1.This Act may be cited as
the Pollution and Costs Reduction
Act
.
2.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).
3.Building
pollution reduction programSection 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)In
this subsection:
(A)The term air pollutant has the meaning
given the term in section 302.
(B)The term greenhouse gases means carbon
dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and
sulfur hexafluoride.
(C)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)The term renewable biomass has the meaning
given the term in section 211(o)(1).
(2)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)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)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 appropriationsThere is authorized to be appropriated to the
Administrator to carry out this section $50,000,000 for each of fiscal years
2011 through
2015.
.
4.
(a)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 biofuelSection 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)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)Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by inserting after subsection (o) the following:
(p)
(1)Definition of
advanced renewable biomassIn
this subsection:
(A)Advanced
renewable biomassThe 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)The
term Program means the 1,000,000,000-Gallon Challenge Grant
Program established under paragraph (2)(A).
(C)The term renewable biomass has the meaning
given the term in subsection (o)(1).
(2)1,000,000,000-Gallon
Challenge Grant Program
(A)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)
(i)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)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)
(I)Definition of
adjustment periodIn 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 applicationsFor 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)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)In carrying out the Program, the Administrator shall
provide 4 types of grants, as follows:
(i)Research and
development grants
(I)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)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)
(I)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)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)
(I)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)The
phases referred to in subclause (I) are the following:
- (aa)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)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)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)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)
(I)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)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)
(i)Research and
development grantsIn 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)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)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)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 projectsThe 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 programIn 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)
(I)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)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 appropriationsThere is
authorized to be appropriated to carry out this subsection $500,000,000 for the
period of fiscal years 2011 through
2015.
.