1.Product Carbon disclosure
program
(a)The Administrator of
the Environmental Protection Agency shall conduct a study to determine the
feasibility of establishing a national program for measuring, reporting,
publicly disclosing, and labeling products or materials sold in the United
States for their carbon content, and shall, not later than 18 months after the
date of enactment of this Act, transmit a report to Congress which shall
include the following:
(1)A
determination of whether a national product carbon disclosure program and
labeling program would be effective in achieving the intended goals of
achieving greenhouse gas reductions and an examination of existing programs
globally and their strengths and weaknesses.
(2)Criteria for
identifying and prioritizing sectors and products and processes that should be
covered in such program or programs.
(3)An identification
of products, processes, or sectors whose inclusion could have a substantial
carbon impact (prioritizing industrial products such as iron and steel,
aluminum, cement, chemicals, and paper products, and also including food,
beverage, hygiene, cleaning, household cleaners, construction, metals,
clothing, semiconductor, and consumer electronics).
(4)Suggested
methodology and protocols for measuring the carbon content of the products
across the entire carbon lifecycle of such products for use in a carbon
disclosure program and labeling program.
(5)A
review of existing greenhouse gas product accounting standards, methodologies,
and practices including the Greenhouse Gas Protocol, ISO 14040/44, ISO 14067,
and Publically Available Specification 2050, and including a review of the
strengths and weaknesses of each.
(6)A
survey of secondary databases including the Manufacturing Energy Consumption
Survey and evaluate the quality of data for use in a product carbon disclosure
program and product carbon labeling program and an identification of gaps in
the data relative to the potential purposes of a national product carbon
disclosure program and product carbon labeling program and development of
recommendations for addressing these data gaps.
(7)An assessment of
the utility of comparing products and the appropriateness of product carbon
standards.
(8)An evaluation of
the information needed on a label for clear and accurate communication,
including what pieces of quantitative and qualitative information needs to be
disclosed.
(9)An evaluation of
the appropriate boundaries of the carbon lifecycle analysis for different
sectors and products.
(10)An analysis of
whether default values should be developed for products whose producer does not
participate in the program or does not have data to support a disclosure or
label and determine best ways to develop such default values.
(11)A recommendation
of certification and verification options necessary to assure the quality of
the information and avoid greenwashing or the use of insubstantial or
meaningless environmental claims to promote a product.
(12)An assessment of
options for educating consumers about product carbon content and the product
carbon disclosure program and product carbon labeling program.
(13)An analysis of
the costs and timelines associated with establishing a national product carbon
disclosure program and product carbon labeling program, including options for a
phased approach. Costs should include those for businesses associated with the
measurement of carbon footprints and those associated with creating a product
carbon label and managing and operating a product carbon labeling program, and
options for minimizing these costs.
(14)An evaluation of
incentives (such as financial incentives, brand reputation, and brand loyalty)
to determine whether reductions in emissions can be accelerated through
encouraging more efficient manufacturing or by encouraging preferences for
lower-emissions products to substitute for higher-emissions products whose
level of performance is no better.
(b)Development of
National Carbon Disclosure ProgramUpon conclusion of the study,
and not more than 36 months after the date of enactment of this Act, the
Administrator shall establish a national product carbon disclosure program,
participation in which shall be voluntary, and which may involve a product
carbon label with broad applicability to the wholesale and consumer markets to
enable and encourage knowledge about carbon content by producers and consumers
and to inform efforts to reduce energy consumption (carbon dioxide equivalent
emissions) nationwide. In developing such a program, the Administrator
shall—
(1)consider the
results of the study conducted under subsection (a);
(2)consider existing
and planned programs and proposals and measurement standards (including the
Publicly Available Specification 2050, standards to be developed by the World
Resource Institute/World Business Council for Sustainable Development, the
International Standards Organization, and the bill AB19 pending in the
California legislature);
(3)consider the
compatibility of a national product carbon disclosure program with existing
programs;
(4)utilize incentives
and other means to spur the adoption of product carbon disclosure and product
carbon labeling;
(5)develop protocols
and parameters for a product carbon disclosure program, including a methodology
and formula for assessing, verifying, and potentially labeling a product's
greenhouse gas content, and for data quality requirements to allow for product
comparison;
(6)create a means
to—
(A)document best
practices;
(B)ensure clarity and
consistency;
(C)work with
suppliers, manufacturers, and retailers to encourage participation;
(D)ensure that
protocols are consistent and comparable across like products; and
(E)evaluate the
effectiveness of the program;
(7)make publicly
available information on product carbon content to ensure transparency;
(8)provide for public
outreach, including a consumer education program to increase awareness;
(9)develop training
and education programs to help businesses learn how to measure and communicate
their carbon footprint and easy tools and templates for businesses to use to
reduce cost and time to measure their products’ carbon lifecycle;
(10)consult with the
Secretary of Energy, the Secretary of Commerce, the Federal Trade Commission,
and other Federal agencies, as necessary;
(11)gather input from
stakeholders through consultations, public workshops or hearings with
representatives of consumer product manufacturers, consumer groups, and
environmental groups;
(12)utilize systems
for verification and product certification that will ensure that claims
manufacturers make about their products are valid;
(13)create a process
for reviewing the accuracy of product carbon label information and protecting
the product carbon label in the case of a change in the product's energy
source, supply chain, ingredients, or other factors, and specify the frequency
to which data should be updated; and
(14)develop a
standardized, easily understandable carbon label, if appropriate, and create a
process for responding to inaccuracies and misuses of such a label.
(c)Not later than 5 years after the program is established
pursuant to subsection (b), the Administrator shall report to Congress on the
effectiveness and impact of the program, the level of voluntary participation,
and any recommendations for additional measures.
(d)As
used in this Act—
(1)the term
carbon content means the amount of greenhouse gas emissions and
their warming impact on the atmosphere expressed in carbon dioxide equivalent
associated with a product's value chain;
(2)the term
carbon footprint means the level of greenhouse gas emissions
produced by a particular activity, service, or entity; and
(3)the term
carbon lifecycle means the greenhouse gas emissions that are
released as part of the processes of creating, producing, processing or
manufacturing, modifying, transporting, distributing, storing, using,
recycling, or disposing of goods and services.
(e)Authorization of
AppropriationsThere is authorized to be appropriated to the
Administrator $5,000,000 for the study required by subsection (a) and
$25,000,000 for each of fiscal years 2010 through 2025 for the program required
under subsection (b).