[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 332 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 332
To address climate disruptions, reduce carbon pollution, enhance the
use of clean energy, and promote resilience in the infrastructure of
the United States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 14, 2013
Mr. Sanders (for himself and Mrs. Boxer) introduced the following bill;
which was read twice and referred to the Committee on Environment and
Public Works
_______________________________________________________________________
A BILL
To address climate disruptions, reduce carbon pollution, enhance the
use of clean energy, and promote resilience in the infrastructure of
the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Climate Protection
Act of 2013''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--CARBON POLLUTION FEE
Sec. 101. Carbon pollution fee.
Sec. 102. Residential environmental rebate program.
Sec. 103. Pollution Reduction Trust Fund.
TITLE II--SUSTAINABLE TECHNOLOGIES FINANCE PROGRAM
Sec. 201. Sustainable Technologies Finance Program.
Sec. 202. Budgetary effects.
TITLE III--ENVIRONMENTAL PROTECTION
Sec. 301. Regulation of hydraulic fracturing.
Sec. 302. Reports to Congress.
Sec. 303. Sense of Congress relating to reduction in greenhouse gas
emissions.
TITLE I--CARBON POLLUTION FEE
SEC. 101. CARBON POLLUTION FEE.
(a) In General.--Title I of the Clean Air Act (42 U.S.C. 7401 et
seq.) is amended by adding at the end the following:
``PART E--CARBON POLLUTION FEE
``SEC. 195. DEFINITIONS.
``In this part:
``(1) Carbon polluting substance.--The term `carbon
polluting substance' means coal (including lignite and peat),
petroleum and any petroleum product, or natural gas that--
``(A) when combusted or otherwise used, will
release greenhouse gas emissions; and
``(B) is--
``(i) extracted, manufactured, or produced
in the United States; or
``(ii) imported into the United States for
consumption, use, or warehousing.
``(2) Carbon pollution-intensive good.--The term `carbon
pollution-intensive good' means a good that is (as identified
by the Administrator, by rule)--
``(A) iron, steel, a steel mill product (including
pipe and tube), aluminum, cement, glass (including
flat, container, and specialty glass and fiberglass),
pulp, paper, a chemical, or an industrial ceramic;
``(B) any other manufactured product that the
Administrator determines--
``(i) is transferred for purposes of
further manufacture; and
``(ii) generates, in the course of the
manufacture of the product, direct and indirect
greenhouse gas emissions that are comparable
(on an emissions-per-dollar of output basis) to
emissions generated in the manufacture or
production of a product identified in
subparagraph (A); or
``(C) a manufactured item--
``(i) in which 1 or more products
identified in subparagraph (A) or (B) are
inputs; and
``(ii) the cost of production of which in
the United States is significantly increased by
the imposition of a fee under this part.
``(3) First calendar year.--The term `first calendar year'
means the earlier of--
``(A) calendar year 2014; or
``(B) the first calendar year beginning at least
180 days after the date of enactment of this part.
``(4) Substantially equivalent measure.--The term
`substantially equivalent measure' means a fee or other
regulatory requirement that imposes a cost on manufacturers of
carbon pollution-intensive goods located outside the United
States approximately equal to the cost imposed by the fee under
this part on manufacturers of comparable carbon pollution-
intensive goods located in the United States.
``(5) 12th calendar year.--The term `12th calendar year'
means the calendar year beginning 12 years after the first
calendar year.
``SEC. 196. IMPOSITION OF FEE.
``(a) In General.--The Administrator shall impose on any
manufacturer, producer, or importer of a carbon polluting substance a
fee in accordance with this section.
``(b) Amount.--
``(1) In general.--The amount of the carbon pollution fee
imposed under subsection (a) on any carbon polluting substance
shall be assessed per ton of carbon dioxide content (including
carbon dioxide equivalent content of methane) of the carbon
polluting substance, as determined by the Administrator, in
consultation with the Secretary of Energy.
``(2) Fractional part of ton.--In the case of a fraction of
a ton of a carbon polluting substance, the fee imposed under
subsection (a) shall be the same fraction of the amount of the
fee imposed on a whole ton of the carbon polluting substance.
``(3) Applicable amount.--For purposes of paragraph (1),
the amount of the fee shall be--
``(A) for the first calendar year, $20;
``(B) for each calendar year occurring after the
first calendar year and before the 12th calendar year,
an amount equal to the sum of--
``(i) the amount in effect under this
paragraph for the preceding calendar year; and
``(ii) the product (rounded to the nearest
dollar) obtained by multiplying--
``(I) the amount described in
clause (i); and
``(II) 5.6 percent; and
``(C) for the 12th calendar year and any calendar
year thereafter, the amount in effect under this
paragraph for the preceding calendar year.
``(c) Single Imposition of Fee.--No fee shall be imposed under
subsection (a) with respect to a carbon polluting substance if the
person that would be liable for the fee establishes that a prior fee
imposed under that subsection has been imposed with respect to that
carbon polluting substance.
``(d) Limitations.--No fee shall be imposed against a person under
subsection (a) for a calendar year if during that calendar year, in
accordance with such regulations as the Administrator may prescribe--
``(1) the person uses a carbon polluting substance as a
feedstock so that the carbon associated with that carbon
polluting substance will not be emitted;
``(2) a fee under subsection (a) was paid with respect to
another carbon polluting substance that is used by the person
in the manufacture or production of the applicable carbon
polluting substance; or
``(3) the carbon polluting substance is exported.
``SEC. 197. CARBON EQUIVALENCY FEE.
``(a) Imports.--
``(1) In general.--The Administrator shall impose a carbon
equivalency fee on imports of carbon pollution-intensive goods
that shall be equivalent to the cost that domestic producers of
comparable carbon pollution-intensive goods incur as a result
of--
``(A) fees paid by manufacturers, producers, and
importers of carbon polluting substances under this
part; and
``(B) carbon equivalency fees paid by importers of
carbon pollution-intensive goods used in the production
of the relevant comparable carbon pollution-intensive
goods.
``(2) Determination of fee amount.--
``(A) In general.--The amount of the carbon
equivalency fee under paragraph (1) shall be--
``(i) determined annually; and
``(ii) differentiated by classes of
products and country of origin, taking into
account the quantity of greenhouse gas
emissions released during the process of
manufacturing the carbon pollution-intensive
goods and transporting the carbon pollution-
intensive goods from the country of origin.
``(B) Petitions for adjustment.--The Administrator
shall provide for a process for petitioning for
adjustment to any fees determined under this
subsection.
``(b) Use of Proceeds.--
``(1) Transfer of funds.--For each applicable fiscal year,
the Secretary of the Treasury shall transfer to the
Administrator and the Secretary of Transportation an amount
equal to 50 percent each of the amounts received during the
preceding fiscal year as a result of the carbon equivalency fee
imposed under subsection (a), without further appropriation.
``(2) Use of funds.--
``(A) Environment.--The Administrator, in
consultation with the Secretary of Agriculture, the
Secretary of the Interior, and the Secretary of State,
shall use the amounts transferred under paragraph (1)--
``(i) as a primary purpose, to provide
amounts to State and local programs that assist
communities in--
``(I) adapting to climate change;
``(II) improving the resiliency of
critical infrastructure; and
``(III) protecting environmental
quality and wildlife; and
``(ii) as a secondary purpose, to meet
international commitments made by the United
States to assist with climate change
adaptation.
``(B) Transportation.--The Secretary of
Transportation shall use the amounts transferred under
paragraph (1) to provide amounts--
``(i) to State and local programs that
assist communities in improving the resiliency
of critical infrastructure; and
``(ii) for projects that provide
preferential parking for carpools, including
the addition of electric vehicle charging
stations, subject to the condition that the
primary purpose of the facilities is the
reduction of vehicular traffic on nearby
Federal-aid highways.
``(c) Expiration.--This section shall cease to have effect at such
time as, and to the extent that--
``(1)(A) in the case of countries of export that adopt and
ratify an international agreement requiring countries that emit
greenhouse gases and produce carbon pollution-intensive goods
for international markets to adopt equivalent measures, the
international agreement comes into effect; or
``(B) the country of export has implemented substantially
equivalent measures, as certified by the President of the
United States; and
``(2) the actions provided under subsection (a) are no
longer appropriate, as determined by the Administrator.
``SEC. 198. REPORT TO CONGRESS.
``Not later than 5 years after the date of enactment of this part,
the Administrator shall submit to Congress a report that includes
recommendations for--
``(1) the administration of the carbon pollution fee
program under this part for calendar years beginning after the
12th calendar year, including a schedule for establishing the
amount of the fee for those subsequent calendar years; and
``(2) future investments to reduce greenhouse gas emissions
and provide resources for climate change adaptation.''.
(b) Technical Amendments.--Title IV of the Clean Air Act (relating
to noise pollution) (42 U.S.C. 7641 et seq.) is--
(1) amended by redesignating sections 401 through 403 as
sections 701 through 703, respectively; and
(2) redesignated as title VII and moved to appear at the
end of that Act.
SEC. 102. RESIDENTIAL ENVIRONMENTAL REBATE PROGRAM.
(a) In General.--There is authorized to be appropriated to the
Administrator of the Environmental Protection Agency (referred to in
this section as the ``Administrator'') an amount equal to \3/5\ of the
amounts received in the Treasury as the result of the fee imposed under
section 196 of the Clean Air Act (as added by section 101(a)) to
provide a monthly residential environmental rebate to legal residents
of the United States.
(b) Regulations.--As soon as practicable after the date of
enactment of this Act, the Administrator shall promulgate regulations
establishing procedures for the distribution of residential
environmental rebates under subsection (a), including procedures that
provide, to the maximum extent practicable, for--
(1) the coordination of the monthly residential
environmental rebate with other Federal and State payment
mechanisms;
(2) the use of electronic transfers of the monthly
residential environmental rebates; and
(3) the establishment of an Office of Environmental Rebate
Advocate within the Environmental Protection Agency to assist
households with accessing and using the residential
environmental rebate program.
(c) Administrative Costs.--Of the amounts reserved for rebates
under this section, not more than 1 percent shall be used to administer
the program under this section.
SEC. 103. POLLUTION REDUCTION TRUST FUND.
(a) Establishment.--There is established in the Treasury of the
United States a trust fund to be known as the ``Pollution Reduction
Trust Fund'' (referred to in this section as the ``Trust Fund''),
consisting of such amounts as are transferred to the Trust Fund under
subsection (b) and to be used to facilitate the implementation of the
carbon pollution reduction program.
(b) Transfers to Trust Fund.--After setting aside amounts under
section 102(a), there is appropriated to the Trust Fund an amount
equivalent to the remaining revenues received in the Treasury as the
result of the fee imposed under section 196 of the Clean Air Act (as
added by section 101(a)).
(c) Distribution of Amounts.--Amounts in the Trust Fund for a
calendar year shall be available without further appropriation, as
follows:
(1) $7,500,000,000 shall be available to the Administrator
of the Environmental Protection Agency, for each of the first
10 calendar years beginning after the date of enactment of this
Act, to mitigate the economic impacts of the fee imposed under
section 196 of the Clean Air Act (as added by section 101(a))
on energy-intensive and trade-exposed industries, to be
distributed in accordance with regulations promulgated by the
Administrator, subject to the requirement that the
Administrator shall reserve not less than \1/4\ of those
amounts for energy efficiency investments in energy-intensive
or trade-exposed industries.
(2) $5,000,000,000 shall be available to the Secretary of
Energy to carry out the Weatherization Assistance Program for
Low-Income Persons established under part A of title IV of the
Energy Conservation and Production Act (42 U.S.C. 6861 et seq.)
for each of the first 10 calendar years beginning after the
date of enactment of this Act.
(3) $1,000,000,000 shall be available to the Secretary of
Labor for each of the first 10 calendar years beginning after
the date of enactment of this Act for job training, education,
and transition assistance for individuals employed by the
fossil fuel industry seeking to transition to clean energy
jobs.
(4) $2,000,000,000 shall be available for the Advanced
Research Projects Agency-Energy for each of the first 10
calendar years beginning after the date of enactment of this
Act.
(5) The balance shall be used for Federal budget deficit
reduction.
TITLE II--SUSTAINABLE TECHNOLOGIES FINANCE PROGRAM
SEC. 201. SUSTAINABLE TECHNOLOGIES FINANCE PROGRAM.
(a) Establishment.--The Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall establish a program, and promulgate any
necessary regulations to carry out the program, to be known as the
``Sustainable Technologies Finance Program'', under which the
Administrator shall provide loans, credit instruments, loan guarantees,
and other financial assistance, including in the form of assistance for
public-private partnerships, for eligible projects carried out in the
United States that reduce greenhouse gas emissions.
(b) Eligible Projects.--A project shall be eligible to receive
financial assistance under this section if the project reduces
greenhouse gas emissions as determined by the Administrator, and uses--
(1) a technology for--
(A) energy efficiency;
(B) combined heat and power;
(C) solar energy, including--
(i) photovoltaic energy;
(ii) thermal energy;
(iii) wind energy; and
(iv) geothermal energy, including
groundsource heat pumps;
(D) biomass or biofuels that are not sourced from
food crops;
(E) ocean, tidal, or hydropower energy;
(F) electric vehicle infrastructure;
(G) advanced battery or energy storage; or
(H) rail, transit, or public transportation; or
(2) any other transportation technology that offers a
reduction in greenhouse gas emissions, as determined by the
Administrator.
(c) Applications.--To be eligible to receive financial assistance
under this section, the owner or operator of an eligible project shall
submit to the Administrator an application at such time, in such
manner, and containing such information as the Administrator may
require.
(d) Priority.--In providing financial assistance under this
section, the Administrator shall give priority to projects that provide
the largest greenhouse gas emissions reductions per Federal dollar
invested, as determined by the Administrator.
(e) Funding.--
(1) In general.--Notwithstanding any other provision of
law, on October 1, 2013, and on each October 1 thereafter
through October 1, 2022, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Administrator for the cost of grants, loans,
and loan guarantees to carry out this section, $5,000,000,000,
to remain available until expended.
(2) Receipt and acceptance.--The Administrator shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1), without
further appropriation.
(3) Administrative costs.--Of the amounts made available to
carry out this section, the Administrator may use not more than
2 percent for each fiscal year for the administration of this
section.
SEC. 202. BUDGETARY EFFECTS.
The budgetary effects of this title, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Senate Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
TITLE III--ENVIRONMENTAL PROTECTION
SEC. 301. REGULATION OF HYDRAULIC FRACTURING.
(a) Disclosure.--Section 1421(b) of the Safe Drinking Water Act (42
U.S.C. 300h(b)) is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraph (3) as paragraph (2); and
(3) by adding at the end the following:
``(3) Disclosures of chemical constituents.--
``(A) In general.--A person conducting hydraulic
fracturing operations shall disclose to the State (or
to the Administrator, in any case in which the
Administrator has primary enforcement responsibility in
a State), by not later than such deadlines as shall be
established by the State (or the Administrator)--
``(i) before the commencement of any
hydraulic fracturing operations at any area or
a portion of a area, a list of chemicals
intended for use in any underground injection
during the operations (including identification
of the chemical constituents of mixtures,
Chemical Abstracts Service numbers for each
chemical and constituent, material safety data
sheets when available, and the anticipated
volume of each chemical to be used); and
``(ii) after the completion of hydraulic
fracturing operations described in clause (i),
the list of chemicals used in each underground
injection during the operations (including
identification of the chemical constituents of
mixtures, Chemical Abstracts Service numbers
for each chemical and constituent, material
safety data sheets when available, and the
volume of each chemical used).
``(B) Public availability.--The State (or the
Administrator, as applicable) shall make available to
the public the information contained in each disclosure
of chemical constituents under subparagraph (A),
including by posting the information on an appropriate
Internet website.
``(C) Immediate disclosure in case of medical
emergency.--
``(i) In general.--Subject to clause (ii),
the regulations promulgated pursuant to
subsection (a) shall require that, in any case
in which the State (or the Administrator, as
applicable) or an appropriate treating
physician or nurse determines that a medical
emergency exists and the proprietary chemical
formula or specific chemical identity of a
trade-secret chemical used in hydraulic
fracturing is necessary for medical treatment,
the applicable person using hydraulic
fracturing shall, upon request, immediately
disclose to the State (or the Administrator) or
the treating physician or nurse the proprietary
chemical formula or specific chemical identity
of a trade-secret chemical, regardless of the
existence of--
``(I) a written statement of need;
or
``(II) a confidentiality agreement.
``(ii) Requirement.--A person using
hydraulic fracturing that makes a disclosure
required under clause (i) may require the
execution of a written statement of need and a
confidentiality agreement as soon as
practicable after the determination by the
State (or the Administrator) or the treating
physician or nurse under that clause.
``(D) No public disclosure required.--Nothing in
subparagraph (A) or (B) authorizes a State (or the
Administrator) to require the public disclosure of any
proprietary chemical formula.''.
(b) Definitions.--Section 1421(d) of the Safe Drinking Water Act
(42 U.S.C. 300h(d)) is amended by striking paragraph (1) and inserting
the following:
``(1) Underground injection.--
``(A) In general.--The term `underground injection'
means the subsurface emplacement of fluids by well
injection.
``(B) Inclusion.--The term `underground injection'
includes the underground injection of fluids or
propping agents pursuant to hydraulic fracturing
operations relating to oil or gas production
activities.
``(C) Exclusion.--The term `underground injection'
does not include the underground injection of natural
gas for the purpose of storage.''.
(c) State Primary Enforcement Responsibility.--Section 1422 of the
Safe Drinking Water Act (42 U.S.C. 300h-1) is amended by striking
subsection (c) and inserting the following:
``(c) Disapproval of a State Program.--
``(1) In general.--If the Administrator disapproves a State
program (or part of a program) under subsection (b)(2) or
determines under subsection (b)(3) that a State no longer meets
the requirements of clause (i) or (ii) of subsection (b)(1)(A),
or if a State fails to submit an application or notice before
the date of expiration of the period specified in subsection
(b)(1), not later than 90 days after the date of the
disapproval, determination, or expiration (as applicable), the
Administrator, by regulation, shall prescribe (and may from
time to time by regulation revise) a program applicable to the
State that meets the requirements of section 1421(b).
``(2) Other program not in effect.--A program prescribed by
the Administrator under paragraph (1) shall apply in the State
to the extent that a program adopted by the State that the
Administrator determines meets the requirements of clause (i)
or (ii) of subsection (b)(1)(A) is not in effect.
``(3) Opportunity for public hearing.--Before promulgating
any regulation under this section, the Administrator shall
provide an opportunity for a public hearing with respect to the
regulation.''.
(d) Enforcement of Program.--Section 1423(c) of the Safe Drinking
Water Act (42 U.S.C. 300h-2) is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1) In general.--In any case in which the Administrator
is authorized to bring a civil action under this section with
respect to any regulation or other requirement of this part,
the Administrator may also issue an order under this subsection
that assesses a civil penalty of not more than $10,000 for each
day of violation for any past or current violation, up to a
maximum administrative penalty of $125,000 or requires
compliance with the regulation or other requirement, or
both.''; and
(2) by redesignating paragraphs (3) through (8) as
paragraphs (2) through (7), respectively.
(e) Optional Demonstration by States Relating to Oil or Natural
Gas.--
(1) In general.--Section 1425 of the Safe Drinking Water
Act (42 U.S.C. 300h-4) is repealed.
(2) Conforming amendments.--
(A) The first sentence of section 1423(a)(1) of the
Safe Drinking Water Act (42 U.S.C. 300h-2(a)(1)) is
amended by striking ``or section 1425(c)''.
(B) Section 1443(c)(2) of the Safe Drinking Water
Act (42 U.S.C. 300j-2(c)(2)) is amended by striking the
second sentence.
SEC. 302. REPORTS TO CONGRESS.
(a) Fugitive Methane Emissions.--Not later than 2 years after the
date of enactment of this Act, the Administrator of the Environmental
Protection Agency shall submit to Congress a report describing the
quantity of fugitive methane emissions emitted as a result of any leak
in natural gas infrastructure, including recommendations for
eliminating each such leak.
(b) Other Greenhouse Gas Emissions.--The Administrator of the
Environmental Protection Agency shall enter into an agreement with the
National Academy of Sciences under which the Academy shall conduct a
study, and, not later than 2 years after the date of enactment of this
Act, submit to Congress a report describing--
(1) the quantity of United States greenhouse gas emissions
not covered by a program under this Act (or an amendment made
by this Act); and
(2) recommendations for programs to reduce emissions of
those greenhouse gases.
SEC. 303. SENSE OF CONGRESS RELATING TO REDUCTION IN GREENHOUSE GAS
EMISSIONS.
It is the sense of Congress that the United States should carry out
activities to ensure that, by January 1, 2050, the total quantity of
greenhouse gas emissions released in the United States is reduced by
not less than 80 percent, as compared to the total quantity of
greenhouse gas emissions released during calendar year 2005.
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