[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 280 Introduced in Senate (IS)]
1st Session
S. 280
To provide for a program to accelerate the reduction of greenhouse gas
emissions in the United States by establishing a market-driven system
of greenhouse gas tradeable allowances, to support the deployment of
new climate change-related technologies, and to ensure benefits to
consumers from the trading in such allowances, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 12, 2007
Mr. Lieberman (for himself, Mr. McCain, Mrs. Lincoln, Ms. Snowe, Mr.
Obama, Ms. Collins, and Mr. Durbin) introduced the following bill;
which was read twice and referred to the Committee on Environment and
Public Works
_______________________________________________________________________
A BILL
To provide for a program to accelerate the reduction of greenhouse gas
emissions in the United States by establishing a market-driven system
of greenhouse gas tradeable allowances, to support the deployment of
new climate change-related technologies, and to ensure benefits to
consumers from the trading in such allowances, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Climate
Stewardship and Innovation Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--A MARKET TO REDUCE GREENHOUSE GAS EMISSIONS
Subtitle A--Tracking Emissions
Sec. 101. National greenhouse gas database and registry established.
Sec. 102. Inventory of greenhouse gas emissions for covered entities.
Sec. 103. Greenhouse gas reduction reporting.
Sec. 104. Measurement and verification.
Subtitle B--Mandating Emissions Reductions
Sec. 121. Covered entities must submit allowances for emissions.
Sec. 122. Compliance.
Sec. 123. Exemption of source categories.
Sec. 124. Establishment of tradeable allowances.
Sec. 125. Penalties.
Subtitle C--Controlling Compliance Costs
Sec. 141. Trading.
Sec. 142. Banking.
Sec. 143. Borrowing.
Sec. 144. Domestic offsets.
Sec. 145. International credits plan.
Subtitle D--Allocating Emissions Allowances
Sec. 161. Determination of tradeable allowance allocations.
Sec. 162. Allocation of tradeable allowances.
Sec. 163. Ensuring target adequacy.
Sec. 164. Initial allocations for early participation and accelerated
participation.
Sec. 165. Bonus for accelerated participation.
TITLE II--CLIMATE CHANGE CREDIT CORPORATION
Subtitle A--Establishment and Functions
Sec. 201. Establishment.
Sec. 202. Purposes and functions.
Subtitle B--Financing
Sec. 251. Climate Technology Financing Board.
Sec. 252. Responsibilities of the Secretary.
Sec. 253. Limitations.
Sec. 254. Source of funding for programs.
Sec. 255. Definitions.
TITLE III--ADVANCED TECHNOLOGIES FOR A PRODUCTIVE, SECURE, AND CLEAN
ENERGY FUTURE
Sec. 301. Findings.
Subtitle A--Innovation Infrastructure
Sec. 311. Technology transfer opportunities.
Sec. 312. Government-sponsored technology investment program.
Sec. 313. Federal technology innovation personnel incentives.
Sec. 314. Interdisciplinary research and commercialization.
Sec. 315. Climate innovation partnerships.
Sec. 316. National Medal of Climate Stewardship Innovation.
Sec. 317. Math and science teachers' enhancement program.
Sec. 318. Patent study.
Sec. 319. Lessons-learned program.
Sec. 320. Research grants.
Sec. 321. Abrupt climate change research.
Sec. 322. Enhanced environmental measurements and standards.
Sec. 323. Climate technology challenge program.
Subtitle B--Deploying Advanced Technologies and Practices
Sec. 351. Low- or zero-emissions electricity generation.
Sec. 352. Low- or zero-emissions transportation.
Sec. 353. Measures to increase energy efficiency.
Sec. 354. Geological storage.
Sec. 355. Agricultural sequestration.
TITLE IV--ADAPTING TO CLIMATE CHANGE IMPACTS
Sec. 401. Adaptation technologies.
Sec. 402. Mitigating climate change's impacts on the poor.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) without weakening the economic position of the United
States or otherwise imposing hardship on its citizens, to
reduce the Nation's greenhouse gas emissions substantially
enough and quickly enough between 2007 and 2050 to preserve the
feasibility of forestalling catastrophic, manmade global
climate change; and
(2) to accomplish that purpose while--
(A) promoting the rapid and widespread deployment
of advanced technologies and practices for reducing
greenhouse gas emissions;
(B) promoting the economic well-being of low- and
middle-income Americans;
(C) keeping good jobs in the United States;
(D) mitigating climate change's impacts on low- and
middle-income Americans;
(E) mitigating climate change's impacts on low-
income populations abroad; and
(F) mitigating climate change's impacts on
wildlife.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Baseline.--The term ``baseline'' means the historic
greenhouse gas emission levels of an entity, as adjusted upward
by the Administrator to reflect actual reductions that are
verified in accordance with--
(A) regulations promulgated under section
101(c)(1); and
(B) relevant standards and methods developed under
this title.
(3) Carbon dioxide equivalents.--The term ``carbon dioxide
equivalents'' means, for each greenhouse gas, the amount of
each such greenhouse gas that makes the same contribution to
global warming as one metric ton of carbon dioxide, as
determined by the Administrator.
(4) Covered sectors.--The term ``covered sectors'' means
the electricity, transportation, industry, and commercial
sectors, as such terms are used in the Inventory.
(5) Covered entity.--The term ``covered entity'' means an
entity (including a branch, department, agency, or
instrumentality of Federal, State, or local government) that--
(A) owns or controls a source of greenhouse gas
emissions in the electric power, industrial, or
commercial sectors of the United States economy (as
defined in the Inventory), refines or imports petroleum
products for use in transportation, or produces or
imports hydrofluorocarbons, perfluorocarbons, or sulfur
hexafluoride; and
(B) emits, from any single facility owned by the
entity, over 10,000 metric tons of greenhouse gas per
year, measured in units of carbon dioxide equivalents,
or produces or imports--
(i) petroleum products that, when
combusted, will emit,
(ii) hydrofluorocarbons, perfluorocarbons,
or sulfur hexafluoride that, when used, will
emit, or
(iii) other greenhouse gases that, when
used, will emit,
over 10,000 metric tons of greenhouse gas per year,
measured in units of carbon dioxide equivalents.
(6) Database.--The term ``database'' means the national
greenhouse gas database established under section 101.
(7) Direct emissions.--The term ``direct emissions'' means
greenhouse gas emissions by an entity from a facility that is
owned or controlled by that entity.
(8) Facility.--The term ``facility'' means a building,
structure, or installation located on any 1 or more contiguous
or adjacent properties of an entity in the United States.
(9) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons; and
(F) sulfur hexafluoride.
(10) Indirect emissions.--The term ``indirect emissions''
means greenhouse gas emissions that are--
(A) a result of the activities of an entity; but
(B) emitted from a facility owned or controlled by
another entity.
(11) Inventory.--The term ``Inventory'' means the Inventory
of U.S. Greenhouse Gas Emissions and Sinks, prepared in
compliance with the United Nations Framework Convention on
Climate Change Decision 3/CP.5).
(12) Leakage.--The term ``leakage'' means--
(A) an increase in greenhouse gas emissions by one
facility or entity caused by a reduction in greenhouse
gas emissions by another facility or entity; or
(B) a decrease in sequestration that is caused by
an increase in sequestration at another location.
(13) Permanence.--The term ``permanence'' means the extent
to which greenhouse gases that are sequestered will not later
be returned to the atmosphere.
(14) Registry.--The term ``registry'' means the registry of
greenhouse gas emission reductions established under section
101(b)(2).
(15) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(16) Sequestration.--
(A) In general.--The term ``sequestration'' means
the capture, long-term separation, isolation, or
removal of greenhouse gases from the atmosphere.
(B) Inclusions.--The term ``sequestration''
includes--
(i) agricultural and conservation
practices;
(ii) reforestation;
(iii) forest preservation; and
(iv) any other appropriate method of
capture, long-term separation, isolation, or
removal of greenhouse gases from the
atmosphere, as determined by the Administrator.
(C) Exclusions.--The term ``sequestration'' does
not include--
(i) any conversion of, or negative impact
on, a native ecosystem; or
(ii) any introduction of non-native
species.
(17) Source category.--The term ``source category'' means a
process or activity that leads to direct emissions of
greenhouse gases, as listed in the Inventory.
(18) Stationary source.--The term ``stationary source''
means generally any source of greenhouse gases except those
emissions resulting directly from an engine for transportation
purposes.
TITLE I--A MARKET TO REDUCE GREENHOUSE GAS EMISSIONS
Subtitle A--Tracking Emissions
SEC. 101. NATIONAL GREENHOUSE GAS DATABASE AND REGISTRY ESTABLISHED.
(a) Establishment.--As soon as practicable after the date of
enactment of this Act, the Administrator, in coordination with the
Secretary, the Secretary of Energy, the Secretary of Agriculture, and
private sector and nongovernmental organizations, shall establish,
operate, and maintain a database, to be known as the ``National
Greenhouse Gas Database'', to collect, verify, and analyze information
on greenhouse gas emissions by entities.
(b) National Greenhouse Gas Database Components.--The database
shall consist of--
(1) an inventory of greenhouse gas emissions; and
(2) a registry of greenhouse gas emission reductions and
increases in greenhouse gas sequestrations.
(c) Comprehensive System.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall promulgate
regulations to implement a comprehensive system for greenhouse
gas emissions reporting, inventorying, and reductions
registration.
(2) Requirements.--The Administrator shall ensure, to the
maximum extent practicable, that--
(A) the comprehensive system described in paragraph
(1) is designed to--
(i) maximize completeness, transparency,
and accuracy of information reported; and
(ii) minimize costs incurred by entities in
measuring and reporting greenhouse gas
emissions; and
(B) the regulations promulgated under paragraph (1)
establish procedures and protocols necessary--
(i) to prevent the double-counting of
greenhouse gas emissions or emission reductions
reported by more than 1 reporting entity;
(ii) to provide for corrections to errors
in data submitted to the database;
(iii) to provide for adjustment to data by
reporting entities that have had a significant
organizational change (including mergers,
acquisitions, and divestiture), in order to
maintain comparability among data in the
database over time;
(iv) to provide for adjustments to reflect
new technologies or methods for measuring or
calculating greenhouse gas emissions;
(v) to account for changes in registration
of ownership of emission reductions resulting
from a voluntary private transaction between
reporting entities; and
(vi) to clarify the responsibility for
reporting in the case of any facility owned or
controlled by more than 1 entity.
(3) Serial numbers.--Through regulations promulgated under
paragraph (1), the Administrator shall develop and implement a
system that provides--
(A) for the verification of submitted emissions
reductions registered under this section;
(B) for the provision of unique serial numbers to
identify the registered emission reductions made by an
entity relative to the baseline of the entity;
(C) for the tracking of the registered reductions
associated with the serial numbers; and
(D) for such action as may be necessary to prevent
counterfeiting of the registered reductions.
SEC. 102. INVENTORY OF GREENHOUSE GAS EMISSIONS FOR COVERED ENTITIES.
(a) In General.--Not later than July 1st of each calendar year
after 2010, each covered entity shall submit to the Administrator a
report that states, for the preceding calendar year, the entity-wide
greenhouse gas emissions (as reported at the facility level),
including--
(1) the total quantity of direct greenhouse gas emissions
from stationary sources, expressed in units of carbon dioxide
equivalents, except those reported under paragraph (3);
(2) the amount of petroleum products sold or imported by
the entity and the amount of greenhouse gases, expressed in
units of carbon dioxide equivalents, that would be emitted when
these products are used for transportation in the United
States, as determined by the Administrator under section
121(b);
(3) the amount of hydrofluorocarbons, perfluorocarbons, or
sulfur hexafluoride, expressed in units of carbon dioxide
equivalents, that are sold or imported by the entity and will
ultimately be emitted in the United States, as determined by
the Administrator under section 121(d); and
(4) such other categories of emissions as the Administrator
determines in the regulations promulgated under section
101(c)(1) may be practicable and useful for the purposes of
this Act, such as--
(A) indirect emissions from imported electricity,
heat, and steam;
(B) process and fugitive emissions; and
(C) production or importation of greenhouse gases.
(b) Collection and Analysis of Data.--The Administrator shall
collect and analyze information reported under subsection (a) for use
under this title.
SEC. 103. GREENHOUSE GAS REDUCTION REPORTING.
(a) In General.--Subject to the requirements described in
subsection (b)--
(1) a covered entity may register greenhouse gas emission
reductions achieved after 1990 and before 2012 under this
section; and
(2) an entity that is not a covered entity may register
greenhouse gas emission reductions achieved at any time since
1990 under this section.
(b) Requirements.--
(1) In general.--The requirements referred to in subsection
(a) are that an entity (other than an entity described in
paragraph (2)) shall--
(A) establish a baseline; and
(B) submit the report described in subsection
(c)(1).
(2) Requirements applicable to entities entering into
certain agreements.--An entity that enters into an agreement
with a participant in the registry for the purpose of a carbon
sequestration project shall not be required to comply with the
requirements specified in paragraph (1) unless that entity is
required to comply with the requirements by reason of an
activity other than the agreement.
(c) Reports.--
(1) Required report.--Not later than July 1st of the each
calendar year beginning more than 2 years after the date of
enactment of this Act, but subject to paragraph (3), an entity
described in subsection (a) shall submit to the Administrator a
report that states, for the preceding calendar year, the
entity-wide greenhouse gas emissions (as reported at the
facility level), including--
(A) the total quantity of direct greenhouse gas
emissions from stationary sources, expressed in units
of carbon dioxide equivalents;
(B) the amount of petroleum products sold or
imported by the entity and the amount of greenhouse
gases, expressed in units of carbon dioxide
equivalents, that would be emitted when these products
are used for transportation in the United States, as
determined by the Administrator under section 121(b);
(C) the amount of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride, expressed in
units of carbon dioxide equivalents, that are sold or
imported by the entity and will ultimately be emitted
in the United States, as determined by the
Administrator under section 121(d); and
(D) such other categories of emissions as the
Administrator determines in the regulations promulgated
under section 101(c)(1) may be practicable and useful
for the purposes of this Act, such as--
(i) indirect emissions from imported
electricity, heat, and steam;
(ii) process and fugitive emissions; and
(iii) production or importation of
greenhouse gases.
(2) Voluntary reporting.--An entity described in subsection
(a) may (along with establishing a baseline and reporting
emissions under this section)--
(A) submit a report described in paragraph (1)
before the date specified in that paragraph for the
purposes of achieving and commoditizing greenhouse gas
reductions through use of the registry and for other
purposes; and
(B) submit to the Administrator, for inclusion in
the registry, information that has been verified in
accordance with regulations promulgated under section
101(c)(1) and that relates to--
(i) any activity that resulted in the net
reduction of the greenhouse gas emissions of
the entity or a net increase in sequestration
by the entity that were carried out during or
after 1990 and before the establishment of the
database, verified in accordance with
regulations promulgated under section
101(c)(1), and submitted to the Administrator
before the date that is 4 years after the date
of enactment of this Act; and
(ii) with respect to the calendar year
preceding the calendar year in which the
information is submitted, any project or
activity that resulted in the net reduction of
the greenhouse gas emissions of the entity or a
net increase in net sequestration by the
entity.
(3) Provision of verification information by reporting
entities.--Each entity that submits a report under this
subsection shall provide information sufficient for the
Administrator to verify, in accordance with measurement and
verification methods and standards developed under section 104,
that the greenhouse gas report of the reporting entity--
(A) has been accurately reported; and
(B) in the case of each voluntary report under
paragraph (2), represents--
(i) actual reductions in direct greenhouse
gas emissions--
(I) relative to historic emission
levels of the entity; and
(II) after accounting for any
increases in indirect emissions
described in paragraph (1)(C)(i); or
(ii) actual increases in net sequestration.
(4) Failure to submit report.--An entity that participates
or has participated in the registry and that fails to submit a
report required under this subsection shall be prohibited from
using, or allowing another entity to use, its registered
emissions reductions or increases in sequestration to satisfy
the requirements of section 121.
(5) Independent third-party verification.--To meet the
requirements of this section, an entity that is required to
submit a report under this section may--
(A) obtain independent third-party verification;
and
(B) present the results of the third-party
verification to the Administrator.
(6) Availability of data.--
(A) In general.--The Administrator shall ensure
that information in the database is--
(i) published; and
(ii) accessible to the public, including in
electronic format on the Internet.
(B) Exception.--Subparagraph (A) shall not apply in
any case in which the Administrator determines that
publishing or otherwise making available information
described in that subparagraph poses a risk to national
security or discloses confidential business information
that can not be derived from information that is
otherwise publicly available and that would cause
competitive harm if published.
(7) Data infrastructure.--The Administrator shall ensure,
to the maximum extent practicable, that the database uses, and
is integrated with, Federal, State, and regional greenhouse gas
data collection and reporting systems in effect as of the date
of enactment of this Act.
(8) Additional issues to be considered.--In promulgating
the regulations under section 101(c)(1) and implementing the
database, the Administrator shall take into consideration a
broad range of issues involved in establishing an effective
database, including--
(A) the data and information systems and measures
necessary to identify, track, and verify greenhouse gas
emissions in a manner that will encourage private
sector trading and exchanges;
(B) the greenhouse gas reduction and sequestration
measurement and estimation methods and standards
applied in other countries, as applicable or relevant;
(C) the extent to which available fossil fuels,
greenhouse gas emissions, and greenhouse gas production
and importation data are adequate to implement the
database; and
(D) the differences in, and potential uniqueness
of, the facilities, operations, and business and other
relevant practices of persons and entities in the
private and public sectors that may be expected to
participate in the database.
(d) Annual Report.--The Administrator shall publish an annual
report that--
(1) describes the total greenhouse gas emissions and
emission reductions reported to the database during the year
covered by the report;
(2) provides entity-by-entity and sector-by-sector analyses
of the emissions and emission reductions reported;
(3) describes the atmospheric concentrations of greenhouse
gases;
(4) provides a comparison of current and past atmospheric
concentrations of greenhouse gases; and
(5) describes the activity during the year covered by the
period in the trading of greenhouse gas emission allowances.
SEC. 104. MEASUREMENT AND VERIFICATION.
(a) Standards.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall establish by
rule, in coordination with the Secretary, the Secretary of
Energy, and the Secretary of Agriculture, comprehensive
measurement and verification methods and standards to ensure a
consistent and technically accurate record of greenhouse gas
emissions, emission reductions, sequestration, and atmospheric
concentrations for use in the registry.
(2) Requirements.--The methods and standards established
under paragraph (1) shall include--
(A) a requirement that a covered entity use a
continuous emissions monitoring system, or another
system of measuring or estimating emissions that is
determined by the Administrator, in consultation with
the Secretary, to provide information with precision,
reliability, accessibility, and timeliness similar to
that provided by a continuous emissions monitoring
system where technologically feasible;
(B) establishment of standardized measurement and
verification practices for reports made by all entities
participating in the registry, taking into account--
(i) protocols and standards in use by
entities requiring or desiring to participate
in the registry as of the date of development
of the methods and standards under paragraph
(1);
(ii) boundary issues, such as leakage;
(iii) avoidance of double counting of
greenhouse gas emissions and emission
reductions;
(iv) protocols to prevent a covered entity
from avoiding the requirements of this Act by
reorganization into multiple entities that are
under common control; and
(v) such other factors as the
Administrator, in consultation with the
Secretary, determines to be appropriate;
(C) establishment of methods of--
(i) estimating greenhouse gas emissions,
for those cases in which the Administrator, in
consultation with the Secretary, determines
that methods of monitoring, measuring or
estimating such emissions with precision,
reliability, accessibility, and timeliness
similar to that provided by a continuous
emissions monitoring system are not
technologically feasible at present; and
(ii) reporting the accuracy of such
estimations;
(D) establishment of measurement and verification
standards applicable to actions taken to reduce, avoid,
or sequester greenhouse gas emissions;
(E) in coordination with the Secretary of
Agriculture, standards to measure the results of the
use of carbon sequestration and carbon recapture
technologies, including--
(i) soil carbon sequestration practices;
and
(ii) forest preservation and reforestation
activities that adequately address the issues
of permanence, leakage, and verification;
(F) establishment of such other measurement and
verification standards as the Administrator, in
consultation with the Secretary, the Secretary of
Agriculture, and the Secretary of Energy, determines to
be appropriate;
(G) establishment of standards for obtaining the
Administrator's approval of the suitability of
geological storage sites that include evaluation of
both the geology of the site and the entity's capacity
to manage the site; and
(H) establishment of other features that, as
determined by the Administrator, will allow entities to
adequately establish a fair and reliable measurement
and reporting system.
(b) Review and Revision.--The Administrator, in consultation with
the Secretary, shall periodically review, and revise as necessary, the
methods and standards developed under subsection (a).
(c) Public Participation.--The Administrator shall--
(1) make available to the public for comment, in draft form
and for a period of at least 90 days, the methods and standards
developed under subsection (a); and
(2) after the 90-day period referred to in paragraph (1),
in coordination with the Secretary of Energy, the Secretary of
Agriculture, and the Secretary, adopt the methods and standards
developed under subsection (a) for use in implementing the
database.
(d) Experts and Consultants.--
(1) In general.--The Administrator may obtain the services
of experts and consultants in the private and nonprofit sectors
in accordance with section 3109 of title 5, United States Code,
in the areas of greenhouse gas measurement, certification, and
emission trading.
(2) Available arrangements.--In obtaining any service
described in paragraph (1), the Administrator may use any
available grant, contract, cooperative agreement, or other
arrangement authorized by law.
Subtitle B--Mandating Emissions Reductions
SEC. 121. COVERED ENTITIES MUST SUBMIT ALLOWANCES FOR EMISSIONS.
(a) In General.--Beginning with calendar year 2012--
(1) each covered entity in the electric generation,
industrial, and commercial sectors shall submit to the
Administrator one tradeable allowance for each metric ton of
greenhouse gases, measured in units of carbon dioxide
equivalents, that it emits from stationary sources, except
those described in paragraph (2);
(2) each producer or importer of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride that is a covered
entity shall submit to the Administrator one tradeable
allowance for each metric ton of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride, measured in units of
carbon dioxide equivalents; that it produces or imports and
that will ultimately be emitted in the United States, as
determined by the Administrator under subsection (d); and
(3) each petroleum refiner or importer that is a covered
entity shall submit one tradeable allowance for each unit of
petroleum product it sells that will produce one metric ton of
greenhouse gases, measured in units of carbon dioxide
equivalents, as determined by the Administrator under
subsection (b), when used for transportation.
(b) Determination of Transportation Sector Amount.--For the
transportation sector, the Administrator shall determine the amount of
greenhouse gases, measured in units of carbon dioxide equivalents, that
will be emitted when petroleum products are used for transportation.
(c) Exception for Certain Deposited Emissions.--Notwithstanding
subsection (a), a covered entity is not required to submit a tradeable
allowance for any amount of greenhouse gas that would otherwise have
been emitted from a facility under the ownership or control of that
entity if--
(1) the emission is deposited in a geological storage
facility approved by the Administrator under section
104(a)(2)(G); and
(2) the entity agrees to submit tradeable allowances for
any portion of the deposited emission that is subsequently
emitted from that facility.
(d) Determination of Hydrofluorocarbon, Perfluorocarbon, and Sulfur
Hexafluoride Amount.--The Administrator shall determine the amounts of
hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride, measured
in units of carbon dioxide equivalents, that will be deemed to be
emitted for purposes of this Act.
SEC. 122. COMPLIANCE.
(a) Source of Tradeable Allowances Used.--A covered entity may use
a tradeable allowance to meet the requirements of this section without
regard to whether the tradeable allowance was allocated to it under
subtitle D of this title or acquired from another entity or the Climate
Change Credit Corporation established under section 201.
(b) Verification by Administrator.--At various times during each
year, the Administrator shall determine whether each covered entity has
met the requirements of this section. In making that determination, the
Administrator shall--
(1) take into account the tradeable allowances submitted by
the covered entity to the Administrator; and
(2) retire the serial number assigned to each such
tradeable allowance.
SEC. 123. EXEMPTION OF SOURCE CATEGORIES.
(a) In General.--The Administrator may grant an exemption from the
requirements of this Act to a source category if the Administrator
determines, after public notice and comment, that it is not feasible to
measure or estimate emissions from that source category, until such
time as measurement or estimation becomes feasible.
(b) Reduction of Limitations.--If the Administrator exempts a
source category under subsection (a), the Administrator shall also
reduce the total tradeable allowances under section 161(a)(1) by the
amount of greenhouse gas emissions that the exempted source category
emitted in calendar year 2000, as identified in the 2000 Inventory.
(c) Limitation on Exemption.--The Administrator may not grant an
exemption under subsection (a) to carbon dioxide produced from fossil
fuel.
SEC. 124. ESTABLISHMENT OF TRADEABLE ALLOWANCES.
(a) In General.--The Administrator shall promulgate regulations to
establish tradeable allowances, denominated in units of carbon dioxide
equivalents, as follows:
(1) For calendar years beginning after 2011, the number of
tradeable allowances shall be equal to 6,130 million metric
tons, measured in units of carbon dioxide equivalents, reduced
by the amount of emissions of greenhouse gases in calendar year
2012 from non-covered entities.
(2) For calendar years beginning after 2019, the number of
tradeable allowances shall be equal to 5,239 million metric
tons, measured in units of carbon dioxide equivalents, reduced
by the amount of emissions of greenhouse gases in calendar year
2020 from non-covered entities.
(3) For calendar years beginning after 2029, the number of
tradeable allowances shall be equal to 4,100 million metric
tons, measured in units of carbon dioxide equivalents, reduced
by the amount of emissions of greenhouse gases in calendar year
2030 from non-covered entities.
(4) For calendar years beginning after 2049, the number of
tradeable allowances shall be equal to 2,096 million metric
tons, measured in units of carbon dioxide equivalents, reduced
by the amount of emissions of greenhouse gases in each such
calendar year from non-covered entities.
(b) Serial Numbers.--The Administrator shall assign a unique serial
number to each tradeable allowance established under subsection (a),
and shall take such action as may be necessary to prevent
counterfeiting of tradeable allowances.
(c) Nature of Tradeable Allowances.--A tradeable allowance is not a
property right, and nothing in this title or any other provision of law
limits the authority of the United States to terminate or limit a
tradeable allowance.
(d) Non-Covered Entity.--
(1) In general.--In this section the term ``non-covered
entity'' means an entity that--
(A) owns or controls a source of greenhouse gas
emissions in the electric power, industrial, or
commercial sectors of the United States economy (as
defined in the Inventory), refines or imports petroleum
products for use in transportation, or produces or
imports hydrofluorocarbons, perfluorocarbons, or sulfur
hexafluoride; and
(B) is not a covered entity.
(2) Exception.--Notwithstanding paragraph (1), an entity
that is a covered entity for any calendar year beginning after
2011 shall not be considered to be a non-covered entity for
purposes of subsection (a) only because it emitted, or its
products would have emitted, 10,000 metric tons or less of
greenhouse gas, measured in units of carbon dioxide
equivalents, in the year 2006.
SEC. 125. PENALTIES.
Any covered entity that fails to meet the requirements of section
121 for a year shall be liable for a civil penalty, payable to the
Administrator, equal to thrice the market value (determined as of the
last day of the year at issue) of the tradeable allowances that would
be necessary for that covered entity to meet those requirements on the
date of the emission that resulted in the violation.
Subtitle C--Controlling Compliance Costs
SEC. 141. TRADING.
(a) In General.--Tradeable allowances may be sold, exchanged,
purchased, retired, or used as provided in this section.
(b) Intersector Trading.--Covered entities may purchase or
otherwise acquire tradeable allowances from other covered sectors to
satisfy the requirements of section 121.
SEC. 142. BANKING.
Notwithstanding the requirements of section 121, a covered entity
that has more than a sufficient amount of tradeable allowances to
satisfy the requirements of section 121, may refrain from submitting a
tradeable allowance to satisfy the requirements in order to sell,
exchange, or use the tradeable allowance in the future.
SEC. 143. BORROWING.
(a) In General.--The Administrator shall establish a program under
which a covered entity may--
(1) borrow credits for use in the current calendar year;
(2) use the credit in lieu of a tradeable allowance to meet
the requirements of this Act for the current calendar year,
subject to the limitation imposed by section 122(b); and
(3) use those credits to satisfy up to 25 percent of its
total allowance submission requirement under section 121 for
the current calendar year.
(b) Determination of Tradeable Allowance Credits.--The
Administrator may make credits available under subsection (a) that will
be repaid within 5 years after the year in which the credit is used.
(c) Carrying Cost.--If a covered entity uses a borrowed credit
under this section to meet the requirements of this Act for a calendar
year (referred to as the use year), the tradeable allowance requirement
for the year from which the credit was taken (referred to as the source
year) shall be increased by an amount equal to--
(1) 10 percent for each credit borrowed from the source
year; multiplied by
(2) the number of years beginning after the use year and
before the source year.
(d) Maximum Borrowing Period.--A credit from a year beginning more
than 5 years after the current year may not be used to meet the
requirements of this Act for the current year.
(e) Failure To Achieve Reductions Generating Credit.--If a covered
entity that uses a borrowed credit under this section fails to repay
the credit for the year from which the credit was taken, then--
(1) the covered entity's requirements under this Act for
that year shall be increased by the amount of the credit, plus
the amount determined under subsection (c);
(2) any tradeable allowances submitted by the covered
entity for that year shall be counted first against the
increase in those requirements; and
(3) the covered entity may not use credits under this
section to meet the increased requirements.
SEC. 144. DOMESTIC OFFSETS.
(a) Alternative Means of Compliance.--Beginning with calendar year
2012, a covered entity may satisfy up to 30 percent of its total
allowance submission requirement under section 121 by--
(1) submitting tradeable allowances from another nation's
market in greenhouse gas emissions if--
(A) the Administrator determines that the other
nation's system for trading in greenhouse gas emissions
is complete, accurate, and transparent and reviews that
determination at least once every 5 years;
(B) the other nation has adopted enforceable limits
on its greenhouse gas emissions which the tradeable
allowances were issued to implement; and
(C) the covered entity certifies that the tradeable
allowance has been retired unused in the other nation's
market;
(2) submitting a registered net increase in sequestration,
as registered in the database, adjusted, if necessary, to
comply with the accounting standards and methods established
under subsection (c);
(3) submitting a greenhouse gas emissions reduction (other
than a registered net increase in sequestration) that was
registered in the database by a person that is not a covered
entity; or
(4) submitting credits obtained under section 145.
(b) Dedicated Program for Sequestration in Agricultural Soils.--If
a covered entity chooses to satisfy more than 15 percent of its total
allowance submission requirements under the provisions of subsection
(a), it shall satisfy at least 1.5 percent of its total allowance
submission requirement by submitting registered net increases in
sequestration in agricultural soils, as registered in the database,
adjusted, if necessary, to comply with the accounting standards and
methods established under this section.
(c) Sequestration Accounting.--
(1) In general.--If a covered entity uses a registered net
increase in sequestration to satisfy the requirements of
section 121 for any year, that covered entity shall submit
information to the Administrator every 5 years thereafter
sufficient to allow the Administrator to determine, using the
methods and standards created under section 104, whether that
net increase in sequestration still exists. Unless the
Administrator determines that the net increase in sequestration
continues to exist, the covered entity shall offset any loss of
sequestration by submitting additional tradeable allowances of
equivalent amount in the calendar year following that
determination.
(2) Regulations required.--The Administrator, in
coordination with the Secretary, the Secretary of Agriculture,
and the Secretary of Energy, shall issue regulations
establishing the sequestration accounting rules for all classes
of sequestration projects.
(3) Criteria for regulations.--In issuing regulations under
this subsection, the Administrator shall use the following
criteria:
(A) If the range of possible amounts of net
increase in sequestration for a particular class of
sequestration project is not more than 10 percent of
the median of that range, the amount of sequestration
awarded shall be equal to the median value of that
range.
(B) If the range of possible amounts of net
increase in sequestration for a particular class of
sequestration project is more than 10 percent of the
median of that range, the amount of sequestration
awarded shall be equal to the fifth percentile of that
range.
(C) The regulations shall include procedures for
accounting for potential leakage from sequestration
projects and for ensuring that any registered increase
in sequestration is in addition that which would have
occurred if this Act had not been enacted.
(4) Updates.--The Administrator shall update the
sequestration accounting rules for every class of sequestration
project at least once every 5 years.
SEC. 145. INTERNATIONAL CREDITS PLAN.
(a) Establishment.--The Administrator shall establish a program the
purposes of which are--
(1) to assist developing countries in achieving sustainable
development and in contributing to the objective of reducing
the greenhouse gas emissions; and
(2) to assist covered entities in achieving compliance with
the requirements of section 121.
(b) Program Components.--
(1) In general.--The program shall provide for the earning
of tradable allowances by covered entities from project
activities in developing countries resulting in certified
emission reductions. The Administrator shall ensure tradability
of emission reductions earned under this program with
reductions earned under other similar international programs.
(2) Approval criteria and review process.--By no later than
2011, the Administrator shall--
(A) develop criteria for the approval of projects
submitted for review; and
(B) establish a review process for submitted
projects that includes a procedure for providing the
results of the review, together with an explanation of
the reasons for approving or denying approval of a
submitted project, to the entity that submitted the
project.
(3) Fees.--The Administrator may charge an application fee
for the review of project proposals to cover the administrative
costs of the program.
(4) Certification of results required.--The Administrator
shall require entities participating in this program to obtain
independent third-party verification that--
(A) participation by all parties involved in the
project is voluntary;
(B) the project produces--
(i) real, measurable, and long-term
benefits related to the mitigation of climate
change; and
(ii) reductions in emissions that are
additional to any that would occur in the
absence of the certified project activity.
(c) Use of allowances.--Subject to the limitation in section
144(a), tradable allowances earned under the program may be used to
meet the requirements of section 121.
(d) Study.--Within 3 years after the date of enactment of this Act,
the Administrator, in coordination with the Secretary, shall conduct a
study of the impacts of the compliance cost reduction measures of this
section and section 144 on achieving the purposes of this Act. The
Administrator shall submit the results of the study to the Congress
along with any recommendations the Administrator deems appropriate.
Subtitle D--Allocating Emissions Allowances
SEC. 161. DETERMINATION OF TRADEABLE ALLOWANCE ALLOCATIONS.
(a) In General.--The Administrator, in consultation with the
Secretary, shall determine--
(1) the number of tradeable allowances to be allocated to
each covered sector of that sector's allotments; and
(2) the number of tradeable allowances to be allocated to
the Climate Change Credit Corporation established under section
201.
(b) Allocation Factors.--In making the determination required by
subsection (a), the Administrator, in consultation with the Secretary,
shall consider--
(1) the distributive effect of the allocations on household
income and net worth of individuals;
(2) the impact of the allocations on corporate income,
taxes, and asset value;
(3) the impact of the allocations on income levels of
consumers and on their energy consumption;
(4) the effects of the allocations in terms of economic
efficiency;
(5) the ability of covered entities to pass through
compliance costs to their customers;
(6) the degree to which the amount of allocations to the
covered sectors should decrease over time;
(7) the need to maintain the international competitiveness
of United States manufacturing and avoid the additional loss of
United States manufacturing jobs; and
(8) the necessary funding levels for the initiatives and
programs in section 202.
(c) Allocation Recommendations and Implementation.--Before
allocating or providing tradeable allowances under subsection (a) and
within 24 months after the date of enactment of this Act, the
Administrator shall submit the determinations under subsection (a) to
the Senate Committee on Commerce, Science, and Transportation, the
Senate Committee on Environment and Public Works, the House of
Representatives Committee on Science, and the House of Representatives
Committee on Energy and Commerce. The Secretary's determinations under
paragraph (1), including the allocations and provision of tradeable
allowances pursuant to that determination, are deemed to be a major
rule (as defined in section 804(2) of title 5, United States Code), and
subject to the provisions of chapter 8 of that title.
SEC. 162. ALLOCATION OF TRADEABLE ALLOWANCES.
(a) In General.--Beginning with calendar year 2012 and after taking
into account any initial allocations under section 164, the
Administrator shall--
(1) allocate to each covered sector that sector's
allotments determined by the Administrator under section 162
(adjusted for any such initial allocations and the allocation
to the Climate Change Credit Corporation established under
section 201); and
(2) allocate to the Climate Change Credit Corporation
established under section 201 the tradeable allowances
allocable to that Corporation.
(b) Intrasectorial Allotments.--The Administrator shall, by
regulation, establish a process for the allocation of tradeable
allowances under this section, without cost to covered entities, that
will--
(1) encourage investments that increase the efficiency of
the processes that produce greenhouse gas emissions;
(2) minimize the costs to the government of allocating the
tradeable allowances;
(3) give credit to covered entities for emissions
reductions made before 2012 and registered with the database;
and
(4) provide sufficient allocation for new entrants into the
sector.
(c) Point Source Allocation.--The Administrator shall allocate the
tradeable allowances for the electricity generation, industrial, and
commercial sectors to the entities owning or controlling the point
sources of greenhouse gas emissions within that sector.
(d) Hydrofluorocarbons, Perfluorocarbons, and Sulfur
Hexafluoride.--The Administrator shall allocate the tradeable
allowances for producers or importers of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride to such producers or
importers.
(e) Special Rule for Allocation within the Transportation Sector.--
The Administrator shall allocate the tradeable allowances for the
transportation sector to petroleum refiners or importers that produce
or import petroleum products that will be used as fuel for
transportation.
(f) Allocations to Rural Electric Cooperatives.--For each electric
generating unit that is owned or operated by a rural electric
cooperative, the Administrator shall allocate each year, at no cost,
allowances in an amount equal to the greenhouse gas emissions of each
such unit in 2006, plus an amount equal to the average emissions growth
expected for all such units. The allocations shall be offset from the
allowances allocated to the Climate Change Credit Corporation.
(g) Early Auction for Technology Deployment and Dissemination.--
(1) In general.--Within 1 year after the date of enactment
of this Act, the Administrator, in consultation with the
Secretary of Energy and the Secretary of Commerce, shall
allocate tradeable allowances by the Climate Change Credit
Corporation for auction before 2012. The Climate Change Credit
Corporation shall use the proceeds of the auction, together
with any funds received as reimbursements under subsection (c)
or (d) of section 351 of this Act, to support the programs
established by that section until the secretary of Energy and
the Corporation jointly determine that the purposes of those
programs have been accomplished. The Corporation shall also use
the proceeds of the auction to support the programs established
by section 323 of this Act until 2012.
(2) Determination of allocation.--In determining the amount
of tradeable allowances to be allocated to the Climate Change
Credit Corporation under this subsection, the Administrator
shall consider--
(A) the expected market value of tradeable
allowances for auction;
(B) the annual funding required for the programs
established by subsections (c) and (d) of section 351
of this Act;
(C) the repayment provisions of those programs; and
(D) the allocation factors in section 161(b).
(3) Limitation.--In allocating tradeable allowances under
paragraph (1) the Administrator shall take into account the
purposes of this Act and the impact, if any, the allocation
under paragraph (1) may have on achieving those purposes.
(h) Allocation to Covered Entities in States Adopting Mandatory
Greenhouse Gas Emissions Reduction Programs.--For a covered entity
operating in any State that has adopted a legally binding and
enforceable program to achieve and maintain reductions that are
consistent with, or more stringent than, reductions mandated by this
Act, and which requirements are effective prior to 2012, the
Administrator shall consider such binding state actions in making the
final determination of allocation to such covered entities.
SEC. 163. ENSURING TARGET ADEQUACY.
(a) In General.--Beginning 2 years after the date of enactment of
this Act, the Under Secretary of Commerce for Oceans and Atmosphere
shall review the allowances established by section 124 no less
frequently than biennially--
(1) to re-evaluate the levels established by that
subsection, after taking into account the best available
science and the most currently available data, and
(2) to re-evaluate the environmental and public health
impacts of specific concentration levels of greenhouse gases,
to determine whether the allowances established by section 124 continue
to be consistent with the purposes of this Act and the objective of the
United Nations' Framework Convention on Climate Change of stabilizing
levels of greenhouse gas emissions at a level that will prevent
dangerous anthropogenic interference with the climate system.
(b) Review of 2012 Levels.--The Under Secretary shall specifically
review in 2012 the level established under section 124(a)(1), and
transmit a report on his reviews, together with any recommendations,
including legislative recommendations, for modification of the levels,
to the Senate Committee on Commerce, Science, and Transportation, the
Senate Committee on Environment and Public Works, the House of
Representatives Committee on Science, and the House of Representatives
Committee on Energy and Commerce.
SEC. 164. INITIAL ALLOCATIONS FOR EARLY PARTICIPATION AND ACCELERATED
PARTICIPATION.
(a) In General.--Before making any allocations under section 162,
the Administrator shall allocate--
(1) to any covered entity an amount of tradeable allowances
equivalent to the amount of greenhouse gas emissions reductions
registered by that covered entity in the national greenhouse
gas database if--
(A) the covered entity has requested to use the
registered reduction in the year of allocation;
(B) the reduction was registered prior to 2012; and
(C) the Administrator retires the unique serial
number assigned to the reduction under section
101(c)(3); and
(2) to any covered entity that has entered into an
accelerated participation agreement under section 165, such
tradeable allowances as the Administrator has determined to be
appropriate under that section.
(b) Eligibility under State Programs.--Any covered entity that is
subject to a State mandatory greenhouse gas emissions reduction program
that meets the requirements of subsection (h) of section 162 shall be
eligible for the allocation of allowances under this section and
section 165 if the requirements of the State mandatory greenhouse gas
emission reduction program are consistent with, or more stringent than,
the emission targets established by this Act.
SEC. 165. BONUS FOR ACCELERATED PARTICIPATION.
(a) In General.--If a covered entity executes an agreement with the
Administrator under which it agrees to reduce its level of greenhouse
gas emissions to a level no greater than the level of its greenhouse
gas emissions for calendar year 1990 by the year 2012, then, for the 6-
year period beginning with calendar year 2012, the Administrator
shall--
(1) provide additional tradeable allowances to that entity
when allocating allowances under section 163 in order to
recognize the additional emissions reductions that will be
required of the covered entity; and
(2) allow that entity to satisfy 40 percent of its
requirements under section 121 by the means set forth in
section 144(a) and 145.
(b) Termination.--An entity that executes an agreement described in
subsection (a) may terminate the agreement at any time.
(c) Failure To Meet Commitment.--If an entity that executes an
agreement described in subsection (a) fails to achieve the level of
emissions to which it committed by calendar year 2012--
(1) its requirements under section 121 shall be increased
by the amount of any tradeable allowances provided to it under
subsection (a)(1); and
(2) any tradeable allowances submitted thereafter shall be
counted first against the increase in those requirements.
TITLE II--CLIMATE CHANGE CREDIT CORPORATION
Subtitle A--Establishment and Functions
SEC. 201. ESTABLISHMENT.
(a) In General.--The Climate Change Credit Corporation is
established as a nonprofit corporation without stock. The Corporation
shall not be considered to be an agency or establishment of the United
States Government.
(b) Applicable Laws.--The Corporation shall be subject to the
provisions of this title and, to the extent consistent with this title,
to the District of Columbia Business Corporation Act.
(c) Board of Directors.--The Corporation shall have a board of
directors of 5 individuals who are citizens of the United States, of
whom 1 shall be elected annually by the board to serve as chairman. No
more than 3 members of the board serving at any time may be affiliated
with the same political party. The members of the board shall be
appointed by the President of the United States, by and with the advice
and consent of the Senate and shall serve for terms of 5 years.
SEC. 202. PURPOSES AND FUNCTIONS.
(a) Trading.--The Corporation--
(1) shall receive and manage tradeable allowances allocated
to it under section 163(a)(2); and
(2) shall buy and sell tradeable allowances, whether
allocated to it under that section or obtained by purchase,
trade, or donation from other entities; but
(3) may not retire tradeable allowances unused.
(b) Use of Tradeable Allowances and Proceeds.--
(1) In general.--The Corporation shall use the tradeable
allowances, and proceeds derived from its trading activities in
tradeable allowances, to reduce costs borne by consumers as a
result of the greenhouse gas reduction requirements of this
Act. The reductions--
(A) may be obtained by buy-down, subsidy,
negotiation of discounts, consumer rebates, or
otherwise;
(B) shall be, as nearly as possible, equitably
distributed across all regions of the United States;
and
(C) may include arrangements for preferential
treatment to consumers who can least afford any such
increased costs.
(2) Transition assistance to dislocated workers and
communities.--The Corporation shall allocate a percentage of
the proceeds derived from its trading activities in tradeable
allowances to provide transition assistance to dislocated
workers and communities. Transition assistance may take the
form of--
(A) grants to employers, employer associations, and
representatives of employees--
(i) to provide training, adjustment
assistance, and employment services to
dislocated workers; and
(ii) to make income-maintenance and needs-
related payments to dislocated workers; and
(B) grants to State and local governments to assist
communities in attracting new employers or providing
essential local government services.
(3) Phase-out of transition assistance.--The percentage
allocated by the Corporation under paragraph (2)--
(A) shall be 20 percent for 2012;
(B) shall be reduced by 2 percentage points each
year thereafter; and
(C) may not be reduced below zero.
(4) Adaptation and mitigation assistance for low-income
persons and communities.--The Corporation shall allocate at
least 10 percent of the proceeds derived from its trading
activities to funding climate change adaptation and mitigation
programs to assist low-income populations identified in the
report submitted under section 106(b) as having particular
needs in addressing the impact of climate change.
(5) Adaptation assistance for fish and wildlife habitat.--
The Corporation shall fund efforts to strengthen and restore
habitat that improves the ability of fish and wildlife to adapt
successfully to climate change. The Corporation shall deposit
the proceeds from no less than 10 percent of the total
allowances allocated to it in the wildlife restoration fund
subaccount known as the Wildlife Conservation and Restoration
Account established under section 3 of the Pittman-Robertson
Wildlife Restoration Act (16 U.S.C. 669b). Amounts deposited in
the subaccount under this paragraph shall be available without
further appropriation for obligation and expenditure under that
Act.
(6) Technology deployment programs.--The Corporation shall
establish and carry out a program, through direct grants,
revolving loan programs, or other financial measures, to
provide support for the deployment of technology to assist in
compliance with this Act by distributing the proceeds from no
less than 50 percent of the total allowances allocated in
support of the program established under section 323.
Subtitle B--Financing
SEC. 251. CLIMATE TECHNOLOGY FINANCING BOARD.
(a) Purpose.--The Climate Technology Financing Board shall work
with the Secretary of Energy to make financial assistance available to
joint venture partnerships and promote private sector participation in
financing eligible projects under this subtitle.
(b) Establishment.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Energy shall establish
within the Department of Energy a Climate Technology Financing
Board, which shall be responsible for assisting the Secretary
in carrying out this subtitle.
(2) Membership.--The Climate Technology Financing Board
shall be comprised of--
(A) the Secretary of Energy, who shall serve as
chair; and
(B) 6 additional members appointed by the
Secretary, including--
(i) the Chief Financial Officer of the
Department of Energy;
(ii) at least 1 representative of the
Corporation; and
(iii) other members with experience in
corporate and project finance in the energy
sector as deemed necessary by the Secretary to
carry out the functions of the Board.
(3) Representation of federal interest.--The Climate
Technology Financing Board shall represent the Federal
government's interest in all negotiations with project
developers interested in forming joint venture partnerships and
obtaining secured loans or loan guarantees under this subtitle.
(c) Regulations.--
(1) In general.--Not later than 12 months after the date of
enactment of this Act, the Climate Technology Financing Board,
through the Secretary of Energy, shall publish in the Federal
Register such final regulations as may be necessary to
implement section 252.
(2) Project selection criteria.--In selecting eligible
projects for financial assistance under this subtitle, the
Board shall consider, among other relevant criteria--
(A) the extent to which the project reduces
greenhouse gases, demonstrates new technologies, meets
other clean air attainment goals, generates economic
benefits, contributes to energy security, contributes
to fuel and technology diversity, and maintains price
stability, cost effectiveness, and economic
competitiveness;
(B) the extent to which assistance under this
subtitle would foster innovative public-private
partnerships and attract private equity investment;
(C) the likelihood that assistance under this
subtitle would enable the project to proceed at an
earlier date than the project would otherwise be able
to proceed without such assistance;
(D) the extent to which the project represents the
construction of the first generation of facilities that
use substantially new technology; and
(E) any other criteria deemed necessary by the
Secretary for the promotion of long-term cost effective
climate change-related technologies.
(3) Mandatory regulatory provisions.--The regulations
required by paragraph (1) shall include the following:
(A) The general terms and conditions under which
non-recourse financial assistance will be provided.
Those terms shall include--
(i) a debt-to-equity ratio of up to 80
percent debt from the Corporation, approved by
the Secretary, and no less than 20 percent
equity from the project developer;
(ii) a pledge of the eligible project's
assets to the Secretary and the project
developer to secure their respective loan and
equity contributions; and
(iii) loan repayment terms generally
consistent with financial terms available to
project developers in the United States power
generation industry.
(B) The general terms and conditions under which
loan guarantees will be provided, which shall be
consistent with section 253(c).
(C) The procedures by which project owners and
project developers may request such financial
assistance.
(D) A process under which the Climate Technology
Financing Board, the joint venture partnership, and the
project developer shall negotiate commercially
reasonable terms consistent with terms generally
available in the United States power generation
industry regarding cost, construction schedule, and
other conditions under which the project developer
shall acquire the loan from the joint venture
partnership and repay the secured loan and acquire an
undivided interest in the eligible project when the
project achieves commercial operation. Terms prescribed
under this subparagraph shall include--
(i) a defined right of the joint venture
partnership to terminate the loan agreement
upon a date certain for project delays that are
not the fault of the project developer; and
(ii) may not refer to the Federal
Acquisition Regulations.
(E) Provisions to retain independent third-party
engineering assistance, satisfactory to the Climate
Technology Financing Board, the project developer, and
the joint venture partnership, to verify and validate
construction costs and construction schedules, to
monitor construction, and authorize draws on financing
during construction to ensure that construction is
consistent with generally accepted utility practice,
and to make recommendations as to the cause of delay or
cost increases should such delays or cost increases
occur.
(F) Provisions to ensure--
(i) continued project development and
construction in the event of a delay to
achieving commercial operation caused by an
event outside the control of the joint
development partners and the project developer;
and
(ii) continued project operations in the
event the sale of the eligible project to the
project developer is not executed due to an
event outside the control of the project
developer.
(G) Any other information necessary for the
Secretary of Energy to discharge fully the obligation
conferred under this subtitle, including a process for
negotiating the terms and conditions of such financial
assistance.
(d) Comprehensive Implementation Plan.--Not later than 12 months
after the date of enactment of this Act, the Climate Technology
Financing Board shall prepare and transmit to the President and
Congress a comprehensive plan for implementation of this subtitle.
(e) Progress Reports.--Not later than 12 months after the
comprehensive plan required by subsection (d) and annually thereafter
the Secretary shall prepare and transmit to the President and the
Congress a report summarizing progress in satisfying the requirements
established by the subtitle.
SEC. 252. RESPONSIBILITIES OF THE SECRETARY.
(a) Financial Assistance.--Subject to the requirements of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), the
Secretary, in coordination with the Corporation, may make available to
joint venture partnerships for eligible project costs such Federal
financial assistance as the Climate Technology Financing Board
determines is necessary to enable access to, or to supplement, private
sector financing for projects if the Board determines that such
projects are needed to reduce greenhouse gas emissions, contribute to
energy security, fuel or technology diversity, or clean air attainment
goals. The Secretary, in coordination with the Corporation, shall
prescribe such terms and conditions for financial assistance as the
Secretary deems necessary or appropriate to protect the financial
interests of the United States.
(b) Requirements.--Approval criteria for financial assistance under
subsection (a) shall include--
(1) the creditworthiness of the project;
(2) the extent to which Federal financial assistance would
encourage public-private partnerships, attract private-sector
investment, and demonstrate safe and secure electric generation
or fuel production technology;
(3) the likelihood that Federal financial assistance would
hasten commencement of the project;
(4) in the case of a nuclear power plant, whether the
project developer provides reasonable assurance to the
Secretary that the project developer can successfully manage
nuclear power plant operations;
(5) the extent to which the project will demonstrate safe
and secure reduced or zero greenhouse gas emitting electric
generating or fuel production technology; and
(6) any other criteria the Secretary deems necessary or
appropriate.
(c) Reserve Amount.--Before entering into any agreements under this
subtitle, the Secretary, in consultation with the Director of the
Office of Management and Budget, shall determine an appropriate capital
reserve subsidy amount for any loan or loan guarantee provided by the
agreement. The Secretary, in consultation with the project developer,
shall determine the appropriate type of Federal financial assistance to
be provided for eligible projects.
(d) Confidentiality.--The Secretary and the Corporation shall
protect the confidentiality of any information that is certified by a
project developer to be commercially sensitive.
(e) Full Faith and Credit.--All loans or loan guarantees provided
by the Secretary under this subtitle shall be general obligations of
the United States backed by the full faith and credit of the United
States.
SEC. 253. LIMITATIONS.
(a) Secured Loans.--
(1) In general.--The financial assistance provided by this
subtitle for secured loans or loan guarantees--
(A) shall be available for new low or zero
greenhouse gas emitting energy generating or fuel
production facilities, including--
(i) no more than 3 integrated gasification
combined cycle coal power plants with carbon
capture and geological storage of greenhouse
gases;
(ii) no more than the first of each of the
3 advanced reactor design projects for which
applications for combined construction and
operating licenses have been filed on or before
December 31, 2015;
(iii) no more than 3 large scale biofuels
production facilities that encourage a
diversity of pioneer projects relying on
different feedstocks in different regions of
the country and maximizing the use of
cellulosic biomass; and
(iv) no more than 3 large scale solar
facilities of greater than 5 megawatts capacity
which begin operation after December 31, 2007,
and before January 1, 2011; and
(B) may not exceed 80 percent of eligible project
costs for each project.
(2) Government-caused delays.--Paragraph (1)(B) of this
subsection does not apply if--
(A) with respect to a nuclear power plant--
(i) the conditions specified in the
construction and operation license issued by
the Nuclear Regulatory Commission change; and
(ii) the changed conditions result in
project delays or changes in project scope
after the start of construction that are not
attributable to private sector project
management, construction, or variances from the
Nuclear Regulatory Commission's approved design
criteria or safety requirements; or
(B) with respect to an advanced coal power plant,
biofuels production facility, solar power facility, or
other eligible facility--
(i) the conditions specified in the
construction permit change; and
(ii) the changed conditions result in
project delays or changes in project scope
after the start of construction that are not
attributable to private sector project
management, construction, or variances from the
approved design criteria or safety
requirements.
(3) Additional assistance.--If paragraph (1)(B) of this
subsection does not apply for reasons described in paragraph
(2), then the financial assistance payable to the project
developer shall include additional capital costs, costs of
project oversight, lost replacement power, and calculated
interest, as determined appropriate by the Secretary of Energy.
(b) Loan Repayment Terms.--
(1) The repayment terms for non-recourse secured loans made
under this subtitle shall be negotiated among the Climate
Technology Financing Board, the joint venture partnership, and
the project developer prior to issuance of the loan and
commencement of construction.
(2) The project developer shall purchase the joint venture
partnership's interest in the project after the start of the
eligible project's commercial operation pursuant to the
conditions of the loan with the proceeds of refinancing from
non-Federal funding sources.
(3) The value of the joint venture partnership's interest
in the eligible project shall be determined in negotiations
prior to issuance of a secured loan under the subtitle.
(4) The interest rate on loans made under this subtitle
shall not be less than the yield on United States Treasury
securities of a similar maturity to the maturity of the loan on
the date of execution of the loan agreement.
(5) A secured loan for an eligible project under this
subtitle shall be non-recourse to the joint venture partnership
in the event of bankruptcy, insolvency, liquidation, or failure
of the project to start commercial operation when the project
is ready for commercial operation.
(c) Loan Guarantees.--
(1) In general.--A loan guarantee shall apply only when a
project developer defaults on a loan solely as a result of the
regulatory actions, directly applied to the project, of a
State, Federal or local government.
(2) Limitation.--Nothing in this subsection shall obligate
the Corporation or Secretary to provide payments in the event
of a default that results from a project developer's
malfeasance, misfeasance, or mismanagement of the construction
or operation of the project, or from conduct or circumstances
unrelated to the regulatory actions of any governmental entity.
SEC. 254. SOURCE OF FUNDING FOR PROGRAMS.
Notwithstanding any other provision of law, or any other provision
of this Act, authorizing or appropriating funds to carry out the
provisions of this Act, no funds may be made available to carry out any
activity under this subtitle except proceeds from the auction
authorized by section 162(g) of this Act, subject to the limitation in
section 162(g)(3).
SEC. 255. DEFINITIONS.
In this subtitle:
(1) Advanced reactor design.--The term ``advanced reactor
design'' means any reactor design approved and certified by the
Nuclear Regulatory Commission.
(2) Cellulosic ethanol.--The term ``cellulosic ethanol''
means ethanol produced from fibrous or woody plant materials.
(3) Commercial operation.--
(A) Nuclear power facility.--With respect to a
nuclear power plant, the term ``commercial operation''
means the date--
(i) on which a new nuclear power plant has
received a full power 40-year operating license
from the Nuclear Regulatory Commission; and
(ii) by which all Federal, State, and local
appeals and legal challenges to such operating
license have become final.
(B) Advanced coal power plants.--With respect to an
advanced coal power plant, the term ``commercial
operation'' means the date--
(i) on which a new power plant has received
a full power rating; and
(ii) by which all Federal, State, and local
appeals and legal challenges to the operating
license for the power plant have become final.
(4) Corporation.--The term ``Corporation'' means the
Climate Change Credit Corporation.
(5) Eligible project.--The term ``eligible project''
means--
(A) any commercial nuclear power facility for the
production of electricity that uses one or more
advanced reactor designs;
(B) any advanced coal power plant utilizing the
integrated gasification combined cycle technology with
carbon capture and geological storage of greenhouse
gases;
(C) any biofuels production facility which uses
cellulosic feedstock; or
(D) any power facility which uses solar energy for
the production of more than 75 percent of its annual
output, which output capacity shall not be less than 10
megawatts as determined by common engineering practice.
(6) Eligible project costs.--The term ``eligible project
costs'' means all costs related to the development and
construction of an eligible project under this subtitle,
including, without limitation, the cost of--
(A) development phase activities, including site
acquisition and related real property agreements,
environmental reviews, licensing and permitting,
engineering and design work, off-taker agreements and
arrangements, and other preconstruction activities;
(B) fabrication and acquisition of equipment,
project construction activities and construction
contingencies, project overheads, project management
costs, and labor and engineering costs incurred during
construction;
(C) capitalized interest necessary to meet market
requirements, reasonably required reserve funds,
capital issuance expenses, and other carrying costs
during construction; and
(D) any other costs that the Climate Technology
Financing Board deems reasonable and appropriate as
eligible project costs.
(7) Federal financial assistance.--The term ``Federal
financial assistance'' means project construction financing of
up to 80 percent of a project's eligible project costs in the
form of a non-recourse secured loan or loan guarantee.
(8) First-of-a-kind Engineering Costs.--The term ``first-
of-a-kind engineering costs'' means the extra costs associated
with the first units of a design category for engineering work
that develops the design details that finish plant
standardization up to a complete plant design and that can be
reused for building subsequent units.
(9) Joint venture partnership.--The term ``joint venture
partnership'' means a special purpose entity, including
corporations, partnerships, or other legal entities established
to develop, construct, and finance an eligible project and to
receive financing proceeds in the form of non-recourse secured
loans provided by the Secretary and private equity provided by
project developers.
(10) Loan.--The term ``loan'' means a direct non-recourse
loan issued to a joint venture partnership engaged in
developing an eligible project and funded by the Secretary
under this subtitle, which is subject to repayment by the joint
venture partnership under terms and conditions to be negotiated
among the project developer, joint venture partnership, and the
Secretary before the start of construction on the project.
(11) Loan guarantee.--The term ``loan guarantee'' means any
guarantee or other pledge by the Secretary to pay all or part
of the principle and interest on a loan or other debt
obligation issued by a project developer related to its equity
investment and funded by a lender.
(12) Project developer.--The term ``project developer''
means a corporation, partnership, or limited liability company
that--
(A) provides reasonable assurance to the Secretary
that the project developer can successfully manage
plant operations;
(B) has the financial capability to contribute 20
percent equity to the development of the project; and
(C) upon commercial operation, will purchase the
project from the joint venture partnership.
(13) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(14) Subsidy amount.--The term ``subsidy amount'' means the
amount of budget authority sufficient to cover the estimated
long-term cost to the Federal government of a loan, calculated
on a net present value basis, excluding administrative costs
and any incidental effects on governmental receipts or outlays,
in accordance with the provisions of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661 et seq.).
TITLE III--ADVANCED TECHNOLOGIES FOR A PRODUCTIVE, SECURE, AND CLEAN
ENERGY FUTURE
SEC. 301. FINDINGS.
The Congress finds the following:
(1) Innovation, the process that ultimately provides new
and improved products, manufacturing processes, and services,
is the basis for technological progress. This technological
advancement is a key element of sustained economic growth.
(2) The innovation economy is fundamentally different from
the industrial or even the information economy. It requires a
new vision and new approaches.
(3) Changing innovation processes and the evolution of the
relative contribution made by the private and public sectors
have emphasized the need for strong industry-science linkages.
(4) Patent regimes play an increasingly complex role in
encouraging innovation, disseminating scientific and technical
knowledge, and enhancing market entry and firm creation.
(5) Increasing participation and maintaining quality
standards in tertiary education in science and technology are
imperative to meet growing demand for workers with scientific
and technological knowledge and skills.
(6) Research, innovation, and human capital are our
principal strengths. By sustaining United States investments in
research and finding collaborative arrangements to leverage
existing resources and funds in a scarce budget environment, we
ensure that America remains at the forefront of scientific and
technological capability.
(7) Technology transfer of publicly funded research is a
critical mechanism for optimizing the return on taxpayer
investment, particularly where other benefits are not
measurable at all or are very long-term.
(8) Identifying metrics to quantify program effectiveness
is of increasing importance because the entire innovation
process is continuing to evolve in an arena of increasing
global competition. Metrics need to take into account a wide
range of steps in a highly complex process, as well as the
ultimate product or service, but should not constrain the
continued evolution or development of new technology transfer
approaches.
(9) The United States lacks a national innovation strategy
and agenda, including an aggressive public policy strategy that
energizes the environment for national innovation, and no
Federal agency is responsible for developing national
innovation policy.
Subtitle A--Innovation Infrastructure
SEC. 311. TECHNOLOGY TRANSFER OPPORTUNITIES.
(a) In General.--The Secretary of Commerce shall conduct a study of
technology transfer barriers, best practices, and outcomes of
technology transfer activities at Federal laboratories related to the
licensing and commercialization of energy efficient technologies, and
other technologies that, compared to similar technology in commercial
use, result in reduced emissions of greenhouse gases, increased ability
to adapt to climate change impacts, or increased sequestration of
greenhouse gases. The Secretary shall submit a report setting forth the
findings and conclusions of the study to the Senate Committee on
Commerce, Science, and Transportation and the House of Representatives
Committee on Science within 6 months after the date of enactment of
this Act. The Secretary shall work with the existing interagency
working group to address identified barriers to technology transfer.
(b) Business Opportunities Study.--The Secretary of Commerce shall
perform an analysis of business opportunities, both domestically and
internationally, available for climate change technologies. The
Secretary shall transmit the Secretary's findings and recommendations
from the first such analysis to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Science within 6 months after the date of enactment of this Act, and
shall transmit a revised report of such findings and recommendations to
those Committees annually thereafter.
(c) Agency Report To Include Information on Technology Transfer
Income and Royalties.--Paragraph (2)(B) of section 11(f) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710(f))
is amended--
(1) by striking ``and'' after the semicolon in clause (vi);
(2) by redesignating clause (vii) as clause (ix); and
(3) by inserting after clause (vi) the following:
``(vii) the number of fully-executed
licenses which received royalty income in the
preceding fiscal year for climate-change or
energy-efficient technology;
``(viii) the total earned royalty income
for climate-change or energy-efficient
technology; and''.
(d) Increased Incentives for Development of Climate-change or
Energy-efficient Technology.--Section 14(a) of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710c(a)) is amended--
(1) by striking ``15 percent,'' in paragraph (1)(A) and
inserting ``15 percent (25 percent for climate change-related
technologies),''; and
(2) by inserting ``($250,000 for climate change-related
technologies)'' after ``$150,000'' each place it appears in
paragraph (3).
SEC. 312. GOVERNMENT-SPONSORED TECHNOLOGY INVESTMENT PROGRAM.
(a) Purpose.--It is the purpose of this section to provide
financial support for the development, through private enterprise, of
technology that has potential application to climate change adaptation
and mitigation.
(b) Financial Support.--The Secretary of Commerce may establish a
nonprofit government sponsored enterprise for the purpose of providing
investment in private sector technologies that show promise for climate
change adaptation and mitigation applications.
(c) Terms; Conditions; Transparency.--The Secretary shall report
within 30 days after the end of each calendar quarter to the Senate
Committee on Commerce, Science, and Transportation and the House of
Representatives Committee on Science on its operations during that
preceding calendar quarter.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Commerce for the use of the enterprise
established under subsection (b) such sums as may be necessary to carry
out the purpose of this section.
SEC. 313. FEDERAL TECHNOLOGY INNOVATION PERSONNEL INCENTIVES.
The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3701 et seq.) is amended by adding at the end the following:
``SEC. 24. FEDERAL TECHNOLOGY INNOVATION PERSONNEL INCENTIVES.
``(a) In General.--The head of a Federal laboratory may authorize
the participation by any employee of the laboratory in an activity
described in subsection (b) in order to achieve the purposes of this
Act.
``(b) Authorized Activities.--
``(1) Commercial development participation arrangements.--
``(A) In general.--The head of a Federal laboratory
may, under the authority provided by section 12(b)(5)
of this Act, authorize an employee to participate, as
an officer or employee, in the creation of an
enterprise established to commercially exploit research
work realized in carrying out that employee's
responsibilities as an employee of that laboratory for
a period of up to 24 months. The authority may be
renewed for an additional 12-month period.
``(B) Limitations.--In addition to the requirements
set forth in section 12, an employee may not be
authorized under subparagraph (A) to participate in
such an enterprise if--
``(i) it would be prejudicial to the normal
functioning of the laboratory;
``(ii) by its nature, terms and conditions,
or the manner in which the authority would be
exercised, participation by that employ would
reflect adversely on the functions exercised by
that employee as an employee of the laboratory,
or risk compromising or calling in question the
independence or neutrality of the laboratory;
or
``(iii) the interests of the enterprise are
of such a nature as to be prejudicial to the
mission or integrity of the laboratory or
employee.
``(C) Relationship to laboratory employment.--
``(i) Representation.--The employee may not
represent the employee's official position or
the laboratory while participating in the
creation of the enterprise.
``(ii) Federal employment status.--
Beginning with the effective date of the
authorization under subsection (a), an employee
shall be placed in a temporary status without
duties or pay and shall cease all duties in
connection with the laboratory.
``(iii) Return to service.--At the end of
the authorization period, the employee may be
restored to his former position in the
laboratory upon termination of any employment
or professional relationship with the
enterprise.
``(2) Service in private sector advisory capacity.--
``(A) In general.--The head of a Federal laboratory
may, under the authority provided by section 12(b)(5)
of this Act, authorize an employee to serve, as a
member of the board of directors of, as a member of an
advisory committee to, or in any similar capacity with
a corporation, partnership, joint venture, or other
business enterprise for a period of not more than 5
years in order to provide advice and counsel on ways to
improve the diffusion and use of an invention or other
intellectual property of a Federal laboratory.
``(B) Qualifying investment.--Under the
authorization, an employee authorized to serve on the
board of directors of a corporation may purchase and
hold the number of qualifying shares of stock needed to
serve as a member of that board.
``(C) Participation in certain proceedings.--An
employee authorized under subparagraph (A) may not
participate in any grant evaluation, contract
negotiation, or other proceeding in which the
corporation, partnership, joint venture, or other
business enterprise has an interest during the
authorization period.''.
SEC. 314. INTERDISCIPLINARY RESEARCH AND COMMERCIALIZATION.
(a) In General.--The Director of the National Science Foundation
shall develop and implement a plan to increase and establish priorities
for funding for multidisciplinary and interdisciplinary research at
universities in support of the adaptation to and mitigation of climate
change. The plan shall--
(1) address the cross-fertilization and fusion of research
within and across the biological and physical sciences, the
spectrum of engineering disciplines, and entirely new fields of
scientific exploration; and
(2) include the area of emerging service sciences.
(b) Report to Congress.--The Director shall transmit a copy of the
plan to the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Science within 6 months
after the date of enactment of this Act.
(c) Service Science Defined.--In this section, the term ``service
science'' means the melding together of the fields of computer science,
operations research, industrial engineering, mathematics, management
science, decision sciences, social sciences, and legal sciences in a
manner that may transform entire enterprises and drive innovation at
the intersection of business and technology expertise.
SEC. 315. CLIMATE INNOVATION PARTNERSHIPS.
(a) In General.--The Secretary of Commerce, in consultation with
the Director of the National Science Foundation, shall create a program
of public-private partnerships that--
(1) focus on supporting climate change related regional
innovation;
(2) bridge the gap between the long-term research and
commercialization;
(3) focus on deployment of technologies needed by a
particular region in adapting or mitigating the impacts of
climate change; and
(4) support activities that are selected from proposals
submitted in merit-based competitions.
(b) Institutional Diversity.--In creating the program, the
Secretary and the Administrator shall--
(1) encourage institutional diversity; and
(2) provide that universities, research centers, national
laboratories, and other non-profit organizations are allowed to
partner with private industry in submitting applications.
(c) Grants.--The Secretary may make grants under the program to the
partnerships, but the Federal share of funding for any project may not
exceed 50 percent of the total investment in any fiscal year.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section.
SEC. 316. NATIONAL MEDAL OF CLIMATE STEWARDSHIP INNOVATION.
(a) In General.--There is established a National Medal of Climate
Stewardship Innovation, which shall be of such design and materials,
and bear such inscription, as the President may prescribe. The
President shall award the medal on the basis of recommendations
submitted by the National Science Foundation and the Secretary of
Commerce to individuals who, in the judgment of the President, are
deserving of special recognition by reason of their outstanding
contributions to knowledge in the field of climate change innovation.
(b) Criteria.--The medal shall be awarded in accordance with the
following criteria:
(1) Annual limit.--No more than 20 individuals may be
awarded the medal in any calendar year.
(2) Citizenship.--No individual may be awarded the medal
unless, at the time the award is made, the individual is--
(A) a citizen or other national of the United
States; or
(B) an alien lawfully admitted to the United States
for permanent residence who--
(i) has filed a petition for naturalization
in the manner prescribed by section 334 of the
Immigration and Nationality Act (8 U.S.C.
1445); and
(ii) is not permanently ineligible to
become a citizen of the United States.
(3) Posthumous award.--
(A) In general.--Notwithstanding paragraph (2), the
medal may be awarded posthumously to an individual who,
at the time of death, met the conditions set forth in
paragraph (2).
(B) 5-year limitation.--Notwithstanding
subparagraph (A), the medal may not be awarded
posthumously to an individual after the fifth
anniversary of that individual's death.
(c) Inscription and Certificate.--Each medal shall be suitably
inscribed. Each individual awarded the medal shall also receive a
citation descriptive of the award.
(d) Presentation.--The presentation of the medal shall be made by
the President with such ceremonies as the President deems proper,
including attendance by appropriate Members of Congress.
SEC. 317. MATH AND SCIENCE TEACHERS' ENHANCEMENT PROGRAM.
(a) In General.--The Director of the National Science Foundation
shall establish within the Foundation a climate change science and
technology enhancement program for teachers.
(b) Purpose.--The purpose of the program is to provide for
professional development of mathematics and science teachers at
elementary, middle, and secondary schools (as defined by the Director),
including improving the education and skills of those teachers with
respect to--
(1) teaching strategies;
(2) subject-area expertise; and
(3) the understanding of climate change science and
technology and the environmental, economic, and social impacts
of climate change on commerce.
(c) Program Areas.--In carrying out the program under this section,
the Director shall focus on the areas of--
(1) scientific measurements;
(2) tests and standards development;
(3) industrial competitiveness and quality;
(4) manufacturing;
(5) technology transfer; and
(6) any other area of expertise that the Director
determines to be appropriate.
(d) Application Procedure.--The Director shall prescribe procedures
and selection criteria for participants in the program.
(e) Awards.--The Director shall issue awards under the program to
participants. In issuing the awards, the Director shall ensure that the
maximum number of participants practicable participate in the program.
In order to ensure a maximum level of participation of participants,
the program under this section shall be conducted on an annual basis
during the summer months, when a majority of elementary, middle, and
secondary schools are not in classes.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Director for carrying out this section--
(1) $2,500,000 for fiscal year 2008; and
(2) $2,500,000 for fiscal year 2009.
SEC. 318. PATENT STUDY.
(a) In General.--The Director of the Patent and Trademark Office,
in consultation with representatives of interested parties in the
private sector, shall conduct a study to determine the extent to which
changes to the United States patent system are necessary to increase
the flow of climate change-related technologies. The study shall
address--
(1) the balance between the protection of the inventor and
the disclosure of information;
(2) the role of patents in innovation within the covered
sectors;
(3) the extent to which patents facilitate increased
investments in climate change research and development;
(4) the international deployment of United States developed
climate change related technologies on the United States patent
system;
(5) ways to leverage databases as innovation tools;
(6) best practices for collaborative standard setting; and
(7) any other issues the Director deems appropriate.
(b) Report.--Within 6 months after the date of enactment of this
Act, the Director shall transmit a report setting forth the findings
and conclusions of the study to the Congress.
SEC. 319. LESSONS-LEARNED PROGRAM.
(a) In General.--Within 180 days after the date of enactment of
this Act, the Secretary of Energy shall establish a national lessons-
learned and best practices program to ensure that lessons learned and
best practices concerning energy efficiency and greenhouse gas emission
reductions are available to the public. The program shall contain
consumer awareness initiatives including product labeling and campaigns
to raise public awareness. The Secretary shall determine the process
and frequency by which the information is provided.
(b) Program Content.--The program--
(1) may include experiences realized outside of the Federal
government;
(2) shall include criteria by which entries in the program
are determined;
(3) shall use a standardized, user-friendly format for data
reports; and
(4) may include any other matters the Secretary deems
appropriate.
SEC. 320. RESEARCH GRANTS.
Section 105 of the Global Change Research Act of 1990 (15 U.S.C.
2935) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Research Grants.--
``(1) Committee to develop list of priority research
areas.--The Committee shall develop a list of priority areas
for research and development on climate change that are not
being addressed by Federal agencies.
``(2) Director of ostp to transmit list to nsf.--The
Director of the Office of Science and Technology Policy shall
transmit the list to the National Science Foundation.
``(3) Funding through nsf.--
``(A) Budget request.--The National Science
Foundation shall include, as part of the annual request
for appropriations for the Science and Technology
Policy Institute, a request for appropriations to fund
research in the priority areas on the list developed
under paragraph (1).
``(B) Authorization.--For fiscal year 2008 and each
fiscal year thereafter, there are authorized to be
appropriated to the National Science Foundation not
less than $25,000,000, to be made available through the
Science and Technology Policy Institute, for research
in those priority areas.''.
SEC. 321. ABRUPT CLIMATE CHANGE RESEARCH.
(a) In General.--The Secretary, through the National Oceanic and
Atmospheric Administration, shall carry out a program of scientific
research on potential abrupt climate change designed--
(1) to develop a global array of terrestrial and
oceanographic indicators of paleoclimate in order sufficiently
to identify and describe past instances of abrupt climate
change;
(2) to improve understanding of thresholds and
nonlinearities in geophysical systems related to the mechanisms
of abrupt climate change;
(3) to incorporate these mechanisms into advanced
geophysical models of climate change; and
(4) to test the output of these models against an improved
global array of records of past abrupt climate changes.
(b) Abrupt Climate Change Defined.--In this section, the term
``abrupt climate change'' means a change in climate that occurs so
rapidly or unexpectedly that human or natural systems may have
difficulty adapting to it.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for fiscal year 2008 $60,000,000 to carry
out this section, such sum to remain available until expended.
SEC. 322. ENHANCED ENVIRONMENTAL MEASUREMENTS AND STANDARDS.
The National Institute of Standards and Technology Act (15 U.S.C.
271 et seq.) is amended--
(1) by redesignating sections 17 through 32 as sections 18
through 33, respectively; and
(2) by inserting after section 16 the following:
``SEC. 17. CLIMATE CHANGE STANDARDS AND PROCESSES.
``(a) In General.--The Director shall establish within the
Institute a program to perform and support research on global climate
change standards and processes, with the goal of providing scientific
and technical knowledge applicable to the reduction of greenhouse gases
(as defined in section 3(8) of the Climate Stewardship and Innovation
Act of 2007) and of facilitating implementation of section 321 of that
Act.
``(b) Research Program.--
``(1) In general.--The Director is authorized to conduct,
directly or through contracts or grants, a global climate
change standards and processes research program.
``(2) Research projects.--The specific contents and
priorities of the research program shall be determined in
consultation with appropriate Federal agencies, including the
Environmental Protection Agency, the National Oceanic and
Atmospheric Administration, and the National Aeronautics and
Space Administration. The program generally shall include basic
and applied research--
``(A) to develop and provide the enhanced
measurements, calibrations, data, models, and reference
material standards which will enable the monitoring of
greenhouse gases;
``(B) to assist in establishing a baseline
reference point for future trading in greenhouse gases
and the measurement of progress in emissions reduction;
``(C) that will be exchanged internationally as
scientific or technical information which has the
stated purpose of developing mutually recognized
measurements, standards, and procedures for reducing
greenhouse gases; and
``(D) to assist in developing improved industrial
processes designed to reduce or eliminate greenhouse
gases.
``(c) National Measurement Laboratories.--
``(1) In general.--In carrying out this section, the
Director shall utilize the collective skills of the National
Measurement Laboratories of the National Institute of Standards
and Technology to improve the accuracy of measurements that
will permit better understanding and control of these
industrial chemical processes and result in the reduction or
elimination of greenhouse gases.
``(2) Material, process, and building research.--The
National Measurement Laboratories shall conduct research under
this subsection that includes--
``(A) developing material and manufacturing
processes which are designed for energy efficiency and
reduced greenhouse gas emissions into the environment;
``(B) developing chemical processes to be used by
industry that, compared to similar processes in
commercial use, result in reduced emissions of
greenhouse gases or increased sequestration of
greenhouse gases; and
``(C) enhancing building performance with a focus
in developing standards or tools which will help
incorporate low- or no-emission technologies into
building designs.
``(3) Standards and tools.--The National Measurement
Laboratories shall develop standards and tools under this
subsection that include software to assist designers in
selecting alternate building materials, performance data on
materials, artificial intelligence-aided design procedures for
building subsystems and `smart buildings', and improved test
methods and rating procedures for evaluating the energy
performance of residential and commercial appliances and
products.
``(d) National Voluntary Laboratory Accreditation Program.--The
Director shall utilize the National Voluntary Laboratory Accreditation
Program under this section to establish a program to include specific
calibration or test standards and related methods and protocols
assembled to satisfy the unique needs for accreditation in measuring
the production of greenhouse gases. In carrying out this subsection the
Director may cooperate with other departments and agencies of the
Federal Government, State and local governments, and private
organizations.''.
SEC. 323. CLIMATE TECHNOLOGY CHALLENGE PROGRAM.
(a) In General.--The Secretary of Energy, in coordination with the
Climate Change Credit Corporation, shall develop and carry out a
program in fiscal years 2008 through 2011, to be known as the ``Climate
Technology Challenge Program''. The Secretary of Energy shall award
funding through the program to stimulate innovation in development,
demonstration, and deployment of technologies that have the greatest
potential for reducing greenhouse gas emissions. The program shall be
conducted as follows:
(1) The Secretary of Energy shall post a request for zero
or low greenhouse gas energy services or products along with a
suggested level of funding for each competition.
(2) The Secretary of Energy shall award the funding to the
lowest bidder in each competition who meets all other
qualifications in a form of a production incentive to supply--
(A) the requested services for a specified period
of time; or
(B) the requested product within a specified period
of time.
(b) Funding.--
(1) Source.--Notwithstanding any other provision of law, or
any other provision of this Act, authorizing or appropriating
funds to carry out the provisions of this Act, no funds may be
made available to carry out any activity under this subtitle
except proceeds from the auction authorized by section 162(g)
of this Act, subject to the limitation in section 162(g)(3).
(2) Operating funds.--Beginning with fiscal year 2010, the
Climate Change Credit Corporation shall administer the Climate
Technology Challenge Program using funds generated under
section 202 of this Act.
(c) Program Requirements.--
(1) Competitive process.--Recipients of awards under the
program shall be selected through competitions conducted by the
Secretary of Energy.
(2) Advertisement of competitions.--The Secretary of Energy
shall widely advertise any competitions conducted under the
program.
(3) Categories of competitions.--The Secretary of Energy
shall conduct separate competitions in the following areas of
energy and fuel production and services:
(A) Advanced coal (including integrated
gasification combined cycle) with carbon capture and
storage.
(B) Renewable electricity.
(C) Energy efficiency (including transportation).
(D) Advanced technology vehicles.
(E) Transportation fuels.
(F) Carbon sequestration and storage.
(G) Zero and low emissions technologies.
(H) Adaptation technologies.
(I) The Secretary of Energy may also conduct
competition for a general category to stimulate
additional, unanticipated advances in technology.
(4) Evaluations and criteria for competitions.--
(A) Panel of experts.--The Secretary of Energy
shall establish a separate panel of experts to evaluate
proposals submitted under each competition.
(B) Competition criteria.--The Secretary of Energy,
in consultation with other relevant Federal agency
heads, shall set minimum criteria, including
performance and safety criteria, for each competition.
Proposals shall be evaluated on their ability to
reduce, avoid, or sequester greenhouse gas emissions at
a given price.
(C) Full life cycle.--All proposals within a
competition shall compete on full life cycle avoided
greenhouse gas emissions (as weighted by global warming
potential) per dollar of incentive.
(5) Report of awards.--In 2011 and every 5 years thereafter
the Secretary of Energy shall issue a report on the awards
granted by the program, funding provided, and greenhouse gas
emissions avoided or sequestered.
(6) Program evaluation.--The Secretary of Energy, in
coordination with the National Academies of Science, shall
evaluate the continued necessity of the program and future
funding needs after fiscal year 2011. The evaluation shall be
submitted 3 months before the end of fiscal year 2011 to the
Congress and the Climate Change Credit Corporation.
(7) Review and revision by corporation.--The Climate Change
Credit Corporation shall review and revise the awards program
every 5 years starting in 2011, issuing new guidelines for the
next 5 years of Climate Technology Challenge Program by the end
of the fiscal year in which the evaluation in paragraph (6) is
reported. The Climate Change Credit Corporation shall assess
and adjust the categories of competitions as described in
paragraph (3) to ensure new developing technologies that
reduce, avoid, or sequester greenhouse gases and are in need of
financial assistance for further development and deployment are
the focus of the awards program.
(d) Budgeting and Awarding of Funds.--
(1) Availability of funds.--Any funds appropriated to carry
out this section shall remain available until expended, but for
not more than 4 fiscal years.
(2) Deposit and withdrawal of funds.--When an award is
offered, the Secretary of Energy shall deposit the total amount
of funding made available for that award in the Climate
Technology Challenge Trust Fund. If funding expires before an
award is granted, the Secretary of Energy shall deposit
additional funds in the account to ensure the availability of
funding for all awards. If an award competition expires before
its goals are met, the Secretary of Energy may redesignate
those funds for a new challenge, but any redesignated funds
will be considered as newly deposited for the purposes of
paragraph (3). All cash awards made under this section shall be
paid from that account.
(3) Maximum award.--No competition under the program may
result in the award of more than $100,000,000 without the
approval of the Secretary of Energy.
(4) Post-2012 funding.--Funding for the competitions after
fiscal year 2012 shall be taken from the Climate Change Credit
Corporation.
(e) Registration; Assumption of Risk.--
(1) Registration.--Each potential recipient of an award in
a competition under the program under this section shall
register for the competition.
(2) Assumption of risk.--In registering for a competition
under paragraph (1), a potential recipient of a prize shall
assume any and all risks, and waive claims against the United
States Government and its related entities (including
contractors and subcontractors at any tier, suppliers, users,
customers, cooperating parties, grantees, investigators, and
detailees), for any injury, death, damage, or loss of property,
revenue, or profits, whether direct, indirect, or
consequential, arising from participation in the competition,
whether such injury, death, damage, or loss arises through
negligence or otherwise, except in the case of willful
misconduct.
(f) Relationship to Other Authority.--The Secretary of Energy may
exercise the authority in this section in conjunction with or in
addition to any other authority of the Secretary to acquire, support,
or stimulate basic and applied research, technology development, or
prototype demonstration projects that promote reduced greenhouse gas
emissions.
Subtitle B--Deploying Advanced Technologies and Practices
SEC. 351. LOW- OR ZERO-EMISSIONS ELECTRICITY GENERATION.
(a) Energy Audits.--
(1) In general.--The Secretary of Energy shall establish a
program to reduce greenhouse gas emissions through the
deployment of energy efficiency measures, including appropriate
technologies, by large commercial customers by providing for
energy audits. The program shall provide incentives for large
users of electricity or natural gas to obtain an energy audit.
(2) Components.--The energy audit shall provide users with
an inventory of potential energy efficiency measures, including
appropriate technologies, and their cost savings over time,
along with financing options to initiate the project.
(3) Reimbursement of audit costs.--If any of the
recommendations of an energy audit implemented by a facility
owner result in cost savings greater than 5 times the cost of
the original audit, then the facility owner shall reimburse the
Secretary for the cost of the audit.
(b) Advanced Research and Development for Safety and
Nonproliferation.--The Secretary of Energy shall establish, operate,
and report biannually to Congress the results of--
(1) a program of research and development focused on
advanced once-through fuel cycles;
(2) a Nuclear System Modeling project to carry out the
analysis, research, simulation, and collection of engineering
data needed to evaluate all fuel cycles with respect to cost,
inherent safety, waste management and proliferation-avoidance
and -resistance; and
(3) an Advanced Diversified Waste-Disposal Research
Program, to complement the current repository authorized under
the Nuclear Waste Policy Act, for deep-bore hole disposal
options, alternative geological environments, and improved
engineered barriers.
(c) Government-Industry Partnerships for First-of-a-Kind
Engineering Design.--
(1) In general.--The Corporation may provide funding for a
cost-sharing program to address first-of-a-kind engineering
costs inherent in building the first facility of a
substantially new design that generates electricity with low or
no net greenhouse gas emissions or produces transportation
fuels that result in low or no net greenhouse gas emissions,
including Integrated Gasification Combined Cycle Advanced Coal
power generating facilities using carbon capture technology
with geological storage of greenhouse gases, advanced reactor
designs, large scale biofuels facilities that maximize the use
of cellulosic biomass, and large scale solar concentrating
power facilities.
(2) Project selection.--The Secretary of Energy in
coordination with the Corporation shall select the final
designs to be supported, in terms of reducing greenhouse gas
emissions, demonstrating a new technology, meeting other clean
air attainment goals, generating economic benefits,
contributing to energy security, contributing to fuel and
technology diversity, maintaining price stability, and
attaining cost effectiveness and economic competitiveness.
(3) Cost-sharing limitations.--
(A) Corporation's share of costs.--Costs for the
program shall be shared equally between the Corporation
and the builder of such first facilities.
(B) Nuclear reactors.--Funding under this section
for any nuclear facility--
(i) may not exceed $200,000,000 for an
individual project; and
(ii) shall be available for no more than 1
of each of the 3 designs certified by the
Nuclear Regulatory Commission.
(4) Reimbursement of costs.--For any subsequently-built
facility that uses a design supported by the cost-sharing
program under this section, the Secretary of Energy and the
Corporation shall specify an amount to be paid to the
Corporation in order for the Corporation to receive full
reimbursement for costs the Corporation incurred in connection
with the design, considering the program's objectives,
including the costs of promoting the deployment of cost-
effective, economically competitive technologies with no or low
net greenhouse gas emissions.
(5) Reimbursement for delay.--If the construction of such a
first facility of a substantially new design is not started
within 10 years after the date on which a commitment under the
cost-sharing program is made by the Secretary, then the
industry partner shall reimburse the Corporation for any costs
incurred by the Corporation under the program.
(6) Jurisdiction.--
(A) Nuclear regulatory commission.--Nothing in this
Act shall affect the jurisdiction of the Nuclear
Regulatory Commission over nuclear power plant design
approvals or combined construction and operating
licenses pursuant to the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.).
(B) Regulatory agencies.--Nothing in this Act
affects the jurisdiction of any Federal, State, or
local government regulatory agency.
(d) Demonstration Program.--
(1) Nuclear regulatory commission licensing process.--
Within 24 months after the date of enactment of this Act, the
Secretary of Energy shall establish a demonstration program to
reduce the first-time regulatory costs of the current Nuclear
Regulatory Commission licensing process incurred by the first
applicant using an advanced reactor design.
(2) Permits; licenses; cost-sharing.--
(A) The demonstration program shall--
(i) address the Early Site Permit
applications and the combined construction and
operating license applications; and
(ii) be jointly funded by the Department of
Energy and the applicant.
(B) The Secretary shall work with the applicant to
determine the appropriate percentage of costs that the
Department and the applicant shall each provide.
(3) Reimbursement for license transfer.--If an applicant
decides to transfer a permit granted by the Commission under
the program to another entity, the applicant shall reimburse
the Department for its costs in obtaining the permit.
SEC. 352. LOW- OR ZERO-EMISSIONS TRANSPORTATION.
(a) In General.--The Secretary of Energy, the Administrator of the
Environmental Protection Agency, and the Secretary of Transportation
shall establish jointly a competitive, merit-based research program to
fund proposals that--
(1) develop technologies that aid in reducing fuel use or
reduce greenhouse gas emissions associated with any fuel;
(2) further develop existing or new technologies to create
renewable fuels created from less carbon or energy-intensive
practices than current renewable fuel production;
(3) remove existing barriers for deployment of existing
fuels that dramatically reduce greenhouse gas emissions;
(4) support low-carbon transportation fuels, including
renewable hydrogen, advanced cellulosic ethanol, and biomass-
based diesel substitutes, and the technical hurdles to market
entry;
(5) support technologies that facilitate meeting
transportation energy requirements with electricity produced by
low- or zero-carbon stationary sources of electricity;
(6) support short-term and long-term technology
improvements for United States cars and light trucks that
reduce greenhouse gas emissions, including advanced, high-power
hybrid vehicle batteries, advanced gasoline engine designs,
fuel cells, hydrogen storage, power electronics, and
lightweight materials;
(7) support advanced heavy-duty truck technologies to
reduce greenhouse gas emissions from the existing and new
fleets, including aerodynamics, weight reduction, improved
tires, anti-idling technology, high-efficiency engines, and
hybrid systems; or
(8) expand research into the climatological impacts of air
travel and support advanced technologies to reduce greenhouse
gas emissions from aircraft including advanced turbines,
aerodynamics, and logistics technology that reduces delays,
increases load factors and cuts in-air emissions.
(b) Real-World Test Procedures.--The Administrator of the
Environmental Protection Agency, in consultation with the Secretary of
Transportation, shall--
(1) conduct research and establish a Federal test procedure
for certifying fuel economy of heavy duty vehicles; and
(2) update Federal test procedures for certifying fuel
economy of automobiles and light duty trucks so the results
better reflect real-world operating conditions.
(c) Incorporation Into Program.--The Secretaries shall ensure that
the program established under subsection (a) is incorporated into the
United States Climate Technology Challenge Program.
(d) Marketing Study.--The Secretary of Transportation, in
coordination with the Secretary of Commerce, shall conduct a study on
how the government can accelerate the market for low-carbon vehicles.
The results of the study shall be submitted to the Congress within 6
months after the date of enactment of this Act.
(e) Retooling of Advanced Vehicle Manufacturing.--
(1) In general.--Within 24 months after the date of
enactment of this Act, the Secretary of Energy shall establish
a program to demonstrate the effectiveness of retooling an
existing vehicle or vehicle component manufacturing facility to
reduce reduced greenhouse gas emissions from vehicles and
increasing competitiveness of advanced technology vehicle
production facilities.
(2) Program elements.--
(A) Activities supported.--The demonstration
program shall be designed--
(i) to re-equip an existing manufacturing
facility to produce advanced technology
vehicles or components that will result in
reduced greenhouse gas emissions; and
(ii) to conduct engineering integration
activities of advanced technological vehicles
and components.
(B) Funding.--The program shall be jointly funded
by the private sector and the Department of Energy. The
Secretary of Energy shall work with participating
entities to determine the appropriate percentage of
costs that each shall provide.
(C) Eligible components and activities.--The
Secretary of Energy, in coordination with the
Administrator of the Environmental Protection Agency
and the Secretary of Transportation, shall determine
what advanced technology components and engineering
integration activities will qualify for support under
the program.
(D) Eligible costs.--Costs eligible to be shared
under this subsection include the cost of engineering
tasks related to--
(i) incorporating qualifying components
into the design of advanced technology
vehicles; and
(ii) designing new tooling and equipment
for production facilities that produce
qualifying components or advanced technology
vehicles.
(3) Limitation.--No more than 2 facilities may receive
financial assistance under the program for re-equipment and
expansion or for engineering integration.
(4) Advanced technology vehicle defined.--In this
subsection, the term ``advanced technology vehicle'' means a
light duty motor vehicle that is either a hybrid or advanced
lean burn technology motor vehicle, and that meets the
following additional performance criteria:
(A) The vehicle shall meet the Tier II Bin 5
emission standard established in regulations prescribed
by the Administrator under that Act.
(B) The vehicle shall meet any new emission
standard for fine particulate matter prescribed by the
Administrator under that Act.
(C) The vehicle shall achieve at least 125 percent
of the base year city fuel economy for its weight
class.
SEC. 353. MEASURES TO INCREASE ENERGY EFFICIENCY.
(a) In General.--The Secretary of Energy shall establish a program
to reduce greenhouse gas emissions through the deployment of energy
efficiency measures, including appropriate technologies, by large
commercial customers by providing for energy audits. The program shall
provide incentives for large users of electricity or natural gas to
obtain an energy audit.
(b) Components.--The energy audit shall provide users with an
inventory of potential energy efficiency measures, including
appropriate technologies, and their cost savings over time, along with
financing options to initiate the project.
(c) Reimbursement of Audit Costs.--If any of the recommendations of
an energy audit implemented by a facility owner result in cost savings
greater than 5 times the cost of the original audit, then the facility
owner shall reimburse the Secretary for the cost of the audit.
SEC. 354. GEOLOGICAL STORAGE.
(a) In General.--The Secretary of Energy, in consultation with the
Secretary of Agriculture and the Administrator of the Environmental
Protection Agency, shall establish guidelines for setting individual
project baselines for reductions of greenhouse gas emissions and
greenhouse gas storage in various types of geological formations to
serve as the basis for determining the amount of greenhouse gas
reductions produced by the project.
(b) Specific Activities.--The Secretary of Energy, in consultation
with the Director of the U.S. Geological Survey, shall--
(1) develop local and regional databases on existing
practices and technologies for greenhouse gas injection in
underground aquifers;
(2) develop methods for computation of additionality
discounts for prospective greenhouse gas reductions or offsets
due to carbon dioxide injection and storage in underground
aquifers;
(3) develop accepted standards for monitoring of carbon
dioxide stored in geological subsurface reservoirs by--
(A) developing minimum suitability standards for
identifying and monitoring of geological storage sites
including oil, gas, and coal bed methane reservoir and
deep saline aquifers; and
(B) testing monitoring standards using sites with
long term (multi-decade) large injections of carbon
dioxide into oil field enhanced recovery projects; and
(4) address non-permanence and risk of release of
sequestered greenhouse gas by--
(A) establishing guidelines for risk assessment of
inadvertent greenhouse gas release, both long-term and
short-term, associated with geological sequestration
sites; and
(B) developing insurance instruments to address
greenhouse gas release liability in geological
sequestration.
(c) National Geological Carbon Sequestration Assessment.--
(1) Findings.--The Congress finds the following:
(A) One of the most promising options for avoiding
emissions of carbon dioxide is through long-term
storage by geological sequestration in stable
geological formations, which involves--
(i) capturing carbon dioxide from
industrial sources; and
(ii) injecting the captured carbon dioxide
into geological storage sites, such as deep
saline formations, unmineable coal seams, and
depleted gas and oil fields.
(B) As of the date of introduction of this Act,
there are only very broad estimates of national
geological storage capacity.
(C) The potential to recover additional oil and gas
resources through enhanced oil and gas recovery using
captured carbon dioxide emissions is an option that
could add the equivalent of tens-of-billions of barrels
of oil to the national resource base.
(D) An initial geological survey of storage
capacity in the subsurface of sedimentary basins in the
United States would--
(i) provide estimates of storage capacity
based on clearly defined geological parameters
with stated ranges of uncertainty;
(ii) allow for an initial determination of
whether a basin or 1 or more portions of the
basin may be developed into a storage site; and
(iii) provide information on--
(I) a baseline for monitoring
injections and post injection phases of
storage; and
(II) early opportunities for
matching carbon dioxide sources and
sinks for early deployment of zero-
emissions fossil fuel plants using
capture and storage technologies.
(2) National geological carbon sequestration assessment.--
(A) Development and testing of assessment
methodology.--
(i) In general.--Not later than 1 year
after the date of enactment of this Act, the
Director of the United States Geological Survey
shall develop and test methods for the conduct
of a national assessment of geological storage
capacity for carbon dioxide.
(ii) Opportunity for review and comment.--
During the period beginning on the date that is
180 days after the date of enactment of this
Act and ending on the date of completion of the
development and testing of the methodologies
under clause (i), the Director shall provide
the Under Secretary for Oceans and Atmosphere
of the Department of Commerce, the Secretary of
Energy, the Administrator of the Environmental
Protection Agency, the Director of the Minerals
Management Service, the Director of the Bureau
of Land Management, the heads of other Federal
land management agencies, the heads of State
land management agencies, industry
stakeholders, and other interested parties with
an opportunity to review and comment on the
proposed methodologies.
(B) Assessment.--
(i) In general.--The Director shall conduct
the assessment during the period beginning on
the date on which the development and testing
of the methodologies is completed under
subparagraph (A) and ending 4 years after the
date of enactment of this Act.
(ii) Availability of information.--The
Director shall establish an Internet database
accessible to the public that provides the
results of the assessment, including a detailed
description of the data collected under the
assessment.
(iii) Report.--Not later than 1 year after
the date on which the assessment is completed
under clause (i), the Director shall submit to
the appropriate committees of Congress and the
President a report that describes the findings
of the assessment.
(3) Authorization of Appropriations.--There are authorized
to be appropriated $15,000,000 to carry out this section for
fiscal years 2008 through 2011.
SEC. 355. AGRICULTURAL SEQUESTRATION.
(a) In General.--The Director of the Office of Science and
Technology Policy shall establish an interagency panel of
representatives from the United States Forest Service, Agriculture
Research Service, Agricultural Experiment Stations and Extension
Service, Economic Research Service, Natural Resource Conservation
Service, Environmental Protection Agency, the U.S. Geological Survey,
and the National Institute of Standards and Technology to establish
standards for measurement (and re-measurement) of sequestered carbon,
including lab procedures, field sampling methods, and accuracy of
sampling statistics.
(b) Duties.--The interagency panel shall--
(1) develop discounted default values for the amount of
greenhouse gas emission reductions due to carbon sequestration
or emissions reductions from improved practices and
technologies;
(2) develop technologies for low-cost laboratory and field
measurement;
(3) develop procedures to improve the accuracy of equations
used to estimate greenhouse gas emissions reductions produced
by adoption of improved land management technologies and
practices;
(4) develop local and regional databases on carbon
sequestration in soils and biomass, greenhouse gas emissions,
and adopted land management technologies and practices;
(5) develop computation methods for additionality discounts
for prospective greenhouse gas offsets;
(6) develop entitywide reporting requirements to evaluate
project-level leakage;
(7) develop commodity-specific greenhouse gas offset
discount factors for market-level leakage, and update those
factors periodically;
(8) develop guidelines and standards for greenhouse gas
offset and reduction project monitoring and verification and
uniform qualifications for third party verifiers, including
specification of conflict of interest conditions;
(9) increase landowner accessibility to technologies and
practices by--
(A) improving and expanding availability and
adoption of best management practices for soils, crop
residues, and forests to achieve additional carbon
sequestration that meets standards as bona fide
greenhouse gas offsets;
(B) improving and expanding availability and
adoption of best management practices for soils, crop
residues, and forests to achieve reductions in
emissions of carbon dioxide, methane, and nitrous
oxides that meet standards as bona fide greenhouse gas
emissions reductions; and
(C) establishing incentives for land managers to
help finance investments in facilities that produce
bona fide greenhouse gas offsets or reductions through
carbon sequestration or direct greenhouse gas emissions
reductions; and
(10) establish best practices to address non-permanence and
risk of release of sequestered greenhouse gases by--
(A) assessing and quantifying risks, both advertent
and inadvertent, of release of greenhouse gases
sequestered in soils and biomass; and
(B) establishing insurance instruments concerning
the release, both advertent and inadvertent, of
sequestered greenhouse gases.
(c) Additionality Defined.--In this section the term
``additionality'' means emissions reduction and sequestration
activities that result in atmospheric benefits that would not otherwise
have occurred.
TITLE IV--ADAPTING TO CLIMATE CHANGE IMPACTS
SEC. 401. ADAPTATION TECHNOLOGIES.
(a) In General.--The Director of the Office of Science and
Technology Policy shall establish a program on adaptation technologies
as part of the Climate Technology Challenge Program. The Director shall
perform an assessment of the climate change technological needs of
various regions of the country. This assessment shall be provided to
the Senate Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Science within 6 months after the
date of enactment of this Act.
(b) Regional Estimates.--The Director of the Office of Science and
Technology Policy, in consultation with the Secretaries of
Transportation, Homeland Security, Agriculture, Housing and Urban
Development, Health and Human Services, Defense, Interior, Energy, and
Commerce, the Administrator of the Environmental Protection Agency, the
Director of U.S. Geologic Survey, and other such Federal offices as the
Director deems necessary, along with relevant State agencies, shall
perform 6 regional infrastructure cost assessments covering the United
States, and a national cost assessment, to provide estimates of the
range of costs that should be anticipated for adaptation to the impacts
of climate change. The Director shall develop those estimates for low,
medium, and high probabilities of climate change and its potential
impacts. The assessments shall be provided to the Senate Committee on
Commerce, Science, and Transportation and the House of Representatives
Committee on Science within 1 year after the date of enactment of this
Act.
(c) Adaptation Plan.--
(1) In general.--Within 6 months after the date of
enactment of this Act, the Secretary of Commerce shall submit a
climate change adaptation plan for the United States to the
Congress. The adaptation plan shall be based upon assessments
performed by the United Nations Intergovernmental Panel on
Climate Change, those as required by the 1990 Global Change
Research Act, and any other scientific peer-reviewed regional
assessments.
(2) Required components.--The adaptation plan shall
include--
(A) a prioritized list of vulnerable systems and
regions;
(B) coordination requirements between Federal,
State, and local governments to ensure that key public
infrastructure, safety, health, and land use planning
and control issues are addressed;
(C) coordination requirements among the Federal
government, industry, and communities;
(D) an assessment of climate change science
research needs including probabilistic assessments as
an aid to planning;
(E) an assessment of climate change technology
needs; and
(F) regional and national costs assessments for the
range of costs that should be anticipated for adapting
to the impacts of climate change.
SEC. 402. MITIGATING CLIMATE CHANGE'S IMPACTS ON THE POOR.
(a) In General.--The Secretary shall conduct research on the impact
of climate change on low-income populations everywhere in the world.
The research shall--
(1) include an assessment of the adverse impact of climate
change on low-income populations in the United States and on
developing countries;
(2) identify appropriate climate change adaptation measures
and programs for developing countries and low-income
populations and assess the impact of those measures and
programs on low-income populations;
(3) identify appropriate climate change mitigation
strategies and programs for developing countries and low-income
populations and assess the impact of those strategies and
programs on developing countries and on low-income populations
in the United States; and
(4) include an estimate of the costs of developing and
implementing those climate change adaptation and mitigation
programs.
(b) Report.--Within 1 year after the date of enactment of this Act,
the Secretary shall transmit a report on the research conducted under
subsection (a) to the Senate Committee on Commerce, Science, and
Transportation, the Senate Committee on Environment and Public Works,
the House of Representatives Committee on Science, and the House of
Representatives Committee on Energy and Commerce.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $2,000,000 to carry out the research
required by subsection (a).
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