regulation,
procedures and standards for use in distributing, to owners and
operators of covered facilities and other facilities that emit
greenhouse gas, emission allowances allocated under section 3201.
(b) Consideration.--The procedures and standards established under
subsection (a) shall provide for consideration of verified and credible
emission reductions registered before the date of enactment of this Act
under--
(1) the Climate Leaders Program, or any other voluntary
greenhouse gas reduction program of the United States
Environmental Protection Agency and United States Department of
Energy;
(2) the Voluntary Reporting of Greenhouse Gases Program of
the Energy Information Administration;
(3) State or regional greenhouse gas emission reduction
programs that include systems for tracking and verifying the
greenhouse gas emission reductions; and
(4) voluntary entity programs that resulted in entity-wide
reductions in greenhouse gas emissions.
(c) Distribution.--Not later than 4 years after the date of
enactment of this Act, the Administrator shall distribute all emission
allowances allocated under section 3201.
Subtitle C--States
SEC. 3301. ALLOCATION FOR ENERGY SAVINGS.
(a) Allocation.--Not later than April 1, 2011, and annually
thereafter through calendar year 2049, the Administrator shall allocate
2 percent of the Emission Allowance Account for the following calendar
year among States that have adopted regulations by not later than the
date on which the allowance allocations are made, that subject
regulated natural gas and electric utilities that deliver gas or
electricity in those States to regulations that--
(1) automatically adjust the rates charged by natural gas
and electric utilities to fully recover fixed costs of service
without regard to whether their actual sales are higher or
lower than the forecast of sales on which the tariffed rates
were based; and
(2) make cost-effective energy-efficiency expenditures by
investor-owned natural gas or electric utilities at least as
rewarding to their shareholders as power or energy purchases,
or expenditures on new energy supplies or infrastructure.
(b) Allocation for Building Efficiency.--Not later than January 1,
2012, and annually thereafter through January 1, 2050, the
Administrator shall allocate 1 percent of the Emission Allowance
Account among States that are in compliance with section 304(c) of the
Energy Conservation and Production Act (as amended by section 5201).
(c) Distribution.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall establish procedures and
standards for the distribution of emission allowances to States in
accordance with subsections (a) and (b).
(d) Use.--Any State receiving emission allowances under this
section for a calendar year shall retire or use, in 1 or more of the
ways described in section 3303(c)(1), not less than 90 percent of the
emission allowances allocated to the State (or proceeds of the sale of
those allowances) under this section for the calendar year.
SEC. 3302. ALLOCATION FOR STATES WITH PROGRAMS THAT EXCEED FEDERAL
EMISSION REDUCTION TARGETS.
(a) Allocation.--Not later than April 1, 2011, and annually
thereafter through calendar year 2049, the Administrator shall allocate
2 percent of the Emission Allowance Account for the following calendar
year among States that have--
(1) before the date of enactment of this Act, enacted
statewide greenhouse gas emission reduction targets that are
more stringent than the nationwide targets established under
title II; and
(2) by the time of an allocation under this subsection,
imposed on covered facilities within the States aggregate
greenhouse gas emission limitations more stringent than those
imposed on covered facilities under title II.
(b) Distribution.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall establish procedures and
standards for use in distributing emission allowances among States in
accordance with subsection (a).
(c) Use.--Any State receiving emission allowances under this
section for a calendar year shall retire or use, in 1 or more of the
ways described in section 3303(c)(1), not less than 90 percent of the
emission allowances allocated to the State (or proceeds of the sale of
those allowances) under this section for the calendar year.
SEC. 3303. GENERAL ALLOCATION.
(a) Allocation.--Subject to subsection (d)(3), not later than April
1, 2011, and annually thereafter through calendar year 2049, the
Administrator shall allocate 5 percent of the Emission Allowance
Account for the following calendar year among States.
(b) Distribution.--The allowances available for allocation to
States under subsection (a) for a calendar year shall be distributed as
follows:
(1) For each calendar year, \1/3\ of the quantity of
allowances available for allocation to States under subsection
(a) shall be distributed among individual States based on the
proportion that--
(A) the expenditures of a State for the low-income
home energy assistance program established under the
Low-Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.) for the preceding calendar year;
bears to
(B) the expenditures of all States for that program
for the preceding calendar year.
(2) For each calendar year, \1/3\ of the quantity of
allowances available for allocation to States under subsection
(a) shall be distributed among the States based on the
proportion that--
(A) the population of a State, as determined by the
most recent decennial census preceding the calendar
year for which the allocation regulations are for the
allocation year; bears to
(B) the population of all States, as determined by
that census.
(3) For each calendar year, \1/3\ of the quantity of
allowances available for allocation to States under subsection
(a) shall be distributed among the States based on the
proportion that--
(A) the quantity of carbon dioxide that would be
emitted assuming that all of the coal that is mined,
natural gas that is processed, and petroleum that is
refined within the boundaries of a State during the
preceding year is completely combusted and that none of
the carbon dioxide emissions are captured, as
determined by the Secretary of Energy; bears to
(B) the aggregate quantity of carbon dioxide that
would be emitted assuming that all of the coal that is
mined, natural gas that is processed, and petroleum
that is refined in all States for the preceding year is
completely combusted and that none of the carbon
dioxide emissions are captured, as determined by the
Secretary of Energy.
(c) Use.--
(1) In general.--During any calendar year, a State shall
retire or use in 1 or more of the following ways not less than
90 percent of the allowances allocated to the State (or
proceeds of sale of those emission allowances) under this
section for that calendar year:
(A) To mitigate impacts on low-income energy
consumers.
(B) To promote energy efficiency (including support
of electricity and natural gas demand reduction, waste
minimization, and recycling programs).
(C) To promote investment in nonemitting
electricity generation technology, including planning
for the siting of facilities employing that technology
in States (including territorial waters of States).
(D) To improve public transportation and passenger
rail service and otherwise promote reductions in
vehicle miles traveled.
(E) To encourage advances in energy technology that
reduce or sequester greenhouse gas emissions.
(F) To address local or regional impacts of climate
change, including by accommodating, protecting, or
relocating affected communities and public
infrastructure.
(G) To collect, evaluate, disseminate, and use
information necessary for affected coastal communities
to adapt to climate change (such as information derived
from inundation prediction systems).
(H) To mitigate obstacles to investment by new
entrants in electricity generation markets and energy-
intensive manufacturing sectors.
(I) To address local or regional impacts of climate
change policy, including providing assistance to
displaced workers.
(J) To mitigate impacts on energy-intensive
industries in internationally competitive markets.
(K) To reduce hazardous fuels, and to prevent and
suppress wildland fire.
(L) To fund rural, municipal, and agricultural
water projects that are consistent with the sustainable
use of water resources.
(M) To fund any other purpose the States determine
to be necessary to mitigate any negative economic
impacts as a result of--
(i) global warming; or
(ii) new regulatory requirements as a
result of this Act.
(2) Deadline.--A State shall distribute or sell allowances
for use in accordance with paragraph (1) by not later than the
beginning of each allowance allocation year.
(3) Return of allowances.--Not later than 330 days before
the end of each allowance allocation year, a State shall return
to the Administrator any allowances not distributed by the
deadline under paragraph (2).
(4) Use for recycling.--During any calendar year, a State
shall retire or use not less than 5 percent of the emission
allowances allocated to the State (or proceeds of sale of those
emission allowances) under this section for increasing
recycling rates through activities such as--
(A) improving recycling infrastructure;
(B) increasing public education on the benefits of
recycling, particularly with respect to greenhouse
gases;
(C) improving residential, commercial, and
industrial collection of recyclables;
(D) improving recycling system efficiency;
(E) increasing recycling yields; and
(F) improving the quality and usefulness of
recycled materials.
(d) Program for Tribal Communities.--
(1) Establishment.--Not later than 3 years after the date
of enactment of this Act, the Administrator, in consultation
with the Secretary of the Interior, shall by regulation
establish a program for tribal communities--
(A) that is designed to deliver assistance to
tribal communities within the United States that face
disruption or dislocation as a result of global climate
change; and
(B) under which the Administrator shall distribute
0.5 percent of the Emission Allowance Account for each
calendar among tribal governments of the tribal
communities described in subparagraph (A).
(2) Allocation.--Beginning in the first calendar year that
begins after promulgation of the regulations referred to in
paragraph (1), and annually thereafter until calendar year
2050, the Administrator shall allocate 0.5 percent of the
Emission Allowance Account for each calendar year to the
program established under paragraph (1).
SEC. 3304. ALLOCATION FOR MASS TRANSIT.
(a) Allocation.--Not later than April 1, 2011, and annually
thereafter through calendar year 2049, the Administrator shall allocate
1 percent of the Emission Allowance Account for the following calendar
year among States.
(b) Distribution.--The emission allowances available for allocation
to States under subsection (a) for a calendar year shall be distributed
among the States based on the formula established in section
104(b)(1)(A) of title 23, United States Code.
(c) Use.--During any calendar year, a State receiving emission
allowances under this section shall--
(1) use the emission allowances (or proceeds of sale of
those emission allowances) only for--
(A) the operating costs of State and municipal mass
transit systems;
(B) efforts to increase mass transit service and
ridership in the State, including by adding new mass
transit systems; and
(C) efforts to increase the efficiency of mass
transit systems through the development, purchase, or
deployment of innovative technologies that reduce
emissions of greenhouse gases; and
(2) shall ensure that use of the emission allowances (or
proceeds of sale of those emission allowances) by the State for
the purposes described in paragraph (1) is geographically
distributed as follows:
(A) At least 60 percent in urban areas.
(B) At least 20 percent in areas that are not urban
areas.
(C) 20 percent as the State determines to be
appropriate.
(d) Return of Unused Emission Allowances.--Any State receiving
emission allowances under this section shall return to the
Administrator any such emission allowance that the State has failed to
use in accordance with subsection (c) by not later than 5 years after
the date of receipt of the emission allowance from the Administrator.
(e) Use of Returned Emission Allowances.--The Administrator shall
immediately transfer to the Corporation for auctioning under section
4302 any emission allowances returned to the Administrator under
subsection (d).
Subtitle D--Electricity Consumers
SEC. 3401. ALLOCATION.
Not later than April 1, 2011, and annually thereafter through
calendar year 2049, the Administrator shall allocate among load-serving
entities 9 percent of the Emission Allowance Account for the following
calendar year.
SEC. 3402. DISTRIBUTION.
(a) In General.--For each calendar year, the emission allowances
allocated under section 3401 shall be distributed by the Administrator
to each load-serving entity, including each rural electric cooperative
that serves as a load-serving entity in a State that is not a
participant in the pilot program established under section 3903(a),
based on the proportion that--
(1) the quantity of electricity delivered by the load-
serving entity during the 3 calendar years preceding the
calendar year for which the emission allowances are
distributed, adjusted upward for electricity not delivered as a
result of consumer energy-efficiency programs implemented by
the load-serving entity and verified by the regulatory agency
of the load-serving entity; bears to
(2) the total quantity of electricity delivered by all
load-serving entities during those 3 calendar years.
(b) Basis.--The Administrator shall base the determination of the
quantity of electricity delivered by a load-serving entity for the
purpose of subsection (a) on the most recent data available in annual
reports filed with the Energy Information Administration of the
Department of Energy.
SEC. 3403. USE.
(a) In General.--Any load-serving entity that accepts emission
allowances distributed under section 3402 shall--
(1) sell each emission allowance distributed to the load-
serving entity by not later than 1 year after receiving the
emission allowance; and
(2) pursue fair market value for each emission allowance
sold in accordance with paragraph (1).
(b) Proceeds.--All proceeds from the sale of emission allowances
under subsection (a) shall be used solely--
(1) to mitigate economic impacts on low- and middle-income
energy consumers, including by reducing transmission charges or
issuing rebates; and
(2) to promote energy efficiency on the part of energy
consumers.
(c) Prohibition on Rebates.--No load-serving entity may use any
proceeds from the sale of emission allowances under subsection (a) to
provide to any consumer a rebate that is based on the quantity of
electricity used by the consumer.
SEC. 3404. REPORTING.
(a) In General.--Each load-serving entity that accepts emission
allowances distributed under section 3402 shall, for each calendar year
for which the load-serving entity accepts emission allowances, submit
to the Administrator a report describing--
(1) the date of each sale of each emission allowance during
the preceding year;
(2) the amount of revenue generated from the sale of
emission allowances during the preceding year; and
(3) how, and to what extent, the load-serving entity used
the proceeds of the sale of the emission allowances during the
preceding year.
(b) Availability of Reports.--The Administrator shall make
available to the public all reports submitted by any load-serving
entity under subsection (b), including by publishing those reports on
the Internet.
Subtitle E--Natural Gas Consumers
SEC. 3501. ALLOCATION.
Not later than April 1, 2011, and annually thereafter through
calendar year 2049, the Administrator shall allocate among natural gas
local distribution companies 2 percent of the Emission Allowance
Account for the following calendar year.
SEC. 3502. DISTRIBUTION.
For each calendar year, the emission allowances allocated under
section 3501 shall be distributed by the Administrator to each natural
gas local distribution company based on the proportion that--
(1) the quantity of natural gas delivered by the natural
gas local distribution company during the 3 calendar years
preceding the calendar year for which the emission allowances
are distributed, adjusted upward for natural gas not delivered
as a result of consumer energy-efficiency programs implemented
by the natural gas local distribution company and verified by
the regulatory agency of the natural gas local distribution
company; bears to
(2) the total quantity of natural gas delivered by all
natural gas local distribution companies during those 3
calendar years.
SEC. 3503. USE.
(a) In General.--Any natural gas local distribution company that
accepts emission allowances distributed under section 3502 shall--
(1) sell each emission allowance distributed to the natural
gas local distribution company by not later than 1 year after
receiving the emission allowance; and
(2) pursue fair market value for each emission allowance
sold in accordance with paragraph (1).
(b) Proceeds.--All proceeds from the sale of emission allowances
under subsection (a) shall be used solely--
(1) to mitigate economic impacts on low- and middle-income
energy consumers; and
(2) to promote energy efficiency on the part of energy
consumers.
(c) Prohibition on Rebates.--No natural gas local distribution
company may use any proceeds from the sale of emission allowances under
subsection (a) to provide to any consumer a rebate that is based on the
quantity of natural gas used by the consumer.
SEC. 3504. REPORTING.
(a) In General.--Each natural gas local distribution company that
accepts emission allowances distributed under section 3502 shall, for
each calendar year for which the natural gas local distribution company
accepts emission allowances, submit to the Administrator a report
describing--
(1) the date of each sale of each emission allowance during
the preceding year;
(2) the amount of revenue generated from the sale of
emission allowances during the preceding year; and
(3) how, and to what extent, the natural gas local
distribution company used the proceeds of the sale of the
emission allowances during the preceding year.
(b) Availability of Reports.--The Administrator shall make
available to the public all reports submitted by any natural gas local
distribution company under subsection (a), including by publishing
those reports on the Internet.
Subtitle F--Bonus Allowances for Carbon Capture and Geological
Sequestration
SEC. 3601. ALLOCATION.
Not later than 3 years after the date of enactment of this Act, the
Administrator shall--
(1) establish a Bonus Allowance Account; and
(2) allocate 4 percent of the emission allowances
established for calendar years 2012 through 2030 to the Bonus
Allowance Account.
SEC. 3602. QUALIFYING PROJECTS.
(a) Definitions.--In this section:
(1) Commenced.--The term ``commenced'', with respect to
construction, means that an owner or operator has obtained the
necessary permits to undertake a continuous program of
construction and has entered into a binding contractual
obligation, with substantial financial penalties for
cancellation, to undertake such a program.
(2) Construction.--The term ``construction'' means the
fabrication, erection, or installation of the technology for
the carbon capture and sequestration project.
(b) Eligibility.--To be eligible to receive emission allowances
under this subtitle, a carbon capture and sequestration project shall--
(1) comply with such criteria and procedures as the
Administrator may establish, including a requirement, as
prescribed in subsection (c), for an annual emissions
performance standard for carbon dioxide emissions from any unit
for which allowances are allocated;
(2) sequester, in a geological formation permitted by the
Administrator for that purpose in accordance with regulations
promulgated under part C of the Safe Drinking Water Act (42
U.S.C. 300h et seq.), carbon dioxide captured from any unit for
which allowances are allocated; and
(3) have begun operation during the period beginning on
January 1, 2008, and ending on December 31, 2035.
(c) Emission Performance Standards.--Subject to subsection (d), a
carbon capture and sequestration project shall be eligible to receive
emission allowances under this subtitle only if the project achieves 1
of the following emissions performance standards for limiting carbon
dioxide emissions from the unit on an annual average basis:
(1) For an electric generation unit that is not a new
entrant, an annual emissions rate of not more than 1,200 pounds
of carbon dioxide per megawatt-hour of net electricity
generation, after subtracting the carbon dioxide that is
captured and sequestered.
(2) For a new entrant electric generation unit for which
construction of the unit commenced prior to July 1, 2018, an
annual emissions rate of not more than 800 pounds of carbon
dioxide per megawatt-hour of net electricity generation, after
subtracting the carbon dioxide that is captured and
sequestered.
(3) For a new entrant electric generation unit for which
construction of the unit commenced on or after July 1, 2018, an
annual emissions rate of not more than 350 pounds of carbon
dioxide per megawatt-hour of net electricity generation, after
subtracting the carbon dioxide that is captured and
sequestered.
(4) For any unit at a covered facility that is not an
electric generation unit, an annual emissions rate that is
achieved by the capture and sequestration of a minimum of 85
percent of the total carbon dioxide emissions produced by the
unit.
(d) Adjustment of Performance Standards.--
(1) In general.--The Corporation may adjust the emissions
performance standard for a carbon capture and sequestration
project under subsection (c) for an electric generation unit
that uses subbituminous coal, lignite, or petroleum coke in
significant amounts.
(2) Requirement.--In any case described in paragraph (1),
the performance standard for the project shall prescribe an
annual emissions rate that requires the project to achieve an
equivalent reduction from uncontrolled carbon dioxide emissions
levels from the use of subbituminous coal, lignite, or
petroleum coke, as compared to the emissions that the project
would have achieved if that unit had combusted only bituminous
coal during the particular year.
SEC. 3603. DISTRIBUTION.
(a) In General.--Subject to section 3604, for each of calendar
years 2012 through 2039, the Administrator shall distribute emission
allowances from the Bonus Allowance Account to each qualifying project
under this subtitle in a quantity equal to the product obtained by
multiplying--
(1) the bonus allowance adjustment factor, as determined
under subsection (b);
(2) the number of metric tons of carbon dioxide emissions
avoided through capture and geologic sequestration of emissions
by the project; and
(3) the bonus allowance rate for that calendar year, as
provided in the following table:
Year Bonus Allowance Rate
2012 4.5
2013 4.5
2014 4.5
2015 4.5
2016 4.5
2017 4.5
2018 4.2
2019 3.9
2020 3.6
2021 3.3
2022 3.0
2023 2.7
2024 2.4
2025 2.1
2026 1.8
2027 1.5
2028 1.3
2029 1.1
2030 0.9
2031 0.7
2032 0.5
2033 0.5
2034 0.5
2035 0.5
2036 0.5
2037 0.5
2038 0.5
2039 0.5
(b) Bonus Allowance Adjustment Ratio.--The Administrator shall
determine the bonus allowance adjustment factor by dividing a carbon
dioxide emissions rate of 350 pounds per megawatt-hour by the annual
carbon dioxide emissions rate, on a pounds per megawatt-hour basis,
that a qualifying project at the electric generation unit achieved
during a particular year, except that--
(1) the factor shall be equal to 1 in the case of a project
that qualifies under section 3602(c)(1) during the first 4
years that emissions allowances are distributed to the project;
and
(2) the factor shall not exceed 1 for any qualifying
project.
SEC. 3604. 10-YEAR LIMIT.
A qualifying project may receive annual emission allowances under
this subsection only for--
(1) the first 10 years of operation; or
(2) if the unit covered by the qualifying project began
operating before January 1, 2012, the period of calendar years
2012 through 2021.
SEC. 3605. EXHAUSTION OF BONUS ALLOWANCE ACCOUNT.
If, at the beginning of a calendar year, the Administrator
determines that the number of emission allowances remaining in the
Bonus Allowance Account will be insufficient to allow the distribution,
in that calendar year, of the number of allowances that otherwise would
be distributed under section 3603 for the calendar year, the
Administrator shall, for the calendar year--
(1) distribute the remaining bonus allowances only to
qualifying projects that were already qualifying projects
during the preceding calendar year;
(2) distribute the remaining bonus allowances to those
qualifying projects on a pro rata basis; and
(3) discontinue the program established under this subtitle
as of the date on which the Bonus Allowance Account is
projected to be fully used based on projects already in
operation.
Subtitle G--Domestic Agriculture and Forestry
SEC. 3701. ALLOCATION.
Not later than April 1, 2011, and annually thereafter through
calendar year 2049, the Administrator shall allocate to the Secretary
of Agriculture 5 percent of the Emission Allowance Account for the
following calendar year for use in--
(1) achieving real, verifiable, additional, permanent, and
enforceable reductions in greenhouse gas emissions from the
agriculture and forestry sectors of the United States economy;
and
(2) achieving real, verifiable, additional, permanent, and
enforceable increases in greenhouse gas sequestration from
those sectors.
SEC. 3702. AGRICULTURAL AND FORESTRY GREENHOUSE GAS MANAGEMENT
RESEARCH.
(a) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Agriculture, in consultation with scientific
and agricultural and forestry experts, shall prepare and submit to
Congress a report that describes the status of research on agricultural
and forestry greenhouse gas management, including a description of--
(1) research on soil carbon sequestration and other
agricultural and forestry greenhouse gas management that has
been carried out;
(2) any additional research that is necessary;
(3) the proposed priority for additional research;
(4) the most appropriate approaches for conducting the
additional research; and
(5) the extent to which and the manner in which carbon
credits that are specific to agricultural and forestry
operations, including harvested wood products and the reduction
of hazardous fuels to reduce the risk of uncharacteristically
severe wildfires, should be valued and allotted.
(b) Standardized System of Soil Carbon Measurement and
Certification for the Agricultural and Forestry Sectors.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary of Agriculture shall
establish a standardized system of carbon measurement and
certification for the agricultural and forestry sectors.
(2) Administration.--In establishing the system, the
Secretary of Agriculture shall--
(A) create a standardized system of measurements
for agricultural and forestry greenhouse gases; and
(B) delineate the most appropriate system of
certification of credit by public or private entities.
(c) Research.--After the date of submission of the report described
in paragraph (1), the President and the Secretary of Agriculture (in
collaboration with the member institutions of higher education of the
Consortium for Agricultural Soil Mitigation of Greenhouse Gases,
institutions of higher education, and research entities) shall initiate
a program to conduct any additional research that is necessary.
SEC. 3703. DISTRIBUTION.
(a) In General.--Taking into account the report prepared under
section 3702(a), the Secretary of Agriculture shall establish, by
regulation, a program under which agricultural and forestry allowances
may be distributed to entities that carry out projects on agricultural
and forest land that achieve real, verifiable, additional, permanent,
and enforceable greenhouse gas emission mitigation benefits.
(b) Nitrous Oxide and Methane.--The Secretary of Agriculture shall
ensure that, during any 5-year period, the average annual percentage of
the Emission Allowance Account that is distributed to entities under
the program established under subsection (a) specifically for achieving
real, verifiable, additional, permanent, and enforceable reductions in
nitrous oxide emissions through soil management or achieving real,
verifiable, additional, permanent, and enforceable reductions in
methane emissions through enteric fermentation and manure management
shall be 0.5 percent.
(c) Requirement.--The Administrator shall distribute emission
allowances under this section in a manner that maximizes the avoidance
or reduction of greenhouse gas emissions.
Subtitle H--International Forest Protection
SEC. 3801. FINDINGS.
Congress finds that--
(1) land-use change and forest sector emissions account for
approximately 20 percent of global greenhouse gas emissions;
(2) land conversion and deforestation are 2 of the largest
sources of greenhouse gas emissions in the developing world,
amounting to roughly 40 percent of the total greenhouse gas
emissions of the developing world;
(3) with sufficient data, deforestation rates and forest
carbon stocks can be measured with an acceptable level of
uncertainty; and
(4) encouraging reduced deforestation and other forest
carbon activities in other countries can--
(A) provide critical leverage to encourage
voluntary developing country participation in emission
limitation regimes;
(B) facilitate greater overall reductions in
greenhouse gas emissions than would otherwise be
practicable; and
(C) substantially benefit biodiversity,
conservation, and indigenous and other forest-dependent
people in developing countries.
SEC. 3802. DEFINITION OF FOREST CARBON ACTIVITIES.
In this subtitle, the term ``forest carbon activities'' means--
(1) activities directed at reducing greenhouse gas
emissions from deforestation and forest degradation in
countries other than the United States; and
(2) activities directed at increasing sequestration of
carbon through restoration of forests, and degraded land in
countries other than the United States that has not been
forested prior to restoration, afforestation, and improved
forest management, that meet the eligibility requirements
promulgated under section 3804(a).
SEC. 3803. ALLOCATION.
Not later than April 1, 2011, and annually thereafter through
calendar year 2049, the Administrator shall allocate and distribute 2.5
percent of the Emission Allowance Account for the following calendar
year for use in carrying out forest carbon activities in countries
other than the United States.
SEC. 3804. DEFINITION AND ELIGIBILITY REQUIREMENTS.
(a) Eligibility Requirements for Forest Carbon Activities.--Not
later than 2 years after the date of enactment of this Act, the
Administrator, in consultation with the Secretary of the Interior, the
Secretary of State, and the Secretary of Agriculture, shall promulgate
eligibility requirements for forest carbon activities directed at
reducing emissions from deforestation and forest degradation, and at
sequestration of carbon through restoration of forests and degraded
land, afforestation, and improved forest management in countries other
than the United States, including requirements that those activities
be--
(1) carried out and managed in accordance with widely-
accepted environmentally sustainable forestry practices; and
(2) designed--
(A) to promote native species and restoration of
native forests, where practicable; and
(B) to avoid the introduction of invasive nonnative
species.
(b) Quality Criteria for Forest Carbon Allocations.--Not later than
2 years after the date of enactment of this Act, the Administrator, in
consultation with the Secretary of the Interior, the Secretary of
State, and the Secretary of Agriculture, shall promulgate regulations
establishing the requirements for eligibility to receive allowances
under this section, including requirements that ensure that the
emission reductions or sequestrations are real, permanent, additional,
verifiable and enforceable, with reliable measuring and monitoring and
appropriate accounting for leakage.
SEC. 3805. INTERNATIONAL FOREST CARBON ACTIVITIES.
(a) In General.--The Administrator, in consultation with the
Secretary of State, shall identify and periodically update a list of
countries that have--
(1) demonstrated capacity to participate in international
forest carbon activities, including--
(A) sufficient historical data on changes in
national forest carbon stocks;
(B) technical capacity to monitor and measure
forest carbon fluxes with an acceptable level of
uncertainty; and
(C) institutional capacity to reduce emissions from
deforestation and degradation;
(2) capped greenhouse gas emissions or otherwise
established a national emission reference scenario based on
historical data; and
(3) commenced an emission reduction program for the forest
sector.
(b) Additionality.--
(1) Reduction in deforestation and forest degradation.--A
verified reduction in greenhouse gas emissions from
deforestation and forest degradation under a cap or from a
nationwide emissions reference scenario described in subsection
(a) shall be--
(A) eligible for distribution of emission
allowances under this section; and
(B) considered to satisfy the additionality
criterion.
(2) Periodic review of national level reductions in
deforestation and degradation.--The Administrator, in
consultation with the Secretary of State, shall identify and
periodically update a list of countries described in subsection
(a) that have--
(A) achieved national-level reductions of
deforestation and degradation below a historical
reference scenario, taking into consideration the
average annual deforestation and degradation rates of
the country and of all countries during a period of at
least 5 years; and
(B) demonstrated those reductions using remote
sensing technology that meets international standards.
(3) Other forest carbon activities.--A forest carbon
activity, other than a reduction in deforestation or forest
degradation, shall be eligible for distribution of emission
allowances under this section, subject to the quality criteria
for forest carbon activities identified in this Act or in
regulations promulgated under this Act.
(c) Recognition of Forest Carbon Activities.--With respect to
countries other than countries described in subsection (a), the
Administrator--
(1) shall recognize forest carbon activities, subject to
the quality criteria for forest carbon activities identified in
this Act and regulations promulgated under this Act; and
(2) is encouraged to identify other incentives, including
economic and market-based incentives, to encourage developing
countries with largely-intact native forests to protect those
forests.
SEC. 3806. REVIEWS AND DISCOUNT.
(a) Reviews.--Not later than 3 years after the date of enactment of
this Act, and 5 years thereafter, the Administrator shall conduct a
review of the program under this subtitle.
(b) Discount.--If, after the date that is 10 years after the date
of enactment of this Act, the Administrator determines that foreign
countries that, in the aggregate, generate greenhouse gas emissions
accounting for more than 0.5 percent of global greenhouse gas emissions
have not capped those emissions, established emissions reference
scenarios based on historical data, or otherwise reduced total forest
emissions, the Administrator may apply a discount to distributions of
emission allowances to those countries under this section.
Subtitle I--Transition Assistance
SEC. 3901. GENERAL ALLOCATION AND DISTRIBUTION.
(a) General Allocation.--Not later than April 1, 2011, and annually
thereafter through January 1, 2029, the Administrator shall allocate
percentages of the Emission Allowance Account for the following
calendar year as follows:
----------------------------------------------------------------------------------------------------------------
Fossil Owners and Facilities
fuel-fired operators of that HFC
electric Rural energy produce or producers
Calendar Year power electric intensive import and
generating cooperatives manufacturing petroleum- importers
facilities facilities based fuel
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2012 19 1 10 2 2
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2013 19 1 10 2 2
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2014 19 1 10 2 2
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2015 19 1 10 2 2
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2016 19 1 10 2 2
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2017 19 1 10 2 2
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2018 18 1 9 2 2
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2019 17 1 9 2 2
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2020 16 1 8 2 2
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2021 14 1 7 2 2
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2022 13 1 7 1.75 1.75
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2023 12 1 6 1.75 1.75
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2024 11 1 5 1.5 1.25
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2025 10 1 4 1 1
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2026 8 1 3 1 1
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2027 6 1 2 0.5 0.5
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2028 4 1 1 0.5 0.5
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2029 2 1 0.5 0.25 0.25
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2030 1 1 0.25 0.25 0.25
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(b) General Distribution.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall establish a system for
distributing to entities identified under subsection (a) the emission
allowances allocated under that subsection.
(c) Facilities That Shut Down.--The system established pursuant to
subsection (b) shall ensure, notwithstanding any other provision of
this subtitle, that--
(1) emission allowances are not distributed to an owner or
operator for any facility that has been permanently shut down
at the time of the distribution;
(2) the owner or operator of any facility that permanently
shuts down in a calendar year shall promptly return to the
Administrator any emission allowances that the Administrator
has distributed for that facility for any subsequent calendar
years; and
(3) that, if a facility receives a distribution of emission
allowances under this subtitle for a calendar year and
subsequently permanently shuts down during that calendar year,
the owner or operator of the facility shall promptly return to
the Administrator a number of emission allowances equal to the
number that the Administrator determines is the portion that
the owner or operator will no longer need to submit for that
facility under section 1202(a).
SEC. 3902. DISTRIBUTING EMISSION ALLOWANCES TO OWNERS AND OPERATORS OF
FOSSIL FUEL-FIRED ELECTRIC POWER GENERATING FACILITIES.
(a) New Entrants.--
(1) In general.--As part of the system established under
section 3901(b), the Administrator shall, for each calendar
year, set aside, from the quantity of emission allowances
represented by the percentages described in the table contained
in section 3901(a) for owners and operators of fossil fuel-
fired electric power generating facilities, a quantity of
emission allowances for distribution to owners and operators of
new entrant fossil fuel-fired electric power generating
facilities (including such new entrant facilities owned or
operated by rural electric cooperatives in any State that is
not a participant in the pilot program established under
section 3903(a)).
(2) Calculation of allowances.--The quantity of emission
allowances distributed by the Administrator for a calendar year
to a new entrant fossil fuel-fired electric power generating
facility under paragraph (1) shall be equal to the product
obtained by multiplying--
(A) the average greenhouse gas emission rate of all
fossil fuel-fired electric power generating facilities
that commenced operations during the 5 years preceding
the date of enactment of this Act; and
(B) the electricity generated by the facility
during the calendar year, adjusted downward on a pro
rata basis for each new facility in the event that
insufficient allowances are available under section
3901(a) for a calendar year.
(b) Incumbents.--
(1) In general.--As part of the system established under
section 3901(b), the Administrator shall, for each calendar
year, distribute to fossil fuel-fired electric power generating
facilities (including such facilities owned or operated by
rural electric cooperatives in any State that is not a
participant in the pilot program established under section
3903(a)) that were operating during the calendar year preceding
the year in which this Act was enacted the emission allowances
represented by the percentages described in the table contained
in section 3901(a) for owners and operators of fossil fuel-
fired electric power generating facilities that remain after
the distribution of emission allowances under subsection (a).
(2) Calculation of allowances.--The quantity of emission
allowances distributed to a fossil fuel-fired electric power
generating facility under paragraph (1) shall be equal to the
product obtained by multiplying--
(A) the quantity of emission allowances available
for distribution under paragraph (1); and
(B) the quotient obtained by dividing--
(i) the annual average quantity of carbon
dioxide equivalents emitted by the facility
during the 3 calendar years preceding the date
of enactment of this Act; by
(ii) the annual average of the aggregate
quantity of carbon dioxide equivalents emitted
by all fossil fuel-fired electric power
generating facilities during those 3 calendar
years.
SEC. 3903. DISTRIBUTING ADDITIONAL EMISSION ALLOWANCES TO RURAL
ELECTRIC COOPERATIVES.
(a) Establishment of Pilot Program.--
(1) In general.--As part of the system established under
section 3901(b), the Administrator shall establish a pilot
program for distributing to rural electric cooperatives in the
States described in paragraph (2), for each of calendar years
2012 through 2029, 15 percent of the total number of emission
allowances allocated for the calendar year to rural electric
cooperatives under section 3901(a).
(2) Description of states.--The States referred to in
subsection (a) are--
(A) 1 State east of the Mississippi River in which
13 rural electric cooperatives sold to consumers in
that State electricity in a quantity of 9,000,000 to
10,000,000 MWh, according to Energy Information
Administration data for calendar year 2005; and
(B) 1 State west of the Mississippi River in which
30 rural electric cooperatives sold to consumers in
that State electricity in a quantity of 3,000,000 to
4,000,000 MWh, according to Energy Information
Administration data for calendar year 2005.
(b) Distribution to Other States.--As part of the system
established under section 3901(b), the Administrator shall establish a
system for distributing to rural electric cooperatives in all States
other than the 2 States described in subsection (a)(2), for each of
calendar years 2012 through 2029, 85 percent of the total number of
emission allowances allocated for the calendar year to rural electric
cooperatives under section 3901(a), in proportion to the sales of each
rural electric cooperative, as reported by the Energy Information
Administration.
(c) Limitation.--No rural electric cooperative that receives
emission allowances under subsection (a) shall receive any emission
allowance under subsection (b), section 3902, or section 3402.
(d) Report.--Not later than January 1, 2015, and every 3 years
thereafter, the Administrator shall submit to Congress a report
describing the success of the pilot program established under
subsection (a), including a description of--
(1) the benefits realized by ratepayers of the rural
electric cooperatives that receive allowances under the pilot
program; and
(2) the use by those rural electric cooperatives of
advanced, low greenhouse gas-emitting electric generation
technologies, if any.
SEC. 3904. DISTRIBUTING EMISSION ALLOWANCES TO OWNERS AND OPERATORS OF
ENERGY INTENSIVE MANUFACTURING FACILITIES.
(a) Definitions.--In this section:
(1) Currently operating facility.--The term ``currently
operating facility'' means an eligible manufacturing facility
that had significant operations during the calendar year
preceding the calendar year for which emission allowances are
being distributed under this section.
(2) Eligible manufacturing facility.--
(A) In general.--The term ``eligible manufacturing
facility'' means a manufacturing facility located in
the United States that principally manufactures iron,
steel, aluminum, pulp, paper, cement, chemicals, or
such other products as the Administrator may determine,
by rule, are likely to be significantly disadvantaged
in competitive international markets as a result of
indirect costs of the program established under this
Act.
(B) Exclusion.--The term ``eligible manufacturing
facility'' does not include a facility eligible to
receive emission allowances under section 3902, 3903,
or 3905.
(3) Indirect carbon dioxide emissions.--The term ``indirect
carbon dioxide emissions'' means the product obtained by
multiplying (as determined by the Administrator)--
(A) the quantity of electricity consumption at an
eligible manufacturing facility; and
(B) the rate of carbon dioxide emission per
kilowatt-hour output for the region in which the
manufacturer is located.
(4) New entrant manufacturing facility.--The term ``new
entrant manufacturing facility'', with respect to a calendar
year, means an eligible manufacturing facility that began
operation during or after the calendar year for which emission
allowances are being distributed under this section.
(b) Total Allocation for Currently Operating Facilities.--As part
of the system established under section 3901(b), the Administrator
shall, for each calendar year, distribute 96 percent of the total
quantity of emission allowances available for allocation to carbon-
intensive manufacturing under section 3901(a) to currently operating
facilities.
(c) Total Allocation for Currently Operating Facilities in Each
Category of Manufacturing Facilities.--The quantity of emission
allowances distributed by the Administrator for a calendar year to
facilities in each category of currently operating facilities shall be
equal to the product obtained by multiplying--
(1) the total quantity of emission allowances available for
allocation under subsection (b); and
(2) the ratio that (during the calendar year preceding the
calendar year for which emission allowances are being
distributed under this section)--
(A) the sum of the direct and indirect carbon
dioxide emissions by currently operating facilities in
the category; bears to
(B) the sum of the direct and indirect carbon
dioxide emissions by all currently operating
facilities.
(d) Individual Allocations to Currently Operating Facilities.--The
quantity of emission allowances distributed by the Administrator for a
calendar year to a currently operating facility shall be a quantity
equal to the product obtained by multiplying--
(1) the total quantity of emission allowances available for
allocation to currently-operating facilities in the appropriate
category, as determined under subsection (c); and
(2) the ratio that (during the 3 calendar years preceding
the year for which the allocation rule is promulgated for the
allocation period)--
(A) the average number of production employees
employed at the facility; bears to
(B) the average number of production employees
employed at all existing eligible manufacturing
facilities in the appropriate category.
(e) New Entrant Manufacturing Facilities.--
(1) In general.--As part of the system established under
section 3901(b), the Administrator shall, for each calendar
year, distribute 4 percent of the total quantity of emission
allowances available for allocation to carbon intensive
manufacturing under section 3901(a) to new entrant
manufacturing facilities.
(2) Individual allocations.--The quantity of emission
allowances distributed by the Administrator for a calendar year
to a new entrant manufacturing facility shall be proportional
to the product obtained by multiplying--
(A) the average number of production employees
employed at the new entrant manufacturing facility
during the prior calendar year; and
(B) the rate (in emission allowances per production
employee) at which emission allowances were allocated
to currently operating facilities in the appropriate
category for the calendar year, as determined under
subsection (d).
SEC. 3905. DISTRIBUTING EMISSION ALLOWANCES TO OWNERS AND OPERATORS OF
FACILITIES AND OTHER ENTITIES THAT PRODUCE OR IMPORT
PETROLEUM-BASED FUEL.
(a) In General.--As part of the system established under section
3901(b), the Administrator shall, for each calendar year, distribute to
facilities or entities that produce or import petroleum-based fuel the
emission allowances represented by the percentages described in the
table contained in section 3901(a) for owners and operators of
facilities or entities that produce or import petroleum-based fuel.
(b) Calculation of Allowances.--The quantity of emission allowances
distributed to a facility or entity under subsection (a) shall be equal
to the product obtained by multiplying--
(1) the quantity of emission allowances available for
distribution under subsection (a); and
(2) the quotient obtained by dividing--
(A) the annual average of the aggregate quantity of
the petroleum-based products produced or imported by
that facility or entity during the 3 calendar years
preceding the distribution of allowances; by
(B) the annual average of the aggregate quantity of
petroleum-based products produced or imported by
covered facilities and entities that produced or
imported petroleum-based fuel during those preceding 3
calendar years.
SEC. 3906. DISTRIBUTING EMISSION ALLOWANCES TO HYDROFLUOROCARBON
PRODUCERS AND IMPORTERS.
(a) In General.--The emission allowances allocated to
hydrofluorocarbon producers and hydrofluorocarbon importers under
section 3901(a) shall be distributed to the individual
hydrofluorocarbon producers and hydrofluorocarbon importers in
accordance with section 10005.
(b) Effect.--The distributions under subsection (a) shall not, in
any way, limit or otherwise alter the prohibitions set forth in
subsection 10007(b).
Subtitle J--Reducing Methane Emissions From Landfills and Coal Mines
SEC. 3907. ALLOCATION.
Not later than April 1, 2011, and annually thereafter through 2049,
the Administrator shall allocate 1 percent of the Emission Allowance
Account for the following calendar year to a program for achieving
real, verifiable, additional, permanent, and enforceable reductions in
emissions of methane from landfills and coal mines.
SEC. 3908. DISTRIBUTION.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Administrator shall establish a program that includes
a system for distributing to individual entities the emission
allowances allocated under section 3907.
(b) Requirement.--The Administrator shall distribute emission
allowances under subsection (a) in a manner that maximizes the
avoidance or reduction of greenhouse gas emissions.
TITLE IV--AUCTIONS AND USES OF AUCTION PROCEEDS
Subtitle A--Funds
SEC. 4101. ESTABLISHMENT.
There are established in the Treasury of the United States the
following funds:
(1) The Energy Assistance Fund.
(2) The Climate Change Worker Training Fund.
(3) The Adaptation Fund.
(4) The Climate Change and National Security Fund.
(5) The Bureau of Land Management Emergency Firefighting
Fund.
(6) The Forest Service Emergency Firefighting Fund.
(7) The Climate Security Act Management Fund.
SEC. 4102. AMOUNTS IN FUNDS.
Each Fund established by section 4101 shall consist of such amounts
as are deposited into the respective Fund under subtitle C.
Subtitle B--Climate Change Credit Corporation
SEC. 4201. ESTABLISHMENT.
(a) In General.--There is established, as a nonprofit corporation
without stock, a corporation to be known as the ``Climate Change Credit
Corporation''.
(b) Treatment.--The Corporation shall not be considered to be an
agency or establishment of the Federal Government.
SEC. 4202. APPLICABLE LAWS.
The Corporation shall be subject to this title and, to the extent
consistent with this title, the District of Columbia Business
Corporation Act (D.C. Code section 29-301 et seq.).
SEC. 4203. BOARD OF DIRECTORS.
(a) In General.--The Corporation shall have a board of directors
composed of 5 individuals who are citizens of the United States, of
whom 1 shall be elected annually by the board to serve as Chairperson.
(b) Political Affiliation.--Not more than 3 members of the board
serving at any time may be affiliated with the same political party.
(c) Appointment and Term.--A member of the board shall be appointed
by the President, by and with the advice and consent of the Senate, for
a term of 5 years.
(d) Quorum.--Three members of the board shall constitute a quorum
for a meeting of the board of directors.
(e) Prohibitions.--
(1) Conflicts of interest.--An individual employed by, or
holding any official relationship (including any shareholder)
with, any entity engaged in the generation, transmission,
distribution, or sale of energy, an individual who has any
pecuniary interest in the generation, transmission,
distribution, or sale of energy, or an individual who has a
pecuniary interest in the implementation of this Act, shall not
be appointed to the Corporation under this subtitle.
(2) No other employment.--A member of the Corporation shall
not hold any other employment during the term of service of the
member.
(f) Vacancies.--
(1) In general.--A vacancy on the Corporation--
(A) shall not affect the powers of the Corporation;
and
(B) shall be filled in the same manner as the
original appointment was made.
(2) Service until new appointment.--A member of the
Corporation the term of whom has expired or otherwise been
terminated shall continue to serve until the date on which a
replacement is appointed if the President determines that
service to be appropriate.
(g) Removal.--
(1) In general.--A member may be removed from the
Corporation on determination of the President for cause.
(2) Notification.--Not later than 30 days before removing a
member from the Corporation for cause under paragraph (1), the
President shall provide to Congress an advance notification of
the determination by the President to remove the member.
SEC. 4204. REVIEW AND AUDIT BY COMPTROLLER GENERAL.
Not later than January 1, 2013, and annually thereafter, the
Comptroller General of the United States shall conduct a review and
audit of each expenditure made pursuant to this title to determine the
efficacy of the programs, expenditures, and projects funded under this
title.
Subtitle C--Auctions
SEC. 4301. EARLY AUCTIONS.
(a) Initiation of Auctioning.--Not later than 1 year after the date
of enactment of this Act, the Corporation shall begin auctioning the
emission allowances allocated to the Corporation under section 3101.
(b) Completion of Auctioning.--Not later than December 31, 2010,
the Corporation shall complete auctioning of all allowances allocated
to the Corporation under section 3101.
(c) Proceeds From Early Auctioning.--The Corporation shall use to
carry out programs established under subtitle D all proceeds of early
auctioning conducted by the Corporation under this section.
SEC. 4302. ANNUAL AUCTIONS.
(a) In General.--Not later than 330 days before the beginning of a
calendar year identified in the table contained in section 3102, the
Corporation shall auction all of the allowances allocated to the
Corporation for that year by the Administrator under section 3102.
(b) Proceeds From Annual Auctioning.--
(1) Bureau of land management emergency firefighting
fund.--For each of calendar years 2012 through 2050, the
Corporation shall deposit into the Bureau of Land Management
Emergency Firefighting Fund established by section 4101(5)
proceeds, from annual auctions that the Corporation conducts
for the calendar year under this section, that are sufficient
to ensure that the amount in the Fund equals $300,000,000.
(2) Forest service emergency firefighting fund.--For each
of calendar years 2012 through 2050, the Corporation shall
deposit into the Forest Service Emergency Firefighting Fund
established by section 4101(6) proceeds, from annual auctions
that the Corporation conducts for the calendar year under this
section, that are sufficient to ensure that the amount in the
Fund equals $800,000,000.
(3) Climate security act management fund.--
(A) In general.--For each of calendar years 2012
through 2050, the Corporation shall deposit into the
Climate Security Act Management Fund established by
section 4101(7) such percentage of the proceeds of the
annual auctions conducted by the Corporation for the
calendar year under this section as the Administrator
determines to be sufficient to efficiently and
effectively administer this Act.
(B) Distribution.--The Administrator may distribute
funds from the Climate Security Act Management Fund to
the Secretary of Agriculture, the Secretary of Labor,
and the Carbon Market Efficiency Board, as the
Administrator determines to be necessary to assist in
carrying out this Act.
(C) Use of funds.--The head of a Federal agency or
department may use funds from the Climate Security Act
Management Fund for the costs to the agency or
department of carrying out this Act, including the
costs of--
(i) promulgation of regulations;
(ii) development of policy guidance;
(iii) development and operation of
information systems;
(iv) certification of monitoring equipment;
(v) conducting facilities audits and
inspections;
(vi) monitoring and modeling;
(vii) quality assurance and verification
functions;
(viii) enforcement;
(ix) administration;
(x) outreach;
(xi) training;
(xii) field audits; and
(xiii) financial management.
(D) Treatment.--Amounts in the Climate Security Act
Management Fund--
(i) shall be used only to advance the
purposes described in section 3;
(ii) are subject to the availability of
appropriations; and
(iii) shall remain available until
expended.
(4) Use of remaining proceeds.--
(A) In general.--For each of calendar years 2012
through 2050, the Corporation shall use the proceeds of
the annual auctions conducted by the Corporation for
the calendar year under this section in accordance with
this paragraph.
(B) Energy technology deployment.--For each of
calendar years 2012 through 2050, the Corporation shall
use to carry out the programs established under
subtitle D 52 percent of the proceeds of the annual
auctions conducted by the Corporation for the calendar
year under this section.
(C) Energy independence acceleration fund.--In any
of calendar years 2012 through 2050 during which there
exists in the Treasury of the United States an energy
transformation acceleration fund administered by the
Director of the Advanced Research Projects Agency
within the Department of Energy, of the proceeds of the
annual auctions conducted by the Corporation for the
calendar year under this section, the Corporation shall
deposit 2 percent of the proceeds into that fund.
(D) Energy consumers.--For each of calendar years
2012 through 2050, the Corporation shall deposit into
the Energy Assistance Fund established by section
4101(1) 18 percent of the proceeds of the annual
auctions conducted by the Corporation for the calendar
year under this section.
(E) Climate change worker training program.--For
each of calendar years 2012 through 2050, the
Corporation shall deposit into the Climate Change
Worker Training Fund established by section 4101(2) 5
percent of the proceeds of the annual auctions
conducted by the Corporation for the calendar year
under this section.
(F) Adaptation program for natural resources in
united states and territories.--For each of calendar
years 2012 through 2050, the Corporation shall deposit
into the Adaptation Fund established by section 4101(3)
18 percent of the proceeds of the annual auctions
conducted by the Corporation for the calendar year
under this section.
(G) Climate change and national security program.--
For each of calendar years 2012 through 2050, the
Corporation shall deposit into the Climate Change and
National Security Fund established by section 4101(4) 5
percent of the proceeds of the annual auctions
conducted by the Corporation for the calendar year
under this section.
Subtitle D--Energy Technology Deployment
SEC. 4401. GENERAL ALLOCATIONS.
For each calendar year, the Corporation shall use the amounts
described in sections 4301(c) and 4302(b)(4)(B) to carry out the
programs established under this subtitle, as follows:
(1) 32 percent of the funds shall be used to carry out the
zero- or low-carbon energy technologies program under section
4402.
(2) 25 percent shall be used to carry out the advanced coal
and sequestration technologies program under section 4403.
(3) 6 percent shall be used to carry out the fuel from
cellulosic biomass program under section 4404.
(4) 12 percent shall be used to carry out the advanced
technology vehicles manufacturing incentive program under
section 4405.
(5) 25 percent shall be used to carry out the sustainable
energy program under section 4406.
SEC. 4402. ZERO- OR LOW-CARBON ENERGY TECHNOLOGIES DEPLOYMENT.
(a) Definitions.--In this section:
(1) Energy savings.--The term ``energy savings'' means
megawatt-hours of electricity or million British thermal units
of natural gas saved by a product, in comparison to projected
energy consumption under an energy-efficiency standard
applicable to the product.
(2) Engineering integration costs.--The term ``engineering
integration costs'' includes the costs of engineering tasks
relating to--
(A) redesigning manufacturing processes to begin
producing qualifying components and zero- or low-carbon
generation technologies;
(B) designing new tooling and equipment for
production facilities that produce qualifying
components and zero- or low-carbon generation
technologies; and
(C) establishing or expanding manufacturing
operations for qualifying components and zero- or low-
carbon generation technologies.
(3) High-efficiency consumer product.--The term ``high-
efficiency consumer product'' means a covered product to which
an energy conservation standard applies under section 325 of
the Energy Policy and Conservation Act (42 U.S.C. 6295), if the
energy efficiency of the product exceeds the energy efficiency
required under the standard.
(4) Qualifying component.--The term ``qualifying
component'' means a component that the Secretary of Energy
determines to be specially designed for zero- or low-carbon
generation technology.
(5) Zero- or low-carbon generation.--The term ``zero- or
low-carbon generation'' means generation of electricity by an
electric generation unit that--
(A) emits no carbon dioxide into the atmosphere, or
is fossil-fuel fired and emits into the atmosphere not
more than 250 pounds of carbon dioxide per megawatt-
hour (after adjustment for any carbon dioxide from the
unit that is geologically sequestered); and
(B) was placed into commercial service after the
date of enactment of this Act.
(6) Zero- or low-carbon generation technology.--The term
``zero- or low-carbon generation technology'' means a
technology used to create zero- or low-carbon generation.
(b) Financial Incentives Program.--During each fiscal year
beginning on or after October 1, 2008, the Corporation shall
competitively award financial incentives under this subsection in the
technology categories of--
(1) the production of electricity from new zero- or low-
carbon generation;
(2) the manufacture of high-efficiency consumer products;
and
(3) facility establishment or conversion by manufacturers
and component suppliers of zero- or low-carbon technology.
(c) Requirements.--
(1) In general.--The Corporation shall make awards under
this section to domestic producers of new zero- or low-carbon
generation, domestic manufacturers of high-efficiency consumer
products, and domestic facilities and operations of
manufacturers and component suppliers of zero- or low-carbon
generation technology--
(A) in the case of producers of new zero- or low-
carbon generation, based on the bid of each producer in
terms of dollars per megawatt-hour of electricity
generated;
(B) in the case of manufacturers of qualifying
high-efficiency consumer products, based on the bid of
each manufacturer in terms of dollars per megawatt-hour
or million British thermal units saved; and
(C) in the case of qualifying manufacturers of
zero- or low-carbon generation technology, based on the
criteria noted in subsection (e).
(2) Acceptance of bids.--
(A) In general.--In making awards under
subparagraphs (A) and (B) of paragraph (1), the
Corporation shall--
(i) solicit bids for reverse auction from
appropriate producers and manufacturers, as
determined by the Corporation; and
(ii) award financial incentives to the
producers and manufacturers that submit the
lowest bids that meet the requirements
established by the Corporation.
(B) Factors for conversion.--
(i) In general.--For the purpose of
assessing bids under subparagraph (A), the
Corporation shall specify a factor for
converting megawatt-hours of electricity and
million British thermal units of natural gas to
common units.
(ii) Requirement.--The conversion factor
shall be based on the relative greenhouse gas
emission benefits of electricity and natural
gas conservation.
(d) Forms of Awards.--
(1) Zero- and low-carbon generators.--An award for zero- or
low-carbon generation under this subsection shall be in the
form of a contract to provide a production payment for each
year during the first 10 years of commercial service of the
generation unit in an amount equal to the product obtained by
multiplying--
(A) the amount bid by the producer of the zero- or
low-carbon generation; and
(B) the megawatt-hours estimated to be generated by
the zero- or low-carbon generation unit each year.
(2) High-efficiency consumer products.--An award for a
high-efficiency consumer product under this subsection shall be
in the form of a lump sum payment in an amount equal to the
product obtained by multiplying--
(A) the amount bid by the manufacturer of the high-
efficiency consumer product; and
(B) the energy savings during the projected useful
life of the high-efficiency consumer product, not to
exceed 10 years, as determined by the Corporation.
(3) Manufacturing of zero- or low-carbon generation
technology.--
(A) In general.--An award for facility
establishment or conversion costs for zero- or low-
carbon generation technology shall be in an amount
equal to not more than 30 percent of the cost of--
(i) establishing, reequipping, or expanding
a manufacturing facility to produce--
(I) qualifying zero- or low-carbon
generation technology; or
(II) qualifying components;
(ii) engineering integration costs of zero-
or low-carbon generation technology and
qualifying components; and
(iii) property, machine tools, and other
equipment acquired or constructed primarily to
enable the recipient to test equipment
necessary for the construction or operation of
a zero- or low-carbon generation facility.
(B) Minimum amount.--The Corporation shall use not
less than \1/4\ of the amounts made available to carry
out this section to make awards to entities for the
manufacturing of zero- or low-carbon generation
technology.
(e) Selection Criteria.--In making awards under this section to
qualifying manufacturers of zero- or low-carbon generation technology
and qualifying components, the Corporation shall select manufacturers
that--
(1) document the greatest use of domestically sourced parts
and components;
(2) return to productive service existing idle
manufacturing capacity;
(3) are located in States with the greatest availability of
unemployed manufacturing workers;
(4) compensate workers at a minimum amount equal to at
least 100 percent of the State average manufacturing wage, plus
health insurance benefits;
(5) demonstrate a high probability of commercial success;
and
(6) achieve other criteria, as the Corporation determines
to be appropriate.
SEC. 4403. ADVANCED COAL AND SEQUESTRATION TECHNOLOGIES PROGRAM.
(a) Advanced Coal Technologies.--
(1) Definitions.--In this section:
(A) Advanced coal generation technology.--Except as
provided in paragraph (2), the term ``advanced coal
generation technology'' means an advanced coal-fueled
power plant technology that meets 1 of the following
performance standards for limiting carbon dioxide
emissions from an electric generation unit on an annual
average basis, as determined by the Corporation:
(i) For an electric generation unit that is
not a new entrant, an annual emissions rate of
not more than 1,200 pounds of carbon dioxide
per megawatt-hour of net electricity
generation, after subtracting the carbon
dioxide that is captured and sequestered.
(ii) For any project for which construction
of the unit commenced before July 1, 2018, an
annual emissions rate of not more than 800
pounds of carbon dioxide per megawatt-hour of
net electricity generation, after subtracting
the carbon dioxide that is captured and
sequestered.
(iii) For any project for which
construction of the unit commenced on or after
July 1, 2018, an annual emissions rate of not
more than 350 pounds of carbon dioxide per
megawatt-hour of net electricity generation,
after subtracting the carbon dioxide that is
captured and sequestered.
(B) Commenced.--The term ``commenced'', with
respect to construction, means that an owner or
operator has--
(i) obtained the necessary permits to carry
out a continuous program of construction; and
(ii) entered into a binding contractual
obligation, with substantial financial
penalties for cancellation, to undertake such a
program.
(C) Construction.--The term ``construction'', with
respect to a carbon capture and sequestration project,
means the fabrication, erection, or installation of
technology for the project.
(2) Adjustment of performance standards.--
(A) In general.--The Corporation may adjust the
emissions performance standards for a carbon capture
and sequestration project under paragraph (1)(A) for an
electric generation unit that uses subbituminous coal,
lignite, or petroleum coke in significant amounts.
(B) Requirement.--If the Corporation adjusts a
standard under subparagraph (A), the adjusted
performance standard for the applicable project shall
prescribe an annual emissions rate that requires the
project to achieve an equivalent reduction from
uncontrolled carbon dioxide emissions levels from the
use of subbituminous coal, lignite, or petroleum coke,
as compared to the emissions the project would have
achieved if that unit had combusted only bituminous
coal during the particular calendar year.
(3) Demonstration projects.--
(A) In general.--The Corporation shall use not less
than \1/4\ of the amounts made available to carry out
this section for each fiscal year to support
demonstration projects using advanced coal generation
technology, including retrofit technology that could be
deployed on existing coal generation facilities.
(B) Certain projects.--Of the amounts described in
subparagraph (A), the Corporation shall make available
up to 25 percent for projects that meet the carbon
dioxide emissions performance standard under clause (i)
of paragraph (1)(A).
(4) Deployment incentives.--
(A) In general.--The Corporation shall use not less
than \1/4\ of the amounts made available to carry out
this section for each fiscal year to provide financial
incentives to facilitate the deployment of not more
than 20 gigawatts of advanced coal generation
technologies.
(B) Administration.--In providing incentives under
this paragraph, the Corporation shall--
(i) provide appropriate incentives for
regulated investor-owned utilities, municipal
utilities, electric cooperatives, and
independent power producers, as determined by
the Secretary of Energy; and
(ii) ensure that a range of the domestic
coal types is employed in the facilities that
receive incentives under this paragraph.
(C) Funding requirements.--
(i) Sequestration activities.--The
Corporation shall provide incentives only to
projects that meet 1 of the emission
performance standards for limiting carbon
dioxide under clause (ii) or (iii) of paragraph
(1)(A).
(ii) Projects using certain coals.--In
providing incentives under this paragraph, the
Corporation shall set aside not less than 25
percent of any amounts made available to carry
out this subsection for projects using coal
with an energy content of not more than 10,000
British thermal units per pound.
(5) Storage agreement required.--The Corporation shall
require a binding storage agreement for the carbon dioxide
captured in a project under this subsection in a geological
storage project permitted by the Administrator under
regulations promulgated pursuant to section 1421(d) of the Safe
Drinking Water Act (42 U.S.C. 300h(d)).
(6) Distribution of funds.--
(A) Requirement.--The Corporation shall make awards
under this section in a manner that maximizes the
avoidance or reduction of greenhouse gas emissions.
(B) Incentives.--A project that receives an award
under this subsection may elect 1 of the following
financial incentives:
(i) A loan guarantee.
(ii) A cost-sharing grant to cover the
incremental cost of installing and operating
carbon capture and storage equipment (for which
utilization costs may be covered for the first
10 years of operation).
(iii) Production payments of not more than
1.5 cents per kilowatt-hour of electric output
during the first 10 years of commercial service
of the project.
(7) Limitation.--A project may not receive an award under
this subsection if the project receives an award under section
4402.
(b) Sequestration.--
(1) In general.--The Corporation shall use not less than
\1/2\ of the amounts made available to carry out this section
for each fiscal year for large-scale geological carbon storage
demonstration projects that store carbon dioxide captured from
electric generation units using coal gasification or other
advanced coal combustion processes, including units that
receive assistance under subsection (a).
(2) Project capital and operating costs.--
(A) In general.--The Corporation shall provide
assistance under this subsection to reimburse the
project owner for a percentage of the incremental
project capital and operating costs of the project that
are attributable to carbon capture and sequestration,
as the Secretary determines to be appropriate.
(B) Certain projects.--Of the assistance provided
under subparagraph (A), the Corporation shall make
available up to 25 percent for projects that meet the
carbon dioxide emissions performance standard under
subsection (a)(1)(A)(i).
SEC. 4404. FUEL FROM CELLULOSIC BIOMASS.
(a) In General.--The Corporation shall provide deployment
incentives under this section to encourage a variety of projects to
domestically produce transportation fuels from cellulosic biomass,
relying on different feedstocks in different regions of the United
States.
(b) Project Eligibility.--Incentives under this section shall be
provided on a competitive basis to projects that domestically produce
fuels that--
(1) meet United States fuel and emission specifications;
(2) help diversify domestic transportation energy supplies;
and
(3) improve or maintain air, water, soil, and habitat
quality, and protect scarce water supplies.
(c) Incentives.--Incentives under this section may consist of--
(1) loan guarantees for the construction of production
facilities and supporting infrastructure; or
(2) production payments through a reverse auction in
accordance with subsection (d).
(d) Reverse Auction.--
(1) In general.--In providing incentives under this
section, the Corporation shall--
(A) prescribe rules under which producers of fuel
from cellulosic biomass may bid for production payments
under subsection (c)(2); and
(B) solicit bids from producers of different
classes of transportation fuel, as the Corporation
determines to be appropriate.
(2) Requirement.--The rules under section 4402 shall
require that incentives shall be provided to the producers that
submit the lowest bid (in terms of cents per gallon gasoline
equivalent) for each class of transportation fuel from which
the Corporation solicits a bid.
SEC. 4405. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE
PROGRAM.
(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means an electric vehicle, a fuel cell-
powered vehicle, a hybrid or plug-in hybrid electric vehicle,
or an advanced diesel light duty motor vehicle, that meets--
(A) the Tier II Bin 5 emission standard established
in rules prescribed by the Administrator under section
202(i) of the Clean Air Act (42 U.S.C. 7521(i)), or a
lower-numbered Bin emission standard;
(B) any new emission standard for fine particulate
matter prescribed by the Administrator under that Act;
and
(C) standard of at least 125 percent of the average
base year combined fuel economy, calculated on an
energy-equivalent basis for vehicles other than
advanced diesel light-duty motor vehicles, for vehicles
of a substantially similar nature and footprint.
(2) Combined fuel economy.--The term ``combined fuel
economy'' means--
(A) the combined city-highway miles per gallon
values, as reported in accordance with section 32908 of
title 49, United States Code; and
(B) in the case of an electric drive vehicle with
the ability to recharge from an off-board source, the
reported mileage, as determined in a manner consistent
with the Society of Automotive Engineers recommended
practice for that configuration, or a similar practice
recommended by the Secretary of Energy, using a
petroleum equivalence factor for the off-board
electricity (as defined by the Secretary of Energy).
(3) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
performed in the United States relating to--
(A) incorporating qualifying components into the
design of advanced technology vehicles; and
(B) designing new tooling and equipment for
production facilities that produce in the United States
qualifying components or advanced technology vehicles.
(4) Qualifying component.--The term ``qualifying
component'' means a component that the Secretary of Energy
determines to be--
(A) specially designed for advanced technology
vehicles;
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles as specified in subparagraphs (A), (B), and
(C) of paragraph (1); and
(C) manufactured in the United States.
(b) Manufacturer Facility Conversion Awards.--The Corporation shall
provide facility conversion funding awards under this subsection to
automobile manufacturers and component suppliers to pay up to 30
percent of the cost of--
(1) reequipping or expanding an existing manufacturing
facility to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration of qualifying vehicles and
qualifying components.
(c) Period of Availability.--An award under subsection (b) shall
apply to--
(1) facilities and equipment placed in service after the
date of enactment of this Act and before January 1, 2030; and
(2) engineering integration costs incurred after the date
of enactment of this Act.
(d) Additional Limitations.--
(1) Maximum amount.--The maximum amount of all awards under
this section shall not exceed $40,000,000,000.
(2) CAFE requirements.--The Corporation shall not make an
award under this section to an automobile manufacturer or
component supplier that, directly or through a parent,
subsidiary, or affiliated entity, is not in compliance with
each corporate average fuel economy standard under section
32902 of title 49, United States Code, in effect on the date of
the award.
(e) Additional Requirements.--
(1) Definition of recipient.--In this subsection, the term
``recipient'' means the automobile manufacturer or component
supplier (including any parent, subsidiary, and affiliated
entities) that receives an award under this section.
(2) Certification.--To be eligible for an award under this
section, an automobile manufacturer or component supplier
(including any parent, subsidiary, and affiliated entities)
shall certify to the Corporation that, for each of the 7
calendar years following the receipt of the award, the
manufacturer or supplier will maintain in the United States a
number of full-time or full-time-equivalent employees--
(A) equal to 90 percent of the monthly average
number of full-time or full-time-equivalent employees
maintained by the manufacturer or supplier for the 12-
month period ending on the date of receipt of the
award;
(B) sufficient to ensure that the proportion that
the workforce of the manufacturer or supplier in the
United States bears to the global workforce of the
manufacturer or supplier is equal to or greater than
the average monthly proportion that the workforce of
the manufacturer or supplier in the United States bears
to the global workforce of the manufacturer or supplier
for the 12-month period ending on the date of receipt
of the award; or
(C) sufficient to ensure that any percentage
decrease in the hourly workforce of the manufacturer or
supplier in the United States is not greater than
aggregate of the percentage decrease in the market
share of the manufacturer or supplier in the United
States and the increase in the productivity of the
manufacturer or supplier, calculated during the period
beginning on the date of receipt of the award and
ending on the date of certification under this
subparagraph.
(3) Recertification.--Not later than 1 year after the date
of receipt of an award under this section, and annually
thereafter, a manufacturer or supplier shall--
(A) recertify to the Corporation that, during the
preceding calendar year, the manufacturer or supplier
has achieved compliance with the requirement described
in paragraph (2); and
(B) provide to the Corporation sufficient data for
verification of the recertification.
(4) Repayment.--A manufacturer or supplier that fails to
make the recertification required by paragraph (3) shall pay to
the Corporation an amount equal to the difference between--
(A) the amount of the original award to the
manufacturer or supplier; and
(B) the product obtained by multiplying--
(i) an amount equal to \1/7\ of that
original amount; and
(ii) the number of years during which the
manufacturer or supplier--
(I) received an award under this
section; and
(II) made the certification
required by paragraph (3).
SEC. 4406. SUSTAINABLE ENERGY PROGRAM.
(a) Definition of Sustainable Energy Technology.--In this section,
the term ``sustainable energy technology'' means a technology to
harness a renewable energy source (as defined in section 609(a) of the
Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 918c(a)),
including in distributed energy systems.
(b) Demonstration Projects.--The Corporation shall use not less
than 25 percent of the amounts made available to carry out this section
for each fiscal year to support demonstration projects in the United
States using sustainable energy technology, including in distributed
energy systems.
(c) Deployment Incentives.--
(1) In general.--The Corporation shall use not less than 25
percent of the amounts made available to carry out this section
for each fiscal year to provide Federal financial incentives to
facilitate the deployment in the United States of sustainable
energy technology, including in distributed energy systems.
(2) Administration.--In providing incentives under this
subsection, the Corporation shall provide appropriate
incentives for regulated investor-owned utilities, municipal
utilities, electric cooperatives, independent power producers,
and consumers, as determined by the Secretary of Energy.
(d) Distribution of Funds.--A project that receives an award under
this subsection may elect 1 of the following Federal financial
incentives:
(1) A loan guarantee.
(2) A cost-sharing grant to cover the incremental cost of
installing and operating equipment (for which utilization costs
may be covered for the first 10 years of operation).
(3) Production payments of not more than 1.5 cents per
kilowatt-hour of electric output during the first 10 years of
commercial service of the project.
(e) Limitation.--A project may not receive an award under this
subsection if the project receives an award under section 4402.
Subtitle E--Energy Consumers
SEC. 4501. PROPORTIONS OF FUNDING AVAILABILITY.
All funds deposited into the Energy Assistance Fund established by
section 4101(1) shall be made available, without further appropriation
or fiscal year limitation, to the following programs in the following
proportions:
(1) 50 percent of the funds to the low-income home energy
assistance program established under the Low Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621 et seq.).
(2) 25 percent of the funds to the Weatherization
Assistance Program for Low-Income Persons established under
part A of title IV of the Energy Conservation and Production
Act (42 U.S.C. 6861 et seq.).
(3) 25 percent of the funds to the rural energy assistance
program described in section 4502.
SEC. 4502. RURAL ENERGY ASSISTANCE PROGRAM.
The Secretary of Energy shall carry out a program to use the funds
made available under section 4501(3) to provide financial assistance to
promote the availability of reasonably-priced distributed electricity
in off-grid rural regions in which electricity prices exceed 150
percent of the national average, as determined by the Secretary of
Energy.
Subtitle F--Climate Change Worker Training Program
SEC. 4601. FUNDING.
All funds deposited into the Climate Change Worker Training Fund
established by section 4101(2) shall be made available, without further
appropriation or fiscal year limitation, to carry out the programs
established under this subtitle.
SEC. 4602. PURPOSES.
The purposes of this subtitle are--
(1) to create a sustainable, comprehensive public program
that provides quality training that is linked to jobs that are
created through low-carbon energy, sustainable energy, and
energy efficiency initiatives;
(2) to satisfy industry demand for a skilled workforce,
support economic growth, boost the global competitiveness of
the United States in expanding low-carbon energy, sustainable
energy, and energy efficiency industries, and provide economic
self-sufficiency and family-sustaining jobs for United States
workers, including low-wage workers, through quality training
and placement in job opportunities in those industries; and
(3) to provide funds for Federal and State industry-wide
research, labor market information and labor exchange programs,
and the development of Federal- and State-administered training
programs.
SEC. 4603. ESTABLISHMENT.
Not later than 180 days after the date of enactment of this Act,
the Secretary of Labor (referred to in this subtitle as the
``Secretary''), in consultation with the Administrator and the
Secretary of Energy, shall establish a climate change worker training
program that achieves the purposes of this subtitle.
SEC. 4604. ACTIVITIES.
(a) National Research Program.--Under the program established under
section 4603, the Secretary, acting through the Bureau of Labor
Statistics, shall provide assistance to support national research to
develop labor market data and to track future workforce trends
resulting from energy-related initiatives carried out under this
section, including--
(1) linking research and development in low-carbon energy,
sustainable energy, and energy efficiency technology with the
development of standards and curricula for current and future
jobs;
(2) the tracking and documentation of academic and
occupational competencies and future skill needs with respect
to low-carbon energy, sustainable energy, and energy efficiency
technology;
(3) tracking and documentation of occupational information
and workforce training data with respect to low-carbon energy,
sustainable energy, and energy efficiency technology;
(4) assessing new employment and work practices, including
career ladder and upgrade training and high-performance work
systems; and
(5) collaborating with State agencies, industry, organized
labor, and community and nonprofit organizations to disseminate
successful innovations for labor market services and worker
training with respect to low-carbon energy, sustainable energy,
and energy efficiency technology.
(b) National Energy Training Partnership Grants.--
(1) Grants.--
(A) In general.--Under the program established
under section 4603, the Secretary shall award national
energy training partnerships grants on a competitive
basis to eligible entities to enable the entities--
(i) to carry out national training that
leads to economic self-sufficiency; and
(ii) to develop a low-carbon energy,
sustainable energy, and energy efficiency
industries workforce.
(B) Diversity.--Grants shall be awarded under this
paragraph so as to ensure geographic diversity, with--
(i) at least 2 grants awarded to entities
located in each of the 4 Petroleum
Administration for Defense Districts with no
subdistricts; and
(ii) at least 1 grant awarded to an entity
located in each of the subdistricts of the
Petroleum Administration for Defense District
with subdistricts.
(2) Eligibility.--To be eligible to receive a grant under
paragraph (1), an entity shall be a nonprofit partnership
that--
(A) includes the equal participation of industry,
including public or private employers, and labor
organizations, including joint labor-management
training programs, and may include community-based
organizations, educational institutions, small
businesses, cooperatives, State and local veterans
agencies, and veterans service organizations; and
(B) demonstrates--
(i) experience in implementing and
operating worker skills training and education
programs;
(ii) the ability to identify and involve in
training programs carried out using the grant,
target populations of workers that are or will
be engaged in activities relating to low-carbon
energy, sustainable energy, and energy
efficiency industries; and
(iii) the ability to help workers achieve
economic self-sufficiency.
(3) Activities.--Activities to be carried out using a grant
provided under this subsection may include--
(A) the provision of occupational skills training,
including curriculum development, on-the-job training,
and classroom training;
(B) the provision of safety and health training;
(C) the provision of basic skills, literacy,
general equivalency degree, English as a second
language, and job readiness training;
(D) individual referral and tuition assistance for
a community college training program;
(E) the provision of customized training in
conjunction with an existing registered apprenticeship
program or labor-management partnership;
(F) the provision of career ladder and upgrade
training; and
(G) the implementation of transitional jobs
strategies.
(c) State Labor Market Research, Information, and Labor Exchange
Research Program.--
(1) In general.--Under the program established under
section 4603, the Secretary shall award competitive grants to
States to enable the States to administer labor market and
labor exchange informational programs that include the
implementation of the activities described in paragraph (2).
(2) Activities.--A State shall use amounts awarded under
this subsection to provide funding to the State agency that
administers the Wagner-Peyser Act (29 U.S.C. 49 et seq.) and
State unemployment compensation programs to carry out the
following activities using State agency merit staff:
(A) The identification of job openings in the low-
carbon energy, sustainable energy, and energy
efficiency sector.
(B) The administration of skill and aptitude
testing and assessment for workers.
(C) The counseling, case management, and referral
of qualified job seekers to openings and training
programs, including low-carbon energy, sustainable
energy, and energy efficiency training programs.
(d) State Energy Training Partnership Program.--
(1) In general.--Under the program established under
section 4603, the Secretary shall award competitive grants to
States to enable the States to administer low-carbon energy,
sustainable energy, and energy efficiency workforce development
programs that include the implementation of the activities
described in paragraph (2).
(2) Activities.--
(A) In general.--A State shall use amounts awarded
under the subsection to award competitive grants to
eligible State energy sector partnerships to enable the
partnerships to coordinate with existing apprenticeship
and labor management training programs and implement
training programs that lead to the economic self-
sufficiency of trainees.
(B) Eligibility.--To be eligible to receive a grant
under this subsection, a State energy sector
partnership shall--
(i) consist of nonprofit organizations that
include equal participation from industry,
including public or private nonprofit
employers, and labor organizations, including
joint labor-management training programs, and
may include representatives from local
governments, worker investment agency one-stop
career centers, community based organizations,
community colleges, other post-secondary
institutions, small businesses, cooperatives,
State and local veterans agencies, and veterans
service organizations;
(ii) demonstrate experience in implementing
and operating worker skills training and
education programs; and
(iii) demonstrate the ability to identify
and involve in training programs, target
populations of workers that are or will be
engaged in activities relating to low-carbon
energy, sustainable energy, and energy
efficiency industries.
(C) Priority.--In awarding grants under this
subsection, the Secretary shall give priority to States
that demonstrate linkages of activities under the grant
with--
(i) meeting national energy policies
associated with low-carbon energy, sustainable
energy, and energy efficiency; and
(ii) meeting State energy policies
associated with low-carbon energy, sustainable
energy, and energy efficiency.
(D) Coordination.--An entity that receives a grant
under this subsection shall--
(i) coordinate activities carried out under
the grant with existing apprenticeship and
labor management training programs; and
(ii) implement training programs that lead
to the economic self-sufficiency of trainees,
including providing--
(I) outreach and recruitment
services, in coordination with the
appropriate State agency;
(II) occupational skills training,
including curriculum development, on-
the-job training, and classroom
training;
(III) safety and health training;
(IV) basic skills, literacy,
general equivalency degree, English as
a second language, and job readiness
training;
(V) individual referral and tuition
assistance for a community college
training program;
(VI) customized training in
conjunction with an existing registered
apprenticeship program or labor-
management partnership;
(VII) career ladder and upgrade
training; and
(VIII) services under transitional
jobs strategies.
SEC. 4605. WORKER PROTECTIONS AND NONDISCRIMINATION REQUIREMENTS.
(a) Applicability of WIA.--Sections 181 and 188 of the Workforce
Investment Act of 1998 (29 U.S.C. 2931, 2938) shall apply to all
programs carried out using assistance under this subtitle.
(b) Consultation With Labor Organizations.--If a labor organization
represents a substantial number of workers that are engaged in similar
work or training in an area that is the same as the area that is
proposed to be funded under this subtitle, the labor organization shall
be provided an opportunity to be consulted and to submit comments in
regard to such a proposal.
SEC. 4606. WORKFORCE TRAINING AND SAFETY.
(a) University Programs.--In order to enhance the educational
opportunities and safety of a future generation of scientists,
engineers, health physicists, and energy workforce employees, 25
percent of the funds deposited into the Climate Change Worker Training
Fund shall be used for the University Programs within the Department of
Energy, to help United States university and colleges stay at the
forefront of science education and research and assist universities in
the operation of advanced energy research facilities and in the
performance of other educational activities.
(b) Employee Organizations.--The Secretary shall provide technical
assistance and funds for training directly to nonprofit employee
organizations, voluntary emergency response organizations, and joint
labor-management organizations that demonstrate experience in
implementing and operating worker health and safety training and
education programs.
(c) Workforce Training.--
(1) In general.--The Secretary of Labor, in cooperation
with the Secretary of Energy, shall promulgate regulations--
(A) to implement a program to provide workforce
training to meet the high demand for workers skilled in
zero- and low-emitting carbon energy technologies and
provide for related safety issues;
(B) to implement a fully validated electrical craft
certification program, career and technology awareness
at the primary and secondary education level,
preapprenticeship career technical education for all
zero- and low-emitting carbon energy technologies
related industrial skilled crafts, community college
and skill center training for zero- and low-emitting
carbon energy technology technicians, development of
construction management personnel for zero- and low-
emitting carbon energy technology construction projects
and regional grants for integrated zero- and low-
emitting carbon energy technology workforce development
programs; and
(C) to ensure the safety of workers in such
careers.
(2) Consultation.--In carrying out this subsection, the
Secretary of Labor shall consult with relevant Federal
agencies, representatives of the zero- and low-emitting carbon
energy technologies industries, and organized labor, concerning
skills and such safety measures that are needed in those
industries.
(d) Quantification.--For purposes of dispersing funds under this
section, qualifying zero- and low-emitting carbon energy means any
technology that has a rated capacity of at least 750 megawatts of
power.
Subtitle G--Adaptation Program for Natural Resources in United States
and Territories
SEC. 4701. DEFINITIONS.
In this subtitle:
(1) Ecological process.--
(A) In general.--The term ``ecological process''
means a biological, chemical, or physical interaction
between the biotic and abiotic components of an
ecosystem.
(B) Inclusions.--The term ``ecological process''
includes--
(i) nutrient cycling;
(ii) pollination;
(iii) predator-prey relationships;
(iv) soil formation;
(v) gene flow;
(vi) larval dispersal and settlement;
(vii) hydrological cycling;
(viii) decomposition; and
(ix) disturbance regimes, such as fire and
flooding.
(2) Fish and wildlife.--The term ``fish and wildlife''
means--
(A) any species of wild fauna, including fish and
other aquatic species; and
(B) any fauna in a captive breeding program the
object of which is to reintroduce individuals of a
depleted indigenous species into previously occupied
range.
(3) Habitat.--The term ``habitat'' means the physical,
chemical, and biological properties that are used by wildlife
(including aquatic and terrestrial plant communities) for
growth, reproduction, and survival, food, water, cover, and
space, on a tract of land, in a body of water, or in an area or
region.
(4) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(5) Plant.--The term ``plant'' means any species of wild
flora.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(7) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
SEC. 4702. ADAPTATION FUND.
(a) Availability of Amounts.--All amounts deposited in the
Adaptation Fund established by section 4101(3) shall be made available,
without further appropriation or fiscal year limitation, to carry out
activities (including research and education activities) that assist
fish and wildlife, fish and wildlife habitat, plants, and associated
ecological processes in becoming more resilient, adapting to, and
surviving the impacts of climate change and ocean acidification
(referred to in this section as ``adaptation activities'') pursuant to
this section.
(b) Department of the Interior.--Of the amounts made available
annually to carry out this subsection--
(1) 35 percent shall be allocated to the Secretary, and
subsequently made available to States through the Wildlife
Conservation and Restoration Account established under section
3(a)(2) of the Pittman-Robertson Wildlife Restoration Act (16
U.S.C. 669b(a)(2)), to carry out adaptation activities in
accordance with comprehensive State adaptation strategies, as
described in subsection (j);
(2) 19 percent shall be allocated to the Secretary for use
in funding adaptation activities carried out--
(A) under endangered species, migratory bird, and
other fish and wildlife programs administered by the
United States Fish and Wildlife Service;
(B) on wildlife refuges and other public land under
the jurisdiction of the United States Fish and Wildlife
Service, the Bureau of Land Management, or the National
Park Service; or
(C) within Federal water managed by the Bureau of
Reclamation;
(3) 5 percent shall be allocated to the Secretary for
adaptation activities carried out under cooperative grant
programs, including--
(A) the cooperative endangered species conservation
fund authorized under section 6(i) of the Endangered
Species Act of 1973 (16 U.S.C. 1535(i));
(B) programs under the North American Wetlands
Conservation Act (16 U.S.C. 4401 et seq.);
(C) the multinational species conservation fund
established under the heading ``multinational species
conservation fund'' of title I of the Department of the
Interior and Related Agencies Appropriations Act, 1999
(16 U.S.C. 4246);
(D) the Neotropical Migratory Bird Conservation
Fund established by section 9(a) of the Neotropical
Migratory Bird Conservation Act (16 U.S.C. 6108(a));
(E) the Coastal Program of the United States Fish
and Wildlife Service;
(F) the National Fish Habitat Action Plan;
(G) the Partners for Fish and Wildlife Program;
(H) the Landowner Incentive Program;
(I) the Wildlife Without Borders Program of the
United States Fish and Wildlife Service; and
(J) the Park Flight Migratory Bird Program of the
National Park Service; and
(4) 1 percent shall be allocated to the Secretary and
subsequently made available to Indian tribes to carry out
adaptation activities through the tribal wildlife grants
program of the United States Fish and Wildlife Service.
(c) Land and Water Conservation Fund.--
(1) Deposits.--
(A) In general.--Except as provided in paragraph
(2), of the amounts made available for each fiscal year
to carry out this subsection, 10 percent shall be
deposited into the Land and Water Conservation Fund
established under section 2 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-5).
(B) Deposits to the Land and Water Conservation
Fund under this subsection shall--
(i) be supplemental to authorizations
provided under section 3 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-
6); and
(ii) remain available for non-adaptation
needs.
(2) Exception.--For any fiscal year in which a deposit into
the Land and Water Conservation Fund under paragraph (1) would
result in an amount greater than $900,000,000--
(A) $900,000,000 shall be deposited into the Land
and Water Conservation Fund; and
(B) the remaining funds shall be distributed on a
pro rata basis as otherwise provided in this section.
(3) Allocations.--Of the amounts deposited under this
subsection into the Land and Water Conservation Fund--
(A) \1/6\ shall be allocated to the Secretary and
made available to carry out section 6 of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8)
to States, on a competitive basis--
(i) in accordance with comprehensive
wildlife conservation strategies and Indian
tribes, to carry out adaptation activities
through the acquisition of land and interests
in land;
(ii) notwithstanding section 5 of that Act
(16 U.S.C. 460l-7); and
(iii) in addition to grants provided
pursuant to--
(I) annual appropriations Acts;
(II) the Energy Policy Act of 2005
(42 U.S.C. 15801 et seq.); or
(III) any other authorization for
nonadaptation needs;
(B) \1/3\ shall be allocated to the Secretary to
carry out adaptation activities through the acquisition
of lands and interests in land under section 7 of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l-9);
(C) \1/6\ shall be allocated to the Secretary of
Agriculture and made available to the States to carry
out adaptation activities through the acquisition of
land and interests in land under section 7 of the
Forest Legacy Program under the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103c); and
(D) \1/3\ shall be allocated to the Secretary of
Agriculture to carry out adaptation activities through
the acquisition of land and interests in land under
section 7 of the Land and Water Conservation Fund Act
of 1965 (16 U.S.C. 460l-9).
(4) Expenditure of funds.--In allocating funds under
subsection (c), the Secretary and the Secretary of Agriculture
shall take into consideration factors including--
(A) the availability of non-Federal contributions
from State, local, or private sources;
(B) opportunities to protect wildlife corridors or
otherwise to link or consolidate fragmented habitats;
(C) opportunities to reduce the risk of
catastrophic wildfires, extreme flooding, or other
climate-related events that are harmful to fish and
wildlife and people;
(D) the potential for conservation of species or
habitat types at serious risk due to climate change,
ocean acidification, and other stressors; and
(E) the potential to provide enhanced access to
land and water for fishing, hunting, and other public
recreational uses.
(d) Forest Service.--Of the amounts made available annually to
carry out this section, 5 percent shall be allocated to the Secretary
of Agriculture for use in funding adaptation activities carried out on
national forests and national grasslands under the jurisdiction of the
Forest Service, or pursuant to the cooperative Wings Across the
Americas Program.
(e) Environmental Protection Agency.--Of the amounts made available
annually to carry out this section, 5 percent shall be allocated to the
Administrator for use in adaptation activities restoring and
protecting--
(1) large-scale freshwater aquatic ecosystems, such as the
Everglades, the Great Lakes, Flathead Lake, the Missouri River,
the Mississippi River, the Colorado River, the Sacramento-San
Joaquin Rivers, the Ohio River, the Columbia-Snake River
System, the Apalachicola, Chattahoochee and Flint River System,
the Connecticut River, and the Yellowstone River;
(2) large-scale estuarine ecosystems, such as Chesapeake
Bay, Long Island Sound, Puget Sound, the Mississippi River
Delta , San Francisco Bay Delta, Narragansett Bay, and
Albemarle-Pamlico Sound; and
(3) freshwater and estuarine ecosystems, watersheds, and
basins identified as priorities by the Administrator, working
in cooperation with other Federal agencies, States, local
governments, scientists, and other conservation partners.
(f) Corps of Engineers.--Of the amounts made available annually to
carry out this section, 10 percent shall be allocated to the Secretary
of the Army for use by the Corps of Engineers to carry out adaptation
activities restoring--
(1) large-scale freshwater aquatic ecosystems, such as the
ecosystems described in subsection (e)(1);
(2) large-scale estuarine ecosystems, such as the
ecosystems described in subsection (e)(2);
(3) freshwater and estuarine ecosystems, watersheds, and
basins identified as priorities by the Corps of Engineers,
working in cooperation with other Federal agencies, States,
local governments, scientists, and other conservation partners;
and
(4) habitats or ecosystems under programs such as the
Estuary Restoration Act of 2000 (33 U.S.C. 2901 et seq.),
project modifications for improvement of the environment, and
aquatic restoration under section 206 of the Water Resources
Development Act of 1996 (33 U.S.C. 2330).
(g) Department of Commerce.--Of the amounts made available annually
to carry out this section, 10 percent shall be allocated to the
Secretary of Commerce for use in funding adaptation activities to
protect, maintain, and restore coastal, estuarine, and marine
resources, habitats, and ecosystems, including such activities carried
out under--
(1) the coastal and estuarine land conservation program;
(2) the community-based restoration program;
(3) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.), subject to the condition that State coastal agencies
shall incorporate, and the Secretary of Commerce shall approve,
coastal zone management plan elements that are--
(A) consistent with the national adaptation
strategy under subsection (i), as part of a coastal
zone management program established under this Act; and
(B) specifically designed to strengthen the ability
of coastal, estuarine, and marine resources, habitats,
and ecosystems to adapt to and withstand the impacts
of--
(i) global warming; and
(ii) where practicable, ocean
acidification;
(4) the Open Rivers Initiative;
(5) the Magnuson Fishery Conservation and Management Act
(16 U.S.C. 1801 et seq.);
(6) the Marine Mammal Protection Act of 1972 (16 U.S.C.
1361 et seq.);
(7) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.);
(8) the Marine Protection, Research, and Sanctuaries Act of
1972 (33 U.S.C. 1401 et seq.); and
(9) the Coral Reef Conservation Act of 2000 (16 U.S.C. 6401
et seq.).
(h) Cost Sharing.--Notwithstanding any other provision of law, a
State or Indian tribe that receives a grant under paragraph (1) or (4)
of subsection (b) shall provide 10 percent of the costs of each
activity carried out using amounts under the grant.
(i) National Adaptation Strategy.--
(1) In general.--Effective beginning on the date on which
the President establishes the national strategy under paragraph
(3), funds made available under paragraphs (2), (3), and (4) of
subsection (b) and subsections (c) through (g) shall be used
only for adaptation activities that are consistent with the
national strategy.
(2) Initial period.--Until the date on which the President
establishes the national strategy under paragraph (3), funds
made available under paragraphs (2), (3), and (4) of subsection
(b) and subsections (c) through (g) shall be used only for
adaptation activities that are consistent with a workplan
established by the President.
(3) National strategy.--
(A) In general.--Not later than 3 years after the
date of enactment of this Act, the President shall
develop and implement a national strategy for assisting
fish and wildlife, fish and wildlife habitat, plants,
and associated ecological processes in becoming more
resilient and adapting to the impacts of climate change
and ocean acidification.
(B) Administration.--In establishing and revising
the national strategy, the President shall--
(i) base the national strategy on the best
available science, as identified by the Science
Advisory Board established under subparagraph
(D);
(ii) develop the national strategy in
cooperation with State fish and wildlife
agencies, State coastal agencies, United States
territories, and Indian tribes;
(iii) coordinate with the Secretary of the
Interior, the Secretary of Commerce, the
Secretary of Agriculture, the Secretary of
Defense, the Administrator of the Environmental
Protection Agency, and other agencies as
appropriate;
(iv) consult with local governments,
conservation organizations, scientists, and
other interested stakeholders; and
(v) provide public notice and opportunity
for comment.
(C) Contents.--The President shall include in the
national strategy, at a minimum, prioritized goals and
measures and a schedule for implementation--
(i) to identify and monitor fish and
wildlife, fish and wildlife habitat, plants,
and associated ecological processes that are
particularly likely to be adversely affected by
climate change and ocean acidification and have
the greatest need for conservation;
(ii) to identify and monitor coastal,
estuarine, marine, terrestrial, and freshwater
habitats that are at the greatest risk of being
damaged by climate change and ocean
acidification;
(iii) to assist species in adapting to the
impacts of climate change and ocean
acidification;
(iv) to protect, acquire, maintain, and
restore fish and wildlife habitat to build
resilience to climate change and ocean
acidification;
(v) to provide habitat linkages and
corridors to facilitate fish, wildlife, and
plant movement in response to climate change
and ocean acidification;
(vi) to restore and protect ecological
processes that sustain fish, wildlife, and
plant populations that are vulnerable to
climate change and ocean acidification;
(vii) to protect, maintain, and restore
coastal, marine, and aquatic ecosystems so that
the ecosystems are more resilient and better
able to withstand the additional stresses
associated with climate change, including
relative sea level rise and ocean
acidification;
(viii) to protect ocean and coastal species
from the impact of climate change and ocean
acidification;
(ix) to incorporate adaptation strategies
and activities to address relative sea level
rise in coastal zone planning;
(x) to protect, maintain, and restore ocean
and coastal habitats to build healthy and
resilient ecosystems, including the purchase of
coastal and island land; and
(xi) to incorporate consideration of
climate change and ocean acidification, and to
integrate adaptation strategies and activities
for fish and wildlife, fish and wildlife
habitat, plants, and associated ecological
processes, in the planning and management of
Federal land and water administered by the
Federal agencies that receive funding under
this section.
(D) Science advisory board.--
(i) Establishment.--Not later than 180 days
after the date of enactment of this Act, the
Secretary shall establish and appoint the
members of a science advisory board, to be
comprised of not fewer than 10 and not more
than 20 members, who shall--
(I) be recommended by the President
of the National Academy of Sciences;
(II) have expertise in fish,
wildlife, plant, aquatic, and coastal
and marine biology, ecology, climate
change, ocean acidification, and other
relevant scientific disciplines; and
(III) represent a balanced
membership between Federal, State, and
local representatives, universities,
and conservation organizations.
(ii) Duties.--The science advisory board
shall--
(I) advise the President and
relevant Federal agencies and
departments on--
(aa) the best available
science regarding the impacts
of climate change and ocean
acidification on fish and
wildlife, habitat, plants, and
associated ecological
processes; and
(bb) scientific strategies
and mechanisms for adaptation;
and
(II) identify and recommend
priorities for ongoing research needs
on those issues.
(iii) Collaboration.--The science advisory
board shall collaborate with other climate
change and ecosystem research entities in other
Federal agencies and departments.
(iv) Availability to public.--The advice
and recommendations of the science advisory
board shall be made available to the public.
(v) Nonapplicability of faca.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall
not apply to the science advisory board.
(E) Coordination with other plans.--In developing
the national strategy, the President shall, to the
maximum extent practicable--
(i) take into consideration research and
information contained in--
(I) State comprehensive wildlife
conservation plans;
(II) the North American waterfowl
management plan;
(III) the national fish habitat
action plan;
(IV) coastal zone management plans;
(V) the reports of the Pew Oceans
Commission and the United States
Commission on Ocean Policy; and
(VI) other relevant plans; and
(ii) coordinate and integrate the goals and
measures identified in the national strategy
with the goals and measures identified in those
plans.
(F) Revisions.--Not later than 5 years after the
date on which the strategy is developed, and not less
frequently than every 5 years thereafter, the President
shall review and update the national strategy using the
procedures described in this paragraph.
(j) State Comprehensive Adaptation Strategies.--
(1) In general.--Except as provided in paragraph (2), funds
made available to States under this subtitle shall be used only
for activities that are consistent with a State strategy that
has been approved by, as appropriate--
(A) the Secretary of the Interior; or
(B) for any State with a coastal zone (within the
meaning of the Coastal Zone Management Act (16 U.S.C.
1451 et seq.)), by the Secretary of Commerce, subject
to the condition that approval by the Secretary of
Commerce shall be required only for those portions of
the strategy relating to activities affecting the
coastal zone.
(2) Initial period.--
(A) In general.--Until the earlier of the date that
is 3 years after the date of enactment of this Act or
the date on which a State receives approval for the
State strategy, a State shall be eligible to receive
funding under subsection (b)(1) for adaptation
activities that are--
(i) consistent with the comprehensive
wildlife strategy of the State and, where
appropriate, other fish, wildlife and
conservation strategies; and
(ii) in accordance with a workplan
developed in coordination with, as
appropriate--
(I) the Secretary of the Interior;
or
(II) for any State with a coastal
zone (within the meaning of the Coastal
Zone Management Act (16 U.S.C. 1451 et
seq.)), by the Secretary of Commerce,
subject to the condition that approval
by the Secretary of Commerce shall be
required only for those portions of the
strategy relating to activities
affecting the coastal zone.
(B) Pending approval.--During the period for which
approval by the applicable Secretary of a State
strategy described in paragraph (3) is pending, the
State may continue receiving funds under subsection
(b)(1) pursuant to the workplan described subparagraph
(A)(ii).
(3) Requirements.--A State strategy shall--
(A) describe the impacts of climate change and
ocean acidification on the diversity and health of the
fish, wildlife and plant populations, habitats, and
associated ecological processes;
(B) describe and prioritize proposed conservation
actions to assist fish, wildlife, and plant populations
in adapting to those impacts;
(C) establish programs for monitoring the impacts
of climate change on fish, wildlife, and plant
populations, habitats, and associated ecological
processes;
(D) include strategies, specific conservation
actions, and a timeframe for implementing conservation
actions for fish, wildlife, and plant populations,
habitats, and associated ecological processes;
(E) establish methods for assessing the
effectiveness of conservation actions taken to assist
fish, wildlife, and plant populations, habitats, and
associated ecological processes in adapting to those
impacts and for updating those actions to respond
appropriately to new information or changing
conditions;
(F) be developed--
(i) with the participation of the State
fish and wildlife agency, the State agency
responsible for administration of Land and
Water Conservation Fund grants, the State
Forest Legacy program coordinator, and the
State coastal agency; and
(ii) in coordination with the Secretary of
the Interior and, where applicable, the
Secretary of Commerce;
(G) provide for solicitation and consideration of
public and independent scientific input;
(H) take into consideration research and
information contained in, and coordinate with and
integrate the goals and measures identified in, as
appropriate, other fish, wildlife, and habitat
conservation strategies, including--
(i) the national fish habitat action plan;
(ii) plans under the North American
Wetlands Conservation Act (16 U.S.C. 4401 et
seq.);
(iii) the Federal, State, and local
partnership known as ``Partners in Flight'';
(iv) federally approved coastal zone
management plans under the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et
seq.);
(v) federally approved regional fishery
management plans and habitat conservation
activities under the Magnuson Fishery
Conservation and Management Act (16 U.S.C. 1801
et seq.);
(vi) the national coral reef action plan;
(vii) recovery plans for threatened species
and endangered species under section 4(f) of
the Endangered Species Act of 1973 (16 U.S.C.
1533(f));
(viii) habitat conservation plans under
section 10 of that Act (16 U.S.C. 1539);
(ix) other Federal and State plans for
imperiled species;
(x) the United States shorebird
conservation plan;
(xi) the North American waterbird
conservation plan; and
(xii) other State-based strategies that
comprehensively implement adaptation activities
to remediate the effects of climate change and
ocean acidification on fish, wildlife, and
habitats; and
(I) be incorporated into a revision of the
comprehensive wildlife conservation strategy of a
State--
(i) that has been submitted to the United
States Fish and Wildlife Service; and
(ii)(I) that has been approved by the
Service; or
(II) on which a decision on approval is
pending.
(4) Updating.--Each State strategy described in paragraph
(3) shall be updated at least every 5 years.
Subtitle H--International Climate Change Adaptation and National
Security Program
SEC. 4801. FINDINGS.
Congress finds that--
(1) global climate change represents a potentially
significant threat multiplier for instability around the world
as changing precipitation patterns may exacerbate competition
and conflict over agricultural, vegetative, and water resources
and displace people, thus increasing hunger and poverty and
causing increased pressure on least developed countries;
(2) the strategic, social, political, and economic
consequences of global climate change could have
disproportionate impacts on least developed countries, which
have fewer resources and thus, often fewer emissions;
(3) the strategic, social, political, and economic
consequences of global climate change are likely to have a
greater adverse effect on less developed countries;
(4) the consequences of global climate change could pose a
danger to the security interest and economic interest of the
United States; and
(5) it is in the national security interest of the United
States to recognize, plan for, and mitigate the international
strategic, social, political, and economic effects of a
changing climate.
SEC. 4802. PURPOSES.
The purposes of this subtitle are--
(1) to protect the national security of the United States
where such interest can be advanced by minimizing, averting, or
increasing resilience to potentially destabilizing climate
change impacts;
(2) to support the development of national and regional
climate change adaptation plans in least developed countries;
(3) to support the deployment of technologies that would
help least developed countries reduce their greenhouse gas
emissions and respond to destabilizing impacts of climate
change;
(4) to provide assistance to least-developed countries and
small island developing states with national or regional
climate change adaptation plans in the planning, financing, and
execution of adaptation projects;
(5) to support investments and capital to reduce
vulnerability related to climate change and its impacts,
including but not limited to drought, famine, floods, sea level
rise, shifts in agricultural zones or seasons, shifts in range
that affect economic livelihoods, and refugees and internally
displaced persons;
(6) to support climate change adaptation research in or for
least developed countries; and
(7) to encourage the identification and adoption of
appropriate low-carbon and efficient energy technologies in
least-developed countries.
SEC. 4803. ESTABLISHMENT.
(a) Establishment of Program.--The Secretary of State, working with
the Administrator of the U.S. Agency for International Development
(referred to in this subtitle as the ``Agency'') and the Administrator,
shall establish an International Climate Change Adaptation and National
Security Program within the Agency.
(b) Responsibilities of Program.--The Program shall--
(1) submit annual reports to the President, the Committees
on Environment and Public Works and Foreign Relations of the
Senate, and the Committees on Energy and Commerce and Foreign
Relations of the House of Representatives, and any other
relevant committees on national security, the economy and
foreign policy, that describe--
(A) the extent to which other countries are
committing to reducing greenhouse gas emissions through
mandatory programs;
(B) the extent to which global climate change,
through its potential negative impacts on sensitive
populations and natural resources in least developed
countries, may threaten, cause, or exacerbate political
instability or international conflict in those regions;
and
(C) the ramifications of any potentially
destabilizing impacts climate change may have on the
economic and national security of the United States,
including--
(i) the creation of refugees; and
(ii) international or internal armed
conflicts over water, food, land, or other
resources;
(2) include in each annual report submitted under paragraph
(1) a description of how funds made available under section
4804 were spent to enhance the national security of the United
States and assist in avoiding the politically destabilizing
impacts of climate change in volatile regions of the world,
particularly least developed countries; and
(3) identify and recommend the countries in which
assistance can have the greatest and most sustainable benefit
to reducing vulnerability to climate change, primarily in the
form of deploying adaptation and greenhouse gas reduction
technologies.
SEC. 4804. FUNDING.
(a) Carrying Out Recommendations.--All funds deposited into the
Climate Change and National Security Fund established by section
4101(4) shall be made available, without further appropriation or
fiscal year limitation, to carry out the program established under this
subtitle.
(b) Distribution of Funds.--The Administrator of the Agency shall
distribute to the International Climate Change Adaptation and National
Security Program the funds for the purposes described in section 4802.
(c) Oversight.--The Administrator of the Agency shall oversee the
expenditures by the Program.
(d) Limitations.--Not more than 10 percent of amounts made
available to carry out this subtitle shall be spent in any single
country in any year.
Subtitle I--Emergency Firefighting Programs
SEC. 4901. FINDINGS.
Congress finds that--
(1) since 1980, wildfires in the United States have burned
almost twice as many acres per year on average than the average
burned acreage during the period beginning on January 1, 1920,
and ending on December 31, 1979;
(2) the wildfire season in the western United States has
increased by an average of 78 days during the 30-year period
preceding the date of enactment of this Act;
(3) researchers predict that the area subject to wildfire
damage will increase during the 21st century by up to 118
percent as a result of climate change;
(4) of the annual budget of the Forest Service, the Forest
Service used for wildfire suppression activities--
(A) 13 percent in 1991; and
(B) 45 percent in 2007; and
(5) 1 percent of the largest escaped fires--
(A) burn 95 percent of all burned acres; and
(B) consume 85 percent of all wildfire fighting
costs.
SEC. 4902. BUREAU OF LAND MANAGEMENT EMERGENCY FIREFIGHTING PROGRAM.
(a) Use of Funds.--The amounts deposited into the Bureau of Land
Management Emergency Firefighting Fund established by section 4101(5)
shall be made available, without further appropriation or fiscal year
limitation, to pay for wildland fire suppression activities the costs
of which are in excess of amounts annually appropriated to the
Secretary of the Interior for normal, nonemergency wildland fire
suppression activities.
(b) Accounting and Reporting.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Secretary of the Interior shall
establish an accounting and reporting system, in accordance and
compatible with National Fire Plan reporting procedures, for
the activities carried out under this section.
(2) Requirement.--The system established under paragraph
(1) shall require that the Secretary of the Interior shall
submit to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate--
(A) a monthly report describing each expenditure
made from the Bureau of Land Management Emergency
Firefighting Fund during the preceding month; and
(B) a report at the end of each fiscal year
describing the expenditures made from the Bureau of
Land Management Emergency Firefighting Fund during the
preceding fiscal year.
SEC. 4903. FOREST SERVICE EMERGENCY FIREFIGHTING PROGRAM.
(a) Use of Funds.--The amounts deposited into the Forest Service
Emergency Firefighting Fund established by section 4101(6) shall be
made available, without further appropriation or fiscal year
limitation, to pay for wildland fire suppression activities the costs
of which are in excess of amounts annually appropriated to the
Secretary of Agriculture for normal, nonemergency wildland fire
suppression activities.
(b) Accounting and Reporting.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Secretary of Agriculture shall
establish an accounting and reporting system, in accordance and
compatible with National Fire Plan reporting procedures, for
the activities carried out under this section.
(2) Requirement.--The system established under paragraph
(1) shall require that the Secretary of Agriculture shall
submit to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate--
(A) a monthly report describing each expenditure
made from the Forest Service Emergency Firefighting
Fund during the preceding month; and
(B) a report at the end of each fiscal year
describing the expenditures made from the Forest
Service Emergency Firefighting Fund during the
preceding fiscal year.
TITLE V--ENERGY EFFICIENCY
Subtitle A--Appliance Efficiency
SEC. 5101. RESIDENTIAL BOILERS.
Section 325(f) of the Energy Policy and Conservation Act (42 U.S.C.
6925(f)) is amended--
(1) in the subsection heading, by inserting ``and Boilers''
after ``Furnaces'';
(2) in paragraph (1), by striking ``except that'' and all
that follows through subparagraph (A) and inserting ``except
that'';
(3) in subparagraph (B)--
(A) by striking ``(B) the Secretary'' and inserting
``the Secretary''; and
(B) by redesignating clauses (i) through (iii) as
subparagraphs (A) through (C), respectively, and
indenting appropriately;
(4) by redesignating paragraph (3) as paragraph (4); and
(5) by inserting after paragraph (2) the following:
``(3) Boilers.--
``(A) In general.--Subject to subparagraphs (B) and
(C), boilers manufactured on or after September 1,
2012, shall meet the following requirements:
------------------------------------------------------------------------
Minimum
Annual Fuel
``Boiler Type Requirements Utilization Design
Efficiency
------------------------------------------------------------------------
Gas hot water................. 82 percent No constant burning pilot,
automatic means for
adjusting water
temperature
Gas steam..................... 80 percent No constant burning pilot
Oil hot water................. 84 percent Automatic means for
adjusting temperature
Oil steam..................... 82 percent None
Electric hot water............ None Automatic means for
adjusting temperature
Electric steam................ None None
------------------------------------------------------------------------
``(B) Automatic means for adjusting water
temperature.--
``(i) In general.--The manufacturer shall
equip each gas, oil, and electric hot water
boiler (other than a boiler equipped with
tankless domestic water heating coils) with an
automatic means for adjusting the temperature
of the water supplied by the boiler to ensure
that an incremental change in inferred heat
load produces a corresponding incremental
change in the temperature of water supplied.
``(ii) Certain boilers.--For a boiler that
fires at 1 input rate, the requirements of this
subparagraph may be satisfied by providing an
automatic means that allows the burner or
heating element to fire only when the means has
determined that the inferred heat load cannot
be met by the residual heat of the water in the
system.
``(iii) No inferred heat load.--When there
is no inferred heat load with respect to a hot
water boiler, the automatic means described in
clauses (i) and (ii) shall limit the
temperature of the water in the boiler to not
more than 140 degrees Fahrenheit.
``(iv) Operation.--A boiler described in
clause (i) or (ii) shall be operable only when
the automatic means described in clauses (i),
(ii), and (iii) is installed.
``(C) Exception.--A boiler that is manufactured to
operate without any need for electricity, any electric
connection, any electric gauges, electric pumps,
electric wires, or electric devices of any sort, shall
not be required to meet the requirements of this
subsection.''.
SEC. 5102. REGIONAL VARIATIONS IN HEATING OR COOLING STANDARDS.
(a) In General.--Section 327 of the Energy Policy and Conservation
Act (42 U.S.C. 6297) is amended--
(1) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(2) by inserting after subsection (d) the following:
``(e) Regional Standards for Space Heating and Air Conditioning
Products.--
``(1) Standards.--
``(A) In general.--The Secretary may establish
regional standards for space heating and air
conditioning products, other than window-unit air-
conditioners and portable space heaters.
``(B) National minimum and regional standards.--For
each space heating and air conditioning product, the
Secretary may establish--
``(i) a national minimum standard; and
``(ii) 2 more stringent regional standards
for regions determined to have significantly
differing climatic conditions.
``(C) Maximum savings.--Any standards established
for a region under subparagraph (B)(ii) shall achieve
the maximum level of energy savings that are
technically feasible and economically justified within
that region.
``(D) Economic justifiability study.--
``(i) In general.--As a preliminary step in
determining the economic justifiability of
establishing a regional standard under
subparagraph (B)(ii), the Secretary shall
conduct a study involving stakeholders,
including--
``(I) a representative from the
National Institute of Standards and
Technology;
``(II) representatives of
nongovernmental advocacy organizations;
``(III) representatives of product
manufacturers, distributors, and
installers;
``(IV) representatives of the gas
and electric utility industries; and
``(V) such other individuals as the
Secretary may designate.
``(ii) Requirements.--The study under this
subparagraph--
``(I) shall determine the potential
benefits and consequences of
prescribing regional standards for
heating and cooling products; and
``(II) may, if favorable to the
standards, constitute the evidence of
economic justifiability required under
this Act.
``(E) Regional boundaries.--Regional boundaries
used in establishing regional standards under
subparagraph (B)(ii) shall--
``(i) conform to State borders; and
``(ii) include only contiguous States
(other than Alaska and Hawaii), except that on
the request of a State, the Secretary may
divide the State to include a part of the State
in each of 2 regions.
``(2) Noncomplying products.--If the Secretary establishes
standards for a region, it shall be unlawful under section 332
to offer for sale at retail, sell at retail, or install within
the region products that do not comply with the applicable
standards.
``(3) Distribution in commerce.--
``(A) In general.--Except as provided in
subparagraph (B), no product manufactured in a manner
that complies with a regional standard established
under paragraph (1) shall be distributed in commerce
without a prominent label affixed to the product that
includes--
``(i) at the top of the label, in print of
not less than 14-point type, the following
statement: `It is a violation of Federal law
for this product to be installed in any State
outside the region shaded on the map printed on
this label.';
``(ii) below the notice described in clause
(i), an image of a map of the United States
with clearly defined State boundaries and
names, and with all States in which the product
meets or exceeds the standard established
pursuant to paragraph (1) shaded in a color or
a manner as to be easily visible without
obscuring the State boundaries and names; and
``(iii) below the image of the map required
under clause (ii), the following statement: `It
is a violation of Federal law for this label to
be removed, except by the owner and legal
resident of any single-family home in which
this product is installed.'.
``(B) Energy-efficiency rating.--A product
manufactured that meets or exceeds all regional
standards established under this paragraph shall bear a
prominent label affixed to the product that includes at
the top of the label, in print of not less than 14-
point type, the following statement: `This product has
achieved an energy-efficiency rating under Federal law
allowing its installation in any State.'.
``(4) Recordkeeping.--A manufacturer of space heating or
air conditioning equipment subject to regional standards
established under this subsection shall--
``(A) obtain and retain records on the intended
installation locations of the equipment sold; and
``(B) make such records available to the Secretary
on request.''.
(b) Conforming Amendments.--Section 327 of the Energy Policy and
Conservation Act (42 U.S.C. 6297) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``subsection
(e)'' and inserting ``subsection (f)''; and
(B) in paragraph (3)--
(i) by striking ``subsection (f)(1)'' and
inserting ``subsection (g)(1)''; and
(ii) by striking ``subsection (f)(2)'' and
inserting ``subsection (g)(2)''; and
(2) in subsection (c)(3), by striking ``subsection (f)(3)''
and inserting ``subsection (g)(3)''.
Subtitle B--Building Efficiency
SEC. 5201. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.
Section 304 of the Energy Conservation and Production Act (42
U.S.C. 6833) is amended to read as follows:
``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.
``(a) Updates.--
``(1) In general.--The Secretary shall support updating the
national model building energy codes and standards not later
than 3 years after the date of enactment of the Lieberman-
Warner Climate Security Act of 2007, and not less frequently
every 3 years thereafter, to achieve overall energy savings, as
compared to the IECC (2006) for residential buildings and
ASHRAE Standard 90.1 (2004) for commercial buildings, of at
least--
``(A) 30 percent, with respect to each edition of a
model code or standard published during the period
beginning on January 1, 2010, and ending on December
31, 2019;
``(B) 50 percent, with respect to each edition of a
model code or standard published on or after January 1,
2020; and
``(C) targets for intermediate and subsequent
years, to be established by the Secretary not less than
3 years before the beginning on each target year, in
coordination with IECC and ASHRAE Standard 90.1 cycles,
at the maximum level of energy efficiency that is
technologically feasible and lifecycle cost-effective.
``(2) Revisions to iecc and ashrae.--
``(A) In general.--If the IECC or ASHRAE Standard
90.1 regarding building energy use is revised, not
later than 1 year after the date of the revision, the
Secretary shall determine whether the revision will--
``(i) improve energy efficiency in
buildings; and
``(ii) meet the energy savings goals
described in paragraph (1).
``(B) Modifications.--
``(i) In general.--If the Secretary makes a
determination under subparagraph (A)(ii) that a
code or standard does not meet the energy
savings goals established under paragraph (1)
or if a national model code or standard is not
updated for more than 3 years, not later than 1
year after the determination or the expiration
of the 3-year period, the Secretary shall
establish a modified code or standard that
meets the energy savings goals.
``(ii) Requirements.--
``(I) Energy savings.--A
modification to a code or standard
under clause (i) shall--
``(aa) achieve the maximum
level of energy savings that is
technically feasible and
lifecycle cost-effective;
``(bb) be achieved through
an amendment or supplement to
the most recent revision of the
IECC or ASHRAE Standard 90.1
and taking into consideration
other appropriate model codes
and standards; and
``(cc) incorporate
available appliances,
technologies, and construction
practices.
``(II) Treatment as baseline.--A
modification to a code or standard
under clause (i) shall serve as the
baseline for the next applicable
determination of the Secretary under
subparagraph (A)(i).
``(C) Public participation.--The Secretary shall--
``(i) publish in the Federal Register a
notice relating to each goal, determination,
and modification under this paragraph; and
``(ii) provide an opportunity for public
comment regarding the goals, determinations,
and modifications.
``(b) State Certification of Building Energy Code Updates.--
``(1) General certification.--
``(A) In general.--Not later than 2 years after the
date of enactment of the Lieberman-Warner Climate
Security Act of 2007, each State shall certify to the
Secretary that the State has reviewed and updated the
provisions of the residential and commercial building
codes of the State regarding energy efficiency.
``(B) Energy savings.--A certification under
subparagraph (A) shall include a demonstration that the
applicable provisions of the State code meet or exceed,
as applicable--
``(i)(I) the IECC (2006) for residential
buildings; or
``(II) the ASHRAE Standard 90.1 (2004) for
commercial buildings; or
``(ii) the quantity of energy savings
represented by the provisions referred to in
clause (i).
``(2) Revision of codes and standards.--
``(A) In general.--If the Secretary makes an
affirmative determination under subsection (a)(2)(A)(i)
or establishes a modified code or standard under
subsection (a)(2)(B), not later than 2 years after the
determination or proposal, each State shall certify
that the State has reviewed and updated the provisions
of the residential and commercial building codes of the
State regarding energy efficiency.
``(B) Energy savings.--A certification under
subparagraph (A) shall include a demonstration that the
applicable provisions of the State code meet or
exceed--
``(i) the modified code or standard; or
``(ii) the quantity of energy savings
represented by the modified code or standard.
``(C) Failure to determine.--If the Secretary fails
to make a determination under subsection (a)(2)(A)(i)
by the date specified in subsection (a)(2), or if the
Secretary makes a negative determination, not later
than 2 years after the specified date or the date of
the determination, each State shall certify that the
State has--
``(i) reviewed the revised code or
standard; and
``(ii) updated the provisions of the
residential and commercial building codes of
the State as necessary to meet or exceed, as
applicable--
``(I) any provisions of a national
code or standard determined to improve
energy efficiency in buildings; or
``(II) energy savings achieved by
those provisions through other means.
``(c) Achievement of Compliance by States.--
``(1) In general.--Not later than 3 years after the date on
which a State makes a certification under subsection (b), the
State shall certify to the Secretary that the State has
achieved compliance with the building energy code that is the
subject of the certification.
``(2) Rate of compliance.--The certification shall include
documentation of the rate of compliance based on independent
inspections of a random sample of the new and renovated
buildings covered by the State code during the preceding
calendar year.
``(3) Compliance.--A State shall be considered to achieve
compliance for purposes of paragraph (1) if--
``(A) at least 90 percent of new and renovated
buildings covered by the State code during the
preceding calendar year substantially meet all the
requirements of the code; or
``(B) the estimated excess energy use of new and
renovated buildings that did not meet the requirements
of the State code during the preceding calendar year,
as compared to a baseline of comparable buildings that
meet the requirements of the code, is not more than 10
percent of the estimated energy use of all new and
renovated buildings covered by the State code during
the preceding calendar year.
``(d) Failure To Certify.--
``(1) Extension of deadlines.--The Secretary shall extend a
deadline for certification by a State under subsection (b) or
(c) for not more than 1 additional year, if the State
demonstrates to the satisfaction of the Secretary that the
State has made--
``(A) a good faith effort to comply with the
certification requirement; and
``(B) significant progress with respect to the
compliance.
``(2) Noncompliance by state.--
``(A) In general.--A State that fails to submit a
certification required under subsection (b) or (c), and
to which an extension is not provided under paragraph
(1), shall be considered to be out of compliance with
this section.
``(B) Effect on local governments.--A local
government of a State that is out of compliance with
this section may be considered to be in compliance with
this section if the local government meets each
applicable certification requirement of this section.
``(e) Technical Assistance.--
``(1) In general.--The Secretary shall provide technical
assistance (including building energy analysis and design
tools, building demonstrations, and design assistance and
training) to ensure that national model building energy codes
and standards meet the goals described in subsection (a)(1).
``(2) Assistance to states.--The Secretary shall provide
technical assistance to States--
``(A) to implement this section, including
procedures for States to demonstrate that the codes of
the States achieve equivalent or greater energy savings
than the national model codes and standards;
``(B) to improve and implement State residential
and commercial building energy efficiency codes; and
``(C) to otherwise promote the design and
construction of energy-efficient buildings.
``(f) Incentive Funding.--
``(1) In general.--The Secretary shall provide incentive
funding to States--
``(A) to implement this section; and
``(B) to improve and implement State residential
and commercial building energy efficiency codes,
including increasing and verifying compliance with the
codes.
``(2) Amount.--In determining whether, and in what amount,
to provide incentive funding under this subsection, the
Secretary shall take into consideration actions proposed by the
State--
``(A) to implement this section;
``(B) to implement and improve residential and
commercial building energy efficiency codes; and
``(C) to promote building energy efficiency through
use of the codes.
``(3) Additional funding.--The Secretary shall provide
additional funding under this subsection for implementation of
a plan to demonstrate a rate of compliance with applicable
residential and commercial building energy efficiency codes at
a rate of not less than 90 percent, based on energy
performance--
``(A) to a State that has adopted and is
implementing, on a statewide basis--
``(i) a residential building energy
efficiency code that meets or exceeds the
requirements of the IECC (2006) (or a successor
code that is the subject of an affirmative
determination by the Secretary under subsection
(a)(2)(A)(i)); and
``(ii) a commercial building energy
efficiency code that meets or exceeds the
requirements of the ASHRAE Standard 90.1 (2004)
(or a successor standard that is the subject of
an affirmative determination by the Secretary
under subsection (a)(2)(A)(i)); or
``(B) in the case of a State in which no statewide
energy code exists for residential buildings or
commercial buildings, or in which the State code fails
to comply with subparagraph (A), to a local government
that has adopted and is implementing residential and
commercial building energy efficiency codes, as
described in subparagraph (A).
``(4) Training.--Of the amounts made available to carry out
this subsection, the Secretary may use not more than $500,000
for each State to train State and local officials to implement
State or local energy codes in accordance with a plan described
in paragraph (3).''.
SEC. 5202. CONFORMING AMENDMENT.
Section 303 of the Energy Conservation and Production Act (42
U.S.C. 6832) is amended by adding at the end the following new
paragraph:
``(17) IECC.--The term `IECC' means the International
Energy Conservation Code.''.
TITLE VI--GLOBAL EFFORT TO REDUCE GREENHOUSE GAS EMISSIONS
SEC. 6001. DEFINITIONS.
In this title:
(1) Baseline emission level.--The term ``baseline emission
level'' means, as determined by the Administrator, the total
average annual greenhouse gas emissions attributed to a
category of covered goods of a foreign country during the
period beginning on January 1, 2012, and ending on December 31,
2014, based on--
(A) relevant data available for that period; and
(B) to the extent necessary with respect to a
specific category of covered goods, economic and
engineering models and best available information on
technology performance levels for the manufacture of
that category of covered goods.
(2) Comparable action.--The term ``comparable action''
means any greenhouse gas regulatory programs, requirements, and
other measures adopted by a foreign country that, in
combination, are comparable in effect to actions carried out by
the United States to limit greenhouse gas emissions pursuant to
this Act, as determined by the President, taking into
consideration the level of economic development of the foreign
country.
(3) Compliance year.--The term ``compliance year'' means
each calendar year for which the requirements of this title
apply to a category of covered goods of a covered foreign
country that is imported into the United States.
(4) Covered foreign country.--The term ``covered foreign
country'' means a foreign country that is included on the
covered list prepared under section 6006(b)(3).
(5) Covered good.--The term ``covered good'' means a good
that (as identified by the Administrator by rule)--
(A) is a primary product;
(B) generates, in the course of the manufacture of
the good, a substantial quantity of direct greenhouse
gas emissions and indirect greenhouse gas emissions;
and
(C) is closely related to a good the cost of
production of which in the United States is affected by
a requirement of this Act.
(6) Foreign country.--The term ``foreign country'' means a
member of, or observer government to, the World Trade
Organization (WTO), other than the United States.
(7) Indirect greenhouse gas emissions.--The term ``indirect
greenhouse gas emissions'' means any emissions of a greenhouse
gas resulting from the generation of electricity that is
consumed during the manufacture of a good.
(8) International agreement.--The term ``international
agreement'' means any international agreement to which the
United States is a party, including the Marrakesh agreement
establishing the World Trade Organization, done at Marrakesh on
April 15, 1994.
(9) International reserve allowance.--The term
``international reserve allowance'' means an allowance
(denominated in units of metric tons of carbon dioxide
equivalent) that is--
(A) purchased from a special reserve of allowances
pursuant to section 6006(a)(2); and
(B) used for purposes of meeting the requirements
of section 6006.
(10) Primary product.--The term ``primary product'' means--
(A) iron, steel, aluminum, cement, bulk glass, or
paper; or
(B) any other manufactured product that--
(i) is sold in bulk for purposes of further
manufacture; and
(ii) generates, in the course of the
manufacture of the product, direct greenhouse
gas emissions and indirect greenhouse gas
emissions that are comparable (on an emissions-
per-dollar basis) to emissions generated in the
manufacture of products by covered facilities
in the industrial sector.
SEC. 6002. PURPOSES.
The purposes of this title are--
(1) to promote a strong global effort to significantly
reduce greenhouse gas emissions;
(2) to ensure, to the maximum extent practicable, that
greenhouse gas emissions occurring outside the United States do
not undermine the objectives of the United States in addressing
global climate change; and
(3) to encourage effective international action to achieve
those objectives through--
(A) agreements negotiated between the United States
and foreign countries; and
(B) measures carried out by the United States that
comply with applicable international agreements.
SEC. 6003. INTERNATIONAL NEGOTIATIONS.
(a) Finding.--Congress finds that the purposes described in section
6002 can be most effectively addressed and achieved through agreements
negotiated between the United States and foreign countries.
(b) Negotiating Objective.--
(1) Statement of policy.--It is the policy of the United
States to work proactively under the United Nations Framework
Convention on Climate Change and, in other appropriate forums,
to establish binding agreements committing all major greenhouse
gas-emitting nations to contribute equitably to the reduction
of global greenhouse gas emissions.
(2) Intent of congress regarding objective.--To the extent
that the agreements described in subsection (a) involve
measures that will affect international trade in any good or
service, it is the intent of Congress that the negotiating
objective of the United States shall be to focus multilateral
and bilateral international agreements on the reduction of
greenhouse gas emissions to advance achievement of the purposes
described in section 6002.
SEC. 6004. INTERAGENCY REVIEW.
(a) Interagency Group.--
(1) Establishment.--The President shall establish an
interagency group to carry out this section.
(2) Chairperson.--The chairperson of the interagency group
established under paragraph (1) shall be the Secretary of
State.
(3) Requirement.--The Administrator shall be a member of
the interagency group.
(b) Determinations.--
(1) In general.--Subject to paragraph (2), the interagency
group established under subsection (a)(1) shall determine
whether, and the extent to which, each foreign country has
taken comparable action to limit the greenhouse gas emissions
of the foreign country.
(2) Exemption.--The interagency group may exempt from a
determination under paragraph (1) any foreign country on the
excluded list under section 6006(b)(2).
(c) Report to President.--Not later than January 1, 2018, and
annually thereafter, the interagency group shall submit to the
President a report describing the determinations of the interagency
group under subsection (b).
SEC. 6005. PRESIDENTIAL DETERMINATIONS.
(a) In General.--Not later than January 1, 2019, and annually
thereafter, the President shall determine whether each foreign country
that is subject to interagency review under section 6004(b) has taken
comparable action to limit the greenhouse gas emissions of the foreign
country, taking into consideration--
(1) the baseline emission levels of the foreign country;
and
(2) applicable reports submitted under section 6004(c).
(b) Reports.--The President shall--
(1) submit to Congress an annual report describing the
determinations of the President under subsection (a) for the
most recent calendar year; and
(2) publish the determinations in the Federal Register.
SEC. 6006. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.
(a) Establishment.--
(1) In general.--The Administrator shall establish a
program under which the Administrator, during the 1-year period
beginning on January 1, 2019, and annually thereafter, shall
offer for sale to United States importers international reserve
allowances in accordance with this subsection.
(2) Source.--International reserve allowances under
paragraph (1) shall be issued from a special reserve of
allowances that is separate from, and established in addition
to, the quantity of allowances established under section 1201.
(3) Price.--
(A) In general.--Subject to subparagraph (B), the
Administrator shall establish, by rule, a methodology
for determining the price of international reserve
allowances for each compliance year at a level that
does not exceed the market price of allowances
established under section 1201 for the compliance year.
(B) Maximum price.--The price for an international
reserve allowance under subparagraph (A) shall not
exceed the clearing price for current compliance year
allowances established at the most recent auction of
allowances by the Corporation.
(4) Serial number.--The Administrator shall assign a unique
serial number to each international reserve allowance issued
under this subsection.
(5) Trading system.--The Administrator may establish, by
rule, a system for the sale, exchange, purchase, transfer, and
banking of international reserve allowances.
(6) Regulated entities.--International reserve allowances
may not be submitted by regulated entities to comply with the
allowance submission requirements of section 1202.
(7) Proceeds.--All proceeds from the sale of international
reserve allowances under this subsection shall be allocated to
a program that the Administrator, in coordination with the
Secretary of State, shall establish to mitigate the negative
impacts of global climate change on disadvantaged communities
in other countries.
(b) Foreign Country Lists.--
(1) In general.--Not later than January 1, 2020, and
annually thereafter, the President shall develop and publish in
the Federal Register 2 lists of foreign countries, in
accordance with this subsection.
(2) Excluded list.--
(A) In general.--The President shall identify and
publish in a list, to be known as the ``excluded
list''--
(i) each foreign country determined by the
President under section 6005(a) to have taken
action comparable to that taken by the United
States to limit the greenhouse gas emissions of
the foreign country; and
(ii) each foreign country the share of
total global greenhouse gas emissions of which
is below the de minimis percentage described in
subparagraph (B).
(B) De minimis percentage.--The de minimis
percentage referred to in subparagraph (A) is a
percentage of total global greenhouse gas emissions of
not more than 0.5, as determined by the President, for
the most recent calendar year for which emissions and
other relevant data is available, taking into
consideration, as necessary, the annual average
deforestation rate during a representative period for a
foreign country that is a developing country.
(3) Covered list.--
(A) In general.--The President shall identify and
publish in a list, to be known as the ``covered list'',
each foreign country the covered goods of which are
subject to the requirements of this section.
(B) Requirement.--The covered list shall include
each foreign country that is not included on the
excluded list under paragraph (2).
(c) Written Declarations.--
(1) In general.--Effective beginning January 1, 2020, a
United States importer of any covered good shall, as a
condition of importation or withdrawal for consumption from a
warehouse of the covered good, submit to the Administrator and
the appropriate office of the U.S. Customs and Border
Protection a written declaration with respect to each such
importation or withdrawal.
(2) Contents.--A written declaration under paragraph (1)
shall contain a statement that--
(A) the applicable covered good is accompanied by a
sufficient number of international reserve allowances,
as determined under subsection (d); or
(B) the covered good is from a foreign country on
the excluded list under subsection (b)(2).
(3) Inclusion.--A written declaration described in
paragraph (2)(A) shall include the unique serial number of each
emission allowance associated with the importation of the
applicable covered good.
(4) Failure to declare.--
(A) In general.--Except as provided in subparagraph
(B), an imported covered good that is not accompanied
by a written declaration under this subsection shall
not be permitted to enter the customs territory of the
United States.
(B) Exception for certain imports.--Subparagraph
(A) shall not apply to a covered good of a foreign
country if the President determines that--
(i) the foreign country has taken
comparable action to limit the greenhouse gas
emissions of the foreign country, in accordance
with section 6005;
(ii) the United Nations has identified the
foreign country as among the least-developed of
developing countries; or
(iii) the foreign country is on the
excluded list under subsection (b)(2).
(5) Corrected declaration.--
(A) In general.--If, after making a declaration
required under this subsection, an importer has reason
to believe that the declaration contains information
that is not correct, the importer shall provide a
corrected declaration by not later than 30 days after
the date of discovery of the error, in accordance with
subparagraph (B).
(B) Method.--A corrected declaration under
subparagraph (A) shall be in the form of a letter or
other written statement to the Administrator and the
office of the U.S. Customs and Border Protection to
which the original declaration was submitted.
(d) Quantity of Allowances Required.--
(1) Methodology.--
(A) In general.--The Administrator shall establish,
by rule, a method for calculating the required number
of international reserve allowances that a United
States importer must submit, together with a written
declaration under subsection (c), for each category of
covered goods of each covered foreign country.
(B) Formula.--The Administrator shall develop a
general formula for calculating the international
reserve allowance requirement that applies, on a per
unit basis, to each covered good of a covered foreign
country that is imported during each compliance year.
(2) Initial compliance year.--
(A) In general.--Subject to subparagraph (B), the
methodology under paragraph (1) shall establish an
international reserve allowance requirement (per unit
imported into the United States) for the initial
compliance year for each category of covered goods of
each covered foreign country that is equal to the
quotient obtained by dividing--
(i) the excess, if any, of the total
emissions from the covered foreign country that
are attributable to the category of covered
goods produced during the most recent year for
which data are available, over the baseline
emission level of the covered foreign country
for that category; and
(ii) the total quantity of the covered good
produced in the covered foreign country during
the most recent calendar year.
(B) Adjustments.--The Administrator shall adjust
the requirement under subparagraph (A)--
(i) in accordance with the ratio that--
(I) the quantity of allowances that
were allocated at no cost to entities
within the industry sector
manufacturing the covered goods for the
compliance year during which the
covered goods were imported into the
United States; bears to
(II) the greenhouse gas emissions
of that industry sector; and
(ii) to take into account the level of
economic development of the covered foreign
country in which the covered goods were
produced.
(3) Subsequent compliance years.--For each subsequent
compliance year, the Administrator shall revise, as
appropriate, the international reserve allowance requirement
applicable to each category of imported covered goods of each
covered foreign country to reflect changes in the factors
described in paragraph (2)(B).
(4) Publication.--Not later than 90 days before the
beginning of each compliance year, the Administrator shall
publish in the Federal Register a schedule describing the
required number of international reserve allowances for each
category of imported covered goods of each covered foreign
country, as calculated under this subsection.
(e) Foreign Allowances and Credits.--
(1) Foreign allowances.--
(A) In general.--A United States importer may
submit, in lieu of an international reserve allowance
issued under this section, a foreign allowance or
similar compliance instrument distributed by a foreign
country pursuant to a cap and trade program that
represents a comparable action.
(B) Commensurate cap and trade program.--For
purposes of subparagraph (A), a cap and trade program
that represents a comparable action shall include any
greenhouse gas regulatory program adopted by a covered
foreign country to limit the greenhouse gas emissions
of the covered foreign country, if the President
certifies that the program--
(i)(I) places a quantitative limitation on
the total quantity of greenhouse gas emissions
of the covered foreign country (expressed in
terms of tons emitted per calendar year); and
(II) achieves that limitation through an
allowance trading system;
(ii) satisfies such criteria as the
President may establish for requirements
relating to the enforceability of the cap and
trade program, including requirements for
monitoring, reporting, verification procedures,
and allowance tracking; and
(iii) is a comparable action.
(2) Foreign credits.--
(A) In general.--A United States importer may
submit, in lieu of an international reserve allowance
issued under this section, a foreign credit or a credit
for an international offset project that the
Administrator has authorized for use under subtitle E
of title II.
(B) Application.--The limitation on the use of
international reserve allowances by regulated entities
under subsection (a)(6) shall not apply to a United
States importer for purposes of this paragraph.
(f) Retirement of Allowances.--The Administrator shall retire each
international reserve allowance, foreign allowance, and foreign credit
submitted to achieve compliance with this section.
(g) Consistency With International Agreements.--The Administrator,
in consultation with the Secretary of State, shall adjust the
international reserve allowance requirements established under this
section (including the quantity of international reserve allowances
required for each category of covered goods of a covered foreign
country) as the Administrator determines to be necessary to ensure that
the United States complies with all applicable international
agreements.
(h) Termination.--The international reserve allowance requirements
of this section shall not apply to a covered good of a covered foreign
country in any case in which the President makes a determination
described in subsection (b)(2) with respect to the covered goods of
that covered foreign country.
(i) Final Regulations.--Not later than January 1, 2019, the
Administrator shall promulgate such regulations as the Administrator
determines to be necessary to carry out this section.
SEC. 6007. ADJUSTMENT OF INTERNATIONAL RESERVE ALLOWANCE REQUIREMENTS.
(a) In General.--Not later than January 1, 2023, and annually
thereafter, the President shall prepare and submit to Congress a report
that assesses the effectiveness of the applicable international reserve
allowance requirements under section 6006 with respect to the covered
goods of each covered foreign country.
(b) Inadequate Requirements.--If the President determines that an
applicable international reserve allowance requirement is not adequate
to achieve the purposes of this title, the President, simultaneously
with the submission of the report under subsection (a), shall--
(1) adjust the requirement; or
(2) take such other action as the President determines to
be necessary to improve the effectiveness of the requirement,
in accordance with all applicable international agreements.
(c) Effective Date.--An adjustment under subsection (b)(1) shall
take effect beginning on January 1 of the compliance year immediately
following the date on which the adjustment is made.
TITLE VII--REVIEWS AND RECOMMENDATIONS
SEC. 7001. NATIONAL ACADEMY OF SCIENCES REVIEWS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Administrator shall offer to enter into a contract
with the National Academy of Sciences under which the Academy shall,
not later than January 1, 2012, and every 3 years thereafter, submit to
Congress and the Administrator a report that includes an analysis of--
(1) the latest scientific information and data relevant to
global climate change;
(2) the performance of this Act and other policies in
reducing greenhouse gas emissions and mitigating the adverse
impacts of global climate change;
(3) the performance of this Act in ensuring that the Land
and Water Conservation Fund established under section 2 of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5)
receives funds that are sufficient to carry out the purposes of
that Fund; and
(4) the performance of this Act in ensuring that the Bureau
of Land Management and the Forest Service receive funds that
are sufficient to enable those agencies to suppress wildland
fire effectively and thereby minimize wildfire damage.
(b) Latest Scientific Information.--The analysis required under
subsection (a)(1) shall--
(1) address existing reports, including the most recent
assessment report of the Intergovernmental Panel on Climate
Change; and
(2) include a description of--
(A) trends in and projections for total United
States greenhouse gas emissions;
(B) trends in and projections for total worldwide
greenhouse gas emissions;
(C) current and projected future atmospheric
concentrations of greenhouse gases;
(D) current and projected future global average
temperature, including an analysis of whether an
increase of global average temperature in excess of 3.6
degrees Fahrenheit (2 degrees Celsius) above the
preindustrial average has occurred or is more likely
than not to occur in the foreseeable future as a result
of anthropogenic climate change;
(E) current and projected future adverse impacts of
global climate change on human populations, wildlife,
and natural resources; and
(F) trends in and projections for the health of the
oceans and ocean ecosystems, including predicted
changes in ocean acidity, temperatures, the extent of
coral reefs, and other indicators of ocean ecosystem
health, resulting from anthropogenic carbon dioxide and
climate change.
(c) Performance of This Act and Existing Technologies.--The
analysis required under subsection (a)(2) shall include a description
of--
(1) the extent to which this Act, in concert with other
policies, will prevent a dangerous increase in global average
temperature;
(2) the extent to which this Act, in concert with other
policies, will prevent dangerous atmospheric concentrations of
greenhouse gases;
(3) the current and future projected deployment of
technologies and practices that reduce or limit greenhouse gas
emissions, including--
(A) technologies for capture and disposal of
greenhouse gases;
(B) efficiency improvement technologies;
(C) zero-greenhouse gas emitting energy
technologies, including solar, wind, geothermal, and
nuclear technologies; and
(D) above- and below-ground biological
sequestration technologies;
(4) the extent to which this Act and other policies are
accelerating the development and commercial deployment of
technologies and practices that reduce and limit greenhouse gas
emissions;
(5) the extent to which the allocations and distributions
of emission allowances and auction proceeds under this Act are
advancing the purposes of this Act, and whether any of those
allocations and distributions should be modified, including by
increasing the percentage of annual Emission Allowance Account
being auctioned, to better carry out the purposes of this Act;
(6) whether the motor vehicle fuel and motor vehicle and
nonroad regulations within the scope of Executive Order 13432
(72 Fed. Reg. 27717; relating to cooperation among agencies in
protecting the environment with respect to greenhouse gas
emissions from motor vehicles, nonroad vehicles, and nonroad
engines) have been finalized and implemented by Federal
agencies and departments;
(7) whether any other transportation-related programs,
including fuel economy standard reform, greenhouse gas vehicle
emissions standards, renewable fuel volume mandates, low-carbon
fuel standards, and activities to reduce vehicle miles traveled
have been finalized and implemented by any Federal agencies or
departments;
(8) whether any regulation or program described in
paragraph (12) or (13) is expected to achieve, as compared to
the baseline greenhouse gas emissions consistent with the
reference case contained in the report of the Energy
Information Administration entitled ``Annual Energy Outlook
2006'', at a minimum--
(A) at least a 6.2-percent reduction in cumulative
greenhouse gas emissions from the light-duty motor
vehicle sector, including light-duty vehicles and
light-duty trucks, during the period beginning on
January 1, 2010, and ending on December 31, 2020; or
(B) a cumulative reduction of approximately
1,140,000 metric tons of carbon dioxide equivalent,
measured on a full fuel cycle basis;
(9) whether additional measures, including an increase in
the earned income tax credit, a reduction in payroll taxes, or
the implementation of electronic benefit transfers by State
health and human services agencies to reach low-income
individuals who are not required to file Federal income tax
returns, are needed to help low- and moderate-income
individuals respond to changes in the cost of energy-related
goods and services;
(10) the feasibility of expanding the definition of the
term ``covered facility'' under this Act;
(11) the feasibility of expanding the scope of the
compliance obligation established under section 1202(a);
(12) the feasibility of reducing the number of emission
allowances comprising the Emission Allowance Account for 1 or
more calendar years under this Act;
(13) the feasibility of establishing policies for reducing
greenhouse gas emissions over and above those policies
established by this Act;
(14) the feasibility of accelerating the commercial
deployment of existing and emerging renewable energy
technologies for electricity generation, from solar, wind,
geothermal energy, ocean energy (including tidal, wave,
current, and thermal) or biomass (as defined in section 203(b)
of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))),
utilizing a bonus emission allowance program comparable to the
program established under subtitle F of title III; and
(15) the results of a report on products manufactured with
recycled materials that--
(A) describes the greenhouse gas emission
reductions those products can achieve;
(B) summarizes and assesses the results of research
on manufactured products and scrap recycling
activities; and
(C) evaluates the lifecycle greenhouse gas emission
reduction and other benefits and issues associated
with--
(i) recycling scrap metal (including end-
of-life vehicles), recovered fiber (or paper),
scrap electronics, scrap glass, scrap plastics,
scrap rubber, scrap tires, and scrap textiles
with respect to reduction or avoidance of
greenhouse gas to the environment;
(ii) using recyclable materials in
manufactured products;
(iii) designing and manufacturing products
that increase recyclable output;
(iv) eliminating or reducing the use of
substances and materials in products that
decrease recyclable output; and
(v) establishing a standardized system for
lifecycle greenhouse gas emission reduction
measurement and certification for the
manufactured products and scrap recycling
sectors, including the potential options for
the structure and operation of such a system.
SEC. 7002. ENVIRONMENTAL PROTECTION AGENCY REVIEW.
Not later than January 1, 2012, the Administrator shall submit to
Congress a report indicating--
(1) the latest scientific information and data relevant to
the health effects of mercury emissions from coal-fired
electric power generating facilities;
(2) the state of the technology designed to reduce mercury
emissions from coal combustion, including the efficacy of the
technology with respect to each coal type; and
(3) the extent to which the implementation of this Act is
assisting in bringing concentrations of particulate matter and
ozone into line with National Ambient Air Quality Standards.
SEC. 7003. ENVIRONMENTAL PROTECTION AGENCY RECOMMENDATIONS.
(a) Review.--Not later than January 1, 2013, and every 3 years
thereafter, the Administrator shall submit to Congress recommendations
for action in response to the most recent report submitted by the
National Academy of Sciences under section 7001 and the report
submitted by the Administrator under section 7002.
(b) Categories of Action.--The categories of action eligible for
inclusion in the recommendations submitted under subsection (a) include
proposed legislation recommending--
(1) expansion of the definition of the term ``covered
facility'' under this Act;
(2) expansion of the scope of the compliance obligation
established under section 1202;
(3) adjustment of the number of emission allowances
comprising the Emission Allowance Account for 1 or more
calendar years under this Act;
(4) establishment of policies for reducing greenhouse gas
emissions over and above those policies established under this
Act;
(5) establishment of policies for reducing nationwide
emissions into the atmosphere of sulfur dioxide, nitrogen
oxides, and mercury in excess of the reductions resulting from
the implementation of this Act; and
(6) establishment of a program, similar to the program
established under subtitle F of title III, for distributing
bonus emission allowances in order to accelerate the commercial
deployment of existing and emerging renewable energy
technologies for electricity generation.
(c) Consistency With Reviews.--The Administrator shall include with
each submission of recommendations under subsection (a) an explanation
of any inconsistencies between the recommendations and the reviews
submitted by the National Academy of Sciences under section 7001 and
the report submitted by the Administrator under section 7002.
(d) Savings Clause.--Nothing in this title limits, procedurally
affects, or otherwise restricts the authority of the Administrator, a
State, or any person to use authorities under this Act or any other law
to adopt or enforce any rule.
SEC. 7004. PRESIDENTIAL RECOMMENDATIONS.
(a) Establishment of the Interagency Climate Change Task Force.--
Not later than January 1, 2019, the President shall establish an
Interagency Climate Change Task Force.
(b) Composition.--The members of the Interagency Climate Change
Task Force shall be--
(1) the Administrator;
(2) the Secretary of Energy;
(3) the Secretary of the Treasury;
(4) the Secretary of Commerce; and
(5) such other Cabinet Secretaries as the President may
name to the membership of the Task Force.
(c) Chairman.--The Administrator shall act as Chairman of the
Interagency Climate Change Task Force.
(d) Report to President.--
(1) In general.--Not later than April 1, 2019, the Task
Force shall make public and submit to the President a consensus
report making recommendations, including specific legislation
for the President to recommend to Congress.
(2) Basis.--The report shall be based on the third set of
recommendations submitted by the Administrator to Congress
under section 7003.
(3) Inclusions.--The Task Force shall include with the
consensus report an explanation of any inconsistencies between
the consensus report and the third set of recommendations
submitted by the Administrator to Congress under section 7003.
(e) Presidential Recommendation to Congress.--Not later than July
1, 2020, the President shall submit to Congress the text of a proposed
Act based on the consensus report submitted to the President under
subsection (d).
SEC. 7005. ADAPTATION ASSESSMENTS AND PLAN.
(a) Regional Estimates.--
(1) Estimates.--
(A) In general.--The Administrator, in consultation
with the officials described in paragraph (2) and
relevant State agencies, shall conduct 6 regional
infrastructure cost assessments in various regions of
the United States, and a national cost assessment, to
provide estimates of the range of costs that should be
anticipated for adaptation to the impacts of climate
change.
(B) Various probabilities.--The Administrator shall
develop the estimates under subparagraph (A) for low,
medium, and high probabilities of climate change and
the potential impacts of climate change.
(2) Description of officials.--The officials referred to in
paragraph (1) are--
(A) the Secretary of Agriculture;
(B) the Secretary of Commerce;
(C) the Secretary of Defense;
(D) the Secretary of Energy;
(E) the Secretary of Health and Human Services;
(F) the Secretary of Homeland Security;
(G) the Secretary of Housing and Urban Development;
(H) the Secretary of the Interior;
(I) the Secretary of Transportation;
(J) the Director of United States Geological
Survey; and
(K) the heads of such other Federal agencies and
departments as the Administrator determines to be
necessary.
(3) Submission to congress.--Not later than 1 year after
the date of enactment of this Act, the Administrator shall
submit to Congress a report describing the results of the
assessments conducted under this subsection.
(b) Adaptation Plan.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall submit to
Congress a climate change adaptation plan for the United
States, based on--
(A) assessments performed by the United Nations
Intergovernmental Panel on Climate Change in accordance
with the Global Change Research Act of 1990 (15 U.S.C.
2921 et seq.); and
(B) any other assessment prepared by a Federal,
regional, State, or local government entity that is--
(i) scientific;
(ii) peer-reviewed; or
(iii) subjected to public comment.
(2) Inclusions.--The adaptation plan under paragraph (1)
shall include--
(A) a prioritized list of vulnerable systems and
regions in the United States;
(B) requirements for coordination between Federal,
State, and local governments to ensure that key public
infrastructure, safety, health, and land use planning
and control issues are addressed;
(C) requirements for coordination among the Federal
Government, industry, and communities;
(D) requirements for management of climate change,
including the need for information derived from
inundation prediction systems on the impacts to coastal
communities;
(E) an assessment of climate change science
research needs, including probabilistic assessments as
an aid to planning;
(F) an assessment of climate change technology
needs; and
(G) regional and national cost assessments for the
range of costs that should be anticipated for adapting
to the impacts of climate change.
(c) Impacts of Climate Change on Low-Income Populations.--
(1) In general.--The Administrator shall conduct research
on the impact of climate change on low-income populations in
all countries, including--
(A) an assessment of the adverse impact of climate
change on--
(i) low-income populations in the United
States; and
(ii) developing countries;
(B)(i) an identification of appropriate climate
change adaptation measures and programs for developing
countries and low-income populations;
(ii) an assessment of the impact of the measures
and programs on low-income populations; and
(C) an estimate of the costs of developing and
implementing those climate change adaptation and
mitigation programs.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to
Congress a report describing the results of the research
conducted under paragraph (1).
SEC. 7006. STUDY BY ADMINISTRATOR OF AVIATION SECTOR GREENHOUSE GAS
EMISSIONS.
(a) In General.--The Administrator shall enter into an agreement
with the National Academy of Sciences under which the Academy shall
conduct a study on greenhouse gas emissions associated with the
aviation industry, including--
(1) a determination of appropriate data necessary to make
determinations of emission inventories, considering fuel use,
airport operations, ground equipment, and all other sources of
emissions in the aviation industry;
(2) an estimate of projected industry emissions for the
following 5-year, 20-year, and 50-year periods;
(3) based on existing literature, research and surveys to
determine the existing best practices for emission reduction in
the aviation sector;
(4) recommendations on areas of focus for additional
research for technologies and operations with the highest
potential to reduce emissions; and
(5) recommendations of actions that the Federal Government
could take to encourage or require additional emissions
reductions.
(b) Consultation.--In developing the parameters of the study under
this section, the Administrator shall conduct the study under this
section in consultation with--
(1) the Secretary of Transportation, acting through the
Administrator of the Federal Aviation Administration; and
(2) other appropriate Federal agencies and departments.
TITLE VIII--FRAMEWORK FOR GEOLOGICAL SEQUESTRATION OF CARBON DIOXIDE
SEC. 8001. NATIONAL DRINKING WATER REGULATIONS.
(a) In General.--Section 1421 of the Safe Drinking Water Act (42
U.S.C. 300h) is amended--
(1) in subsection (b)(1), by striking ``subsection (d)(2)''
and inserting ``subsection (e)(2)'';
(2) by redesignating subsection (d) as subsection (e); and
(3) by inserting after subsection (c) the following:
``(d) Carbon Dioxide.--
``(1) Regulations.--Not later than 1 year after the date of
enactment of the Lieberman-Warner Climate Security Act of 2007,
the Administrator shall promulgate regulations for permitting
commercial-scale underground injection of carbon dioxide for
purposes of geological sequestration to address climate change,
including provisions--
``(A) for monitoring and controlling the long-term
storage of carbon dioxide and avoiding, to the maximum
extent practicable, any release of carbon dioxide into
the atmosphere, and for ensuring protection of
underground sources of drinking water, human health,
and the environment; and
``(B) relating to long-term liability associated
with commercial-scale geological sequestration.
``(2) Subsequent reports.--Not later than 5 years after the
date on which regulations are promulgated pursuant to paragraph
(1), and not less frequently than once every 5 years
thereafter, the Administrator shall submit to Congress a report
that contains an evaluation of the effectiveness of the
regulations, based on current knowledge and experience, with
particular emphasis on any new information on potential impacts
of commercial-scale geological sequestration on drinking water,
human health, and the environment.
``(3) Revision.--If the Administrator determines, based on
a report under paragraph (2), that regulations promulgated
pursuant to paragraph (1) require revision, the Administrator
shall promulgate revised regulations not later than 1 year
after the date on which the applicable report is submitted to
Congress under paragraph (2).''.
(b) Conforming Amendment.--Section 1447(a)(4) of the Safe Drinking
Water Act (42 U.S.C. 300j-6(a)(4)) is amended by striking ``section
1421(d)(2)'' and inserting ``section 1421(e)(2)''.
SEC. 8002. ASSESSMENT OF GEOLOGICAL STORAGE CAPACITY FOR CARBON
DIOXIDE.
(a) Definitions.--In this section:
(1) Assessment.--The term ``assessment'' means the national
assessment of capacity for carbon dioxide completed under
subsection (f).
(2) Capacity.--The term ``capacity'' means the portion of a
storage formation that can retain carbon dioxide in accordance
with the requirements (including physical, geological, and
economic requirements) established under the methodology
developed under subsection (b).
(3) Engineered hazard.--The term ``engineered hazard''
includes the location and completion history of any well that
could affect a storage formation or capacity.
(4) Risk.--The term ``risk'' includes any risk posed by a
geomechanical, geochemical, hydrogeological, structural, or
engineered hazard.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(6) Storage formation.--The term ``storage formation''
means a deep saline formation, unmineable coal seam, oil or gas
reservoir, or other geological formation that is capable of
accommodating a volume of industrial carbon dioxide.
(b) Methodology.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall develop a methodology for conducting
an assessment under subsection (f), taking into consideration--
(1) the geographical extent of all potential storage
formations in all States;
(2) the capacity of the potential storage formations;
(3) the injectivity of the potential storage formations;
(4) an estimate of potential volumes of oil and gas
recoverable by injection and storage of industrial carbon
dioxide in potential storage formations;
(5) the risk associated with the potential storage
formations; and
(6) the work performed to develop the Carbon Sequestration
Atlas of the United States and Canada completed by the
Department of Energy in April 2006.
(c) Coordination.--
(1) Federal coordination.--
(A) Consultation.--The Secretary shall consult with
the Secretary of Energy and the Administrator regarding
data sharing and the format, development of
methodology, and content of the assessment to ensure
the maximum usefulness and success of the assessment.
(B) Cooperation.--The Secretary of Energy and the
Administrator shall cooperate with the Secretary to
ensure, to the maximum extent practicable, the
usefulness and success of the assessment.
(2) State coordination.--The Secretary shall consult with
State geological surveys and other relevant entities to ensure,
to the maximum extent practicable, the usefulness and success
of the assessment.
(d) External Review and Publication.--On completion of the
methodology under subsection (b), the Secretary shall--
(1) publish the methodology and solicit comments from the
public and the heads of affected Federal and State agencies;
(2) establish a panel of individuals with expertise in the
matters described in paragraphs (1) through (5) of subsection
(b) composed, as appropriate, of representatives of Federal
agencies, institutions of higher education, nongovernmental
organizations, State organizations, industry, and international
geosciences organizations to review the methodology and
comments received under paragraph (1); and
(3) on completion of the review under paragraph (2),
publish in the Federal Register the revised final methodology.
(e) Periodic Updates.--The methodology developed under this section
shall be updated periodically (including not less frequently than once
every 5 years) to incorporate new data as the data becomes available.
(f) National Assessment.--
(1) In general.--Not later than 2 years after the date of
publication of the methodology under subsection (d)(3), the
Secretary, in consultation with the Secretary of Energy and
State geological surveys, shall complete a national assessment
of the capacity for carbon dioxide storage in accordance with
the methodology.
(2) Geological verification.--As part of the assessment,
the Secretary shall carry out a characterization program to
supplement the geological data relevant to determining storage
capacity in carbon dioxide in geological storage formations,
including--
(A) well log data;
(B) core data; and
(C) fluid sample data.
(3) Partnership with other drilling programs.--As part of
the drilling characterization under paragraph (2), the
Secretary shall enter into partnerships, as appropriate, with
other entities to collect and integrate data from other
drilling programs relevant to the storage of carbon dioxide in
geologic formations.
(4) Incorporation into natcarb.--
(A) In general.--On completion of the assessment,
the Secretary shall incorporate the results of the
assessment using, to the maximum extent practicable--
(i) the NatCarb database; or
(ii) a new database developed by the
Secretary, as the Secretary determines to be
necessary.
(B) Ranking.--The database shall include the data
necessary to rank potential storage sites--
(i) for capacity and risk;
(ii) across the United States;
(iii) within each State;
(iv) by formation; and
(v) within each basin.
(5) Report.--Not later than 180 days after the date on
which the assessment is completed, the Secretary shall submit
to the Committee on Energy and Natural Resources of the Senate
and the Committee on Science and Technology of the House of
Representatives a report describing the results of the
assessment.
(6) Periodic updates.--The assessment shall be updated
periodically (including not less frequently than once every 5
years) as necessary to support public and private sector
decisionmaking, as determined by the Secretary.
SEC. 8003. STUDY OF THE FEASIBILITY RELATING TO CONSTRUCTION OF
PIPELINES AND GEOLOGICAL CARBON DIOXIDE SEQUESTRATION
ACTIVITIES.
(a) In General.--The Secretary of Energy, in coordination with the
Administrator, the Federal Energy Regulatory Commission, the Secretary
of Transportation, and the Secretary of the Interior, shall conduct a
study to assess the feasibility of the construction of--
(1) pipelines to be used for the transportation of carbon
dioxide for the purpose of sequestration or enhanced oil
recovery; and
(2) geological carbon dioxide sequestration facilities.
(b) Scope.--The study shall consider--
(1) any barrier or potential barrier in existence as of the
date of enactment of this Act, including any technical, siting,
financing, or regulatory barrier, relating to--
(A) the construction of pipelines to be used for
the transportation of carbon dioxide for the purpose of
sequestration or enhanced oil recovery; or
(B) the geological sequestration of carbon dioxide;
(2) any market risk (including throughput risk) relating
to--
(A) the construction of pipelines to be used for
the transportation of carbon dioxide for the purpose of
sequestration or enhanced oil recovery; or
(B) the geological sequestration of carbon dioxide;
(3) any regulatory, financing, or siting option that, as
determined by the Secretary of Energy, would--
(A) mitigate any market risk described in paragraph
(2); or
(B) help ensure the construction of pipelines
dedicated to the transportation of carbon dioxide for
the purpose of sequestration or enhanced oil recovery;
(4) the means by which to ensure the safe handling and
transportation of carbon dioxide;
(5) any preventive measure to ensure the integration of
pipelines to be used for the transportation of carbon dioxide
for the purpose of sequestration or enhanced oil recovery; and
(6) any other appropriate use, as determined by the
Secretary of Energy, in coordination with the Administrator,
the Federal Energy Regulatory Commission, the Secretary of
Transportation, and the Secretary of the Interior.
(c) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary of Energy shall submit to the Congress a report
describing the results of the study.
SEC. 8004. LIABILITIES FOR CLOSED GEOLOGICAL STORAGE SITES.
(a) Establishment of Task Force.--As soon as practicable after the
date of enactment of this Act, the Administrator shall establish a task
force, to be composed of an equal number of stakeholders, the public,
subject matter experts, and members of the private sector, to conduct a
study of the legal framework, environmental and safety considerations,
and cost implications of potential Federal assumption of liability with
respect to closed geological storage sites.
(b) Report.--Not later than 18 months after the date of enactment
of this Act, the task force established under subsection (a) shall
submit to Congress a report describing the results of the study
conducted under subsection (a), including recommendations of the task
force, if any, with respect to the framework described in that
subsection.
TITLE IX--MISCELLANEOUS
SEC. 9001. PARAMOUNT INTEREST WAIVER.
(a) In General.--If the President determines that a national
security emergency exists and, in light of information that was not
available as of the date of enactment of this Act, it is in the
paramount interest of the United States to modify any requirement under
this Act to minimize the effects of the emergency, the President may,
after opportunity for public notice and comment, temporarily adjust,
suspend, or waive any regulations promulgated pursuant to this Act to
achieve that minimization.
(b) Consultation.--In making an emergency determination under
subsection (a), the President shall, to the maximum extent practicable,
consult with and take into account any advice received from--
(1) the National Academy of Sciences;
(2) the Secretary of Energy; and
(3) the Administrator.
(c) Judicial Review.--An emergency determination under subsection
(a) shall be subject to judicial review in accordance with section 307
of the Clean Air Act (42 U.S.C. 7607).
SEC. 9002. ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW.
(a) Rulemaking Procedures.--Any rule, requirement, regulation,
method, standard, program, determination, or final action made or
promulgated pursuant to any title of this Act, with the exception of
sections 3101, 3102, 3201, and 3901, shall be subject to the rulemaking
procedures described in sections 551 through 557 of title 5, United
States Code.
(b) Enforcement.--Each provision of this Act (including provisions
relating to mandatory duties of the Administrator) shall be fully
enforceable pursuant to sections 113, 303, and 304 of the Clean Air Act
(42 U.S.C. 7413, 7603, 7604).
(c) Recordkeeping, Inspections, Monitoring, Entry, and Subpoenas.--
The Administrator shall have the same powers and authority provided
under sections 114 and 307(a) of the Clean Air Act (42 U.S.C. 7414,
7607(a)) in carrying out, administering, and enforcing this Act.
(d) Judicial Review.--A petition for judicial review of any
regulation promulgated, or final action carried out, by the
Administrator pursuant to this Act may be filed only--
(1) in the United States Court of Appeals for the District
of Columbia; and
(2) in accordance with section 307(b) of the Clean Air Act
(42 U.S.C. 7607(b)).
SEC. 9003. RETENTION OF STATE AUTHORITY.
(a) In General.--Except as provided in subsection (b), in
accordance with section 116 of the Clean Air Act (42 U.S.C. 7416) and
section 510 of the Federal Water Pollution Control Act (33 U.S.C.
1370), nothing in this Act precludes or abrogates the right of any
State to adopt or enforce--
(1) any standard, cap, limitation, or prohibition relating
to emissions of greenhouse gas; or
(2) any requirement relating to control, abatement, or
avoidance of emissions of greenhouse gas.
(b) Exception.--Notwithstanding subsection (a), no State may adopt
a standard, cap, limitation, prohibition, or requirement that is less
stringent than the applicable standard, cap, limitation, prohibition,
or requirement under this Act.
SEC. 9004. TRIBAL AUTHORITY.
For purposes of this Act, the Administrator may treat any federally
recognized Indian tribe as a State, in accordance with section 301(d)
of the Clean Air Act (42 U.S.C. 7601(d)).
SEC. 9005. ROCKY MOUNTAIN CENTERS FOR STUDY OF COAL UTILIZATION.
(a) Designation.--The University of Wyoming and Montana State
University shall be known and designated as the ``Rocky Mountain
Centers for the Study of Coal Utilization''.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 9006. SUN GRANT CENTER RESEARCH ON COMPLIANCE WITH CLEAN AIR ACT.
(a) Designation.--Each sun grant center is designated as a research
institution of the Environmental Protection Agency for the purpose of
conducting studies regarding the effects of biofuels and biomass on
national and regional compliance with the Clean Air Act (42 U.S.C. 7401
et seq.).
(b) Funding.--The Administrator shall provide to the sun grant
centers such funds as the Administrator determines to be necessary to
carry out studies described in subsection (a).
(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 9007. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this Act.
TITLE X--CONTROL OF HYDROFLUOROCARBON CONSUMPTION
SEC. 10001. APPLICABILITY.
For purposes of this Act, it shall be unlawful for any person to
produce or import for consumption in the United States any
hydrofluorocarbon, or product or equipment containing a
hydrofluorocarbon, except exclusively in accordance with this title and
the regulations promulgated by the Administrator pursuant to this
title.
SEC. 10002. DEFINITIONS.
In this title:
(1) Baseline.--The term ``baseline'' means the global
warming potential-weighted equivalent of 300,000,000 metric
tons of carbon dioxide.
(2) Entity; person.--The terms ``entity'' and ``person''
have the meaning given the term ``person'' in section 551 of
title 5, United States Code.
(3) Global warming potential.--
(A) In general.--The term ``global warming
potential'' means the potential contribution to global
warming of a hydrofluorocarbon, as compared to the
potential contribution to global warming of an equal
weight of carbon dioxide.
(B) Calculation.--For the purposes of calculating
the global warming potential of a hydrofluorocarbon,
the values for the 100-year time horizon in the fourth
assessment report of the Intergovernmental Panel on
Climate Change shall be used.
(4) Global warming potential-weighted.--The term ``global
warming potential-weighted'', with respect to a
hydrofluorocarbon, means the value equal to the product
obtained, for purposes of determining the quantity of carbon
dioxide with an equivalent global warming potential, by
multiplying--
(A) a certain quantity of the hydrofluorocarbon;
and
(B) the global warming potential of the
hydrofluorocarbon.
(5) Hydrochlorofluorocarbon.--The term
``hydrochlorofluorocarbon'' means any hydrochlorofluorocarbon
identified in section 602(b) of the Clean Air Act (42 U.S.C.
7671a(b)).
(6) Hydrofluorocarbon.--The term ``hydrofluorocarbon''
means a hydrofluoroalkane.
(7) Hydrofluorocarbon consumption.--
(A) In general.--The term ``hydrofluorocarbon
consumption'', with respect to a hydrofluorocarbon,
means--
(i) in the case of a hydrofluorocarbon
producer, a value equal to the difference
between--
(I) a value equal to the sum of--
(aa) the quantity of the
hydrofluorocarbon produced in
the United States; and
(bb) the quantity of the
hydrofluorocarbon imported from
any source into the United
States or acquired in the
United States from another
hydrofluorocarbon producer
through sale or other
transaction; and
(II) the quantity of the
hydrofluorocarbon exported or
transferred to another
hydrofluorocarbon producer or importer
in the United States through sale or
other transaction; and
(ii) in the case of a hydrofluorocarbon
importer, a value equal to the difference
between--
(I) the quantity of the
hydrofluorocarbon imported from any
source into the United States; and
(II) the quantity of the
hydrofluorocarbon exported.
(B) Exclusion.--The term ``hydrofluorocarbon
consumption'' does not include a quantity of
hydrofluorocarbon that is recycled.
(8) Hydrofluorocarbon consumption allowance.--The term
``hydrofluorocarbon consumption allowance'' means an
authorization--
(A) to produce or import a global warming
potential-weighted quantity of hydrofluorocarbon
equivalent to 1 metric ton of carbon dioxide; or
(B) to import products or equipment containing a
quantity of hydrofluorocarbon equivalent in global
warming potential to 1 metric ton of carbon dioxide.
(9) Hydrofluorocarbon destruction.--The term
``hydrofluorocarbon destruction'' means a process that results
in the permanent transformation or decomposition of all or a
significant portion of a hydrofluorocarbon to another gas,
liquid, or solid with a lower or zero global warming potential.
(10) Hydrofluorocarbon destruction allowance.--The term
``hydrofluorocarbon destruction allowance'' means an
authorization to produce or import a global warming potential-
weighted quantity of hydrofluorocarbon equal to the global
warming potential-weighted quantity of hydrofluorocarbon
destroyed pursuant to section 10010.
(11) Hydrofluorocarbon importer.--The term
``hydrofluorocarbon importer'' means an entity that imported
hydrofluorocarbon or products or equipment containing
hydrofluorocarbon into the United States during calendar year
2005.
(12) Hydrofluorocarbon producer.--The term
``hydrofluorocarbon producer'' means an entity that produced
hydrofluorocarbon in the United States for sale in the United
States during calendar year 2005.
(13) Import.--The term ``import'' means the action of
landing on or bringing or introducing a product into, or
attempting to land on or bring or introduce a product into, any
area subject to the jurisdiction of the United States,
regardless of whether the action constitutes an importation
within the meaning of the customs laws of the United States.
(14) Produce; production.--
(A) In general.--The terms ``produce'' and
``production'' mean the manufacture of a
hydrofluorocarbon from any raw material, feedstock, or
chemical.
(B) Exclusions.--The terms ``produce'' and
``production'' do not include--
(i) the manufacture of a hydrofluorocarbon
that is used and entirely consumed (except for
trace quantities) in the manufacture of other
chemicals or products; or
(ii) the reuse or recycling of a
hydrofluorocarbon.
(15) Recycle; reuse.--The terms ``reuse'' and ``recycle''
mean--
(A) the removal of a quantity of hydrofluorocarbon
from a product or equipment;
(B) the reprocessing of the product or equipment to
remove impurities; and
(C) the offering of the product or equipment for
sale in the United States.
SEC. 10003. CAP ON HYDROFLUOROCARBON CONSUMPTION AND IMPORTATION INTO
UNITED STATES.
(a) Establishment.--The Administrator shall establish a cap on
hydrofluorocarbon consumption in the United States for each calendar
year during the period of calendar years 2010 through 2050, as directed
in section 10004 that shall not be exceeded except as provided in
section 10009.
(b) Prohibition.--Consumption of a hydrofluorocarbon or products or
equipment containing any hydrofluorocarbon, except as provided in this
title, shall be illegal.
SEC. 10004. HYDROFLUOROCARBON CONSUMPTION ALLOWANCE ACCOUNT.
(a) Allowance Account.--
(1) Establishment.--Not later than April 1, 2009, and
annually thereafter through April 1, 2050, the Administrator
shall establish and allocate a separate quantity of
hydrofluorocarbon consumption allowances.
(2) Denomination.--Hydrofluorocarbon consumption allowances
shall be denominated in metric tons of carbon dioxide
equivalent.
(b) Identification Numbers.--The Administrator shall assign to each
hydrofluorocarbon consumption allowance established under subsection
(a) a unique identification number that includes the calendar year for
which the hydrofluorocarbon consumption allowance was assigned.
(c) Legal Status of Hydrofluorocarbon Consumption Allowances.--
(1) In general.--A consumption allowance allocated under
this title is a limited authorization to produce or import a
hydrofluorocarbon and any product or equipment containing a
hydrofluorocarbon, in accordance with this title.
(2) Allowance not property right.--A hydrofluorocarbon
consumption allowance does not constitute a property right.
(3) Termination or limitation.--Nothing in this Act or any
other provision of law limits the authority of the United
States to terminate or limit hydrofluorocarbon consumption
allowances.
(4) Effect of act.--Nothing in this Act relating to
hydrofluorocarbon consumption allowances shall affect the
application of, or any requirement of compliance with, any
other provision of law by any person.
(d) Lifetime of Hydrofluorocarbon Consumption Allowances.--
Hydrofluorocarbon consumption allowances distributed by the
Administrator and hydrofluorocarbon destruction allowances may be used
for compliance for a period of not more than 5 years after the calendar
year for which the allowances are allocated.
(e) Hydrofluorocarbon Consumption Allowances for Each Calendar
Year.--The number of hydrofluorocarbon consumption allowances
established and allocated by the Administrator for each of calendar
years 2010 through 2050 shall be as follows:
Calendar year HFC consumption allowances (in
million metric tons)
2010................................. 300
2011................................. 294
2012................................. 289
2013................................. 283
2014................................. 278
2015................................. 272
2016................................. 267
2017................................. 261
2018................................. 256
2019................................. 250
2020................................. 245
2021................................. 239
2022................................. 234
2023................................. 228
2024................................. 222
2025................................. 217
2026................................. 206
2027................................. 195
2028................................. 184
2029................................. 173
2030................................. 162
2031................................. 150
2032................................. 139
2033................................. 128
2034................................. 117
2035................................. 106
2036................................. 95
2037................................. 90
2038................................. 90
2039................................. 90
2040................................. 90
2041................................. 90
2042................................. 90
2043................................. 90
2044................................. 90
2045................................. 90
2046................................. 90
2047................................. 90
2048................................. 90
2049................................. 90
2050................................. 90
SEC. 10005. ALLOCATION OF HYDROFLUOROCARBON CONSUMPTION ALLOWANCES.
(a) In General.--Not later than 90 days before the beginning of
each applicable calendar year, the Administrator shall allocate the
portion of the hydrofluorocarbon consumption allowances in the
hydrofluorocarbon consumption allowance account that is available for
allocation for that calendar year.
(b) Eligible Entities.--
(1) In general.--The Administrator shall allocate
hydrofluorocarbon consumption allowances as described in
paragraph (2) to entities that--
(A) were hydrofluorocarbon producers or
hydrofluorocarbon importers during the period beginning
on January 1, 2004, and ending on December 31, 2006;
and
(B) are hydrofluorocarbon producers or
hydrofluorocarbon importers on the date of enactment of
this Act.
(2) Description of allocation.--Hydrofluorocarbon
consumption allowances shall be allocated to entities described
in paragraph (1) as follows:
(A) Hydrofluorocarbon producers.--Each
hydrofluorocarbon producer shall receive a quantity of
hydrofluorocarbon allowances equal to the ratio that--
(i) a value equal to the difference
between--
(I) the global warming potential-
weighted average of 100 percent of the
hydrofluorocarbon and 60 percent of the
hydrochlorofluorocarbon produced in the
United States, imported into the United
States, or acquired in the United
States by the hydrofluorocarbon
producer during the period beginning on
January 1, 2004, and ending on December
31, 2006; and
(II) the global warming potential-
weighted average of 100 percent of the
hydrofluorocarbon and 60 percent of the
hydrochlorofluorocarbon that the
producer exported or transferred to
another producer of hydrofluorocarbons
in the United States during the period
described in subclause (I); bears to
(ii) a value equal to the difference
between--
(I) the total global warming
potential-weighted average of 100
percent of the hydrofluorocarbon and 60
per cent of the hydrochlorofluorocarbon
produced in or imported into the United
States during the period described in
clause (i)(I); and
(II) the global warming potential-
weighted average of 100 percent of the
hydrofluorocarbon and 60 per cent of
the hydrochlorofluorocarbon exported
from the United States during that
period.
(B) Hydrofluorocarbon importers.--Each
hydrofluorocarbon importer shall receive a quantity of
hydrofluorocarbon allowances equal to the ratio that--
(i) the global warming potential-weighted
average of 100 percent of hydrofluorocarbon and
60 percent of hydrochlorofluorocarbon imported
by the hydrofluorocarbon importer as a product
or contained in equipment during the period
beginning on January 1, 2004, and ending on
December 31, 2006; bears to
(ii) a value equal to the difference
between--
(I) the total global warming
potential-weighted average of 100
percent of the hydrofluorocarbon and 60
per cent of the hydrochlorofluorocarbon
produced in and imported into the
United States during the period
described in clause (i); and
(II) the global warming potential-
weighted average of 100 percent of the
hydrofluorocarbon and 60 per cent of
the hydrochlorofluorocarbon exported
from the United States during that
period.
(c) Withholding Allowances.--
(1) In general.--For calendar year 2010 and each calendar
year thereafter, the Administrator shall withhold a quantity of
hydrofluorocarbon consumption allowances that would otherwise
be allocated under subsection (b) for auction at least annually
by the Corporation to the entities identified in subsection
(b)(1).
(2) Auctions by corporation.--For each applicable calendar
year, the Administrator shall withhold, and the Corporation
shall auction to the entities identified in subsection (b)(1),
the following quantities of the hydrofluorocarbon consumption
allowances established under section 10004:
Calendar year Percent withheld for auction
2010................................. 5
2011................................. 10
2012................................. 10
2013................................. 10
2014................................. 15
2015................................. 20
2016................................. 25
2017................................. 30
2018................................. 35
2019................................. 40
2020................................. 45
2021................................. 50
2022................................. 55
2023................................. 60
2024................................. 65
2025................................. 70
2026................................. 75
2027................................. 80
2028................................. 85
2029................................. 90
2030................................. 95
2031................................. 100
2032................................. 100
2033................................. 100
2034................................. 100
2035................................. 100
2036................................. 100
2037................................. 100
2038................................. 100
2039................................. 100
2040................................. 100
2041................................. 100
2042................................. 100
2043................................. 100
2044................................. 100
2045................................. 100
2046................................. 100
2047................................. 100
2048................................. 100
2049................................. 100
2050................................. 100
(3) Proceeds.--The Corporation shall award the proceeds of
the auction to support the following purposes:
(A) A program to recover and destroy the maximum
economically recoverable chlorofluorocarbons, halons,
and other substances listed under title VI of the Clean
Air Act (42 U.S.C. 7671 et seq.) that have significant
ozone depletion potential and global warming potential.
(B) A program of incentives for consumer purchases
of refrigeration and cooling equipment that--
(i) contains refrigerants with no or low
global warming potential; and
(ii) achieves energy efficiency that
represents at least a 30 percent improvement,
as compared to the more efficient of--
(I) the applicable Federal energy
efficiency standard; and
(II) the applicable Energy Star
rating.
(C) A program to support the development and
deployment of--
(i) hydrofluorocarbons with low global
warming potential; and
(ii) energy efficient technologies,
equipment, and products containing or using
hydrofluorocarbons.
(D) The programs receiving auction proceeds under
title IV.
SEC. 10006. COMPLIANCE OBLIGATION.
(a) Submission of Allowances.--
(1) In general.--Not later than 90 days after the end of
each applicable calendar year, a hydrofluorocarbon producer or
hydrofluorocarbon importer shall submit to the Administrator a
quantity of hydrofluorocarbon consumption allowances, or
hydrofluorocarbon destruction allowances awarded pursuant to
section 10010, equal to the total number of global warming
potential-weighted tons of hydrofluorocarbon consumed in the
United States during the preceding calendar year by the
hydrofluorocarbon producer or hydrofluorocarbon importer, as
determined in accordance with paragraphs (2) and (3).
(2) Hydrofluorocarbon producers.--For hydrofluorocarbon
producers, the quantity of hydrofluorocarbon consumed shall be
a value equal to the difference between--
(A) the global warming potential-weighted tons of
hydrofluorocarbon produced in the United States,
imported as a product, or acquired in the United States
from another hydrofluorocarbon producer through sale or
other transaction; and
(B) the global warming potential-weighted tons of
hydrofluorocarbon the producer exported or transferred
to another hydrofluorocarbon producer in the United
States through sale or other transaction.
(3) Hydrofluorocarbon importers.--For hydrofluorocarbon
importers, hydrofluorocarbon consumed shall be a value equal to
the global warming potential-weighted tons of hydrofluorocarbon
imported by the hydrofluorocarbon importer as a product or
contained in equipment, or acquired in the United States from a
hydrofluorocarbon producer through sale or other transaction.
(b) Retirement.--Immediately on receipt of a hydrofluorocarbon
consumption allowance or a hydrofluorocarbon destruction allowance
under subsection (a), the Administrator shall retire the allowance.
(c) Determination of Compliance.--Not later than July 1 of each
year, the Administrator shall--
(1) determine whether each hydrofluorocarbon producer and
hydrofluorocarbon importer achieved compliance with subsection
(a) for the preceding year; and
(2) so notify each hydrofluorocarbon producer and
hydrofluorocarbon importer.
(d) Penalties.--A hydrofluorocarbon producer or hydrofluorocarbon
importer that is not in compliance with subsection (a), as determined
under subsection (c), shall be liable for the payment of an excess
consumption penalty as provided in section 1203, except that the
deadlines described in this title shall be substituted for the
deadlines described in that section.
SEC. 10007. SALE, EXCHANGE, AND OTHER USES OF HYDROFLUOROCARBON
CONSUMPTION ALLOWANCES.
(a) Permissible Uses.--
(1) In general.--A hydrofluorocarbon producer or
hydrofluorocarbon importer may purchase, hold, sell, exchange,
transfer, submit for compliance in accordance with section
10006, or retire hydrofluorocarbon consumption allowances or
hydrofluorocarbon destruction allowances.
(2) Action on retirement.--If any hydrofluorocarbon
producer or hydrofluorocarbon importer permanently retires a
hydrofluorocarbon consumption allowance, the Administrator
shall promptly redistribute the allowance to another
hydrofluorocarbon producer or hydrofluorocarbon importer
pursuant to section 10005(b).
(b) Prohibitions.--
(1) In general.--Hydrofluorocarbon consumption allowances
or hydrofluorocarbon destruction allowances shall not be traded
or exchanged with allowances associated with any other emission
allowance allocation or trading program under this Act.
(2) Certain uses.--Hydrofluorocarbon consumption allowances
shall not be used to achieve compliance with any other
obligation relating to emissions of greenhouse gases regulated
under any other provision of this Act, and emission allowances
established and allocated under any other provision of this Act
shall not be used to achieve compliance with this title.
(c) Limitation.--The privilege of purchasing, holding, selling,
exchanging, transferring, and submitting for compliance in accordance
with section 10006, and retiring hydrofluorocarbon consumption
allowances or hydrofluorocarbon destruction allowances shall be
restricted to entities described in section 10005(b)(1).
SEC. 10008. ALLOWANCE TRANSFER SYSTEM.
(a) Regulations.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall promulgate regulations
to carry out the provisions of this title relating to hydrofluorocarbon
consumption allowances and hydrofluorocarbon destruction allowances,
including regulations providing that the transfer of those allowances
shall not be effective until the date on which a written certification
of the transfer, signed by a responsible official of each party to the
transfer, is received and recorded by the Administrator in accordance
with those regulations.
(b) Transfers.--
(1) In general.--The regulations promulgated under
subsection (a) shall permit the transfer of hydrofluorocarbon
consumption allowances prior to the allocation of the
allowances.
(2) Deduction and addition of transfers.--A recorded
preallocation transfer of hydrofluorocarbon consumption
allowances shall be--
(A) deducted by the Administrator from the number
of hydrofluorocarbon consumption allowances that would
otherwise be allocated to the transferor; and
(B) added to those hydrofluorocarbon consumption
allowances allocated to the transferee.
(c) Issuance, Recording, and Tracking System.--The regulations
promulgated under subsection (a) shall include a system for issuing,
recording, and tracking hydrofluorocarbon consumption and
hydrofluorocarbon destruction allowances that shall specify all
necessary procedures and requirements for an orderly and competitive
functioning of the hydrofluorocarbon consumption allowance system.
SEC. 10009. BANKING AND BORROWING.
(a) Banking.--A hydrofluorocarbon producer or hydrofluorocarbon
importer that submits hydrofluorocarbon consumption allowances or
hydrofluorocarbon destruction allowances to the Administrator to
achieve compliance with section 10006 shall indicate in the
identification number of the hydrofluorocarbon consumption allowance or
hydrofluorocarbon destruction allowance the calendar year for which the
allowance is submitted.
(b) Borrowing of Hydrofluorocarbon Consumption Allowances.--In
accordance with the regulations promulgated under section 10008(a), and
subject to subsection (d), a hydrofluorocarbon producer or
hydrofluorocarbon importer may--
(1) borrow hydrofluorocarbon consumption allowances from
the Administrator; and
(2) for a calendar year, submit borrowed hydrofluorocarbon
consumption allowances to the Administrator to satisfy not more
than 15 percent of the compliance obligation under section
10006.
(c) Limitation on Borrowing.--A hydrofluorocarbon consumption
allowance borrowed under subsection (b) shall be a hydrofluorocarbon
consumption allowance established by the Administrator for a specific
subsequent calendar year under section 10004(g).
(d) Term.--A producer or importer shall not submit, and the
Administrator shall not accept, a borrowed hydrofluorocarbon
consumption allowance in partial satisfaction of the compliance
obligation under section 10006 for any calendar year that is more than
5 years before the calendar year included in the identification number
of the borrowed hydrofluorocarbon consumption allowance.
(e) Repayment of Interest.--For any borrowed hydrofluorocarbon
consumption allowance submitted in partial satisfaction of the
compliance obligation under section 10006 for a particular calendar
year (referred to in this subsection as the ``use year''), the number
of hydrofluorocarbon consumption allowances or hydrofluorocarbon
destruction allowances that the hydrofluorocarbon producer or
hydrofluorocarbon importer is required to submit under section 10006
for the year from which the borrowed hydrofluorocarbon consumption
allowance was taken (referred to in this subsection as the ``source
year'') shall be increased by an amount equal to the product obtained
by multiplying--
(1) 1.1; and
(2) the number of calendar years beginning after the use
year but before the source year.
SEC. 10010. HYDROFLUOROCARBON DESTRUCTION ALLOWANCES.
(a) Destruction of Hydrofluorocarbon.--
(1) In general.--The Administrator shall issue
hydrofluorocarbon destruction allowances to any
hydrofluorocarbon producer or hydrofluorocarbon importer that
performs or arranges for recovery and destruction of
hydrofluorocarbon from products or equipment.
(2) Issuance and denomination.--Hydrofluorocarbon
destruction allowances shall be issued on a global warming
potential-weighted basis, denominated in terms of metric tons
of carbon dioxide.
(3) Limitations.--
(A) Byproducts.--No hydrofluorocarbon destruction
allowance shall be issued under this section for
destruction of hydrofluorocarbon produced as a
byproduct in a production process.
(B) Certain purposes.--No hydrofluorocarbon
destruction allowance shall be issued under this
section for destruction or recycling of
hydrofluorocarbon produced for a purpose other than the
ultimate sale and use of the product.
(b) Regulations.--
(1) Requirement.--The regulations promulgated under section
10008(a) shall authorize the issuance of hydrofluorocarbon
destruction allowances.
(2) Criteria.--Those regulations shall establish
appropriate criteria for determining--
(A) the effectiveness of destruction;
(B) the net quantity of global warming potential-
weighted hydrofluorocarbon that has been destroyed; and
(C) procedures for verification, registration, and
issuance of hydrofluorocarbon destruction allowances.
(c) Satisfaction of Requirements.--Beginning with calendar year
2012, a hydrofluorocarbon producer or hydrofluorocarbon importer may
satisfy a portion of the hydrofluorocarbon consumption allowance
submission requirement under section 10006 by submitting
hydrofluorocarbon destruction allowances generated in accordance with
the regulations promulgated pursuant to section 10008(a).
(d) Ownership.--Initial ownership of a hydrofluorocarbon
destruction allowance shall be held by the hydrofluorocarbon producer
or hydrofluorocarbon importer that performs or arranges for recovery
and destruction or recycling of hydrofluorocarbon, including
hydrofluorocarbon from products or equipment containing
hydrofluorocarbon, unless otherwise specified in a legally binding
contract or agreement to which the hydrofluorocarbon producer or
hydrofluorocarbon importer is a party.
(e) Transferability.--A hydrofluorocarbon destruction allowance
generated pursuant to the regulations promulgated pursuant to
subsection (b)--
(1) may be sold, traded, or transferred to any
hydrofluorocarbon producer or hydrofluorocarbon importer
referred to in section 10005(b); but
(2) shall not be sold, traded, transferred, or used for
compliance with any other emission allowance requirement of
this Act or any other law.
TITLE XI--AMENDMENTS TO CLEAN AIR ACT
SEC. 11001. NATIONAL RECYCLING AND EMISSION REDUCTION PROGRAM.
Section 608 of the Clean Air Act (42 U.S.C. 7671g) is amended--
(1) by redesignating subsections (a) through (c) as
subsections (b) through (d), respectively;
(2) by inserting before subsection (b) (as so redesignated)
the following:
``(a) Definition of Hydrofluorocarbon Substitute.--In this section,
the term `hydrofluorocarbon substitute' means a hydrofluorocarbon--
``(1) with a global warming potential of more than 150; and
``(2) that is used in or for types of equipment,
appliances, or processes that previously relied on class I or
class II substances.'';
(3) in subsection (b) (as so redesignated)--
(A) in the matter following paragraph (3), by
striking ``Such regulations'' and inserting the
following:
``(5) The regulations'';
(B) by redesignating paragraph (3) as paragraph
(4); and
(C) by inserting after paragraph (2) the following:
``(3)(A) Not later than 1 year after the date of enactment
of the Lieberman-Warner Climate Security Act of 2007, the
Administrator shall promulgate regulations establishing
standards and requirements regarding the sale or distribution,
or offer for sale and distribution in interstate commerce, use,
and disposal of hydrofluorocarbon substitutes for class I and
class II substances not covered by paragraph (1), including the
use, recycling, and disposal of those hydrofluorocarbon
substitutes during the maintenance, service, repair, or
disposal of appliances and industrial process refrigeration
equipment.
``(B) The standards and requirements established under
subparagraph (A) shall take effect not later than 1 year after
the date of promulgation of the regulations.'';
(4) in subsection (c) (as so redesignated)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and
indenting the subparagraphs appropriately;
(B) by striking the subsection designation and
heading and all that follows through ``following--''
and inserting the following:
``(c) Safe Disposal.--The regulations under subsection (b) shall--
``(1) establish standards and requirements for the safe
disposal of class I and II substances and hydrofluorocarbon
substitutes for those substances; and
``(2) include each of the following:'';
(C) in subparagraph (A) (as redesignated by
subparagraph (A)), by inserting ``(or hydrofluorocarbon
substitutes for those substances)'' after ``class I or
class II substances''; and
(D) in paragraphs (2) and (3), by inserting ``(or a
hydrofluorocarbon substitutes for such a substance)''
after ``class I or class II substance'' each place it
appears.
SEC. 11002. SERVICING OF MOTOR VEHICLE AIR CONDITIONERS.
Section 609 of the Clean Air Act (42 U.S.C. 7671h) is amended--
(1) in subsection (b), by adding at the end the following:
``(5) The term `hydrofluorocarbon substitute' means a
hydrofluorocarbon--
``(A) with a global warming potential of more than
150; and
``(B) that is used in or for types of equipment,
appliances, or processes that previously relied on
class I or class II substances.''; and
(2) in subsection (e)--
(A) by striking the subsection designation and
heading and all that follows through ``Effective'' and
inserting the following:
``(e) Small Containers of Class I or Class II Substances and
Hydrofluorocarbon Substitutes.--
``(1) Class i or class ii substances.--Effective
beginning''; and
(B) by adding at the end the following:
``(2) Hydrofluorocarbon substitutes.--Effective beginning
January 1, 2010, it shall be unlawful for any person to sell or
distribute, or offer for sale or distribution, in interstate
commerce to any person (other than a person performing service
for consideration on motor vehicle air-conditioning systems in
compliance with this section) any hydrofluorocarbon substitute
that is--
``(A) suitable for use in a motor vehicle air-
conditioning system; and
``(B) in a container that contains less than 20
pounds of the hydrofluorocarbon substitute.''.
SEC. 11003. CARBON DIOXIDE REDUCTION.
(a) Findings.--Congress finds that--
(1) oil used for transportation contributes significantly
to air pollution, including global warming pollution, water
pollution, and other adverse impacts on the environment;
(2) to reduce emissions of global warming pollutants, the
United States should increasingly rely on advanced clean fuels
for transportation; and
(3) a comparison of life-cycle greenhouse gas emissions of
conventional transportation fuels and low-carbon transportation
fuels should be based on comparable fuels, such as a comparison
of gasoline to gasoline and diesel fuel to diesel fuel.
(b) Definitions.--Section 211(o)(1) of the Clean Air Act (42 U.S.C.
7545(o)(1)) is amended--
(1) by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (J), (G), and (H), respectively, and moving those
subparagraphs so as to appear in alphabetical order;
(2) by inserting after subparagraph (A) the following:
``(B) Cultivated noxious plant.--The term
`cultivated noxious plant' means a plant that is
included on--
``(i) the Federal noxious weed list
maintained by the Animal and Plant Health
Inspection Service; or
``(ii) any equivalent State list.
``(C) Fuel emission baseline.--The term `fuel
emission baseline' means the average lifecycle
greenhouse gas emissions per unit of energy of
conventional transportation fuels in commerce in the
United States in calendar year 2008, as determined by
the Administrator under paragraph (11).
``(D) Fuel provider.--
``(i) In general.--The term `fuel provider'
means an obligated party (as described in
section 80.1106 of title 40, Code of Federal
Regulations (or a successor regulation)).
``(ii) Inclusions.--The term `fuel
provider' includes, as the Administrator
determines to be appropriate, an individual or
entity that produces, blends, or imports
gasoline or any other transportation fuel in
commerce in, or into, the United States.
``(E) Greenhouse gas.--The term `greenhouse gas'
means any of--
``(i) carbon dioxide;
``(ii) methane;
``(iii) nitrous oxide;
``(iv) hydrofluorocarbons;
``(v) perfluorocarbons;
``(vi) sulfur hexafluoride; and
``(vii) any other emission or effect (such
as particulate matter or a change in albedo)
that the Administrator determines to be a
significant factor in global warming as a
result of the use of transportation fuel.
``(F) Lifecycle greenhouse gas emissions.--
``(i) In general.--The term `lifecycle
greenhouse gas emissions' means, with respect
to a transportation fuel, the aggregate
quantity of greenhouse gases emitted per
British thermal unit of fuel, as determined by
the Administrator, from production through use
of the fuel, as calculated to ensure that any
nonrecurring emission is not amortized over a
period of more than 20 years to ensure that
required improvements in greenhouse gas
emissions occur within that period.
``(ii) Inclusions.--The term `lifecycle
greenhouse gas emissions' includes emissions
associated with--
``(I) feedstock production
(including direct and indirect land-use
changes) or extraction;
``(II) feedstock refining;
``(III) distribution of a fuel; and
``(IV) use of a fuel.''; and
(3) by inserting after subparagraph (H) (as redesignated by
paragraph (1)) the following:
``(I) Transportation fuel.--The term
`transportation fuel' means fuel used to power motor
vehicles, nonroad engines, or aircraft.''.
(c) Advanced Clean Fuel Program.--Section 211(o) of the Clean Air
Act (42 U.S.C. 7545(o)) is amended by adding at the end the following:
``(11) Advanced clean fuel performance standard.--
``(A) Standard.--
``(i) In general.--Not later than January
1, 2010, the Administrator shall, by
regulation--
``(I) establish a methodology for
use in determining the lifecycle
greenhouse gas emissions of all
transportation fuels in commerce;
``(II) determine the fuel emission
baseline;
``(III) establish a transportation
fuel certification and marketing
process to determine the lifecycle
greenhouse gas emissions of
conventional transportation fuels and
renewable fuels being sold or
introduced into commerce in the United
States that allows--
``(aa) for a simple
certification using default
values; and
``(bb) fuel providers to
opt in to the use of a
standardized certification tool
that would provide verifiable
and auditable greenhouse gas
ratings for fuels of the
providers through the use of
additional, certified data;
``(IV) in accordance with clause
(ii), establish a requirement
applicable to each fuel provider to
reduce the average lifecycle greenhouse
gas emissions per unit of energy of the
aggregate quantity of transportation
fuel produced, blended, or imported by
the fuel provider to a level that is,
to the maximum extent practicable--
``(aa) by not later than
calendar year 2011, at least
equal to or less than the fuel
emission baseline;
``(bb) by not later than
calendar year 2015, 5 percent
less than the fuel emission
baseline; and
``(cc) by not later than
calendar year 2020, 10 percent
less than the fuel emission
baseline; and
``(V) permit alternative reliable
estimation methods to be used for the
purpose of this clause during the first
5 years that the requirement described
in subclause (IV) is in effect.
``(ii) Air quality impacts.--For the
purpose of this subparagraph, in the case of
any air quality-related adverse lifecycle
impact resulting from emissions from motor
vehicles using renewable fuel, the
Administrator shall ensure, by regulation
promulgated under this title, that gasoline
containing renewable fuel does not result in--
``(I) average per-gallon motor
vehicle emissions (measured on a mass
basis) of air pollutants in excess of
those emissions attributable to
gasoline sold or introduced into
commerce in the United States in
calendar year 2007; or
``(II) a violation of any motor
vehicle emission or fuel content
limitation under any other provision of
this Act.
``(iii) Calendar year 2025 and
thereafter.--For calendar year 2025, and each
fifth calendar year thereafter, the
Administrator, in consultation with the
Secretary of Agriculture and the Secretary of
Energy, shall revise the applicable performance
standard to require that each fuel provider
shall additionally reduce, to the maximum
extent practicable, the average lifecycle
greenhouse gas emissions per unit of energy of
the aggregate quantity of transportation fuel
introduced by the fuel provider into commerce
in the United States.
``(iv) Revision of regulations.--In
accordance with the purposes of the Lieberman-
Warner Climate Security Act of 2007, the
Administrator may, as appropriate, revise the
regulations promulgated under clause (i) as
necessary to reflect or respond to changes in
the transportation fuel market or other
relevant circumstances.
``(v) Method of calculation.--In
calculating the lifecycle greenhouse gas
emissions of hydrogen or electricity (when used
as a transportation fuel) pursuant to clause
(i)(I), the Administrator shall--
``(I) include emissions resulting
from the production of the hydrogen or
electricity; and
``(II) consider to be equivalent to
the energy delivered by 1 gallon of
ethanol the energy delivered by--
``(aa) 6.4 kilowatt-hours
of electricity;
``(bb) 132 standard cubic
feet of hydrogen; or
``(cc) 1.25 gallons of
liquid hydrogen.
``(vi) Best available science.--In carrying
out this paragraph, the Administrator shall use
the best available scientific and technical
information to determine the lifecycle
greenhouse gas emissions of transportation
fuels derived from--
``(I) planted crops and crop
residue produced and harvested from
agricultural land that--
``(aa) has been cleared
and, if the land was previously
wetland, drained before the
date of enactment of this
paragraph, and that is actively
managed or fallow and
nonforested; and
``(bb) is in compliance
with a conservation plan that
meets the standards,
guidelines, and restrictions
under subtitles B and C of
chapter 1 of subtitle D of
title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et
seq.);
``(II) planted trees and tree
residue from actively-managed tree
plantations on non-Federal land that
has been cleared and, if the land was
previously wetland, drained before the
date of enactment of this paragraph;
``(III) animal waste material, and
animal byproducts;
``(IV) slash and pre-commercial
thinnings from non-Federal forestland
other than--
``(aa) old-growth forest or
late successional forest; and
``(bb) ecological
communities with a global or
State ranking of critically
imperiled, imperiled, or rare
pursuant to a State natural
heritage program;
``(V) biomass obtained from the
immediate vicinity of buildings and
other areas regularly occupied by
individuals, or of public
infrastructure, that is at risk from
wildfire;
``(VI) algae;
``(VII) separated food waste or
yard waste;
``(VIII) electricity, including the
entire lifecycle of the fuel;
``(IX) 1 or more fossil fuels,
including the entire lifecycle of the
fuels; and
``(X) hydrogen, including the
entire lifecycle of the fuel.
``(vii) Equivalent emissions.--In carrying
out this paragraph, the Administrator shall
consider transportation fuel derived from
cultivated noxious plants, and transportation
fuel derived from biomass sources other than
those sources described in clause (vi), to have
emissions equivalent to the greater of--
``(I) the lifecycle greenhouse gas
emissions; or
``(II) the fuel emission baseline.
``(B) Election to participate.--An electricity
provider may elect to participate in the program under
this section if the electricity provider provides and
separately tracks electricity for transportation
through a meter that--
``(i) measures the electricity used for
transportation separately from electricity used
for other purposes; and
``(ii) allows for load management and time-
of-use rates.
``(C) Credits.--
``(i) In general.--The regulations
promulgated to carry out this paragraph shall
permit fuel providers to receive credits for
achieving, during a calendar year, greater
reductions in lifecycle greenhouse gas
emissions of the fuel provided, blended, or
imported by the fuel provider than are required
under subparagraph (A)(i)(IV).
``(ii) Method of calculation.--The number
of credits received by a fuel provider as
described clause (i) for a calendar year shall
be calculated by multiplying--
``(I) the aggregate quantity of
fuel produced, distributed, or imported
by the fuel provider in the calendar
year; and
``(II) the difference between--
``(aa) the lifecycle
greenhouse gas emissions of
that quantity of fuel; and
``(bb) the maximum
lifecycle greenhouse gas
emissions of that quantity of
fuel permitted for the calendar
year under subparagraph
(A)(i)(IV).
``(D) Compliance.--
``(i) In general.--Each fuel provider
subject to this paragraph shall demonstrate
compliance with this paragraph, including, as
necessary, through the use of credits banked or
purchased.
``(ii) No limitation on trading or
banking.--There shall be no limit on the
ability of any fuel provider to trade or bank
credits pursuant to this subparagraph.
``(iii) Use of banked credits.--A fuel
provider may use banked credits under this
subparagraph with no discount or other
adjustment to the credits.
``(iv) Borrowing.--A fuel provider may not
borrow credits from future years for use under
this subparagraph.
``(v) Types of credits.--To encourage
innovation in transportation fuels--
``(I) only credits created in the
production of transportation fuels may
be used for the purpose of compliance
described in clause (i); and
``(II) credits created by or in
other sectors, such as manufacturing,
may not be used for that purpose.
``(E) No effect on state authority or more
stringent requirements.--Nothing in this subsection--
``(i) affects the authority of a State to
establish, or to maintain in effect, any
transportation fuel performance standard or
other similar standard that is more stringent
than a standard established under this
paragraph; or
``(ii) supercedes or otherwise affects any
more stringent requirement under any other
provision of this Act.''.
(d) Water Quality Protection.--Section 211(c)(1) of the Clean Air
Act (42 U.S.C. 7545(c)(1)) is amended--
(1) by striking ``nonroad vehicle (A) if in the judgment of
the Administrator'' and inserting the following: ``nonroad
vehicle--
``(A) if, in the judgment of the Administrator, any
fuel or fuel additive or'';
(2) by striking ``, or (B) if'' and inserting the
following: ``; or
``(B) if''; and
(3) in subparagraph (A), by striking ``air pollution
which'' and inserting ``air pollution or water pollution
(including any degradation in the quality of groundwater)
that''.
Calendar No. 740
110th CONGRESS
2d Session
S. 2191
[Report No. 110-337]
_______________________________________________________________________
A BILL
To direct the Administrator of the Environmental Protection Agency to
establish a program to decrease emissions of greenhouse gases, and for
other purposes.
_______________________________________________________________________
May 20, 2008
Reported with an amendment