[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3379 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3379

To amend the Clean Air Act to reduce carbon pollution and create clean 
                              energy jobs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2010

  Mrs. Boxer introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
To amend the Clean Air Act to reduce carbon pollution and create clean 
                              energy jobs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pollution and Costs Reduction Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) actions taken to reduce greenhouse gas emissions and 
        emissions of other air pollutants, as defined in section 302 of 
        the Clean Air Act (42 U.S.C. 7602), will spur investments that 
        create new jobs and foster innovation and entrepreneurship in 
        clean technology industries; and
            (2) on April 2, 2007, in Massachusetts v. EPA, 549 U.S. 497 
        (2007), the Supreme Court held that greenhouse gases are air 
        pollutants, as defined in section 302 of the Clean Air Act (42 
        U.S.C. 7602).

SEC. 3. BUILDING POLLUTION REDUCTION PROGRAM.

    Section 105 of the Clean Air Act (42 U.S.C. 7405) is amended by 
adding at the end the following:
    ``(f) Building Pollution Reduction Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Air pollutant.--The term `air pollutant' has 
                the meaning given the term in section 302.
                    ``(B) Greenhouse gases.--The term `greenhouse 
                gases' means carbon dioxide, methane, nitrous oxide, 
                hydrofluorocarbons, perfluorocarbons, and sulfur 
                hexafluoride.
                    ``(C) Greenhouse gas emissions.--The term 
                `greenhouse gas emissions' means--
                            ``(i) direct greenhouse gas emissions from 
                        sources that are owned or controlled by an 
                        owner of a building; and
                            ``(ii) indirect greenhouse gas emissions 
                        resulting from the generation of electricity, 
                        heat, or steam purchased by the owner of a 
                        building.
                    ``(D) Renewable biomass.--The term `renewable 
                biomass' has the meaning given the term in section 
                211(o)(1).
            ``(2) Program.--The Administrator shall establish and carry 
        out a program, to be known as the `Building Pollution Reduction 
        Program', to provide assistance to owners of buildings in the 
        United States to reduce the emission of air pollutants and 
        building operating costs by--
                    ``(A) constructing highly efficient buildings in 
                the United States; or
                    ``(B) increasing the efficiency of and reducing the 
                greenhouse gas emissions associated with existing 
                buildings in the United States.
            ``(3) Requirements.--The Administrator shall provide 
        assistance under this section to owners of buildings in the 
        United States based on the extent to which projects relating to 
        the buildings of the owners result in verifiable, additional, 
        and enforceable reductions in emissions of air pollutants 
        through operational improvements such as--
                    ``(A) improved energy efficiency;
                    ``(B) increased water-use efficiency;
                    ``(C) use of renewable energy sources; and
                    ``(D) such additional measures, as determined by 
                the Administrator, as will result in a measurable 
                decrease in emissions of air pollutants.
            ``(4) Priority.--In providing assistance under this 
        subsection, the Administrator shall give priority to projects 
        that--
                    ``(A) achieve the following minimum scores as 
                evaluated by energy performance benchmarking tools--
                            ``(i) in new or renovated buildings that 
                        demonstrate exemplary performance by 
                        achieving--
                                    ``(I) a minimum score of 75 on the 
                                benchmarking tool of the Energy Star 
                                program established by section 324A of 
                                the Energy Policy and Conservation Act 
                                (42 U.S.C. 6294a); or
                                    ``(II) an equivalent score on an 
                                established energy performance 
                                benchmarking metric selected by the 
                                Administrator, such as the metric used 
                                for the National Building Rating 
                                Program of the Department of Energy; 
                                and
                            ``(ii) in retrofitted existing buildings 
                        that demonstrate--
                                    ``(I) substantial improvement in 
                                the score or rating on the benchmarking 
                                tool described in clause (i) by a 
                                minimum of 30 points; or
                                    ``(II) an equivalent improvement 
                                using an established performance 
                                benchmarking metric selected by the 
                                Administrator;
                    ``(B) are completed by building owners with a 
                proven track record of reducing pollution through the 
                measures described in paragraph (3); and
                    ``(C) result in measurable pollution reduction 
                benefits not encompassed within the metrics of the 
                Energy Star program described in subparagraph 
                (A)(i)(I).
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to the Administrator to carry out this 
        section $50,000,000 for each of fiscal years 2011 through 
        2015.''.

SEC. 4. ADVANCED BIOFUELS.

    (a) Findings.--Congress finds that--
            (1) according to the Environmental Protection Agency, the 
        transportation sector is responsible for a significant quantity 
        of the greenhouse gas emissions of the United States;
            (2) advanced, environmentally sustainable biofuels can help 
        promote a safe, secure, and domestic source of low-carbon fuels 
        that reduce the emissions of pollutants (as defined in section 
        302 of the Clean Air Act (42 U.S.C. 7602)); and
            (3) such biofuels can--
                    (A) help the United States reduce greenhouse gas 
                emissions, which are considered to be air pollutants 
                under section 302 of that Act (42 U.S.C. 7602); and
                    (B) benefit consumers and environmental quality.
    (b) Definition of Advanced Green Biofuel.--Section 211(o)(1) of the 
Clean Air Act (42 U.S.C. 7545(o)(1)) is amended--
            (1) by redesignating subparagraphs (C) through (L) as 
        subparagraphs (D) through (M), respectively; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) Advanced green biofuel.--The term `advanced 
                green biofuel' means an advanced biofuel that the 
                Administrator determines--
                            ``(i) has lifecycle greenhouse gas 
                        emissions that are at least 60 percent less 
                        than the baseline lifecycle greenhouse gas 
                        emissions;
                            ``(ii) is made from advanced renewable 
                        biomass; and
                            ``(iii) minimizes biorefinery water 
                        requirements to the maximum extent achievable, 
                        taking into consideration costs and other 
                        appropriate factors.''.
    (c) Advanced Biofuels.--Section 211 of the Clean Air Act (42 U.S.C. 
7545) is amended by inserting after subsection (o) the following:
    ``(p) Advanced Biofuels.--
            ``(1) Definition of advanced renewable biomass.--In this 
        subsection:
                    ``(A) Advanced renewable biomass.--The term 
                `advanced renewable biomass' means renewable biomass 
                that is produced using sustainable practices, as 
                determined by the Administrator, in consultation with 
                the Secretary of Agriculture, taking into consideration 
                factors such as--
                            ``(i) the maintenance and enhancement of 
                        the quality and productivity of the soil;
                            ``(ii) the conservation of soil, water, 
                        energy, natural resources, and fish and 
                        wildlife habitat;
                            ``(iii) the maintenance and enhancement of 
                        the quality of surface water and groundwater;
                            ``(iv) the protection of the health and 
                        safety of individuals involved in the 
                        production system;
                            ``(v) the promotion of the well-being of 
                        animals;
                            ``(vi) the increase in employment 
                        opportunities in the agricultural sector; and
                            ``(vii) prevention of the introduction of 
                        invasive species, including consideration of a 
                        review by the Invasive Species Council 
                        established by Executive Order 13112 (64 Fed. 
                        Reg. 6183 (February 3, 1999)).
                    ``(B) Program.--The term `Program' means the 
                1,000,000,000-Gallon Challenge Grant Program 
                established under paragraph (2)(A).
                    ``(C) Renewable biomass.--The term `renewable 
                biomass' has the meaning given the term in subsection 
                (o)(1).
            ``(2) 1,000,000,000-gallon challenge grant program.--
                    ``(A) Establishment.--The Administrator shall 
                establish within the Environmental Protection Agency a 
                program, to be known as the `1,000,000,000-Gallon 
                Challenge Grant Program', under which the Administrator 
                shall provide grants in accordance with this 
                subsection.
                    ``(B) Applications.--
                            ``(i) In general.--During each calendar 
                        year for the period described in clause (ii), 
                        the Administrator shall solicit applications 
                        for grants under the Program from owners and 
                        operators of projects that, as determined by 
                        the Administrator, have the potential, in the 
                        aggregate, to produce up to 500,000,000 gallons 
                        in annual domestic production capacity of 
                        advanced green biofuels.
                            ``(ii) Description of period.--The period 
                        referred to in clause (i) is the period that--
                                    ``(I) begins on the date of 
                                establishment of the Program; and
                                    ``(II) ends on the date on which, 
                                as determined by the Administrator, the 
                                Program supports projects that have the 
                                potential to produce, or are producing, 
                                not less than 1,000,000,000 gallons in 
                                annual domestic production capacity of 
                                advanced green biofuels.
                            ``(iii) Adjustments.--
                                    ``(I) Definition of adjustment 
                                period.--In this clause, the term 
                                `adjustment period' means the period 
                                that--
                                            ``(aa) begins on the date 
                                        of establishment of the 
                                        Program; and
                                            ``(bb) ends on the earlier 
                                        of, as determined by the 
                                        Administrator--

                                                    ``(AA) the date on 
                                                which the Program 
                                                supports projects that 
                                                have the potential to 
                                                produce, or are 
                                                producing, not less 
                                                than 1,000,000,000 
                                                gallons in annual 
                                                domestic production 
                                                capacity of advanced 
                                                green biofuels; and

                                                    ``(BB) the date on 
                                                which the Program 
                                                achieves the annual 
                                                domestic production 
                                                capacity targets of the 
                                                Program.

                                    ``(II) Solicitation of 
                                applications.--For any calendar year 
                                during the adjustment period for which 
                                an application for a grant under the 
                                Program is withdrawn, or for which a 
                                recipient of a grant under the Program 
                                fails to meet the domestic production 
                                capacity targets of the recipient (as 
                                determined by the Administrator), the 
                                Administrator shall solicit additional 
                                applications for grants under the 
                                Program.
                            ``(iv) Application policy.--The grant 
                        solicitation process of the Program shall 
                        provide for, as determined by the 
                        Administrator--
                                    ``(I) simplified, standardized, and 
                                timely solicitation of applications; 
                                and
                                    ``(II) a simplified, standardized 
                                funding process that requires--
                                            ``(aa) timely receipt and 
                                        review of applications; and
                                            ``(bb) protection of 
                                        proprietary information 
                                        provided in applications.
                    ``(C) Types of grants.--In carrying out the 
                Program, the Administrator shall provide 4 types of 
                grants, as follows:
                            ``(i) Research and development grants.--
                                    ``(I) In general.--A research and 
                                development grant may be provided under 
                                the Program to a project that, as 
                                determined by the Administrator, will 
                                assist biofuel developers in producing 
                                advanced green biofuels by 
                                facilitating--
                                            ``(aa) the development of 
                                        technologies to produce 
                                        advanced green biofuels;
                                            ``(bb) the creation of 
                                        technologies used in facilities 
                                        that produce advanced green 
                                        biofuels; or
                                            ``(cc) the production of 
                                        advanced green biofuels, 
                                        including renewable biomass.
                                    ``(II) Limitation.--The amount of a 
                                research and development grant provided 
                                under the Program shall not exceed the 
                                lesser of--
                                            ``(aa) an amount equal to 
                                        80 percent of the cost of the 
                                        project; or
                                            ``(bb) $2,000,000.
                            ``(ii) Planning grants.--
                                    ``(I) In general.--A planning grant 
                                may be provided under the Program to a 
                                project that, as determined by the 
                                Administrator, will assist biofuel 
                                developers in producing advanced green 
                                biofuels by facilitating the 
                                development and finalization of project 
                                plans and contracts that demonstrate 
                                that the project--
                                            ``(aa) has the potential 
                                        for commercial viability; and
                                            ``(bb) is likely to be 
                                        operational by not later than 3 
                                        years after the date on which 
                                        the planning grant is provided.
                                    ``(II) Limitation.--The amount of a 
                                planning grant provided under the 
                                Program shall not exceed the lesser 
                                of--
                                            ``(aa) an amount equal to 
                                        80 percent of the cost of the 
                                        project; or
                                            ``(bb) $2,000,000.
                            ``(iii) Translational grants.--
                                    ``(I) In general.--A translational 
                                grant, which helps to create successful 
                                technological innovations and the 
                                commercial use of those innovations, 
                                may be provided under the Program to a 
                                project that, as determined by the 
                                Administrator, will assist biofuel 
                                developers in producing advanced green 
                                biofuels, including from the 
                                development of a basic proof-of-concept 
                                for the project to the establishment of 
                                a pilot-scale advanced green biofuel 
                                production facility through a phased 
                                process, as described in subclause 
                                (II).
                                    ``(II) Phases.--The phases referred 
                                to in subclause (I) are the following:
                                            ``(aa) Phase i.--A project 
                                        shall be considered to be in 
                                        phase I for purposes of this 
                                        subparagraph if the purpose of 
                                        the project is to determine the 
                                        scientific and technical merit 
                                        and feasibility of ideas that 
                                        appear to have commercial 
                                        potential, as described in item 
                                        (bb).
                                            ``(bb) Phase ii.--A project 
                                        shall be considered to be in 
                                        phase II for purposes of this 
                                        subparagraph if the purpose of 
                                        the project is to advance the 
                                        development of a project that 
                                        meets particular Program needs, 
                                        based on the scientific and 
                                        technical merit and feasibility 
                                        demonstrated in the application 
                                        for the project (as evidenced 
                                        by phase I of the project), 
                                        taking into consideration, 
                                        among other things, the 
                                        commercial potential of the 
                                        project, as evidenced by--

                                                    ``(AA) the record 
                                                of success of the 
                                                applicable biofuel 
                                                developer in 
                                                commercializing the 
                                                results of research;

                                                    ``(BB) the 
                                                existence of phase II-
                                                appropriate funding 
                                                commitments from the 
                                                private sector or a 
                                                funding source other 
                                                than the Program;

                                                    ``(CC) the 
                                                existence of 
                                                commitments for phase 
                                                III of the project; and

                                                    ``(DD) the presence 
                                                of other indicators of 
                                                the commercial 
                                                potential of the 
                                                project.

                                            ``(cc) Phase iii.--A 
                                        project shall be considered to 
                                        be in phase III for purposes of 
                                        this subclause if--

                                                    ``(AA) the project 
                                                has completed phases I 
                                                and II; and

                                                    ``(BB) commercial 
                                                application of, or the 
                                                continuation of work 
                                                on, the project will be 
                                                funded by the private 
                                                sector or a funding 
                                                source other than the 
                                                Program.

                                    ``(III) Limitation.--The amount of 
                                a translational grant provided under 
                                the Program shall not exceed the lesser 
                                of--
                                            ``(aa) an amount equal to 
                                        80 percent of the cost of the 
                                        project; or
                                            ``(bb) $8,000,000.
                            ``(iv) Construction grants.--
                                    ``(I) In general.--A construction 
                                grant may be provided under the Program 
                                to a project that, as determined by the 
                                Administrator--
                                            ``(aa) will assist biofuel 
                                        developers in producing 
                                        advanced green biofuels by 
                                        paying construction costs and 
                                        other costs;
                                            ``(bb) demonstrates the 
                                        potential for commercial 
                                        success; and
                                            ``(cc) will commence 
                                        construction by not later than 
                                        1 year after the date on which 
                                        the construction grant is 
                                        provided.
                                    ``(II) Limitation.--The amount of a 
                                construction grant provided under the 
                                Program shall not exceed an amount 
                                equal to 60 percent of the cost of the 
                                project.
                    ``(D) Selection.--
                            ``(i) Research and development grants.--In 
                        evaluating applications for research and 
                        development grants under the Program, the 
                        Administrator shall take into consideration--
                                    ``(I) the potential of a project 
                                for commercial viability;
                                    ``(II) the potential of the project 
                                to provide environmental and public 
                                health benefits;
                                    ``(III) the potential of the 
                                project to use existing fuel delivery 
                                and distribution systems; and
                                    ``(IV) such other factors as the 
                                Administrator determines to be 
                                appropriate.
                            ``(ii) Planning grants.--In evaluating 
                        applications for planning grants under the 
                        Program, the Administrator shall take into 
                        consideration--
                                    ``(I) the potential of a project 
                                for commercial viability;
                                    ``(II) the potential of the project 
                                to provide environmental and public 
                                health benefits;
                                    ``(III) the potential of the 
                                project to use existing fuel delivery 
                                and distribution systems;
                                    ``(IV) the scalability of the 
                                project; and
                                    ``(V) such other factors as the 
                                Administrator determines to be 
                                appropriate.
                            ``(iii) Translational grants.--In 
                        evaluating applications for translational 
                        grants under the Program, the Administrator 
                        shall take into consideration--
                                    ``(I) the potential of a project 
                                for commercial viability;
                                    ``(II) the potential of the project 
                                to provide environmental and public 
                                health benefits;
                                    ``(III) the potential of the 
                                project to use existing fuel delivery 
                                and distribution systems;
                                    ``(IV) the scalability of the 
                                project; and
                                    ``(V) such other factors as the 
                                Administrator determines to be 
                                appropriate.
                            ``(iv) Construction grants.--In evaluating 
                        applications for construction grants under the 
                        Program, the Administrator shall take into 
                        consideration--
                                    ``(I) the potential of a project 
                                for commercial success;
                                    ``(II) the potential of the project 
                                to provide environmental and public 
                                health benefits;
                                    ``(III) the potential of the 
                                project to use existing fuel delivery 
                                and distribution systems;
                                    ``(IV) the scalability of the 
                                project;
                                    ``(V) the readiness of the project 
                                to commence construction by not later 
                                than 1 year after the date on which the 
                                construction grant is provided; and
                                    ``(VI) such other factors as the 
                                Administrator determines to be 
                                appropriate.
                            ``(v) Exercise of discretion in funding 
                        projects.--The Administrator shall not exclude 
                        an application from consideration under this 
                        subparagraph solely on the basis that the 
                        project that is the subject of the application 
                        uses, or proposes to use, any item described in 
                        subsection (o)(1)(I).
                    ``(E) Coordination with complementary programs.--
                            ``(i) Definition of complementary 
                        program.--In this subparagraph, the term 
                        `complementary program' means a grant program 
                        under any other provision of law (including a 
                        regulation) under which a recipient of a grant 
                        under the Program receives, or has the 
                        potential to receive, funds to assist the 
                        project of the recipient to achieve 
                        environmental performance standards equivalent 
                        to, or greater than, the standards required 
                        under the Program.
                            ``(ii) Effect of program.--
                                    ``(I) In general.--A grant provided 
                                to a recipient under the Program--
                                            ``(aa) shall be provided in 
                                        addition to any grant provided 
                                        to the recipient under a 
                                        complementary program; and
                                            ``(bb) shall not be 
                                        diminished as a result of 
                                        receipt by the recipient of 
                                        funds under any complementary 
                                        program.
                                    ``(II) Amount of other grants.--
                                Receipt of a grant under the Program 
                                shall not affect the amount the 
                                recipient is otherwise eligible to 
                                receive under any complementary 
                                program.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $500,000,000 
        for the period of fiscal years 2011 through 2015.''.
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