1.Short title; table of contents
(a)This Act may be cited as the
Clean Energy Partnerships Act of
2009
.
(b)The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I—Offset credit program for domestic emission
reductions
Sec. 101. Definitions.
Sec. 102. Advisory Committee.
Sec. 103. Establishment of program to credit emission
reductions from uncapped domestic sources and sinks.
Sec. 104. Eligible projects.
Sec. 105. Requirements for offset projects.
Sec. 106. Approval.
Sec. 107. Verification of offset projects.
Sec. 108. Issuance of offset credits.
Sec. 109. Audits and reviews.
Sec. 110. Early offset supply.
Sec. 111. Program review and revision.
Sec. 112. Additional regulatory standards for emission
reductions.
Sec. 113. Use of credits for compliance purposes.
TITLE II—Carbon conservation program
Sec. 201. Definitions.
Sec. 202. Carbon conservation program.
Sec. 203. Carbon Conservation Fund.
TITLE III—Rural clean energy resources
Sec. 301. Findings.
Sec. 302. Biorefinery assistance.
Sec. 303. Repowering assistance.
Sec. 304. Rural Energy for America Program.
Sec. 305. Rural Clean Energy Resources Fund.
TITLE IV—Agriculture and forestry research for greenhouse gas
mitigation
Sec. 401. Findings.
Sec. 402. Research and demonstration program.
<enum>I</enum><header display-inline="yes-display-inline">Offset credit program for domestic emission
reductions</header>
<section commented="no" display-inline="no-display-inline" id="idA8F4621D19B9486F945AE87CF9275E0F" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9A59141C6E4045C3A835CD30A4BCD501"><enum>(1)</enum><header display-inline="yes-display-inline">Academy</header><text display-inline="yes-display-inline">The term <term>Academy</term> means the
National Academy of Sciences.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2DC4021D6BCE426B9085EE482E8A2B80"><enum>(2)</enum><header display-inline="yes-display-inline">Administrator</header><text display-inline="yes-display-inline">The term <term>Administrator</term> means
the Administrator of the Environmental Protection Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDADB06D9FBB54E199F5F39774F40EA86"><enum>(3)</enum><header display-inline="yes-display-inline">Advisory Committee</header><text display-inline="yes-display-inline">The term <term>Advisory Committee</term>
means the Greenhouse Gas Emission Reduction and Sequestration Advisory
Committee established under section 102(a)(1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4597BE0FD4E34AB3A9F581C9BD5B9119"><enum>(4)</enum><header display-inline="yes-display-inline">Appropriate official</header><text display-inline="yes-display-inline">The term <term>appropriate official</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4F83532DD4A845ABA806E821986F7DE9"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary, with respect to any domestic
agriculture or forestry offset project; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6E0A3D0DF0DA45F5B32064AB36F86F25"><enum>(B)</enum><text display-inline="yes-display-inline">the Administrator, with respect to all
other offset projects.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA6BBF7486D98452FB932B102DF6ACC44"><enum>(5)</enum><header display-inline="yes-display-inline">Emission reduction</header><text display-inline="yes-display-inline">The term <term>emission reduction</term>
means the reduction, avoidance, destruction, or sequestration of greenhouse gas
emissions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC52A536053324A63BE4E30AF3EECE98B"><enum>(6)</enum><header display-inline="yes-display-inline">Offset
project</header><text display-inline="yes-display-inline">The term <term>offset
project</term> means a project or activity that achieves emission reductions,
and for which offset credits are issued under this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1D1B5BD73C914BA7AAB9EEBABF79BEBC"><enum>(7)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the
Secretary of Agriculture.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idDB840AD36FA34247BF2E90A4BF087617" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Advisory Committee</header>
<subsection commented="no" display-inline="no-display-inline" id="IDf1a3a3fc23094658a397271c823d7d37"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header>
<paragraph commented="no" display-inline="no-display-inline" id="id093C8ECA3D4E425CAB528383EC14D809"><enum>(1)</enum><header display-inline="yes-display-inline">Advisory Committee</header><text display-inline="yes-display-inline">The Secretary and the Administrator shall
jointly establish an advisory committee, to be known as the <quote>Greenhouse
Gas Emission Reduction and Sequestration Advisory Committee</quote>, to provide
scientific and technical advice on the establishment and implementation of an
offset project program with respect to offset projects under the jurisdiction
of the Secretary and the Administrator.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1930B1842DE541559DAE67BA5EF7CF07"><enum>(2)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">In addition to the authority of this
section, the Administrator and the Secretary shall use existing authority
under, as appropriate—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id09262E7E2C3443FF9D4E8E67B3456ABD"><enum>(A)</enum><text display-inline="yes-display-inline">the Clean Air Act (42 U.S.C. 7401 et
seq.);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF8C5ECE04319457199B5C5527A816419"><enum>(B)</enum><text display-inline="yes-display-inline">the Federal Advisory Committee Act (5
U.S.C. App.); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id405E45C95EEE40E8B7913FE55FCA5709"><enum>(C)</enum><text display-inline="yes-display-inline">section 1245 of the Food Security Act of
1985 (16 U.S.C. 3845).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDa706a8330da44d90bd62db7dd2803f33"><enum>(b)</enum><header display-inline="yes-display-inline">Membership</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9B7F0C94BCB540A885D585B6D29C673D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Advisory Committee shall be composed of
not less than 9 and not more than 15 individuals with relevant education,
training, and experience, selected jointly by the Secretary and the
Administrator, who shall be—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4DB75D2AE41E4C73B376BF899462E72E"><enum>(A)</enum><text display-inline="yes-display-inline">identified by the Academy;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC70126EB16AF4BF797AEB73F86714343"><enum>(B)</enum><text display-inline="yes-display-inline">representative of land grant universities,
academia, business, nongovernmental organizations, and Federal, State, and
local government; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA0BF6B0FF81A4B2E9D2FB9C6CB08BA0D"><enum>(C)</enum><text display-inline="yes-display-inline">experts with background and experience in
agriculture or forestry.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCF86285353AA4D87ACB6115504BA35E7"><enum>(2)</enum><header display-inline="yes-display-inline">Requirement</header><text display-inline="yes-display-inline">Not more than <fraction>1/3</fraction> of
the members of the Advisory Committee may be officers or employees (including
contractors) of any Federal agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB24D11E1E20D4B2395171A2E56662091"><enum>(3)</enum><header display-inline="yes-display-inline">Term</header><text display-inline="yes-display-inline">A member—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idF016FE79EC2A4ECB8B30B63E14832D7E"><enum>(A)</enum><text display-inline="yes-display-inline">shall be appointed to the Advisory
Committee for a term of 3 years (except for initial terms for which members may
be appointed for a term of 4 or 5 years to allow staggering); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1B104A05B5BF4E97808FC14BB8B30B84"><enum>(B)</enum><text display-inline="yes-display-inline">may be reappointed for 1 additional 3-year
term (which may directly follow a first term), at the discretion of the
Secretary and the Administrator.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF9EBBD586A6D43A2814C9D7D8FAF76A8"><enum>(4)</enum><header display-inline="yes-display-inline">Vacancies</header><text display-inline="yes-display-inline">A vacancy on the Advisory Committee—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA9631872155B4CE58B499962B1D0217B"><enum>(A)</enum><text display-inline="yes-display-inline">shall not affect the powers of the Advisory
Committee; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID22AE9E5E9568490B908023D1C2BCBD2E"><enum>(B)</enum><text display-inline="yes-display-inline">shall be filled in the same manner as the
original appointment was made.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDED55AC0EF5C749C293B8CB5FAD68FE4C"><enum>(5)</enum><header display-inline="yes-display-inline">Initial meeting</header><text display-inline="yes-display-inline">Not later than 30 days after the date on
which all members of the Advisory Committee have been appointed, the Advisory
Committee shall hold the initial meeting of the Advisory Committee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD209FD1ED0F9443ABD8B94A9D757B60B"><enum>(6)</enum><header display-inline="yes-display-inline">Meetings</header><text display-inline="yes-display-inline">The Advisory Committee shall meet at the
call of the Chairperson, with the approval of the designated Federal
officer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDFA8C485DEF7E44919228ECD7C7403119"><enum>(7)</enum><header display-inline="yes-display-inline">Quorum</header><text display-inline="yes-display-inline">A majority of the members of the Advisory
Committee shall constitute a quorum, but a lesser number of members may hold
hearings.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6519874BE3AA4EBB85FE765C9F436A04"><enum>(8)</enum><header display-inline="yes-display-inline">Chairperson</header><text display-inline="yes-display-inline">The Secretary and the Administrator shall
jointly select a Chairperson of the Advisory Committee from among the members
of the Advisory Committee.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC3405A7928CF42CD9AAEB6CA47A01E94"><enum>(c)</enum><header display-inline="yes-display-inline">Expertise</header><text display-inline="yes-display-inline">On approval of the Secretary and the
Administrator, the Advisory Committee may seek outside expertise, as necessary,
and form subcommittees or workgroups for any purpose consistent with this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDf3aee881c6da40c4b209337d1853d900"><enum>(d)</enum><header display-inline="yes-display-inline">Duties</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7D186621B8FE490689326A0D5EC2FDD9"><enum>(1)</enum><header display-inline="yes-display-inline">Reports on offset project
categories</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDf7b61398acc34348ae8b2f7319740772"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date on
which all initial members of the Advisory Committee have been appointed, the
Advisory Committee shall submit to the Secretary and the Administrator and make
available to the public a report containing recommendations regarding the types
of offset project categories pursuant to section 104, and relevant scientific
data regarding practices for those categories, that should be considered to be
eligible to generate offset credits under this title.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe3c6cf29d6734980bf3bc62738784919"><enum>(B)</enum><header display-inline="yes-display-inline">Factors</header><text display-inline="yes-display-inline">In developing the recommendations described
in subparagraph (A), the Advisory Committee shall take into account—</text>
<clause commented="no" display-inline="no-display-inline" id="ID8823d5d4407b4332ab3db70414dec5d8"><enum>(i)</enum><text display-inline="yes-display-inline">the extent to which, as of the date of
submission of the report, the project or activity types within each
category—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID5fa6b3c82ed143e48058d7b0c3ebfb8c"><enum>(I)</enum><text display-inline="yes-display-inline">are required by law; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID90cc89022e1c46549310b7cc52f6e136"><enum>(II)</enum><text display-inline="yes-display-inline">represent business-as-usual practices for
an industry sector or facility type;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDb9db7be30a844393898814a4b8990d6d"><enum>(ii)</enum><text display-inline="yes-display-inline">the potential for accurate quantification
of net emission reductions;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID030a8c0b0ca8420a833f27a202d8a8dd"><enum>(iii)</enum><text display-inline="yes-display-inline">any corresponding environmental benefits or
disadvantages; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID481966f1d04147a9a75ca6de853cce41"><enum>(iv)</enum><text display-inline="yes-display-inline">the potential supply of emission reductions
available from the category.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf0eeebbc0d23408a9fa05436a6e10e3d"><enum>(C)</enum><header display-inline="yes-display-inline">Categories for consideration</header><text display-inline="yes-display-inline">In determining which categories of
activities to recommend under subparagraph (A), the Advisory Committee shall
consider, at a minimum, with respect to each category and the jurisdiction of
the Secretary and Administrator, as appropriate, project types that are listed
under section 104.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4af7de30e8d242db8289ec2294fa5a60"><enum>(D)</enum><header display-inline="yes-display-inline">Methodologies</header><text display-inline="yes-display-inline">For each recommended offset project
category, the Advisory Committee may recommend 1 or more methodologies for use
with any project type.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5b5d8358548f4a7f895622a6d713c3c2"><enum>(2)</enum><header display-inline="yes-display-inline">Reports on emission reduction
integrity</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id263F6FC68F56470C85AB0D6D2360801D"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 180 days before the date of
promulgation of any regulations relating to offsets required under a Federal
law enacted for the purpose of regulating greenhouse gas emissions, and
periodically thereafter, using the best available science, the Advisory
Committee shall jointly provide to the Secretary and the Administrator,
respectively, and submit for publication a report containing priority
recommendations on how to ensure the emission reduction integrity of the offset
projects under this title, including with regard to—</text>
<clause commented="no" display-inline="no-display-inline" id="ID2575991a2737434d8e49b5c048d23b1d"><enum>(i)</enum><text display-inline="yes-display-inline">quantifying credits for net emission
reductions resulting from offset projects;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID770886173255460d8a602a6991ffad04"><enum>(ii)</enum><text display-inline="yes-display-inline">determining additionality,
including—</text>
<subclause commented="no" display-inline="no-display-inline" id="id257323C5A3B041E1BC40B2267D79E5C5"><enum>(I)</enum><text display-inline="yes-display-inline">the application of standards that are
specific to each project type; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idE2917B10617345F4A3F15B48B5099BFD"><enum>(II)</enum><text display-inline="yes-display-inline">the use of methodologies that account for
business-as-usual practices for an industry or facility type;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID5983db6383cf4b47a450a5ffb18e701e"><enum>(iii)</enum><text display-inline="yes-display-inline">accounting for economic and emission
leakage associated with project activities, including the application of
sector-specific leakage factors in order to reflect net changes in emissions
and sequestration resulting from the project;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID78f79c4af2c64487b5c990bf1a757925"><enum>(iv)</enum><text display-inline="yes-display-inline">accounting for uncertainty and application
of uncertainty factors;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID67000b17bb414e868dd96cb888acfdeb"><enum>(v)</enum><text display-inline="yes-display-inline">methods to measure, verify, and otherwise
ensure project results with sufficient scientific integrity to meet the
objectives of the program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID220a476db7bb45fc8adc3826352e0878"><enum>(vi)</enum><text display-inline="yes-display-inline">establishing appropriate insurance
requirements, buffer reserves, or other options to address the risk of
reversals by project type and conditions;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7D3B830917A64F3C8046C24929AE59B8"><enum>(vii)</enum><text display-inline="yes-display-inline">minimizing administrative costs and burdens
on project representatives; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDa5559700161f4aa4915fe4fda13e92f4"><enum>(viii)</enum><text display-inline="yes-display-inline">meeting any other criteria the Advisory
Committee recommends be applied to ensure that projects assist in meeting the
overall objectives of a Federal law enacted for the purpose of regulating
greenhouse gas emissions.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEFB6B4F344FA40698D3A029DBA42DD4A"><enum>(B)</enum><header display-inline="yes-display-inline">Response</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
receipt of a report under subparagraph (A), the Secretary and the Administrator
shall jointly make available to the public a response to the report.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDF07ACC39769C491DB68AA3328182CA9D"><enum>(e)</enum><header display-inline="yes-display-inline">Powers</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID1618657E01794A3CBD30B1CA7C721E46"><enum>(1)</enum><header display-inline="yes-display-inline">Hearings</header><text display-inline="yes-display-inline">The Advisory Committee may, with the
consent of the Secretary and the Administrator, hold such hearings, meet and
act at such times and places, take such testimony, and receive such evidence as
the Advisory Committee considers advisable to carry out this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9F2DFF4FD67B4848850FB6A9D5163A41"><enum>(2)</enum><header display-inline="yes-display-inline">Information from Federal agencies</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDC441D234895B4B08BF9511974F6BE278"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Advisory Committee may secure directly
from a Federal agency such information as the Advisory Committee considers
necessary to carry out this section.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDAD56F68235BE45E78F03E5540FE7301A"><enum>(B)</enum><header display-inline="yes-display-inline">Provision of information</header><text display-inline="yes-display-inline">On request of the Chairperson of the
Advisory Committee, the head of the agency shall provide the information to the
Advisory Committee.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID628DFFD3FCE443AFBBA043B8634B7263"><enum>(3)</enum><header display-inline="yes-display-inline">Postal services</header><text display-inline="yes-display-inline">The Advisory Committee may use the United
States mails in the same manner and under the same conditions as other agencies
of the Federal Government.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDCF2AFC6016204C4992172D7E1050ACA9"><enum>(f)</enum><header display-inline="yes-display-inline">Advisory Committee personnel
matters</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID40CD19C2755743E0A877328695537261"><enum>(1)</enum><header display-inline="yes-display-inline">Compensation of members</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1A40196105E04287A11950D7E5282201"><enum>(A)</enum><header display-inline="yes-display-inline">Non-federal employees</header><text display-inline="yes-display-inline">A member of the Advisory Committee who is
not an officer or employee of the Federal Government shall be compensated at a
rate equal to the daily equivalent of the annual rate of basic pay prescribed
for level IV of the Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during which the member is
engaged in the performance of the duties of the Advisory Committee.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDF170DB3F2EB24A4DA5FE6C27B54F1CFD"><enum>(B)</enum><header display-inline="yes-display-inline">Federal employees</header><text display-inline="yes-display-inline">A member of the Advisory Committee who is
an officer or employee of the Federal Government shall serve without
compensation in addition to the compensation received for the services of the
member as an officer or employee of the Federal Government.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2806C7831D624B0282FF382049442273"><enum>(2)</enum><header display-inline="yes-display-inline">Travel expenses</header><text display-inline="yes-display-inline">A member of the Advisory Committee shall be
allowed travel expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of chapter 57 of
title 5, United States Code, while away from the home or regular place of
business of the member in the performance of the duties of the Advisory
Committee.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDb21c244466644003918c1f3fbf9e0fc0" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Establishment of program to credit emission
reductions from uncapped domestic sources and sinks</header>
<subsection commented="no" display-inline="no-display-inline" id="IDbf83658514ae4683a335e877e9b73cbf"><enum>(a)</enum><header display-inline="yes-display-inline">Program</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1BFA8D6D199B4590938E6F241E5D2BC7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
enactment of this Act, the Administrator and the Secretary shall, in accordance
with this title, establish a program to govern the creation of credits from
emission reductions from uncapped domestic sources and sinks while ensuring
that offset credits represent additional greenhouse gas emission reductions in
accordance with section 105.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id254C8F5AF05D4FA1A19F13317234A750"><enum>(2)</enum><header display-inline="yes-display-inline">Emission reduction integrity;
rulemaking</header><text display-inline="yes-display-inline">In carrying out
the program under this section, the Administrator and the Secretary shall, to
the maximum extent practicable—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id838449CCCE4444C9A845885A6FCD005C"><enum>(A)</enum><text display-inline="yes-display-inline">protect the emission reduction integrity of
the program while minimizing burdens on offset project representatives;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF567EE44622D467683921BB9E5883C61"><enum>(B)</enum><text display-inline="yes-display-inline">prioritize rulemaking for activities that
present the fewest technical challenges and greatest certainty of net
atmospheric benefit, considering the recommendations of—</text>
<clause commented="no" display-inline="no-display-inline" id="id568C8386C88146B391A3E03F220F06A9"><enum>(i)</enum><text display-inline="yes-display-inline">the Advisory Committee submitted under
section 102;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD48C470229B245BF832D3BC8E6BF8879"><enum>(ii)</enum><text display-inline="yes-display-inline">the Department of the Interior;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDd5b40abeea8c4e6e961b4efb64299701"><enum>(iii)</enum><text display-inline="yes-display-inline">the Secretary of Commerce, with respect to
any coastal, ocean or marine offset project; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8DED837BFDCC41639226A9E5D4345CF1"><enum>(iv)</enum><text display-inline="yes-display-inline">other Federal agencies;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3987c12979f745df916430cecdcfe81e"><enum>(C)</enum><text display-inline="yes-display-inline">ensure that consistent requirements and
procedures apply in the case of offset project types that fall within the
respective purviews of the Administrator and the Secretary; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDbd9fc231bb5f4449879f9dd916931008"><enum>(D)</enum><text display-inline="yes-display-inline">ensure that the program meets the
requirements of section 105.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1240be3f2f5842d9b300341a47ea0a55"><enum>(b)</enum><header display-inline="yes-display-inline">Registry</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
enactment of this Act, the Administrator, in consultation with the Secretary
and the heads of other appropriate Federal agencies, shall establish a registry
(or expand an established emission allowance registry) for use in recording
approved credits issued under this section to reflect emission reductions from
uncapped sources and sinks.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID2c961fe326074f3e9ffe5871dcd6fac3"><enum>(c)</enum><header display-inline="yes-display-inline">Department of Agriculture
role</header><text display-inline="yes-display-inline">In addition to the
duties described in subsection (a) and section 1245 of the Food Security Act of
1985 (16 U.S.C. 3845), the Secretary shall, with respect to relevant or
appropriate projects relating to emission reductions from uncapped sources and
sinks in agriculture and forestry—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID41c6aaab0075446c96df442d051555a9"><enum>(1)</enum><text display-inline="yes-display-inline">gather inventory data on carbon stocks and
fluxes to inform rulemaking with respect to agricultural and forestry
sectors;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9a2555dd00fc4cbbacb81e4b2a60d98d"><enum>(2)</enum><text display-inline="yes-display-inline">administer as the lead agency the duties
prescribed under sections 104, 105, 106, and 109 for agricultural and forestry
offset projects;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd47ec73e9632465a9ccae7463273919a"><enum>(3)</enum><text display-inline="yes-display-inline">prepare the Forest Service, the Natural
Resources Conservation Service, the Farm Service Agency, and other applicable
entities to make available to landowners and project representatives carbon
sequestration data and other information on agricultural and forest land that
are necessary to assist landowners and project representatives in estimating
carbon sequestration rates by land area or appropriate region, forest type,
soil type, and other appropriate factors;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID16a1ebd5dc0242beaabe0825b3e0673d"><enum>(4)</enum><text display-inline="yes-display-inline">make available technical assistance to
landowners undertaking activities in preparation for the sale of carbon credits
derived from activities on the land of the landowners, including work and
opportunities with aggregators and third-party verifiers pursuant to section
107;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID142838d8106c44b3aa8b4b14d72f7392"><enum>(5)</enum><text display-inline="yes-display-inline">take into consideration expanding existing
training and accreditation programs of the Natural Resources Conservation
Service for third-party technical service providers to provide training and
accreditation for third-party verifiers pursuant to section 107;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1949bd9ba870486eb58fc935e51a1e98"><enum>(6)</enum><text display-inline="yes-display-inline">conduct, as appropriate, outreach,
education, and training through the extension services of land-grant colleges
and universities; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDfae9069dc01543bca4ce0c789fec4ad2"><enum>(7)</enum><text display-inline="yes-display-inline">promulgate such regulations as are
necessary to carry out the functions of the Secretary under this title.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID2ed68021b152461787d42b7454eb0dcb" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Eligible projects</header>
<subsection commented="no" display-inline="no-display-inline" id="IDd3ece7a557ec4550bfbc06df2c6d93e1"><enum>(a)</enum><header display-inline="yes-display-inline">List of eligible project
types</header><text display-inline="yes-display-inline">Each appropriate
official shall establish and maintain a list of types of offset projects
eligible to generate offset credits under this title.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDf4dbdfca96054ed8ac759b71b76ca979"><enum>(b)</enum><header display-inline="yes-display-inline">Initial list of project types</header>
<paragraph commented="no" display-inline="no-display-inline" id="idBF45CD2A48EF483682D685050A736C8F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each appropriate official shall establish
an initial list of eligible project types under subsection (a).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAB973F88B5354430BF81CE19D33C8FF9"><enum>(2)</enum><header display-inline="yes-display-inline">Emission reduction activities</header><text display-inline="yes-display-inline">The appropriate official shall include on
the list required under this subsection, at a minimum, activities that provide
emission reductions and meet the requirement of section 105, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID37c989dba66540beb6c5f931152a7953"><enum>(A)</enum><text display-inline="yes-display-inline">methane collection at mines, landfills, and
natural gas systems;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id34370CE4FE964D599479E358E157B6F3"><enum>(B)</enum><text display-inline="yes-display-inline">fugitive emissions from the oil and gas
sector that reduce greenhouse gas emissions that would otherwise have been
flared or vented;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID352cbc198e944e08befae51bb81966aa"><enum>(C)</enum><text display-inline="yes-display-inline">nonlandfill projects that involve
collection, combustion, or avoidance of emissions from organic waste streams
that would have otherwise emitted methane into the atmosphere, including manure
management, composting, or anaerobic digestion projects;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7e3d48ce0043472cbde9acbe6d15e6f2"><enum>(D)</enum><text display-inline="yes-display-inline">projects involving afforestation or
reforestation of acreage not forested as of January 1, 2009;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8a23eab6e9e6448287479df66b761eaf"><enum>(E)</enum><text display-inline="yes-display-inline">forest management resulting in an increase
in forest carbon stores, including harvested wood products;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4a1284069b5b4a74ac23d730b77124b0"><enum>(F)</enum><text display-inline="yes-display-inline">projects that capture and geologically
sequester uncapped greenhouse gas emissions with or without enhanced oil or
methane recovery in active or depleted oil, carbon dioxide, natural gas
reservoirs or other geological formations;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDeeadbc44864c492996497484c078c64b"><enum>(G)</enum><text display-inline="yes-display-inline">recycling and waste minimization
projects;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID99318bdf7f394801841b565dd6a83e62"><enum>(H)</enum><text display-inline="yes-display-inline">projects to abate the production of nitrous
oxide at nitric acid production facilities and other stationary sources;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDc185531f48e94ecf92104f8527ade2dd"><enum>(I)</enum><text display-inline="yes-display-inline">projects for biochar production and
use;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID081ba8cc0589416581f100743d0e75ff"><enum>(J)</enum><text display-inline="yes-display-inline">projects that destroy ozone-depleting
substances that have been phased out of production;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID08726755c3f34c42bc6d72aea424eb6f"><enum>(K)</enum><text display-inline="yes-display-inline">projects in communities reliant on small,
isolated electricity grids involving conversion from diesel to renewable
sources of energy, including electricity generation facilities with emissions
below required levels for compliance with any limitation on district or home
heating in those communities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDabfb4b6c48e441a5b45a508a174cb4e0"><enum>(L)</enum><text display-inline="yes-display-inline">projects relating to agricultural,
grassland, and rangeland sequestration and management practices,
including—</text>
<clause commented="no" display-inline="no-display-inline" id="IDdb72577f8d0143728254e936a222e1b2"><enum>(i)</enum><text display-inline="yes-display-inline">altered tillage practices, including the
avoided abandonment of conservation practices;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDf2746775422545d7aa1b0b741c277837"><enum>(ii)</enum><text display-inline="yes-display-inline">winter cover cropping, continuous cropping,
and other means to increase biomass returned to soil in lieu of planting
followed by fallowing;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID6ca470a48b65489cb19bee6e920e6fc7"><enum>(iii)</enum><text display-inline="yes-display-inline">the use of technology or practices to
improve the management of nitrogen fertilizer use, including slow and
controlled-release fertilizers (including absorbed, coated, occluded, or
reacted fertilizers) and stabilized nitrogen fertilizers (including urease,
nitrification inhibitors, and nitrogen stabilizers) that are recognized by
State regulators of fertilizers;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDc7bc89212f124e98aea0339652dcafc8"><enum>(iv)</enum><text display-inline="yes-display-inline">reduction in methane emissions from rice
cultivation;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID92dd4e707b484f009858206333024202"><enum>(v)</enum><text display-inline="yes-display-inline">reduction in carbon emissions from
organically managed soils and farming practices used on certified organic
farms;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDf2aa7b50d16a4c9eb04af58296b75646"><enum>(vi)</enum><text display-inline="yes-display-inline">reduction in greenhouse gas emissions due
to changes in animal management practices, including dietary modifications and
pasture-based livestock systems;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDa6d095c4d35e4195a3cfdaa6b534088d"><enum>(vii)</enum><text display-inline="yes-display-inline">resource-conserving crop rotations of at
least 3 years; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID833400177c714b9bada5de82dcdcf192"><enum>(viii)</enum><text display-inline="yes-display-inline">practices that will increase the
sequestration of carbon in soils on cropland, hayfields, native and planted
grazing land, grassland, or rangeland;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9655e9f88d95489192ec06ef1007c875"><enum>(M)</enum><text display-inline="yes-display-inline">projects for changes in carbon stocks
attributed to land management change, including—</text>
<clause commented="no" display-inline="no-display-inline" id="ID8b84ba9c55c84009a56609c701e47a4f"><enum>(i)</enum><text display-inline="yes-display-inline">improved management or restoration of
cropland, grassland, rangeland (including grazing practices), and forest
land;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID7cc429842c474165b39d2a27f0edaf58"><enum>(ii)</enum><text display-inline="yes-display-inline">avoided conversion that would otherwise
release carbon stocks;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDba714a05288540649ce6fb8fffc0ede0"><enum>(iii)</enum><text display-inline="yes-display-inline">reduced deforestation;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID638d25bf25a449869344c76a80b384fd"><enum>(iv)</enum><text display-inline="yes-display-inline">management and restoration of peatland or
wetland;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDef256a59fe8f4e2a99d2ed2c0ef15726"><enum>(v)</enum><text display-inline="yes-display-inline">urban tree-planting, landscaping, greenway
construction, and maintenance;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDea95954c805d4925bc8b6f1a974b1c1f"><enum>(vi)</enum><text display-inline="yes-display-inline">sequestration of greenhouse gases through
management of tree crops;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID9d7185b64e464a05aa2b889c483462ad"><enum>(vii)</enum><text display-inline="yes-display-inline">adaptation of plant traits or new
technologies that increase sequestration by forests; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID04ed20140ca9466c8e897838252ee2af"><enum>(viii)</enum><text display-inline="yes-display-inline">projects to restore or prevent the
conversion, loss, or degradation of vegetated marine coastal habitats;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDd3a305addce943e4bfc92ea0a421dfb0"><enum>(N)</enum><text display-inline="yes-display-inline">projects that reduce emission reductions
from manure and effluent, including—</text>
<clause commented="no" display-inline="no-display-inline" id="IDf6aa904ba0114ec888d2297a7fee27c7"><enum>(i)</enum><text display-inline="yes-display-inline">waste aeration;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDb6d7c3dbbfda4ce4b2af328702463710"><enum>(ii)</enum><text display-inline="yes-display-inline">biogas capture and combustion; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDd434327e20a04377a095792e69570e29"><enum>(iii)</enum><text display-inline="yes-display-inline">improved management or application to
agricultural land; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe994a6fd75b14f15a2b170e2265dff6f"><enum>(O)</enum><text display-inline="yes-display-inline">projects that reduce the intensity of
greenhouse gas per unit of agricultural production.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9058aefd5c1945e1a2b148984cb27804"><enum>(c)</enum><header display-inline="yes-display-inline">Modifications to the lists of eligible
types of offset project</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1B8230A4FC6B4267AD067DF519D7A82D"><enum>(1)</enum><header display-inline="yes-display-inline">Modifications</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id7F14B07E176D4090972C442CD8264EE7"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At any time, after taking into
consideration any relevant recommendations of the Advisory Committee, the
appropriate official may by regulation determine whether to add additional
types of projects, pursuant to subsection (a), to the list of eligible projects
of the appropriate official under subsection (a).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDd6d600ccebae45dd900440c42adfdf25"><enum>(B)</enum><header display-inline="yes-display-inline">Criterion for addition</header><text display-inline="yes-display-inline">The appropriate official shall add a type
of project to an eligible list in accordance with subparagraph (A) only if the
type of project to be added is capable of generating emission reductions that
meet the requirements under this title.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7399496fc9ef421da8e34273cc70d0a1"><enum>(C)</enum><header display-inline="yes-display-inline">Petition for addition</header>
<clause commented="no" display-inline="no-display-inline" id="idEC5F12AFDA084D20BB79DC0B00F27FE1"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any person may petition the appropriate
official at any time to add a type of project to a list described in subsection
(a).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id9A7C6D9E6B544555932869C2070BD265"><enum>(ii)</enum><header display-inline="yes-display-inline">Response</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
receipt of the petition, the appropriate official shall respond to the
petition.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID65dcc45bec1c493fa476ef0c47cc3aa4"><enum>(2)</enum><header display-inline="yes-display-inline">Removals from the list</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id06E9331683C942F388FC60BDCCCC5D5C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than January 1, 2015, and every 3
years thereafter, the appropriate official shall determine whether to remove
types of projects, pursuant to subsection (b), from the eligible list of the
appropriate official.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0B33C08BE82948E5B1F6422C3785A427"><enum>(B)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">The appropriate official may remove a type
of project from the eligible list of the appropriate official only—</text>
<clause commented="no" display-inline="no-display-inline" id="id030CB1B5A3B4402F8634716316F87A9A"><enum>(i)</enum><text display-inline="yes-display-inline">by regulation; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID70493489826441bd85078211d9a3069b"><enum>(ii)</enum><text display-inline="yes-display-inline">if—</text>
<subclause commented="no" display-inline="no-display-inline" id="idC846BDBC7778404FBBFE62303F877B79"><enum>(I)</enum><text display-inline="yes-display-inline">the type of project has become required by
law (including a regulation);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID44f71949ba3a4072b151f4172a1353b6"><enum>(II)</enum><text display-inline="yes-display-inline">the agency with responsibility for
administering the project determines that the environmental harm resulting from
the type of project exceeds the greenhouse gas emission abatement benefits of
the project;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idCF3997E5E09348B094B27353CF56DFB8"><enum>(III)</enum><text display-inline="yes-display-inline">the project activity has become
predominant, and would remain predominant even without the availability of
offset credits; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID7f4946347c6e453792ad7ac78a2b3cf7"><enum>(IV)</enum><text display-inline="yes-display-inline">the project type does not meet the
requirements of this title.</text>
</subclause></clause></subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID1fc7b681f0604c0698fe40e6c10eb6de" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Requirements for offset projects</header>
<subsection commented="no" display-inline="no-display-inline" id="H7E4184ECA39641F58402AF9FA70130F4"><enum>(a)</enum><header display-inline="yes-display-inline">Methodologies</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
inclusion of a project type on an eligible list under section 104(a), the
appropriate official shall by regulation establish for that project type 1 or
more standardized methodologies (giving priority to projects with
well-established methodologies) or performance standards that can be developed
so that the project type can meet the requirements of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1F3C3E5360394A0B9665BFD53A6C0F1F"><enum>(1)</enum><text display-inline="yes-display-inline">for use in determining the additionality of
greenhouse gas emission reductions achieved by an offset project of that type,
that ensures, at a minimum, that any greenhouse gas emission reduction is
considered additional only to the extent that the emission reduction results
from activities that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDDE3D39AB6F3416A96A208DD2A0F6535"><enum>(A)</enum><text display-inline="yes-display-inline">are not required by or undertaken to comply
with any law (including any regulation or consent order, but excluding any
contract);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H052A34BAF72046B7B6BD9F4B5F7EDD32"><enum>(B)</enum><text display-inline="yes-display-inline">were not commenced prior to January 1,
2009, except for offset project activities described in section 110 that
commenced after January 1, 2001, and were registered as of the date of
enactment of this Act under an offset program with respect to which the
Administrator and the Secretary have made an affirmative determination under
paragraph (2) or (3) of section 110(a) or section 110(e); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF1F834DA55DF4C6EB39D8C74D972BFAA"><enum>(C)</enum><text display-inline="yes-display-inline">exceed the activity baseline established
under subparagraph (B);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H83843D94FA9443B99590F1964D7B6C3D"><enum>(2)</enum><text display-inline="yes-display-inline">for use in establishing activity baselines
for offset projects of that type, which activity baselines shall be established
by the appropriate official to reflect a conservative estimate of
business-as-usual performance or practices for the relevant type of activity
such that the baseline provides a science-based margin of safety to ensure the
emission integrity of offsets calculated in reference to the baseline,
including (in the case of an agricultural or forestry offset project) the
establishment by the Secretary of a temporary baseline for offset projects of
that type to establish a date after which offset credits may be calculated with
respect to the baseline that may reflect a continuation of practices in place
prior to the adoption of the offset project;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8460F4C45F6E491CB3406351AA99659C"><enum>(3)</enum><text display-inline="yes-display-inline">for use in determining the extent to which
greenhouse gas emission reductions achieved by an offset project of that type
exceed a relevant activity baseline, including protocols for use in monitoring
and accounting for uncertainty; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE5DC02555C2D44E798EBA15F993DAFC8"><enum>(4)</enum><text display-inline="yes-display-inline">for use in accounting for and mitigating
potential leakage, if any, from an offset project of that type, taking
uncertainty into account.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1AFA6605F8C14DBCAC5DEDF6F16702F5"><enum>(b)</enum><header display-inline="yes-display-inline">Accounting for reversals</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA741F466A5A14DC7AAF57891A32371F3"><enum>(1)</enum><header display-inline="yes-display-inline">Accounting</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id43AA754A80174BE99AF5031F9F8CE24A"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each type of sequestration project
listed under section 104, the appropriate official shall prescribe such
mechanisms to ensure that any sequestration with respect to which an offset
credit is issued under this title results in a net increase in sequestration,
and that a full and transparent account is taken of any actual or potential
reversal of the sequestration, with an adequate margin of safety for the
complete term of an offset project agreement approved under section 106.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id57B93A6BEBA340D78BA239B3F29C3FC0"><enum>(B)</enum><header display-inline="yes-display-inline">Minimum mechanisms</header><text display-inline="yes-display-inline">The appropriate official shall prescribe at
least 1 of the following mechanisms to meet the requirements of this
paragraph:</text>
<clause commented="no" display-inline="no-display-inline" id="HC61A425602374A46941DE79F2F9A0C31"><enum>(i)</enum><text display-inline="yes-display-inline">An offsets reserve, pursuant to paragraph
(2).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4B421BDD61B34215BC5A80DD0B42F47E"><enum>(ii)</enum><text display-inline="yes-display-inline">Insurance that provides for purchase and
provision to the appropriate official for retirement of a quantity of offset
credits or emission allowances equal in number to the tons of carbon dioxide
equivalents of greenhouse gas emissions released due to reversal.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFB5944CB2C1A4B39A7DCE3FB057DC95F"><enum>(iii)</enum><text display-inline="yes-display-inline">Another mechanism that the appropriate
official determines satisfies the requirements of this title.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA83154CDF19947EDA5E08CF128ADECE7"><enum>(2)</enum><header display-inline="yes-display-inline">Offsets reserve</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H24FE513F88F74D5BB69E5D73BA267676"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An offsets reserve referred to in paragraph
(1)(B)(i) is a program under which, before issuance of offset credits under
this title, the appropriate official shall—</text>
<clause commented="no" display-inline="no-display-inline" id="idE17687AA68C74EE8BDAB7C4397406774"><enum>(i)</enum><text display-inline="yes-display-inline">subtract and reserve from the quantity to
be issued a quantity of offset credits based on the risk of reversal;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id61A538119D5C4666BEB870F452700989"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idC845F5698E6E455EBF9D929ED3BD5F29"><enum>(I)</enum><text display-inline="yes-display-inline">hold those reserved offset credits in the
offsets reserve; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id7D045B5210FA4A2AAB23A6612E182A37" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">register the holding of the reserved offset
credits in the registry established under section 103(b).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3201DF885D964ED79CC92F11C5A49375"><enum>(B)</enum><header display-inline="yes-display-inline">Project reversal</header>
<clause commented="no" display-inline="no-display-inline" id="HBF974DF6338E43D7B8D0C605009B5FE0"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If a reversal has occurred with respect to
an offset project for which offset credits are reserved under this paragraph,
the appropriate official shall remove offset credits from the offsets reserve
and cancel the credits to fully account for the tons of carbon dioxide
equivalent that are no longer sequestered.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H32D51124DAF44EF88AEFD4F35BD585F6"><enum>(ii)</enum><header display-inline="yes-display-inline">Intentional reversals</header><text display-inline="yes-display-inline">If the appropriate official determines that
a reversal was intentional, the offset project representative for the relevant
offset project shall place into the offsets reserve a quantity of offset
credits, or combination of offset credits and emission allowances, equal in
number to 150 percent of the number of reserve offset credits that were
canceled due to the reversal pursuant to clause (i).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA7AE984BFC941F4A94F554332FCC755"><enum>(C)</enum><header display-inline="yes-display-inline">Use of reserved offset
credits</header><text display-inline="yes-display-inline">Offset credits placed
into the offsets reserve under this paragraph may not be used to comply with
other obligations under a Federal law enacted for the purpose of regulating
greenhouse gas emissions.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF04B6AD758104D038A4C07A242444121"><enum>(3)</enum><header display-inline="yes-display-inline">Carbon agreements and land use
flexibility</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDd1d8e162cc5e46519d36f57aeb221d14"><enum>(A)</enum><header display-inline="yes-display-inline">Applicability</header>
<clause commented="no" display-inline="no-display-inline" id="id83E68E45D66744B382849ED2A9D46F76"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">With respect to an agricultural, forestry,
or any other sequestration practice listed under section 104 that sequesters
greenhouse gases, the Secretary may develop mechanisms in addition to
paragraphs (1) and (2) in order to ensure that less-than-perpetual
sequestration agreements under this subsection meet the requirements of this
section and maintain the integrity of the overall emission reduction targets of
a Federal law enacted for the purpose of regulating greenhouse gas
emissions.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5A94A797764E407A97A428721253F62D"><enum>(ii)</enum><header display-inline="yes-display-inline">Mechanisms</header><text display-inline="yes-display-inline">The mechanisms shall include—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDf7f82d8d80f94c25ae6c36702d659c85"><enum>(I)</enum><text display-inline="yes-display-inline">a specific duration of the intended
sequestration activity;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID49545c14ca184ffe91a2b6db980969f9"><enum>(II)</enum><text display-inline="yes-display-inline">clear liability for carbon
accounting;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id5F2F7267E76240B891B8E0ECB0C1A28A"><enum>(III)</enum><text display-inline="yes-display-inline">sequential activities;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID71e6f4fd8d9247a8819b971a7be33dc1"><enum>(IV)</enum><text display-inline="yes-display-inline">adequate monitoring and accounting systems
to maintain the emission reduction targets;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idC0E076D4BF2845DFA011ED9ADCFF5BC1"><enum>(V)</enum><text display-inline="yes-display-inline">carbon easements; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDcdaf415e235d44a282fa52ffa91c2c54"><enum>(VI)</enum><text display-inline="yes-display-inline">any other option that meets the
requirements of this section, as determined by the Secretary.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID03ce2bd5d1324ef0916f03d2faecb317"><enum>(B)</enum><header display-inline="yes-display-inline">Responsibility for accounting</header><text display-inline="yes-display-inline">To account for the termination of any
offset agreement approved under section 106 or the termination of the
sequestration activity, the Secretary may allow the agreement to assign
liability to any part of the agreement for the purposes of carbon
accounting.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE53166F38D5A4809A420BBF36DEAE0D7"><enum>(c)</enum><header display-inline="yes-display-inline">Crediting periods</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8BE57129646549B08A7D50BBBF137705"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each offset project type, the
appropriate official shall specify a crediting period, and establish provisions
for petitions for new crediting periods, in accordance with this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H50ACD0881FDB41208078ED09FD9234CC"><enum>(2)</enum><header display-inline="yes-display-inline">Duration</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id53E5CDEDE9A645288FDD300CD5DB423C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the
crediting period shall be not less than 5 nor greater than 10 years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id80F41577C4084BCC9FDBFD1A784785B3"><enum>(B)</enum><header display-inline="yes-display-inline">Forestry projects</header><text display-inline="yes-display-inline">The crediting period for a forestry offset
project shall not exceed 30 years.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3CA8FAD88026402C90DCDFD1E3FAD72B"><enum>(3)</enum><header display-inline="yes-display-inline">Eligibility</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id462D5D72869448478BA088BF464F7B5C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An offset project shall be eligible to
generate offset credits under this title only during the crediting period of
the offset project.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDFDA2B0E5CEE4925A88E4A2CA65DB189"><enum>(B)</enum><header display-inline="yes-display-inline">Remaining eligibility</header><text display-inline="yes-display-inline">Except as provided in paragraph (4), during
a crediting period described in subparagraph (A), an offset project shall
remain eligible to generate offset credits, subject to the methodologies and
project type eligibility list that applied as of the date of project approval
under section 106.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H187656D90DF94DB480A06FC62E763B2A"><enum>(4)</enum><header display-inline="yes-display-inline">Petition for new crediting period</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id84DA6AC4D9204D51A5AB4D28F315B3D5"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An offset project representative may
petition for a new crediting period to commence after termination of a
crediting period, subject to the methodologies and project type eligibility
list in effect at the time at which the petition is submitted.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id150B4A3246EC402196ACAA5CEDD2AE75"><enum>(B)</enum><header display-inline="yes-display-inline">Timing of submission</header><text display-inline="yes-display-inline">A petition may not be submitted under this
paragraph more than 1 year before the end of the pending crediting
period.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3e748dd081d940a9a9d347ba668deb32"><enum>(C)</enum><header display-inline="yes-display-inline">Response</header><text display-inline="yes-display-inline">The appropriate official shall make a
determination on the petition in accordance with section 106.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4BFDCDFA5FA3408E87189FB7996A0888"><enum>(d)</enum><header display-inline="yes-display-inline">Emission reduction integrity</header><text display-inline="yes-display-inline">In establishing the requirements under this
section, the appropriate official shall apply conservative assumptions or
methods to maximize the probability that the emission reduction integrity of
Federal benchmarks or mandates are not compromised.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3B98CC945C25470C8DBE6F861CD1B756"><enum>(e)</enum><header display-inline="yes-display-inline">Preexisting methodologies</header><text display-inline="yes-display-inline">In promulgating requirements under this
section, the appropriate official shall give due consideration to methodologies
for offset projects existing as of the date of enactment of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDb29d20ce10234a0b91cd19a0f6ce47bd"><enum>(f)</enum><header display-inline="yes-display-inline">Additional benefits</header><text display-inline="yes-display-inline">Nothing in this section precludes an offset
project from meeting the requirements of this section, or from approval under
section 106, only because the relevant activity under section 104 receives an
additional payment from another source for an ecological service other than
emission reductions, including conservation program payments.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID9db2f9c5a6a44d8eba32a72ffb7ab066"><enum>(g)</enum><header display-inline="yes-display-inline">Data collection</header><text display-inline="yes-display-inline">The appropriate official shall collect such
data as are necessary to assess a range of factors relative to the performance
and effects of any offset project type.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID2a72fb4c898941d3adbd4d2b523d30f8" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Approval</header>
<subsection commented="no" display-inline="no-display-inline" id="ID6d00e0fbeacf472e9115ef1af142a4a3"><enum>(a)</enum><header display-inline="yes-display-inline">Project petition</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDe32db3be03464fbb9ab79f963a0e2fe4"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than the date of submission of
the first verification report for an offset project under section 107, the
offset project representative shall submit to the appropriate official a
petition for approval of the offset project.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id600B49BA5FBC46BF8686B43B621ACB9B"><enum>(2)</enum><header display-inline="yes-display-inline">Petition requirements</header><text display-inline="yes-display-inline">As part of the regulations promulgated
under this title, the appropriate official shall include provisions for, and
shall specify, the required components of an offset project approval petition
submitted under this subsection, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idF1ECE039994249B882A62B94A53CA63B"><enum>(A)</enum><text display-inline="yes-display-inline">designation of an offset project
representative; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4139000645ED4C51843B00D246C830EC"><enum>(B)</enum><text display-inline="yes-display-inline">any other information that the appropriate
official considers to be necessary—</text>
<clause commented="no" display-inline="no-display-inline" id="id2CBC79FA96D140F9B40509A00FC65A34"><enum>(i)</enum><text display-inline="yes-display-inline">to determine whether the offset project
meets the established criteria under this section; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id210800CDF3F0439A801E9208FE3CDBFF"><enum>(ii)</enum><text display-inline="yes-display-inline">to meet the purposes and requirements of
this title.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID4450734c1d684393b0154ded469b613f"><enum>(b)</enum><header display-inline="yes-display-inline">Approval and notification</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6B84DD96177B4CE883A89C7B6C435984"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 30 days after receiving a
complete approval petition under subsection (a), the appropriate official
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDb98ddfe87b6f42f9ba9e4edfb1b1c467"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="idB03C4BA2C55A4FA2AD84ECE94C904A57"><enum>(i)</enum><text display-inline="yes-display-inline">make determinations on whether to approve
an offset plan and on the quantity of greenhouse gas emissions that have been
reduced or avoided, or greenhouse gases that have been sequestered, by the
offset practice in an approved and verified offset project plan; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID14210c456e134742bb3796318b5e8da2" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">notify the offset project developer in
writing of the determination; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE4158918D62747C88F09E56FAF110007"><enum>(B)</enum><text display-inline="yes-display-inline">based on the determination under
subparagraph (A)—</text>
<clause commented="no" display-inline="no-display-inline" id="id6D881FBACD694690B7E38EA83F418D0B"><enum>(i)</enum><text display-inline="yes-display-inline">approve or deny the petition in
writing;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8752F1608C46454C946932E3661D86AC"><enum>(ii)</enum><text display-inline="yes-display-inline">notify the offset project representative in
writing of the determination; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idCA06D1485A8D432FAE30D71FF659845B"><enum>(iii)</enum><text display-inline="yes-display-inline">if the petition is denied, provide the
reasons for denial.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id630C29A289DA4550957147F3F539B1F8"><enum>(2)</enum><header display-inline="yes-display-inline">Resubmission</header><text display-inline="yes-display-inline">After an offset project is approved, the
offset project representative shall not be required to resubmit an approval
petition during the crediting period of the offset project.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDc20ad54fe8a445a1a02a3fae61f38214"><enum>(c)</enum><header display-inline="yes-display-inline">Appeal</header><text display-inline="yes-display-inline">The appropriate official shall establish
mechanisms for appeal and review of determinations made under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID5abd833e777d474b9710b50ee85a5b3c"><enum>(d)</enum><header display-inline="yes-display-inline">Third-Party review</header><text display-inline="yes-display-inline">The appropriate official may provide for
accreditation of independent third parties to provide recommendations to the
appropriate official on approvals under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDddd686f5a1cb4eeb9944059ed1ac1aec"><enum>(e)</enum><header display-inline="yes-display-inline">Voluntary preapproval review</header>
<paragraph commented="no" display-inline="no-display-inline" id="id228771F63F2E4C8386620D940620AC72"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The appropriate official may establish a
voluntary preapproval review procedure to allow an offset project
representative to request the appropriate official to conduct a preliminary
eligibility review for an offset project.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id55ABC7AE5E7046D88596C66EB89EA88B"><enum>(2)</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="yes-display-inline">Any findings of a review described in
paragraph (1) shall not be binding upon the appropriate official.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id428936CD8A874F27812608104C731A1B"><enum>(3)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">The voluntary preapproval review procedure
shall require—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID605b72491ccd41ba8b3a08b1e15d653a"><enum>(A)</enum><text display-inline="yes-display-inline">the offset project representative to submit
such basic project information as the appropriate official requires to provide
a meaningful review; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7cc5bd5d737c40f5af5489c573a86d66"><enum>(B)</enum><text display-inline="yes-display-inline">a response from the appropriate official
not later than 30 days after the date of receipt by the appropriate official of
a request for review under this subsection.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID84bbcd8992b74eb3a809b43c2d1df9be" section-type="subsequent-section"><enum>107.</enum><header display-inline="yes-display-inline">Verification of offset projects</header>
<subsection commented="no" display-inline="no-display-inline" id="ID9b765bfa275640769bcf83b5c8f8261e"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">As part of the regulations promulgated
under this title, the Secretary and the Administrator shall jointly establish
requirements, including protocols, for verification of the quantity of
greenhouse gas emission reductions that have resulted from an offset
project.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idE5E15FE4492F49438AFA040352A393C5"><enum>(b)</enum><header display-inline="yes-display-inline">Verification reports</header>
<paragraph commented="no" display-inline="no-display-inline" id="idDA176D8FEC92428A98C29DE2D47AF5B1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The regulations described in subsection (a)
shall require an offset project representative to submit a report, prepared by
a third-party verifier accredited under subsection (d), providing such
information as the appropriate official requires to determine the quantity of
greenhouse gas emission reductions resulting from the offset project.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb99dac9210f640238082f027946258ba"><enum>(2)</enum><header display-inline="yes-display-inline">Schedules</header><text display-inline="yes-display-inline">The appropriate officials shall jointly
prescribe schedules for the submission of verification reports under paragraph
(1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID21fae3a9705e41838efadb8b8f1956c3"><enum>(3)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">The appropriate official shall specify the
required components of a verification report required under subsection (a),
including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID3155c23ee23d4502a506ba15b740365a"><enum>(A)</enum><text display-inline="yes-display-inline">the name and contact information for the
offset project representative for the offset project;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2baf2a2e59354d5aa55151c6c4b4a334"><enum>(B)</enum><text display-inline="yes-display-inline">the quantity of greenhouse gas emission
reductions;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID138404864640485b949a7b89f67a2660"><enum>(C)</enum><text display-inline="yes-display-inline">the methodologies applicable to the project
pursuant to section 105;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb17765977c084705a9e96c9018300b51"><enum>(D)</enum><text display-inline="yes-display-inline">a certification that the project meets the
applicable requirements;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID80701fb54a93419296e44b0a9f75a78e"><enum>(E)</enum><text display-inline="yes-display-inline">a certification establishing that the
conflict of interest requirements in the regulations promulgated under this
title have been complied with; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb763b65414964c0ca3d2f5f2fd86564b"><enum>(F)</enum><text display-inline="yes-display-inline">any other information that the appropriate
official considers to be necessary to achieve the purposes of this
title.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDe6c8640ccc6740a4a8740b1b2520d411"><enum>(c)</enum><header display-inline="yes-display-inline">Appeals</header><text display-inline="yes-display-inline">The appropriate official shall establish
procedures for appeal and review of determinations made under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDf131bbbba85f4e4fa179713749ba46c7"><enum>(d)</enum><header display-inline="yes-display-inline">Verifier accreditation</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID5cd6d2ddd3a8485eb55f2ed1207e57b1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">As part of the regulations promulgated
under this title, the appropriate officials shall jointly establish a process
and requirements for periodic accreditation of third-party verifiers to ensure
that those verifiers are professionally qualified and have no conflicts of
interest.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe7311beef86f40de9b78bb62176bf83c"><enum>(2)</enum><header display-inline="yes-display-inline">Standards</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID484179a70df14b4dbc1eea9b69ee9b20"><enum>(A)</enum><header display-inline="yes-display-inline">American National Standards Institute
Accreditation</header>
<clause commented="no" display-inline="no-display-inline" id="id2C7D44303AEF403484074B88E56B8801"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The appropriate officials may jointly
accredit, or accept for purposes of accreditation under this subsection,
verifiers accredited under the American National Standards Institute
accreditation program in accordance with standard 14065 of the International
Organization of Standards.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idF6F095AC139D4ECCB1AC9AF8CE02A942"><enum>(ii)</enum><header display-inline="yes-display-inline">Requirement</header><text display-inline="yes-display-inline">The appropriate officials shall accredit,
or accept for accreditation, verifiers under this subparagraph only if the
appropriate official finds that the American National Standards Institute
accreditation program provides sufficient assurance that the requirements of
this title will be met.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe617c715039b484da0d428564c6e87d8"><enum>(B)</enum><header display-inline="yes-display-inline">USDA and EPA accreditation</header><text display-inline="yes-display-inline">As part of the regulations promulgated
under this title, the appropriate officials may jointly establish accreditation
standards for verifiers under this subsection, including related training and
testing programs and requirements.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1822cc7017bf43e2b837780031abbf7c"><enum>(3)</enum><header display-inline="yes-display-inline">Public accessibility</header><text display-inline="yes-display-inline">Each verifier meeting the requirements for
accreditation in accordance with this subsection shall be listed in a publicly
accessible database, which shall be maintained and updated jointly by the
appropriate officials.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID68adc9103489435bbcb4cb70be6079ee"><enum>(e)</enum><header display-inline="yes-display-inline">Additional technology</header><text display-inline="yes-display-inline">The Administrator and the Secretary may
coordinate and use available resources of any Federal agency, State agency, or
other appropriate source that coordinates or collects data from any appropriate
technology (including data imaging, remote sensing, light detection and
ranging, or other satellite technologies) to verify emission reductions
generated under this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID5200f90d2a2847c48433483ed7bb32a2" section-type="subsequent-section"><enum>108.</enum><header display-inline="yes-display-inline">Issuance of offset credits</header>
<subsection commented="no" display-inline="no-display-inline" id="ID3675add10cd8421eb4e3d4aa4c6ae5cb"><enum>(a)</enum><header display-inline="yes-display-inline">Issuance of offset credits</header><text display-inline="yes-display-inline">The Administrator, in consultation with the
Secretary with regards to domestic agricultural and forestry projects, shall
issue 1 offset credit to an offset project representative for each ton of
carbon dioxide equivalent in emission reductions from an offset project that
the appropriate official has verified pursuant to section 107.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID574285880bf241d9851c25178f15cd54"><enum>(b)</enum><header display-inline="yes-display-inline">Timing</header><text display-inline="yes-display-inline">Offset credits meeting the criteria
described in subsection (a) shall be issued by the Administrator not later than
14 days after the date on which the Administrator receives notice of the
determination under section 106, including approval and verification
information.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDe44e330a37c348b3a0877790dd0612b3"><enum>(c)</enum><header display-inline="yes-display-inline">Registration</header><text display-inline="yes-display-inline">In the case of domestic agricultural and
forestry projects the Administrator, in consultation with the Secretary, shall
assign a unique serial number to and register each offset project to be issued
under this title pursuant to section 103(b).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID1e306b6f03b84645ae5eddb4aa86492d" section-type="subsequent-section"><enum>109.</enum><header display-inline="yes-display-inline">Audits and reviews</header>
<subsection commented="no" display-inline="no-display-inline" id="ID52d29c158dc14897b5f7bd8ce377012e"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The appropriate officials shall, on an
ongoing basis, conduct random audits and reviews of offset projects.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idBCB073922AFC4DD68346740614E51469"><enum>(b)</enum><header display-inline="yes-display-inline">Minimum audits and reviews</header><text display-inline="yes-display-inline">For each fiscal year, the appropriate
officials shall conduct audits and reviews, at minimum, for a representative
sample of project types, geographical areas, verification standards and
certified verifiers, and specific administrative processes of that offset
program.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD4567F905E584131B98D7B7CD1E585F9"><enum>(c)</enum><header display-inline="yes-display-inline">Public availability of
information</header><text display-inline="yes-display-inline">The appropriate
officials shall make the results of all audits, in the aggregate, and reviews
conducted under this section available to the public.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID18e36b92cfc44938aac449a129b27a58"><enum>(d)</enum><header display-inline="yes-display-inline">Delegation</header>
<paragraph commented="no" display-inline="no-display-inline" id="idBE9E02209B324ED09DA19500D2DF5D1C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The appropriate official may delegate to a
State or tribal government the responsibility for conducting audits under this
section if the appropriate official finds that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id73CD1B5DBF0E4C0CA20AED28796BAFF4"><enum>(A)</enum><text display-inline="yes-display-inline">the program proposed by the State or tribal
government provides assurances equivalent to the assurances provided by the
auditing program of the appropriate official; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idECB64EB4452D4D2A8E56F430030F390D"><enum>(B)</enum><text display-inline="yes-display-inline">the integrity of the offset program under
this title will be maintained.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCF745BEF04734370AD82B86D3EB3F466"><enum>(2)</enum><header display-inline="yes-display-inline">Audits by appropriate
official</header><text display-inline="yes-display-inline">Nothing in this
subsection prevents an appropriate official from conducting any audit the
appropriate official considers appropriate.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idC3028319449849AD8CC135812E5647EB" section-type="subsequent-section"><enum>110.</enum><header display-inline="yes-display-inline">Early offset supply</header>
<subsection commented="no" display-inline="no-display-inline" id="ID24a5e29ec9a34bb6b0f28381c4161365"><enum>(a)</enum><header display-inline="yes-display-inline">Definition of qualified early offset
program</header><text display-inline="yes-display-inline">In this section, the
term <term>qualified early offset program</term> means any regulatory or
voluntary greenhouse gas emission offset program approved under subsection
(b).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID0832b663db6b4b62acbcb19e4400016d"><enum>(b)</enum><header display-inline="yes-display-inline">Program approval</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID986ea9b89c2842dda127aa51c2f6c9bf"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The administrator of a regulatory or
voluntary greenhouse gas emission offset program may apply to the Administrator
and the Secretary for approval as a qualified early offset program under this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9406ba2e8f4c43229495bd44a68c2bdc"><enum>(2)</enum><header display-inline="yes-display-inline">Determinations</header><text display-inline="yes-display-inline">The Administrator, in conjunction with the
Secretary, shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id5A39C0615E23412BB3B0CA95870F19A8"><enum>(A)</enum><text display-inline="yes-display-inline">not later than 30 days after the date of
enactment of this Act, establish a process to receive applications received
under this subsection; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1ED9F52E5A3B4F40ACCFB26A052A200F"><enum>(B)</enum><text display-inline="yes-display-inline">not later than 180 days after the date of
receipt of any application received under this subsection, make a determination
on the application.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID968081fd33134b6983aa60834859515e"><enum>(3)</enum><header display-inline="yes-display-inline">Criteria for approval</header><text display-inline="yes-display-inline">The Administrator, in conjunction with the
Secretary, shall approve as a qualified early offset program under this
subsection any regulatory or voluntary greenhouse gas emission offset program
that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID834c8824b7db4936b2075e5e9188fdae"><enum>(A)</enum><text display-inline="yes-display-inline">was established before January 1,
2009;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID941a6016d29e4bc5b2118d0518b231d4"><enum>(B)</enum><text display-inline="yes-display-inline">has developed or approved offset
project-type standards, methodologies, and protocols through a public
consultation process or a public peer review process;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID02b5f251d1ee43899607f0bfe35e8df3"><enum>(C)</enum><text display-inline="yes-display-inline">has made available to the public the
standards, methodologies, and protocols of the program for emission reduction
projects;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb7f0a5a1eff44d7bb6e4dc8863bded2e"><enum>(D)</enum><text display-inline="yes-display-inline">requires that all emission reductions be
verified by a State regulatory agency or an accredited third-party independent
verification entity;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDd540735b9a624c28b90a01863455bd1f"><enum>(E)</enum><text display-inline="yes-display-inline">requires that all issued credits be
registered in a publicly accessible registry, with individual serial numbers
assigned for each ton of carbon dioxide equivalent emission reductions;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID244927b680554404905bed07db6f1b9f"><enum>(F)</enum><text display-inline="yes-display-inline">ensures that no credits are issued for
activities for which the administrator of the program has funded, solicited, or
served as a fund administrator for the development of the project or activity
that caused the emission reduction.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID93f4dda38bb44f2fb989b7e8db7796d2"><enum>(4)</enum><header display-inline="yes-display-inline">Revocation or disapproval</header><text display-inline="yes-display-inline">The Administrator, in conjunction with the
Secretary, may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID50acf1bc7c2446858b0f5f67a53e9c7e"><enum>(A)</enum><text display-inline="yes-display-inline">revoke the approval of a qualified early
offset program under this subsection if the program does not meet the criteria
described in paragraph (3); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0fa355c5d2584ad3bb7eeb6bdb3b832b"><enum>(B)</enum><text display-inline="yes-display-inline">determine that a regulatory or voluntary
greenhouse gas emission offset program shall not be considered a qualified
early offset program with respect to a particular project type if, as
determined by the Administrator, in conjunction with the Secretary, the
standard, methodology, or protocol of the program for that project type fails
to ensure that credits only will be provided for emission reductions that are
measurable, additional, verifiable, and enforceable.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDf33df120877c46afaf497b379b4df985"><enum>(c)</enum><header display-inline="yes-display-inline">Offset
credits</header><text display-inline="yes-display-inline">Subject to
subsections (d), (e), and (f), the Administrator, in conjunction with the
Secretary, shall issue 1 offset credit for each ton of carbon dioxide
equivalent in emission reductions achieved—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID091869acfc194bf29997ec8aedd253b5"><enum>(1)</enum><text display-inline="yes-display-inline">under an offset project that commenced
after January 1, 2001; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDea86485097af48ad9e1b5157245ee61b"><enum>(2)</enum><text display-inline="yes-display-inline">for which a credit was issued under a
qualified early offset program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID55968662bfdc46caaa13d521a92f4337"><enum>(d)</enum><header display-inline="yes-display-inline">Ineligible credits</header><text display-inline="yes-display-inline">Subsection (b) shall not apply to offset
credits that have expired or have been retired, canceled, or used for
compliance under a program established under State or tribal law (including a
regulation).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID05b01b95417c4bfa8401e7f9f9f82271"><enum>(e)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">Notwithstanding subsection (c)(1), offset
credits shall be issued under this section only for a crediting period pursuant
to section 105(c) that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID9da442ab440f4631a969e840667cfc3f"><enum>(1)</enum><text display-inline="yes-display-inline">commences—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID2c3875db2a054e5499c05a78371f6bdd"><enum>(A)</enum><text display-inline="yes-display-inline">not earlier than January 1, 2001;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf298608b3aee47e3a03995841a21bc6b"><enum>(B)</enum><text display-inline="yes-display-inline">not later than the date on which the
regulations for methodologies promulgated under this title take effect;
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1a705fa1e8744c12b78598bc7077bd1c"><enum>(2)</enum><text display-inline="yes-display-inline">does not exceed the shorter of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID719009fbdc1f4b448731172fdae56663"><enum>(A)</enum><text display-inline="yes-display-inline">10 years; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0a61779248a140aca5e7d1dbe14e07ac"><enum>(B)</enum><text display-inline="yes-display-inline">the established crediting period for the
project (in accordance with the rules of the qualified early offset
program).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3f3fd80071fc4b6ab369363780672224"><enum>(f)</enum><header display-inline="yes-display-inline">Preclusion of double payment</header><text display-inline="yes-display-inline">Emission reductions shall not receive
credits under this section if the emission reductions—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idB5FDDEDC4F6A46E798199503F0B9436C"><enum>(1)</enum><text display-inline="yes-display-inline">occurred prior to January 1, 2009;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id54DA5E8EDDF84121967FDBD68F75E2EA"><enum>(2)</enum><text display-inline="yes-display-inline">were awarded payments pursuant to the
authority of the Secretary under the carbon conservation program established
under title II.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1d012dd41df247cfb4a10b22d1f673f2"><enum>(g)</enum><header display-inline="yes-display-inline">Retirement of credits</header><text display-inline="yes-display-inline">The Administrator shall ensure, to the
maximum extent practicable, that offset credits described in subsection (c) are
retired for purposes of use under a program described in subsection (d).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID978ec57bd13546a0810199ede51bef78"><enum>(h)</enum><header display-inline="yes-display-inline">International reduced deforestation
projects</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID98e0ff97aa764266a00426888c99dd22"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to paragraphs (2) and (3), the
Administrator shall issue under this subsection 1 offset credit for each ton of
carbon dioxide equivalent emissions reduced by an offset project that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID576bc8a4dcb34b8e94c384787d907890"><enum>(A)</enum><text display-inline="yes-display-inline">is an international reduced deforestation
project;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID15bd258bce5541ecb9781671046b39a9"><enum>(B)</enum><text display-inline="yes-display-inline">started after January 1, 2001;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID30d6337ceb354cd2ae734e4ca889807e"><enum>(C)</enum><text display-inline="yes-display-inline">not later than 2 years after the date of
enactment of this Act, is registered with a regulatory or voluntary greenhouse
gas emission offset program that the Administrator determines—</text>
<clause commented="no" display-inline="no-display-inline" id="IDbdc54aa94db74fa39142a107d5d61304"><enum>(i)</enum><text display-inline="yes-display-inline">meets all of the requirements of subsection
(b); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDc3085ac6b99d4db694f971c7b9d8cbd7"><enum>(ii)</enum><text display-inline="yes-display-inline">was established under State law (including
regulations) or designated by a State as an offset registry prior to January 1,
2009; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2f49ac418daa419ca263b24ef159ea69"><enum>(D)</enum><text display-inline="yes-display-inline">is issued offset credits for the emission
reductions achieved by the project under an offset program for which the
Administrator has made an affirmative determination under subparagraph
(C).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6BFD7A6445FA4A28B36FBE02F286F5D3"><enum>(2)</enum><header display-inline="yes-display-inline">Inconsistency with certain
purposes</header><text display-inline="yes-display-inline">Paragraph (1) shall
not apply if the Administrator makes a determination, not later than 90 days
after the date on which public notice is provided of a project petition, that a
project is inconsistent with the policies established under any Federal law
enacted for the purpose of regulating greenhouse gas emissions to protect the
rights and interests of local communities and to protect forest
ecosystems.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5998e6670bb14149a9362f4cee9cd004"><enum>(3)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">Notwithstanding subsection (e), offset
credits shall be issued under this subsection only for greenhouse gas emission
reductions that occur under an eligible international reduced deforestation
project during the period beginning on January 1, 2009, and ending on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1ebdab0ed89546609548c5a794d008d8"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a project located in a
country that accounts for less than 1 percent of the global greenhouse gas
emissions and less than 3 percent of global forest-sector and land use change
greenhouse gas emissions, December 31 of the first full calendar year following
the effective date of regulations promulgated to carry out this title;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID08f22d0b71f6476ebdc7625d9ed5de87"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a project located in a
country that does not meet the criteria described in subparagraph (A), the date
that is 2 years after the date of enactment of this Act.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID148b86924c4f4f71a98b40fab6e6b8cf" section-type="subsequent-section"><enum>111.</enum><header display-inline="yes-display-inline">Program review and revision</header><text display-inline="no-display-inline">At least once every 5 years, the
Administrator, in consultation with the Secretary, shall review, based on new
or updated information and taking into consideration the recommendations of the
Advisory Committee—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID7b21638645d84d9892a2e8cdb0d8c7d4"><enum>(1)</enum><text display-inline="yes-display-inline">the list of eligible project types
established under section 104;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID523a12feabf64412b7fe322ada486c16"><enum>(2)</enum><text display-inline="yes-display-inline">the methodologies established, including
specific activity baselines, under section 105;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID98649ffbfdab46f8ba3b72e50fb2a6e9"><enum>(3)</enum><text display-inline="yes-display-inline">the reversal requirements and mechanisms
established or prescribed under section 105;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5a885c526dec4f17bc28ab1736fedaf9"><enum>(4)</enum><text display-inline="yes-display-inline">measures to improve the accountability of
the offsets program; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDf0d1016ef0a04f9aafe744a2ca5195ae"><enum>(5)</enum><text display-inline="yes-display-inline">any other requirements established under
this title to ensure the environmental integrity and effective operation of
this title.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idE17AC4D7240448BF9FFAF6A142019167" section-type="subsequent-section"><enum>112.</enum><header display-inline="yes-display-inline">Additional regulatory standards for
emission reductions</header>
<subsection commented="no" display-inline="no-display-inline" id="idE2C67B6CD8A645BEAB581E07F83D13B0"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Nothing in this title authorizes the
Administrator to promulgate any additional regulatory standards for emission
reductions from any project or activity (including emission reductions from any
non-fossil fuel agricultural source) carried out under this title.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID4d3f36842105407d811740a1a847b466"><enum>(b)</enum><header display-inline="yes-display-inline">Allowance or credit
obligations</header><text display-inline="yes-display-inline">No person shall
be required to hold allowances or credits for emissions resulting from the use
of gas as an energy source if the gas is derived from a domestic methane offset
project approved under this title.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id9BF6D860F4714943BEF27010749DBFD1"><enum>(c)</enum><header display-inline="yes-display-inline">Relationship to other laws</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
emissions that are limited under this title shall not be subject to any other
limitation that is established under a Federal law enacted or applied for the
purpose of regulating greenhouse gas emissions.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id7C027D1252C94993BFA185DDEA6C133C" section-type="subsequent-section"><enum>113.</enum><header display-inline="yes-display-inline">Use of credits for compliance
purposes</header><text display-inline="no-display-inline">The Administrator
shall promulgate regulations to require that, for each calendar year beginning
with the first fiscal year in which the limitation on the emission of
greenhouse gases under a Federal law enacted for the purpose of regulating
greenhouse gas emissions takes effect, owners and operators of facilities that
are subject to regulation under that law may satisfy the allowance submission
requirements of the owners and operators under that law by submitting credits
generated pursuant to this title.</text>
</section><enum>II</enum><header display-inline="yes-display-inline">Carbon conservation program</header>
<section commented="no" display-inline="no-display-inline" id="idDAA0E594B5BD4409A97F85F5DFE72E30" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id356A4836C098431BB6ECE3BF2B406BF4"><enum>(1)</enum><header display-inline="yes-display-inline">Fund</header><text display-inline="yes-display-inline">The term <term>Fund</term> means the Carbon
Conservation Fund established under section 203.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAFB1DF04654A46B49BD0D6808F2C4AE4"><enum>(2)</enum><header display-inline="yes-display-inline">Program</header><text display-inline="yes-display-inline">The term <term>program</term> means the
carbon conservation program established under section 202.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id28E09BE51B264EEEB1AF747181D642C3"><enum>(3)</enum><header display-inline="yes-display-inline">Secretaries</header><text display-inline="yes-display-inline">The term <term>Secretaries</term> means the
Secretary of Agriculture and Secretary of the Interior, as appropriate.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="ID22805733c39d48699ee4f01edbd6c28a" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Carbon conservation program</header>
<subsection commented="no" display-inline="no-display-inline" id="ID094e2018c95e4092a36df87c81a653f8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of Agriculture shall
establish, and jointly administer with the Secretary of the Interior, a carbon
conservation program for the purpose of promoting greenhouse gas emissions
reduction or carbon sequestration.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID348a9ba6a0d14be0a9466414cd59258e"><enum>(b)</enum><header display-inline="yes-display-inline">Forestry activities</header><text display-inline="yes-display-inline">The Secretary of Agriculture shall
designate the Chief of the Forest Service to carry out all forestry-related
components of the program.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID9803718294f0435896b4623d94033b5f"><enum>(c)</enum><header display-inline="yes-display-inline">Purposes</header>
<paragraph commented="no" display-inline="no-display-inline" id="id50052748659942FFBAF9B2BA82E81D0F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In carrying out the program, the
Secretaries shall provide incentives to landowners or grazing contractor
holders to carry out projects or activities that reduce greenhouse gas
emissions or sequester or permanently store carbon.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0731ACD47EE749399E60A421B90C11CE"><enum>(2)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">In administering the program, the
Secretaries shall ensure that projects or activities conducted under this
title—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID835e4c61655e4001b772bbaf46099c00"><enum>(A)</enum><text display-inline="yes-display-inline">do not receive offset credits for the same
activity under title I;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDdd4ab16507284c52bbfa33c428570e56"><enum>(B)</enum><text display-inline="yes-display-inline">reward the continuation of practices by
early adopters of conservation practices (including no-till agricultural
practices) that provide carbon sequestration benefits;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6b565102133849d7abca3b72938ff3cb"><enum>(C)</enum><text display-inline="yes-display-inline">support the development of new
methodologies for landowners to participate in offset projects under title
I;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8D0F481FE60846DBAE8B7CB57558686B"><enum>(D)</enum><text display-inline="yes-display-inline">ensure that individuals and entities that
took action prior to the implementation of the offset program under title I,
and do not qualify for early offset credits under section 110, are not placed
at a competitive disadvantage;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb4bdf13e4ef84d27beca63dcb07fb6a0"><enum>(E)</enum><text display-inline="yes-display-inline">improve management of privately owned
agricultural land, grassland, and forest land that results in an increase in
carbon sequestration;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID707dccdab0b44210af90e452e8afca1c"><enum>(F)</enum><text display-inline="yes-display-inline">avoid conversion of land (including native
grassland, native prairie, rangeland, cropland, or forest land) that would
result in an increase of greenhouse gas emissions or a loss of carbon
sequestration; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID756a9f67912c482a907c2ca996df938f"><enum>(G)</enum><text display-inline="yes-display-inline">encourage improvements and management
practices that include sequestration benefits on Federal land and private
land.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID630d2a769ed94d85884d5d57461a54af"><enum>(d)</enum><header display-inline="yes-display-inline">Methods</header>
<paragraph commented="no" display-inline="no-display-inline" id="idE796CCE543F24FED933E7B3955F1C32C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In carrying out the program, the
Secretaries shall provide incentives for projects or activities that reduce
greenhouse gas emissions or sequester carbon through—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id477AFA5B8E0C40A493B926CAB0564ED2"><enum>(A)</enum><text display-inline="yes-display-inline">conservation easements;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7E2F1E3DEBDB4A189FB9707781E6D681"><enum>(B)</enum><text display-inline="yes-display-inline">sequestration contracts;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id883A902294334D7C8EFA3A53C6E12380"><enum>(C)</enum><text display-inline="yes-display-inline">timber harvest or grazing contracts with
the Department of Agriculture or the Department of the Interior, as
appropriate; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0F13ED209B3A482EA6CB58921C85D12D"><enum>(D)</enum><text display-inline="yes-display-inline">any combination of the methods described in
this paragraph.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id54428861AB0643DF91C89CD334DCCA3E"><enum>(2)</enum><header display-inline="yes-display-inline">Ineligibility for offset
credits</header><text display-inline="yes-display-inline">Projects or
activities undertaken as part of the program shall not be eligible for offset
credits under title I for the duration of the projects or activities.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id468DC6F00E8648A4AEEDC52E8376999A"><enum>(e)</enum><header display-inline="yes-display-inline">Conservation easements</header>
<paragraph commented="no" display-inline="no-display-inline" id="id76C528FFC9E64EA0AF8EDBD0C6089037"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of Agriculture shall enroll
acreage into the program through the use of permanent easements.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8087B6BA3EBC435C9FE72B56582F8ACA"><enum>(2)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">To be eligible for enrollment under this
title, conservation easements established under this subsection shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id00BC3E1EA3C144A7902ECC8330AA633A"><enum>(A)</enum><text display-inline="yes-display-inline">provide a measurable carbon sequestration
benefit; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id10C7D96320DB4BB9BDD583C334822363"><enum>(B)</enum><text display-inline="yes-display-inline">meet the requirements of part VI of
subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986
and section 170(h)(4) of that Code.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA4E6A7557E464E9DB28C651F116FF3EE"><enum>(3)</enum><header display-inline="yes-display-inline">Priority</header><text display-inline="yes-display-inline">In selecting projects for conservation
easements, the Secretary of Agriculture shall provide a priority for
conservation easements that sequester carbon and protect forested land or
working forest land, or protect native prairie or native grassland, within the
boundary of a working farm or ranch.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDdafacb7800a04ca6bd803a11eb3b51e7"><enum>(f)</enum><header display-inline="yes-display-inline">Carbon sequestration contracts</header>
<paragraph commented="no" display-inline="no-display-inline" id="idA94C8EC7A6B44A29ABDD9C36D319CAB9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of Agriculture may offer
carbon sequestration contracts under the program for a period of 10 years to
farmers, ranchers, and forest owners who perform projects or activities to
reduce greenhouse gas emissions or sequester carbon.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1530139800DC4C90A819B252797482D5"><enum>(2)</enum><header display-inline="yes-display-inline">Withdrawal</header><text display-inline="yes-display-inline">A nonforestry contract holder may withdraw
from a contract under this subsection without penalty after 5 years.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id623231361A07483BB7951BEB279AACE8"><enum>(3)</enum><header display-inline="yes-display-inline">Compensation</header><text display-inline="yes-display-inline">The amount of compensation provided under a
contract under this subsection shall be commensurate with the emissions
reductions obtained or avoided and the duration of the reductions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9B76212648DF413D99F80685B3BF616A"><enum>(4)</enum><header display-inline="yes-display-inline">Priority</header><text display-inline="yes-display-inline">In selecting projects under this subsection
during each of fiscal years 2012 through 2015, the Secretary of Agriculture
shall provide a priority for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2B12DE9D778A44FEAF0FB8EA95C8E68A"><enum>(A)</enum><text display-inline="yes-display-inline">contracts entered into with early adopters
of conservation practices (such as no-till agricultural practices), improved
forest management, or other greenhouse gas emissions reduction projects;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id700DDAF921234CF88A6BE5C97EA4A424"><enum>(B)</enum><text display-inline="yes-display-inline">contracts that sequester the most carbon on
a per acre basis.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA9AC88EC092C4985BAED57B0511FA726"><enum>(5)</enum><header display-inline="yes-display-inline">Contract</header><text display-inline="yes-display-inline">A contract under this subsection shall
specify—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id91B4AB9549724477BEE89A19EB4F1180"><enum>(A)</enum><text display-inline="yes-display-inline">the eligible practices that will be
undertaken;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCCF603B4254F41EFB6298675894B6287"><enum>(B)</enum><text display-inline="yes-display-inline">the acreage of eligible land on which the
practices will be undertaken;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD30251DA906044558CB703C7AEED3BF8"><enum>(C)</enum><text display-inline="yes-display-inline">the agreed rate of compensation per acre;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA23E50ADD897493E97B24C7EB5669096"><enum>(D)</enum><text display-inline="yes-display-inline">a schedule to verify that the terms of the
contract have been fulfilled.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id03FA6079C2634FFDB474E5B0C1C67E58"><enum>(6)</enum><header display-inline="yes-display-inline">Future reductions</header><text display-inline="yes-display-inline">If the term of a contract for a
sequestration project under this subsection has expired, future reductions
under the project may be eligible to receive carbon offset credits if the
project and associated reductions meet all applicable offsets criteria under
title I.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe8f0b02197c54dc790a14c2d66ae55b5"><enum>(7)</enum><header display-inline="yes-display-inline">Reversals</header><text display-inline="yes-display-inline">In developing regulations for carbon
sequestration contracts under this subsection, the Secretary of Agriculture
shall specify requirements to address intentional or unintentional reversal of
carbon sequestration during the contract period.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9d6fbf66008140edbb03009f7dcca24f"><enum>(g)</enum><header display-inline="yes-display-inline">Incentives in timber harvest
contracts</header>
<paragraph commented="no" display-inline="no-display-inline" id="id4E07A07E632E458EBE4A6C9C8D3B7113"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretaries shall offer financial
incentives under the program through timber harvest contracts entered into by
the Forest Service or the Bureau of Land Management (as appropriate) for
projects or management activities that sequester carbon or reduce greenhouse
gas emissions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDAB59C6A709847CFB4D0F138A838A827"><enum>(2)</enum><header display-inline="yes-display-inline">Compensation</header><text display-inline="yes-display-inline">The amount of compensation provided under
this subsection shall be commensurate with—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id77577CF319C743D5A88D98F357C2C229"><enum>(A)</enum><text display-inline="yes-display-inline">the emissions reductions obtained or
avoided; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC06E1283B46A4E469D433DF0EA1AFC57"><enum>(B)</enum><text display-inline="yes-display-inline">the estimate of the cost of the project or
activities undertaken.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1119ef8a41c342c4ae33ab9d5e1ce54e"><enum>(h)</enum><header display-inline="yes-display-inline">Incentives in grazing contracts</header>
<paragraph commented="no" display-inline="no-display-inline" id="idAB059EC06F0C4C2D8B24A8C1F7936038"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretaries shall offer incentives to
leaseholders through grazing contracts entered into by the Forest Service or
the Bureau of Land Management (as appropriate) for projects or activities that
sequester carbon or reduce greenhouse gas emissions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6F2F612C042D4B94939595D299C8158B"><enum>(2)</enum><header display-inline="yes-display-inline">Compensation</header><text display-inline="yes-display-inline">The amount of compensation provided under
this subsection shall be commensurate with—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4EAB461820134B67B834ABE7E7CCC745"><enum>(A)</enum><text display-inline="yes-display-inline">the emissions reductions obtained or
avoided; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF64BE9DEC9614DBF84E6496167428EE3"><enum>(B)</enum><text display-inline="yes-display-inline">the estimate of the cost of the project or
activities undertaken.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID61656b04cd0a4fd1b636c00b0672d966"><enum>(i)</enum><header display-inline="yes-display-inline">Distribution of amounts</header><text display-inline="yes-display-inline">Of the amounts provided to carry out the
program for a fiscal year, at least 30 percent of the amount shall be used for
conservation easements described in subsection (e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDe3d6b0afa803416a8afdfcef9ce6a943"><enum>(j)</enum><header display-inline="yes-display-inline">Program measurement, monitoring, and
reporting requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8FB078FA6AD84FA5957553D734BD555B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretaries shall submit to the
Administrator of the Environmental Protection Agency annual reports that
describe—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id0890462DB0E2482BB35EE89863DA3CBD"><enum>(A)</enum><text display-inline="yes-display-inline">the total number of tons of carbon dioxide
sequestered or the total number of tons of emissions avoided under the program
through conservation easements, sequestration contracts, or other methods on an
annual and cumulative basis;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id876732B52761443FB72A1573BF035AFC"><enum>(B)</enum><text display-inline="yes-display-inline">any reversals of sequestration; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB4FD4ECC498847AAB71B0EDB2C05F4EC"><enum>(C)</enum><text display-inline="yes-display-inline">the total number of acres enrolled in the
program by method and a State-by-State summary of the data.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC0E2DF6C149E40FA865C103D5B0C7CEC"><enum>(2)</enum><header display-inline="yes-display-inline">Public availability</header><text display-inline="yes-display-inline">The Administrator of the Environmental
Protection Agency shall make each report required under this subsection
available to the public through the website of the Environmental Protection
Agency.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDfecdd1ed5e11479494854735c583decc"><enum>(k)</enum><header display-inline="yes-display-inline">Coordination</header>
<paragraph commented="no" display-inline="no-display-inline" id="idF58CE04CF62144A8AFCED2781B37BBB2"><enum>(1)</enum><header display-inline="yes-display-inline">Secretary of Agriculture</header><text display-inline="yes-display-inline">The Secretary of Agriculture shall
coordinate activities under the program with the activities of the Secretary of
Agriculture in carrying out—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id605C32A3B6934789AA7531D242B521B4"><enum>(A)</enum><text display-inline="yes-display-inline">the conservation reserve program
established under subchapter B of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3831 et seq.);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id112C3558F40E4E5F96522C52911B35D8"><enum>(B)</enum><text display-inline="yes-display-inline">the wetlands reserve program established
under subchapter C of chapter 1 of subtitle D of title XII of that Act (16
U.S.C. 3837 et seq.);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3F9F926689B345A9B578DA65C7199CC9"><enum>(C)</enum><text display-inline="yes-display-inline">the farmland protection program established
under subchapter C of chapter 2 of subtitle D of title XII of that Act (16
U.S.C. 3838h et seq.) (commonly known as the <quote>Farm and Ranch Lands
Protection Program</quote>);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC68325C406444120B5C07BF8BD1BDBFC"><enum>(D)</enum><text display-inline="yes-display-inline">the grassland reserve program established
under subchapter D of chapter 2 of subtitle D of title XII of that Act (16
U.S.C. 3838n et seq.);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE179F05FCAB34B0295654E0FC62C72D9"><enum>(E)</enum><text display-inline="yes-display-inline">the State and private forestry programs of
the Forest Service;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBCD5F4DF52A245BF81C7137376FA5465"><enum>(F)</enum><text display-inline="yes-display-inline">the healthy forests reserve program
established under section 501 of the Healthy Forests Restoration Act of 2003
(16 U.S.C. 6571); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8A323A7CD34543EB9C75A75121C1253D"><enum>(G)</enum><text display-inline="yes-display-inline">other applicable programs.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCCD26F6647F54C17B41747C0A96153F9"><enum>(2)</enum><header display-inline="yes-display-inline">Secretary of the Interior</header><text display-inline="yes-display-inline">The Secretary of the Interior shall
coordinate activities under the program with the activities of the Secretary of
the Interior in carrying out—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id57A4DB4D5CF94F1EA9386524079FD572"><enum>(A)</enum><text display-inline="yes-display-inline">programs funded through the
<act-name parsable-cite="LWCFA">Land and Water Conservation Fund Act of
1965</act-name> (16 U.S.C. 460<added-phrase reported-display-style="italic">l</added-phrase>–4 et seq.);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF2E6E4D02F25403BA18F753D3737A358"><enum>(B)</enum><text display-inline="yes-display-inline">any applicable climate adaptation programs;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA0C75E98DF0642DBB72780ECE10C01BC"><enum>(C)</enum><text display-inline="yes-display-inline">other applicable programs.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID4ed721d31e6b46918a6e7492a33d6f8e"><enum>(l)</enum><header display-inline="yes-display-inline">Reviews</header>
<paragraph commented="no" display-inline="no-display-inline" id="idFA798ED67EC547FD9E0C83C2076D6A7C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 5 years after the date of
enactment of this Act and every 5 years thereafter, the Secretaries
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id32E888E36EBA49A185C0153F2E210FE0"><enum>(A)</enum><text display-inline="yes-display-inline">conduct a review of the activities carried
out under this title; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF98CD86DD02D41B1A3A159A4A0081399"><enum>(B)</enum><text display-inline="yes-display-inline">make any appropriate changes in the
program, in a manner consistent with this section, based on the findings of the
review.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id55C5752ACDC44F88B675E2C96B726872"><enum>(2)</enum><header display-inline="yes-display-inline">Review</header><text display-inline="yes-display-inline">Each review shall include a review
of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID277124862c9f4dc88588c395a3c28935"><enum>(A)</enum><text display-inline="yes-display-inline">total emissions reductions and
sequestration achieved by activity type;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID32f3f9ebb6bb446aae8025c03e6259ff"><enum>(B)</enum><text display-inline="yes-display-inline">the net effect on average farm income by
activity type;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDbe19fc17552840569309b185fe7c5449"><enum>(C)</enum><text display-inline="yes-display-inline">the potential for future emissions
reductions and sequestration by activity type; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDdc1ef996ba7042beaeb057fa43fd7246"><enum>(D)</enum><text display-inline="yes-display-inline">recommended changes to the program based on
the review.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID2fc6999a57e14ad4bd7e2ec8d20260c7" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Carbon Conservation Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="IDd7e1f655ede14426bba70d6123dfd8a7"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">There is established in the Treasury a
separate account, to be known as the <quote>Carbon Conservation Fund</quote>,
to carry out this title.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID56215e0c364f4538955938ee2ea84790"><enum>(b)</enum><header display-inline="yes-display-inline">Availability</header><text display-inline="yes-display-inline">All amounts deposited into the Fund shall
be available without further appropriation or fiscal year limitation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID28dc7e866c894597903acdf90c9e949f"><enum>(c)</enum><header display-inline="yes-display-inline">Use</header><text display-inline="yes-display-inline">The Secretary shall use amounts in the Fund
to carry out this title.</text>
</subsection></section><enum>III</enum><header display-inline="yes-display-inline">Rural clean energy resources</header>
<section commented="no" display-inline="no-display-inline" id="id9755A497C9C1472F8A6DA2706B9C267F" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID11be99bf6e4b4c2fac61e86f8369b989"><enum>(1)</enum><text display-inline="yes-display-inline">lifecycle greenhouse gas emissions
associated with the production and use of biofuels, bioproducts, and bioenergy
may be significantly lower than the emissions associated with the production
and use of fossil fuels;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDa2e1e56dfc6243a79b6cc7e18c282af4"><enum>(2)</enum><text display-inline="yes-display-inline">the United States has the potential to
significantly increase the production and use of biofuels and bioenergy;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID040d5e7952ad4f8b8fca267fe777d5ef"><enum>(3)</enum><text display-inline="yes-display-inline">expanding the production and use of
biofuels and bioenergy offers a significant opportunity for rural economic
development and enhancing national energy security; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDa4f93edb970e4e74b028469158eef045"><enum>(4)</enum><text display-inline="yes-display-inline">several programs authorized or funded under
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8701 et seq.) are
designed to accelerate the development and deployment of technologies for
expeditiously expanding domestic biofuels and bioenergy production.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="ID58f8e855b4d546b5b62c35bc8386a651" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Biorefinery assistance</header><text display-inline="no-display-inline">Of the amounts in the Rural Clean Energy
Resources Fund established under section 305, the Secretary shall use—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id32CE298243434BE089A06635F1BECD67"><enum>(1)</enum><text display-inline="yes-display-inline">not less than 20 percent to provide grants
under section 9003 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8103); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id772560F096F045EA8CBB8B0C90686968"><enum>(2)</enum><text display-inline="yes-display-inline">not less than 60 percent to provide loan
guarantees under that section.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="IDe79913bed1e440f8988371bc76dac1a2" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Repowering assistance</header><text display-inline="no-display-inline">Section 9004 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8104) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id4ECAFDA91A974B89BAA6C6EFCF360840"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (a) through
(d) as subsections (b) through (e), respectively;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3725CB373D2944D792C3E2AB6E846993"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after the section heading the
following:</text>
<quoted-block display-inline="no-display-inline" id="id82D30050E3C549DBB18DAC5F248E4019" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id1F20DD9392094D8E976E87E8F2AEA6EB"><enum>(a)</enum><header display-inline="yes-display-inline">Definition of eligible entity</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id98F968CF236C461E9BA80674CE37D3E8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>eligible entity</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id1C5C15664C2F466AA6F5EC3C9B252EED"><enum>(A)</enum><text display-inline="yes-display-inline">a biorefinery; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0682BBD1176A433681BA154B5136E0F0"><enum>(B)</enum><text display-inline="yes-display-inline">a power plant or manufacturing facility
that—</text>
<clause commented="no" display-inline="no-display-inline" id="id22F71C3F8E5E4B46878588D3031D9517"><enum>(i)</enum><text display-inline="yes-display-inline">has a combined thermal and electrical
energy conversion capacity of not greater than 75 megawatts; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id35DE15E428334312833753DF6B4FC33F"><enum>(ii)</enum><text display-inline="yes-display-inline">is located in a rural area (as defined in
section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a))).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFA8108C7E67A46C2899E28FD5C98A058"><enum>(2)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">The term <term>eligible entity</term> does
not include an energy-intensive trade-exposed
facility.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id13F83E0F217442C5B376BE4618EE1709"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (b) (as redesignated by
paragraph (1))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFA5445B7D0764E1B8821777FE4584316"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">In general</header-in-text></quote> and
inserting <quote><header-in-text level="subsection" style="OLC">Program</header-in-text></quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id03F79F59530748AB96610E27D787708B"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>biorefineries</quote>
each place it appears and inserting <quote>eligible entities</quote>;
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4F65493ED6734C518B1AFD001BC95FFA"><enum>(4)</enum><text display-inline="yes-display-inline">in subsections (c) and (d) (as so
redesignated)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id7F31B7A88EA74DA1ABCE4FC48EA4158A"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>a biorefinery</quote>
each place it appears and inserting <quote>an eligible entity</quote>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE6F36DCD087342A6B5CD3D3E0E394C7A"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>biorefinery</quote> each
place it appears and inserting <quote>eligible entity</quote>.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="ID3de4cb4f6cf44a12889a4f8c55a17e06" section-type="subsequent-section"><enum>304.</enum><header display-inline="yes-display-inline">Rural Energy for America Program</header>
<subsection commented="no" display-inline="no-display-inline" id="id795FED80F4F243218C0AAB9C611D9811"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Of the amounts in the Rural Clean Energy
Resources Fund established under section 305, the Secretary shall use such
funds as are appropriate to carry out the Rural Energy for America Program
under section 9007 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8107).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id7F09DDBC0ADC40A891CAF82C0FF42DE3"><enum>(b)</enum><header display-inline="yes-display-inline">Limitation on grants</header><text display-inline="yes-display-inline">Section 9007(c)(4)(A) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 8107(c)(4)(A)) is amended by
striking <quote>25 percent</quote> and inserting <quote>50
percent</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id1C08519DB97341E989591913F96D5D33" section-type="subsequent-section"><enum>305.</enum><header display-inline="yes-display-inline">Rural Clean Energy Resources Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="id81E9572A19D94E7EBD5C7E03B8DDC217"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">There is established in the Treasury a
separate account, to be known as the <quote>Rural Clean Energy Resources
Fund</quote>, to carry out this title and title IV.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD17469F102D94C108C2914F619D937DE"><enum>(b)</enum><header display-inline="yes-display-inline">Availability</header><text display-inline="yes-display-inline">All amounts deposited into the Fund shall
be available without further appropriation or fiscal year limitation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id83F5CF0D13324C7589C2CC7FE4907DD3"><enum>(c)</enum><header display-inline="yes-display-inline">Use</header><text display-inline="yes-display-inline">The Secretary shall use amounts in the Fund
to carry out this title and title IV.</text>
</subsection></section><enum>IV</enum><header display-inline="yes-display-inline">Agriculture and forestry research for
greenhouse gas mitigation</header>
<section commented="no" display-inline="no-display-inline" id="IDecf5a6e0610f4f73a226db241a0eb8d7" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID52b09f232a994916bae77cc08aef588c"><enum>(1)</enum><text display-inline="yes-display-inline">as of the date of enactment of this Act,
the agricultural and forestry sectors of the United States extract the
equivalent of about 12 percent of the annual greenhouse gas emissions of the
United States through carbon dioxide absorption from the atmosphere;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2c995bac529a47e1a4c613fedbd4da4c"><enum>(2)</enum><text display-inline="yes-display-inline">that percentage can be significantly
increased through a number of activities that increase carbon sequestration in
soils or forests;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID32eb78afa23c41ac844daf8d6bc21e4a"><enum>(3)</enum><text display-inline="yes-display-inline">agriculture and forestry are experiencing
the effects of global warming, which are expected to increase; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD6312E34099942CF810B2544AA9DB80F"><enum>(4)</enum><text display-inline="yes-display-inline">adaptation practices to mitigate the
effects of global warming are needed to sustain agricultural and forest
productivity and health.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="IDc4b458012ca441daa8174ce1a1525e71" section-type="subsequent-section"><enum>402.</enum><header display-inline="yes-display-inline">Research and demonstration program</header>
<subsection commented="no" display-inline="no-display-inline" id="ID750f77b52283423884192a5379d510fa"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall carry out research and
demonstration activities regarding—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID4ddb9f578443418a9f1994bfccbfacbd"><enum>(1)</enum><text display-inline="yes-display-inline">approaches to sequestering carbon through
agricultural, grazing, and forestry practices, including quantification of
sequestration effects;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6fc91f555fe24f249d8a2109b49d5b9f"><enum>(2)</enum><text display-inline="yes-display-inline">approaches to reducing methane emissions
associated with agricultural production (including livestock and crop
production), including quantification of those reductions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDfb0b9ee243914b378aa548a3b2da1cc4"><enum>(3)</enum><text display-inline="yes-display-inline">approaches to reducing nitrous oxide
emissions associated with agricultural production (including crop and livestock
production), including quantification of those reductions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID89c0a97636394b2faf6b6c056ed527d5"><enum>(4)</enum><text display-inline="yes-display-inline">approaches to adaptation of agriculture and
forestry practices to the effects of global warming in order to maintain
productivity and natural resources;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDbe11f53cb1be4ae88f1e1f6681f8aae9"><enum>(5)</enum><text display-inline="yes-display-inline">new approaches to soil carbon
sequestration, such as the production of biochar and the use of biochar as a
soil conditioner;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDa1b359b7149d44638b51633af46eb0aa"><enum>(6)</enum><text display-inline="yes-display-inline">approaches to help specialty crop producers
to reduce net greenhouse gas emissions or sequester carbon; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2ec11be11abf4504b82c72c994cf79ed"><enum>(7)</enum><text display-inline="yes-display-inline">methods to reduce uncertainties in
estimating greenhouse gas emission reductions and carbon sequestration through
agricultural and forestry activities.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id71AB219720C64420B8CC4D4052856E63"><enum>(b)</enum><header display-inline="yes-display-inline">Fund</header><text display-inline="yes-display-inline">Of the amounts in the Rural Clean Energy
Resources Fund established under section 305, the Secretary shall use such
funds as are appropriate to carry out this section.</text>
</subsection></section>