I 111th CONGRESS 1st Session H. R. 2998 IN THE HOUSE OF REPRESENTATIVES June 23, 2009 Mr. Waxman (for himself and Mr. Markey of Massachusetts) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Foreign Affairs, Ways and Means, Financial Services, Education and Labor, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the American Clean Energy and Security Act of 2009. (b)

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. International participation. Title I—Clean Energy Subtitle A—Combined Efficiency and Renewable Electricity Standard Sec. 101. Combined efficiency and renewable electricity standard. Sec. 102. Clarifying State authority to adopt renewable energy incentives. Subtitle B—Carbon Capture and Sequestration Sec. 111. National strategy. Sec. 112. Regulations for geologic sequestration sites. Sec. 813. Geologic sequestration sites. Sec. 113. Studies and reports. Sec. 114. Carbon capture and sequestration demonstration and early deployment program. Sec. 115. Commercial deployment of carbon capture and sequestration technologies. Sec. 786. Commercial deployment of carbon capture and sequestration technologies. Sec. 116. Performance standards for coal-fueled power plants. Sec. 812. Performance standards for new coal-fired power plants. Subtitle C—Clean Transportation Sec. 121. Electric vehicle infrastructure. Sec. 122. Large-scale vehicle electrification program. Sec. 123. Plug-in electric drive vehicle manufacturing. Sec. 124. Investment in clean vehicles. Sec. 125. Advanced technology vehicle manufacturing incentive loans. Sec. 126. Amendment to renewable fuels standard. Sec. 127. Open fuel standard. Sec. 128. Diesel emissions reduction. Sec. 129. Loan guarantees for projects to construct renewable fuel pipelines. Subtitle D—State Energy and Environment Development Accounts Sec. 131. Establishment of SEED Accounts. Sec. 132. Support of State renewable energy and energy efficiency programs. Sec. 133. Support of Indian renewable energy and energy efficiency programs. Subtitle E—Smart Grid Advancement Sec. 141. Definitions. Sec. 142.  Assessment of Smart Grid cost effectiveness in products. Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels. Sec. 144. Smart Grid peak demand reduction goals. Sec. 145.  Reauthorization of energy efficiency public information program to include Smart Grid information. Sec. 146. Inclusion of Smart Grid features in appliance rebate program. Subtitle F—Transmission Planning Sec. 151. Transmission planning. Sec. 152. Net metering for Federal agencies. Sec. 153. Support for qualified advanced electric transmission manufacturing plants, qualified high efficiency transmission property, and qualified advanced electric transmission property. Subtitle G—Technical Corrections to Energy Laws Sec. 161. Technical corrections to Energy Independence and Security Act of 2007. Sec. 162. Technical corrections to Energy Policy Act of 2005. Subtitle H—Energy and Efficiency Centers and Research Sec. 171. Energy Innovation Hubs. Sec. 172. Advanced energy research. Sec. 173. Building Assessment Centers. Sec. 174. Centers for Energy and Environmental Knowledge and Outreach. Subtitle I—Nuclear and Advanced Technologies Sec. 181. Revisions to loan guarantee program authority. Sec. 182. Purpose. Sec. 183. Definitions. Sec. 184. Clean energy investment fund. Sec. 185. Energy technology deployment goals. Sec. 186. Clean energy deployment administration. Sec. 187. Direct support. Sec. 188. Indirect support. Sec. 189. Federal credit authority. Sec. 190. General provisions. Sec. 191. Conforming amendments. Subtitle J—Miscellaneous Sec. 195. Increased hydroelectric generation at existing Federal facilities. Sec. 196. Clean technology business competition grant program. Sec. 197. National Bioenergy Partnership. Sec. 198. Office of Consumer Advocacy. Title II—Energy Efficiency Subtitle A—Building Energy Efficiency Programs Sec. 201. Greater energy efficiency in building codes. Sec. 202. Building retrofit program. Sec. 203. Energy efficient manufactured homes. Sec. 204. Building energy performance labeling program. Sec. 205. Tree planting programs. Sec. 206. Energy efficiency for data center buildings. Subtitle B—Lighting and Appliance Energy Efficiency Programs Sec. 211. Lighting efficiency standards. Sec. 212. Other appliance efficiency standards. Sec. 213. Appliance efficiency determinations and procedures. Sec. 214. Best-in-Class Appliances Deployment Program. Sec. 215. WaterSense. Sec. 216. Federal procurement of water efficient products. Sec. 217. Water efficient product rebate programs. Sec. 218. Certified stoves program. Sec. 219. Energy Star standards. Subtitle C—Transportation Efficiency Sec. 221. Emissions standards. Part B—Mobile Sources Sec. 821. Greenhouse gas emission standards for mobile sources. Sec. 222. Greenhouse gas emissions reductions through transportation efficiency. Part D—Transportation Emissions Sec. 841. Greenhouse gas emissions reductions through transportation efficiency. Sec. 223. SmartWay transportation efficiency program. Sec. 822. SmartWay transportation efficiency program. Sec. 224. State vehicle fleets. Subtitle D—Industrial Energy Efficiency Programs Sec. 241. Industrial plant energy efficiency standards. Sec. 242. Electric and thermal waste energy recovery award program. Sec. 243. Clarifying election of waste heat recovery financial incentives. Sec. 244. Motor market assessment and commercial awareness program. Sec. 245. Motor efficiency rebate program. Subtitle E—Improvements in energy savings performance contracting Sec. 251. Energy savings performance contracts. Subtitle F—Public Institutions Sec. 261. Public institutions. Sec. 262. Community energy efficiency flexibility. Sec. 263. Small community joint participation. Sec. 264. Low income community energy efficiency program. Subtitle G—Miscellaneous Sec. 271. Energy efficient information and communications technologies. Sec. 272. National energy efficiency goals. Sec. 273. Affiliated island energy independence team. Sec. 274. Product carbon disclosure program. Title III—Reducing Global Warming Pollution Sec. 301. Short title. Subtitle A—Reducing Global Warming Pollution Sec. 311. Reducing global warming pollution. Title VII—Global Warming Pollution Reduction Program Part A—Global Warming Pollution Reduction Goals and Targets Sec. 701. Findings and purpose. Sec. 702. Economy-wide reduction goals. Sec. 703. Reduction targets for specified sources. Sec. 704. Supplemental pollution reductions. Sec. 705. Review and program recommendations. Sec. 706. National Academy review. Sec. 707. Presidential response and recommendations. Part B—Designation and registration of greenhouse gases Sec. 711. Designation of greenhouse gases. Sec. 712. Carbon dioxide equivalent value of greenhouse gases. Sec. 713. Greenhouse gas registry. Part C—Program rules Sec. 721. Emission allowances. Sec. 722. Prohibition of excess emissions. Sec. 723. Penalty for noncompliance. Sec. 724. Trading. Sec. 725. Banking and borrowing. Sec. 726. Strategic reserve. Sec. 727. Permits. Sec. 728. International emission allowances. Part D—Offsets Sec. 731. Offsets Integrity Advisory Board. Sec. 732. Establishment of offsets program. Sec. 733. Eligible project types. Sec. 734. Requirements for offset projects. Sec. 735. Approval of offset projects. Sec. 736. Verification of offset projects. Sec. 737. Issuance of offset credits. Sec. 738. Audits. Sec. 739. Program review and revision. Sec. 740. Early offset supply. Sec. 741. Environmental considerations. Sec. 742. Trading. Sec. 743. International offset credits. Part E—Supplemental Emissions Reductions from Reduced Deforestation Sec. 751. Definitions. Sec. 752. Findings. Sec. 753. Supplemental emissions reductions through reduced deforestation. Sec. 754. Requirements for international deforestation reduction program. Sec. 755. Reports and reviews. Sec. 756. Legal effect of part. Sec. 312. Definitions. Sec. 700. Definitions. Subtitle B—Disposition of allowances Sec. 321. Disposition of allowances for global warming pollution reduction program. Part H—Disposition of allowances Sec. 781. Allocation of allowances for supplemental reductions. Sec. 782. Allocation of emission allowances. Sec. 783. Electricity consumers. Sec. 784. Natural gas consumers. Sec. 785. Home heating oil, propane, and kerosene consumers. Sec. 787. Allocations to refineries. Sec. 788. SECTION RESERVED. Sec. 789. Climate change consumer refunds. Sec. 790. Exchange for State-issued allowances. Sec. 791. Auction procedures. Sec. 792. Auctioning allowances for other entities. Sec. 793. Establishment of funds. Sec. 794. Oversight of allocations. Subtitle C—Additional greenhouse gas standards Sec. 331. Greenhouse gas standards. Title VIII—Additional Greenhouse Gas Standards Sec. 801. Definitions. Part A—Stationary Source Standards Sec. 811. Standards of performance. Part C—Exemptions From Other Programs Sec. 831. Criteria pollutants. Sec. 832. International air pollution. Sec. 833. Hazardous air pollutants. Sec. 834. New source review. Sec. 835. Title V permits. Sec. 332. HFC Regulation. Sec. 333. Black carbon. Part E—Black Carbon Sec. 851. Black carbon. Sec. 334. States. Sec. 335. State programs. Part F—Miscellaneous Sec. 861. State programs. Sec. 862. Grants for support of air pollution control programs. Sec. 336. Enforcement. Sec. 337. Conforming amendments. Sec. 338. Davis-Bacon compliance. Sec. 339. National strategy for domestic biological carbon sequestration. Subtitle D—Carbon Market Assurance Sec. 341. Carbon market assurance. Subtitle E—Additional Market Assurance Sec. 351. Regulation of certain transactions in derivatives involving energy commodities. Sec. 352. No effect on authority of the Federal Energy Regulatory Commission. Sec. 353. Inspector General of the Commodity Futures Trading Commission. Sec. 354. Settlement and clearing through registered derivatives clearing organizations. Sec. 355. Limitation on eligibility to purchase a credit default swap. Sec. 356. Transaction fees. Sec. 357. No effect on antitrust law or authority of the Federal Trade Commission. Sec. 358. Regulation of carbon derivatives markets. Sec. 359. Cease-and-desist authority. Title IV—Transitioning to a Clean Energy Economy Subtitle A—Ensuring Real Reductions in Industrial Emissions Sec. 401. Ensuring real reductions in industrial emissions. Part F—Ensuring Real Reductions in Industrial Emissions Sec. 761. Purposes. Sec. 762. International negotiations. Sec. 763. Definitions. Subpart 1—Emission Allowance Rebate Program Sec. 764. Eligible industrial sectors. Sec. 765. Distribution of emission allowance rebates. Subpart 2—International Reserve Allowance Program Sec. 766. International reserve allowance program. Subpart 3—Presidential Determination Sec. 767. Presidential reports and determinations. Subtitle B—Green Jobs and Worker Transition Part 1—Green Jobs Sec. 421. Clean energy curriculum development grants. Sec. 422. Increased funding for energy worker training program. Part 2—Climate Change Worker Adjustment Assistance Sec. 425. Petitions, eligibility requirements, and determinations. Sec. 426. Program benefits. Sec. 427. General provisions. Subtitle C—Consumer assistance Sec. 431. Energy refund program. Sec. 432. Modification of earned income credit amount for individuals with no qualifying children. Sec. 433. Protection of Social Security and Medicare trust funds. Subtitle D—Exporting Clean Technology Sec. 441. Findings and purposes. Sec. 442. Definitions. Sec. 443. Governance. Sec. 444. Determination of eligible countries. Sec. 445. Qualifying activities. Sec. 446. Assistance. Subtitle E—Adapting to Climate Change Part 1—Domestic Adaptation Subpart A—National Climate Change Adaptation Program Sec. 451. Global change research and data management. Sec. 452. National Climate Service. Sec. 453. State programs to build resilience to climate change impacts. Subpart B—Public Health and Climate Change Sec. 461. Sense of Congress on public health and climate change. Sec. 462. Relationship to other laws. Sec. 463. National strategic action plan. Sec. 464. Advisory board. Sec. 465. Reports. Sec. 466. Definitions. Sec. 467. Climate Change Health Protection and Promotion Fund. Subpart C—Natural resource adaptation Sec. 471. Purposes. Sec. 472. Natural resources climate change adaptation policy. Sec. 473. Definitions. Sec. 474. Council on Environmental Quality. Sec. 475. Natural Resources Climate Change Adaptation Panel. Sec. 476. Natural Resources Climate Change Adaptation Strategy. Sec. 477. Natural resources adaptation science and information. Sec. 478. Federal natural resource agency adaptation plans. Sec. 479. State natural resources adaptation plans. Sec. 480. Natural Resources Climate Change Adaptation Fund. Sec. 481. National Wildlife Habitat and Corridors Information Program. Sec. 482. Additional provisions regarding Indian tribes. Part 2—International Climate Change Adaptation Program Sec. 491. Findings and purposes. Sec. 492. Definitions. Sec. 493. International Climate Change Adaptation Program. Sec. 494. Distribution of allowances. Sec. 495. Bilateral assistance.

2.

Definitions

For purposes of this Act: (1)

Administrator

The term Administrator means the Administrator of the Environmental Protection Agency. (2)

State

The term State has the meaning given that term in section 302 of the Clean Air Act.

3.

International participation

The Administrator, in consultation with the Department of State and the United States Trade Representative, shall annually prepare and certify a report to the Congress regarding whether China and India have adopted greenhouse gas emissions standards at least as strict as those standards required under this Act. If the Administrator determines that China and India have not adopted greenhouse gas emissions standards at least as stringent as those set forth in this Act, the Administrator shall notify each Member of Congress of his determination, and shall release his determination to the media.

.

312.

Definitions

Title VII of the Clean Air Act, as added by section 311 of this Act, is amended by inserting before part A the following new section:

700.

Definitions

In this title: (1)

Additional

The term additional, when used with respect to reductions or avoidance of greenhouse gas emissions, or to sequestration of greenhouse gases, means reductions, avoidance, or sequestration that result in a lower level of net greenhouse gas emissions or atmospheric concentrations than would occur in the absence of an offset project. (2)

Additionality

The term additionality means the extent to which reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, are additional. (3)

Advisory board

The term Advisory Board means the Offsets Integrity Advisory Board established under section 731. (4)

Affiliated

The term affiliated— (A)when used in relation to an entity means owned or controlled by, or under common ownership or control with, another entity, as determined by the Administrator; and (B)when used in relation to a natural gas local distribution company, means owned or controlled by, or under common ownership or control with, another natural gas local distribution company, as determined by the Administrator. (5)

Allowance

The term allowance means a limited authorization to emit, or have attributable greenhouse gas emissions in an amount of, 1 ton of carbon dioxide equivalent of a greenhouse gas in accordance with this title. Such term includes an emission allowance, a compensatory allowance, and an international emission allowance, but does not include an international reserve allowance established under section 766. (6)

Attributable greenhouse gas emissions

The term attributable greenhouse gas emissions, for a given calendar year, means— (A)for a covered entity that is a fuel producer or importer described in paragraph (13)(B), greenhouse gases that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by that covered entity during that calendar year for sale or distribution in interstate commerce, assuming no capture and sequestration of any greenhouse gas emissions; (B)for a covered entity that is an industrial gas producer or importer described in paragraph (13)(C), the tons of carbon dioxide equivalent of any gas described in clauses (i) through (vi) of paragraph (13)(C)— (i)produced or imported by such covered entity during that calendar year for sale or distribution in interstate commerce; or (ii)released as fugitive emissions in the production of fluorinated gas; and (C)for a natural gas local distribution company described in paragraph (13)(J), greenhouse gases that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, that such entity delivered during that calendar year to customers that are not covered entities, assuming no capture and sequestration of that greenhouse gas. (7)

Biological sequestration; biologically sequestered

The terms biological sequestration and biologically sequestered mean the removal of greenhouse gases from the atmosphere by terrestrial biological means, such as by growing plants, and the storage of those greenhouse gases in plants or soils. (8)

Capped emissions

The term capped emissions means greenhouse gas emissions to which section 722 applies, including emissions from the combustion of natural gas, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid to which section 722(b)(2) or (8) applies. (9)

Capped source

The term capped source means a source that directly emits capped emissions. (10)

Carbon dioxide equivalent

The term carbon dioxide equivalent means the unit of measure, expressed in metric tons, of greenhouse gases as provided under section 711 or 712. (11)

Carbon stock

The term carbon stock means the quantity of carbon contained in a biological reservoir or system which has the capacity to accumulate or release carbon. (12)

Compensatory allowance

The term compensatory allowance means an allowance issued under section 721(f). (13)

Covered entity

The term covered entity means each of the following: (A)Any electricity source. (B)Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce in 2008 or any subsequent year, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, the combustion of which would emit 25,000 or more tons of carbon dioxide equivalent, as determined by the Administrator. (C)Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce, in bulk, or in products designated by the Administrator, in 2008 or any subsequent year 25,000 or more tons of carbon dioxide equivalent of— (i)fossil fuel-based carbon dioxide; (ii)nitrous oxide; (iii)perfluorocarbons; (iv)sulfur hexafluoride; (v)any other fluorinated gas, except for nitrogen trifluoride, that is a greenhouse gas, as designated by the Administrator under section 711; or (vi)any combination of greenhouse gases described in clauses (i) through (v). (D)Any stationary source that has emitted 25,000 or more tons of carbon dioxide equivalent of nitrogen trifluoride in 2008 or any subsequent year. (E)Any geologic sequestration site. (F)Any stationary source in the following industrial sectors: (i)Adipic acid production. (ii)Primary aluminum production. (iii)Ammonia manufacturing. (iv)Cement production, excluding grinding-only operations. (v)Hydrochlorofluorocarbon production. (vi)Lime manufacturing. (vii)Nitric acid production. (viii)Petroleum refining. (ix)Phosphoric acid production. (x)Silicon carbide production. (xi)Soda ash production. (xii)Titanium dioxide production. (xiii)Coal-based liquid or gaseous fuel production. (G)Any stationary source in the chemical or petrochemical sector that, in 2008 or any subsequent year— (i)produces acrylonitrile, carbon black, ethylene, ethylene dichloride, ethylene oxide, or methanol; or (ii)produces a chemical or petrochemical product if producing that product results in annual combustion plus process emissions of 25,000 or more tons of carbon dioxide equivalent. (H)Any stationary source that— (i)is in one of the following industrial sectors: ethanol production; ferroalloy production; fluorinated gas production; food processing; glass production; hydrogen production; iron and steel production; lead production; pulp and paper manufacturing; and zinc production; and (ii)has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year. (I)Any fossil fuel-fired combustion device (such as a boiler) or grouping of such devices that— (i)is all or part of an industrial source not specified in subparagraph (D), (F), (G), or (H); and (ii)has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year. (J)Any natural gas local distribution company that (or any group of 2 or more affiliated natural gas local distribution companies that, in the aggregate), in 2008 or any subsequent year, delivers 460,000,000 cubic feet or more of natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, to customers that are not covered entities. (14)

Crediting period

The term crediting period means the period with respect to which an offset project is eligible to earn offset credits under part D, as determined under section 734(c). (15)

Designated representative

The term designated representative means, with respect to a covered entity, a reporting entity (as defined in section 713), an offset project developer, or any other entity receiving or holding allowances or offset credits under this title, an individual authorized, through a certificate of representation submitted to the Administrator by the owners and operators or similar entity official, to represent the owners and operators or similar entity official in all matters pertaining to this title (including the holding, transfer, or disposition of allowances or offset credits), and to make all submissions to the Administrator under this title. (16)

Developing country

The term developing country means a country eligible to receive official development assistance according to the income guidelines of the Development Assistance Committee of the Organization for Economic Cooperation and Development. (17)

Domestic offset credit

The term domestic offset credit means an offset credit issued under part D, other than an international offset credit. (18)

Electricity source

The term electricity source means a stationary source that includes one or more utility units. (19)

Emission

The term emission means the release of a greenhouse gas into the ambient air. Such term does not include gases that are captured and geologically sequestered, except to the extent that they are later released into the atmosphere, in which case compliance must be demonstrated pursuant to section 722(b)(5). (20)

Emission allowance

The term emission allowance means an allowance established under section 721(a) or section 726(g)(2) or (h)(1)(C). (21)

Fair market value

The term fair market value means the average daily closing price on registered exchanges or, if such a price is unavailable, the average price as determined by the Administrator, during a specified time period, of an emission allowance. (22)

Federal land

The term Federal land means land that is owned by the United States, other than land held in trust for an Indian or Indian tribe. (23)

Fossil fuel

The term fossil fuel means natural gas, petroleum, or coal, or any form of solid, liquid, or gaseous fuel derived from such material, including consumer products that are derived from such materials and are combusted. (24)

Fossil fuel-fired

The term fossil fuel-fired means powered by combustion of fossil fuel, alone or in combination with any other fuel, regardless of the percentage of fossil fuel consumed. (25)

Fugitive emissions

The term fugitive emissions means emissions from leaks, valves, joints, or other small openings in pipes, ducts, or other equipment, or from vents. (26)

Geologic sequestration; geologically sequestered

The terms geologic sequestration and geologically sequestered mean the sequestration of greenhouse gases in subsurface geologic formations for purposes of permanent storage. (27)

Geologic sequestration site

The term geologic sequestration site means a site where carbon dioxide is geologically sequestered. (28)

Greenhouse gas

The term greenhouse gas means any gas described in section 711(a) or designated under section 711, except to the extent that it is regulated under title VI. (29)

High conservation priority land

The term high conservation priority land means land that is not Federal land and is— (A)globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; or (B)old-growth or late-successional forest, as identified by the office of the State Forester or relevant State agency with regulatory jurisdiction over forestry activities. (30)

Hold

The term hold means, with respect to an allowance or offset credit, to have in the appropriate account in the allowance tracking system established under section 724(d), or submit to the Administrator for recording in such account. (31)

Industrial source

The term industrial source means any stationary source that— (A)is not an electricity source; and (B)is in— (i)the manufacturing sector (as defined in North American Industrial Classification System codes 31, 32, and 33); or (ii)the natural gas processing or natural gas pipeline transportation sector (as defined in North American Industrial Classification System codes 211112 and 486210). (32)

International emission allowance

The term international emission allowance means a tradable authorization to emit 1 ton of carbon dioxide equivalent of greenhouse gas that is issued by a national or supranational foreign government pursuant to a qualifying international program designated by the Administrator pursuant to section 728(a). (33)

International offset credit

The term international offset credit means an offset credit issued by the Administrator under section 743. (34)

Leakage

Except as provided in part F, the term leakage means a significant increase in greenhouse gas emissions, or significant decrease in sequestration, which is caused by an offset project or activities under part E and occurs outside the boundaries of the offset project or the relevant program or project under part E. (35)

Mineral sequestration

The term mineral sequestration means sequestration of carbon dioxide from the atmosphere by capturing carbon dioxide into a permanent mineral, such as the aqueous precipitation of carbonate minerals that results in the storage of carbon dioxide in a mineral form. (36)

Natural gas liquid

The term natural gas liquid means ethane, butane, isobutane, natural gasoline, and propane. (37)

Natural gas local distribution company

The term natural gas local distribution company has the meaning given the term local distribution company in section 2(17) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3301(17)). (38)

Offset credit

The term offset credit means a credit issued under part D. (39)

Offset project

The term offset project means a project or activity that reduces or avoids greenhouse gas emissions, or sequesters greenhouse gases, and for which offset credits are or may be issued under part D. (40)

Offset project developer

The term offset project developer means the individual or entity designated as the offset project developer in an offset project approval petition under section 735(c)(1). (41)

Petroleum

The term petroleum includes crude oil, tar sands, oil shale, and heavy oils. (42)

Renewable biomass

The term renewable biomass means any of the following: (A)Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on January 1, 2009. (B)Plant material, including waste material, harvested or collected from pastureland that was nonforested on January 1, 2009. (C)Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food waste (but not municipal solid waste, recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals). (D)Animal waste or animal byproducts, including products of animal waste digesters. (E)Algae. (F)Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a public official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line. (G)Residues from or byproducts of milled logs. (H)Any of the following removed from forested land that is not Federal land and is not high conservation priority land: (i)Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established— (I)prior to January 1, 2009; or (II)on land that, as of January 1, 2009, was cultivated or fallow and non-forested. (ii)Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally-regenerated forests or other non-plantation forests, including for the purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation. (iii)Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after January 1, 2009, to restore or maintain native forest types. (iv)Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees. (I)Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are— (i)not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands, components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas; or Wild and Scenic Rivers corridors; (ii)harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and (iii)harvested in accordance with Federal and State law, and applicable land management plans. (43)

Retire

The term retire, with respect to an allowance or offset credit established or issued under this title, means to disqualify such allowance or offset credit for any subsequent use under this title, regardless of whether the use is a sale, exchange, or submission of the allowance or offset credit to satisfy a compliance obligation. (44)

Reversal

The term reversal means an intentional or unintentional loss of sequestered greenhouse gases to the atmosphere. (45)

Sequestered and sequestration

The terms sequestered and sequestration mean the separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator. The terms include biological, geologic, and mineral sequestration, but do not include ocean fertilization techniques. (46)

Stationary source

The term stationary source means any integrated operation comprising any plant, building, structure, or stationary equipment, including support buildings and equipment, that is located within one or more contiguous or adjacent properties, is under common control of the same person or persons, and emits or may emit a greenhouse gas. (47)

Strategic reserve allowance

The term strategic reserve allowance means an emission allowance reserved for, transferred to, or deposited in the strategic reserve under section 726. (48)

Ton

The term ton means metric ton. (49)

Uncapped emissions

The term uncapped emissions means emissions of greenhouse gases emitted after December 31, 2011, that are not capped emissions. (50)

United States greenhouse gas emissions

The term United States greenhouse gas emissions means the total quantity of annual greenhouse gas emissions from the United States, as calculated by the Administrator and reported to the United Nations Framework Convention on Climate Change Secretariat. (51)

Utility unit

The term utility unit means a combustion device that, on January 1, 2009, or any date thereafter, is fossil fuel-fired and serves a generator that produces electricity for sale, unless such combustion device, during the 12-month period starting the later of January 1, 2009, or the commencement of commercial operation and each calendar year starting after such later date— (A)is part of an integrated cycle system that cogenerates steam and electricity during normal operation and that supplies one-third or less of its potential electric output capacity and 25 MW or less of electrical output for sale; or (B)combusts materials of which more than 95 percent is municipal solid waste on a heat input basis. (52)

Vintage year

The term vintage year means the calendar year for which an emission allowance is established under section 721(a) or which is assigned to an emission allowance under section 726(g)(3)(A), except that the vintage year for a strategic reserve allowance shall be the year in which such allowance is purchased at auction.

.

B

Disposition of allowances

321.

Disposition of allowances for global warming pollution reduction program

Title VII of the Clean Air Act, as added by section 311 of this Act, is amended by adding at the end the following part: H

Disposition of allowances

781.

Allocation of allowances for supplemental reductions

(a)

In General

The Administrator shall allocate for each vintage year the following percentage of the emission allowances established under section 721(a), for distribution in accordance with part E: (1)For vintage years 2012 through 2025, 5 percent. (2)For vintage years 2026 through 2030, 3 percent. (3)For vintage years 2031 through 2050, 2 percent. (b)

Adjustment

The Administrator shall modify the percentages set forth in subsection (a) as necessary to ensure the achievement of the annual supplemental emission reduction objective for 2020, and the cumulative reduction objective through 2025, set forth in section 753(b)(1). (c)

Carryover

If the Administrator has not distributed all of the allowances allocated pursuant to this section for a given vintage year by the end of that year, all such undistributed emission allowances shall, in accordance with section 782(s), be exchanged for allowances from the following vintage year and treated as part of the allocation for supplemental reductions entities under this section for that later vintage year.

782.

Allocation of emission allowances

(a)

Electricity consumers

(1)The Administrator shall allocate emission allowances for the benefit of electricity consumers, to be distributed in accordance with section 783(b), (c), and (d) in the following amounts: (A)For vintage years 2012 and 2013: 43.75 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2014 and 2015: 38.89 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2016 through 2025: 35.00 percent of the emission allowances established for each year under section 721(a). (D)For vintage year 2026: 28 percent of the emission allowances established for that year under section 721(a). (E)For vintage year 2027: 21 percent of the emission allowances established for that year under section 721(a). (F)For vintage year 2028: 14 percent of the emission allowances established for that year under section 721(a). (G)For vintage year 2029: 7 percent of the emission allowances established for that year under section 721(a). (2)The Administrator shall allocate emission allowances for energy efficiency, renewable electricity, and low income ratepayer assistance programs administered by small electricity local distribution companies, to be distributed in accordance with section 783(e) in the following amounts: (A)For vintage years 2012 through 2025: 0.5 percent of the emission allowances established each year under section 721(a). (B)For vintage year 2026: 0.4 percent of the emission allowances established for that year under section 721(a). (C)For vintage year 2027: 0.3 percent of the emission allowances established for that year under section 721(a). (D)For vintage year 2028: 0.2 percent of the emission allowances established for that year under section 721(a). (E)For vintage year 2029: 0.1 percent of the emission allowances established for that year under section 721(a). (b)

Natural gas consumers

The Administrator shall allocate emission allowances for the benefit of natural gas consumers to be distributed in accordance with section 784 in the following amounts: (1)For vintage years 2016 through 2025, 9 percent of the emission allowances established for each year under section 721(a). (2)For vintage year 2026, 7.2 percent of the emission allowances established for that year under section 721(a). (3)For vintage year 2027, 5.4 percent of the emission allowances established for that year under section 721(a). (4)For vintage year 2028, 3.6 percent of the emission allowances established for that year under section 721(a). (5)For vintage year 2029, 1.8 percent of the emission allowances established for that year under section 721(a). (c)

Home heating oil and propane consumers

The Administrator shall allocate emission allowances for the benefit of home heating oil and propane consumers to be distributed in accordance with section 785 in the following amounts: (1)For vintage years 2012 and 2013, 1.875 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2014 and 2015, 1.67 percent of the emission allowances established for each year under section 721(a). (3)For vintage years 2016 through 2025, 1.5 percent of the emission allowances established for each year under section 721(a). (4)For vintage year 2026, 1.2 percent of the emission allowances established for that year under section 721(a). (5)For vintage year 2027, 0.9 percent of the emission allowances established for that year under section 721(a). (6)For vintage year 2028, 0.6 percent of the emission allowances established for that year under section 721(a). (7)For vintage year 2029, 0.3 percent of the emission allowances established for that year under section 721(a). (d)

Low income consumers

For each vintage year starting in 2012, the Administrator shall auction, pursuant to section 791, 15 percent of the emission allowances established for each year under section 721(a), with the proceeds used for the benefit of low income consumers to fund the program set forth in subtitle C of title IV of American Clean Energy and Security Act of 2009 and the amendments made thereby. (e)

Trade-vulnerable industries

(1)

In general

The Administrator shall allocate emission allowances to energy-intensive, trade-exposed entities, to be distributed in accordance with section 765, in the following amounts: (A)For vintage years 2012 and 2013, up to 2.0 percent of the emission allowances established for each year under section 721(a). (B)For vintage year 2014, up to 15 percent of the emission allowances established for that year under section 721(a). (C)For vintage year 2015, up to the product of— (i)the amount specified in paragraph (2); multiplied by (ii)the quantity of emission allowances established for 2015 under section 721(a) divided by the quantity of emission allowances established for 2014 under section 721(a). (D)For vintage year 2016, up to the product of— (i)the amount specified in paragraph (3); multiplied by (ii)the quantity of emission allowances established for 2015 under section 721(a) divided by the quantity of emission allowances established for 2014 under section 721(a). (E)For vintage years 2017 through 2025, up to the product of— (i)the amount specified in paragraph (4); multiplied by (ii)the quantity of emission allowances established for that year under section 721(a) divided by the quantity of emission allowances established for 2016 under section 721(a). (F)For vintage years 2026 through 2050, up to the product of the amount specified in paragraph (4)— (i)multiplied by the quantity of emission allowances established for the applicable year during 2026 through 2050 under section 721(a) divided by the quantity of emission allowances established for 2016 under section 721(a); and (ii)multiplied by a factor that shall equal 90 percent for 2026 and decline 10 percent for each year thereafter until reaching zero, except that, if the President modifies a percentage for a year under subparagraph (A) of section 767(c)(3), the highest percentage the President applies for any sector under that subparagraph for that year (not exceeding 100 percent) shall be used for that year instead of the factor otherwise specified in this clause. (2)

Carryover

After the Administrator distributes emission allowances pursuant to section 765 for any given vintage year, any emission allowances allocated to energy-intensive, trade-exposed entities pursuant to this subsection that have not been so distributed shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation to such entities for that later vintage year. (f)

Deployment of carbon capture and sequestration technology

(1)

Annual allocation

The Administrator shall allocate emission allowances for the deployment of carbon capture and sequestration technology to be distributed in accordance with section 786 in the following amounts: (A)For vintage years 2014 through 2017, 1.75 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2018 and 2019, 4.75 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2020 through 2050, 5 percent of the emission allowances established for each year under section 721(a). (2)

Carryover

If the Administrator has not distributed all of the allowances allocated pursuant to this subsection for a given vintage year by the end of that year, all such undistributed emission allowances shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation for the deployment of carbon capture and sequestration technology under this subsection for that later vintage year. (g)

Investment in energy efficiency and renewable energy

The Administrator shall allocate emission allowances to invest in energy efficiency and renewable energy as follows: (1)To be distributed in accordance with section 132 of the American Clean Energy and Security Act of 2009 in the following amounts: (A)For vintage years 2012 through 2015, 9.5 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2016 through 2017, 6.5 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2018 through 2021, 5.5 percent of the emission allowances established for each year under section 721(a). (D)For vintage years 2022 through 2025, 1.0 percent of the emission allowances established for each year under section 721(a). (E)For vintage years 2026 through 2050, 4.5 percent of the emission allowances established for each year under section 721(a). (F)At the same time allowances are distributed under subparagraph (D) for each of the vintage years 2022 through 2025, 3.55 percent of emission allowances established under section 721(a) for the vintage year four years after that vintage year shall also be distributed (which shall be in addition to the emission allowances distributed under subparagraph (E)). (2)To be distributed in accordance with section 304 of the Energy Conservation and Production Act, as amended by section 201 of the American Clean Energy and Security Act of 2009, for each vintage year from 2012 through 2050, 0.5 percent of emission allowances established for that year under section 721(a). (h)

Energy research and development

(1)

Energy innovation hubs

For vintage years 2012 through 2050, the Administrator shall allocate 0.45 percent of the emission allowances established under section 721(a) to be distributed to Energy Innovation Hubs in accordance with section 171 of the American Clean Energy and Security Act of 2009. (2)

Advanced energy research

For vintage years 2012 through 2050, the Administrator shall allocate 1.05 percent of the emission allowances established under section 721(a) for the Advanced Research Project Agency-Energy to be distributed in accordance with section 172 of the American Clean Energy and Security Act of 2009. (i)

Investment in clean vehicle technology

The Administrator shall allocate emission allowances to invest in the development and deployment of clean vehicles, to be distributed in accordance with section 124 of the American Clean Energy and Security Act of 2009 in the following amounts: (1)For vintage years 2012 through 2017, 3 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2018 through 2025, 1 percent of the emission allowances established for each year under section 721(a). (j)

Domestic fuel production

For vintage years 2014 through 2026, the Administrator shall allocate and distribute according to section 787— (1)2 percent of the emission allowances established for each year under section 721(a) to domestic petroleum refineries that are covered entities pursuant to section 700(13)(F)(viii), including small business refiners; and (2)an additional 0.25 percent of the emissions allowances established for each year under section 721(a) to small business refiners that are covered entities pursuant to section 700(13)(F)(viii). (k)

Investment in workers

The Administrator shall auction pursuant to section 791 emission allowances for the benefit of workers pursuant to part 2 of subtitle B of the American Clean Energy and Security Act of 2009 in the following amounts, and shall deposit into the Climate Change Worker Adjustment Assistance Fund established pursuant to section 793, and report to the Secretary of Labor on, the proceeds from the sale of these allowances: (1)For vintage years 2012 through 2021, 0.5 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2022 through 2050, 1.0 percent of the emission allowances established for each year under section 721(a). All amounts deposited into the fund shall be available to the Secretary of Labor until expended to carry out part 2 of subtitle B of title IV of the American Clean Energy and Security Act of 2009. Of the amounts deposited, not more than $10,000,000 shall be available to the Secretary of Labor for Federal administration costs of such part 2 each fiscal year. (l)

Domestic adaptation

The Administrator shall allocate emission allowances for domestic adaptation as follows: (1)To be distributed in accordance with section 453 of the American Clean Energy and Security Act of 2009 in the following amounts: (A)For vintage years 2012 through 2021, 0.9 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2022 through 2026, 1.9 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2027 through 2050, 3.9 percent of the emission allowances established for each year under section 721(a). (2)For vintage year 2012 and thereafter, the Administrator shall auction, pursuant to section 791, 0.1 percent of the emission allowances established for each year under section 721(a), and shall deposit the proceeds in the Climate Change Health Protection and Promotion Fund established by section 467 of the American Clean Energy and Security Act of 2009. (m)

Wildlife and natural resource adaptation

The Administrator shall allocate emission allowances for wildlife and natural resource adaptation as follows: (1)To be distributed to State agencies in accordance with section 480(a) of the American Clean Energy and Security Act of 2009 in the following amounts: (A) For vintage years 2012 through 2021, 0.385 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2022 through 2026, 0.77 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2027 through 2050, 1.54 percent of the emission allowances established for each year under section 721(a). (2)To be auctioned pursuant to section 791, with the proceeds to be deposited in the Natural Resources Climate Change Adaptation Fund established pursuant to section 480(b), in the following amounts: (A)For vintage years 2012 through 2021, 0.615 percent of the emission allowances established for each year under section 721(a). (B)For vintage years 2022 through 2026, 1.23 percent of the emission allowances established for each year under section 721(a). (C)For vintage years 2027 through 2050, 2.46 percent of the emission allowances established for each year under section 721(a). (n)

International adaptation

The Administrator shall allocate emission allowances for international adaptation to be distributed in accordance with part 2 of subtitle E of title IV of the American Clean Energy and Security Act of 2009 in the following amounts: (1)For vintage years 2012 through 2021, 1.0 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2022 through 2026, 2.0 percent of the emission allowances established for each year under section 721(a). (3)For vintage years 2027 through 2050, 4.0 percent of the emission allowances established for each year under section 721(a). (o)

International clean technology deployment

The Administrator shall allocate emission allowances for international clean technology deployment for distribution in accordance with subtitle D of title IV of the American Clean Energy and Security Act of 2009 in the following amounts: (1)For vintage years 2012 through 2021, 1.0 percent of the emission allowances established for each year under section 721(a). (2)For vintage years 2022 through 2026, 2.0 percent of the emission allowances established for each year under section 721(a). (3)For vintage years 2027 through 2050, 4.0 percent of the emission allowances established for each year under section 721(a). (p)

Release of future allowances

The Administrator shall make future year allowances available by auctioning allowances, pursuant to section 791, in the following amounts: (1)In each of calendar years 2014 through 2019, a string of 0.70 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string. (2)In each of calendar years 2020 through 2025, a string of 0.50 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string. (3)In each of calendar years 2026 through 2030, a string of 0.3 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string. (q)

Deficit reduction

(1)For each of vintage years 2012 through 2025, any allowances not allocated for distribution or auction pursuant to section 781 or subsections (a) through (o) of this section, or disbursed pursuant to section 790, shall be auctioned by the Administrator pursuant to section 791 and the proceeds shall be deposited into the Treasury. (2)Unless otherwise specified, any allowances allocated pursuant to subsections (a) through (o) and not distributed by March 31 of the calendar year following the allowance’s vintage year, shall be auctioned by the Administrator and the proceeds shall be deposited into the Treasury. (3)For auctions conducted through calendar year 2020 pursuant to subsection (p), the auction proceeds shall be deposited into the Treasury. (r)

Climate change consumer refund

(1)For each of vintage years 2026 through 2050, the Administrator shall auction the following allowances established under section 721(a) and deposit the proceeds into the Climate Change Consumer Refund Account: (A)Any allowances not allocated for distribution or auction pursuant to section 781 or subsections (a) through (p) of this section, or disbursed pursuant to section 790. (B)Unless otherwise specified, any allowances allocated pursuant to subsections (a) through (o) and not distributed by March 31 of the calendar year following the allowance's vintage year. (2)For auctions conducted pursuant to subsection (p) in calendar years 2021 and thereafter, the Administrator shall place the proceeds from the sales of the these allowances into the Climate Change Consumer Refund Account. (3)Funds deposited into the Climate Change Consumer Refund Account shall be used as specified in section 789 and shall be available for expenditure, without further appropriation or fiscal year limitation. (s)

Treatment of carryover allowances

(1)

In general

If there are undistributed allowances from a vintage year for supplemental reductions pursuant to section 781(c), energy-intensive, trade-exposed industries pursuant to subsection (e)(2) of this section, or deployment of carbon capture and sequestration technology pursuant to subsection (f)(2) of this section, the Administrator shall— (A)use the undistributed allowances to increase for the same vintage year— (i)the allocation of allowances to be auctioned for deficit reduction pursuant to subsection (q) or for consumer refunds pursuant to subsection (r); (ii)the allocation of allowances to be auctioned for low income consumers pursuant to subsection (d); or (iii)a combination of both; and (B)except as provided in paragraph (2)— (i)decrease by the same amount for the following vintage year the allocation for the purpose for which the allocation was increased pursuant to subparagraph (A); and (ii)increase by the same amount for the following vintage year the allocation for the purpose for which the undistributed allowances were originally allocated. (2)

Excess undistributed allowances

(A)For each vintage year for which this subsection applies, the Administrator shall determine whether— (i)the total quantity of undistributed allowances for that vintage year that were allocated pursuant to section 781(c), and subsections (e)(2) and (f)(2) of this section, exceeds (ii)the total quantity of allowances allocated pursuant to subsection (d), (q) and (r) for the following vintage year, decreased by the quantity of allowances for that following vintage year set aside for the reserve established by section 791(f). (B)If the Administrator determines under subparagraph (A) that the quantity described in subparagraph (A)(i) exceeds the quantity described in subparagraph (A)(ii), paragraph (1)(B)(ii) of this subsection shall not apply. Instead, for each purpose described in section 781(c), or subsections (e)(2) or (f)(2) of this section for which undistributed allowances for a given vintage year were allocated, the Administrator shall increase the allocation for the following vintage year by the amount that is the product of— (i)the number of undistributed allowances for that purpose, times (ii)the quantity described in subparagraph (A)(ii) divided by the quantity described in subparagraph (A)(i).

783.

Electricity consumers

(a)

Definitions

For purposes of this section: (1)

Coal-fueled unit

The term ‘coal-fueled unit’ means a utility unit that derives at least 85 percent of its heat input from coal, petroleum coke, or any combination of these 2 fuels. (2)

Electricity local distribution company

The term electricity local distribution company means an electric utility— (A)that has a legal, regulatory, or contractual obligation to deliver electricity directly to retail consumers in the United States, regardless of whether that entity or another entity sells the electricity as a commodity to those retail consumers; and (B)the retail rates of which, except in the case of an electric cooperative, are regulated or set by— (i)a State regulatory authority; (ii)a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing); or (iii)an Indian tribe pursuant to tribal law. (3)

Electricity savings; renewable energy resource

The terms electricity savings and renewable energy resource shall have the meaning given those terms in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of the American Clean Energy and Security Act of 2009). (4)

Independent power production facility

The term independent power production facility means a facility— (A)that is used for the generation of electric energy, at least 80 percent of which is sold at wholesale; and (B)the sales of the output of which are not subject to retail rate regulation or setting of retail rates by— (i) a State regulatory authority; (ii)a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing); (iii)an electric cooperative; or (iv)an Indian tribe pursuant to tribal law. (5)

Long-term contract generator

The term long-term contract generator means a qualifying small power production facility, a qualifying cogeneration facility ), an independent power production facility, or a facility for the production of electric energy for sale to others that is owned and operated by an electric cooperative that is— (A)a covered entity; and (B)as of the date of enactment of this title— (i)a facility with 1 or more sales or tolling agreements executed before March 1, 2007, that govern the facility’s electricity sales and provide for sales at a price (whether a fixed price or a price formula) for electricity that does not allow for recovery of the costs of compliance with the limitation on greenhouse gas emissions under this title, provided that such agreements are not between entities that are affiliates of one another; or (ii)a facility consisting of 1 or more cogeneration units that makes useful thermal energy available to an industrial or commercial process with 1 or more sales agreements executed before March 1, 2007, that govern the facility’s useful thermal energy sales and provide for sales at a price (whether a fixed price or price formula) for useful thermal energy that does not allow for recovery of the costs of compliance with the limitation on greenhouse gas emissions under this title, provided that such agreements are not between entities that are affiliates of one another. (6)

Merchant coal unit

The term merchant coal unit means a coal-fueled unit that— (A)is or is part of a covered entity; (B)is not owned by a Federal, State, or regional agency or power authority; and (C)generates electricity solely for sale to others, provided that all or a portion of such sales are made by a separate legal entity that— (i)has a full or partial ownership or leasehold interest in the unit, as certified in accordance with such requirements as the Administrator shall prescribe; and (ii)is not subject to retail rate regulation or setting of retail rates by— (I)a State regulatory authority; (II)a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing); (III)an electric cooperative; or (IV)an Indian tribe pursuant to tribal law. (7)

Merchant coal unit sales

The term merchant coal unit sales means sales to others of electricity generated by a merchant coal unit that are made by the owner or leaseholder described in paragraph (6)(C). (8)

New coal-fueled unit

The term new coal-fueled unit means a coal-fueled unit that commenced operation on or after January 1, 2009 and before September 30, 2012. (9)

New merchant coal unit

The term new merchant coal unit means a merchant coal unit— (A)that commenced operation on or after January 1, 2009 and before September 30, 2012; and (B)the actual, on-site construction of which commenced prior to January 1, 2009. (10)

Qualifying small power production facility; qualifying cogeneration facility

The terms qualifying small power production facility and qualifying cogeneration facility have the meanings given those terms in section 3(17)(C) and 3(18)(B) of the Federal Power Act (16 U.S.C. 796(17)(C) and 796(18)(B)). (11)

Small LDC

The term small LDC means, for any given year, an electricity local distribution company that delivered less than 4,000,000 megawatt hours of electric energy directly to retail consumers in the preceding year. (12)

State regulatory authority

The term State regulatory authority has the meaning given that term in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)). (13)

Useful thermal energy

The term useful thermal energyhas the meaning given that term in section 371(7) of the Energy Policy and Conservation Act (42 U.S.C. 6341(7)). (b)

Electricity local distribution companies

(1)

Distribution of allowances

Not later than September 30 of 2011 and each calendar year thereafter through 2028, the Administrator shall distribute to electricity local distribution companies for the benefit of retail ratepayers the quantity of emission allowances allocated for the following vintage year pursuant to section 782(a)(1). Notwithstanding the preceding sentence, the Administrator shall withhold from distribution under this subsection a quantity of emission allowances equal to the lesser of 14.3 percent of the quantity of emission allowances allocated under section 782(a)(1) for the relevant vintage year, or 105 percent of the emission allowances for the relevant vintage year that the Administrator anticipates will be distributed to merchant coal units and to long-term contract generators, respectively, under subsections (c) and (d). If not required by subsections (c) and (d) to distribute all of these reserved allowances, the Administrator shall distribute any remaining emission allowances to electricity local distribution companies in accordance with this subsection. (2)

Distribution based on emissions

(A)

In general

For each vintage year, 50 percent of the emission allowances available for distribution under paragraph (1), after reserving allowances for distribution under subsections (c) and (d), shall be distributed by the Administrator among individual electricity local distribution companies ratably based on the annual average carbon dioxide emissions attributable to generation of electricity delivered at retail by each such company during the base period determined under subparagraph (B). (B)

Base period

(i)

Vintage years 2012 and 2013

For vintage years 2012 and 2013, an electricity local distribution company’s base period shall be— (I)calendar years 2006 through 2008; or (II)any 3 consecutive calendar years between 1999 and 2008, inclusive, that such company selects, provided that the company timely informs the Administrator of such selection. (ii)

Vintage years 2014 and thereafter

For vintage years 2014 and thereafter, the base period shall be— (I)the base period selected under clause (i); or (II)calendar year 2012, in the case of an electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by a new coal-fueled unit, provided that such company timely informs the Administrator of its election to use 2012 as its base period. (C)

Determination of emissions

(i)

Determination for 1999-2008

As part of the regulations promulgated pursuant to subsection (f), the Administrator, after consultation with the Energy Information Administration, shall determine the average amount of carbon dioxide emissions attributable to generation of electricity delivered at retail by each electricity local distribution company for each of the years 1999 through 2008, taking into account entities’ electricity generation, electricity purchases, and electricity sales. In the case of any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by, a coal-fueled unit that commenced operation after January 1, 2006 and before December 31, 2008, the Administrator shall adjust the emissions attributable to such company’s retail deliveries in calendar years 2006 through 2008 to reflect the emissions that would have occurred if the relevant unit were in operation during the entirety of such 3-year period. (ii)

Adjustments for new coal-fueled units

(I)

Vintage years 2012 and 2013

For purposes of emission allowance distributions for vintage years 2012 and 2013, in the case of any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by, a new coal-fueled unit, the Administrator shall adjust the emissions attributable to such company’s retail deliveries in the applicable base period to reflect the emissions that would have occurred if the new coal-fueled unit were in operation during such period. (II)

Vintage year 2014 and thereafter

Not later than necessary for use in making emission allowance distributions under this subsection for vintage year 2014, the Administrator shall, for any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by a new coal-fueled unit and has selected calendar year 2012 as its base period pursuant to subparagraph (B)(ii)(II), determine the amount of carbon dioxide emissions attributable to generation of electricity delivered at retail by such company in calendar year 2012. If the relevant new coal-fueled unit was not yet operational by January 1, 2012, the Administrator shall adjust such determination to reflect the emissions that would have occurred if such unit were in operation for all of calendar year 2012. (iii)

Requirements

Determinations under this paragraph shall be as precise as practicable, taking into account the nature of data currently available and the nature of markets and regulation in effect in various regions of the country. The following requirements shall apply to such determinations: (I)The Administrator shall determine the amount of fossil fuel-based electricity delivered at retail by each electricity local distribution company, and shall use appropriate emission factors to calculate carbon dioxide emissions associated with the generation of such electricity. (II)Where it is not practical to determine the precise fuel mix for the electricity delivered at retail by an individual electricity local distribution company, the Administrator may use the best available data, including average data on a regional basis with reference to Regional Transmission Organizations or regional entities (as that term is defined in section 215(a)(7) of the Federal Power Act (16 U.S.C. 824o(a)(7)), to estimate fuel mix and emissions. Different methodologies may be applied in different regions if appropriate to obtain the most accurate estimate. (3)

Distribution based on deliveries

(A)

Initial formula

Except as provided in subparagraph (B), for each vintage year, the Administrator shall distribute 50 percent of the emission allowances available for distribution under paragraph (1), after reserving allowances for distribution under subsections (c) and (d), among individual electricity local distribution companies ratably based on each electricity local distribution company’s annual average retail electricity deliveries for calendar years 2006 through 2008, unless the owner or operator of the company selects 3 other consecutive years between 1999 and 2008, inclusive, and timely notifies the Administrator of its selection. (B)

Updating

Prior to distributing 2015 vintage year emission allowances under this paragraph and at 3-year intervals thereafter, the Administrator shall update the distribution formula under this paragraph to reflect changes in each electricity local distribution company’s service territory since the most recent formula was established. For each successive 3-year period, the Administrator shall distribute allowances ratably among individual electricity local distribution companies based on the product of— (i)each electricity local distribution company’s average annual deliveries per customer during calendar years 2006 through 2008, or during the 3 alternative consecutive years selected by such company under subparagraph (A); and (ii)the number of customers of such electricity local distribution company in the most recent year in which the formula is updated under this subparagraph. (4)

Prohibition against excess distributions

The regulations promulgated under subsection (f) shall ensure that, notwithstanding paragraphs (2) and (3), no electricity local distribution company shall receive a greater quantity of allowances under this subsection than is necessary to offset any increased electricity costs to such company’s retail ratepayers, including increased costs attributable to purchased power costs, due to enactment of this title. Any emission allowances withheld from distribution to an electricity local distribution company pursuant to this paragraph shall be distributed among all remaining electricity local distribution companies ratably based on emissions pursuant to paragraph (2). (5)

Use of allowances

(A)

Ratepayer benefit

Emission allowances distributed to an electricity local distribution company under this subsection shall be used exclusively for the benefit of retail ratepayers of such electricity local distribution company and may not be used to support electricity sales or deliveries to entities or persons other than such ratepayers. (B)

Ratepayer classes

In using emission allowances distributed under this subsection for the benefit of ratepayers, an electricity local distribution company shall ensure that ratepayer benefits are distributed— (i)among ratepayer classes ratably based on electricity deliveries to each class; and (ii)equitably among individual ratepayers within each ratepayer class, including entities that receive emission allowances pursuant to part F. (C)

Limitation

In general, an electricity local distribution company shall not use the value of emission allowances distributed under this subsection to provide to any ratepayer a rebate that is based solely on the quantity of electricity delivered to such ratepayer. To the extent an electricity local distribution company uses the value of emission allowances distributed under this subsection to provide rebates, it shall, to the maximum extent practicable, provide such rebates with regard to the fixed portion of ratepayers’ bills or as a fixed credit or rebate on electricity bills. (D)

Industrial ratepayers

Notwithstanding subparagraph (C), if compliance with the requirements of this title results (or would otherwise result) in an increase in electricity costs for industrial retail ratepayers of any given electricity local distribution company (including entities that receive emission allowances pursuant to part F), such electricity local distribution company— (i)shall pass through to industrial retail ratepayers their ratable share (based on deliveries to each ratepayer class) of the value of the emission allowances distributed to such company under this subsection, to reduce electricity cost impacts on such ratepayers; and (ii)may do so based on the quantity of electricity delivered to individual industrial retail ratepayers. (E)

Guidelines

As part of the regulations promulgated under subsection (f), the Administrator shall, after consultation with State regulatory authorities, prescribe guidelines for the implementation of the requirements of this paragraph. Such guidelines shall include requirements to ensure that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of the allowances distributed to each electricity local distribution company pursuant to this subsection. (6)

Regulatory proceedings

(A)

Requirement

No electricity local distribution company shall be eligible to receive emission allowances under this subsection or subsection (e) unless the State regulatory authority with authority over such company’s retail rates, or the entity with authority to regulate or set retail electricity rates of an electricity local distribution company not regulated by a State regulatory authority, has— (i)after public notice and an opportunity for comment, promulgated a regulation or completed a rate proceeding (or the equivalent, in the case of a ratemaking entity other than a State regulatory authority) that provides for the full implementation of the requirements of paragraph (5) of this subsection and the requirements of subsection (e); and (ii)made available to the Administrator and the public a report describing, in adequate detail, the manner in which the requirements of paragraph (5) and the requirements of subsection (e) will be implemented. (B)

Updating

The Administrator shall require, as a condition of continued receipt of emission allowances under this subsection by an electricity local distribution company, that a new regulation be promulgated or rate proceeding be completed , after public notice and an opportunity for comment, and a new report be made available to the Administrator and the public, pursuant to subparagraph (A), not less frequently than every 5 years. (7)

Plans and reporting

(A)

Regulations

As part of the regulations promulgated under subsection (f), the Administrator shall prescribe requirements governing plans and reports to be submitted in accordance with this paragraph. (B)

Plans

Not later than April 30 of 2011 and every 5 years thereafter through 2026, each electricity local distribution company shall submit to the Administrator a plan, approved by the State regulatory authority or other entity charged with regulating tor setting the retail rates of such company, describing such company’s plans for the disposition of the value of emission allowances to be received pursuant to this subsection and subsection (e), in accordance with the requirements of this subsection and subsection (e). Such plan shall include a description of the manner in which the company will provide to industrial retail ratepayers (including entities that receive emission allowances under part F) their ratable share of the value of such allowances. (C)

Reports

Not later than June 30 of 2013 and each calendar year thereafter through 2031, each electricity local distribution company shall submit a report to the Administrator, and to the relevant State regulatory authority or other entity charged with regulating or setting the retail electricity rates of such company, describing the disposition of the value of any emission allowances received by such company in the prior calendar year pursuant to this subsection and subsection (e), including— (i)a description of sales, transfer, exchange, or use by the company for compliance with obligations under this title, of any such emission allowances; (ii)the monetary value received by the company, whether in money or in some other form, from the sale, transfer, or exchange of any such emission allowances; (iii)the manner in which the company’s disposition of any such emission allowances complies with the requirements of this subsection and of subsection (e), including each of the requirements of paragraph (5) of this subsection, including the requirement that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of such allowances; and (iv)such other information as the Administrator may require pursuant to subparagraph (A). (D)

Publication

The Administrator shall make available to the public all plans and reports submitted under this subsection, including by publishing such plans and reports on the Internet. (8)

Audits

Each year, the Administrator shall audit a representative sample of electricity local distribution companies to ensure that emission allowances distributed under this subsection have been used exclusively for the benefit of retail ratepayers and that such companies are complying with the requirements of this subsection and of subsection (e), including the requirement that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of such allowances. In selecting companies for audit, the Administrator shall take into account any credible evidence of noncompliance with such requirements. The Administrator shall make available to the public a report describing the results of each such audit, including by publishing such report on the Internet. (9)

Enforcement

A violation of any requirement of this subsection or of subsection (e) shall be a violation of this Act. Each emission allowance the value of which is used in violation of the requirements of this subsection or of subsection (e) shall be a separate violation. (c)

Merchant coal units

(1)

Qualifying emissions

The qualifying emissions for a merchant coal unit for a given calendar year shall be the product of the number of megawatt hours of merchant coal unit sales generated by such unit in such calendar year and the average carbon dioxide emissions per megawatt hour generated by such unit during the base period under paragraph (2), provided that the number of megawatt hours in a given calendar year for purposes of such calculation shall be reduced in proportion to the portion of such unit’s carbon dioxide emissions that are either— (A)captured and sequestered in such calendar year; or (B)attributable to the combustion or gasification of biomass, to the extent that the owner or operator of the unit is not required to hold emission allowances for such emissions. (2)

Base period

For purposes of this subsection, the base period for a merchant coal unit shall be— (A)calendar years 2006 through 2008; or (B)in the case of a new merchant coal unit— (i)the first full calendar year of operation of such unit, provided that such year shall not be any year after calendar year 2012; or (ii)calendar year 2012, if such unit commences operation on or after January 1, 2012. (3)

Phase-down schedule

The Administrator shall identify an annual phase-down factor, applicable to distributions to merchant coal units for each of vintage years 2012 through 2029, that corresponds to the overall decline in the amount of emission allowances allocated to the electricity sector in such years pursuant to section 782(a)(1). Such factor shall— (A)for vintage year 2012, be equal to 1.0; (B)for each of vintage years 2013 through 2029, correspond to the quotient of— (i)the quantity of emission allowances allocated under section 782(a)(1) for such vintage year; divided by (ii)the quantity of emission allowances allocated under section 782(a)(1) for vintage year 2012. (4)

Distribution of emission allowances

Not later than March 1 of 2013 and each calendar year through 2030, the Administrator shall distribute emission allowances of the preceding vintage year to the owner or operator of each merchant coal unit described in subsection (a)(6)(C) in an amount equal to the product of— (A)0.5; (B)the qualifying emissions for such merchant coal unit for the preceding year, as determined under paragraph (1); and (C)the phase-down factor for the preceding calendar year, as identified under paragraph (3). (5)

Adjustment

(A)

Study

Not later than July 1, 2014, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall complete a study to determine whether the allocation formula under paragraph (3) is resulting in, or is likely to result in, windfall profits to merchant coal generators or substantially disparate treatment of merchant coal generators operating in different markets or regions. (B)

Regulation

If the Administrator, in consultation with the Federal Energy Regulatory Commission, makes an affirmative finding of windfall profits or disparate treatment under subparagraph (A), the Administrator shall, not later than 18 months after the completion of the study described in subparagraph (A), promulgate regulations providing for the adjustment of the allocation formula under paragraph (3) to mitigate, to the extent practicable, such windfall profits, if any, and such disparate treatment, if any. (6)

Limitation on allowances

Notwithstanding paragraph (4) or (5), for each vintage year the Administrator shall distribute under this subsection no more than 10 percent of the total quantity of emission allowances available for such vintage year for distribution to the electricity sector under section 782(a)(1). If the quantity of emission allowances that would otherwise be distributed pursuant to paragraph (4) or (5) for any vintage year would exceed such limit, the Administrator shall distribute 10 percent of the total emission allowances available for distribution under section 782(a)(1) for such vintage year ratably among merchant coal generators based on the applicable formula under paragraph (4) or (5). (7)

Eligibility

The owner or operator of a merchant coal unit shall not be eligible to receive emission allowances under this subsection for any vintage year for which such owner or operator has elected to receive emission allowances for the same unit under subsection (d). (d)

Long-term contract generators

(1)

Distribution

Not later than March 1 of 2013 and each calendar year through 2030, the Administrator shall distribute to the owner or operator of each long-term contract generator a quantity of emission allowances of the preceding vintage year that is equal to the sum of— (A)the number of tons of carbon dioxide emitted as a result of a qualifying electricity sales agreement referred to in subsection (a)(5)(B)(i); and (B)the incremental number of tons of carbon dioxide emitted solely as a result of a qualifying thermal sales agreement referred to in subsection (a)(5)(B)(ii), provided that in no event shall the Administrator distribute more than 1 emission allowance for the same ton of emissions. (2)

Limitation on allowances

Notwithstanding paragraph (1), for each vintage year the Administrator shall distribute under this subsection no more than 4.3 percent of the total quantity of emission allowances available for such vintage year for distribution to the electricity sector under section 782(a)(1). If the quantity of emission allowances that would otherwise be distributed pursuant to paragraph (1) for any vintage year would exceed such limit, the Administrator shall distribute 4.3 percent of the total emission allowances available for distribution under section 782(a)(1) for such vintage year ratably among long-term contract generators based on paragraph (1). (3)

Eligibility

(A)

Facility eligibility

The owner or operator of a facility shall cease to be eligible to receive emission allowances under this subsection upon the earliest date on which the facility no longer meets each and every element of the definition of a long-term contract generator under subsection (a)(5). (B)

Contract eligibility

The owner or operator of a facility shall cease to be eligible to receive emission allowances under this subsection based on an electricity or thermal sales agreement referred to in subsection (a)(5)(B) upon the earliest date that such agreement— (i)expires; (ii)is terminated; or (iii)is amended in any way that changes the location of the facility, the price (whether a fixed price or price formula) for electricity or thermal energy sold under such agreement, the quantity of electricity or thermal energy sold under the agreement, or the expiration or termination date of the agreement. (4)

Demonstration of eligibility

To be eligible to receive allowance distributions under this subsection, the owner or operator of a long-term contract generator shall submit each of the following in writing to the Administrator within 180 days after the date of enactment of this title, and not later than September 30 of each vintage year for which such generator wishes to receive emission allowances: (A)A certificate of representation described in section 700(15). (B)An identification of each owner and each operator of the facility. (C)An identification of the units at the facility and the location of the facility. (D)A written certification by the designated representative that the facility meets all the requirements of the definition of a long-term contract generator. (E)The expiration date of each qualifying electricity or thermal sales agreement referred to in subsection (a)(5)(B). (F)A copy of each qualifying electricity or thermal sales agreement referred to in subsection (a)(5)(B). (5)

Notification

Not later than 30 days after, in accordance with paragraph (3), a facility or an agreement ceases to meet the eligibility requirements for distribution of emission allowances pursuant to this subsection, the designated representative of such facility shall notify the Administrator in writing when, and on what basis, such facility or agreement ceased to meet such requirements. (e)

Small LDCs

(1)

Distribution

Not later than September 30 of each calendar year from 2011 through 2028, the Administrator shall, in accordance with this subsection, distribute emission allowances allocated pursuant to section 782(a)(2) for the following vintage year. Such allowances shall be distributed ratably among small LDCs based on historic emissions in accordance with the same measure of such emissions applied to each such small LDC for the relevant vintage year under subsection (b)(2) of this section. (2)

Uses

A small LDC receiving allowances under this section shall use such allowances exclusively for the following purposes: (A)Cost-effective programs to achieve electricity savings, provided that such savings shall not be transferred or used for compliance with section 610 of the Public Utility Regulatory Policies Act of 1978. (B)Deployment of technologies to generate electricity from renewable energy resources, provided that any Federal renewable electricity credits issued based on generation supported under this section shall be submitted to the Federal Energy Regulatory Commission for voluntary retirement and shall not be used for compliance with section 610 of the Public Utility Regulatory Policies Act of 1978. (C)Assistance programs to reduce electricity costs for low-income residential ratepayers of such small LDC, provided that such assistance is made available equitably to all residential ratepayers below a certain income level, which shall not be higher than 200 percent of the poverty line (as that term is defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)). (3)

Requirements

As part of the regulations promulgated under subsection (f), the Administrator shall prescribe— (A)after consultation with the Federal Energy Regulatory Commission, requirements to ensure that programs and projects under paragraph (2)(A) and (B) are consistent with the standards established by, and effectively supplement electricity savings and generation of electricity from renewable energy resources achieved by, the Combined Efficiency and Renewable Electricity Standard established under section 610 of the Public Utility Regulatory Policies Act of 1978; (B)eligibility criteria and guidelines for consumer assistance programs for low-income residential ratepayers under paragraph (2)(C); and (C)such other requirements as the Administrator determines appropriate to ensure compliance with the requirements of this subsection. (4)

Reporting

Reports submitted under subsection (b)(7) shall include, in accordance with such requirements as the Administrator may prescribe— (A)a description of any facilities deployed under paragraph (2)(A), the quantity of resulting electricity generation from renewable energy resources; (B)an assessment demonstrating the cost-effectiveness of, and electricity savings achieved by, programs supported under paragraph (2)(B); and (C)a description of assistance provided to low-income retail ratepayers under paragraph (2)(C). (f)

Regulations

Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall promulgate regulations to implement the requirements of this section.

784.

Natural gas consumers

(a)

Definitions

For purposes of this section: (1)

Cost-effective

The term cost-effective, with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer. (2)

Natural gas local distribution company

The term natural gas local distribution company means a natural gas local distribution company that is a covered entity. (3)

Non-covered entity

The term non-covered entity means, when used in reference to a date or period prior to the enactment of this title, an entity that would not have been a covered entity if this title had been in effect during such date or period. (4)

State regulatory authority

The term State regulatory authority has the meaning given the term State commission in section 2(8) of the Natural Gas Act (15 U.S.C. 717a(8)). (b)

Distribution

Not later than June 30 of 2015 and each calendar year thereafter through 2028, the Administrator shall distribute to natural gas local distribution companies for the benefit of retail ratepayers the quantity of emission allowances allocated for the following vintage year pursuant to section 782(b). Such allowances shall be distributed among local natural gas distribution companies based on the following formula: (1)

Initial formula

Except as provided in paragraph (2), for each vintage year, the Administrator shall distribute emission allowances among natural gas local distribution companies ratably based on each such company’s annual average retail natural gas deliveries for 2006 through 2008 to customers that were non-covered entities, unless the owner or operator of the company selects 3 other consecutive years between 1999 and 2008, inclusive, and timely notifies the Administrator of its selection. (2)

Updating

Prior to distributing 2019 vintage year emission allowances and at 3-year intervals thereafter, the Administrator shall update the distribution formula under this subsection to reflect changes in each natural gas local distribution company’s service territory since the most recent formula was established. For each successive 3-year period, the Administrator shall distribute allowances ratably among natural gas local distribution companies based on the product of— (A)each natural gas local distribution company’s average annual natural gas deliveries per customer to customers that were non-covered entities during calendar years 2006 through 2008, or during the 3 alternative consecutive years selected by such company under paragraph (1); and (B)the number of customers of such natural gas local distribution company that are not covered entities in the most recent year in which the formula is updated under this paragraph. (c)

Use of allowances

(1)

Ratepayer benefit

Emission allowances distributed to a natural gas local distribution company under this section shall be used exclusively for the benefit of retail ratepayers of such natural gas local distribution company other than covered entities and may not be used to support natural gas sales or deliveries to entities or persons other than such ratepayers. (2)

Ratepayer classes

In using emission allowances distributed under this section for the benefit of ratepayers, a natural gas local distribution company shall ensure that ratepayer benefits are distributed— (A)among ratepayer classes ratably based on natural gas deliveries to each class, excluding deliveries to covered entities; and (B)equitably among individual ratepayers other than covered entities within each ratepayer class. (3)

Limitation

In general, a natural gas local distribution company shall not use the value of emission allowances distributed under this section to provide to any ratepayer a rebate that is based solely on the quantity of natural gas delivered to such ratepayer. To the extent a natural gas local distribution company uses the value of emission allowances distributed under this section to provide rebates, it shall, to the maximum extent practicable, provide such rebates with regard to the fixed portion of ratepayers’ bills or as a fixed creditor rebate on natural gas bills. (4)

Industrial ratepayers

Notwithstanding paragraph (3), if compliance with the requirements of this title results (or would otherwise result) in an increase in natural gas costs for industrial retail ratepayers of any given natural gas local distribution company that are not covered entities (including entities that receive emission allowances pursuant to part F), such natural gas local distribution company— (A)shall pass through to industrial retail ratepayers that are not covered entities their ratable share (based on deliveries to each ratepayer class) of the value of the emission allowances distributed to such company under this subsection, to reduce natural gas cost impacts on such ratepayers; and (B)may do so based on the quantity of natural gas delivered to individual industrial retail ratepayers. (5)

Energy efficiency programs

The value of no less than one third of the emission allowances distributed to natural gas local distribution companies pursuant to this section in any calendar year shall be used for cost-effective energy efficiency programs for natural gas consumers. Such programs must be authorized and overseen by the State regulatory authority, or by the entity with authority to regulate or set retail natural gas rates in the case of a natural gas local distribution company that is not regulated by a State regulatory authority. (6)

Certain intracompany deliveries

If a natural gas local distribution company makes an intracompany delivery of natural gas to a customer that is not a covered entity, for which such company is required to hold emission allowances under section 722, such customer shall, for purposes of this section, be considered a retail ratepayer and a member of a ratepayer class to be determined by the relevant State regulatory authority, or other entity with authority to regulate or set natural gas rates in the case of a company not regulated by a State regulatory authority. (7)

Guidelines

As part of the regulations promulgated under subsection (h), the Administrator shall, after consultation with State regulatory authorities, prescribe guidelines for the implementation of the requirements of this subsection. Such guidelines shall include requirements to ensure that industrial retail ratepayers that are not covered entities (including entities that receive emission allowances under part F) receive their ratable share of the value of the allowances distributed to each natural gas local distribution company pursuant to this section. (d)

Regulatory proceedings

(1)

Requirement

No natural gas local distribution company shall be eligible to receive emission allowances under this section unless the State regulatory authority with authority over the retail rates of such company, or the entity with authority to regulate or set retail rates of a natural gas local distribution company not regulated by a State regulatory authority, has— (A)after public notice and an opportunity for comment, promulgated a regulation or completed a public rate proceeding (or the equivalent, in the case of a ratemaking entity other than a State regulatory authority) that provides for the full implementation of the requirements of subsection (c); and (B)made available to the Administrator and the public a report describing, in adequate detail, the manner in which the requirements of subsection (c) will be implemented. (2)

Updating

The Administrator shall require, as a condition of continued receipt of emission allowances under this section, that a new regulation be promulgated or rate proceeding be completed, after public notice and an opportunity for comment, and a new report be made available to the Administrator and the public, pursuant to paragraph (1), not less frequently than every 5 years. (e)

Plans and reporting

(1)

Regulations

As part of the regulations promulgated under subsection (h), the Administrator shall prescribe requirements governing plans and reports to be submitted in accordance with this subsection. (2)

Plans

Not later than April 30 of 2015 and every 5 years thereafter through 2025, each natural gas local distribution company shall submit to the Administrator a plan, approved by the State regulatory authority or other entity charged with regulating or setting the retail rates of such company, describing such company’s plans for the disposition of the value of emission allowances to be received pursuant to this section, in accordance with the requirements of this section. (3)

Reports

Not later than June 30 of 2017 and each calendar year thereafter through 2031, each natural gas local distribution company shall submit a report to the Administrator, approved by the relevant State regulatory authority or other entity charged with regulating or setting the retail natural gas rates of such company, describing the disposition of the value of any emission allowances received by such company in the prior calendar year pursuant to this section, including— (A)a description of sales, transfer, exchange, or use by the company for compliance with obligations under this title, of any such emission allowances; (B)the monetary value received by the company, whether in money or in some other form, from the sale, transfer, or exchange of emission allowances received by the company under this section; (C)the manner in which the company’s disposition of emission allowances received under this section complies with the requirements of this section, including each of the requirements of subsection (c); (D)the cost-effectiveness of, and energy savings achieved by, energy efficiency programs supported through such emission allowances; and (E)such other information as the Administrator may require pursuant to paragraph (1). (4)

Publication

The Administrator shall make available to the public all plans and reports submitted by natural gas local distribution companies under this subsection, including by publishing such plans and reports on the Internet. (f)

Audits

Each year, the Administrator shall audit a representative sample of natural gas local distribution companies to ensure that emission allowances distributed under this section have been used exclusively for the benefit of retail ratepayers and that such companies are complying with the requirements of this section. In selecting companies for audit, the Administrator shall take into account any credible evidence of noncompliance with such requirements. The Administrator shall make available to the public a report describing the results of each such audit, including by publishing such report on the Internet. (g)

Enforcement

A violation of any requirement of this section shall be a violation of this Act. Each emission allowance the value of which is used in violation of the requirements of this section shall be a separate violation. (h)

Regulations

Not later than January 1, 2014, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall promulgate regulations to implement the requirements of this section.

785.

Home heating oil, propane, and kerosene consumers

(a)

Definitions

For purposes of this section: (1)

Carbon content

The term carbon content means the amount of carbon dioxide that would be emitted as a result of the combustion of a fuel. (2)

Cost-effective

The term cost-effective has the meaning given that term in section 784(a)(1). (3)

Oilheat fuel

The term oilheat fuel means fuel that— (A)is— (i)No. 1 distillate; (ii)No. 2 dyed distillate; (iii)a liquid blended with No. 1 distillate or No. 2 dyed distillate; or (iv)a biobased liquid; and (B)is used as a fuel for nonindustrial commercial or residential space or hot water heating. (b)

Distribution among states

Not later than September 30 of each of calendar years 2011 through 2028, the Administrator shall distribute among the States, in accordance with this section, the quantity of emission allowances allocated for the following vintage year pursuant to section 782(c). The Administrator shall distribute emission allowances among the States under this section each year ratably based on the ratio of— (1)the carbon content of oilheat fuel, propane, and kerosene sold to consumers within each State in the preceding year for residential or commercial uses; to (2)the carbon content of oilheat fuel, propane, and kerosene sold to consumers within the United States in the preceding year for residential or commercial uses. (c)

Use of allowances

(1)

In general

States shall use emission allowances distributed under this section exclusively for the benefit of consumers of oilheat fuel, propane, or kerosene for residential or commercial purposes. Such proceeds shall be used exclusively for— (A)cost-effective energy efficiency programs for consumers that use oilheat fuel, propane, or kerosene for residential or commercial purposes; or (B)rebates or other direct financial assistance programs for consumers of oilheat fuel, propane, or kerosene used for residential or commercial purposes. (2)

Administration and delivery mechanisms

In administering programs supported by this section, States shall (A)use no less than 50 percent of the value of emission allowances received under this section for cost-effective energy efficiency programs to reduce consumers’ overall fuel costs; (B)to the extent practicable, deliver consumer support under this section through existing energy efficiency and consumer energy assistance programs or delivery mechanisms, including, where appropriate, programs or mechanisms administered by parties other than the State; and (C)seek to coordinate the administration and delivery of energy efficiency and consumer energy assistance programs supported under this section, with one another and with existing programs for various fuel types, so as to deliver comprehensive, fuel-blind, coordinated programs to consumers. (d)

Reporting

Each State receiving emission allowances under this section shall submit to the Administrator, within 12 months of each receipt of such allowances, a report, in accordance with such requirements as the Administrator may prescribe, that— (1)describes the State’s use of emission allowances distributed under this section, including a description of the energy efficiency and consumer assistance programs supported with such allowances; (2)demonstrates the cost-effectiveness of, and the energy savings and greenhouse gas emissions reductions achieved by, energy efficiency programs supported under this section; and (3)includes a report prepared by an independent third party, in accordance with such regulations as the Administrator may promulgate, evaluating the performance of the energy efficiency and consumer assistance programs supported under this section. (e)

Enforcement

If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold a portion of the emission allowances, the quantity of which is equal to up to twice the quantity of the allowances that the State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States ratably in accordance with the formula in subsection (b).

787.

Allocations to refineries

(a)

Purpose

The purpose of this section is to provide emission allowance rebates to petroleum refineries in the United States in a manner that promotes energy efficiency and a reduction in greenhouse gas emissions at such facilities. (b)

Definitions

In this section: (1)

Emissions

The term emissions includes direct emissions from fuel combustion, process emissions, and indirect emissions from the generation of electricity, steam, and hydrogen used to produce the output of a petroleum refinery or the petroleum refinery sector. (2)

Petroleum refinery

The term petroleum refinery means a facility classified under code 324110 of the North American Industrial Classification System of 2002. (3)

Small business refiner

The term small business refiner means a refiner that meets the applicable Federal refinery capacity and employee limitations criteria described in section 45H(c)(1) of the Internal Revenue Code of 1986 (as in effect on the date of enactment of this section and without regard to section 45H(d)). Eligibility of a small business refiner under this paragraph shall not be recalculated or disallowed on account of (i) its merger with another small business refiner or refiners after December 31, 2002 or (ii) its acquisition of another small business refiner (or refinery of such refiner) after December 31, 2002. (c)

In general

For each vintage year between 2014 and 2026, the Administrator shall distribute allowances pursuant to this section to owners and operators of petroleum refineries, including small business refiners, in the United States. (d)

Distribution schedule

The Administrator shall distribute emission allowances pursuant to the regulations issued under subsection (e) for each vintage year no later than October 31 of the preceding calendar year. (e)

Regulations

Not later than 3 years after the date of enactment of this title, the Administrator, in consultation with the Administrator of the Energy Information Administration, shall promulgate regulations that establish a formula for distributing emission allowances consistent with the purpose of this section. In establishing such formula, the Administrator shall consider the relative complexity of refinery processes and appropriate mechanisms to take energy efficiency and greenhouse gas reductions into account. If a petroleum refinery’s electricity provider received a free allocation of emission allowances pursuant to section 782(a), the Administrator shall take this free allocation into account when establishing such formula to avoid rebates to a petroleum refinery for costs that the Administrator determines were not incurred by the petroleum refinery because the allowances were freely allocated to the petroleum refinery’s electricity provider and used for the benefit of the petroleum refinery. This formula shall apply separately to the distribution of allowances allocated pursuant to section 782(j)(1) and to those allocated under section 782(j)(2).

788.

SECTION RESERVED

789.

Climate change consumer refunds

(a)

Refund

In each year after deposits are made to the Climate Change Consumer Refund Account, the Secretary of the Treasury shall provide tax refunds on a per capita basis to each household in the United States that shall collectively equal the amount deposited into the Climate Change Consumer Refund Account. (b)

Limitations

The Secretary of the Treasury shall establish procedures to ensure that individuals who are not— (1)citizens or nationals of the United States; or (2)immigrants lawfully residing in the United States, are excluded for the purpose of calculating and distributing refunds under this section.

790.

Exchange for State-issued allowances

(a)

In general

Not later than one year after the date of enactment of this title, the Administrator shall issue regulations allowing any person in the United States to exchange greenhouse gas emission allowances issued before December 31, 2011, by the State of California or for the Regional Greenhouse Gas Initiative, or the Western Climate Initiative (in this section referred to as State allowances) for emission allowances established by the Administrator under section 721(a). (b)

Regulations

Regulations issued under subsection (a) shall— (1)provide that a person exchanging State allowances under this section receive emission allowances established under section 721(a) in the amount that is sufficient to compensate for the cost of obtaining and holding such State allowances; (2)establish a deadline by which persons must exchange the State allowances; and (3)provide that the Federal emission allowances disbursed pursuant to this section shall be deducted from the allowances to be auctioned pursuant to section 782(d). (c)

Cost of obtaining State allowance

For purposes of this section, the cost of obtaining a State allowance shall be the average auction price, for emission allowances issued in the year in which the State allowance was issued, under the program under which the State allowance was issued.

791.

Auction procedures

(a)

In general

To the extent that auctions of emission allowances by the Administrator are authorized by this part, such auctions shall be carried out pursuant to this section and the regulations established hereunder. (b)

Initial regulations

Not later than 12 months after the date of enactment of this title, the Administrator, in consultation with other agencies, as appropriate, shall promulgate regulations governing the auction of allowances under this section. Such regulations shall include the following requirements: (1)

Frequency; first auction

Auctions shall be held four times per year at regular intervals, with the first auction to be held no later than March 31, 2011. (2)

Auction schedule; current and future vintages

The Administrator shall, at each quarterly auction under this section, offer for sale both a portion of the allowances with the same vintage year as the year in which the auction is being conducted and a portion of the allowances with vintage years from future years. The preceding sentence shall not apply to auctions held before 2012, during which period, by necessity, the Administrator shall auction only allowances with a vintage year that is later than the year in which the auction is held. Beginning with the first auction and at each quarterly auction held thereafter, the Administrator may offer for sale allowances with vintage years of up to four years after the year in which the auction is being conducted, except as provided in section 782(p). (3)

Auction format

Auctions shall follow a single-round, sealed-bid, uniform price format. (4)

Participation; financial assurance

Auctions shall be open to any person, except that the Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids. (5)

Disclosure of beneficial ownership

Each bidder in the auction shall be required to disclose the person or entity sponsoring or benefitting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder. (6)

Purchase limits

No person may, directly or in concert with another participant, purchase more than 5 percent of the allowances offered for sale at any quarterly auction. (7)

Publication of information

After the auction, the Administrator shall, in a timely fashion, publish the identities of winning bidders, the quantity of allowances obtained by each winning bidder, and the auction clearing price. (8)

Other requirements

The Administrator may include in the regulations such other requirements or provisions as the Administrator, in consultation with other agencies, as appropriate, considers appropriate to promote effective, efficient, transparent, and fair administration of auctions under this section. (c)

Revision of regulations

The Administrator may, in consultation with other agencies, as appropriate, at any time, revise the initial regulations promulgated under subsection (b) by promulgating new regulations. Such revised regulations need not meet the requirements identified in subsection (b) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this subsection, the Administrator shall not consider maximization of revenues to the Federal Government. (d)

Reserve auction price

The minimum reserve auction price shall be $10 (in constant 2009 dollars) for auctions occurring in 2012. The minimum reserve price for auctions occurring in years after 2012 shall be the minimum reserve auction price for the previous year increased by 5 percent plus the rate of inflation (as measured by the Consumer Price Index for all urban consumers). (e)

Delegation or contract

Pursuant to regulations under this section, the Administrator may by delegation or contract provide for the conduct of auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations. (f)

Small business refiner reserve

The Administrator shall, in accordance with this subsection, issue regulations setting aside a specified number of allowances that small business refiners may purchase at the average auction price and may use to demonstrate compliance pursuant to section 722. These regulations shall provide the following: (1)

Amount

The Administrator shall place in the small business refiner reserve account allowances that are to be sold at auction pursuant to the allocations in section 782 in an amount equal to— (A)6.2 percent of the emission allowances established under section 721(a) for each vintage year from 2012 through 2013; (B)5.4 percent of the emission allowances established under section 721(a) for each vintage year from 2014 through 2015; and (C)4.9 percent of the emission allowances established under section 721(a) for each vintage year from 2016 through 2024. (2)

Allowed purchases

From January 1 of the calendar year that matches the vintage year for which allowances have been placed in the reserve, through January 14 of the following year, small business refiners (as defined in section 787(b)) may purchase allowances from this reserve at the price determined pursuant to paragraph (3). (3)

Price

The price for allowances purchased from this reserve shall be the average auction price for allowances of the same vintage year purchased at auctions conducted pursuant to this section during the 12 months preceding the purchase of the allowances. (4)

Use of allowances

Allowances purchased from this reserve shall only be used by the purchaser to demonstrate compliance pursuant to section 722 for attributable greenhouse gas emissions in the calendar year that matches the vintage year of the purchased allowance. Allowances purchased from this reserve may not be banked, traded or borrowed. (5)

Limitations on purchase amount

The Administrator, by regulation adopted after public notice and an opportunity for comment, shall establish procedures to distribute the ability to purchase allowances from the reserve fairly among all small business refiners interested in purchasing allowances from this reserve so as to address the potential that requests to purchase allowances exceed the number of allowances available in the reserve. This regulation may place limits on the number of allowances a small business refiner may purchase from the reserve. (6)

Unsold allowances

Vintage year allowances not sold from the reserve on or before January 15 of the calendar year following the vintage year shall be sold at an auction conducted pursuant to this section no later than March 31 of the calendar year following the vintage year. If significantly more allowances are being placed in the reserve than are being purchased from the reserve several years in a row, the Administrator may adjust either the percent of allowances placed in the reserve or the date by which allowances may be purchased from the reserve.

792.

Auctioning allowances for other entities

(a)

Consignment

Any entity holding emission allowances or compensatory allowances may request that the Administrator auction, pursuant to section 791, the allowances on consignment. (b)

Pricing

When the Administrator acts under this section as the agent of an entity in possession of emission allowances or compensatory allowances, the Administrator is not obligated to obtain the highest price possible for the allowances, and instead shall auction consignment allowances in the same manner and pursuant to the same rules as auctions of other allowances under section 791. The Administrator may permit the entity offering the allowance for sale to condition the sale of its allowances pursuant to this section on a minimum reserve price that is different than the reserve auction price set pursuant to section 791(d). (c)

Proceeds

For emission allowances and compensatory allowances auctioned pursuant to this section, notwithstanding section 3302 of title 31, United States Code, or any other provision of law, within 90 days of receipt, the United States shall transfer the proceeds from the auction to the entity which held the allowances auctioned. No funds transferred from a purchaser to a seller of emission allowances or compensatory allowances under this subsection shall be held by any officer or employee of the United States or treated for any purpose as public monies. (d)

Unsold allowances

Allowances offered for sale under this section that are not sold shall be returned to the entity in possession of the allowance, notwithstanding section 726(b)(2)(A). (e)

Regulations

The Administrator shall issue regulations within 24 months after the date of enactment of this title to implement this section.

793.

Establishment of funds

There is hereby established in the Treasury of the United States the following separate accounts: (1)The Strategic Reserve Fund. (2)The Climate Change Consumer Refund Account. (3)The Climate Change Worker Adjustment Assistance Fund.

794.

Oversight of allocations

(a)

In general

Not later than January 1, 2014, and every 2 years thereafter, the Comptroller General of the United States shall carry out and report to Congress on the results of a review of programs administered by the Federal Government that distribute emission allowances or funds from any Federal auction of allowances. (b)

Contents

Each such report shall include a comprehensive evaluation of the administration and effectiveness of each program, including— (1)the efficiency, transparency, and soundness of the administration of each program; (2)the performance of activities receiving assistance under each program; (3)the cost-effectiveness of each program in achieving the stated purposes of the program; and (4)recommendations, if any, for legislative, regulatory, or administrative changes to each program to improve its effectiveness. (c)

Focus

In evaluating program performance, each review under this section review shall address the effectiveness of such programs in— (1)creating and preserving jobs; (2)ensuring a manageable transition for working families and workers; (3)reducing the emissions, or enhancing sequestration, of greenhouse gases; (4)developing clean technologies; and (5)building resilience to the impacts of climate change.

.

C

Additional greenhouse gas standards

331.

Greenhouse gas standards

The Clean Air Act (42 U.S.C. 7401 and following), as amended by subtitles A and B of this title, is further amended by adding the following new title after title VII: A

Stationary Source Standards

811.

Standards of performance

(a)

Uncapped stationary sources

(1)

Inventory of source categories

(A)Within 12 months after the date of enactment of this title, the Administrator shall publish under section 111(b)(1)(A) an inventory of categories of stationary sources that consist of those categories that contain sources that individually had uncapped greenhouse gas emissions greater than 10,000 tons of carbon dioxide equivalent and that, in the aggregate, were responsible for emitting at least 20 percent annually of the uncapped greenhouse gas emissions. (B)The Administrator shall include in the inventory under this paragraph each source category that is responsible for at least 10 percent of the uncapped methane emissions in 2005. Notwithstanding any other provision, the inventory required by this section shall not include sources of enteric fermentation. The list under this paragraph shall include industrial sources, the emissions from which, when added to the capped emissions from industrial sources, constitute at least 95 percent of the greenhouse gas emissions of the industrial sector. (C)For purposes of this subsection, emissions shall be calculated using tons of carbon dioxide equivalents. In promulgating the inventory required by this paragraph and the schedule required under by paragraph (2)(C), the Administrator shall use the most current emissions data available at the time of promulgation, except as provided in subparagraph (B). (D)Notwithstanding any other provisions, the Administrator may list under 111(b) any source category identified in the inventory required by this subsection without making a finding that the source category causes or contributes significantly to, air pollution with may be reasonably anticipated to endanger public health or welfare. (2)

Standards and schedule

(A)For each category identified as provided in paragraph (1), the Administrator shall promulgate standards of performance under section 111 for the uncapped emissions of greenhouse gases from stationary sources in that category and shall promulgate corresponding regulations under section 111(d). (B)The Administrator shall promulgate standards as required by this subsection for stationary sources in categories identified as provided in paragraph (1) as expeditiously as practicable, assuring that— (i)standards for identified source categories that, combined, emitted 80 percent or more of the greenhouse gas emissions of the identified source categories shall be promulgated not later than 3 years after the date of enactment of this title and shall include standards for natural gas extraction; and (ii)for all other identified source categories— (I)standards for not less than an additional 25 percent of the identified categories shall be promulgated not later than 5 years after the date of enactment of this title; (II)standards for not less than an additional 25 percent of the identified categories shall be promulgated not later than 7 years after the date of enactment of this title; and (III)standards for all the identified categories shall be promulgated not later than 10 years after the date of enactment of this title. (C)Not later than 24 months after the date of enactment of this title and after notice and opportunity for comment, the Administrator shall publish a schedule establishing a date for the promulgation of standards for each category of sources identified pursuant to paragraph (1). The date for each category shall be consistent with the requirements of subparagraph (B). The determination of priorities for the promulgation of standards pursuant to this paragraph is not a rulemaking and shall not be subject to judicial review, except that failure to promulgate any standard pursuant to the schedule established by this paragraph shall be subject to review under section 304(a)(2). (D)Notwithstanding section 307, no action of the Administrator listing a source category under paragraph (1) shall be a final agency action subject to judicial review, except that any such action may be reviewed under section 307 when the Administrator issues performance standards for such category. (b)

Capped sources

No standard of performance shall be established under section 111 for capped greenhouse gas emissions from a capped source unless the Administrator determines that such standards are appropriate because of effects that do not include climate change effects. In promulgating a standard of performance under section 111 for the emission from capped sources of any air pollutant that is not a greenhouse gas, the Administrator shall treat the emission of any greenhouse gas by those entities as a nonair quality public health and environmental impact within the meaning of section 111(a)(1). (c)

Performance standards

For purposes of setting a performance standard for source categories identified pursuant to subsection (a)— (1)The Administrator shall take into account the goal of reducing total United States greenhouse gas emissions as set forth in section 702. (2)The Administrator may promulgate a design, equipment, work practice, or operational standard, or any combination thereof, under section 111 in lieu of a standard of performance under that section without regard to any determination of feasibility that would otherwise be required under section 111(h). (3)Notwithstanding any other provision, in setting the level of each standard required by this section, the Administrator shall take into account projections of allowance prices, such that the marginal cost of compliance (expressed as dollars per ton of carbon dioxide equivalent reduced) imposed by the standard would not, in the judgement of the Administrator, be expected to exceed the Administrator’s projected allowance prices over the time period spanning from the date of initial compliance to the date that the next revisions of the standard would come into effect pursuant to the schedule under section 111(b)(1)(B). (d)

Definitions

In this section, the terms uncapped greenhouse gas emissions and uncapped methane emissions mean those greenhouse gas or methane emissions, respectively, to which section 722 would not have applied if the requirements of this title had been in effect for the same year as the emissions data upon which the list is based. (e)

Study of the effects of performance standards

(1)

Study

The Administrator shall conduct a study of the impacts of performance standards required under this section, which shall evaluate the effect of such standards on the— (A)costs of achieving compliance with the economy-wide reduction goals specified in section 702 and the reduction targets specified in section 703; (B)available supply of offset credits; and (C)ability to achieve the economy-wide reduction goals specified in section 702 and any other benefits of such standards. (2)

Report

The Administrator shall submit to the House Energy and Commerce Committee a report that describes the results of the study not later than 18 months after the publication of the standards required under subsection (a)(2)(B)(i).

C

Exemptions From Other Programs

831.

Criteria pollutants

As of the date of the enactment of the Safe Climate Act, no greenhouse gas may be added to the list under section 108(a) on the basis of its effect on global climate change.

832.

International air pollution

Section 115 shall not apply to an air pollutant with respect to that pollutant’s contribution to global warming.

833.

Hazardous air pollutants

No greenhouse gas may be added to the list of hazardous air pollutants under section 112 unless such greenhouse gas meets the listing criteria of section 112(b) independent of its effects on global climate change.

834.

New source review

The provisions of part C of title I shall not apply to a major emitting facility that is initially permitted or modified after January 1, 2009, on the basis of its emissions of any greenhouse gas.

835.

Title V permits

Notwithstanding any provision of title III or V, no stationary source shall be required to apply for, or operate pursuant to, a permit under title V, solely because the source emits any greenhouse gases that are regulated solely because of their effect on global climate change.

.

332.

HFC Regulation

(a)

In general

Title VI of the Clean Air Act (42 U.S.C. 7671 et seq.) (relating to stratospheric ozone protection) is amended by adding at the end the following:

619.

Hydrofluorocarbons (HFCs)

(a)

Treatment as class II, group II substances

Except as otherwise provided in this section, hydrofluorocarbons shall be treated as class II substances for purposes of applying the provisions of this title. The Administrator shall establish two groups of class II substances. Class II, group I substances shall include all hydrochlorofluorocarbons (HCFCs) listed pursuant to section 602(b). Class II, group II substances shall include each of the following: (1)Hydrofluorocarbon-23 (HFC-23). (2)Hydrofluorocarbon-32 (HFC-32). (3)Hydrofluorocarbon-41 (HFC-41). (4)Hydrofluorocarbon-125 (HFC-125). (5)Hydrofluorocarbon-134 (HFC-134). (6)Hydrofluorocarbon-134a (HFC-134a). (7)Hydrofluorocarbon-143 (HFC-143). (8)Hydrofluorocarbon-143a (HFC-143a). (9)Hydrofluorocarbon-152 (HFC-152). (10)Hydrofluorocarbon-152a (HFC-152a). (11)Hydrofluorocarbon-227ea (HFC-227ea). (12)Hydrofluorocarbon-236cb (HFC-236cb). (13)Hydrofluorocarbon-236ea (HFC-236ea). (14)Hydrofluorocarbon-236fa (HFC-236fa). (15)Hydrofluorocarbon-245ca (HFC-245ca). (16)Hydrofluorocarbon-245fa (HFC-245fa). (17)Hydrofluorocarbon-365mfc (HFC-365mfc). (18)Hydrofluorocarbon-43-10mee (HFC-43-10mee). (19)Hydrofluoroolefin-1234yf (HFO-1234yf). (20)Hydrofluoroolefin-1234ze (HFO-1234ze).Not later than 6 months after the date of enactment of this title, the Administrator shall publish an initial list of class II, group II substances, which shall include the substances listed in this subsection. The Administrator may add to the list of class II, group II substances any other substance used as a substitute for a class I or II substance if the Administrator determines that 1 metric ton of the substance makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide. Within 24 months after the date of enactment of this section, the Administrator shall amend the regulations under this title (including the regulations referred to in sections 603, 608, 609, 610, 611, 612, and 613) to apply to class II, group II substances. (b)

Consumption and production of Class II, Group II substances

(1)

In general

(A)

Consumption phase down

In the case of class II, group II substances, in lieu of applying section 605 and the regulations thereunder, the Administrator shall promulgate regulations phasing down the consumption of class II, group II substances in the United States, and the importation of products containing any class II, group II substance, in accordance with this subsection within 18 months after the date of enactment of this section. Effective January 1, 2012, it shall be unlawful for any person to produce any class II, group II substance, import any class II, group II substance, or import any product containing any class II, group II substance without holding one consumption allowance or one destruction offset credit for each carbon dioxide equivalent ton of the class II, group II substance. Any person who exports a class II, group II substance for which a consumption allowance was retired may receive a refund of that allowance from the Administrator following the export. (B)

Production

If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, that restricts the production of class II, group II substances, the Administrator shall promulgate regulations establishing a baseline for the production of class II, group II substances in the United States and phasing down the production of class II, group II substances in the United States, in accordance with such multilateral agreement and subject to the same exceptions and other provisions as are applicable to the phase down of consumption of class II, group II substances under this section (except that the Administrator shall not require a person who obtains production allowances from the Administrator to make payment for such allowances if the person is making payment for a corresponding quantity of consumption allowances of the same vintage year). Upon the effective date of such regulations, it shall be unlawful for any person to produce any class II, group II substance without holding one consumption allowance and one production allowance, or one destruction offset credit, for each carbon dioxide equivalent ton of the class II, group II substance. (C)

Integrity of cap

To maintain the integrity of the class II, group II cap, the Administrator may, through rulemaking, limit the percentage of each person’s compliance obligation that may be met through the use of destruction offset credits or banked allowances. (D)

Counting of violations

Each consumption allowance, production allowance, or destruction offset credit not held as required by this section shall be a separate violation of this section. (2)

Schedule

Pursuant to the regulations promulgated pursuant to paragraph (1)(A), the number of class II, group II consumption allowances established by the Administrator for each calendar year beginning in 2012 shall be the following percentage of the baseline, as established by the Administrator pursuant to paragraph (3): Calendar YearPercent of Baseline2012902013 87.5201485201582.5201680201777.5201875201971202067202163202259202354202450202546202642202738202834202930203025203121203217after 203215 (3)

Baseline

(A)Within 12 months after the date of enactment of this section, the Administrator shall promulgate regulations to establish the baseline for purposes of paragraph (2). The baseline shall be the sum, expressed in metric tons of carbon dioxide equivalents, of— (i)the annual average consumption of all class II substances in calendar years 2004, 2005, and 2006; plus (ii)the annual average quantity of all class II substances contained in imported products in calendar years 2004, 2005, and 2006. (B)Notwithstanding subparagraph (A), if the Administrator determines that the baseline is higher than 370 million metric tons of carbon dioxide equivalents, then the Administrator shall establish the baseline at 370 million metric tons of carbon dioxide equivalents. (C)Notwithstanding subparagraph (A), if the Administrator determines that the baseline is lower than 280 million metric tons of carbon dioxide equivalents, then the Administrator shall establish the baseline at 280 million metric tons of carbon dioxide equivalents. (4)

Distribution of allowances

(A)

In general

Pursuant to the regulations promulgated under paragraph (1)(A), for each calendar year beginning in 2012, the Administrator shall sell consumption allowances in accordance with this paragraph. (B)

Establishment of pools

The Administrator shall establish two allowance pools. Eighty percent of the consumption allowances available for a calendar year shall be placed in the producer-importer pool, and 20 percent of the consumption allowances available for a calendar year shall be placed in the secondary pool. (C)

Producer-importer pool

(i)

Auction

(I) For each calendar year, the Administrator shall offer for sale at auction the following percentage of the consumption allowances in the producer-importer pool: Calendar YearPercent Available for Auction2012102013 202014302015402016502017602018702019802020 and thereafter90 (II)Any person who produced or imported any class II substance during calendar year 2004, 2005, or 2006 may participate in the auction. No other persons may participate in the auction unless permitted to do so pursuant to subclause (III). (III)Not later than three years after the date of the initial auction and from time to time thereafter, the Administrator shall determine through rulemaking whether any persons who did not produce or import a class II substance during calendar year 2004, 2005, or 2006 will be permitted to participate in future auctions. The Administrator shall base this determination on the duration, consistency, and scale of such person’s purchases of consumption allowances in the secondary pool under subparagraph (D)(ii)(III), as well as economic or technical hardship and other factors deemed relevant by the Administrator. (IV)The Administrator shall set a minimum bid per consumption allowance of the following: (aa)For vintage year 2012, $1.00. (bb)For vintage year 2013, $1.20. (cc)For vintage year 2014, $1.40. (dd)For vintage year 2015, $1.60. (ee)For vintage year 2016, $1.80. (ff)For vintage year 2017, $2.00. (gg)For vintage year 2018 and thereafter, $2.00 adjusted for inflation after vintage year 2017 based upon the producer price index as published by the Department of Commerce. (ii)

Non-auction sale

(I)For each calendar year, as soon as practicable after auction, the Administrator shall offer for sale the remaining consumption allowances in the producer-importer pool at the following prices: (aa)A fee of $1.00 per vintage year 2012 allowance. (bb)A fee of $1.20 per vintage year 2013 allowance. (cc)A fee of $1.40 per vintage year 2014 allowance. (dd)For each vintage year 2015 allowance, a fee equal to the average of $1.10 and the auction clearing price for vintage year 2014 allowances. (ee)For each vintage year 2016 allowance, a fee equal to the average of $1.30 and the auction clearing price for vintage year 2015 allowances. (ff)For each vintage year 2017 allowance, a fee equal to the average of $1.40 and the auction clearing price for vintage year 2016 allowances. (gg)For each allowance of vintage year 2018 and subsequent vintage years, a fee equal to the auction clearing price for that vintage year. (II)The Administrator shall offer to sell the remaining consumption allowances in the producer-importer pool to producers of class II, group II substances and importers of class II, group II substances in proportion to their relative allocation share. (III)Such allocation share for such sale shall be determined by the Administrator using such producer’s or importer’s annual average data on class II substances from calendar years 2004, 2005, and 2006, on a carbon dioxide equivalent basis, and— (aa)shall be based on a producer’s production, plus importation, plus acquisitions and purchases from persons who produced class II substances in the United States during calendar years 2004, 2005, or 2006, less exportation, less transfers and sales to persons who produced class II substances in the United States during calendar years 2004, 2005, or 2006; and (bb)for an importer of class II substances that did not produce in the United States any class II substance during calendar years 2004, 2005, and 2006, shall be based on the importer’s importation less exportation.For purposes of item (aa), the Administrator shall account for 100 percent of class II, group II substances and 60 percent of class II, group I substances. For purposes of item (bb), the Administrator shall account for 100 percent of class II, group II substances and 100 percent of class II, group I substances. (IV) Any consumption allowances made available for nonauction sale to a specific producer or importer of class II, group II substances but not purchased by the specific producer or importer shall be made available for sale to any producer or importer of class II substances during calendar years 2004, 2005, or 2006. If demand for such consumption allowances exceeds supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances that may include pro rata shares, historic production and importation, economic or technical hardship, or other factors deemed relevant by the Administrator. If the supply of such consumption allowances exceeds demand, the Administrator may offer such consumption allowances for sale in the secondary pool as set forth in subparagraph (D). (D)

Secondary pool

(i)For each calendar year, as soon as practicable after the auction required in subparagraph (C), the Administrator shall offer for sale the consumption allowances in the secondary pool at the prices listed in subparagraph (C)(ii). (ii) The Administrator shall accept applications for purchase of secondary pool consumption allowances from— (I)importers of products containing class II, group II substances; (II) persons who purchased any class II, group II substance directly from a producer or importer of class II, group II substances for use in a product containing a class II, group II substance, a manufacturing process, or a reclamation process; (III) persons who did not produce or import a class II substance during calendar year 2004, 2005, or 2006, but who the Administrator determines have subsequently taken significant steps to produce or import a substantial quantity of any class II, group II substance; and (IV)persons who produced or imported any class II substance during calendar year 2004, 2005, or 2006. (iii)If the supply of consumption allowances in the secondary pool equals or exceeds the demand for consumption allowances in the secondary pool as presented in the applications for purchase, the Administrator shall sell the consumption allowances in the secondary pool to the applicants in the amounts requested in the applications for purchase. Any consumption allowances in the secondary pool not purchased in a calendar year may be rolled over and added to the quantity available in the secondary pool in the following year. (iv)If the demand for consumption allowances in the secondary pool as presented in the applications for purchase exceeds the supply of consumption allowances in the secondary pool, the Administrator shall sell the consumption allowances as follows: (I)The Administrator shall first sell the consumption allowances in the secondary pool to any importers of products containing class II, group II substances in the amounts requested in their applications for purchase. If the demand for such consumption allowances exceeds supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances among importers of products containing class II, group II substances that may include pro rata shares, historic importation, economic or technical hardship, or other factors deemed relevant by the Administrator. (II)The Administrator shall next sell any remaining consumption allowances to persons identified in subclauses (II) and (III) of clause (ii) in the amounts requested in their applications for purchase. If the demand for such consumption allowances exceeds remaining supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances among subclauses (II) and (III) applicants that may include pro rata shares, historic use, economic or technical hardship, or other factors deemed relevant by the Administrator. (III)The Administrator shall then sell any remaining consumption allowances to persons who produced or imported any class II substance during calendar year 2004, 2005, or 2006 in the amounts requested in their applications for purchase. If demand for such consumption allowances exceeds remaining supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances that may include pro rata shares, historic production and importation, economic or technical hardship, or other factors deemed relevant by the Administrator. (IV)Each person who purchases consumption allowances in a non-auction sale under this subparagraph shall be required to disclose the person or entity sponsoring or benefitting from the purchases if such person or entity is, in whole or in part, other than the purchaser or the purchaser’s employer. (E)

Discretion to withhold allowances

Nothing in this paragraph prevents the Administrator from exercising discretion to withhold and retire consumption allowances that would otherwise be available for auction or nonauction sale. Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations establishing criteria for withholding and retiring consumption allowances. (5)

Banking

A consumption allowance or destruction offset credit may be used to meet the compliance obligation requirements of paragraph (1) in— (A)the vintage year for the allowance or destruction offset credit; or (B)any calendar year subsequent to the vintage year for the allowance or destruction offset credit. (6)

Auctions

(A)

Initial regulations

Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations governing the auction of allowances under this section. Such regulations shall include the following requirements: (i)

Frequency; first auction

Auctions shall be held one time per year at regular intervals, with the first auction to be held no later than October 31, 2011. (ii)

Auction format

Auctions shall follow a single-round, sealed-bid, uniform price format. (iii)

Financial assurance

The Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids. (iv)

Disclosure of beneficial ownership

Each bidder in the auction shall be required to disclose the person or entity sponsoring or benefitting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder. (v)

Publication of information

After the auction, the Administrator shall, in a timely fashion, publish the number of bidders, number of winning bidders, the quantity of allowances sold, and the auction clearing price. (vi)

Bidding limits in 2012

In the vintage year 2012 auction, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the greater of— (I)the number of allowances which, when added to the number of allowances available for purchase by the participant in the producer-importer pool non-auction sale, would equal the participant’s annual average consumption of class II, group II substances in calendar years 2004, 2005, and 2006; or (II)the number of allowances equal to the product of— (aa)1.20 multiplied by the participant’s allocation share of the producer-importer pool non-auction sale as determined under paragraph (4)(C)(ii); and (bb)the number of vintage year 2012 allowances offered at auction. (vii)

Bidding limits in 2013

In the vintage year 2013 auction, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the product of— (I)1.15 multiplied by the ratio of the total number of vintage year 2012 allowances purchased by the participant from the auction and from the producer-importer pool non-auction sale to the total number of vintage year 2012 allowances in the producer-importer pool; and (II)the number of vintage year 2013 allowances offered at auction. (viii)

Bidding limits in subsequent years

In the auctions for vintage year 2014 and subsequent vintage years, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the product of— (I)1.15 multiplied by the ratio of the highest number of allowances required to be held by the participant in any of the three prior vintage years to meet its compliance obligation under paragraph (1) to the total number of allowances in the producer-importer pool for such vintage year; and (II)the number of allowances offered at auction for that vintage year. (ix)

Other requirements

The Administrator may include in the regulations such other requirements or provisions as the Administrator considers necessary to promote effective, efficient, transparent, and fair administration of auctions under this section. (B)

Revision of regulations

The Administrator may, at any time, revise the initial regulations promulgated under subparagraph (A) based on the Administrator’s experience in administering allowance auctions by promulgating new regulations. Such revised regulations need not meet the requirements identified in subparagraph (A) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this paragraph, the Administrator shall not consider maximization of revenues to the Federal Government. (C)

Delegation or contract

Pursuant to regulations under this section, the Administrator may, by delegation or contract, provide for the conduct of auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations. (7)

Payments for allowances

(A)

Initial regulations

Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations governing the payment for allowances purchased in auction and non-auction sales under this section. Such regulations shall include the requirement that, in the event that full payment for purchased allowances is not made on the date of purchase, equal payments shall be made one time per calendar quarter with all payments for allowances of a vintage year made by the end of that vintage year. (B)

Revision of regulations

The Administrator may, at any time, revise the initial regulations promulgated under subparagraph (A) based on the Administrator’s experience in administering collection of payments by promulgating new regulations. Such revised regulations need not meet the requirements identified in subparagraph (A) if the Administrator determines that an alternative payment structure or frequency would be more effective, taking into account factors including cost of administration, transparency, and fairness. In determining whether and how to revise the initial regulations under this paragraph, the Administrator shall not consider maximization of revenues to the Federal Government. (C)

Penalties for non-payment

Failure to pay for purchased allowances in accordance with the regulations promulgated pursuant to this paragraph shall be a violation of the requirements of subsection (b). Section 113(c)(3) shall apply in the case of any person who knowingly fails to pay for purchased allowances in accordance with the regulations promulgated pursuant to this paragraph. (8)

Imported products

If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, which restricts the production or consumption of class II, group II substances— (A)as of the date on which such agreement or amendment enters into force, it shall no longer be unlawful for any person to import from a party to such agreement or amendment any product containing any class II, group II substance whose production or consumption is regulated by such agreement or amendment without holding one consumption allowance or one destruction offset credit for each carbon dioxide equivalent ton of the class II, group II substance; (B)the Administrator shall promulgate regulations within 12 months of the date the United States becomes a party or otherwise adheres to such agreement or amendment, or the date on which such agreement or amendment enters into force, whichever is later, to establish a new baseline for purposes of paragraph (2), which new baseline shall be the original baseline less the carbon dioxide equivalent of the annual average quantity of any class II substances regulated by such agreement or amendment contained in products imported from parties to such agreement or amendment in calendar years 2004, 2005, and 2006; (C)as of the date on which such agreement or amendment enters into force, no person importing any product containing any class II, group II substance may, directly or in concert with another person, purchase any consumption allowances for sale by the Administrator for the importation of products from a party to such agreement or amendment that contain any class II, group II substance restricted by such agreement or amendment; and (D)the Administrator may adjust the two allowance pools established in paragraph (4) such that up to 90 percent of the consumption allowances available for a calendar year are placed in the producer-importer pool with the remaining consumption allowances placed in the secondary pool. (9)

Offsets

(A)

Chlorofluorocarbon destruction

Within 18 months after the date of enactment of this section, the Administrator shall promulgate regulations to provide for the issuance of offset credits for the destruction, in the calendar year 2012 or later, of chlorofluorocarbons in the United States. The Administrator shall establish and distribute to the destroying entity a quantity of destruction offset credits equal to 0.8 times the number of metric tons of carbon dioxide equivalents of reduction achieved through the destruction. No destruction offset credits shall be established for the destruction of a class II, group II substance. (B)

Definition

For purposes of this paragraph, the term destruction means the conversion of a substance by thermal, chemical, or other means to another substance with little or no carbon dioxide equivalent value and no ozone depletion potential. (C)

Regulations

The regulations promulgated under this paragraph shall include standards and protocols for project eligibility, certification of destroyers, monitoring, tracking, destruction efficiency, quantification of project and baseline emissions and carbon dioxide equivalent value, and verification. The Administrator shall ensure that destruction offset credits represent real and verifiable destruction of chlorofluorocarbons or other class I or class II, group I, substances authorized under subparagraph (D). (D)

Other substances

The Administrator may promulgate regulations to add to the list of class I and class II, group I, substances that may be destroyed for destruction offset credits, taking into account a candidate substance’s carbon dioxide equivalent value, ozone depletion potential, prevalence in banks in the United States, and emission rates, as well as the need for additional cost containment under the class II, group II cap and the integrity of the class II, group II cap. The Administrator shall not add a class I or class II, group I substance to the list if the consumption of the substance has not been completely phased-out internationally (except for essential use exemptions or other similar exemptions) pursuant to the Montreal Protocol. (E)

Extension of offsets

(i)At any time after the Administrator promulgates regulations pursuant to subparagraph (A), the Administrator may, pursuant to the requirements of part D of title VII and based on the carbon dioxide equivalent value of the substance destroyed, add the types of destruction projects authorized to receive destruction offset credits under this paragraph to the list of types of projects eligible for offset credits under section 733. If such projects are added to the list under section 733, the issuance of offset credits for such projects under part D of title VII shall be governed by the requirements of such part D, while the issuance of offset credits for such projects under this paragraph shall be governed by the requirements of this paragraph. Nothing in this paragraph shall affect the issuance of offset credits under section 740. (ii)The Administrator shall not make the addition under clause (i) unless the Administrator finds that insufficient destruction is occurring or is projected to occur under this paragraph and that the addition would increase destruction. (iii)In no event shall more than one destruction offset credit be issued under title VII and this section for the destruction of the same quantity of a substance. (10)

Legal status of allowances and credits

None of the following constitutes a property right: (A)A production or consumption allowance. (B)A destruction offset credit. (c)

Deadlines for compliance

Notwithstanding the deadlines specified for class II substances in sections 608, 609, 610, 612, and 613 that occur prior to January 1, 2009, the deadline for promulgating regulations under those sections for class II, group II substances shall be January 1, 2012. (d)

Exceptions for essential uses

Notwithstanding any phase down of production and consumption required by this section, to the extent consistent with any applicable multilateral agreement to which the United States is a party or otherwise adheres, the Administrator may provide the following exceptions for essential uses: (1)

Medical devices

The Administrator, after notice and opportunity for public comment, and in consultation with the Commissioner of the Food and Drug Administration, may provide an exception for the production and consumption of class II, group II substances solely for use in medical devices. (2)

Aviation and space vehicle safety

The Administrator, after notice and opportunity for public comment, may authorize the production and consumption of limited quantities of class II, group II substances solely for the purposes of aviation or space vehicle safety if either the Administrator of the Federal Aviation Administration or the Administrator of the National Aeronautics and Space Administration, in consultation with the Administrator, determines that no safe and effective substitute has been developed and that such authorization is necessary for aviation or space flight safety purposes. (e)

Developing countries

Notwithstanding any phase down of production required by this section, the Administrator, after notice and opportunity for public comment, may authorize the production of limited quantities of class II, group II substances in excess of the amounts otherwise allowable under this section solely for export to, and use in, developing countries. Any production authorized under this subsection shall be solely for purposes of satisfying the basic domestic needs of such countries as provided in applicable international agreements, if any, to which the United States is a party or otherwise adheres. (f)

National security; fire suppression, etc

The provisions of subsection (f) and paragraphs (1) and (2) of subsection (g) of section 604 shall apply to any consumption and production phase down of class II, group II substances in the same manner and to the same extent, consistent with any applicable international agreement to which the United States is a party or otherwise adheres, as such provisions apply to the substances specified in such subsection. (g)

Accelerated schedule

In lieu of section 606, the provisions of paragraphs (1), (2), and (3) of this subsection shall apply in the case of class II, group II substances. (1)

In general

The Administrator shall promulgate initial regulations not later than 18 months after the date of enactment of this section, and revised regulations any time thereafter, which establish a schedule for phasing down the consumption (and, if the condition in subsection (b)(1)(B) is met, the production) of class II, group II substances that is more stringent than the schedule set forth in this section if, based on the availability of substitutes, the Administrator determines that such more stringent schedule is practicable, taking into account technological achievability, safety, and other factors the Administrator deems relevant, or if the Montreal Protocol, or any applicable international agreement to which the United States is a party or otherwise adheres, is modified or established to include a schedule or other requirements to control or reduce production, consumption, or use of any class II, group II substance more rapidly than the applicable schedule under this section. (2)

Petition

Any person may submit a petition to promulgate regulations under this subsection in the same manner and subject to the same procedures as are provided in section 606(b). (3)

Inconsistency

If the Administrator determines that the provisions of this section regarding banking, allowance rollover, or destruction offset credits create a significant potential for inconsistency with the requirements of any applicable international agreement to which the United States is a party or otherwise adheres, the Administrator may promulgate regulations restricting the availability of banking, allowance rollover, or destruction offset credits to the extent necessary to avoid such inconsistency. (h)

Exchange

Section 607 shall not apply in the case of class II, group II substances. Production and consumption allowances for class II, group II substances may be freely exchanged or sold but may not be converted into allowances for class II, group I substances. (i)

Labeling

(1)In applying section 611 to products containing or manufactured with class II, group II substances, in lieu of the words destroying ozone in the upper atmosphere on labels required under section 611 there shall be substituted the words contributing to global warming. (2)The Administrator may, through rulemaking, exempt from the requirements of section 611 products containing or manufactured with class II, group II substances determined to have little or no carbon dioxide equivalent value compared to other substances used in similar products. (j)

Nonessential products

For the purposes of section 610, class II, group II substances shall be regulated under section 610(b), except that in applying section 610(b) the word hydrofluorocarbon shall be substituted for the word chlorofluorocarbon and the term class II, group II shall be substituted for the term class I. Class II, group II substances shall not be subject to the provisions of section 610(d). (k)

International transfers

In the case of class II, group II substances, in lieu of section 616, this subsection shall apply. To the extent consistent with any applicable international agreement to which the United States is a party or otherwise adheres, including any amendment to the Montreal Protocol, the United States may engage in transfers with other parties to such agreement or amendment under the following conditions: (1)The United States may transfer production allowances to another party to such agreement or amendment if, at the time of the transfer, the Administrator establishes revised production limits for the United States accounting for the transfer in accordance with regulations promulgated pursuant to this subsection. (2)The United States may acquire production allowances from another party to such agreement or amendment if, at the time of the transfer, the Administrator finds that the other party has revised its domestic production limits in the same manner as provided with respect to transfers by the United States in the regulations promulgated pursuant to this subsection. (l)

Relationship to other laws

(1)

State laws

For purposes of section 116, the requirements of this section for class II, group II substances shall be treated as requirements for the control and abatement of air pollution. (2)

Multilateral agreements

Section 614 shall apply to the provisions of this section concerning class II, group II substances, except that for the words Montreal Protocol there shall be substituted the words Montreal Protocol, or any applicable multilateral agreement to which the United States is a party or otherwise adheres that restricts the production or consumption of class II, group II substances, and for the words Article 4 of the Montreal Protocol there shall be substituted any provision of such multilateral agreement regarding trade with non-parties. (3)

Federal facilities

For purposes of section 118, the requirements of this section for class II, group II substances and corresponding State, interstate, and local requirements, administrative authority, and process and sanctions shall be treated as requirements for the control and abatement of air pollution within the meaning of section 118. (m)

Carbon dioxide equivalent value

(1)In lieu of section 602(e), the provisions of this subsection shall apply in the case of class II, group II substances. Simultaneously with establishing the list of class II, group II substances, and simultaneously with any addition to that list, the Administrator shall publish the carbon dioxide equivalent value of each listed class II, group II substance, based on a determination of the number of metric tons of carbon dioxide that makes the same contribution to global warming over 100 years as 1 metric ton of each class II, group II substance. (2)Not later than February 1, 2017, and not less than every 5 years thereafter, the Administrator shall— (A)review, and if appropriate, revise the carbon dioxide equivalent values established for class II, group II substances based on a determination of the number of metric tons of carbon dioxide that makes the same contributions to global warming over 100 years as 1 metric ton of each class II, group II substance; and (B)publish in the Federal Register the results of that review and any revisions. (3)A revised determination published in the Federal Register under paragraph (2)(B) shall take effect for production of class II, group II substances, consumption of class II, group II substances, and importation of products containing class II, group II substances starting on January 1 of the first calendar year starting at least 9 months after the date on which the revised determination was published. (4)The Administrator may decrease the frequency of review and revision under paragraph (2) if the Administrator determines that such decrease is appropriate in order to synchronize such review and revisions with any similar review process carried out pursuant to the United Nations Framework Convention on Climate Change, an agreement negotiated under that convention, The Vienna Convention for the Protection of the Ozone Layer, or an agreement negotiated under that convention, except that in no event shall the Administrator carry out such review and revision any less frequently than every 10 years. (n)

Reporting requirements

In lieu of subsections (b) and (c) of section 603, paragraphs (1) and (2) of this subsection shall apply in the case of class II, group II substances: (1)

In general

On a quarterly basis, or such other basis (not less than annually) as determined by the Administrator, each person who produced, imported, or exported a class II, group II substance, or who imported a product containing a class II, group II substance, shall file a report with the Administrator setting forth the carbon dioxide equivalent amount of the substance that such person produced, imported, or exported, as well as the amount that was contained in products imported by that person, during the preceding reporting period. Each such report shall be signed and attested by a responsible officer. If all other reporting is complete, no such report shall be required from a person after April 1 of the calendar year after such person permanently ceases production, importation, and exportation of the substance, as well as importation of products containing the substance, and so notifies the Administrator in writing. If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, that restricts the production or consumption of class II, group II substances, then, if all other reporting is complete, no such report shall be required from a person with respect to importation from parties to such agreement or amendment of products containing any class II, group II substance restricted by such agreement or amendment, after April 1 of the calendar year following the year during which such agreement or amendment enters into force. (2)

Baseline reports for class II, group II substances

(A)

In general

Unless such information has been previously reported to the Administrator, on the date on which the first report under paragraph (1) of this subsection is required to be filed, each person who produced, imported, or exported a class II, group II substance, or who imported a product containing a class II substance, (other than a substance added to the list of class II, group II substances after the publication of the initial list of such substances under this section), shall file a report with the Administrator setting forth the amount of such substance that such person produced, imported, exported, or that was contained in products imported by that person, during each of calendar years 2004, 2005, and 2006. (B)

Producers

In reporting under subparagraph (A), each person who produced in the United States a class II substance during calendar years 2004, 2005, or 2006 shall— (i)report all acquisitions or purchases of class II substances during each of calendar years 2004, 2005, and 2006 from all other persons who produced in the United States a class II substance during calendar years 2004, 2005, or 2006, and supply evidence of such acquisitions and purchases as deemed necessary by the Administrator; and (ii)report all transfers or sales of class II substances during each of calendar years 2004, 2005, and 2006 to all other persons who produced in the United States a class II substance during calendar years 2004, 2005, or 2006, and supply evidence of such transfers and sales as deemed necessary by the Administrator. (C)

Added substances

In the case of a substance added to the list of class II, group II substances after publication of the initial list of such substances under this section, each person who produced, imported, exported, or imported products containing such substance in calendar year 2004, 2005, or 2006 shall file a report with the Administrator within 180 days after the date on which such substance is added to the list, setting forth the amount of the substance that such person produced, imported, and exported, as well as the amount that was contained in products imported by that person, in calendar years 2004, 2005, and 2006. (o)

Stratospheric ozone and climate protection fund

(1)

In general

There is established in the Treasury of the United States a Stratospheric Ozone and Climate Protection Fund. (2)

Deposits

The Administrator shall deposit all proceeds from the auction and non-auction sale of allowances under this section into the Stratospheric Ozone and Climate Protection Fund. (3)

Use

Amounts deposited into the Stratospheric Ozone and Climate Protection Fund shall be available, subject to appropriations, exclusively for the following purposes: (A)

Recovery, recycling, and reclamation

The Administrator may utilize funds to establish a program to incentivize the recovery, recycling, and reclamation of any Class II substances in order to reduce emissions of such substances. (B)

Multilateral fund

If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, which restricts the production or consumption of class II, group II substances, the Administrator may utilize funds to meet any related contribution obligation of the United States to the Multilateral Fund for the Implementation of the Montreal Protocol or similar multilateral fund established under such multilateral agreement. (C)

Best-in-class appliances deployment program

The Secretary of Energy is authorized to utilize funds to carry out the purposes of section 214 of the American Clean Energy and Security Act of 2009. (D)

Low global warming product transition assistance program

(i)

In general

The Administrator, in consultation with the Secretary of Energy, may utilize funds in fiscal years 2012 through 2022 to establish a program to provide financial assistance to manufacturers of products containing class II, group II substances to facilitate the transition to products that contain or utilize alternative substances with no or low carbon dioxide equivalent value and no ozone depletion potential. (ii)

Definition

In this subparagraph, the term products means refrigerators, freezers, dehumidifiers, air conditioners, foam insulation, technical aerosols, fire protection systems, and semiconductors. (iii)

Financial assistance

The Administrator may provide financial assistance to manufacturers pursuant to clause (i) for— (I)the design and configuration of new products that use alternative substances with no or low carbon dioxide equivalent value and no ozone depletion potential; and (II)the redesign and retooling of facilities for the manufacture of products in the United States that use alternative substances with no or low carbon dioxide equivalent value and no ozone depletion potential. (iv)

Reports

For any fiscal year during which the Administrator provides financial assistance pursuant to this subparagraph, the Administrator shall submit a report to the Congress within 3 months of the end of such fiscal year detailing the amounts, recipients, specific purposes, and results of the financial assistance provided.

. (b)

Table of contents

The table of contents of title VI of the Clean Air Act (42 U.S.C. 7671 et seq.) is amended by adding the following new item at the end thereof: Sec. 619. Hydrofluorocarbons (HFCs).. (c)

Fire suppression agents

Section 605(a) of the Clean Air Act (42 U.S.C. 7671(a)) is amended— (1)by striking or at the end of paragraph (2); (2)by striking the period at the end of paragraph (3) and inserting ; or; and (3)by adding the following new paragraph after paragraph (3): (4)is listed as acceptable for use as a fire suppression agent for nonresidential applications in accordance with section 612(c).. (d)

Motor vehicle air conditioners

(1)Section 609(e) of the Clean Air Act (42 U.S.C. 7671h(e)) is amended by inserting , group I after each reference to class II in the text and heading. (2)Section 609 of the Clean Air Act (42 U.S.C. 7671h) is amended by adding the following new subsection after subsection (e): (f)

Class II, group II substances

(1)

Repair

The Administrator may promulgate regulations establishing requirements for repair of motor vehicle air conditioners prior to adding a class II, group II substance. (2)

Small containers

(A)The Administrator may promulgate regulations establishing servicing practices and procedures for recovery of class II, group II substances from containers which contain less than 20 pounds of such class II, group II substances. (B)Not later than 18 months after enactment of this subsection, the Administrator shall either promulgate regulations requiring that containers which contain less than 20 pounds of a class II, group II substance be equipped with a device or technology that limits refrigerant emissions and leaks from the container and limits refrigerant emissions and leaks during the transfer of refrigerant from the container to the motor vehicle air conditioner or issue a determination that such requirements are not necessary or appropriate. (C)Not later than 18 months after enactment of this subsection, the Administrator shall promulgate regulations establishing requirements for consumer education materials on best practices associated with the use of containers which contain less than 20 pounds of a class II, group II substance and prohibiting the sale or distribution, or offer for sale or distribution, of any class II, group II substance in any container which contains less than 20 pounds of such class II, group II substance, unless consumer education materials consistent with such requirements are displayed and available at point-of-sale locations, provided to the consumer, or included in or on the packaging of the container which contain less than 20 pounds of a class II, group II substance. (D)The Administrator may, through rulemaking, extend the requirements established under this paragraph to containers which contain 30 pounds or less of a class II, group II substance if the Administrator determines that such action would produce significant environmental benefits. (3)

Restriction of sales

Effective January 1, 2014, no person may sell or distribute or offer to sell or distribute or otherwise introduce into interstate commerce any motor vehicle air conditioner refrigerant in any size container unless the substance has been found acceptable for use in a motor vehicle air conditioner under section 612.. (e)

Safe alternatives policy

Section 612(e) of the Clean Air Act (42 U.S.C. 7671k(e)) is amended by inserting or class II after each reference to class I.

333.

Black carbon

(a)

Definition

As used in this section, the term black carbon means primary light absorbing aerosols, as defined by the Administrator, based on the best available science. (b)

Black Carbon Abatement Report

Not later than one year after the date of enactment of this section, the Administrator shall, in consultation with other appropriate Federal agencies, submit to Congress a report regarding black carbon emissions. The report shall include the following: (1)A summary of the current information and research that identifies— (A)an inventory of the major sources of black carbon emissions in the United States and throughout the world, including— (i)an estimate of the quantity of current and projected future emissions; and (ii)the net climate forcing of the emissions from such sources, including consideration of co-emissions of other pollutants; (B)effective and cost-effective control technologies, operations, and strategies for additional domestic and international black carbon emissions reductions, such as diesel retrofit technologies on existing on-road, non-road, and stationary engines and programs to address residential cookstoves, and forest and agriculture-based burning; (C)potential metrics and approaches for quantifying the climatic effects of black carbon emissions, including its radiative forcing and warming effects, that may be used to compare the climate benefits of different mitigation strategies, including an assessment of the uncertainty in such metrics and approaches; and (D)the public health and environmental benefits associated with additional controls for black carbon emissions. (2)Recommendations regarding— (A)development of additional emissions monitoring techniques and capabilities, modeling, and other black carbon-related areas of study; (B)areas of focus for additional study of technologies, operations, and strategies with the greatest potential to reduce emissions of black carbon and associated public health, economic, and environmental impacts associated with these emissions; and (C)actions, in addition to those identified by the Administrator under section 851 of the Clean Air Act (as added by subsection (c)), the Federal Government may take to encourage or require reductions in black carbon emissions. (c)

Black Carbon Mitigation

Title VIII of the Clean Air Act, as added by section 331 of this Act, and amended by section 222 of this Act, is further amended by adding after part D the following new part: E

Black Carbon

851.

Black carbon

(a)

Domestic Black Carbon Mitigation

Not later than 18 months after the date of enactment of this section, the Administrator, taking into consideration the public health and environmental impacts of black carbon emissions, including the effects on global and regional warming, the Arctic, and other snow and ice-covered surfaces, shall propose regulations under the existing authorities of this Act to reduce emissions of black carbon or propose a finding that existing regulations promulgated pursuant to this Act adequately regulate black carbon emissions. Not later than two years after the date of enactment of this section, the Administrator shall promulgate final regulations under the existing authorities of this Act or finalize the proposed finding. Such regulations shall not apply to specific types, classes, categories, or other suitable groupings of emissions sources that the Administrator finds are subject to adequate regulation. (b)

International Black Carbon Mitigation

(1)

Report

Not later than one year after the date of enactment of this section, the Administrator, in coordination with the Secretary of State and other appropriate Federal agencies, shall transmit a report to Congress on the amount, type, and direction of all present United States financial, technical, and related assistance to foreign countries to reduce, mitigate, and otherwise abate black carbon emissions. (2)

Other opportunities

The report required under paragraph (1) shall also identify opportunities and recommendations, including action under existing authorities, to achieve significant black carbon emission reductions in foreign countries through technical assistance or other approaches to— (A)promote sustainable solutions to bring clean, efficient, safe, and affordable stoves, fuels, or both stoves and fuels to residents of developing countries that are reliant on solid fuels such as wood, dung, charcoal, coal, or crop residues for home cooking and heating, so as to help reduce the public health, environmental, and economic impacts of black carbon emissions from these sources by— (i)identifying key regions for large-scale demonstration efforts, and key partners in each such region; and (ii)developing for each such region a large-scale implementation strategy with a goal of collectively reaching 20,000,000 homes over 5 years with interventions that will— (I)increase stove efficiency by over 50 percent (or such other goal as determined by the Administrator); (II)reduce emissions of black carbon by over 60 percent (or such other goal as determined by the Administrator); and (III)reduce the incidence of severe pneumonia in children under 5 years old by over 30 percent (or such other goal as determined by the Administrator); (B)make technological improvements to diesel engines and provide greater access to fuels that emit less or no black carbon; (C)reduce unnecessary agricultural or other biomass burning where feasible alternatives exist; (D)reduce unnecessary fossil fuel burning that produces black carbon where feasible alternatives exist; (E)reduce other sources of black carbon emissions; and (F)improve capacity to achieve greater compliance with existing laws to address black carbon emissions.

. (d)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section.

334.

States

Section 116 of the Clean Air Act (42 U.S.C. 7416) is amended by adding the following at the end thereof: For the purposes of this section, the phrases standard or limitation respecting emissions of air pollutants and requirements respecting control or abatement of air pollution shall include any provision to: cap greenhouse gas emissions, require surrender to the State or a political subdivision thereof of emission allowances or offset credits established or issued under this Act, and require the use of such allowances or credits as a means of demonstrating compliance with requirements established by a State or political subdivision thereof..

335.

State programs

Title VIII of the Clean Air Act, as added by section 331 of this Act and amended by several sections of this Act, is further amended by adding after part E (as added by section 333(c) of this Act) the following new part: F

Miscellaneous

861.

State programs

Notwithstanding section 116, no State or political subdivision thereof shall implement or enforce a cap and trade program that covers any capped emissions emitted during the years 2012 through 2017. For purposes of this section, the term cap and trade program means a system of greenhouse gas regulation under which a State or political subdivision issues a limited number of tradable instruments in the nature of emission allowances and requires that sources within its jurisdiction surrender such tradeable instruments for each unit of greenhouse gases emitted during a compliance period. For purposes of this section, a cap-and-trade program does not include a target or limit on greenhouse gas emissions adopted by a State or political subdivision that is implemented other than through the issuance and surrender of a limited number of tradable instruments in the nature of emission allowances, nor does it include any other standard, limit, regulation, or program to reduce greenhouse gas emissions that is not implemented through the issuance and surrender of a limited number of tradeable instruments in the nature of emission allowances. For purposes of this section, the term cap and trade program does not include, among other things, fleet-wide motor vehicle emission requirements that allow greater emissions with increased vehicle production, or requirements that fuels, or other products, meet an average pollution emission rate or lifecycle greenhouse gas standard.

862.

Grants for support of air pollution control programs

The Administrator is authorized to make grants to air pollution control agencies pursuant to section 105 for purposes of assisting in the implementation of programs to address global warming established under the Safe Climate Act.

.

336.

Enforcement

(a)

Remand

Section 307(b) of the Clean Air Act (42 U.S.C. 7607(b)) is amended by adding the following new paragraphs at the end thereof: (3)If the court determines that any action of the Administrator is arbitrary, capricious, or otherwise unlawful, the court may remand such action, without vacatur, if vacatur would impair or delay protection of the environment or public health or otherwise undermine the timely achievement of the purposes of this Act. (4)If the court determines that any action of the Administrator is arbitrary, capricious, or otherwise unlawful, and remands the matter to the Administrator, the Administrator shall complete final action on remand within an expeditious time period no longer than the time originally allowed for the action or one year, whichever is less, unless the court on motion determines that a shorter or longer period is necessary, appropriate, and consistent with the purposes of this Act. The court of appeals shall have jurisdiction to enforce a deadline for action on remand under this subparagraph.. (b)

Petition for reconsideration

Section 307(d)(7)(B) of the Clean Air Act (42 U.S.C. 7607(d)(7)(B)) is amended as follows: (1)By inserting after the second sentence If a petition for reconsideration is filed, the Administrator shall take final action on such petition, including promulgation of final action either revising or determining not to revise the action for which reconsideration is sought, within 150 days after the petition is received by the Administrator or the petition shall be deemed denied for the purpose of judicial review.. (2)By amending the third sentence to read as follows: Such person may seek judicial review of such denial, or of any other final action, by the Administrator, in response to a petition for reconsideration, in the United States court of appeals for the appropriate circuit (as provided in subsection (b))..

337.

Conforming amendments

(a)

Federal enforcement

Section 113 of the Clean Air Act (42 U.S.C. 7413) is amended as follows: (1)In subsection (a)(3), by striking or title VI, and inserting title VI, title VII, or title VIII. (2)In subsection (b), by striking or a major stationary source and inserting a major stationary source, or a covered EGU under title VIII in the material preceding paragraph (1). (3)In paragraph (2) of subsection (b), by striking or title VI and inserting title VI, title VII, or title VIII. (4)In subsection (c)— (A)in the first sentence of paragraph (1), by striking or title VI (relating to stratospheric ozone control), and inserting title VI, title VII, or title VIII,; and (B)in the first sentence of paragraph (3), by striking or VI and inserting VI, VII, or VIII. (5)In subsection (d)(1)(B), by striking or VI and inserting VI, VII, or VIII. (6)In subsection (f), in the first sentence, by striking or VI and inserting VI, VII, or VIII. (b)

Retention of state authority

Section 116 of the Clean Air Act (42 U.S.C. 7416) is amended as follows: (1)By striking and 233 and inserting 233. (2)By striking of moving sources) and inserting of moving sources), and 861 (preempting certain State greenhouse gas programs for a limited time). (c)

Inspections, monitoring, and entry

Section 114(a) of the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking section 112, and all that follows through (ii) and inserting the following: section 112, or any regulation of greenhouse gas emissions under title VII or VIII, (ii). (d)

Enforcement

Subsection (f) of section 304 of the Clean Air Act (42 U.S.C. 7604(f)) is amended as follows: (1)By striking ; or at the end of paragraph (3) thereof and inserting a comma. (2)By striking the period at the end of paragraph (4) thereof and inserting , or. (3)By adding the following after paragraph (4) thereof: (5)any requirement of title VII or VIII.. (e)

Administrative proceedings and judicial review

Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended as follows: (1)In subsection (a), by striking , or section 306 and inserting section 306, or title VII or VIII. (2)In subsection (b)(1)— (A)by striking ,, and inserting , in each place such punctuation appears; and (B)by striking section 120, in the first sentence and inserting section 120, any final action under title VII or VIII,. (3)In subsection (d)(1) by amending subparagraph (S) to read as follows: (S)the promulgation or revision of any regulation under title VII or VIII,.

338.

Davis-Bacon compliance

(a)

In general

Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, to receive emission allowances or funding under this Act, or the amendments made by this Act, the recipient shall provide reasonable assurances that all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act, or the amendments made by this Act, or by any entity established in accordance with this Act, or the amendments made by this Act, including the Carbon Storage Research Corporation, will be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the Davis-Bacon Act). With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. (b)

Exemption

Neither subsection (a) nor the requirements of subchapter IV of chapter 31 of title 40, United States Code, shall apply to retrofitting of the following: (1)Single family homes (both attached and detached) under section 202. (2)Owner-occupied residential units in larger buildings that have their own dedicated space-conditioning systems under section 202. (3)Residential buildings (as defined in section 202(a)(5)) if designed for residential use by less than 4 families. (4)Nonresidential buildings (as defined in section 202(a)(1)) if the net interior space of such nonresidential building is less than 6,500 square feet.

339.

National strategy for domestic biological carbon sequestration

Not later than 1 year after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy, the Secretary of Agriculture, the Secretary of the Interior, and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory, technological, and other barriers to maximizing the potential for sustainable biological sequestration of carbon within the United States.

D

Carbon Market Assurance

341.

Carbon market assurance

(a)

Amendment

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

Carbon Market Assurance

401.

Oversight and assurance of carbon markets

(a)

Definitions

In this section: (1)

Contract of sale

The term contract of sale includes sales, agreements of sale, and agreements to sell. (2)

Covered entity

The term covered entity shall have the meaning given in section 700 of the Clean Air Act. (3)

Future delivery

The term future delivery does not include any sale of any cash commodity for deferred shipment or delivery. (4)

Offset creation contract

The term offset creation contract mean a written agreement for the origination and development of an offset project, and the related issuance of offset credits, pursuant to title VII of the Clean Air Act. (5)

Regulated allowance

The term regulated allowance means any emission allowance, compensatory allowance, offset credit, or Federal renewable electricity credit established or issued under the American Clean Energy and Security Act of 2009. (6)

Regulated allowance derivative

The term regulated allowance derivative means an instrument that is, or includes, an instrument— (A)which— (i)is of the character of, or is commonly known to the trade as, a put option, call option, privilege, indemnity, advance guaranty, decline guaranty, or swap agreement; or (ii)is a contract of sale for future delivery other than an offset creation contract; and (B)the value of which, in whole or in part, is expressly linked to the price of a regulated allowance or another regulated allowance derivative. (7)

Regulated instrument

The term regulated instrument means a regulated allowance or a regulated allowance derivative. (b)

Regulated allowance market

(1)

Authority

The Commission shall promulgate regulations for the establishment, operation, and oversight of markets for regulated allowances not later than 18 months after the date of the enactment of this section, and from time to time thereafter as may be appropriate. (2)

Regulations

The regulations promulgated pursuant to paragraph (1) shall— (A)provide for effective and comprehensive market oversight; (B)prohibit fraud, market manipulation (including an entity’s fraudulent or manipulative conduct with respect to regulated allowance derivatives that benefits the entity in regulated allowance markets), and excess speculation, and provide measures to limit unreasonable fluctuation in the prices of regulated allowances; (C)facilitate compliance with title VII of the Clean Air Act by covered entities; (D)ensure market transparency and recordkeeping deemed necessary and appropriate by the Commission to provide for efficient price discovery; prevention of fraud, market manipulation, and excess speculation; and compliance with title VII of the Clean Air Act and section 610 of the Public Utility Regulatory Policies Act of 1978; (E)as necessary, ensure that position limitations for individual market participants are established with respect to each class of regulated allowances; (F)as necessary, ensure that margin requirements are established for each class of regulated allowances; (G)provide for the formation and operation of a fair, orderly and liquid national market system that allows for the best execution in the trading of regulated allowances; (H)limit or eliminate counterparty risks, market power concentration risks, and other risks associated with over-the-counter trading; and (I)establish standards for qualification as, and operation of, trading facilities for regulated allowances; (J)establish standards for qualification as, and operation of, clearing organizations for trading facilities for regulated allowances; and (K)include such other requirements as necessary to preserve market integrity and facilitate compliance with title VII of the Clean Air Act and section 610 of the Public Utility Regulatory Policies Act of 1978 and the regulations promulgated under such title and such section. (3)

Enforcement

(A)

In general

If the Commission determines, after notice and an opportunity for a hearing on the record, that any entity has violated any rule or order issued by the Commission under this subsection, the Commission may issue an order— (i)prohibiting the entity from trading on a trading facility for regulated allowances registered with the Commission, and requiring all such facilities to refuse the entity all privileges for such period as may be specified in the order; (ii)if the entity is registered with the Commission in any capacity, suspending for a period of not more than 6 months, or revoking, the registration of the entity; (iii)assessing the entity a civil penalty of not more than $1,000,000 per day per violation for as long as the violation continues (and in determining the amount of a civil penalty, the Commission shall take into account the nature and seriousness of the violation and the efforts to remedy the violation); and (iv)requiring disgorgement of unjust profits, restitution to entities harmed by the violation as determined by the Commission, or both. (B)

Authority to suspend or revoke registration

The Commission may suspend for a period of not more than 6 months, or revoke, the registration of a trading facility for regulated allowances or of a clearing organization registered by the Commission if, after notice and opportunity for a hearing on the record, the Commission finds that— (i)the entity violated any rule or order issued by the Commission under this subsection; or (ii)a director, officer, employee, or agent of the entity has violated any rule or order issued by the Commission under this subsection. (C)

Cease and desist proceedings

(i)

In general

If the Commission determines that any entity may be violating, may have violated, or may be about to violate any provision of this part, or any regulation promulgated by, or any restriction, condition, or order made or imposed by, the Commission under this Act, and if the Commission finds that the alleged violation or threatened violation, or the continuation of the violation, is likely to result in significant harm to covered entities or market participants, or significant harm to the public interest, the Commission may issue a temporary order requiring the entity— (I)to cease and desist from the violation or threatened violation; (II)to take such action as is necessary to prevent the violation or threatened violation; and (III)to prevent, as the Commission determines to be appropriate— (aa)significant harm to covered entities or market participants; (bb)significant harm to the public interest; and (cc)frustration of the ability of the Commission to conduct the proceedings or to redress the violation at the conclusion of the proceedings. (ii)

Timing of entry

An order issued under clause (i) shall be entered only after notice and opportunity for a hearing, unless the Commission determines that notice and hearing before entry would be impracticable or contrary to the public interest. (iii)

Effective date

A temporary order issued under clause (i) shall— (I)become effective upon service upon the entity; and (II)unless set aside, limited, or suspended by the Commission or a court of competent jurisdiction, remain effective and enforceable pending the completion of the proceedings. (D)

Proceedings regarding dissipation or conversion of assets

(i)

In general

In a proceeding involving an alleged violation of a regulation or order promulgated or issued by the Commission, if the Commission determines that the alleged violation or related circumstances are likely to result in significant dissipation or conversion of assets, the Commission may issue a temporary order requiring the respondent to take such action as is necessary to prevent the dissipation or conversion of assets. (ii)

Timing of entry

An order issued under clause (i) shall be entered only after notice and opportunity for a hearing, unless the Commission determines that notice and hearing before entry would be impracticable or contrary to the public interest. (iii)

Effective date

A temporary order issued under clause (i) shall— (I)become effective upon service upon the respondent; and (II)unless set aside, limited, or suspended by the Commission or a court of competent jurisdiction, remain effective and enforceable pending the completion of the proceedings. (E)

Review of temporary orders

(i)

Application for review

At any time after a respondent has been served with a temporary cease-and-desist order pursuant to subparagraph (C) or order regarding the dissipation or conversion of assets pursuant to subparagraph (D), the respondent may apply to the Commission to have the order set aside, limited, or suspended. (ii)

No prior hearing

If a respondent has been served with a temporary order entered without a prior hearing of the Commission— (I)the respondent may, not later than 10 days after the date on which the order was served, request a hearing on the application; and (II)the Commission shall hold a hearing and render a decision on the application at the earliest practicable time. (iii)

Judicial review

(I)

In general

An entity shall not be required to submit a request for rehearing of a temporary order before seeking judicial review in accordance with this subparagraph. (II)

Timing of review

Not later than 10 days after the date on which a respondent is served with a temporary cease-and-desist order entered with a prior hearing of the Commission, or 10 days after the date on which the Commission renders a decision on an application and hearing under clause (i) with respect to any temporary order entered without such a prior hearing— (aa)the respondent may obtain a review of the order in a United States circuit court having jurisdiction over the circuit in which the respondent resides or has a principal place of business, or in the United States Court of Appeals for the District of Columbia Circuit, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order; and (bb)the court shall have jurisdiction to enter such an order. (III)

No prior hearing

A respondent served with a temporary order entered without a prior hearing of the Commission may not apply to the applicable court described in subclause (II) except after a hearing and decision by the Commission on the application of the respondent under clauses (i) and (ii). (iv)

Procedures

Section 222 and Part III shall apply to— (I)an application for review of an order under clause (i); and (II)an order subject to review under clause (iii). (v)

No automatic stay of temporary order

The commencement of proceedings under clause (iii) shall not, unless specifically ordered by the court, operate as a stay of the order of the Commission. (F)

Actions to collect civil penalties

If any person fails to pay a civil penalty assessed under this subsection after an order assessing the penalty has become final and unappealable, the Commission shall bring an action to recover the amount of the penalty in any appropriate United States district court. (4)

Transaction fees

(A)

In general

The Commission shall, in accordance with this paragraph, establish and collect transaction fees designed to recover the costs to the Federal Government of the supervision and regulation of regulated allowance markets and market participants, including related costs for enforcement activities, policy and rulemaking activities, administration, legal services, and international regulatory activities. (B)

Initial fee rate

Each trading facility on or through which regulated allowances are transacted shall pay to the Commission a fee at a rate of not more than $15 per $1,000,000 of the aggregate dollar amount of sales of regulated allowances transacted through the facility. (C)

Annual adjustment of fee rate

The Commission shall, on an annual basis— (i)assess the rate at which fees are to be collected as necessary to meet the cost recovery requirement in subparagraph (A); and (ii)consistent with subparagraph (B), adjust the rate as necessary in order to meet the requirement. (D)

Report on adequacy of fees in recovering costs

The Commission, shall, on an annual basis, report to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate on the adequacy of the transaction fees in providing funding for the Commission to regulate the regulated allowance markets. (5)

Judicial review

Judicial review of actions taken by the Commission under this subsection shall be pursuant to part III. (6)

Information-sharing

Within 6 months after a Federal agency with jurisdiction over regulated allowance derivatives is delegated authority pursuant to subsection (c)(1), the agency shall enter into a memorandum of understanding with the Commission relating to information sharing, which shall include provisions ensuring that information requests to markets within the respective jurisdiction of the agency are properly coordinated to facilitate, among other things, effective information-sharing while minimizing duplicative information requests, and provisions regarding the treatment of proprietary information. (7)

Additional employees report and appointment

Within 18 months after the date of the enactment of this section, the Commission shall submit to the President, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Energy and Natural Resources of the Senate, a report that contains recommendations as to how many additional employees would be necessary to provide robust oversight and enforcement of the regulations promulgated under this subsection. As soon as practicable after the completion of the report, subject to appropriations, the Commission shall appoint the recommended number of additional employees for such purposes. (c)

Delegation of authority by the President

(1)

Delegation

The President, taking into consideration the recommendations of the interagency working group established in subsection (d), shall delegate to members of the working group and the heads of other appropriate Federal agencies the authority to promulgate regulations for the establishment, operation, and oversight of all markets for regulated allowance derivatives. (2)

Regulations

The regulations promulgated pursuant to paragraph (1) shall— (A)provide for effective and comprehensive market oversight; (B)prohibit fraud, market manipulation, and excess speculation, and provide measures to limit unreasonable fluctuation in the prices of regulated allowance derivatives; (C)facilitate compliance with title VII of the Clean Air Act by covered entities; (D)ensure market transparency and recordkeeping necessary to provide for efficient price discovery; prevention of fraud, market manipulation, and excess speculation; and compliance with title VII of the Clean Air Act and section 610 of the Public Utility Regulatory Policies Act of 1978; (E)ensure that position limitations for individual market participants are established with respect to each regulated allowance derivative and aggregate position limitations for individual market participants are established with respect to all regulated allowance derivative markets; (F)ensure that margin requirements are established for each regulated allowance derivative; (G)provide for the formation and operation of a market system that allows for best execution in the trading of regulated allowance derivatives; (H)to the extent the regulations deviate from the rule set forth in paragraph (4)(B), limit or eliminate counterparty risks, market power concentration risks, and other risks associated with over-the-counter trading, and promulgate reporting and market transparency rules for large traders; (I)ensure that market participants do not evade position limits or otherwise undermine the integrity and effectiveness of the regulations promulgated under subparagraph (C) through participation in markets not subject to the position limits and regulations; (J)establish standards, as necessary, for qualification as, and operation of, trading facilities for regulated allowance derivatives; (K)establish standards, as necessary, for qualification as, and operation of, clearing organizations for trading facilities for regulated allowance derivatives; (L)provide boards of trade designated as contract markets under the Commodity Exchange Act, and market participants, with an adequate transition period for compliance with any new regulatory requirements established under this paragraph; (M)determine whether and to what extent offset creation contracts, to the extent incorporating regulated allowance derivatives, should be governed by the same regulations that apply to other regulated allowance derivatives; and (N)include such other requirements as necessary to preserve market integrity and facilitate compliance with title VII of the Clean Air Act and section 610 of the Public Utility Regulatory Policies Act of 1978 and the regulations promulgated under such title and such section. (3)

Deadline

The agencies authorized to promulgate regulations for the establishment, operation, and oversight of markets for regulated allowance derivatives pursuant to paragraph (1) shall promulgate such regulations not later than 18 months after the date of the enactment of this section, and from time to time thereafter as may be appropriate. (4)

Default rules

(A)An individual market participant, directly or in concert with another participant, shall not control more than 10 percent of the open interest in any regulated allowance derivative. (B)All contracts for the purchase or sale of any regulated allowance derivative shall be executed on or through a board of trade designated as a contract market under the Commodity Exchange Act. (C)To the extent that regulations promulgated under this subsection provide different rules with respect to the matters described in subparagraph (A) or (B), the regulations shall supersede subparagraph (A) or (B), as the case may be. (d)

Working group

(1)

Establishment

Not later than 30 days after the date of the enactment of this section, the President shall establish an interagency working group on carbon market oversight, which shall include the Administrator of the Environmental Protection Agency and representatives of other relevant agencies, to make recommendations to the President regarding proposed regulations for the establishment, operation, and oversight of markets for regulated allowance derivatives. (2)

Report

Not later than 180 days after the date of the enactment of this section, and biennially thereafter, the interagency working group shall submit a written report to the President and Congress that includes its recommendations to the President regarding proposed regulations for the establishment, operation, and oversight of markets for regulated allowance derivatives and any recommendations to Congress for statutory changes needed to ensure the establishment, operation, and oversight of transparent, fair, stable, and efficient markets for regulated allowance derivatives. (e)

Enforcement of regulations

Each Federal agency that promulgates under subsection (c) a regulation of conduct with respect to a regulated allowance derivative shall have the same authority to enforce compliance with the regulation as the Commodity Futures Trading Commission has to enforce compliance with any regulation of similar conduct with respect to a contract, agreement, or transaction over which the Commodity Futures Trading Commission has jurisdiction, except that any enforcement by the Federal Energy Regulatory Commission shall be pursuant to section 222 and Part III. (f)

Penalty for fraud and false or misleading statements

A person convicted under section 1041 of title 18, United States Code, may be prohibited from holding or trading regulated allowances for a period of not more than 5 years pursuant to the regulations promulgated under this section, except that, if the person is a covered entity, the person shall be allowed to hold sufficient regulated allowances to meet its compliance obligations. (g)

Relation to State law

Nothing in this section shall preclude, diminish or qualify any authority of a State or political subdivision thereof to adopt or enforce any unfair competition, antitrust, consumer protection, securities, commodities or any other law or regulation, except that no such State law or regulation may relieve any person of any requirement otherwise applicable under this section. (h)

Market reports

(1)

Collection and analysis of information

The Commission, in conjunction with the Federal agency with jurisdiction over regulated allowance derivatives pursuant to subsection (c)(1), shall, on a continuous basis, collect and analyze the following information on the functioning of the markets for regulated instruments established under this part: (A)The status of, and trends in, the markets, including prices, trading volumes, transaction types, and trading channels and mechanisms. (B)Spikes, collapses, and volatility in prices of regulated instruments, and the causes therefor. (C)The relationship between the market for regulated allowances and allowance derivatives, and the spot and futures markets for energy commodities, including electricity. (D)Evidence of fraud or manipulation in any such market, the effects on any such market of any such fraud or manipulation (or threat of fraud or manipulation) that the Commission, in conjunction with the Federal agency, has identified, and the effectiveness of corrective measures undertaken by the Commission, in conjunction with the Federal agency, to address the fraud, manipulation, or threat. (E)The economic effects of the markets, including to macro- and micro-economic effects of unexpected significant increases and decreases in the price of regulated instruments. (F)Any changes in the roles, activities, or strategies of various market participants. (G)Regional, industrial, and consumer responses to the markets, and energy investment responses to the markets. (H)Any other issue related to the markets that the Commission, in conjunction with the entities, deems appropriate. (2)

Annual reports to the Congress

Not later than 1 month after the end of each calendar year, the Commission, in conjunction with the Federal agency, shall submit to the President, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Energy and Natural Resources of the Senate, and make available to the public, a report on the matters described in paragraph (1) with respect to the year, including recommendations for any administrative or statutory measures the Commission, in conjunction with the Federal agency, considers necessary to address any threats to the transparency, fairness, or integrity of the markets in regulated instruments.

402.

Applicability of Part III provisions

(a)

Sections 301, 304, and 306

Sections 301, 304, and 306 shall not apply to this part. (b)

Sections 307, 309, and 314

Sections 307, 309, and 314 shall only apply to section 401(c) to the extent that the Commission is delegated authority to promulgate regulations for the establishment, operation, and oversight of markets for regulated allowance derivatives (as defined in section 401). If the Commission is not delegated authority to promulgate regulations for the establishment, operation, and oversight of markets for regulated allowance derivatives, sections 307, 309, and 314 shall not apply to section 401(f) in the case of regulated allowance derivatives. (c)

Section 315

In applying section 315(a) to this part, the words “person or entity” shall be substituted for the words “licensee or public utility”. In applying section 315(b) to this part, the words “an entity” shall be substituted for the words “a licensee or public utility” and the words “such entity” shall be substituted for the words “such licensee or public utility.” (d)

Section 316

Section 316(a) shall not apply to section 401(f).

. (b)

Criminal prohibition against fraud and false or misleading statements

(1)Chapter 47 of title 18, United States Code, is amended by adding at the end the following:

1041.

Fraud and false statements in connection with regulated allowances

Whoever in connection with a transaction involving a regulated allowance (as defined in section 401(a) of the Federal Power Act, as added by section 341 of the American Clean Energy and Security Act of 2009), knowingly— (1)makes or uses a materially false or misleading statement, writing, representation, scheme, or device; or (2)falsifies, conceals, or covers up by any trick, scheme, or device any material fact,shall be fined not more than $5,000,000 (or $25,000,000 in the case of an organization) or imprisoned not more than 20 years, or both.

. (2)The table of sections at the beginning of chapter 47 of title 18, United States Code, is amended by adding at the end the following new item: 1041. Fraud and false statements in connection with regulated allowances..

E

Additional Market Assurance

351.

Regulation of certain transactions in derivatives involving energy commodities

(a)

Energy commodity defined

Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended— (1)in paragraph (14), by inserting , an energy commodity, after excluded commodity; (2)by redesignating paragraphs (13) through (21) and paragraphs (22) through (34) as paragraphs (14) through (22) and paragraphs (24) through (36), respectively; (3)by inserting after paragraph (12) the following: (13)

Energy commodity

The term energy commodity means— (A)coal; (B)crude oil, gasoline, diesel fuel, jet fuel, heating oil, and propane; (C)electricity (excluding financial transmission rights which are subject to regulation and oversight by the Federal Energy Regulatory Commission); (D)natural gas; and (E)any other substance (other than an excluded commodity, a metal, or an agricultural commodity) that is used as a source of energy, as the Commission, in its discretion, deems appropriate.; and (4)by inserting after paragraph (22) (as so redesignated by paragraph (2) of this subsection) the following: (23)

Included energy transaction

The term included energy transaction means a contract, agreement, or transaction in an energy commodity for future delivery that provides for a delivery point of the energy commodity in the United States or a territory or possession of the United States, or that is offered or transacted on or through a computer terminal located in the United States.. (b)

Extension of regulatory authority to swaps involving energy transactions

Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by inserting or an energy commodity after agricultural commodity. (c)

Elimination of exemption for over-the-counter swaps involving energy commodities

Section 2(h)(1) of such Act (7 U.S.C. 2(h)(1)) is amended by inserting (other than an energy commodity) after exempt commodity. (d)

Extension of regulatory authority to included energy transactions on foreign boards of trade

Section 4 of such Act (7 U.S.C. 6) is amended— (1)in subsection (a), by inserting , and which is not an included energy transaction after territories or possessions the 2nd place it appears; and (2)in subsection (b), by adding at the end the following: The preceding sentence shall not apply with respect to included energy transactions.. (e)

Limitation of general exemptive authority of the CFTC with respect to included energy transactions

(1)

In general

Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by adding at the end the following: (6)The Commission may not exempt any included energy transaction from the requirements of subsection (a), unless the Commission provides 60 days advance notice to the Congress and the Position Limit Energy Advisory Group and solicits public comment about the exemption request and any proposed Commission action.. (2)

Nullification of no-action letter exemptions to certain requirements applicable to included energy transactions

Beginning 180 days after the date of the enactment of this Act, any exemption provided by the Commodity Futures Trading Commission that has allowed included energy transactions (as defined in section 1a(13) of the Commodity Exchange Act) to be conducted without regard to the requirements of section 4(a) of such Act shall be null and void. (f)

Requirement to establish uniform speculative position limits for energy transactions

(1)

In general

Section 4a(a) of such Act (7 U.S.C. 6a(a)) is amended— (A)by inserting (1) after (a); (B)by inserting after the 2nd sentence the following: With respect to energy transactions, the Commission shall fix limits on the aggregate number of positions which may be held by any person for each month across all markets subject to the jurisdiction of the Commission.; (C)in the 4th sentence by inserting , consistent with the 3rd sentence, after Commission; and (D)by adding after and below the end the following: (2) (A)Not later than 60 days after the date of the enactment of this paragraph, the Commission shall convene a Position Limit Energy Advisory Group consisting of representatives from— (i)7 predominantly commercial short hedgers of the actual energy commodity for future delivery; (ii)7 predominantly commercial long hedgers of the actual energy commodity for future delivery; (iii)4 non-commercial participants in markets for energy commodities for future delivery; and (iv)each designated contract market or derivatives transaction execution facility upon which a contract in the energy commodity for future delivery is traded, and each electronic trading facility that has a significant price discovery contract in the energy commodity. (B)Not later than 60 days after the date on which the advisory group is convened under subparagraph (A), and annually thereafter, the advisory group shall submit to the Commission advisory recommendations regarding the position limits to be established in paragraph (1). (C)The Commission shall have exclusive authority to grant exemptions for bona fide hedging transactions and positions from position limits imposed under this Act on energy transactions.. (2)

Conforming amendments

(A)

Significant price discovery contracts

Section 2(h)(7) of such Act (7 U.S.C. 2(h)(7)) is amended— (i)in subparagraph (A)— (I)by inserting of this paragraph and section 4a(a) after (B) through (D); and (II)by inserting of this paragraph before the period; and (ii)in subparagraph (C)(ii)(IV)— (I)in the heading, by striking limitations or; and (II)by striking position limitations or. (B)

Contracts traded on or through designated contract markets

Section 5(d)(5) of such Act (7 U.S.C. 7(d)(5)) is amended— (i)in the heading by striking limitations or; and (ii)by striking position limitations or. (C)

Contracts traded on or through derivatives transaction execution facilities

Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) is amended— (i)in the heading by striking limitations or; and (ii)by striking position limits or. (g)

Elimination of the swaps loophole

Section 4a(c) of such Act (7 U.S.C. 6a(c)) is amended— (1)by inserting (1) after (c); and (2)by adding after and below the end the following: (2)For the purposes of contracts of sale for future delivery and options on such contracts or commodities, the Commission shall define what constitutes a bona fide hedging transaction or position as a transaction or position that— (A) (i)represents a substitute for transactions made or to be made or positions taken or to be taken at a later time in a physical marketing channel; (ii)is economically appropriate to the reduction of risks in the conduct and management of a commercial enterprise; and (iii)arises from the potential change in the value of— (I)assets that a person owns, produces, manufactures, processes, or merchandises or anticipates owning, producing, manufacturing, processing, or merchandising; (II)liabilities that a person owns or anticipates incurring; or (III)services that a person provides, purchases, or anticipates providing or purchasing; or (B)reduces risks attendant to a position resulting from a transaction that— (i)was executed pursuant to subsection (d), (g), (h)(1), or (h)(2) of section 2, or an exemption issued by the Commission by rule, regulation or order; and (ii)was executed opposite a counterparty for which the transaction would qualify as a bona fide hedging transaction pursuant to paragraph (2)(A) of this subsection.. (h)

Detailed reporting and disaggregation of market data

Section 4 of such Act (7 U.S.C. 6) is amended by adding at the end the following: (e)

Detailed reporting and disaggregation of market data

(1)

Index traders and swap dealers reporting

The Commission shall issue a proposed rule defining and classifying index traders and swap dealers (as those terms are defined by the Commission) for purposes of data reporting requirements and setting routine detailed reporting requirements for any positions of such entities in contracts traded on designated contract markets, over-the-counter markets, derivatives transaction execution facilities, foreign boards of trade subject to section 4(f), and electronic trading facilities with respect to significant price discovery contracts not later than 120 days after the date of the enactment of this subsection, and issue a final rule within 180 days after such date of enactment. (2)

Disaggregation of index funds and other data in markets

Subject to section 8 and beginning within 60 days of the issuance of the final rule required by paragraph (1), the Commission shall disaggregate and make public weekly— (A)the number of positions and total notional value of index funds and other passive, long-only and short-only positions (as defined by the Commission) in all markets to the extent such information is available; and (B)data on speculative positions relative to bona fide physical hedgers in those markets to the extent such information is available. (3)

Disclosure of identity of holders of positions in indexes in excess of position limits

The Commission shall include in its weekly Commitment of Trader reports the identity of each person who holds a position in an index in excess of a limit imposed under section 4i.. (i)

Authority to set limits to prevent excessive speculation in indexes

(1)

In general

Section 4a of such Act (7 U.S.C. 6a) is amended by adding at the end the following: (f)The provisions of this section shall apply to the amounts of trading which may be done or positions which may be held by any person under contracts of sale of an index for future delivery on or subject to the rules of any contract market, derivatives transaction execution facility, or over-the-counter market, or on an electronic trading facility with respect to a significant price discovery contract, in the same manner in which this section applies to contracts of sale of a commodity for future delivery.. (2)

Regulations

The Commodity Futures Trading Commission shall issue regulations under section 4a(f) of the Commodity Exchange Act within 180 days after the date of the enactment of this Act.

352.

No effect on authority of the Federal Energy Regulatory Commission

Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended by adding at the end the following:. (j)This Act shall not be interpreted to affect the jurisdiction of the Federal Energy Regulatory Commission with respect to the authority of the Federal Energy Regulatory Commission under the Federal Power Act (16 U.S.C. 791a et seq.), the Natural Gas Act (15 U.S.C. 717 et seq.), or other law to obtain information, carry out enforcement actions, or otherwise carry out the responsibilities of the Federal Energy Regulatory Commission..

353.

Inspector General of the Commodity Futures Trading Commission

(a)

Elevation of office

(1)

Inclusion of cftc in definition of establishment

(A)Section 12(1) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking or the Federal Cochairpersons of the Commissions established under section 15301 of title 40, United States Code; and inserting the Federal Cochairpersons of the Commissions established under section 15301 of title 40, United States Code; or the Chairman of the Commodity Futures Trading Commission;. (B)Section 12(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking or the Commissions established under section 15301 of title 40, United States Code, and inserting the Commissions established under section 15301 of title 40, United States Code, or the Commodity Futures Trading Commission,. (2)

Exclusion of cftc from definition of designated federal entity

Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking the Commodity Futures Trading Commission,. (b)

Provisions Relating to Pay and Personnel Authority

(1)

Provision relating to the position of inspector general of the cftc

In the case of the Inspector General of the Commodities Futures Trading Commission, subsections (b) and (c) of section 4 of the Inspector General Reform Act of 2008 (Public Law 110-409) shall apply in the same manner as if the Commission was a designated Federal entity under section 8G. The Inspector General of the Commodities Futures Trading Commission shall not be subject to section 3(e) of such Act. (2)

Provision relating to other personnel

Notwithstanding paragraphs (7) and (8) of section 6(a) of the Inspector General Act of 1978 (5 U.S.C. App.), the Inspector General of the Commodities Futures Trading Commission may select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office of Inspector General and to obtain the temporary or intermittent services of experts or consultants or an organization of experts or consultants, subject to the applicable laws and regulations that govern such selections, appointments, and employment, and the obtaining of such services, within the Commodities Futures Trading Commission. (c)

Effective date; transition rule

(1)

Effective date

The amendments made by this section shall take effect 30 days after the date of the enactment of this Act. (2)

Transition rule

An individual serving as Inspector General of the Commodity Futures Trading Commission on the effective date of this section pursuant to an appointment made under section 8G of the Inspector General Act of 1978 (5 U.S.C. App.)— (A)may continue so serving until the President makes an appointment under section 3(a) of such Act consistent with the amendments made by this section; and (B)shall, while serving under subparagraph (A), remain subject to the provisions of section 8G of such Act which apply with respect to the Commodity Futures Trading Commission.

354.

Settlement and clearing through registered derivatives clearing organizations

(a)

In general

(1)

Application to excluded derivative transactions

(A)Section 2(d)(1) of the Commodity Exchange Act (7 U.S.C. 2(d)(1)) is amended— (i)by striking and at the end of subparagraph (A); (ii)by striking the period at the end of subparagraph (B) and inserting ; and; and (iii)by adding at the end the following: (C)except as provided in section 4(f), the agreement, contract, or transaction is settled and cleared through a derivatives clearing organization registered with the Commission.. (B)Section 2(d)(2) of such Act (7 U.S.C. 2(d)(2)) is amended— (i)by striking and at the end of subparagraph (B); (ii)by striking the period at the end of subparagraph (C) and inserting ; and; and (iii)by adding at the end the following: (D)except as provided in section 4(f), the agreement, contract, or transaction is settled and cleared through a derivatives clearing organization registered with the Commission.. (2)

Application to certain swap transactions

Section 2(g) of such Act (7 U.S.C. 2(g)) is amended— (A)by striking and at the end of paragraph (2); (B)by striking the period at the end of paragraph (3) and inserting ; and; and (C)by adding at the end the following: (4)except as provided in section 4(f), settled and cleared through a derivatives clearing organization registered with the Commission.. (3)

Application to certain transactions in exempt commodities

(A)Section 2(h)(1) of such Act ( 7 U.S.C. 2(h)(1)) is amended— (i)by striking and at the end of subparagraph (A); (ii)by striking the period at the end of subparagraph (B) and inserting ; and; and (iii)by adding at the end the following: (C)except as provided in section 4(f), is settled and cleared through a derivatives clearing organization registered with the Commission.. (B)Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended— (i)by striking and at the end of subparagraph (A); (ii)by striking the period at the end of subparagraph (B) and inserting ; and; and (iii)by adding at the end the following: (C)except as provided in section 4(f), settled and cleared through a derivatives clearing organization registered with the Commission.. (4)

General exemptive authority

Section 4(c)(1) of such Act (7 U.S.C. 6(c)(1)) is amended by inserting the agreement, contract, or transaction, except as provided in section 4(h), will be settled and cleared through a derivatives clearing organization registered with the Commission and before the Commission determines. (5)

Conforming amendment relating to significant price discovery contracts

Section 2(h)(7)(D) of such Act (7 U.S.C. 2(h)(7)(D)) is amended by striking the designation and heading for the subparagraph and all that follows through As part of and inserting the following: (D)

Review of implementation

As part of. (b)

Alternatives to clearing through designated clearing organizations

Section 4 of such Act (7 U.S.C. 6), as amended by section 351(h) of this Act, is amended by adding at the end the following: (f)

Alternatives to clearing through designated clearing organizations

(1)

Settlement and clearing through certain other regulated entities

An agreement, contract, or transaction, or class thereof, relating to an excluded commodity, that would otherwise be required to be settled and cleared by section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 2(h)(3)(C) of this Act, or subsection (c)(1) of this section may be settled and cleared through an entity listed in subsections (a) or (b) of section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991. (2)

Waiver of clearing requirement

(A)The Commission, in its discretion, may exempt an agreement, contract, or transaction, or class thereof, that would otherwise be required by section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 2(h)(3)(C) of this Act, or subsection (c)(1) of this section to be settled and cleared through a derivatives clearing organization registered with the Commission from such requirement. (B)In granting exemptions pursuant to subparagraph (A), the Commission shall consult with the Securities and Exchange Commission and the Board of Governors of the Federal Reserve System regarding exemptions that relate to excluded commodities or entities for which the Securities Exchange Commission or the Board of Governors of the Federal Reserve System serve as the primary regulator. (C)Before granting an exemption pursuant to subparagraph (A), the Commission shall find that the agreement, contract, or transaction, or class thereof— (i)is highly customized as to its material terms and conditions; (ii)is transacted infrequently; (iii)does not serve a significant price-discovery function in the marketplace; and (iv)is being entered into by parties who can demonstrate the financial integrity of the agreement, contract, or transaction and their own financial integrity, as such terms and standards are determined by the Commission. The standards may include, with respect to any federally regulated financial entity for which net capital requirements are imposed, a net capital requirement associated with any agreement, contract, or transaction subject to an exemption from the clearing requirement that is higher than the net capital requirement that would be associated with such a transaction were it cleared (D)Any agreement, contract, or transaction, or class thereof, which is exempted pursuant to subparagraph (A) shall be reported to the Commission in a manner designated by the Commission, or to such other entity the Commission deems appropriate. (E)The Commission, the Securities and Exchange Commission and the Board of Governors of the Federal Reserve System shall enter into a memorandum of understanding by which the information reported to the Commission pursuant to subparagraph (D) with regard to excluded commodities or entities for which the Securities Exchange Commission or the Board of Governors of the Federal Reserve System serve as the primary regulator may be provided to the other agencies. (g)

Spot and forward exclusion

The settlement and clearing requirements of section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C), or 4(c)(1) shall not apply to an agreement, contract, or transaction of any cash commodity for immediate or deferred shipment or delivery, as defined by the Commission.. (c)

Additional requirements applicable to applicants for registration as a derivative clearing organization

Section 5b(c)(2) of such Act (7 U.S.C. 7a-1(c)(2)) is amended by adding at the end the following: (O)

Disclosure of general information

The applicant shall disclose publicly and to the Commission information concerning— (i)the terms and conditions of contracts, agreements, and transactions cleared and settled by the applicant; (ii)the conventions, mechanisms, and practices applicable to the contracts, agreements, and transactions; (iii)the margin-setting methodology and the size and composition of the financial resource package of the applicant; and (iv)other information relevant to participation in the settlement and clearing activities of the applicant. (P)

Daily publication of trading information

The applicant shall make public daily information on settlement prices, volume, and open interest for contracts settled or cleared pursuant to the requirements of section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C) or 4(c)(1) of this Act by the applicant if the Commission determines that the contracts perform a significant price discovery function for transactions in the cash market for the commodity underlying the contracts. (Q)

Fitness standards

The applicant shall establish and enforce appropriate fitness standards for directors, members of any disciplinary committee, and members of the applicant, and any other persons with direct access to the settlement or clearing activities of the applicant, including any parties affiliated with any of the persons described in this subparagraph.. (d)

Amendments

(1)Section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4422) is amended by adding at the end the following: (c)

Clearing requirement

A multilateral clearing organization described in subsections (a) or (b) of this section shall comply with requirements similar to the requirements of sections 5b and 5c of the Commodity Exchange Act.. (2)Section 407 of the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27e) is amended by inserting and the settlement and clearing requirements of sections 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C), and 4(c)(1) of such Act after the clearing of covered swap agreements. (e)

Effective date

The amendments made by this section shall take effect 150 days after the date of the enactment of this Act. (f)

Transition rule

Any agreement, contract, or transaction entered into before the date of the enactment of this Act or within 150 days after such date of enactment, in reliance on subsection (d), (g), (h)(1), or (h)(3) of section 2 of the Commodity Exchange Act or any other exemption issued by the Commission Futures Trading Commission by rule, regulation, or order shall, within 90 days after such date of enactment, unless settled and cleared through an entity registered with the Commission as a derivatives clearing organization or another clearing entity pursuant to section 4(f) of such Act, be reported to the Commission in a manner designated by the Commission, or to such other entity as the Commission deems appropriate.

355.

Limitation on eligibility to purchase a credit default swap

(a)

In general

Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is amended by adding at the end the following: (h)

Limitation on eligibility to purchase a credit default swap

It shall be unlawful for any person to enter into a credit default swap unless the person— (1)owns a credit instrument which is insured by the credit default swap; (2)would experience financial loss if an event that is the subject of the credit default swap occurs with respect to the credit instrument; and (3)meets such minimum capital adequacy standards as may be established by the Commission, in consultation with the Board of Governors of the Federal Reserve System, or such more stringent minimum capital adequacy standards as may be established by or under the law of any State in which the swap is originated or entered into, or in which possession of the contract involved takes place.. (b)

Elimination of preemption of State bucketing laws regarding naked credit default swaps

Section 12(e)(2)(B) of such Act (7 U.S.C. 16(e)(2)(B)) is amended by inserting (other than a credit default swap in which the purchaser of the swap would not experience financial loss if an event that is the subject of the swap occurred) before that is excluded. (c)

Definition of credit default swap

Section 1a of such Act (7 U.S.C. 1a), as amended by section 351(a) of this Act, is amended by adding at the end the following: (37)

Credit default swap

The term credit default swap means a contract which insures a party to the contract against the risk that an entity may experience a loss of value as a result of an event specified in the contract, such as a default or credit downgrade. A credit default swap that is traded on or cleared by a registered entity shall be excluded from the definition of a security as defined in this Act and in section 2(a)(1) of the Securities Act of 1933 or section 3(a)(10) of the Securities Exchange Act of 1934, except it shall be deemed a security solely for purpose of enforcing prohibitions against insider trading in sections 10 and 16 of the Securities Exchange Act of 1934.. (d)

Effective date

The amendments made by this section shall be effective for credit default swaps (as defined in section 1a(37) of the Commodity Exchange Act) entered into after 60 days after the date of the enactment of this section.

356.

Transaction fees

(a)

In general

Section 12 of the Commodity Exchange Act (7 U.S.C. 16) is amended by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively, and inserting after subsection (d) the following: (e)

Clearing fees

(1)

In general

The Commission shall, in accordance with this subsection, charge and collect from each registered clearing organization, and each such organization shall pay to the Commission, transaction fees at a rate calculated to recover the costs to the Federal Government of the supervision and regulation of futures markets, except those directly related to enforcement. (2)

Fees assessed per side of cleared contracts

(A)

In general

The Commission shall determine the fee rate referred to in paragraph (1), and shall apply the fee rate per side of any transaction cleared. (B)

Authority to delegate

The Commission may determine the procedures by which the fee rate is to be applied on the transactions subject to the fee, or delegate the authority to make the determination to any appropriate derivatives clearing organization. (3)

Exemptions

The Commission may not impose a fee under paragraph (1) on— (A)a class of contracts or transactions if the Commission finds that it is in the public interest to exempt the class from the fee; or (B)a contract or transaction cleared by a registered derivatives clearing organization that is— (i)subject to fees under section 31 of the Securities Exchange Act of 1934; or (ii)a security as defined in the Securities Act of 1933 or the Securities Exchange Act of 1934. (4)

Dates for payment of fees

The fees imposed under paragraph (1) shall be paid on or before— (A)March 15 of each year, with respect to transactions occurring on or after the preceding September 1 and on or before the preceding December 31; and (B)September 15 of each year, with respect to transactions occurring on or after the preceding January 1 and on or before the preceding August 31. (5)

Annual adjustment of fee rates

(A)

In general

Not later than April 30 of each fiscal year , the Commission shall, by order, adjust each fee rate determined under paragraph (2) for the fiscal year to a uniform adjusted rate that, when applied to the estimated aggregate number of cleared sides of transactions for the fiscal year, is reasonably likely to produce aggregate fee receipts under this subsection for the fiscal year equal to the target offsetting receipt amount for the fiscal year. (B)

Definitions

In subparagraph (A): (i)

Estimated aggregate number of cleared sides of transactions

The term estimated aggregate number of cleared sides of transactions means, with respect to a fiscal year, the aggregate number of cleared sides of transactions to be cleared by registered derivatives clearing organizations during the fiscal year, as estimated by the Commission, after consultation with the Office of Management and Budget, using the methodology required for making projections pursuant to section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985. (ii)

Target offsetting receipt amount

The term target offsetting receipt amount means, with respect to a fiscal year, the total level of Commission budget authority for all non-enforcement activities of the Commission, as contained in the regular appropriations Acts for the fiscal year. (C)

No judicial review

An adjusted fee rate prescribed under subparagraph (A) shall not be subject to judicial review. (6)

Publication

Not later than April 30 of each fiscal year, the Commission shall cause to be published in the Federal Register notices of the fee rates applicable under this subsection for the succeeding fiscal year, and any estimate or projection on which the fee rates are based. (7)

Establishment of futures and options transaction fee account; deposit of fees

There is established in the Treasury of the United States an account which shall be known as the Futures and Options Transaction Fee Account. All fees collected under this subsection for a fiscal year shall be deposited in the account. Amounts in the account are authorized to be appropriated to fund the expenditures of the Commission.. (b)

Effective date

The amendments made by subsection (a) shall apply to fiscal years beginning 30 or more days after the date of the enactment of this Act. (c)

Transition rule

If this section becomes law after March 31 and before September 1 of a fiscal year, then paragraphs (5)(A) and (6) of section 12(e) of the Commodity Exchange Act shall be applied, in the case of the 1st fiscal year beginning after the date of the enactment of this Act, by substituting August 31 for April 30.

357.

No effect on antitrust law or authority of the Federal Trade Commission

(a)Nothing in this subtitle shall be construed to modify, impair, or supersede the operation of any of the antitrust laws. For purposes of this subsection, the term “antitrust laws” has the meaning given it in subsection (a) of the 1st section of the Clayton Act (15 U.S.C. 12(a)), except that such term includes section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to the extent that such term applies to unfair methods of competition. (b)Nothing in this subtitle shall be construed to affect or diminish the jurisdiction or authority of the Federal Trade Commission with respect to its authorities under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) or the Energy Independence and Security Act of 2007 (Public Law 110–140) to obtain information, to carry out enforcement activities, or otherwise to carry out the responsibilities of the Federal Trade Commission.

358.

Regulation of carbon derivatives markets

(a)

Default rule

Section 2 of the Commodity Exchange Act (7 U.S.C. 2), as amended by section 352 of this Act, is amended by adding at the end the following: (k)The Commission shall have jurisdiction over the establishment, operations, and oversight of markets for regulated allowance derivatives (as defined in section 401 of the Federal Power Act (16 U.S.C. 791a and following)), and shall provide for the establishment, operation, and oversight of the markets in accordance with the same regulations that apply under this Act to included energy transactions.. (b)

Presidential determinations

To the extent that the President delegates the authority to promulgate regulations for the establishment, operation, and oversight of all markets for regulated allowance derivatives to a Federal agency other than the Commodity Futures Trading Commission pursuant to section 401 of the Federal Power Act, such determination shall supersede subsection (a). To the extent that the President determines that regulations promulgated pursuant to section 401(c)(2) of the Federal Power Act would provide for more stringent and effective market oversight, such regulations shall supersede subsection (a). Nothing in this section shall be construed to affect the operation of the default rules established in section 401(c)(4) of the Federal Power Act.

359.

Cease-and-desist authority

(a)

Natural Gas Act

Section 20 of the Natural Gas Act (15 U.S.C. 717s) is amended by adding the following at the end: (e)

Cease-and-desist proceedings; temporary orders; authority of the commission

(1)

In general

If the Commission finds, after notice and opportunity for hearing, that any entity may be violating, may have violated, or may be about to violate any provision of this Act, or any rule, regulation, restriction, condition, or order made or imposed by the Commission under the authority of this Act, the Commission may publish its findings and issue an order requiring such entity, and any other entity that is, was, or would be a cause of the violation, due to an act or omission the entity knew or should have known would contribute to such violation, to cease and desist from committing or causing such violation and any future violation of the same provision, rule, or regulation. Such order may, in addition to requiring an entity to cease and desist from committing or causing a violation, require such entity to comply, to provide an accounting and disgorgement, or to take steps to effect compliance, with such provision, rule, or regulation, upon such terms and conditions and within such time as the Commission may specify in such order. Any such order may, as the Commission deems appropriate, require future compliance or steps to effect future compliance, either permanently or for such period of time as the Commission may specify. (2)

Timing of entry

An order issued under this subsection shall be entered only after notice and opportunity for a hearing, unless the Commission determines that notice and hearing prior to entry would be impracticable or contrary to the public interest. (f)

Hearing

The notice instituting proceedings pursuant to subsection (e) shall fix a hearing date not earlier than 30 days nor later than 60 days after service of the notice unless an earlier or a later date is set by the Commission with the consent of any respondent so served. (g)

Temporary order

Whenever the Commission determines that-— (1)a respondent may take actions to dissipate or convert assets prior to the completion of the proceedings referred to in subsection (e), and such assets would be necessary to comply with or otherwise satisfy a final enforcement order of the Commission pursuant to alleged violations or threatened violations specified in the notice instituting proceedings; or (2) a respondent is engaged in actual or threatened violations of this Act or a Commission rule, regulation, restriction or order referred to in subsection (e), the Commission may issue a temporary order requiring the respondent to take such action to prevent dissipation or conversion of assets, significant harm to energy consumers, or substantial harm to the public interest, frustration of the Commission’s ability to conduct the proceedings, or frustration of the Commission’s ability to redress said violation at the conclusion of the proceedings, as the Commission deems appropriate pending completion of such proceedings. (h)

Review of temporary orders

(1)

Commission review

At any time after the respondent has been served with a temporary cease-and-desist order pursuant to subsection (g), the respondent may apply to the Commission to have the order set aside, limited, or suspended. If the respondent has been served with a temporary cease-and-desist order entered without a prior Commission hearing, the respondent may, within 10 days after the date on which the order was served, request a hearing on such application and the Commission shall hold a hearing and render a decision on such application at the earliest possible time. (2)

Judicial review

Within— (A)10 days after the date the respondent was served with a temporary cease-and-desist order entered with a prior Commission hearing; or (B)10 days after the Commission renders a decision on an application and hearing under paragraph (1), with respect to any temporary cease-and-desist order entered without a prior Commission hearing, the respondent may apply to the United States circuit court having jurisdiction over the circuit in which the respondent resides or has its principal place of business, or to the United States Court of Appeals for the District of Columbia Circuit, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease-and-desist order entered without a prior Commission hearing may not apply to the court except after hearing and decision by the Commission on the respondent’s application under paragraph (1) of this subsection. (3)

No automatic stay of temporary order

The commencement of proceedings under paragraph (2) of this subsection shall not, unless specifically ordered by the court, operate as a stay of the Commission’s order. (4)

Exclusive review

Sections 19(d) and 24 shall not apply to a temporary order entered pursuant to this section. (i)

Implementation

The Commission is authorized to adopt rules, regulations, and orders as it deems appropriate to implement this section.. (c)

Natural Gas Policy Act of 1978

Section 504 of the Natural Gas Policy Act of 1978 (15 U.S.C. 3414) is amended by adding the following at the end: (d)

Cease-and-desist proceedings; temporary orders; authority of the Commission

(1)

In general

If the Commission finds, after notice and opportunity for hearing, that any entity may be violating, may have violated, or may be about to violate any provision of this Act, or any rule, regulation, restriction, condition, or order made or imposed by the Commission under the authority of this Act, the Commission may publish its findings and issue an order requiring such entity, and any other entity that is, was, or would be a cause of the violation, due to an act or omission the entity knew or should have known would contribute to such violation, to cease and desist from committing or causing such violation and any future violation of the same provision, rule, or regulation. Such order may, in addition to requiring an entity to cease and desist from committing or causing a violation, require such entity to comply, to provide an accounting and disgorgement, or to take steps to effect compliance, with such provision, rule, or regulation, upon such terms and conditions and within such time as the Commission may specify in such order. Any such order may, as the Commission deems appropriate, require future compliance or steps to effect future compliance, either permanently or for such period of time as the Commission may specify. (2)

Timing of entry

An order issued under this subsection shall be entered only after notice and opportunity for a hearing, unless the Commission determines that notice and hearing prior to entry would be impracticable or contrary to the public interest. (3)

Hearing

The notice instituting proceedings pursuant to paragraph (1) shall fix a hearing date not earlier than 30 days nor later than 60 days after service of the notice unless an earlier or a later date is set by the Commission with the consent of any respondent so served. (4)

Temporary order

Whenever the Commission determines that— (A)a respondent may take actions to dissipate or convert assets prior to the completion of the proceedings referred to in paragraph (1) and such assets would be necessary to comply with or otherwise satisfy a final enforcement order of the Commission pursuant to alleged violations or threatened violations specified in the notice instituting proceedings; or (B) a respondent is engaged in actual or threatened violations of this Act or a Commission rule, regulation, restriction or order referred to in paragraph (1),the Commission may issue a temporary order requiring the respondent to take such action to prevent dissipation or conversion of assets, significant harm to energy consumers, or substantial harm to the public interest, frustration of the Commission’s ability to conduct the proceedings, or frustration of the Commission’s ability to redress said violation at the conclusion of the proceedings, as the Commission deems appropriate pending completion of such proceedings. (5)

Review of temporary orders

(A)

Commission review

At any time after the respondent has been served with a temporary cease-and-desist order pursuant to paragraph (4), the respondent may apply to the Commission to have the order set aside, limited, or suspended. If the respondent has been served with a temporary cease-and-desist order entered without a prior Commission hearing, the respondent may, within 10 days after the date on which the order was served, request a hearing on such application and the Commission shall hold a hearing and render a decision on such application at the earliest possible time. (B)

Judicial review

Within— (i)10 days after the date the respondent was served with a temporary cease-and-desist order entered with a prior Commission hearing; or (ii)10 days after the Commission renders a decision on an application and hearing under subparagraph (A), with respect to any temporary cease-and-desist order entered without a prior Commission hearing, the respondent may apply to the United States circuit court having jurisdiction over the circuit in which the respondent resides or has its principal place of business, or to the United States Court of Appeals for the District of Columbia Circuit, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease-and-desist order entered without a prior Commission hearing may not apply to the court except after hearing and decision by the Commission on the respondent’s application under paragraph (1) of this subsection. (C)

No automatic stay of temporary order

The commencement of proceedings under subparagraph (B) of this paragraph shall not, unless specifically ordered by the court, operate as a stay of the Commission’s order. (6)

Implementation

The Commission is authorized to adopt rules, regulations, and orders as it deems appropriate to implement this subsection..

.

432.

Modification of earned income credit amount for individuals with no qualifying children

(a)

Increase in credit percentage and phaseout percentage for individuals with no children

The table contained in subparagraph (A) of section 32(b)(1) of the Internal Revenue Code of 1986 is amended by striking 7.65 each place it appears and inserting 15.3. (b)

Increase in beginning phaseout amount

(1)

In general

The table contained in subparagraph (A) of section 32(b)(2) of such Code is amended by striking $5,280 and inserting $13,590. (2)

Inflation adjustment

(A)

In general

Subparagraph (B) of section 32(j)(1) of such Code is amended by striking and at the end of clause (i), by redesignating clause (ii) as clause (iii), and by inserting after clause (i) the following new clause: (ii)in the case of the $13,590 amount in subsection (b)(2)(A), by substituting calendar year 2011 for calendar year 1992 in subparagraph (B) thereof, and. (B)

Conforming amendments

(i)Clause (i) of section 32(j)(1)(B) of such Code is amended by inserting except as provided in clause (ii), before in the case of. (ii)Paragraph (1) of section 32(j) of such Code is amended by inserting (2012 in the case of the $13,590 amount in subsection (b)(2)(A)) after 1996. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

433.

Protection of Social Security and Medicare trust funds

(a)

OASDI trust funds

Section 201 of the Social Security Act (42 U.S.C. 401) is amended by adding at the end the following new subsection: (o)The Secretary of the Treasury shall transfer from time to time to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, from amounts in the general fund of the Treasury that are not otherwise appropriated, such sums as the Chief Actuary of the Social Security Administration calculates as necessary (and so certifies to such Secretary) for any fiscal year, on account of changes in benefit costs and changes in tax revenue attributable to the provisions of the American Clean Energy and Security Act of 2009 and the amendments made thereby, in order to place each of such Trust Funds in the same position at the end of such fiscal year as the position in which such Trust Fund would have been if such changes had not occurred.. (b)

HI trust fund

Section 1817 of such Act (42 U.S.C. 1395i) is amended by adding at the end the following new subsection: (l)

Transfers to account for changes in benefit costs and changes in tax revenue attributable to the American Clean Energy and Security Act of 2009

The Secretary of the Treasury shall transfer from time to time to the Trust Fund, from amounts in the general fund of the Treasury that are not otherwise appropriated, such sums as the Chief Actuary of the Centers for Medicare & Medicaid Services calculates as necessary (and so certifies to such Secretary) for any fiscal year, on account of changes in benefit costs and changes in tax revenue attributable to the provisions of the American Clean Energy and Security Act of 2009 and the amendments made thereby, in order to place the Trust Fund in the same position at the end of such fiscal year as the position in which it would have been if such changes had not occurred..

D

Exporting Clean Technology

441.

Findings and purposes

(a)

Findings

Congress finds the following: (1)Protecting Americans from the impacts of climate change requires global reductions in greenhouse gas emissions. (2)Although developing countries are historically least responsible for the cumulative greenhouse gas emissions that are causing climate change and continue to have very low per capita greenhouse gas emissions, their overall greenhouse gas emissions are increasing as they seek to grow their economies and reduce energy poverty for their populations. (3)Many developing countries lack the financial and technical resources to adopt clean energy technologies and absent assistance their greenhouse gas emissions will continue to increase. (4)Investments in clean energy technology cooperation can substantially reduce global greenhouse gas emissions while providing developing countries with incentives to adopt policies that will address competitiveness concerns related to regulation of United States greenhouse gas emissions. (5)Investments in clean technology in developing countries will increase demand for clean energy products, open up new markets for United States companies, spur innovation, and lower costs. (6)Under Article 4 of the United Nations Framework Convention on Climate Change, developed country parties, including the United States, committed to take all practicable steps to promote, facilitate, and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other parties, particularly developing country parties, to enable them to implement the provisions of the Convention. (7)Under the Bali Action Plan, developed country parties to the United Nations Framework Convention on Climate Change, including the United States, committed to enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation, including, inter alia, consideration of improved access to adequate, predictable, and sustainable financial resources and financial and technical support, and the provision of new and additional resources, including official and concessional funding for developing country parties. (8)Intellectual property rights are a key driver of investment and research and development in, and the global deployment of, clean technologies. (9)Innovative clean technologies, including U.S. and multilateral financing mechanisms for their deployment, are critical to mitigating global warming pollution, preventing catastrophic changes to the climate, and developing robust economies around the world. (10)Any weakening of intellectual property rights protection poses a substantial competitive risk to U.S. companies and the creation of high-quality U.S. jobs, inhibiting the creation of new green employment and the transformational shift to the Green Economy of the 21st Century. (11)Any U.S. funding directed toward assisting developing countries with regard to exporting clean technology should promote the robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C.3511(d)(15) and in applicable intellectual property provisions of bilateral trade agreements. (b)

Purposes

The purposes of this subtitle are— (1)to provide United States assistance and leverage private resources to encourage widespread implementation, in developing countries, of activities that reduce, sequester, or avoid greenhouse gas emissions; and (2)to provide such assistance in a manner that— (A)encourages such countries to adopt policies and measures, including sector-based and cross-sector policies and measures, that substantially reduce, sequester, or avoid greenhouse gas emissions; (B)promotes the successful negotiation of a global agreement to reduce greenhouse gas emissions under the United Nations Framework Convention on Climate Change; and (C)promotes robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and in applicable intellectual property provisions of bilateral trade agreements.

442.

Definitions

In this subtitle: (1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act. (2)

Appropriate congressional committees

The term appropriate congressional committees means— (A)the Committees on Energy and Commerce, Foreign Affairs, and Financial Services of the House of Representatives; and (B)the Committees on Environment and Public Works, Energy and Natural Resources, and Foreign Relations of the Senate. (3)

Convention

The term Convention means the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992, and entered into force on March 21, 1994. (4)

Developing country

The term developing country means a country eligible to receive official development assistance according to the income guidelines of the Development Assistance Committee of the Organization for Economic Cooperation and Development. (5)

Eligible country

The term eligible country means a developing country that is determined by the interagency group under section 444 to be eligible to receive assistance from the International Clean Technology Account. (6)

Interagency group

The term interagency group means the group established by the President under section 443 to administer distributions from the International Clean Technology Account. (7)

International clean technology account

The term International Clean Technology Account means the account to which the Administrator allocates allowances under section 782(o) of the Clean Air Act. (8)

Least developed country

The term least developed country means a foreign country the United Nations has identified as among the least developed of developing countries. (9)

Qualifying activity

The term qualifying activity means an activity that meets the criteria in section 445. (10)

Qualifying entity

The term qualifying entity means a national, regional, or local government in, or a nongovernmental organization or private entity located or operating in, an eligible country.

443.

Governance

(a)

Oversight

The Secretary of State, or such other Federal agency head as the President may designate, in consultation with the interagency group established under subsection (b), shall oversee distributions of allowances from the International Clean Technology Account. (b)

Interagency Group

The President shall establish an interagency group to administer the International Clean Technology Account. The Members of the interagency group shall include— (1)the Secretary of State; (2)the Administrator of the Environmental Protection Agency; (3)the Secretary of Energy; (4)the Secretary of the Treasury; (5)the Secretary of Commerce; (6)the Administrator of the United States Agency for International Development; and (7)any other head of a Federal agency or executive branch appointee that the President may designate. (c)

Chairperson

The Secretary of State shall serve as the chairperson of the interagency group. (d)

Supplement Not Supplant

Allowances distributed from the International Clean Technology Account shall be used to supplement, and not to supplant, any other Federal, State, or local resources available to carry out activities that are qualifying activities under this subtitle.

444.

Determination of eligible countries

(a)

In General

The interagency group shall determine a country to be an eligible country for the purposes of this subtitle if a country meets the following criteria: (1)The country is a developing country that— (A)has entered into an international agreement to which the United States is a party, under which such country agrees to take actions to produce measurable, reportable, and verifiable greenhouse gas emissions mitigation; or (B)is determined by the interagency group to have in force national policies and measures that are capable of producing measurable, reportable, and verifiable greenhouse gas emissions mitigation. (2)The country has developed a nationally appropriate mitigation strategy that seeks to achieve substantial reductions, sequestration, or avoidance of greenhouse gas emissions, relative to business-as-usual levels. (3)Subject to subsection (b)(1), such other criteria as the President determines will serve the purposes of this subtitle or other United States national security, foreign policy, environmental, or economic objectives including robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and in applicable intellectual property provisions of bilateral trade agreements. (b)

Exceptions

(1)Subsection (a)(3) applies only to bilateral assistance under section 446(c)(4). (2)The eligibility criteria in this section do not apply in the case of least developed countries receiving assistance under section 445(7) for the purpose of building capacity to meet such eligibility criteria.

445.

Qualifying activities

Assistance under this subtitle may be provided only to qualifying entities for clean technology activities (including building relevant technical and institutional capacity) that contribute to substantial, measurable, reportable, and verifiable reductions, sequestration, or avoidance of greenhouse gas emissions including— (1)deployment of technologies to capture and sequester carbon dioxide emissions from electric generating units or large industrial sources (except that assistance under this subtitle for such deployment shall be limited to the cost of retrofitting existing facilities with such technologies or the incremental cost of purchasing and installing such technologies at new facilities); (2)deployment of renewable electricity generation from wind, solar, sustainably produced biomass, geothermal, marine, or hydrokinetic sources; (3)substantial increases in the efficiency of electricity transmission, distribution, and consumption; (4)deployment of low- or zero emissions technologies that are facing financial or other barriers to their widespread deployment which could be addressed through support under this subtitle in order to reduce, sequester, or avoid emission; (5)reduction in transportation sector emissions through increased transportation system and vehicle efficiency or use of transportation fuels that have lifecycle greenhouse gas emissions that are substantially lower than those attributable to fossil fuel-based alternatives; (6)reduction in black carbon emissions; or (7)capacity building activities, including— (A)developing and implementing methodologies and programs for measuring and quantifying greenhouse gas emissions and verifying emissions mitigation; (B)assessing, developing, and implementing technology and policy options for greenhouse gas emissions mitigation and avoidance of future emissions, including sector and cross-sector mitigation strategies; and (C)providing other forms of technical assistance to facilitate the qualification for, and receipt of, assistance under this Act.

446.

Assistance

(a)

In General

The Secretary of State, or such other Federal agency head as the President may designate, is authorized to provide assistance, through the distribution of allowances, from the International Clean Technology Account for qualifying activities that take place in eligible countries. (b)

Annual Reports

Not later than March 1, 2012, and annually thereafter, the President shall submit to the appropriate congressional committees a report on the assistance provided under this subtitle during the prior fiscal year. Such report shall include— (1)a description of the amount and value of allowances distributed during the prior fiscal year; (2)a description of each activity that received assistance during the prior fiscal year, and a description of the anticipated and actual outcomes; (3)an assessment of any adverse effects to human health, safety, or welfare, the environment, or natural resources as a result of activities supported under this subtitle; (4)an assessment of the success of the assistance provided under this subtitle to improving the technical and institutional capacity to implement substantial emissions reductions; (5)an estimate of the greenhouse gas emissions reductions, sequestration, or avoidance achieved by assistance provided under this subtitle during the prior fiscal year; and (6)an assessment whether any funds expended for the benefit of any qualifying activity undermined the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and applicable intellectual property provisions of bilateral trade agreements. (c)

Distribution of Allowances

(1)

In general

The Secretary of State, or such other Federal agency head as the President may designate, after consultation with the interagency group, shall distribute allowances from the International Clean Technology Account— (A)in the form of bilateral assistance in accordance with paragraph (4); (B)to multilateral funds or institutions pursuant to the Convention or an agreement negotiated under the Convention; or (C)through some combination of the mechanisms identified in subparagraphs (A) and (B). (2)

Global environment facility

For any allowances provided to the Global Environment Facility pursuant to paragraph (1)(B), the President shall designate the Secretary of the Treasury to distribute those allowances to the Global Environment Facility. (3)

Distribution through international fund or institution

If allowances are distributed to a multilateral fund or institution, as authorized in paragraph (1), the Secretary of State, or such other Federal agency head as the President may designate, shall seek to ensure the establishment and implementation of adequate mechanisms to— (A)apply and enforce the criteria for determination of eligible countries and qualifying activities under sections 444 and 445, respectively; (B)require public reporting describing the process and methodology for selecting the ultimate recipients of assistance and a description of each activity that received assistance, including the amount of obligations and expenditures for assistance; and (C)require that no funds be expended for the benefit of any qualifying activity where that activity or any activity relating to a qualifying activity under section 445 undermines the robust compliance with and enforcement of existing legal requirements for the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)). (4)

Bilateral assistance

(A)

In general

Bilateral assistance under paragraph (1) shall be carried out by the Administrator of the United States Agency for International Development, in consultation with the interagency group. (B)

Limitations

Not more than 15 percent of allowances made available to carry out bilateral assistance under this subtitle in any year shall be distributed to support activities in any single country. (C)

Selection criteria

Not later than 2 years after the date of enactment of this subtitle, the Administrator of the United States Agency for International Development, after consultation with the interagency group, shall develop and publish a set of criteria to be used in evaluating activities within eligible countries for bilateral assistance under this subtitle. (D)

Criteria requirements

The criteria under subparagraph (C) shall require that— (i)the activity is a qualifying activity; (ii)the activity will be conducted as part of an eligible country’s nationally appropriate mitigation strategy or as part of an eligible country’s actions towards providing a nationally appropriate mitigation strategy to reduce, sequester, or avoid emissions being implemented by the eligible country; (iii)the activity will not have adverse effects on human health, safety, or welfare, the environment, or natural resources; (iv)any technologies deployed through bilateral assistance under this subtitle will be properly implemented and maintained; (v)the activity will not cause any net loss of United States jobs or displacement of United States production; (vi)costs of the activity will be shared by the host country government, private sector parties, or a multinational development bank, except that this clause does not apply to least developed countries; (vii)the activity would not undermine the protection of intellectual property rights for clean technology, as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)) and applicable intellectual property provisions of bilateral trade agreements; and (viii)the activity meets such other requirements as the interagency group determines appropriate to further the purposes of this subtitle. (E)

Criteria preferences

The criteria under subparagraph (C) shall give preference to activities that— (i)promise to achieve large-scale greenhouse gas reductions, sequestration, or avoidance at a national, sectoral or cross-sectoral level; (ii)have the potential to catalyze a shift within the host country towards widespread deployment of low- or zero-carbon energy technologies; (iii)build technical and institutional capacity and other activities that are unlikely to be attractive to private sector funding; or (iv)maximize opportunities to leverage other sources of assistance and catalyze private-sector investment. (d)

Monitoring, Evaluation, and Enforcement

The Secretary of State, or such other Federal agency head as the President may designate, in consultation with the interagency group, shall establish and implement a system to monitor and evaluate the performance of activities receiving assistance under this subtitle. The Secretary of State, or such other Federal agency head as the President may designate, shall have the authority to suspend or terminate assistance in whole or in part for an activity if it is determined that the activity is not operating in compliance with the approved proposal. (e)

Coordination With U.S. Foreign Assistance

Subject to the direction of the President, the Secretary of State shall, to the extent practicable, seek to align activities under this section with broader development, poverty alleviation, or natural resource management objectives and initiatives in the recipient country. (f)

Definition

For the purposes of this section the term clean technology means any technology or service related to the qualifying activities identified in section 445.

E

Adapting to Climate Change

1

Domestic Adaptation

A

National Climate Change Adaptation Program

451.

Global change research and data management

(a)

Short title

This section may be cited as the Global Change Research and Data Management Act of 2009. (b)

Global change research

(1)

Purpose

The purpose of this subsection is to provide for the continuation and coordination of a comprehensive and integrated United States observation, research, and outreach program which will assist the Nation and the world to understand, assess, predict, and respond to the effects of human-induced and natural processes of global change. (2)

Definitions

For purposes of this subsection— (A)the term global change means human-induced or natural changes in the global environment (including alterations in climate, land productivity, oceans or other water resources, atmospheric chemistry, biodiversity, and ecological systems) that may alter the capacity of the Earth to sustain life; (B)the term global change research means study, monitoring, assessment, prediction, and information management activities to describe and understand— (i)the interactive physical, chemical, and biological processes that regulate the total Earth system; (ii)the unique environment that the Earth provides for life; (iii)changes that are occurring in the Earth system; and (iv)the manner in which such system, environment, and changes are influenced by human actions; (C)the term interagency committee means the interagency committee established under paragraph (3); (D)the term Plan means the National Global Change Research and Assessment Plan developed under paragraph (5); (E)the term Program means the United States Global Change Research Program established under paragraph (4); and (F)the term regional climate change means the natural or human-induced changes manifested in the local or regional environment (including alterations in weather patterns, land productivity, water resources, sea level rise, atmospheric chemistry, biodiversity, and ecological systems) that may alter the capacity of a specific region to support current or future social and economic activity or natural ecosystems. (3)

Interagency cooperation and coordination

(A)

Establishment

The President shall establish or designate an interagency committee to ensure cooperation and coordination of all Federal research activities pertaining to processes of global change for the purpose of increasing the overall effectiveness and productivity of Federal global change research efforts. The interagency committee shall include research and program representatives of agencies conducting global change research, agencies with authority over resources likely to be affected by global change, and agencies with authority to mitigate human-induced global change. (B)

Functions of the Interagency Committee

The interagency committee shall— (i)serve as the forum for developing the Plan and for overseeing its implementation; (ii)serve as the forum for developing the vulnerability assessment under paragraph (7); (iii)ensure cooperation among Federal agencies with respect to global change research activities; (iv)work with academic, State, industry, and other groups conducting global change research, to provide for periodic public and peer review of the Program; (v)cooperate with the Secretary of State in— (I)providing representation at international meetings and conferences on global change research in which the United States participates; and (II)coordinating the Federal activities of the United States with programs of other nations and with international global change research activities; (vi)work with appropriate Federal, State, regional, and local authorities to ensure that the Program is designed to produce information needed to develop policies to mitigate human-induced global change and to reduce the vulnerability of the United States and other regions to global change; (vii)facilitate ongoing dialog and information exchange with regional, State, and local governments and other user communities; and (viii)identify additional decisionmaking groups that may use information generated through the Program. (4)

United States Global Change Research Program

(A)

Establishment

The President shall establish an interagency United States Global Change Research Program to improve understanding of global change, to respond to the information needs of communities and decisionmakers, and to provide periodic assessments of the vulnerability of the United States and other regions to global and regional climate change. The Program shall be implemented in accordance with the Plan. (B)

Lead agency

The lead agency for the United States Global Change Research Program shall be the Office of Science and Technology Policy. (C)

Interagency program activities

The Director of the Office of Science and Technology Policy, in consultation with the interagency committee, shall identify activities included in the Plan that involve participation by 2 or more agencies in the Program, and that do not fall within the current fiscal year budget allocations of those participating agencies, to fulfill the requirements of this section. The Director of the Office of Science and Technology Policy shall allocate funds to the agencies to conduct the identified interagency activities. Such activities may include— (i)development of scenarios for climate, land-cover change, population growth, and socioeconomic development; (ii)calibration and testing of alternative regional and global climate models; (iii)identification of economic sectors and regional climatic zones; and (iv)convening regional workshops to facilitate information exchange and involvement of regional, State, and local decisionmakers, non-Federal experts, and other stakeholder groups in the activities of the Program. (D)

Workshops

The Director shall ensure that at least one workshop is held per year in each region identified by the Plan under paragraph (5)(B)(xi) to facilitate information exchange and outreach to regional, State, and local stakeholders as required by this section. (E)

Authorization of appropriations

There are authorized to be appropriated to the Office of Science and Technology Policy for carrying out this paragraph $10,000,000 for each of the fiscal years 2009 through 2014. (5)

National Global Change Research and Assessment Plan

(A)

In General

The President shall develop a National Global Change Research and Assessment Plan for implementation of the Program. The Plan shall contain recommendations for global change research and assessment. The President shall submit an outline for the development of the Plan to the Congress within 1 year after the date of enactment of this Act, and shall submit a completed Plan to the Congress within 3 years after the date of enactment of this Act. Revised Plans shall be submitted to the Congress at least once every 5 years thereafter. In the development of each Plan, the President shall conduct a formal assessment process under this paragraph to determine the needs of appropriate Federal, State, regional, and local authorities and other interested parties regarding the types of information needed by them in developing policies to mitigate human-induced global change and to reduce society’s vulnerability to global change and shall utilize these assessments, including the reviews by the National Academy of Sciences and the National Governors Association under subparagraphs (E) and (F), in developing the Plan. (B)

Contents of the Plan

The Plan shall— (i)establish, for the 10-year period beginning in the year the Plan is submitted, the goals and priorities for Federal global change research which most effectively advance scientific understanding of global change and provide information of use to Federal, State, regional, and local authorities in the development of policies relating to global change; (ii)describe specific activities, including efforts to determine user information needs, research activities, data collection, database development, and data analysis requirements, development of regional scenarios, assessment of model predictability, assessment of climate change impacts, participation in international research efforts, and information management, required to achieve such goals and priorities; (iii)identify relevant programs and activities of the Federal agencies that contribute to the Program directly and indirectly; (iv)set forth the role of each Federal agency in implementing the Plan; (v)consider and utilize, as appropriate, reports and studies conducted by Federal agencies, the National Research Council, or other entities; (vi)make recommendations for the coordination of the global change research and assessment activities of the United States with such activities of other nations and international organizations, including— (I)a description of the extent and nature of international cooperative activities; (II)bilateral and multilateral efforts to provide worldwide access to scientific data and information; and (III)improving participation by developing nations in international global change research and environmental data collection; (vii)detail budget requirements for Federal global change research and assessment activities to be conducted under the Plan; (viii)catalog the type of information identified by appropriate Federal, State, regional, and local decisionmakers needed to develop policies to reduce society’s vulnerability to global change and indicate how the planned research will meet these decisionmakers’ information needs; (ix)identify the observing systems currently employed in collecting data relevant to global and regional climate change research and prioritize additional observation systems that may be needed to ensure adequate data collection and monitoring of global change; (x)describe specific activities designed to facilitate outreach and data and information exchange with regional, State, and local governments and other user communities; and (xi)identify and describe regions of the United States that are likely to experience similar impacts of global change or are likely to share similar vulnerabilities to global change. (C)

Research Elements

The Plan shall include at a minimum the following research elements: (i)Global measurements, establishing worldwide to regional scale observations prioritized to understand global change and to meet the information needs of decisionmakers on all relevant spatial and time scales. (ii)Information on economic, demographic, and technological trends that contribute to changes in the Earth system and that influence society’s vulnerability to global and regional climate change. (iii)Development of indicators and baseline databases to document global change, including changes in species distribution and behavior, extent of glaciations, and changes in sea level. (iv)Studies of historical changes in the Earth system, using evidence from the geological and fossil record. (v)Assessments of predictability using quantitative models of the Earth system to simulate global and regional environmental processes and trends. (vi)Focused research initiatives to understand the nature of and interaction among physical, chemical, biological, land use, and social processes related to global and regional climate change. (vii)Focused research initiatives to determine and then meet the information needs of appropriate Federal, State, and regional decisionmakers. (D)

Information Management

The Plan shall incorporate, to the extent practicable, the recommendations relating to data acquisition, management, integration, and archiving made by the interagency climate and other global change data management working group established under subsection (c)(3). (E)

National Academy of Sciences Evaluation

The President shall enter into an agreement with the National Academy of Sciences under which the Academy shall— (i)evaluate the scientific content of the Plan; and (ii)recommend priorities for future global and regional climate change research and assessment. (F)

National Governors Association Evaluation

The President shall enter into an agreement with the National Governors Association Center for Best Practices under which that Center shall— (i)evaluate the utility to State, local, and regional decisionmakers of each Plan and of the anticipated and actual information outputs of the Program for development of State, local, and regional policies to reduce vulnerability to global change; and (ii)recommend priorities for future global and regional climate change research and assessment. (G)

Public Participation

In developing the Plan, the President shall consult with representatives of academic, State, industry, and environmental groups. Not later than 90 days before the President submits the Plan, or any revision thereof, to the Congress, a summary of the proposed Plan shall be published in the Federal Register for a public comment period of not less than 60 days. (6)

Budget coordination

(A)

In General

The President shall provide general guidance to each Federal agency participating in the Program with respect to the preparation of requests for appropriations for activities related to the Program. (B)

Consideration in President’s Budget

The President shall submit, at the time of his annual budget request to Congress, a description of those items in each agency’s annual budget which are elements of the Program. (7)

Vulnerability assessment

(A)

Requirement

Within 1 year after the date of enactment of this Act, and at least once every 5 years thereafter, the President shall submit to the Congress an assessment which— (i)integrates, evaluates, and interprets the findings of the Program and discusses the scientific uncertainties associated with such findings; (ii)analyzes current trends in global change, both human-induced and natural, and projects major trends for the subsequent 25 to 100 years; (iii)based on indicators and baselines developed under paragraph (5)(C)(iii), as well as other measurements, analyzes changes to the natural environment, land and water resources, and biological diversity in— (I)major geographic regions of the United States; and (II)other continents; (iv)analyzes the effects of global change, including the changes described in clause (iii), on food and fiber production, energy production and use, transportation, human health and welfare, water availability and coastal infrastructure, and human social and economic systems, including providing information about the differential impacts on specific geographic regions within the United States, on people of different income levels within those regions, and for rural and urban areas within those regions; and (v)summarizes the vulnerability of different geographic regions of the world to global change and analyzes the implications of global change for the United States, including international assistance, population displacement, food and resource availability, and national security. (B)

Use of related reports

To the extent appropriate, the assessment produced pursuant to this paragraph may coordinate with, consider, incorporate, or otherwise make use of related reports, assessments, or information produced by the United States Global Change Research Program, regional, State, and local entities, and international organizations, including the World Meteorological Organization and the Intergovernmental Panel on Climate Change. (8)

Policy assessment

Not later than 1 year after the date of enactment of this Act, and at least once every 4 years thereafter, the President shall enter into a joint agreement with the National Academy of Public Administration and the National Academy of Sciences under which the Academies shall— (A)document current policy options being implemented by Federal, State, and local governments to mitigate or adapt to the effects of global and regional climate change; (B)evaluate the realized and anticipated effectiveness of those current policy options in meeting mitigation and adaptation goals; (C)identify and evaluate a range of additional policy options and infrastructure for mitigating or adapting to the effects of global and regional climate change; (D)analyze the adoption rates of policies and technologies available to reduce the vulnerability of society to global change with an evaluation of the market and policy obstacles to their adoption in the United States; and (E)evaluate the distribution of economic costs and benefits of these policy options across different United States economic sectors. (9)

Annual report

Each year at the time of submission to the Congress of the President’s budget request, the President shall submit to the Congress a report on the activities conducted pursuant to this subsection, including— (A)a description of the activities of the Program during the past fiscal year; (B)a description of the activities planned in the next fiscal year toward achieving the goals of the Plan; and (C)a description of the groups or categories of State, local, and regional decisionmakers identified as potential users of the information generated through the Program and a description of the activities used to facilitate consultations with and outreach to these groups, coordinated through the work of the interagency committee. (10)

Relation to other authorities

The President shall— (A)ensure that relevant research, assessment, and outreach activities of the National Climate Program, established by the National Climate Program Act (15 U.S.C. 2901 et seq.), are considered in developing national global and regional climate change research and assessment efforts; and (B)facilitate ongoing dialog and information exchange with regional, State, and local governments and other user communities through programs authorized in the National Climate Program Act (15 U.S.C. 2901 et seq.). (11)

Repeal

The Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.) is amended by striking titles I and III thereof. (12)

Global change research information

The President shall establish or designate a Global Change Research Information Exchange to make scientific research and other information produced through or utilized by the Program which would be useful in preventing, mitigating, or adapting to the effects of global change accessible through electronic means. (13)

Ice sheet study and report

(A)

Study

(i)

Requirement

The Director of the National Science Foundation and the Administrator of National Oceanic and Atmospheric Administration shall enter into an arrangement with the National Academy of Sciences to complete a study of the current status of ice sheet melt, as caused by climate change, with implications for global sea level rise. (ii)

Contents

The study shall take into consideration— (I)the past research completed related to ice sheet melt as reviewed by Working Group I of the Intergovernmental Panel on Climate Change; (II)additional research completed since the fall of 2005 that was not included in the Working Group I report due to time constraints; and (III)the need for an accurate assessment of changes in ice sheet spreading, changes in ice sheet flow, self-lubrication, the corresponding effect on ice sheets, and current modeling capabilities. (B)

Report

Not later than 18 months after the date of enactment of this Act, the National Academy of Sciences shall transmit to the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the key findings of the study conducted under subparagraph (A), along with recommendations for additional research related to ice sheet melt and corresponding sea level rise. (14)

Hurricane frequency and intensity study and report

(A)

Study

(i)

Requirement

The Administrator of the National Oceanic and Atmospheric Administration and the Director of the National Science Foundation shall enter into an arrangement with the National Academy of Sciences to complete a study of the current state of the science on the potential impacts of climate change on patterns of hurricane and typhoon development, including storm intensity, track, and frequency, and the implications for hurricane-prone and typhoon-prone coastal regions. (ii)

Contents

The study shall take into consideration— (I)the past research completed related to hurricane and typhoon development, track, and intensity as reviewed by Working Groups I and II of the Intergovernmental Panel on Climate Change; (II)additional research completed since the fall of 2005 that was not included in the Working Group I and II reports due to time constraints; (III)the need for accurate assessment of potential changes in hurricane and typhoon intensity, track, and frequency and of the current modeling and forecasting capabilities and the need for improvements in forecasting of these parameters; and (IV)the need for additional research and monitoring to improve forecasting of hurricanes and typhoons and to understand the relationship between climate change and hurricane and typhoon development. (B)

Report

Not later than 18 months after the date of enactment of this Act, the National Academy of Sciences shall transmit to the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the key findings of the study conducted under subparagraph (A). (c)

Climate and other global change data management

(1)

Purposes

The purposes of this subsection are to establish climate and other global change data management and archiving as Federal agency missions, and to establish Federal policies for managing and archiving climate and other global change data. (2)

Definitions

For purposes of this subsection— (A)the term metadata means information describing the content, quality, condition, and other characteristics of climate and other global change data, compiled, to the maximum extent possible, consistent with the requirements of the Content Standard for Digital Geospatial Metadata (FGDC–STD–001–1998) issued by the Federal Geographic Data Committee, or any successor standard approved by the working group; and (B)the term working group means the interagency climate and other global change data management working group established under paragraph (3). (3)

Interagency climate and other global change data management working group

(A)

Establishment

The President shall establish or designate an interagency climate and other global change data management working group to make recommendations for coordinating Federal climate and other global change data management and archiving activities. (B)

Membership

The working group shall include the Administrator of the National Aeronautics and Space Administration, the Administrator of the National Oceanic and Atmospheric Administration, the Secretary of Energy, the Secretary of Defense, the Director of the National Science Foundation, the Director of the United States Geological Survey, the Archivist of the United States, the Administrator of the Environmental Protection Agency, the Secretary of the Smithsonian Institution, or their designees, and representatives of any other Federal agencies the President considers appropriate. (C)

Reports

Not later than 1 year after the date of enactment of this Act, the working group shall transmit a report to the Congress containing the elements described in subparagraph (D). Not later than 4 years after the initial report under this subparagraph, and at least once every 4 years thereafter, the working group shall transmit reports updating the previous report. In preparing reports under this subparagraph, the working group shall consult with expected users of the data collected and archived by the Program. (D)

Contents

The reports and updates required under subparagraph (C) shall— (i)include recommendations for the establishment, maintenance, and accessibility of a catalog identifying all available climate and other global change data sets; (ii)identify climate and other global change data collections in danger of being lost and recommend actions to prevent such loss; (iii)identify gaps in climate and other global change data and recommend actions to fill those gaps; (iv)identify effective and compatible procedures for climate and other global change data collection, management, and retention and make recommendations for ensuring their use by Federal agencies and other appropriate entities; (v)develop and propose a coordinated strategy for funding and allocating responsibilities among Federal agencies for climate and other global change data collection, management, and retention; (vi)make recommendations for ensuring that particular attention is paid to the collection, management, and archiving of metadata; (vii)make recommendations for ensuring a unified and coordinated Federal capital investment strategy with respect to climate and other global change data collection, management, and archiving; (viii)evaluate the data record from each observing system and make recommendations to ensure that delivered data are free from time-dependent biases and random errors before they are transferred to long-term archives; and (ix)evaluate optimal design of observation system components to ensure a cost-effective, adequate set of observations detecting and tracking global change.

452.

National Climate Service

(a)

Short title

This section may be cited as the National Climate Service Act of 2009. (b)

Purpose

The purpose of this section is to establish a National Climate Service and to define the activities to be undertaken within the National Oceanic and Atmospheric Administration to— (1)advance understanding of climate variability and change at the global, national, regional, and local levels; (2)provide forecasts, warnings, and other information to the public on variability and change in weather and climate that affect geographic areas, natural resources, infrastructure, economic sectors, and communities; and (3)support development of adaptation and response plans by Federal agencies, State, local, and tribal governments, the private sector, and the public. (c)

Definitions

In this section: (1)

Advisory Committee

The term Advisory Committee means the Climate Service Advisory Committee established under subsection (f). (2)

Director

The term Director means the Director of the Climate Service Office. (3)

Representative

The term representative means an individual who is not a full-time or part-time employee of the Federal Government and who is appointed to an advisory committee to represent the views of an entity or entities outside the Federal Government. (4)

Special Government Employee

The term Special Government Employee has the same meaning as in section 202(a) of title 18, United States Code. (5)

Under secretary

The term Under Secretary means the Under Secretary of Commerce for Oceans and Atmosphere. (d)

Interagency development of a National Climate Service

(1)

In general

The President shall— (A)initiate a process within 30 days after the date of enactment of this Act through the Committee on Environment and Natural Resources of the National Science and Technology Council and led by the Director of the Office of Science and Technology Policy, to evaluate alternative structures to support a collaborative, interagency research and operational program that will achieve the goal of meeting the needs of decisionmakers in— (i)Federal agencies; (ii)State, local, and tribal governments; (iii)regional entities and other stakeholders and users, for reliable, timely, and relevant information related to climate variability and change; (B)within 1 year after the date of enactment of this Act complete pursuant to paragraph (2) a survey of the needs of current and future users of information related to climate variability and change; (C)within 2 years after the date of enactment of this Act report to Congress under paragraph (3) the results of the evaluation described in subparagraph (A) and provide a plan to establish a collaborative, interagency research and operational program to deliver information related to climate variability and change to all users; and (D)within 3 years after the date of enactment of this Act, and after delivery of the report to Congress required under subparagraph (C), establish a National Climate Service, based upon the information obtained through the process described in subparagraph (A), that meets the goal described in subparagraph (A). (2)

Survey of need for climate services

(A)

In general

The Director of the Office of Science and Technology Policy, through the Committee on Environment and Natural Resources, shall provide a report to Congress within 1 year after the date of enactment of this Act that compiles information on the current climate products being delivered by each Federal agency and its partner organizations to users and stakeholders, and on the needs of users and stakeholders for new climate products and services. (B)

Contents of the report

The report shall identify— (i)specific user groups and stakeholders that currently are served by each Federal agency and its partner organizations; (ii)the type of climate products and services currently delivered to specific users groups and stakeholders, and the specific Federal agency office, program, or partner organization that delivers these products and services; (iii)potential user groups and stakeholders that may be served by expanding climate products and services; (iv)specific needs for new climate products and services to be delivered by each Federal agency and its partner organizations identified by user groups and stakeholders; (v)a characterization of the different user and stakeholder groups that were surveyed by each Federal agency; and (vi)a list of non-Federal entities that deliver climate products and services. (3)

Report to congress

(A)

In general

Within 2 years after the date of enactment of this Act, the Director of the Office of Science and Technology Policy shall report to the President and the Congress on a proposal, prepared through the Committee on Environment and Natural Resources, to establish and operate a National Climate Service. The report shall include— (i)a description of the alternative structures considered; (ii)a description of the structure proposed for a National Climate Service, including a discussion of the benefits of this structure as compared to the alternatives considered; (iii)designation of a specific office or agency that will lead the National Climate Service and that shall be accountable for the daily operation of the National Climate Service; (iv)a description of the role and capability of each Federal agency, including a list of all entities within each agency or supported with agency funds that currently provide or may provide climate products or services; (v)a description of the mechanisms that will be used to ensure ongoing communication and information exchange among the Federal agencies and between Federal agencies and their respective user and stakeholder communities including— (I)mechanisms to facilitate ongoing dialogue with non-Federal organizations providing climate services; (II)mechanisms to facilitate ongoing dialogue with regional, State, local, and tribal governments, the private sector, and other users and stakeholders on the development and delivery of climate services; (III)mechanisms to collect information, observations, and other data relevant for improving climate products and services; and (IV)designation of points of contact for each Federal agency with responsibilities to deliver climate services; (vi)a detailed description of the processes and procedures that will be necessary to coordinate observations and information collection by different Federal agencies to ensure the compatibility of information and to facilitate data and information exchange among Federal agencies and with non-Federal entities, and a designation of the agency or agencies that would be responsible for ongoing oversight of these functions; (vii)a detailed description of how research findings and climate impact assessments produced through the United States Global Change Research Program and the other activities undertaken within the United States Global Change Research Program would be integrated with the activities undertaken by a National Climate Service; (viii)a list of the existing observation and monitoring systems or programs operated by each Federal agency that provide data, observations, and other information that may be used to develop or improve climate products and services; (ix)a description of new infrastructure, equipment, personnel or other resources, by agency, that may be needed to achieve the goals of a National Climate Service, and the time period over which these new resources will be allocated; (x)an identification of the activities that may be undertaken in cooperation with international partners; (xi)the mechanisms established to provide quality assurance and quality control of climate service products and services, and the agency or agencies designated to conduct and oversee these mechanisms; (xii)an identification of non-Federal entities that provide climate products and services, and a description of the relationship envisioned between a National Climate Service and the non-Federal entities providing climate services; and (xiii)responses to the comments received during the public comment period. (B)

Draft report

Prior to the submission of the final report, the Director of the Office of Science and Technology Policy shall publish a draft report in the Federal Register with a comment period of at least 30 days. (C)

Consultation

In developing the report, the Director of the Office of Science and Technology Policy shall consult with State, local, and tribal governments, regional entities, the private sector, and other users and stakeholder groups, and Congress. (4)

Annual report

The Director of the Office of Science and Technology Policy shall transmit to the Congress at the time of the President’s fiscal year 2013 budget request, and annually thereafter, a report on the annual anticipated cost of carrying out the research and operational activities of the National Climate Service, with a description of the budget for each Federal agency’s activities. (e)

Climate Service Program

(1)

In general

The Under Secretary, building upon the resources of the National Weather Service and other weather and climate programs in the National Oceanic and Atmospheric Administration, shall establish a Climate Service Program. (2)

Climate service office

The Under Secretary shall establish a Climate Service Office and shall appoint a Director of the Office to collaborate with the leadership of the National Oceanic and Atmospheric Administration line offices to perform the duties assigned to the Office. The Climate Service Office shall— (A)coordinate programs at the National Oceanic and Atmospheric Administration to ensure the timely production and distribution of data and information on global, national, regional, and local climate variability and change over all time scales relevant for planning and response, including intraseasonal, interannual, decadal, and multidecadal time periods; (B)ensure exchange of information between the research and operational offices at the National Oceanic and Atmospheric Administration to identify research needs for improving climate products and services and ensure the timely and orderly transition of research findings, improved technologies, models, and other tools to the National Oceanic and Atmospheric Administration’s operations; (C)ensure operational quality control of all Climate Service Program products including a transparent and open accounting of all the assumptions built into the global, national, regional, and local weather and climate computer models upon which such products are based; (D)ensure a continuous level of high-quality data collected through a national observation and monitoring infrastructure, including at a minimum performing regular maintenance and verification, and periodic upgrades; (E)serve as liaison to and exchange information with other Federal agencies that provide climate services in order to— (i)ensure the timely dissemination of data and information on weather and climate produced by the National Oceanic and Atmospheric Administration to other Federal agencies; (ii)ensure that data and information collected by other Federal agencies relevant to improving climate services are made available to the National Oceanic and Atmospheric Administration; (iii)facilitate the development and delivery of climate products and services to relevant stakeholders; and (iv)obtain information from other Federal agencies to improve the development and dissemination by the National Oceanic and Atmospheric Administration of information on weather and climate to other Federal agencies for the development of climate service products by those agencies; (F)ensure cooperation and collaboration, as appropriate, of the Climate Service Program with State, local, and tribal governments, regional entities, academic and nonprofit research organizations, and private sector entities, including weather information providers and other stakeholders; and (G)ensure exchange of data, information, and research with the United States Global Change Research Program to support the development of assessments required under the Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.). (3)

Climate Service Program

(A)

In general

The Under Secretary shall operate the Climate Service Program through a national center, the Climate Service Office, and a network of regional and local facilities, including the established regional and local offices of the National Weather Service, 6 Regional Climate Centers, the offices of the Regional Integrated Sciences and Assessments program, the National Integrated Drought Information System, and any other National Oceanic and Atmospheric Administration or National Oceanic and Atmospheric Administration-supported regional and local entities, as appropriate. (B)

Regional climate centers program

The Under Secretary shall maintain a network of 6 Regional Climate Centers to work cooperatively with the State Climate Offices to— (i)collect and exchange data and information needed to characterize, understand, and forecast regional and local weather and climate; (ii)facilitate collection and exchange of data and information between the States and Federal Government on weather and climate in conjunction with the National Climatic Data Center; (iii)support research and observations; (iv)obtain input on stakeholder needs for weather and climate information and products; and (v)support State and local adaptation and response planning. (C)

Regional Integrated Sciences and Assessments Program

The Under Secretary shall maintain a network of offices as part of the Regional Integrated Sciences and Assessments Program. Such offices shall engage in cooperative research, development, and demonstration projects with the academic community, State Climate Offices, Regional Climate Offices, and other users and stakeholders on climate products, technologies, models, and other tools to improve understanding and forecasting of regional and local climate variability and change and the effects on economic activities, natural resources, and water availability, and other effects on communities, to facilitate development of regional and local adaptation plans to respond to climate variability and change, and any other needed research identified by the Under Secretary or the Advisory Committee. (D)

Other offices

In carrying out the functions of the Climate Service Program, the Under Secretary shall utilize the assets and expertise of— (i)the National Weather Service to— (I)deliver operational weather and climate forecasts, warnings, products, and information through the Climate Service Programs Division, Local Weather Forecast Offices, Weather Service Offices, and River Forecast Centers; and (II)develop climate forecast models and tools through the National Centers for Environmental Prediction; (ii)the National Environmental Satellite, Data, and Information Service to provide data services and support for product development and operations through the National Climatic Data Center and the Regional Climate Centers; (iii)the Office of Oceanic and Atmospheric Research to— (I)provide research on product development; (II)improve weather and climate forecast models; (III)provide new technologies and methods of observation; and (IV)oversee the National Oceanic and Atmospheric Administration supported research performed by the Joint Cooperative Institutes, universities, and other non-Federal entities; (iv)the National Integrated Drought Information System to— (I)provide an effective drought warning system; (II)coordinate and integrate Federal research on droughts; (III)collect and integrate information on key indicators of drought; (IV)make usable, reliable, and timely forecasts and assessments of drought, including assessments of the severity of drought conditions and effects; (V)communicate drought forecasts, conditions, and effects to Federal, State, tribal, and local governments, regional entities, the private sector, and the public; and (VI)coordinate with State Climate Offices and RISA teams to assess management practices and technologies, and the effects of both, used for drought mitigation at the local, State, and regional levels; and (v)any other National Oceanic and Atmospheric Administration offices or programs, as appropriate. (E)

Mission

The Under Secretary shall ensure that the core functions and missions of the National Weather Service, the National Integrated Drought Information System, and any other programs within the National Oceanic and Atmospheric Administration are not diminished or neglected by the establishment of the Climate Service Program or the duties imposed on such offices or programs under this paragraph. (F)

Program elements

The Climate Service Program shall— (i)conduct analyses of and studies relating to the effects of weather and climate on communities, including effects on agricultural production, natural resources, energy supply and demand, recreation, and other sectors of the economy; (ii)carry out observations, data collection, and monitoring of atmospheric and oceanic conditions on a statewide, regional, national, and global basis; (iii)provide information and technical support for Federal, regional, State, tribal, and local government efforts to assess and respond to climate variability and change; (iv)develop systems for the management and dissemination of data, information, and assessments, including mechanisms for consultation with current and potential users and other stakeholders; (v)conduct research to improve forecasting, characterization, and understanding of weather and climate variability and change and its effects on communities, including its effects on agricultural production, natural resources, energy supply and demand, recreation, and other sectors of the economy; and (vi)develop tools to facilitate the use of climate information by local and regional stakeholders. (f)

Climate Service Advisory Committee

(1)

In general

The Under Secretary shall establish a Climate Service Advisory Committee to provide advice on— (A)climate service product development; (B)delivery of services to decisionmakers and other stakeholders; (C)infrastructure to support observations and monitoring; (D)computation and modeling needs, research needs, and other resources needed to develop, distribute, and ensure the utility of climate data, products, and services; and (E)any other topics as may be requested by the Under Secretary or Congress. (2)

Members

(A)

In general

The Advisory Committee shall be composed of at least 25 members appointed by the Under Secretary. Each member of the Advisory Committee shall be qualified either— (i)by education, training, and experience to evaluate scientific and technical information on matters referred to the Advisory Committee under this subsection; or (ii)to evaluate the utility and need for climate products by planners, decisionmakers, the private sector, and the public. (B)

Terms of service

Members shall be appointed for 3-year terms, renewable once, and shall serve at the discretion of the Under Secretary. Vacancy appointments shall be for the remainder of the unexpired term of the vacancy, and an individual so appointed may subsequently be appointed for 2 full 3-year terms if the remainder of the unexpired term is less than one year. (C)

Chairperson

The Under Secretary shall designate a chairperson from among the members of the Advisory Committee. The designated Chairperson shall alternate between a member who is appointed as a representative and a member who is appointed as a Special Government Employee. (D)

Subcommittees

(i)

Establishment

The Advisory Committee shall establish— (I)a Subcommittee on Science and Technology to advise the Climate Service Program on needed research, technology development, and additional observations, and on any other scientific or technical issues as appropriate; and (II)a Subcommittee on Product Development and Delivery composed primarily of representatives of the community of potential users of the products developed and delivered by the Climate Service Program.The Advisory Committee may establish such additional subcommittees of its members as may be necessary. (ii)

Appointment

(I)

Full Advisory Committee

At least 50 percent of the members of the Advisory Committee shall be appointed as Special Government Employees. (II)

Subcommittees

At least 75 percent of the members of the Subcommittee on Science and Technology shall be appointed as Special Government Employees. Not more than 25 percent of the members of the Subcommittee on Product Development and Delivery shall be appointed as Special Government Employees. (3)

Administrative provisions

(A)

Reporting

The Advisory Committee shall report to the Under Secretary and the appropriate requesting party. (B)

Administrative support

The Under Secretary shall provide administrative support to the Advisory Committee. (C)

Meetings

The Advisory Committee shall meet at least twice each year and at other times at the call of the Under Secretary or the Chairperson. (D)

Compensation and expenses

A member of the Advisory Committee shall not be compensated for service on the Advisory Committee, but may be allowed travel expenses, including per diem in lieu of subsistence, in accordance with subchapter I of chapter 57 of title 5, United States Code. (4)

Expiration

Section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Climate Service Advisory Committee. (g)

Repeal

The National Climate Program Act (15 U.S.C. 2901 et seq.) is repealed. (h)

Establishment of regional integrated sciences and assessments teams

(1)

In general

In maintaining the network of Regional Integrated Sciences and Assessments (RISA) Teams under subsection (e)(3)(C), the Under Secretary shall utilize a competitive, peer-reviewed selection process. Teams shall conduct applied regional climate research and projects to address the needs of local and regional decisionmakers for information and tools to develop adaptation and response plans to climate variability and change. The awards shall be administered through a cooperative agreement between the National Oceanic and Atmospheric Administration and the RISA Team. Each award shall be for a period of five years. (2)

RISA teams

Teams shall be composed of multi-institutional partnerships whose individual members may include— (A)institutions of higher education, as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); (B)minority serving institutions, as defined in section 371(a) of the Higher Education Act of 1965; and (C)nongovernmental research organizations, Federal agencies, State and local agencies, tribal organizations, and for-profit entities. (3)

Considerations

In making awards under this subsection, the Under Secretary shall consider— (A)the overall geographic distribution of RISA Teams and existing gaps in applied research to support local and regional decisionmakers; (B)the team’s ability to contribute to the National Oceanic and Atmospheric Administration’s efforts to deliver climate services in the region; and (C)the team’s proposal to integrate social and physical sciences research to address the effects of climate variability and change on the ecology, economy, infrastructure, and communities in the region. (i)

Survey of need for climate services

(1)

In general

The Under Secretary shall provide a report to Congress within 9 months after the date of enactment of this Act that compiles information on the current climate products being delivered by the National Oceanic and Atmospheric Administration and its partner organizations to users and stakeholders and on the needs of users and stakeholders for new climate products and services. (2)

Contents of report

The report shall identify— (A)specific user groups and stakeholders that currently are served by the National Oceanic and Atmospheric Administration and its partner organizations; (B)the type of climate products and services currently delivered to specific user groups and stakeholders and the specific National Oceanic and Atmospheric Administration office or partner organization that delivers these products and services; (C)potential user groups and stakeholders that may be served by expanding climate products and services; and (D)specific needs for new climate products and services identified by user groups and stakeholders. (3)

Consultation

The Under Secretary shall consult with the Climate Service Advisory Committee in the preparation of this report. (j)

Implementation plan

(1)

In general

The Under Secretary shall prepare a plan for creating a Climate Service Program in the National Oceanic and Atmospheric Administration and delivering climate products and services to the National Oceanic and Atmospheric Administration users and stakeholders. The plan shall be submitted to the President and the Congress within 1 year after the date of enactment of this Act. (2)

Draft plan

Prior to the submission of the final plan, the Under Secretary shall publish a draft plan in the Federal Register with a public comment period of at least 30 days. (3)

Contents

The plan shall— (A)identify the current gaps in climate services and outline the process and resources the National Oceanic and Atmospheric Administration will use to fill these gaps; (B)describe the roles of the National Oceanic and Atmospheric Administration line offices and the National Oceanic and Atmospheric Administration partner organizations in the development and delivery of climate products and services; (C)describe the development and implementation of quality assurance and control mechanisms for climate products and services delivered by the National Oceanic and Atmospheric Administration and its partner organizations; (D)identify the mechanisms and opportunities for determining user needs and engaging in a two-way dialogue with users that will inform climate product and service development and delivery of authoritative, timely, and useful information on climate variability and change and the effects on local, State, regional, national, and global scales; (E)identify new responsibilities or tasks to be undertaken by existing National Oceanic and Atmospheric Administration line offices and partner organizations; (F)identify new infrastructure, equipment, personnel, or other resources needed to implement the proposed plan; and (G)include responses to the comments received during the public comment period. (4)

Continuity of service

During the development of the implementation plan, the public comment period, and final plan, the National Oceanic and Atmospheric Administration shall continue to provide climate services to the user community. (5)

Consultation

In developing the plan, the Under Secretary shall consult with user groups and stakeholders, State Climate Offices, Regional Climate Centers, other Federal agencies, the Climate Service Advisory Committee, and Congress. (6)

Coordination with interagency development of a national climate service

In preparing the plan required under this subsection, the Under Secretary shall consult with the Director of the Office of Science and Technology Policy to ensure that the program developed by the Agency will serve the needs of a National Climate Service. (k)

Summer institutes program at the Regional Climate Centers

(1)

Definitions

In this subsection: (A)

Summer institute

The term summer institute means an institute, operated during the summer, that— (i)is hosted by a Regional Climate Center or an eligible partner; (ii)is operated for a period of not less than 2 weeks; and (iii)provides direct interaction of middle school and high school teacher and undergraduate student participants with personnel of the Regional Climate Centers or eligible partners who have scientific expertise in weather and climate. (B)

Eligible partner

The term eligible partner means— (i)the science, engineering, or mathematics department at an institution of higher education; or (ii)a nonprofit entity with expertise in providing educational enrichment experiences for students. (2)

Summer Institutes Program Authorized

(A)

In general

The Under Secretary shall establish a summer institutes program, to be conducted in cooperation with the Regional Climate Centers, which may include an eligible partner. The purpose of the program is to provide training and professional enrichment by providing opportunities for interaction between participants and climate scientists in a research and operational setting to— (i)enable middle school and high school teachers to integrate weather and climate sciences into their curricula: and (ii)encourage undergraduate students to pursue further study and careers in weather and climate sciences. (B)

Required activities

Funds authorized under this subsection shall be used for— (i)providing educational opportunities for middle school and high school teachers and undergraduate students not achievable inside the classroom; (ii)exposing such teachers and students to researchers, scientists, or engineers who can demonstrate their daily activities to the teachers and students; (iii)exposing teachers and students to scientific methods in a research discovery setting; and (iv)assisting teachers with curriculum development in the areas of weather and climate science. (3)

Priority

The Under Secretary shall ensure that each summer institute program authorized under paragraph (2) includes students from groups underrepresented in the fields of science, technology, engineering, and mathematics teaching, including women and members of minority groups. (4)

Report to Congress

The Under Secretary shall submit to Congress a biennial report on the activities conducted under this subsection, including the number of participants and the new curricula developed in atmospheric and climate sciences. (l)

Clearinghouse of Federal Climate Service products and links to Federal agencies providing climate services

(1)

In general

The Under Secretary shall establish and maintain a clearinghouse to inform State, local, and tribal governments and the public about the information and services available to— (A)assess the impacts of climate variability and change at different geographic scales; (B)characterize and forecast climate variability and change for specific regions, resources, and economic sectors; and (C)develop and implement adaptation strategies to reduce vulnerabilities to climate variability and change. (2)

Other resources

The clearinghouse shall include hyperlinks to Internet sites that describe the activities, information, and resources of— (A)the Federal Government; (B)State and local governments; (C)the private sector; (D)nongovernmental and nonprofit entities and organizations; and (E)international organizations. (m)

Financial burden

Nothing in this section shall be construed as authorizing the National Climate Service or the Climate Service Program at the National Oceanic and Atmospheric Administration to require State, tribal, or local governments to develop adaptation or response plans or to take any other action in response to variations in climate that may result in an increased financial burden to such governments.

453.

State programs to build resilience to climate change impacts

(a)

Definitions

For purposes of this section: (1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act). (2)

Indian tribe

The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). (3)

Vintage year

The term vintage year has the meaning given that term under section 700 of the Clean Air Act (as added by section 312 of this Act). (b)

Regulations; coordination

Not later than 2 years after the date of enactment of this Act, the Administrator, or such Federal agency head or heads as the President may designate, shall promulgate regulations to implement the requirements of this section. If the President designates more than 1 Federal agency to implement this section, the President shall require such agencies to establish a memorandum of understanding providing for coordination of rulemaking and other implementing activities, in accordance with the requirements of this section. (c)

Distribution of allowances

(1)

In general

Not later than September 30 of each of calendar years 2011 through 2049, the Administrator shall distribute, in accordance with this section, allowances allocated for the following vintage year pursuant to section 782(l) of the Clean Air Act (as added by section 321 of this Act). The Administrator shall reserve 1 percent of such allowances for distribution to Indian tribes in accordance with subsection (d). The remainder of such allowances shall be distributed ratably among the States based on the product of— (A)each State’s population; and (B)each State’s allocation factor as determined under paragraph (2). (2)

State allocation factors

(A)

In general

Except as provided in subparagraph (B), the allocation factor for a State shall be the quotient of— (i)the per capita income of all individuals in the United States, divided by (ii)the per capita income of all individuals in such State. (B)

Limitation

If the allocation factor for a State as calculated under subparagraph (A) would exceed 1.2, then the allocation factor for such State shall be 1.2. If the allocation factor for a State as calculated under subparagraph (A) would be less than 0.8, then the allocation factor for such State shall be 0.8. (C)

Per capita income

For purposes of this paragraph, per capita income shall be— (i)determined at 2-year intervals; and (ii)subject to subparagraph (D), equal to the average of the annual per capita incomes for the most recent period of 3 consecutive years for which satisfactory data are available from the Department of Commerce at the time such determination is made. (D)

Revenue directly resulting from a Presidentially declared major disaster

For purposes of this paragraph, per capita income from one or more of the following sources shall be reduced or excluded if the Secretary of Commerce (in consultation with the Administrator and the secretaries or administrators of the departments or agencies involved) determines that the income accrues to persons as the result of a Major Disaster (as declared by the President of the United States) and if the Secretary finds that the inclusion of one or more of these income sources, in whole or in part, results in a transitory, rather than a sustainable, increase in a State’s per capita income level relative to the national average: (i)Property and casualty insurance (including homeowners and renters insurance). (ii)The National Flood Insurance Program of the Federal Emergency Management Agency. (iii)The Individual and Family Grants Program of the Federal Emergency Management Agency. (iv)The Disaster Housing Program of the Federal Emergency Management Agency. (v)The Community Development Block Grant Program of the Department of Housing and Urban Development. (vi)The Disaster Unemployment Assistance Program of the Department of Labor. (vii)Any other source determined appropriate by the Administrator. (d)

Distribution to Indian tribes

The Administrator, or such Federal agency head or heads as the President may designate, shall promulgate regulations establishing a program to distribute allowances on a competitive basis to Indian tribes, in accordance with the requirements of this section. Such allowances shall be used exclusively in accordance with the requirements of subsection (e). Beginning with vintage year 2015, Indian tribes with a tribal adaptation plan approved pursuant to subsection (f) shall be given priority in selection of programs or projects for receipt of emission allowances under this subsection. (e)

Use of allowances

(1)

In general

States and Indian tribes shall use allowances distributed under this section exclusively for the implementation of projects, programs, or measures to build resilience to the impacts of climate change, including— (A)extreme weather events such as flooding and tropical cyclones; (B)more frequent heavy precipitation events; (C)water scarcity and adverse impacts on water quality; (D)stronger and longer heat waves; (E)more frequent and severe droughts; (F)rises in sea level; (G)ecosystem disruption; (H)increased air pollution; and (I)effects on public health. (2)

Priority in projects to reduce flood events

When implementing any project, program, or measure supported under this section and designed to reduce flood events, a State or Indian tribe should consider prioritizing projects that seek to— (A)mitigate the destructive impacts of climate-related increases in the duration, frequency, or magnitude of rainfall or runoff, including snowmelt runoff, as well as hurricanes; (B)improve flood protection for densely populated urban areas; and (C)mitigate the destructive impact of ocean-related climate change effects, including effects on bays, estuaries, populated barrier islands and other ocean-related features, through a variety of means and measures, including the construction of jetties, levies, and other coastal structures in densely populated coastal areas impacted by climate change. (3)

State and Tribal adaptation plans

Upon approval of a State or tribal climate adaptation plan under subsection (f), allowances received by a State under this section shall be used in accordance with such plan. (4)

Supplement, not supplant

It is the intent of the Congress that allowances distributed to carry out this section should be used to supplement, and not replace, existing sources of funding used to build resilience to the impacts of climate change identified in paragraph (1). (f)

State and Tribal climate adaptation plans

(1)

In general

The regulations promulgated pursuant to subsection (b) shall include requirements for submission and approval of State or tribal climate adaptation plans under this section. Beginning with vintage year 2015, distribution of allowances to a State pursuant to this section shall be contingent on approval of a State climate adaptation plan for such State that meets the requirements of such regulations. Requirements for tribal climate adaptation plans may vary from those of State adaptation plans to the extent necessary to account for the special circumstances of Indian tribes. (2)

Requirements

Regulations promulgated under this section shall require, at minimum, that State and tribal climate adaptation plans— (A) assess and prioritize the State’s or Indian tribe’s vulnerability to a broad range of impacts of climate change, based on the best available science; (B)include an assessment of potential for carbon reduction through changes to land management policies (including enhancement or protection of forest carbon sinks); (C) identify and prioritize specific cost-effective projects, programs, and measures to build resilience to current and predicted impacts of climate change; (D)ensure that the State or Indian tribe fully considers and undertakes, to the maximum extent practicable, initiatives that— (i)protect or enhance natural ecosystem functions, including protection, maintenance, or restoration of natural infrastructure such as wetlands, reefs, and barrier islands to buffer communities from floodwaters or storms, watershed protection to maintain water quality and groundwater recharge, or floodplain restoration to improve natural flood control capacity; or (ii)use non-structural approaches including practices that utilize, enhance, or mimic the natural hydrologic cycle processes of infiltration, evapotranspiration, and reuse; (E)be revised and resubmitted for approval not less frequently than every 5 years; and (F)be consistent with Federal conservation and environmental laws and, to the maximum extent practicable, avoid environmental degradation. (3)

Coordination with prior planning efforts

In implementing this subsection, the Administrator, or such Federal agency head or heads as the President may designate, shall— (A)draw upon lessons learned and best practices from preexisting State and tribal climate adaptation planning efforts; (B)seek to avoid duplication of such efforts; and (C)ensure that the plans developed under this section reflect and are fully consistent with State natural resources adaptation plans developed under section 479 of this Act. (g)

Reporting

Each State or Indian tribe receiving allowances under this section shall submit to the Administrator, or such Federal agency head or heads as the President may designate, within 12 months after each receipt of such allowances and once every 2 years thereafter until the value of any allowances received under this section has been fully expended, a report that— (1)provides a full accounting for the State’s or Indian tribe’s use of allowances distributed under this section, including a description of the projects, programs, or measures supported using such allowances; (2)includes a report prepared by an independent third party, in accordance with such regulations as are promulgated by the Administrator or such other Federal agency head or heads as the President may designate, evaluating the performance of the projects, programs, or measures supported under this section; and (3)identifies any use by the State or Indian tribe of allowances distributed under this section for the reduction of flood and storm damage and the effects of climate change on water and flood protection infrastructure. (h)

Enforcement

If the Administrator, or such Federal agency head or heads as the President may designate, determines that a State or Indian tribe is not in compliance with this section, the Administrator or such other agency head may withhold a quantity of the allowances equal to up to twice the quantity of allowances that the State or Indian tribe failed to use in accordance with the requirements of this section, that such State or Indian tribe would otherwise be eligible to receive under this section in 1 or more later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States or Indian tribes ratably in accordance with the formula in subsection (c) in the case of allowances withheld from a State, or in accordance with subsection (d) in the case of allowances withheld from an Indian tribe.

B

Public Health and Climate Change

461.

Sense of Congress on public health and climate change

It is the sense of the Congress that the Federal Government, in cooperation with international, State, tribal, and local governments, concerned public and private organizations, and citizens, should use all practicable means and measures— (1)to assist the efforts of public health and health care professionals, first responders, States, tribes, municipalities, and local communities to incorporate measures to prepare health systems to respond to the impacts of climate change; (2)to ensure— (A)that the Nation’s health professionals have sufficient information to prepare for and respond to the adverse health impacts of climate change; (B)the utility and value of scientific research in advancing understanding of— (i)the health impacts of climate change; and (ii)strategies to prepare for and respond to the health impacts of climate change; (C)the identification of communities vulnerable to the health effects of climate change and the development of strategic response plans to be carried out by health professionals for those communities; (D)the improvement of health status and health equity through efforts to prepare for and respond to climate change; and (E)the inclusion of health policy in the development of climate change responses; (3)to encourage further research, interdisciplinary partnership, and collaboration among stakeholders in order to— (A)understand and monitor the health impacts of climate change; and (B)improve public health knowledge and response strategies to climate change; (4)to enhance preparedness activities, and public health infrastructure, relating to climate change and health; (5)to encourage each and every American to learn about the impacts of climate change on health; and (6)to assist the efforts of developing nations to incorporate measures to prepare health systems to respond to the impacts of climate change.

462.

Relationship to other laws

Nothing in this subpart in any manner limits the authority provided to or responsibility conferred on any Federal department or agency by any provision of any law (including regulations) or authorizes any violation of any provision of any law (including regulations), including any health, energy, environmental, transportation, or any other law or regulation.

463.

National strategic action plan

(a)

Requirement

(1)

In general

The Secretary of Health and Human Services, within 2 years after the date of the enactment of this Act, on the basis of the best available science, and in consultation pursuant to paragraph (2), shall publish a strategic action plan to assist health professionals in preparing for and responding to the impacts of climate change on public health in the United States and other nations, particularly developing nations. (2)

Consultation

In developing or making any revision to the national strategic action plan, the Secretary shall— (A)consult with the Director of the Centers for Disease Control and Prevention, the Administrator of the Environmental Protection Agency, the Director of the National Institutes of Health, the Secretary of Energy, other appropriate Federal agencies, Indian tribes, State and local governments, public health organizations, scientists, and other interested stakeholders; and (B)provide opportunity for public input. (b)

Contents

(1)

In general

The Secretary, acting through the Director of the Centers for Disease Control and Prevention and other appropriate Federal agencies, shall assist health professionals in preparing for and responding effectively and efficiently to the health effects of climate change through measures including— (A)developing, improving, integrating, and maintaining domestic and international disease surveillance systems and monitoring capacity to respond to health-related effects of climate change, including on topics addressing— (i)water, food, and vector borne infectious diseases and climate change; (ii)pulmonary effects, including responses to aeroallergens; (iii)cardiovascular effects, including impacts of temperature extremes; (iv)air pollution health effects, including heightened sensitivity to air pollution; (v)hazardous algal blooms; (vi)mental and behavioral health impacts of climate change; (vii)the health of refugees, displaced persons, and vulnerable communities; (viii)the implications for communities vulnerable to health effects of climate change, as well as strategies for responding to climate change within these communities; and (ix)local and community-based health interventions for climate-related health impacts; (B)creating tools for predicting and monitoring the public health effects of climate change on the international, national, regional, State, and local levels, and providing technical support to assist in their implementation; (C)developing public health communications strategies and interventions for extreme weather events and disaster response situations; (D)identifying and prioritizing communities and populations vulnerable to the health effects of climate change, and determining actions and communication strategies that should be taken to inform and protect these communities and populations from the health effects of climate change; (E)developing health communication, public education, and outreach programs aimed at public health and health care professionals, as well as the general public, to promote preparedness and response strategies relating to climate change and public health, including the identification of greenhouse gas reduction behaviors that are health-promoting; and (F)developing academic and regional centers of excellence devoted to— (i)researching relationships between climate change and health; (ii)expanding and training the public health workforce to strengthen the capacity of such workforce to respond to and prepare for the health effects of climate change; (iii)creating and supporting academic fellowships focusing on the health effects of climate change; and (iv)training senior health ministry officials from developing nations to strengthen the capacity of such nations to— (I)prepare for and respond to the health effects of climate change; and (II)build an international network of public health professionals with the necessary climate change knowledge base; (G)using techniques, including health impact assessments, to assess various climate change public health preparedness and response strategies on international, national, State, regional, tribal, and local levels, and make recommendations as to those strategies that best protect the public health; (H) (i)assisting in the development, implementation, and support of State, regional, tribal, and local preparedness, communication, and response plans (including with respect to the health departments of such entities) to anticipate and reduce the health threats of climate change; and (ii)pursuing collaborative efforts to develop, integrate, and implement such plans; (I)creating a program to advance research as it relates to the effects of climate change on public health across Federal agencies, including research to— (i)identify and assess climate change health effects preparedness and response strategies; (ii)prioritize critical public health infrastructure projects related to potential climate change impacts that affect public health; and (iii)coordinate preparedness for climate change health impacts, including the development of modeling and forecasting tools; (J)providing technical assistance for the development, implementation, and support of preparedness and response plans to anticipate and reduce the health threats of climate change in developing nations; and (K)carrying out other activities determined appropriate by the Secretary to plan for and respond to the impacts of climate change on public health. (c)

Revision

The Secretary shall revise the national strategic action plan not later than July 1, 2014, and every 4 years thereafter, to reflect new information collected pursuant to implementation of the national strategic action plan and otherwise, including information on— (1)the status of critical environmental health parameters and related human health impacts; (2)the impacts of climate change on public health; and (3)advances in the development of strategies for preparing for and responding to the impacts of climate change on public health. (d)

Implementation

(1)

Implementation through HHS

The Secretary shall exercise the Secretary’s authority under this subpart and other provisions of Federal law to achieve the goals and measures of the national strategic action plan. (2)

Other public health programs and initiatives

The Secretary and Federal officials of other relevant Federal agencies shall administer public health programs and initiatives authorized by provisions of law other than this subpart, subject to the requirements of such statutes, in a manner designed to achieve the goals of the national strategic action plan. (3)

CDC

In furtherance of the national strategic action plan, the Secretary, acting through the Director of the Centers for Disease Control and Prevention and the head of any other appropriate Federal agency, shall— (A)conduct scientific research to assist health professionals in preparing for and responding to the impacts of climate change on public health; and (B)provide funding for— (i)research on the health effects of climate change; and (ii)preparedness planning on the international, national, State, tribal, regional, and local levels to respond to or reduce the burden of health effects of climate change; and (C)carry out other activities determined appropriate by the Director or the head of such agency to prepare for and respond to the impacts of climate change on public health.

464.

Advisory board

(a)

Establishment

The Secretary shall establish a permanent science advisory board comprised of not less than 10 and not more than 20 members. (b)

Appointment of members

The Secretary shall appoint the members of the science advisory board from among individuals— (1)who have expertise in public health and human services, climate change, and other relevant disciplines; and (2)at least ½ of whom are recommended by the President of the National Academy of Sciences. (c)

Functions

The science advisory board shall— (1)provide scientific and technical advice and recommendations to the Secretary on the domestic and international impacts of climate change on public health, populations and regions particularly vulnerable to the effects of climate change, and strategies and mechanisms to prepare for and respond to the impacts of climate change on public health; and (2)advise the Secretary regarding the best science available for purposes of issuing the national strategic action plan.

465.

Reports

(a)

Needs assessment

(1)

In general

The Secretary shall seek to enter into, by not later than 6 months after the date of the enactment of this Act, an agreement with the National Research Council and the Institute of Medicine to complete a report that— (A)assesses the needs for health professionals to prepare for and respond to climate change impacts on public health; and (B)recommends programs to meet those needs. (2)

Submission

The agreement under paragraph (1) shall require the completed report to be submitted to the Congress and the Secretary and made publicly available not later than 1 year after the date of the agreement. (b)

Climate change health protection and promotion reports

(1)

In general

The Secretary, in consultation with the advisory board established under section 464, shall ensure the issuance of reports to aid health professionals in preparing for and responding to the adverse health effects of climate change that— (A)review scientific developments on health impacts of climate change; and (B)recommend changes to the national strategic action plan. (2)

Submission

The Secretary shall submit the reports required by paragraph (1) to the Congress and make such reports publicly available not later than July 1, 2013, and every 4 years thereafter.

466.

Definitions

In this subpart: (1)

Health impact assessment

The term health impact assessment means a combination of procedures, methods, and tools by which a policy, program, or project may be judged as to its potential effects on the health of a population, and the distribution of those effects within the population. (2)

National strategic action plan

The term national strategic action plan means the plan issued and revised under section 463. (3)

Secretary

Unless otherwise specified, the term Secretary means the Secretary of Health and Human Services.

467.

Climate Change Health Protection and Promotion Fund

(a)

Establishment of fund

There is hereby established in the Treasury a separate account that shall be known as the Climate Change Health Protection and Promotion Fund. (b)

Availability of amounts

All amounts deposited into the Climate Change Health Protection and Promotion Fund shall be available to the Secretary to carry out this subpart subject to further appropriation. (c)

Distribution of funds by HHS

In carrying out this subpart, the Secretary may make funds deposited in the Climate Change Health Protection and Promotion Fund available to— (1)other departments, agencies, and offices of the Federal Government; (2)foreign, State, tribal, and local governments; and (3)such other entities as the Secretary determines appropriate. (d)

Supplement, not replace

It is the intent of Congress that funds made available to carry out this subpart should be used to supplement, and not replace, existing sources of funding for public health.

C

Natural resource adaptation

471.

Purposes

The purposes of this subpart are to— (1)establish an integrated Federal program to protect, restore, and conserve the Nation’s natural resources in response to the threats of climate change and ocean acidification; and (2)provide financial support and incentives for programs, strategies, and activities that protect, restore, and conserve the Nation’s natural resources in response to the threats of climate change and ocean acidification.

472.

Natural resources climate change adaptation policy

It is the policy of the Federal Government, in cooperation with State and local governments, Indian tribes, and other interested stakeholders to use all practicable means and measures to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification.

473.

Definitions

In this subpart: (1)

Coastal state

The term coastal State has the meaning given the term in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453). (2)

Corridors

The term corridors means areas that provide connectivity, over different time scales (including seasonal or longer), of habitat or potential habitat and that facilitate the ability of terrestrial, marine, estuarine, and freshwater fish, wildlife, or plants to move within a landscape as needed for migration, gene flow, or dispersal, or in response to the impacts of climate change and ocean acidification or other impacts. (3)

Ecological processes

The term ecological processes means biological, chemical, or physical interaction between the biotic and abiotic components of an ecosystem and includes— (A)nutrient cycling; (B)pollination; (C)predator-prey relationships; (D)soil formation; (E)gene flow; (F)disease epizootiology; (G)larval dispersal and settlement; (H)hydrological cycling; (I)decomposition; and (J)disturbance regimes such as fire and flooding. (4)

Habitat

The term habitat means the physical, chemical, and biological properties that are used by fish, wildlife, or plants for growth, reproduction, survival, food, water, and cover, on a tract of land, in a body of water, or in an area or region. (5)

Indian tribe

The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). (6)

Natural resources

The term natural resources means the terrestrial, freshwater, estuarine, and marine fish, wildlife, plants, land, water, habitats, and ecosystems of the United States. (7)

Natural resources adaptation

The term natural resources adaptation means the protection, restoration, and conservation of natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification. (8)

Resilience

Each of the terms resilience and resilient means the ability to resist or recover from disturbance and preserve diversity, productivity, and sustainability. (9)

State

The term State means— (A)a State of the United States; (B)the District of Columbia; and (C)the Commonwealth of Puerto Rico, Guam, the United States Virgin Islands, the Northern Mariana Islands, and American Samoa.

474.

Council on Environmental Quality

The Chair of the Council on Environmental Quality shall— (1)advise the President on implementation and development of— (A)a Natural Resources Climate Change Adaptation Strategy required under section 476; and (B)Federal natural resource agency adaptation plans required under section 478; (2)serve as the Chair of the Natural Resources Climate Change Adaptation Panel established under section 475; and (3)coordinate Federal agency strategies, plans, programs, and activities related to protecting, restoring, and maintaining natural resources to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification.

475.

Natural Resources Climate Change Adaptation Panel

(a)

Establishment

Not later than 90 days after the date of the enactment of this subpart, the President shall establish a Natural Resources Climate Change Adaptation Panel, consisting of— (1)the head, or their designee, of each of— (A)the National Oceanic and Atmospheric Administration; (B)the Forest Service; (C)the National Park Service; (D)the United States Fish and Wildlife Service; (E)the Bureau of Land Management; (F)the United States Geological Survey; (G)the Bureau of Reclamation; (H)the Bureau of Indian Affairs; (I)the Environmental Protection Agency; and (J)the Army Corps of Engineers; (2)the Chair of the Council on Environmental Quality; and (3)the heads of such other Federal agencies or departments with jurisdiction over natural resources of the United States, as determined by the President. (b)

Functions

The Panel shall serve as a forum for interagency consultation on and the coordination of the development and implementation of a national Natural Resources Climate Change Adaptation Strategy required under section 476. (c)

Chair

The Chair of the Council on Environmental Quality shall serve as the Chair of the Panel.

476.

Natural Resources Climate Change Adaptation Strategy

(a)

In general

Not later than one year after the date of the enactment of this subpart, the President, through the Natural Resources Climate Change Adaptation Panel established under section 475, shall develop a Natural Resources Climate Change Adaptation Strategy to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification and to identify opportunities to mitigate those impacts. (b)

Development and Revision

In developing and revising the Strategy, the Panel shall— (1)base the strategy on the best available science; (2)develop the strategy in close cooperation with States and Indian tribes; (3)coordinate with other Federal agencies as appropriate; (4)consult with local governments, conservation organizations, scientists, and other interested stakeholders; (5)provide public notice and opportunity for comment; and (6)review and revise the Strategy every 5 years to incorporate new information regarding the impacts of climate change and ocean acidification on natural resources and advances in the development of strategies for becoming more resilient and adapting to those impacts. (c)

Contents

The National Resources Adaptation Strategy shall include— (1)an assessment of the vulnerability of natural resources to climate change and ocean acidification, including the short-term, medium-term, long-term, cumulative, and synergistic impacts; (2)a description of current research, observation, and monitoring activities at the Federal, State, tribal, and local level related to the impacts of climate change and ocean acidification on natural resources, as well as identification of research and data needs and priorities; (3)identification of natural resources that are likely to have the greatest need for protection, restoration, and conservation because of the adverse effects of climate change and ocean acidification; (4)specific protocols for integrating climate change and ocean acidification adaptation strategies and activities into the conservation and management of natural resources by Federal departments and agencies to ensure consistency across agency jurisdictions and resources; (5)specific actions that Federal departments and agencies shall take to protect, conserve, and restore natural resources to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification, including a timeline to implement those actions; (6)specific mechanisms for ensuring communication and coordination among Federal departments and agencies, and between Federal departments and agencies and State natural resource agencies, United States territories, Indian tribes, private landowners, conservation organizations, and other nations that share jurisdiction over natural resources with the United States; (7)specific actions to develop and implement consistent natural resources inventory and monitoring protocols through interagency coordination and collaboration; and (8)a process for guiding the development of detailed agency- and department-specific adaptation plans required under section 478 to address the impacts of climate change and ocean acidification on the natural resources in the jurisdiction of each agency. (d)

Implementation

Consistent with its authorities under other laws and with Federal trust responsibilities with respect to Indian lands, each Federal department or agency with representation on the National Resources Climate Change Adaptation Panel shall consider the impacts of climate change and ocean acidification and integrate the elements of the strategy into agency plans, environmental reviews, programs, and activities related to the conservation, restoration, and management of natural resources.

477.

Natural resources adaptation science and information

(a)

Coordination

Not later than 90 days after the date of the enactment of this subpart, the Secretary of Commerce, acting through the Administrator of the National Oceanic and Atmospheric Administration, and the Secretary of the Interior, acting through the Director of the United States Geological Survey, shall establish a coordinated process for developing and providing science and information needed to assess and address the impacts of climate change and ocean acidification on natural resources. The process shall be led by the National Climate Change and Wildlife Science Center established within the United States Geological Survey under subsection (d) and the National Climate Service of the National Oceanic and Atmospheric Administration. (b)

Functions

The Secretaries shall ensure that such process avoids duplication and that the National Oceanic and Atmospheric Administration and the United States Geological Survey shall— (1)provide technical assistance to Federal departments and agencies, State and local governments, Indian tribes, and interested private landowners in their efforts to assess and address the impacts of climate change and ocean acidification on natural resources; (2)conduct and sponsor research and provide Federal departments and agencies, State and local governments, Indian tribes, and interested private landowners with research products, decision and monitoring tools and information, to develop strategies for assisting natural resources to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification; and (3)assist Federal departments and agencies in the development of the adaptation plans required under section 478. (c)

Survey

Not later than one year after the date of enactment of this subpart and every 5 years thereafter, the Secretary of Commerce and the Secretary of the Interior shall undertake a climate change and ocean acidification impact survey that— (1)identifies natural resources considered likely to be adversely affected by climate change and ocean acidification; (2)includes baseline monitoring and ongoing trend analysis; (3)uses a stakeholder process to identify and prioritize needed monitoring and research that is of greatest relevance to the ongoing needs of natural resource managers to address the impacts of climate change and ocean acidification; and (4)identifies decision tools necessary to develop strategies for assisting natural resources to become more resilient and adapt to and withstand the impacts of climate change and ocean acidification. (d)

National Climate Change and Wildlife Science Center

(1)

Establishment

The Secretary of the Interior shall establish the National Climate Change and Wildlife Science Center within the United States Geological Survey. (2)

Functions

The Center shall, in collaboration with Federal and State natural resources agencies and departments, Indian tribes, universities, and other partner organizations— (A)assess and synthesize current physical and biological knowledge and prioritize scientific gaps in such knowledge in order to forecast the ecological impacts of climate change on fish and wildlife at the ecosystem, habitat, community, population, and species levels; (B)develop and improve tools to identify, evaluate, and, where appropriate, link scientific approaches and models for forecasting the impacts of climate change and adaptation on fish, wildlife, plants, and their habitats, including monitoring, predictive models, vulnerability analyses, risk assessments, and decision support systems to help managers make informed decisions; (C)develop and evaluate tools to adaptively manage and monitor the effects of climate change on fish and wildlife at national, regional, and local scales; and (D)develop capacities for sharing standardized data and the synthesis of such data. (e)

Science Advisory Board

(1)

Establishment

Not later than 180 days after the date of enactment of this subpart, the Secretary of Commerce and the Secretary of the Interior shall establish and appoint the members of a Science Advisory Board, to be comprised of not fewer than 10 and not more than 20 members— (A)who have expertise in fish, wildlife, plant, aquatic, and coastal and marine biology, ecology, climate change, ocean acidification, and other relevant scientific disciplines; (B)who represent a balanced membership among Federal, State, Indian tribes, and local representatives, universities, and conservation organizations; and (C)at least ½ of whom are recommended by the President of the National Academy of Sciences. (2)

Duties

The Science Advisory Board shall— (A)advise the Secretaries on the state-of-the-science regarding the impacts of climate change and ocean acidification on natural resources and scientific strategies and mechanisms for protecting, restoring, and conserving natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification; and (B)identify and recommend priorities for ongoing research needs on such issues. (3)

Collaboration

The Science Advisory Board shall collaborate with other climate change and ecosystem research entities in other Federal agencies and departments. (4)

Availability to the Public

The advice and recommendations of the Science Advisory Board shall be made available to the public.

478.

Federal natural resource agency adaptation plans

(a)

Development

Not later than 1 year after the date of the development of a Natural Resources Climate Change Adaptation Strategy under section 476, each department or agency that has a representative on the Natural Resources Climate Change Adaptation Panel established under section 475 shall— (1)complete an adaptation plan for that department or agency, respectively, implementing the Natural Resources Climate Change Adaptation Strategy under section 476 and consistent with the Natural Resources Climate Change Adaptation Policy under section 472, detailing the department’s or agency’s current and projected efforts to address the potential impacts of climate change and ocean acidification on natural resources within the department’s or agency’s jurisdiction and necessary additional actions, including a timeline for implementation of those actions; (2)provide opportunities for review and comment on that adaptation plan by the public, including in the case of a plan by the Bureau of Indian Affairs, review by Indian tribes; and (3)submit such plan to the President for approval. (b)

Review by President and Submission to Congress

(1)

Review by President

The President shall— (A)approve an adaptation plan submitted under subsection (a)(3) if the plan meets the requirements of subsection (c) and is consistent with the strategy developed under section 476; (B)decide whether to approve the plan within 60 days after submission; and (C)if the President disapproves a plan, direct the department or agency to submit a revised plan to the President under subsection (a)(3) within 60 days after such disapproval. (2)

Submission to Congress

Not later than 30 days after the date of approval of such adaptation plan by the President, the department or agency shall submit the approved plan to the Committee on Natural Resources of the House of Representatives, the Committee on Energy and Natural Resources of the Senate, and the committees of the House of Representatives and the Senate with principal jurisdiction over the department or agency. (c)

Requirements

Each adaptation plan shall— (1)establish programs for assessing the current and future impacts of climate change and ocean acidification on natural resources within the department’s or agency’s, respectively, jurisdiction, including cumulative and synergistic effects, and for identifying and monitoring those natural resources that are likely to be adversely affected and that have need for conservation; (2)identify and prioritize the department’s or agency’s strategies and specific conservation actions to address the current and future impacts of climate change and ocean acidification on natural resources within the scope of the department’s or agency’s jurisdiction and to develop and implement strategies to protect, restore, and conserve such resources to become more resilient, adapt to, and better withstand those impacts, including— (A)the protection, restoration, and conservation of terrestrial, marine, estuarine, and freshwater habitats and ecosystems; (B)the establishment of terrestrial, marine, estuarine, and freshwater habitat linkages and corridors; (C)the restoration and conservation of ecological processes; (D)the protection of a broad diversity of native species of fish, wildlife, and plant populations across their range; and (E)the protection of fish, wildlife, and plant health, recognizing that climate can alter the distribution and ecology of parasites, pathogens, and vectors; (3)describe how the department or agency will integrate such strategies and conservation activities into plans, programs, activities, and actions of the department or agency, related to the conservation and management of natural resources and establish new plans, programs, activities, and actions as necessary; (4)establish methods for assessing the effectiveness of strategies and conservation actions taken to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification, and for updating those strategies and actions to respond to new information and changing conditions; (5)include a description of current and proposed mechanisms to enhance cooperation and coordination of natural resources adaptation efforts with other Federal agencies, State and local governments, Indian tribes, and nongovernmental stakeholders; (6)include specific written guidance to resource managers to— (A)explain how managers are expected to address the effects of climate change and ocean acidification; (B)identify how managers are to obtain any site-specific information that may be necessary; and (C)reflect best practices shared among relevant agencies, while also recognizing the unique missions, objectives, and responsibilities of each agency; and (7)identify and assess data and information gaps necessary to develop natural resources adaptation plans and strategies. (d)

Implementation

(1)

In general

Upon approval by the President, each department or agency that serves on the Natural Resources Climate Change Adaptation Panel shall implement its adaptation plan through existing and new plans, policies, programs, activities, and actions to the extent not inconsistent with existing authority. (2)

Consideration of impacts

(A)

In general

To the maximum extent practicable and consistent with applicable law, every natural resource management decision made by the department or agency shall consider the impacts of climate change and ocean acidification on those natural resources. (B)

Guidance

The Council on Environmental Quality shall issue guidance for Federal departments and agencies for considering those impacts. (e)

Revision and review

Not less than every 5 years, each adaptation plan under this section shall be reviewed and revised to incorporate the best available science and other information regarding the impacts of climate change and ocean acidification on natural resources.

479.

State natural resources adaptation plans

(a)

Requirement

In order to be eligible for funds under section 480, not later than 1 year after the development of a Natural Resources Climate Change Adaptation Strategy required under section 476 each State shall prepare a State natural resources adaptation plan detailing the State’s current and projected efforts to address the potential impacts of climate change and ocean acidification on natural resources and coastal areas within the State’s jurisdiction. (b)

Review or approval

(1)

In general

Each State adaptation plan shall be reviewed and approved or disapproved by the Secretary of the Interior and, as applicable, the Secretary of Commerce. Such approval shall be granted if the plan meets the requirements of subsection (c) and is consistent with the Natural Resources Climate Change Adaptation Strategy required under section 476. (2)

Approval or disapproval

Within 180 days after transmittal of such a plan, or a revision to such a plan, the Secretary of the Interior and, as applicable, the Secretary of Commerce shall approve or disapprove the plan by written notice. (3)

Resubmittal

Within 90 days after transmittal of a resubmitted adaptation plan as a result of disapproval under paragraph (3), the Secretary of the Interior and, as applicable, the Secretary of Commerce, shall approve or disapprove the plan by written notice. (c)

Contents

A State natural resources adaptation plan shall— (1)include a strategy for addressing the impacts of climate change and ocean acidification on terrestrial, marine, estuarine, and freshwater fish, wildlife, plants, habitats, ecosystems, wildlife health, and ecological processes, that— (A)describes the impacts of climate change and ocean acidification on the diversity and health of the fish, wildlife and plant populations, habitats, ecosystems, and associated ecological processes; (B)establishes programs for monitoring the impacts of climate change and ocean acidification on fish, wildlife, and plant populations, habitats, ecosystems, and associated ecological processes; (C)describes and prioritizes proposed conservation actions to assist fish, wildlife, plant populations, habitats, ecosystems, and associated ecological processes in becoming more resilient, adapting to, and better withstanding those impacts; (D)includes strategies, specific conservation actions, and a time frame for implementing conservation actions for fish, wildlife, and plant populations, habitats, ecosystems, and associated ecological processes; (E)establishes methods for assessing the effectiveness of strategies and conservation actions taken to assist fish, wildlife, and plant populations, habitats, ecosystems, and associated ecological processes in becoming more resilient, adapt to, and better withstand the impacts of climate changes and ocean acidification and for updating those strategies and actions to respond appropriately to new information or changing conditions; (F)is incorporated into a revision of the State wildlife action plan (also known as the State comprehensive wildlife strategy)— (i)that has been submitted to the United States Fish and Wildlife Service; and (ii)that has been approved by the Service or on which a decision on approval is pending; and (G)is developed— (i)with the participation of the State fish and wildlife agency, the State coastal agency, the State agency responsible for administration of Land and Water Conservation Fund grants, the State Forest Legacy program coordinator, and other State agencies considered appropriate by the Governor of such State; and (ii)in coordination with the Secretary of the Interior, and where applicable, the Secretary of Commerce and other States that share jurisdiction over natural resources with the State; and (2)include, in the case of a coastal State, a strategy for addressing the impacts of climate change and ocean acidification on the coastal zone that— (A)identifies natural resources that are likely to be impacted by climate change and ocean acidification and describes those impacts; (B)identifies and prioritizes continuing research and data collection needed to address those impacts including— (i)acquisition of high resolution coastal elevation and nearshore bathymetry data; (ii)historic shoreline position maps, erosion rates, and inventories of shoreline features and structures; (iii)measures and models of relative rates of sea level rise or lake level changes, including effects on flooding, storm surge, inundation, and coastal geological processes; (iv)habitat loss, including projected losses of coastal wetlands and potentials for inland migration of natural shoreline habitats; (v)ocean and coastal species and ecosystem migrations, and changes in species population dynamics; (vi)changes in storm frequency, intensity, or rainfall patterns; (vii)saltwater intrusion into coastal rivers and aquifers; (viii)changes in chemical or physical characteristics of marine and estuarine systems; (ix)increased harmful algal blooms; and (x)spread of invasive species; (C)identifies and prioritizes adaptation strategies to protect, restore, and conserve natural resources to enable them to become more resilient, adapt to, and withstand the impacts of climate change and ocean acidification, including— (i)protection, maintenance, and restoration of ecologically important coastal lands, coastal and ocean ecosystems, and species biodiversity and the establishment of habitat buffer zones, migration corridors, and climate refugia; and (ii)improved planning, siting policies, and hazard mitigation strategies; (D)establishes programs for the long-term monitoring of the impacts of climate change and ocean acidification on the ocean and coastal zone and to assess and adjust, when necessary, such adaptive management strategies; (E)establishes performance measures for assessing the effectiveness of adaptation strategies intended to improve resilience and the ability of natural resources in the coastal zone to adapt to and withstand the impacts of climate change and ocean acidification and of adaptation strategies intended to minimize those impacts on the coastal zone and to update those strategies to respond to new information or changing conditions; and (F)is developed with the participation of the State coastal agency and other appropriate State agencies and in coordination with the Secretary of Commerce and other appropriate Federal agencies. (d)

Public input

States shall provide for solicitation and consideration of public and independent scientific input in the development of their plans. (e)

Coordination with other plans

The State plan shall take into consideration research and information contained in, and coordinate with and integrate the goals and measures identified in, as appropriate, other natural resources conservation strategies, including— (1)the national fish habitat action plan; (2)plans under the North American Wetlands Conservation Act (16 U.S.C. 4401 et seq.); (3)the Federal, State, and local partnership known as Partners in Flight; (4)federally approved coastal zone management plans under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.); (5)federally approved regional fishery management plants and habitat conservation activities under the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.); (6)the national coral reef action plan; (7)recovery plans for threatened species and endangered species under section 4(f) of the Endangered Species Act of 1973 (16 U.S.C. 1533(f)); (8)habitat conservation plans under section 10 of that Act (16 U.S.C. 1539); (9)other Federal, State, and tribal plans for imperiled species; (10)State or tribal hazard mitigation plans; (11)State or tribal water management plans; and (12)other State-based strategies that comprehensively implement adaptation activities to remediate the effects of climate change and ocean acidification on terrestrial, marine, and freshwater fish, wildlife, plants, and other natural resources. (f)

Updating

Each State plan shall be updated not less than every 5 years. (g)

Funding

(1)

In general

Funds allocated to States under section 480 shall be used only for activities that are consistent with a State natural resources adaptation plan that has been approved by the Secretaries of Interior and Commerce. (2)

Funding prior to the approval of a State plan

Until the earlier of the date that is 3 years after the date of the enactment of this subpart or the date on which a State receives approval for the State strategy, a State shall be eligible to receive funding under section 480 for adaptation activities that are— (A)consistent with the comprehensive wildlife strategy of the State and, where appropriate, other natural resources conservation strategies; and (B)in accordance with a workplan developed in coordination with— (i)the Secretary of the Interior; and (ii)the Secretary of Commerce, for any coastal State subject to the condition that coordination with the Secretary of Commerce shall be required only for those portions of the strategy relating to activities affecting the coastal zone. (3)

Pending approval

During the period for which approval by the applicable Secretary of a State plan is pending, the State may continue receiving funds under section 480 pursuant to the workplan described in paragraph (2)(B).

480.

Natural Resources Climate Change Adaptation Fund

(a)

Allocations to States

100 percent of the emission allowances made available for each year to carry out this subpart shall be provided to States to carry out natural resources adaptation activities in accordance with State natural resources adaptation plans approved under section 479. Specifically— (1)84.4 percent shall be available to State wildlife agencies in accordance with the apportionment formula established under the second subsection (c) of section 4 of the Pittman-Robertson Wildlife Restoration Act (16 U.S.C. 669c), as added by section 902(e) of H.R. 5548 as introduced in the 106th Congress and enacted into law by section 1(a)(2) of Public Law 106–553 (114 Stat. 2762A–119); and (2)15.6 percent shall be available to State coastal agencies pursuant to the formula established by the Secretary of Commerce under section 306(c) of the Coastal Management Act of 1972 (16 U.S.C. 1455(c)). (b)

Establishment of Fund

(1)

Establishment

There is hereby established in the Treasury a separate account that shall be known as the Natural Resources Climate Change Adaptation Fund. (2)

Authorization of Appropriations

There are authorized to be appropriated for subsection (c) such sums as are deposited in the Natural Resources Climate Change Fund, and the amounts appropriated for subsection (c) shall be no less than the total estimated annual deposits in the Natural Resources Climate Change Adaptation Fund. Such appropriations shall be offset by the amounts deposited in such fund pursuant to section 782(m) of the Clean Air Act. (c)

Allocations to Federal agencies

(1)

Department of the Interior

Of the amounts made available for each fiscal year to carry out this subpart— (A)27.6 percent shall be allocated to the Secretary of the Interior for use in funding— (i)natural resources adaptation activities carried out— (I)under endangered species, migratory species, and other fish and wildlife programs administered by the National Park Service, the United States Fish and Wildlife Service, the Bureau of Indian Affairs, and the Bureau of Land Management; (II)on wildlife refuges, National Park Service land, and other public land under the jurisdiction of the United States Fish and Wildlife Service, the Bureau of Land Management, the Bureau of Indian Affairs, or the National Park Service; or (III)within Federal water managed by the Bureau of Reclamation and the National Park Service; and (ii)for the implementation of the National Fish and Wildlife Habitat and Corridors Identification Program pursuant to section 481; (B)8.1 percent shall be allocated to the Secretary of the Interior for natural resources adaptation activities carried out under cooperative grant programs, including— (i)the cooperative endangered species conservation fund authorized under section 6 of the Endangered Species Act of 1973 (16 U.S.C. 1535); (ii)programs under the North American Wetlands Conservation Act (16 U.S.C. 4401 et seq.); (iii)the Neotropical Migratory Bird Conservation Fund established by section 478(a) of the Neotropical Migratory Bird Conservation Act (16 U.S.C. 6108(a)); (iv)the Coastal Program of the United States Fish and Wildlife Service; (v)the National Fish Habitat Action Plan; (vi)the Partners for Fish and Wildlife Program; (vii)the Landowner Incentive Program; (viii)the Wildlife Without Borders Program of the United States Fish and Wildlife Service; and (ix)the Migratory Species Program and Park Flight Migratory Bird Program of the National Park Service; and (C)4.9 percent shall be allocated to the Secretary of the Interior to provide financial assistance to Indian tribes to carry out natural resources adaptation activities through the Tribal Wildlife Grants Program of the United States Fish and Wildlife Service. (2)

Land and Water Conservation Fund

(A)

Deposits

(i)

In general

Of the amounts made available for each fiscal year to carry out this subpart, 19.5 percent shall be deposited into the Land and Water Conservation Fund established under section 2 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–5). (ii)

Use of deposits

(I)Deposits into the Land and Water Conservation Fund under this paragraph shall be supplemental to authorizations provided under section 3 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–6), which shall remain available for nonadaptation needs. (II)There are authorized to be appropriated for activities in this subpart such sums as are deposited in the Land and Water Conservation Fund pursuant to section 480(c)(3)(A)(ii), and the amounts appropriated for this paragraph shall be no less than the total estimated annual deposits in the Land and Water Conservation Fund. Such appropriations shall be offset by the amounts deposited in such Fund pursuant to section 782(m). (B)

Allocations

Of the amounts deposited under this paragraph into the Land and Water Conservation Fund— (i)1/6 shall be allocated to the Secretary of the Interior and made available on a competitive basis to carry out natural resources adaptation activities through the acquisition of land and interests in land under section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–8)— (I)to States in accordance with their natural resources adaptation plans, and to Indian tribes; (II)notwithstanding section 5 of that Act (16 U.S.C. 460l–7); and (III)in addition to any funds provided pursuant to annual appropriations Acts, the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.), or any other authorization for nonadaptation needs; (ii)1/3 shall be allocated to the Secretary of the Interior to carry out natural resources adaptation activities through the acquisition of lands and interests in land under section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–9); (iii)1/6 shall be allocated to the Secretary of Agriculture and made available to the States and Indian tribes to carry out natural resources adaptation activities through the acquisition of land and interests in land under section 7 of the Forest Legacy Program under the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c); and (iv)1/3 shall be allocated to the Secretary of Agriculture to carry out natural resources adaptation activities through the acquisition of land and interests in land under section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–9). (C)

Expenditure of funds

In allocating funds under subparagraph (B), the Secretary of the Interior and the Secretary of Agriculture shall take into consideration factors including— (i)the availability of non-Federal contributions from State, local, or private sources; (ii)opportunities to protect fish and wildlife corridors or otherwise to link or consolidate fragmented habitats; (iii)opportunities to reduce the risk of catastrophic wildfires, drought, extreme flooding, or other climate-related events that are harmful to fish and wildlife and people; and (iv)the potential for conservation of species or habitat types at serious risk due to climate change, ocean acidification, and other stressors. (3)

Forest Service

Of the amounts made available for each fiscal year to carry out this subpart, 8.1 percent shall be allocated to the Secretary of Agriculture for use in funding natural resources adaptation activities carried out on national forests and national grasslands under the jurisdiction of the Forest Service. (4)

Department of Commerce

Of the amounts made available for each fiscal year to carry out this subpart, 11.5 percent shall be allocated to the Secretary of Commerce for use in funding natural resources adaptation activities to protect, maintain, and restore coastal, estuarine, and marine resources, habitats, and ecosystems, including such activities carried out under— (A)the coastal and estuarine land conservation program; (B)the community-based restoration program; (C)the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), that are specifically designed to strengthen the ability of coastal, estuarine, and marine resources, habitats, and ecosystems to adapt to and withstand the impacts of climate change and ocean acidification; (D)the Open Rivers Initiative; (E)the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.); (F)the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et seq.); (G)the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); (H)the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.); (I)the Coral Reef Conservation Act of 2000 (16 U.S.C. 6401 et seq.); and (J)the Estuary Restoration Act of 2000 (33 U.S.C. 2901 et seq.). (5)

Environmental Protection Agency

Of the amounts made available each fiscal year to carry out this section, 12.2 percent shall be allocated to the Administrator for use in natural resources adaptation activities restoring and protecting— (A)large-scale freshwater aquatic ecosystems, such as the Everglades, the Great Lakes, Flathead Lake, the Missouri River, the Mississippi River, the Colorado River, the Sacramento-San Joaquin Rivers, the Ohio River, the Columbia-Snake River System, the Apalachicola, Chattahoochee, and Flint River System, the Connecticut River, and the Yellowstone River; (B)large-scale estuarine ecosystems, such as Chesapeake Bay, Long Island Sound, Puget Sound, the Mississippi River Delta, the San Francisco Bay Delta, Narragansett Bay, and Albemarle-Pamlico Sound; and (C)freshwater and estuarine ecosystems, watersheds, and basins identified as priorities by the Administrator, working in cooperation with other Federal agencies, States, Indian tribes, local governments, scientists, and other conservation partners. (6)

Corps of Engineers

Of the amounts made available each fiscal year to carry out this section, 8.1 percent shall be available to the Secretary of the Army for use by the Corps of Engineers to carry out natural resources adaptation activities restoring— (A)large-scale freshwater aquatic ecosystems, such as the ecosystems described in paragraph (5)(A); (B)large-scale estuarine ecosystems, such as the ecosystems described in paragraph (5)(B); (C)freshwater and estuarine ecosystems, watersheds, and basins identified as priorities by the Corps of Engineers, working in cooperation with other Federal agencies, States, Indian tribes, local governments, scientists, and other conservation partners; and (D)habitats and ecosystems through the implementation of estuary habitat restoration projects authorized by the Estuary Restoration Act of 2000 (33 U.S.C. 2901 et seq.), project modifications for improvement of the environment, aquatic restoration and protection projects authorized by section 206 of the Water Resources Development Act of 1996 (33 U.S.C. 2330), and other appropriate programs and activities. (d)

Use of funds by Federal departments and agencies

Funds allocated to Federal departments and agencies under this section shall only be used for natural resources adaptation activities that are consistent with an adaptation plan developed and approved by the President under section 478. (e)

State Cost Sharing

Notwithstanding any other provision of law, a State that receives a grant with amounts allocated under this section shall use funds from non-Federal sources to pay at least 10 percent of the costs of each activity carried out using amounts provided under the grant.

481.

National Wildlife Habitat and Corridors Information Program

(a)

Establishment

Within 6 months of the date of enactment of this subpart, the Secretary of the Interior, in cooperation with the States and Indian tribes, shall establish a National Fish and Wildlife Habitat and Corridors Information Program in accordance with the requirements of this section. (b)

Purpose

The purpose of this program is to— (1)support States and Indian tribes in the development of a geographic information system database of fish and wildlife habitat and corridors that would inform planning and development decisions within each State and Indian tribe, enable each State and Indian tribe to model climate impacts and adaptation, and provide geographically specific enhancements of State and tribal wildlife action plans; (2)ensure the collaborative development, with the States and Indian tribes, of a comprehensive, national geographic information system database of maps, models, data, surveys, informational products, and other geospatial information regarding fish and wildlife habitat and corridors, that— (A)is based on consistent protocols for sampling and mapping across landscapes that take into account regional differences; and (B)that utilizes— (i)existing and planned State- and tribal-based geographic information system databases; and (ii)existing databases, analytical tools, metadata activities, and other information products available through the National Biological Information Infrastructure maintained by the Secretary and nongovernmental organizations; and (3)facilitate the use of such databases by Federal, State, local, and tribal decisionmakers to incorporate qualitative information on fish and wildlife habitat and corridors at the earliest possible stage to— (A)prioritize and target natural resources adaptation strategies and activities; (B)avoid, minimize, and mitigate the impacts on fish and wildlife habitat and corridors in siting energy development, water, transmission, transportation, and other land use projects; (C)assess the impacts of existing development on habitats and corridors; and (D)develop management strategies to enhance the ability of fish, wildlife, and plant species to migrate or respond to shifting habitats within existing habitats and corridors. (c)

Habitat and Corridors Information System

(1)

In general

The Secretary, in cooperation with the States and Indian tribes, shall develop a Habitat and Corridors Information System. (2)

Contents

The System shall— (A)include maps, data, and descriptions of fish and wildlife habitat and corridors, that— (i)have been developed by Federal agencies, State wildlife agencies and natural heritage programs, Indian tribes, local governments, nongovernmental organizations, and industry; (ii)meet accepted Geospatial Interoperability Framework data and metadata protocols and standards; (B)include maps and descriptions of projected shifts in habitats and corridors of fish and wildlife species in response to climate change; (C)assure data quality and make the data, models, and analyses included in the System available at scales useful to decisionmakers— (i)to prioritize and target natural resources adaptation strategies and activities; (ii)to assess the impacts of proposed energy development, water, transmission, transportation, and other land use projects and avoid, minimize, and mitigate those impacts on habitats and corridors; (iii)to assess the impacts of existing development on habitats and corridors; and (iv)to develop management strategies to enhance the ability of fish, wildlife, and plant species to migrate or respond to shifting habitats within existing habitats and corridors; (D)establish a process for updating maps and other information as landscapes, habitats, corridors, and wildlife populations change or as other information becomes available; (E)encourage the development of collaborative plans by Federal and State agencies and Indian tribes to monitor and evaluate the efficacy of the System to meet the needs of decisionmakers; (F)identify gaps in habitat and corridor information, mapping, and research that should be addressed to fully understand and assess current data and metadata, and to prioritize research and future data collection activities for use in updating the System and provide support for those activities; (G)include mechanisms to support collaborative research, mapping, and planning of habitats and corridors by Federal and State agencies, Indian tribes, and other interested stakeholders; (H)incorporate biological and geospatial data on species and corridors found in energy development and transmission plans, including renewable energy initiatives, transportation, and other land use plans; (I)be based on the best scientific information available; and (J)identify, prioritize, and describe key parcels of non-Federal land located within the boundaries of units of the National Park System, National Wildlife Refuge System, National Forest System, or National Grassland System that are critical to maintenance of wildlife habitat and migration corridors. (d)

Financial and other support

The Secretary may provide support to the States and Indian tribes, including financial and technical assistance, for activities that support the development and implementation of the System. (e)

Coordination

The Secretary, in cooperation with the States and Indian tribes, shall make recommendations on how the information developed in the System may be incorporated into existing relevant State and Federal plans affecting fish and wildlife, including land management plans, the State Comprehensive Wildlife Conservation Strategies, and appropriate tribal conservation plans, to ensure that they— (1)prevent unnecessary habitat fragmentation and disruption of corridors; (2)promote the landscape connectivity necessary to allow wildlife to move as necessary to meet biological needs, adjust to shifts in habitat, and adapt to climate change; and (3)minimize the impacts of energy, development, water, transportation, and transmission projects and other activities expected to impact habitat and corridors. (f)

Definitions

In this section: (1)

Geospatial interoperability framework

The term Geospatial Interoperability Framework means the strategy utilized by the National Biological Information Infrastructure that is based upon accepted standards, specifications, and protocols adopted through the International Standards Organization, the Open Geospatial Consortium, and the Federal Geographic Data Committee, to manage, archive, integrate, analyze, and make accessible geospatial and biological data and metadata. (2)

Secretary

The term Secretary means the Secretary of the Interior.

482.

Additional provisions regarding Indian tribes

(a)

Federal trust responsibility

Nothing in this subpart is intended to amend, alter, or give priority over the Federal trust responsibility to Indian tribes. (b)

Exemption from FOIA

Information received by a Federal agency pursuant to this Act relating to the location, character, or ownership of human remains of a person of Indian ancestry; or resources, cultural items, uses, or activities identified by an Indian tribe as traditional or cultural because of the long-established significance or ceremonial nature to the Indian tribe; shall not be subject to disclosure under section 552 of title 5, United States Code, if the head of the agency, in consultation with the Secretary of the Interior and an affected Indian tribe, determines that disclosure may— (1)cause a significant invasion of privacy; (2)risk harm to the human remains or resources, cultural items, uses, or activities; or (3)impede the use of a traditional religious site by practitioners. (c)

Application of other law

The Secretary of the Interior may apply the provisions of Public Law 93–638 where appropriate in the implementation of this subpart.

2

International Climate Change Adaptation Program

491.

Findings and purposes

(a)

Findings

Congress finds the following: (1)Global climate change is a potentially significant national and global security threat multiplier and is likely to exacerbate competition and conflict over agricultural, vegetative, marine, and water resources and to result in increased displacement of people, poverty, and hunger within developing countries. (2)The strategic, social, political, economic, cultural, and environmental consequences of global climate change are likely to have disproportionate adverse impacts on developing countries, which have less economic capacity to respond to such impacts. (3)The countries most vulnerable to climate change, due both to greater exposure to harmful impacts and to lower capacity to adapt, are developing countries with very low industrial greenhouse gas emissions that have contributed less to climate change than more affluent countries. (4)To a much greater degree than developed countries, developing countries rely on the natural and environmental systems likely to be affected by climate change for sustenance, livelihoods, and economic growth and stability. (5)Within developing countries there may be varying climate change adaptation and resilience needs among different communities and populations, including impoverished communities, children, women, and indigenous peoples. (6)The consequences of global climate change, including increases in poverty and destabilization of economies and societies, are likely to pose long-term challenges to the national security, foreign policy, and economic interests of the United States. (7)It is in the national security, foreign policy, and economic interests of the United States to recognize, plan for, and mitigate the international strategic, social, political, cultural, environmental, health, and economic effects of climate change and to assist developing countries to increase their resilience to those effects. (8)Under Article 4 of the United Nations Framework Convention on Climate Change, developed country parties, including the United States, committed to assist the developing country parties that are particularly vulnerable to the adverse effects of climate change in meeting costs of adaptation to those adverse effects. (9)Under the Bali Action Plan, developed country parties to the United Nations Framework Convention on Climate Change, including the United States, committed to enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation, including, inter alia, consideration of improved access to adequate, predictable, and sustainable financial resources and financial and technical support, and the provision of new and additional resources, including official and concessional funding for developing country parties. (b)

Purposes

The purposes of this part are— (1)to provide new and additional assistance from the United States to the most vulnerable developing countries, including the most vulnerable communities and populations therein, in order to support the development and implementation of climate change adaptation programs and activities that reduce the vulnerability and increase the resilience of communities to climate change impacts, including impacts on water availability, agricultural productivity, flood risk, coastal resources, timing of seasons, biodiversity, economic livelihoods, health and diseases, and human migration; and (2)to provide such assistance in a manner that protects and promotes the national security, foreign policy, environmental, and economic interests of the United States to the extent such interests may be advanced by minimizing, averting, or increasing resilience to climate change impacts.

492.

Definitions

In this part: (1)

Allowance

The term allowance means an emission allowance established under section 721 of the Clean Air Act. (2)

Appropriate congressional committees

The term appropriate congressional committees means— (A)the Committees on Energy and Commerce, Financial Services, and Foreign Affairs of the House of Representatives; and (B)the Committees on Environment and Public Works and Foreign Relations of the Senate. (3)

Developing country

The term developing country means a country eligible to receive official development assistance according to the income guidelines of the Development Assistance Committee of the Organization for Economic Cooperation and Development. (4)

Most vulnerable developing countries

The term most vulnerable developing countries means, as determined by the Administrator of USAID, developing countries that are at risk of substantial adverse impacts of climate change and have limited capacity to respond to such impacts, considering the approaches included in any international treaties and agreements. (5)

Most vulnerable communities and populations

The term most vulnerable communities and populations means communities and populations that are at risk of substantial adverse impacts of climate change and have limited capacity to respond to such impacts, including impoverished communities, children, women, and indigenous peoples. (6)

Program

The term Program means the International Climate Change Adaptation Program established under section 493. (7)

USAID

The term USAID means the United States Agency for International Development. (8)

United Nations Framework Convention on Climate Change

The term United Nations Framework Convention on Climate Change or Convention means the United Nations Framework Convention on Climate Change done at New York on May 9, 1992, and entered into force on March 21, 1994.

493.

International Climate Change Adaptation Program

(a)

Establishment

The Secretary of State, in consultation with the Administrator of USAID, the Secretary of the Treasury, and the Administrator of the Environmental Protection Agency, shall establish an International Climate Change Adaptation Program in accordance with the requirements of this part. (b)

Allowance account

Allowances allocated pursuant to section 782(n) of the Clean Air Act shall be available for distribution to carry out the Program established under subsection (a). (c)

Supplement not supplant

Assistance provided under this part shall be used to supplement, and not to supplant, any other Federal, State, or local resources available to carry out activities of the type carried out under the Program.

494.

Distribution of allowances

(a)

In general

The Secretary of State, or such other Federal agency head as the President may designate, after consultation with the Secretary of the Treasury, the Administrator of USAID, and the Administrator of the Environmental Protection Agency, shall direct the distribution of allowances to carry out the Program— (1)in the form of bilateral assistance pursuant to the requirements under section 495; (2)to multilateral funds or international institutions pursuant to the Convention or an agreement negotiated under the Convention; or (3)through a combination of the mechanisms identified under paragraphs (1) and (2). (b)

Limitation

(1)

Conditional distribution to multilateral funds or international institutions

In any fiscal year, the Secretary of State, or such other Federal agency head as the President may designate, in consultation with the Administrator of USAID, the Secretary of the Treasury, and the Administrator of the Environmental Protection Agency, shall distribute at least 40 percent and up to 60 percent of the allowances available to carry out the Program to one or more multilateral funds or international institutions that meet the requirements of paragraph (2), if any such fund or institution exists, and shall annually certify in a report to the appropriate congressional committees that any multilateral fund or international institution receiving allowances under this section meets the requirements of paragraph (2) or that no multilateral fund or international institution that meets the requirements of paragraph (2) exists, as the case may be. The Secretary of State shall notify the appropriate congressional committees not less than 15 days prior to any transfer of allowances to a multilateral fund or international institution pursuant to this section. (2)

Multilateral fund or international institution eligibility

A multilateral fund or international institution is eligible to receive allowances available to carry out the Program— (A)if— (i)such fund or institution is established pursuant to— (I)the Convention; or (II)an agreement negotiated under the Convention; or (ii)the allowances are directed to one or more multilateral development banks or international development institutions, pursuant to an agreement negotiated under such Convention; and (B)if such fund or institution— (i)specifies the terms and conditions under which the United States is to provide allowances to the fund or institution, and under which the fund or institution is to provide assistance to recipient countries; (ii)ensures that assistance from the United States to the fund or institution and the principal and income of the fund or institution are disbursed only for purposes that are consistent with those described in section 491(b)(1); (iii)requires a regular meeting of a governing body of the fund or institution that includes representation from countries among the most vulnerable developing countries and provides public access; (iv)requires that local communities and indigenous peoples in areas where any activities or programs are planned are engaged through adequate disclosure of information, public participation, and consultation; and (v)prepares and makes public an annual report that— (I)describes the process and methodology for selecting the recipients of assistance from the fund or institution, including assessments of vulnerability; (II)describes specific programs and activities supported by the fund or institution and the extent to which the assistance is addressing the adaptation needs of the most vulnerable developing countries, and the most vulnerable communities and populations therein; (III)describes the performance goals for assistance authorized under the fund or institution and expresses such goals in an objective and quantifiable form, to the extent practicable; (IV)describes the performance indicators to be used in measuring or assessing the achievement of the performance goals described in subclause (III); (V)provides a basis for recommendations for adjustments to assistance authorized under this part to enhance the impact of such assistance; and (VI)describes the participation of other nations and international organizations in supporting and governing the fund or institution. (c)

Oversight

(1)

Distribution to multilateral funds or international institutions

The Secretary of State, or such other Federal agency head as the President may designate, in consultation with the Administrator of USAID, shall oversee the distribution of allowances available to carry out the Program to a multilateral fund or international institution under subsection (b). (2)

Bilateral assistance

The Administrator of USAID, in consultation with the Secretary of State, shall oversee the distribution of allowances available to carry out the Program for bilateral assistance under section 495.

495.

Bilateral assistance

(a)

Activities and foreign aid

(1)

In general

In order to achieve the purposes of this part, the Administrator of USAID may carry out programs and activities and distribute allowances to any private or public group (including international organizations and faith-based organizations), association, or other entity engaged in peaceful activities to— (A)provide assistance to the most vulnerable developing countries for— (i)the development of national or regional climate change adaptation plans, including a systematic assessment of socioeconomic vulnerabilities in order to identify the most vulnerable communities and populations; (ii)associated national policies; and (iii)planning, financing, and execution of adaptation programs and activities; (B)support investments, capacity-building activities, and other assistance, to reduce vulnerability and promote community-level resilience related to climate change and its impacts in the most vulnerable developing countries, including impacts on water availability, agricultural productivity, flood risk, coastal resources, timing of seasons, biodiversity, economic livelihoods, health, human migration, or other social, economic, political, cultural, or environmental matters; (C)support climate change adaptation research in or for the most vulnerable developing countries; (D)reduce vulnerability and provide increased resilience to climate change for local communities and livelihoods in the most vulnerable developing countries by encouraging— (i)the protection and rehabilitation of natural systems; (ii)the enhancement and diversification of agricultural, fishery, and other livelihoods; and (iii)the reduction of disaster risks; (E)support the deployment of technologies to help the most vulnerable developing countries respond to the destabilizing impacts of climate change and encourage the identification and adoption of appropriate renewable and efficient energy technologies that are beneficial in increasing community-level resilience to the impacts of global climate change in those countries; and (F)encourage the engagement of local communities through disclosure of information, consultation, and the communities’ informed participation relating to the development of plans, programs, and activities to increase community-level resilience to climate change impacts. (2)

Limitations

Not more than 10 percent of the allowances made available to carry out bilateral assistance under this part in any year shall be distributed to support activities in any single country. (3)

Prioritizing assistance

In providing assistance under this section, the Administrator of USAID shall give priority to countries, including the most vulnerable communities and populations therein, that are most vulnerable to the adverse impacts of climate change, determined by the likelihood and severity of such impacts and the country’s capacity to adapt to such impacts. (b)

Community engagement

(1)

In general

The Administrator of USAID shall ensure that local communities, including the most vulnerable communities and populations therein, in areas where any programs or activities are carried out pursuant to this section are engaged in, through disclosure of information, public participation, and consultation, the design, implementation, monitoring, and evaluation of such programs and activities. (2)

Consultation and disclosure

For each country receiving assistance under this section, the Administrator of USAID shall establish a process for consultation with, and disclosure of information to, local, national, and international stakeholders regarding any programs and activities carried out pursuant to this section. (c)

Coordination

(1)

Alignment of activities

Subject to the direction of the President and the Secretary of State, the Administrator of USAID shall, to the extent practicable, seek to align activities under this section with broader development, poverty alleviation, or natural resource management objectives and initiatives in the recipient country. (2)

Coordination of activities

The Administrator of USAID shall ensure that there is coordination among the activities under this section, subtitle D of this title, and part E of title VII of the Clean Air Act, in order to maximize the effectiveness of United States assistance to developing countries. (d)

Reporting

(1)

Initial report

Not later than 180 days after the date of enactment of this part, the Administrator of USAID, in consultation with the Secretary of State, shall submit to the President and the appropriate congressional committees an initial report that— (A)based on the most recent information available from reliable public sources or knowledge obtained by USAID on a reliable basis, as determined by the Administrator of USAID, identifies the developing countries, including the most vulnerable communities and populations therein, that are most vulnerable to climate change impacts and in which assistance may have the greatest and most sustainable benefit in reducing vulnerability to climate change; and (B)describes the process and methodology for selecting the recipients of assistance under subsection (a)(1). (2)

Annual reports

Not later than 18 months after the date on which the initial report is submitted pursuant to paragraph (1), and annually thereafter, the Administrator of USAID, in consultation with the Secretary of State, shall submit to the President and the appropriate congressional committees a report that— (A)describes the extent to which global climate change, through its potential negative impacts on sensitive populations and natural resources in the most vulnerable developing countries, may threaten, cause, or exacerbate political, economic, environmental, cultural, or social instability or international conflict in those regions; (B)describes the ramifications of any potentially destabilizing impacts climate change may have on the national security, foreign policy, and economic interests of the United States, including— (i)the creation of environmental migrants and internally displaced peoples; (ii)international or internal armed conflicts over water, food, land, or other resources; (iii)loss of agricultural and other livelihoods, cultural stability, and other causes of increased poverty and economic destabilization; (iv)decline in availability of resources needed for survival, including water; (v)increased impact of natural disasters (including droughts, flooding, and other severe weather events); (vi)increased prevalence or virulence of climate-related diseases; and (vii)intensified urban migration; (C)describes how allowances available under this section were distributed during the previous fiscal year to enhance the national security, foreign policy, and economic interests of the United States and assist in avoiding the economically, politically, environmentally, culturally, and socially destabilizing impacts of climate change in most vulnerable developing countries; (D)identifies and recommends the developing countries, including the most vulnerable communities and populations therein, that are most vulnerable to climate change impacts and in which assistance may have the greatest and most sustainable benefit in reducing vulnerability to climate change, including in the form of deploying technologies, investments, capacity-building activities, and other types of assistance for adaptation to climate change impacts and approaches to reduce greenhouse gases in ways that may also provide community-level resilience to climate change impacts; and (E)describes cooperation undertaken with other nations and international organizations to carry out this part. (e)

Monitoring and evaluation

(1)

In general

The Administrator of USAID shall establish and implement a system to monitor and evaluate the effectiveness and efficiency of assistance provided under this section in order to maximize the long-term sustainable development impact of such assistance, including the extent to which such assistance is meeting the purposes of this part and addressing the adaptation needs of developing countries. (2)

Requirements

In carrying out paragraph (1), the Administrator of USAID shall— (A)in consultation with national governments in recipient countries, establish performance goals for assistance authorized under this section and express such goals in an objective and quantifiable form, to the extent practicable; (B)establish performance indicators to be used in measuring or assessing the achievement of the performance goals described in subparagraph (A), including an evaluation of— (i)the extent to which assistance under this section provided for disclosure of information to, consultation with, and informed participation by local communities; (ii)the extent to which local communities participated in the design, implementation, and evaluation of programs and activities implemented pursuant to this section; and (iii)the impacts of such participation on the goals and objectives of the programs and activities implemented under this section; (C)provide a basis for recommendations for adjustments to assistance authorized under this section to enhance the impact of such assistance; and (D)include, in the annual report to the appropriate congressional committees and other relevant agencies required under subsection (d)(2), findings resulting from the monitoring and evaluation of programs and activities under this section.