[Congressional Record Volume 149, Number 9 (Friday, January 17, 2003)]
[Senate]
[Pages S1145-S1148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORZINE (for himself, Mr. Jeffords, and Mr. Lieberman):
  S. 194. A bill to amend the Clean Air Act to establish an inventory, 
registry, and information system of United States greenhouse emissions 
to inform the public and private sector concerning, and encourage 
voluntary reductions in, greenhouse gas emissions; to the Committee on 
Environment and Public Works.
  Mr. CORZINE. Mr. President, I rise today to introduce a bill that 
represents an important step towards the goal of addressing the threats 
posed by global climate change. I am pleased to be joined on this bill 
by Senator Jeffords and Senator Lieberman. They were cosponsors of this 
legislation in the 107th Congress, they are recognized environmental 
leaders in the Senate, and are long-standing, outspoken advocates for 
taking action to mitigate climate change. I appreciate their help in 
introducing this legislation today.
  Climate change is a complex issue. Scientifically. Economically. 
Politically. But complexity is no excuse for inattention or inaction. 
Because the health and viability of the global ecosystems upon which we 
all depend are at stake. And the time to act is now.
  In 2001, the Intergovernmental Panel on Climate Change released its 
Third Assessment Report. That report shows that climate change science 
is increasingly clear and alarming. We know that human activities, 
primarily fossil fuel combustion, have raised the atmospheric 
concentration of carbon dioxide to the highest levels in the last 
420,000 years. We know that the planet is warming, and that the balance 
of the scientific evidence suggests that most of the recent warming can 
be attributed to increased atmospheric greenhouse gas levels. We know 
that without concerted action by the U.S. and other countries, 
greenhouse gases will continue to increase.
  These findings were echoed by a National Academy Sciences report 
published later in 2001, which concluded that: ``Greenhouse gases are 
accumulating in Earth's atmosphere as a result of human activities, 
causing surface air temperatures and subsurface ocean temperatures to 
rise. Temperatures are, in fact, rising. The changes observed over the 
last several decades are likely mostly due to human activities, but we 
cannot rule out that some significant part of these changes is also a 
reflection of natural variability. . . . ``Despite the uncertainties, 
there is general agreement that the observed warming is real and 
particularly strong within the past 20 years.''
  Climate science and climate modeling have improved. These models 
predict warming under all scenarios that have been considered. Even the 
smallest warming predicted by current models, 2.5 degrees Fahrenheit 
over the next century, would represent the greatest rate of increase in 
global mean surface temperature in the last 10,000 years.
  If these trends continue, the results may be devastating. People in 
my State of New Jersey treasure their Jersey Shore. With the exception 
of the 50 mile northern border with New York, New Jersey is surrounded 
by water. The State's Atlantic coastline stretches 127 miles. Fourteen 
of 21 counties have estuarine or marine shorelines. Rising sea level is 
already having adverse impacts, by exacerbating coastal erosion, and 
causing inundation, flooding, and saline intrusions into ground water. 
The NJ coastal area also supports one of New Jersey's largest 
industries, tourism.
  Sea level is rising more rapidly along the US coast than worldwide. 
Studies by EPA and others have estimated that along the Gulf and 
Atlantic coasts, a one-foot rise in the sea level is likely by 2050 and 
could occur as soon as 2025. In the next century, a two-foot rise is 
most likely but a four-foot rise is possible. The implications for New 
Jersey and many other coastal States are potentially very significant. 
I am concerned about this impact. And I am concerned about other 
climate change impacts across New Jersey, the country and the globe.

  The time for inaction and delay is over. We need to take steps today 
to start dealing with this issue. This bill is a modest step. But I 
think it's an important one, and it's one that I believe we should be 
able to act on during the 108th Congress.
  The main provisions of the bill establish a system that would require 
companies to estimate and report their emissions of greenhouse gases, 
and a place where companies can register greenhouse gas emissions 
reductions. In addition, the bill would require an annual report on 
U.S. greenhouse gas emissions. I'd like to go through each of these 
components in more detail.
  First, the bill requires EPA to work with the Secretaries of Energy, 
Commerce and Agriculture, as well as the private sector and non-
governmental organizations to establish a greenhouse gas emission 
information system. For the purposes of the bill, greenhouse gases are 
carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, 
perfluorocarbons, and sulfur hexafluoride. EPA is directed to establish 
threshold quantities for each of these gases. The threshold quantities 
will trigger the requirement for a company to report to the system, and 
are included to enable EPA to exclude most small businesses from the 
reporting requirements.
  Companies that emit more than a threshold quantity of each gas will 
be required to report their emissions on an annual basis to EPA. The 
requirements will be phased in, beginning with direct, stationary 
source emissions in 2004. The following year, in 2005, companies 
subject to the reporting requirements will need to submit to EPA 
estimates of other types of greenhouse gas

[[Page S1146]]

emissions, such as process emissions, fugitive emissions, mobile source 
emissions, forest product-sensor emissions, and indirect emissions from 
heat and steam. By reporting to the system, companies will be able to 
establish emissions baselines.
  Perhaps more important than the reporting system is the greenhouse 
gas registry established by the bill. The bill requires EPA a 
greenhouse gas registry, which will enable companies to register 
greenhouse gas reductions. Many companies are voluntarily implementing 
projects to reduce emissions or sequester carbon. The registry would 
establish a place for companies to be able to put these projects on 
public record in a consistent and reliable way.
  Taken together, these provisions of the bill will accomplish several 
important goals. First, they will create a reliable inventory of the 
sources of greenhouse gas emissions within our economy. But more 
importantly, these provisions will provide a powerful incentive for 
companies to continue to make voluntary greenhouse gas reductions. The 
reason is that the greenhouse registry will be a place where companies 
can register their greenhouse gas reductions in a consistent and 
uniform way. This will enable companies to publicly verify the actions 
they are taking to reduce their emissions. It also provides a place 
where farmers, ranchers and foresters can register their carbon 
sequestration projects. They can then trade these registered reductions 
with any companies that might wish to purchase them. This had the 
potential to create a new carbon market that our farmers can benefit 
from.
  Prior efforts to provide ``future credits'' in a registry bill have 
run up against a Constitutional problem in that we cannot bind future 
Congresses in legislation. So the bill does not provide such credits, 
per se. But it does establish a robust and credible reporting system 
and registry. And if companies register their reductions in a strong 
registry, they will have as much assurance as we can provide them that 
their reductions will be taken into account if a mandatory greenhouse 
gas emission reduction program is enacted.
  I believe that such a mandatory emissions reduction program will be 
necessary, and I already support such a program, for example, Senator 
Jeffords' Clean Power Act. I don't believe that a reporting and 
registry system such as I am proposing is a substitute for such a 
mandatory emissions reductions program. But a reporting and registry 
system is a necessary component of any such program, and is a step that 
Congress may be able to agree on now, despite differences of opinion 
about whether mandatory emissions reductions are necessary at this 
time. A greenhouse gas reporting system and registry is a step we ought 
to take now, because it would provide a structure that encourages 
companies to make voluntary reductions now. That's the main purpose of 
the bill.
  In addition, the bill requires EPA to annually publish a U.S. 
greenhouse gas emissions inventory. This will be a national account of 
greenhouse gas emissions for our nation, and will incorporate the 
information submitted to the greenhouse gas information system and 
registry. EPA has issued a similar report for several years now, and 
this provision is intended to explicitly authorize and specify the 
scope of that report going forward.
  I want to add that I think that many of the emissions measurement 
challenges have been worked out or are being worked out now. Many 
advances have been made in recent years, often in a cooperative way, 
with industry, environmental groups and governments at the table 
working towards measurement protocols, such as the GHG Protocol 
Initiative. It's my intent that in developing the systems and protocols 
developed under this bill that EPA take advantage of the best practices 
that have been and continue to be developed in this fashion.
  I first introduced this bill in December 2001. Since that time, I 
think it's fair to say that the Bush Administration has done literally 
nothing of consequence to address the climate change threat. But I 
think that there are many in industry who disagree with the Bush 
policy. Last September 16, the Pew Center ran an ad in the Washington 
Post that was signed by 40 major companies, including energy producers 
such as American Electric Power, BP, Cinergy, Entergy, and Sunoco. In 
that ad, these companies stated their support for policies to 
``disclose major sources of greenhouse gas emissions and recognize 
early action.'' In addition, ExxonMobil stated in their 2002 report, 
``Corporate Citizenship in a Changing World,'' that they are ``working 
with governments and industry associations to promote development of 
procedures for mandatory reporting by all businesses, so that in the 
future we can report emissions for activities we operate and also those 
in which we share ownership with others.'' So there is a willingness on 
the part of many major U.S. corporations to move to emissions 
reporting. Congress needs to follow the leads of these companies.
  I also want to note that I worked on a bipartisan greenhouse gas 
registry and reporting bill with Senator Brownback last year. That bill 
passed the Senate by voice vote as a Brownback-Corzine amendment to the 
Senate energy bill. While it did not require reporting immediately, it 
ensured robust participation in the reporting and registry system in 
the near future through a trigger mechanism. And while I preferred a 
mandatory system, and still do, I am primarily concerned with getting 
results. And the Brownback-Corzine approach had the support of the full 
Senate. So while I still prefer a mandatory system, as this bill would 
create, I remain willing and open to work with Senator Brownback on an 
alternative again in this Congress.
  In closing, it's clear that it's up to Congress to lead on climate 
change. I urge my colleagues to work with me this Congress to create a 
credible greenhouse gas reporting and registry system that will 
encourage voluntary reductions. I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 194

       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 ``National Greenhouse Gas 
     Emissions Inventory and Registry Act of 2003''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) human activities have caused rapid increases in 
     atmospheric concentrations of carbon dioxide and other 
     greenhouse gases in the last century;
       (2) according to the Intergovernmental Panel on Climate 
     Change and the National Research Council--
       (A) the Earth has warmed in the last century; and
       (B) the majority of the observed warming is attributable to 
     human activities;
       (3) despite the fact that many uncertainties in climate 
     science remain, the potential impacts from human-induced 
     climate change pose a substantial risk that should be managed 
     in a responsible manner; and
       (4) to begin to manage climate change risks, public and 
     private entities will need a comprehensive, accurate 
     inventory, registry, and information system of the sources 
     and quantities of United States greenhouse gas emissions.
       (b) Purpose.--The purpose of this Act is to establish a 
     mandatory greenhouse gas inventory, registry, and information 
     system that--
       (1) is complete, consistent, transparent, and accurate;
       (2) will create accurate data that can be used by public 
     and private entities to design efficient and effective 
     greenhouse gas emission reduction strategies;
       (3) will encourage greenhouse gas emission reductions; and
       (4) can be used to establish a baseline in the event of any 
     future greenhouse gas emission reduction requirements 
     affecting major emitters in the United States.

     SEC. 3. GREENHOUSE GAS EMISSIONS.

       The Clean Air Act (42 U.S.C. 1701 et seq.) is amended by 
     adding at the end the following:

                 ``TITLE VII--GREENHOUSE GAS EMISSIONS

     ``SEC. 701. DEFINITIONS.

       ``In this title:
       ``(1) Covered entity.--The term `covered entity' means an 
     entity that emits more than a threshold quantity of 
     greenhouse gas emissions.
       ``(2) Direct emissions.--The term `direct emissions' means 
     greenhouse gas emissions from a source that is owned or 
     controlled by an entity.
       ``(3) Entity.--The term `entity' includes a firm, a 
     corporation, an association, a partnership, and a Federal 
     agency.
       ``(4) Greenhouse gas.--The term `greenhouse gas' means--
       ``(A) carbon dioxide;
       ``(B) methane;

[[Page S1147]]

       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons; and
       ``(F) sulfur hexafluoride.
       ``(5) Greenhouse gas emissions.--The term `greenhouse gas 
     emissions' means emissions of a greenhouse gas, including--
       ``(A) stationary combustion source emissions, which are 
     emitted as a result of combustion of fuels in stationary 
     equipment such as boilers, furnaces, burners, turbines, 
     heaters, incinerators, engines, flares, and other similar 
     sources;
       ``(B) process emissions, which consist of emissions from 
     chemical or physical processes other than combustion;
       ``(C) fugitive emissions, which consist of intentional and 
     unintentional emissions from--
       ``(i) equipment leaks such as joints, seals, packing, and 
     gaskets; and
       ``(ii) piles, pits, cooling towers, and other similar 
     sources; and
       ``(D) mobile source emissions, which are emitted as a 
     result of combustion of fuels in transportation equipment 
     such as automobiles, trucks, trains, airplanes, and vessels.
       ``(6) Greenhouse gas emissions record.--The term 
     `greenhouse gas emissions record' means all of the historical 
     greenhouse gas emissions and project reduction data submitted 
     by an entity under this title, including any adjustments to 
     such data under section 704(c).
       ``(7) Greenhouse gas report.--The term `greenhouse gas 
     report' means an annual list of the greenhouse gas emissions 
     of an entity and the sources of those emissions.
       ``(8) Indirect emissions.--The term `indirect emissions' 
     means greenhouse gas emissions that are a consequence of the 
     activities of an entity but that are emitted from sources 
     owned or controlled by another entity.
       ``(9) National greenhouse gas emissions information 
     system.--The term `national greenhouse gas emissions 
     information system' means the information system established 
     under section 702(a).
       ``(10) National greenhouse gas emissions inventory.--The 
     term `national greenhouse gas emissions inventory' means the 
     national inventory of greenhouse gas emissions established 
     under section 705.
       ``(11) National greenhouse gas registry.--The term 
     `national greenhouse gas registry' means the national 
     greenhouse gas registry established under section 703(a).
       ``(12) Project reduction.--The term `project reduction' 
     means--
       ``(A) a greenhouse gas emission reduction achieved by 
     carrying out a greenhouse gas emission reduction project; and
       ``(B) sequestration achieved by carrying out a 
     sequestration project.
       ``(13) Reporting entity.--The term `reporting entity' means 
     an entity that reports to the Administrator under subsection 
     (a) or (b) of section 704.
       ``(14) Sequestration.--The term `sequestration' means the 
     long-term separation, isolation, or removal of greenhouse 
     gases from the atmosphere, including through a biological or 
     geologic method such as reforestation or an underground 
     reservoir.
       ``(15) Threshold quantity.--The term `threshold quantity' 
     means a threshold quantity for mandatory greenhouse gas 
     reporting established by the Administrator under section 
     704(a)(3).
       ``(16) Verification.--The term `verification' means the 
     objective and independent assessment of whether a greenhouse 
     gas report submitted by a reporting entity accurately 
     reflects the greenhouse gas impact of the reporting entity.

     ``SEC. 702. NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION 
                   SYSTEM.

       ``(a) Establishment.--In consultation with the Secretary of 
     Commerce, the Secretary of Agriculture, the Secretary of 
     Energy, States, the private sector, and nongovernmental 
     organizations concerned with establishing standards for 
     reporting of greenhouse gas emissions, the Administrator 
     shall establish and administer a national greenhouse gas 
     emissions information system to collect information reported 
     under section 704(a).
       ``(b) Submission to Congress of Draft Design.--Not later 
     than 180 days after the date of enactment of this title, the 
     Administrator shall submit to Congress a draft design of the 
     national greenhouse gas emissions information system.
       ``(c) Availability of Data to the Public.--The 
     Administrator shall publish all information in the national 
     greenhouse gas emissions information system through the 
     website of the Environmental Protection Agency, except in any 
     case in which publishing the information would reveal a trade 
     secret or disclose information vital to national security.
       ``(d) Relationship to Other Greenhouse Gas Registries.--To 
     the extent practicable, the Administrator shall ensure 
     coordination between the national greenhouse gas emissions 
     information system and existing and developing Federal, 
     regional, and State greenhouse gas registries.
       ``(e) Integration With Other Environmental Information.--To 
     the extent practicable, the Administrator shall integrate 
     information in the national greenhouse gas emissions 
     information system with other environmental information 
     managed by the Administrator.

     ``SEC. 703. NATIONAL GREENHOUSE GAS REGISTRY.

       ``(a) Establishment.--In consultation with the Secretary of 
     Commerce, the Secretary of Agriculture, the Secretary of 
     Energy, States, the private sector, and nongovernmental 
     organizations concerned with establishing standards for 
     reporting of greenhouse gas emissions, the Administrator 
     shall establish and administer a national greenhouse gas 
     registry to collect information reported under section 
     704(b).
       ``(b) Availability of Data to the Public.--The 
     Administrator shall publish all information in the national 
     greenhouse gas registry through the website of the 
     Environmental Protection Agency, except in any case in which 
     publishing the information would reveal a trade secret or 
     disclose information vital to national security.
       ``(c) Relationship to Other Greenhouse Gas Registries.--To 
     the maximum extent feasible and practicable, the 
     Administrator shall ensure coordination between the national 
     greenhouse gas registry and existing and developing Federal, 
     regional, and State greenhouse gas registries.
       ``(d) Integration With Other Environmental Information.--To 
     the maximum extent practicable, the Administrator shall 
     integrate all information in the national greenhouse gas 
     registry with other environmental information collected by 
     the Administrator.

     ``SEC. 704. REPORTING.

       ``(a) Mandatory Reporting to National Greenhouse Gas 
     Emissions Information System.--
       ``(1) Initial reporting requirements.--
       ``(A) In general.--Not later than April 30, 2004, in 
     accordance with this paragraph and the regulations 
     promulgated under section 706(e)(1), each covered entity 
     shall submit to the Administrator, for inclusion in the 
     national greenhouse gas emissions information system, the 
     greenhouse gas report of the covered entity with respect to--
       ``(i) calendar year 2003; and
       ``(ii) each greenhouse gas emitted by the covered entity in 
     an amount that exceeds the applicable threshold quantity.
       ``(B) Required elements.--Each greenhouse gas report 
     submitted under subparagraph (A)--
       ``(i) shall include estimates of direct stationary 
     combustion source emissions;
       ``(ii) shall express greenhouse gas emissions in metric 
     tons of the carbon dioxide equivalent of each greenhouse gas 
     emitted;
       ``(iii) shall specify the sources of greenhouse gas 
     emissions that are included in the greenhouse gas report;
       ``(iv) shall be reported on an entity-wide basis and on a 
     facility-wide basis; and
       ``(v) to the maximum extent practicable, shall be reported 
     electronically to the Administrator in such form as the 
     Administrator may require.
       ``(C) Method of reporting of entity-wide emissions.--Under 
     subparagraph (B)(iv), entity-wide emissions shall be reported 
     on the bases of financial control and equity share in a 
     manner consistent with the financial reporting practices of 
     the covered entity.
       ``(2) Final reporting requirements.--
       ``(A) In general.--Not later than April 30, 2005, and each 
     April 30 thereafter (except as provided in subparagraph 
     (B)(vii)), in accordance with this paragraph and the 
     regulations promulgated under section 706(e)(2), each covered 
     entity shall submit to the Administrator the greenhouse gas 
     report of the covered entity with respect to--
       ``(i) the preceding calendar year; and
       ``(ii) each greenhouse gas emitted by the covered entity in 
     an amount that exceeds the applicable threshold quantity.
       ``(B) Required elements.--Each greenhouse gas report 
     submitted under subparagraph (A) shall include--
       ``(i) the required elements specified in paragraph (1);
       ``(ii) estimates of indirect emissions from imported 
     electricity, heat, and steam;
       ``(iii) estimates of process emissions described in section 
     701(5)(B);
       ``(iv) estimates of fugitive emissions described in section 
     701(5)(C);
       ``(v) estimates of mobile source emissions described in 
     section 701(5)(D), in such form as the Administrator may 
     require;
       ``(vi) in the case of a covered entity that is a forest 
     product entity, estimates of direct stationary source 
     emissions, including emissions resulting from combustion of 
     biomass;
       ``(vii) in the case of a covered entity that owns more than 
     250,000 acres of timberland, estimates, by State, of the 
     timber and carbon stocks of the covered entity, which 
     estimates shall be updated every 5 years; and
       ``(viii) a description of any adjustments to the greenhouse 
     gas emissions record of the covered entity under subsection 
     (c).
       ``(3) Establishment of threshold quantities.--For the 
     purpose of reporting under this subsection, the Administrator 
     shall establish threshold quantities of emissions for each 
     combination of a source and a greenhouse gas that is subject 
     to the mandatory reporting requirements under this 
     subsection.
       ``(b) Voluntary Reporting to National Greenhouse Gas 
     Registry.--
       ``(1) In general.--Not later than April 30, 2004, and each 
     April 30 thereafter, in accordance with this subsection and 
     the regulations promulgated under section 706(f), an entity 
     may voluntarily report to the Administrator, for inclusion in 
     the national greenhouse gas registry, with respect to the 
     preceding calendar year and any greenhouse gas emitted by the 
     entity--
       ``(A) project reductions;
       ``(B) transfers of project reductions to and from any other 
     entity;

[[Page S1148]]

       ``(C) project reductions and transfers of project 
     reductions outside the United States;
       ``(D) indirect emissions that are not required to be 
     reported under subsection (a)(2)(B)(ii) (such as product 
     transport, waste disposal, product substitution, travel, and 
     employee commuting); and
       ``(E) product use phase emissions.
       ``(2) Types of activities.--Under paragraph (1), an entity 
     may report activities that reduce greenhouse gas emissions or 
     sequester a greenhouse gas, including--
       ``(A) fuel switching;
       ``(B) energy efficiency improvements;
       ``(C) use of renewable energy;
       ``(D) use of combined heat and power systems;
       ``(E) management of cropland, grassland, and grazing land;
       ``(F) forestry activities that increase carbon stocks;
       ``(G) carbon capture and storage;
       ``(H) methane recovery; and
       ``(I) carbon offset investments.
       ``(c) Adjustment Factors.--
       ``(1) In general.--Each reporting entity shall adjust the 
     greenhouse gas emissions record of the reporting entity in 
     accordance with this subsection.
       ``(2) Significant structural changes.--
       ``(A) In general.--A reporting entity that experiences a 
     significant structural change in the organization of the 
     reporting entity (such as a merger, major acquisition, or 
     divestiture) shall adjust its greenhouse gas emissions record 
     for preceding years so as to maintain year-to-year 
     comparability.
       ``(B) Mid-year changes.--In the case of a reporting entity 
     that experiences a significant structural change described in 
     subparagraph (A) during the middle of a year, the greenhouse 
     gas emissions record of the reporting entity for preceding 
     years shall be adjusted on a pro-rata basis.
       ``(3) Calculation changes and errors.--The greenhouse gas 
     emissions record of a reporting entity for preceding years 
     shall be adjusted for--
       ``(A) changes in calculation methodologies; or
       ``(B) errors that significantly affect the quantity of 
     greenhouse gases in the greenhouse gas emissions record.
       ``(4) Organizational growth or decline.--The greenhouse gas 
     emissions record of a reporting entity for preceding years 
     shall not be adjusted for any organizational growth or 
     decline of the reporting entity such as--
       ``(A) an increase or decrease in production output;
       ``(B) a change in product mix;
       ``(C) a plant closure; and
       ``(D) the opening of a new plant.
       ``(5) Explanations of adjustments.--A reporting entity 
     shall explain, in a statement included in the greenhouse gas 
     report of the reporting entity for a year--
       ``(A) any significant adjustment in the greenhouse gas 
     emissions record of the reporting entity; and
       ``(B) any significant change between the greenhouse gas 
     emissions record for the preceding year and the greenhouse 
     gas emissions reported for the current year.
       ``(d) Quantification and Verification Protocols and 
     Tools.--
       ``(1) In general.--The Administrator and the Secretary of 
     Commerce, the Secretary of Agriculture, and the Secretary of 
     Energy shall jointly work with the States, the private 
     sector, and nongovernmental organizations to develop--
       ``(A) protocols for quantification and verification of 
     greenhouse gas emissions;
       ``(B) electronic methods for quantification and reporting 
     of greenhouse gas emissions; and
       ``(C) greenhouse gas accounting and reporting standards.
       ``(2) Best practices.--The protocols and methods developed 
     under paragraph (1) shall conform, to the maximum extent 
     practicable, to the best practice protocols that have the 
     greatest support of experts in the field.
       ``(3) Incorporation into regulations.--The Administrator 
     shall incorporate the protocols developed under paragraph 
     (1)(A) into the regulations promulgated under section 706.
       ``(4) Outreach program.--The Administrator, the Secretary 
     of Commerce, the Secretary of Agriculture, and the Secretary 
     of Energy shall jointly conduct an outreach program to 
     provide information to all reporting entities and the public 
     on the protocols and methods developed under this subsection.
       ``(e) Verification.--
       ``(1) Provision of information by reporting entities.--Each 
     reporting entity shall provide information sufficient for the 
     Administrator to verify, in accordance with greenhouse gas 
     accounting and reporting standards developed under subsection 
     (d)(1)(C), that the greenhouse gas report of the reporting 
     entity--
       ``(A) has been accurately reported; and
       ``(B) in the case of each project reduction, represents 
     actual reductions in greenhouse gas emissions or actual 
     increases in net sequestration, as applicable.
       ``(2) Independent third-party verification.--A reporting 
     entity may--
       ``(A) obtain independent third-party verification; and
       ``(B) present the results of the third-party verification 
     to the Administrator for consideration by the Administrator 
     in carrying out paragraph (1).
       ``(f) Enforcement.--The Administrator may bring a civil 
     action in United States district court against a covered 
     entity that fails to comply with subsection (a), or a 
     regulation promulgated under section 706(e), to impose a 
     civil penalty of not more than $25,000 for each day that the 
     failure to comply continues.

     ``SEC. 705. NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY.

       ``Not later than April 30, 2004, and each April 30 
     thereafter, the Administrator shall publish a national 
     greenhouse gas emissions inventory that includes--
       ``(1) comprehensive estimates of the quantity of United 
     States greenhouse gas emissions for the second preceding 
     calendar year, including--
       ``(A) for each greenhouse gas, an estimate of the quantity 
     of emissions contributed by each key source category;
       ``(B) a detailed analysis of trends in the quantity, 
     composition, and sources of United States greenhouse gas 
     emissions; and
       ``(C) a detailed explanation of the methodology used in 
     developing the national greenhouse gas emissions inventory; 
     and
       ``(2) a detailed analysis of the information reported to 
     the national greenhouse gas emissions information system and 
     the national greenhouse gas registry.

     ``SEC. 706. REGULATIONS.

       ``(a) In General.--The Administrator may promulgate such 
     regulations as are necessary to carry out this title.
       ``(b) Best Practices.--In developing regulations under this 
     section, the Administrator shall seek to leverage leading 
     protocols for the measurement, accounting, reporting, and 
     verification of greenhouse gas emissions.
       ``(c) National Greenhouse Gas Emissions Information 
     System.--Not later than January 31, 2004, the Administrator 
     shall promulgate such regulations as are necessary to 
     establish the national greenhouse gas emissions information 
     system.
       ``(d) National Greenhouse Gas Registry.--Not later than 
     January 31, 2004, the Administrator shall promulgate such 
     regulations as are necessary to establish the national 
     greenhouse gas registry.
       ``(e) Mandatory Reporting Requirements.--
       ``(1) Initial reporting requirements.--Not later than 
     January 31, 2004, the Administrator shall promulgate such 
     regulations as are necessary to implement the initial 
     mandatory reporting requirements under section 704(a)(1).
       ``(2) Final reporting requirements.--Not later than January 
     31, 2005, the Administrator shall promulgate such regulations 
     as are necessary to implement the final mandatory reporting 
     requirements under section 704(a)(2).
       ``(f) Voluntary Reporting Provisions.--Not later than 
     January 31, 2004, the Administrator shall promulgate such 
     regulations and issue such guidance as are necessary to 
     implement the voluntary reporting provisions under section 
     704(b).
       ``(g) Adjustment Factors.--Not later than January 31, 2004, 
     the Administrator shall promulgate such regulations as are 
     necessary to implement the adjustment factors under section 
     704(c).''.
                                 ______