[Congressional Record Volume 153, Number 8 (Tuesday, January 16, 2007)]
[Senate]
[Pages S602-S610]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANDERS (for himself, Mrs. Boxer, Mr. Kennedy, Mr. 
        Menendez, Mr. Lautenberg, Mr. Leahy, Mr. Reed, Mr. Akaka, Mr. 
        Inouye, Mr. Feingold, and Mr. Whitehouse):
  S. 309. A bill to amend the Clean Air Act to reduce emissions of 
carbon dioxide, and for other purposes; to the Committee on Environment 
and Public Works.
  Mr. SANDERS. Mr. President, today I am introducing the Global Warming 
Pollution Reduction Act of 2007. There are many critically important 
issues that we face, including education, health care, the growing and 
inexcusable economic inequality in this country, and the situation in 
Iraq. Among these issues has to be the threat faced by the earth itself 
due to global warming and that is why this legislation is the first 
bill that I am introducing as a U.S. Senator.
  The Global Warming Pollution Reduction Act, the full text of which I 
ask be included in the Record following my remarks, was initially 
introduced last year by the Senator whose seat I currently hold, 
Senator Jim Jeffords. Jim's leadership in offering a forwardthinking 
global warming bill is known by all in this chamber and I am honored to 
continue his efforts by introducing this tremendously-important 
legislation today.
  This bill, is being cosponsored by many of my esteemed colleagues and 
I would like to recognize them this morning: Senator Boxer, chairman of 
the Environment and Public Works Committee; the Senior Senator from the 
great state of Vermont, Mr. Leahy; both Senators from New Jersey, Mr. 
Lautenberg and Mr. Menendez; Senators Reed and Whitehouse, both from 
Rhode Island; the Senate delegation from the State of Hawaii, Senators 
Inouye and Akaka; and Senator Feingold of Wisconsin and Senator Kennedy 
of Massachusetts. I appreciate the support of these colleagues in 
focusing attention on the most important environmental issue of our 
time and urge my other colleagues to join in this effort.
  I am also proud that the Global Warming Pollution Reduction Act has 
the support of numerous national groups, including the Earth Day 
Network, Earthjustice, Environmental Defense, Environmental & Energy 
Study Institute, Friends of the Earth, Greenpeace, League of 
Conservation Voters, National Audubon Society, National Environmental 
Trust, National Wildlife Federation, Natural Resources Defense Council, 
Physicians for Social Responsibility, Public Citizen, Sierra Club, 
Union of Concerned Scientists, and US PIRG.
  The Global Warming Pollution Reduction Act is based on the scientific 
evidence and consensus that global warming poses a significant threat 
to the United States and the world. In fact, with our national 
security, our economy, our public health and welfare, and our global 
environment at stake, we must do nothing short of taking bold action. 
To that end, I am proud that last week the Vermont state legislature 
began 3 weeks of hearings on global warming. Like Americans across the 
country, they want action to fight global warming and they wish their 
Federal Government would step up and provide leadership commensurate 
with the magnitude of the threat. Well, Mr President this bill answers 
those pleas for leadership.
  Grassroots support for action on global warming is clear. Over 300 
mayors have committed their cities to meeting the standards described 
in the Kyoto Protocol. In fact, with over 54 million citizens 
represented, the U.S. Mayors Climate Protection Agreement provides 
clear evidence that everyday citizens--unlike some large corporations 
who have continually misrepresented the science of global warming--want 
to see movement on this issue. Additionally, a group of northeast 
States, including Maine, Connecticut, Delaware, New Hampshire, New 
Jersey, New York, and Vermont, have already implemented a regional 
effort to reduce greenhouse gas emissions and other northeastern 
States, such as Maryland and Massachusetts, are likely to join this 
group soon. And, we all know that the State of California has 
recognized the need to act on global warming and is moving forward with 
a tremendous program.
  Despite the increasing calls for action, for years, the Bush 
administration has turned a deaf ear as the scientific community warned 
us of the problem of global warming and the disastrous impact it will 
have on our planet. Sadly, many of these predictions are now becoming a 
reality.
  Global concentrations of greenhouse gases are incredibly high. In 
fact, the atmospheric concentration of greenhouse gases has risen to 
378 parts per million--a level unseen during anytime over the past 
400,000 years. Additionally, on a global scale, 8 of the 10 years 
between 1996 and the end of 2005 are among the warmest 10 years on 
record and experts at the National Oceanic and Atmospheric 
Administration have just logged 2006 as the hottest year on record for 
the U.S. Also, the National Center for Atmospheric Research suggests 
that the majority of the ice caps of the Arctic Ocean will melt by the 
summer of 2040--decades earlier than previously expected. And, the 
situation has become so dramatic that the Department of the Interior 
recently suggested listing polar bears on the endangered species list 
because their habitat is quite literally disappearing. We are also told 
to expect changes in agriculture and water systems, new threats to our 
health, and more extreme weather patterns including more intense 
hurricanes. All of this is due to global warming caused by the carbon 
dioxide and other greenhouse gases that are released into our 
atmosphere when we burn fossil fuels.
  The good news is that we know how to stop continued global warming--
we simply need the political will to make it happen. The time is now 
for bold action that will move our country away from fossil fuels such 
as coal, gas, and oil towards efficient, sustainable energy sources 
like wind, solar, bio-mass and hydrogen. The bill I introduce today 
recognizes the urgency of our circumstances and sets targets for 
reduction of U.S. emissions to help stabilize global atmospheric 
concentrations of greenhouse gases below 450 parts per million, a 
critical level as recognized by leading climate scientists. More 
specifically, this legislation calls for an 80 percent decrease--
compared to 1990 levels--in global warming pollutants by 2050 by 
enacting a combination of mandatory reduction targets and incentives 
that will help develop clean alternative energies.
  The concept is simple. By putting our minds to it, we can usher in a 
new era of nonpolluting, renewable energy sources. And, what makes this 
proposal even more exciting is its potential to reshape our economy and 
make the United States a leader in clean and efficient energy 
technologies--creating millions of good paying jobs in the process.

  In fact, it is a lack of bold vision that will financially cost us. 
In October of 2006, Sir Nicholas Stern, a former chief economist of the 
World Bank, turned the old economic arguments against taking action on 
climate change on their head. In a report to the British government, he 
writes that bold action to combat the threat of global warming will in 
fact save industrial nations money and that inaction could cost between 
5 to 20 percent of global gross domestic product. Speaking to the issue 
in no uncertain terms, the report states, ``If no action is taken we 
will be faced with the kind of downturn that has not been seen since 
the great depression and the two world wars.''
  To be quite frank, the time for talk is over. It is time for action 
and introduction of this bill signals my commitment to pushing for such 
action.
  While I ask unanimous consent that Senator Jeffords' full statement 
from last year on this important bill be included following my remarks, 
I want to read two excerpts from those remarks:

       Global warming is real and it is already happening. Its 
     effects are being felt across the globe and the longer we 
     delay, the more severe these effects will be.

  He went on to say,

       In my final year in the Senate, I have often asked myself, 
     ``What lasting actions can I take to make the world a better 
     place?'' I hope that by proposing real action on climate 
     change, and passing the torch to a new generation of those 
     committed to protecting the environment, that I can help make 
     a difference for us all.

  I couldn't be more honored to carry on Senator Jeffords' vision on 
behalf of Vermonters and all Americans.
  In closing, a country that represents only 6 percent of the world's 
population but produces 25 percent of its

[[Page S603]]

greenhouse gas emissions, the United States has a moral obligation to 
lead the way toward reducing these emissions. For the sake of our 
children and grandchildren, we must meet that obligation. This 
legislation will put us on the right path to do so.
  I ask unanimous consent that the material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

              Statement of Senator Jeffords, July 20, 2006

       Mr. President, I rise to introduce the Global Warming 
     Pollution Reduction Act of 2006.
       One of the most important issues facing mankind is the 
     problem of global warming. Global warming is real and it is 
     already happening. Its effects are being felt across the 
     globe and the longer we delay, the more severe these effects 
     will be. The broad consensus within the scientific community 
     is that global warming has begun, is largely the result of 
     human activity, and is accelerating. Atmospheric greenhouse 
     gas concentrations have risen to 378 parts per million, 
     nearly one third above pre-industrial levels and higher than 
     at any time during the past 400,000 years. Projections 
     indicate that stabilizing concentrations at 450 parts per 
     million would still mean a temperature increase of two to 
     four degrees Fahrenheit. Such warming will result in more 
     extreme weather, increased flooding and drought, disruption 
     of agricultural and water systems, threats to human health 
     and loss of sensitive species and ecosystems.
       In order to prevent and minimize these effects, we must 
     take global actions to address this issue as soon as 
     possible. We owe that to ourselves and to future generations.
       The overwhelming majority of Americans support taking some 
     form of action on climate change. I am today introducing the 
     Global Warming Pollution Reduction Act, which I believe 
     responds to that call. I believe this is the most far 
     reaching and forward thinking climate change bill ever 
     introduced. It sets a goal of an 80% reduction in global 
     warming pollutants by 2050. It provides a roadmap for actions 
     that we will need to take over the next few decades to combat 
     global warming. I believe that if this bill were passed, it 
     would put us on the path to potentially solving the global 
     warming problem. If it were passed, we would reshape our 
     economy to become more energy independent, cleaner and more 
     economically competitive. If it were passed, we would have a 
     chance of avoiding some of the worst and most dangerous 
     effects of global warming. If it were passed, we would be in 
     a position to negotiate with other countries as part of the 
     global solution.
       Some will say that this bill imposes requirements that ask 
     too much of industry. Some will say that this bill contains 
     requirements that we cannot easily meet. I say first of all 
     that the costs of inaction vastly outweigh the costs of 
     action, and that we have a responsibility to future 
     generations not to leave the earth far worse off than when we 
     found it--with a fundamentally altered climate system. 
     Temperature changes, sea level rise, hurricanes, floods and 
     droughts can affect food production, national security, the 
     spread of disease and the survival of endangered species. 
     These are not things to trifle with on the basis of industry 
     cost estimates, which have frequently been overstated.
       But perhaps more importantly, we can act to reduce global 
     warming. We can reduce emissions to 1990 levels between now 
     and 2020 through a reduction of just 2 percent per year. 
     Energy efficiency alone could play a major part in reaching 
     reductions and new technologies can help as well. Moreover, 
     additional deployment of existing renewable energy sources, 
     including bio-fuels, can also help substantially. If we were 
     to take the actions suggested in this bill, we would find 
     that we would enhance our energy independence, and we would 
     become a world leader in clean energy technologies. American 
     innovation can position us as the world leader in clean 
     technologies.
       In my final year in the Senate, I have often asked myself 
     ``What lasting actions can I take to make the world a better 
     place?'' I hope that by proposing real action on climate 
     change, and passing the torch to a new generation of those 
     committed to protecting the environment, that I can help make 
     a difference for us all. Global warming is upon us now. The 
     question is, can we take action now, before it is too late?
       We know what we need to do, we know how much we must 
     reduce, and we have the technology to do so. The question for 
     this body is, do we have the political will? Can we overcome 
     our fears and insecurity and act decisively to combat global 
     warming? That is the opportunity and challenge of the coming 
     years, which my bill on global warming seeks to address. I 
     urge my colleagues to join me in the quest for a better, 
     safer world that is free of the enormous threat posed by 
     dangerous global warming. I urge my colleagues to support 
     this important piece of legislation.
                                  ____


                                 S. 309

       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 ``Global Warming Pollution 
     Reduction Act''.

     SEC. 2. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

       The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by 
     adding at the end the following:

     ``TITLE VII--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS

``Sec. 701. Findings.
``Sec. 702. Purposes.
``Sec. 703. Definitions.
``Sec. 704. Global warming pollution emission reductions.
``Sec. 705. Conditions for accelerated global warming pollution 
              emission reduction.
``Sec. 706. Use of allowances for transition assistance and other 
              purposes.
``Sec. 707. Vehicle emission standards.
``Sec. 708. Emission standards for electric generation units.
``Sec. 709. Low-carbon generation requirement.
``Sec. 710. Geological disposal of global warming pollutants.
``Sec. 711. Research and development.
``Sec. 712. Energy efficiency performance standard.
``Sec. 713. Renewable portfolio standard.
``Sec. 714. Standards to account for biological sequestration of 
              carbon.
``Sec. 715. Global warming pollution reporting.
``Sec. 716. Clean energy technology deployment in developing countries.
``Sec. 717. Paramount interest waiver.
``Sec. 718. Effect on other law.

     ``SEC. 701. FINDINGS.

       ``Congress finds that--
       ``(1) global warming poses a significant threat to the 
     national security and economy of the United States, public 
     health and welfare, and the global environment;
       ``(2) due largely to an increased use of energy from fossil 
     fuels, human activities are primarily responsible for the 
     release of carbon dioxide and other heat-trapping global 
     warming pollutants that are accumulating in the atmosphere 
     and causing surface air and subsurface ocean temperatures to 
     rise;
       ``(3) as of the date of enactment of this title, 
     atmospheric concentrations of carbon dioxide are 35 percent 
     higher than those concentrations were 150 years ago, at 378 
     parts per million compared to 280 parts per million;
       ``(4) the United States emits more global warming 
     pollutants than any other country, and United States carbon 
     dioxide emissions have increased by an average of 1.3 percent 
     annually since 1990;
       ``(5)(A) during the past 100 years, global temperatures 
     have risen by 1.44 degrees Fahrenheit; and
       ``(B) from 1970 to the present, those temperatures have 
     risen by almost 1 degree Fahrenheit;
       ``(6) 8 years during the 10-year period beginning January 
     1, 1996, and ending December 31, 2005, were among the 10 
     warmest years on record;
       ``(7) average temperatures in the Arctic have increased by 
     4 to 7 degrees Fahrenheit during the past 50 years;
       ``(8) global warming has caused--
       ``(A) ocean temperatures to increase, resulting in rising 
     sea levels, extensive bleaching of coral reefs worldwide, and 
     an increase in the intensity of tropical storms;
       ``(B) the retreat of Arctic sea ice by an average of 9 
     percent per decade since 1978;
       ``(C) the widespread thawing of permafrost in polar, 
     subpolar, and mountainous regions;
       ``(D) the redistribution and loss of species; and
       ``(E) the rapid shrinking of glaciers;
       ``(9) the United States must adopt a comprehensive and 
     effective national program of mandatory limits and incentives 
     to reduce global warming pollution emissions into the 
     atmosphere;
       ``(10) at the current rate of emission, global warming 
     pollution concentrations in the atmosphere could reach more 
     than 600 parts per million in carbon dioxide equivalent, and 
     global average mean temperature could rise an additional 2.7 
     to 11 degrees Fahrenheit, by the end of the century;
       ``(11) although an understanding of all details of the 
     Earth system is not yet complete, present knowledge indicates 
     that potential future temperature increases could result in--
       ``(A) the further or complete melting of the Antarctic and 
     Greenland ice sheets;
       ``(B) the disruption of the North-Atlantic Thermohaline 
     Circulation (commonly known as the `Gulf Stream');
       ``(C) the extinction of species; and
       ``(D) large-scale disruptions of the natural systems that 
     support life;
       ``(12) there exists an array of technological options for 
     use in reducing global warming pollution emissions, and 
     significant reductions can be attained using a portfolio of 
     options that will not adversely impact the economy;
       ``(13) the ingenuity of the people of the United States 
     will allow the Nation to become a leader in solving global 
     warming; and
       ``(14) it should be a goal of the United States to achieve 
     a reduction in global warming pollution emissions in the 
     United States--
       ``(A) to ensure that the average global temperature does 
     not increase by more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to facilitate the achievement of an average global 
     atmospheric concentration of

[[Page S604]]

     global warming pollutants that does not exceed 450 parts per 
     million in carbon dioxide equivalent.

     ``SEC. 702. PURPOSES.

       ``The purposes of this title are--
       ``(1) to achieve a reduction in global warming pollution 
     emissions compatible with ensuring that--
       ``(A) the average global temperature does not increase by 
     more than 3.6 degrees Fahrenheit (2 degrees Celsius) above 
     the preindustrial average; and
       ``(B) total average global atmospheric concentrations of 
     global warming pollutants do not exceed 450 parts per million 
     in carbon dioxide equivalent;
       ``(2) to reduce by calendar year 2050 the aggregate net 
     level of global warming pollution emissions of the United 
     States to a level that is 80 percent below the aggregate net 
     level of global warming pollution emissions for calendar year 
     1990;
       ``(3) to allow for an acceleration of reductions in global 
     warming pollution emissions to prevent--
       ``(A) average global temperature from increasing by more 
     than 3.6 degrees Fahrenheit (2 degrees Celsius) above the 
     preindustrial average; or
       ``(B) global atmospheric concentrations of global warming 
     pollutants from exceeding 450 parts per million;
       ``(4) to establish a motor vehicle global warming pollution 
     emission requirement;
       ``(5) to require electric generation units to meet a global 
     warming pollution emission standard;
       ``(6) to establish rules for the safe geological 
     sequestration of carbon dioxide;
       ``(7) to encourage energy efficiency and the use of 
     renewable energy by establishing a renewable portfolio 
     standard and an energy efficiency portfolio standard;
       ``(8) to provide for research relating to, and development 
     of, the technologies to control global warming pollution 
     emissions;
       ``(9) to position the United States as the world leader in 
     reducing the risk of the potentially devastating, wide-
     ranging impacts associated with global warming; and
       ``(10) to promote, through leadership by the United States, 
     accelerated reductions in global warming pollution from other 
     countries with significant global warming pollution 
     emissions.

     ``SEC. 703. DEFINITIONS.

       ``In this title:
       ``(1) Academy.--The term `Academy' means the National 
     Academy of Sciences.
       ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
     equivalent' means, for each global warming pollutant, the 
     quantity of the global warming pollutant that makes the same 
     contribution to global warming as 1 metric ton of carbon 
     dioxide, as determined by the Administrator, taking into 
     account the study and report described in section 705(a).
       ``(3) Facility.--The term `facility' means all buildings, 
     structures, or installations that are--
       ``(A) located on 1 or more contiguous or adjacent 
     properties under common control of the same persons; and
       ``(B) located in the United States.
       ``(4) Global warming pollutant.--The term `global warming 
     pollutant' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons;
       ``(F) sulfur hexafluoride; and
       ``(G) any other anthropogenically-emitted gas that the 
     Administrator, after notice and comment, determines to 
     contribute to global warming.
       ``(5) Global warming pollution.--The term `global warming 
     pollution' means any combination of 1 or more global warming 
     pollutants emitted into the ambient air or atmosphere.
       ``(6) Market-based program.--The term `market-based 
     program' means a program that places an absolute limit on the 
     aggregate net global warming pollution emissions of 1 or more 
     sectors of the economy of the United States, while allowing 
     the transfer or sale of global warming pollution emission 
     allowances.
       ``(7) NAS report.--The term `NAS report' means a report 
     completed by the Academy under subsection (a) or (b) of 
     section 705.

     ``SEC. 704. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

       ``(a) Emission Reduction Goal.--Congress declares that--
       ``(1) it shall be the goal of the United States, acting in 
     concert with other countries that emit global warming 
     pollutants, to achieve a reduction in global warming 
     pollution emissions--
       ``(A) to ensure that the average global temperature does 
     not increase by more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to facilitate the achievement of an average global 
     atmospheric concentration of global warming pollutants that 
     does not exceed 450 parts per million in carbon dioxide 
     equivalent; and
       ``(2) in order to achieve the goal described in paragraph 
     (1), the United States shall reduce the global warming 
     pollution emissions of the United States by a quantity that 
     is proportional to the share of the United States of the 
     reductions that are necessary--
       ``(A) to ensure that the average global temperature does 
     not increase more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to stabilize average global warming pollution 
     concentrations globally at or below 450 parts per million in 
     carbon dioxide equivalent.
       ``(b) Emission Reduction Milestones for 2020.--
       ``(1) In general.--To achieve the goal described in 
     subsection (a)(1), not later than 2 years after the date of 
     enactment of this title, after an opportunity for public 
     notice and comment, the Administrator shall promulgate any 
     rules that are necessary to reduce, by not later than January 
     1, 2020, the aggregate net levels of global warming pollution 
     emissions of the United States to the aggregate net level of 
     those global warming pollution emissions during calendar year 
     1990.
       ``(2) Achievement of milestones.--To the maximum extent 
     practicable, the reductions described in paragraph (1) shall 
     be achieved through an annual reduction in the aggregate net 
     level of global warming pollution emissions of the United 
     States of approximately 2 percent for each of calendar years 
     2010 through 2020.
       ``(c) Emission Reduction Milestones for 2030, 2040, and 
     2050.--Except as described in subsection (d), not later than 
     January 1, 2018, after an opportunity for public notice and 
     comment, the Administrator shall promulgate any rules that 
     are necessary to reduce the aggregate net levels of global 
     warming pollution emissions of the United States--
       ``(1) by calendar year 2030, by \1/3\ of 80 percent of the 
     aggregate net level of global warming pollution emissions of 
     the United States during calendar year 1990;
       ``(2) by calendar year 2040, by \2/3\ of 80 percent of the 
     aggregate net level of the global warming pollution emissions 
     of the United States during calendar year 1990; and
       ``(3) by calendar year 2050, by 80 percent of the aggregate 
     net level of global warming pollution emissions of the United 
     States during calendar year 1990.
       ``(d) Accelerated Emission Reduction Milestones.--If an NAS 
     report determines that any of the events described in section 
     705(a)(2) have occurred, or are more likely than not to occur 
     in the foreseeable future, not later than 2 years after the 
     date of completion of the NAS report, the Administrator, 
     after an opportunity for public notice and comment and taking 
     into account the new information reported in the NAS report, 
     may adjust the milestones under this section and promulgate 
     any rules that are necessary--
       ``(1) to reduce the aggregate net levels of global warming 
     pollution emissions from the United States on an accelerated 
     schedule; and
       ``(2) to minimize the effects of rapid climate change and 
     achieve the goals of this title.
       ``(e) Report on Achievement of Milestones.--If an NAS 
     report determines that a milestone under paragraph (1) or (2) 
     of subsection (c) cannot be achieved because of technological 
     infeasibility, the Administrator shall submit to Congress a 
     notification of that determination.
       ``(f) Emission Reduction Policies.--
       ``(1) In general.--In implementing subsections (a) through 
     (e), the Administrator may establish 1 or more market-based 
     programs.
       ``(2) Market-based program policies.--
       ``(A) In general.--In implementing any market-based 
     program, the Administrator shall allocate to households, 
     communities, and other entities described in section 706(a) 
     any global warming pollution emission allowances that are not 
     allocated to entities covered under the emission limitation.
       ``(B) Recognition of emission reductions made in compliance 
     with state and local laws.--A market-based program may 
     recognize reductions of global warming pollution emissions 
     made before the effective date of the market-based program if 
     the Administrator determines that--
       ``(i)(I) the reductions were made in accordance with a 
     State or local law;
       ``(II) the State or local law is at least as stringent as 
     the rules established for the market-based program under 
     paragraph (1); and
       ``(III) the reductions are at least as verifiable as 
     reductions made in accordance with those rules; or
       ``(ii) for any given entity subject to the market-based 
     program, the entity demonstrates that the entity has made 
     entity-wide reductions of global warming pollution emissions 
     before the effective date of the market-based program, but 
     not earlier than calendar year 1992, that are at least as 
     verifiable as reductions made in accordance with the rules 
     established for the market-based program under paragraph (1).
       ``(C) Publication.--If the Administrator determines that it 
     is necessary to establish a market-based program, the 
     Administrator shall publish notice of the determination in 
     the Federal Register.
       ``(D) Limitations on market-based programs.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Annual allowance price.--The term `annual allowance 
     price' means the average market price of global warming 
     pollution emission allowances for a calendar year.
       ``(II) Declining emissions cap with a technology-indexed 
     stop price.--The term `declining emissions cap with a 
     technology-indexed stop price' means a feature of a market-
     based program for an industrial sector, or on an economy-wide 
     basis, under which the emissions cap declines by a fixed 
     percentage each calendar year or, during any year in which 
     the annual allowance price exceeds the technology-indexed 
     stop price, the

[[Page S605]]

     emissions cap remains the same until the occurrence of the 
     earlier of--

       ``(aa) the date on which the annual allowance price no 
     longer exceeds the technology-indexed stop price; or
       ``(bb) the date on which a period of 3 years has elapsed 
     during which the emissions cap has remained unchanged.

       ``(III) Emissions cap.--The term `emissions cap' means the 
     total number of global warming pollution emission allowances 
     issued for a calendar year.
       ``(IV) Technology-indexed stop price.--The term 
     `technology-indexed stop price' means a price per ton of 
     global warming pollution emissions determined annually by the 
     Administrator that is not less than the technology-specific 
     average cost of preventing the emission of 1 ton of global 
     warming pollutants through commercial deployment of any 
     available zero-carbon or low-carbon technologies. With 
     respect to the electricity sector, those technologies shall 
     consist of--

       ``(aa) wind-generated electricity;
       ``(bb) photovoltaic-generated electricity;
       ``(cc) geothermal energy;
       ``(dd) solar thermally-generated energy;
       ``(ee) wave-based forms of energy;
       ``(ff) any fossil fuel-based electric generating technology 
     emitting less than 250 pounds per megawatt hour; and
       ``(gg) any zero-carbon-emitting electric generating 
     technology that does not generate radioactive waste.
       ``(ii) Implementation.--In implementing any market-based 
     program under this Act, for the period prior to January 1, 
     2020, the Administrator shall consider the impact on the 
     economy of the United States of implementing the program with 
     a declining emissions cap through the use of a technology-
     indexed stop price.
       ``(iii) Other emitting sectors.--The Administrator may 
     consider the use of a declining emissions cap with a 
     technology-indexed stop price, or similar approaches, for 
     other emitting sectors based on low-carbon or zero-carbon 
     technologies, including--

       ``(I) biofuels;
       ``(II) hydrogen power; and
       ``(III) other sources of energy and transportation fuel.

       ``(g) Cost-Effectiveness.--In promulgating regulations 
     under this section, the Administrator shall select the most 
     cost-effective options for global warming pollution control 
     and emission reduction strategies.

     ``SEC. 705. CONDITIONS FOR ACCELERATED GLOBAL WARMING 
                   POLLUTION EMISSION REDUCTION.

       ``(a) Report on Global Change Events by the Academy.--
       ``(1) In general.--The Administrator shall offer to enter 
     into a contract with the Academy under which the Academy, not 
     later than 2 years after the date of enactment of this title, 
     and every 3 years thereafter, shall submit to Congress and 
     the Administrator a report that describes whether any of the 
     events described in paragraph (2)--
       ``(A) have occurred or are more likely than not to occur in 
     the foreseeable future; and
       ``(B) in the judgment of the Academy, are the result of 
     anthropogenic climate change.
       ``(2) Events.--The events referred to in paragraph (1) 
     are--
       ``(A) the exceedance of an atmospheric concentration of 
     global warming pollutants of 450 parts per million in carbon 
     dioxide equivalent; and
       ``(B) an increase of global average temperatures in excess 
     of 3.6 degrees Fahrenheit (2 degrees Celsius) above the 
     preindustrial average.
       ``(b) Technology Reports.--
       ``(1) Definition of technologically infeasible.--In this 
     subsection, the term `technologically infeasible', with 
     respect to a technology, means that the technology--
       ``(A) will not be demonstrated beyond laboratory-scale 
     conditions;
       ``(B) would be unsafe;
       ``(C) would not reliably reduce global warming pollution 
     emissions; or
       ``(D) would prevent the activity to which the technology 
     applies from meeting or performing its primary purpose (such 
     as generating electricity or transporting goods or 
     individuals).
       ``(2) Reports.--The Administrator shall offer to enter into 
     a contract with the Academy under which the Academy, not 
     later than 2 years after the date of enactment of this title 
     and every 3 years thereafter, shall submit to Congress and 
     the Administrator a report that describes or analyzes--
       ``(A) the status of current global warming pollution 
     emission reduction technologies, including--
       ``(i) technologies for capture and disposal of global 
     warming pollutants;
       ``(ii) efficiency improvement technologies;
       ``(iii) zero-global-warming-pollution-emitting energy 
     technologies; and
       ``(iv) above- and below-ground biological sequestration 
     technologies;
       ``(B) whether any of the requirements under this title 
     (including regulations promulgated under this title) mandate 
     a level of emission control or reduction that, based on 
     available or expected technology, will be technologically 
     infeasible at the time at which the requirements become 
     effective;
       ``(C) the projected date on which any technology determined 
     to be technologically infeasible will become technologically 
     feasible;
       ``(D) whether any technology determined to be 
     technologically infeasible cannot reasonably be expected to 
     become technologically feasible prior to calendar year 2050; 
     and
       ``(E) the costs of available alternative global warming 
     pollution emission reduction strategies that could be used or 
     pursued in lieu of any technologies that are determined to be 
     technologically infeasible.
       ``(3) Report evaluating 2050 milestone.--Not later than 
     December 31, 2037, the Administrator shall offer to enter 
     into a contract with the Academy under which, not later than 
     December 31, 2039, the Academy shall prepare and submit to 
     Congress and the Administrator a report on the 
     appropriateness of the milestone described in section 
     704(c)(3), taking into consideration--
       ``(A) information that was not available as of the date of 
     enactment of this title; and
       ``(B) events that have occurred since that date relating 
     to--
       ``(i) climate change;
       ``(ii) climate change technologies; and
       ``(iii) national and international climate change 
     commitments.
       ``(c) Additional Items in NAS Report.--In addition to the 
     information described in subsection (a)(1) that is required 
     to be included in the NAS report, the Academy shall include 
     in the NAS report--
       ``(1) an analysis of the trends in annual global warming 
     pollution emissions by the United States and the other 
     countries that collectively account for more than 90 percent 
     of global warming pollution emissions (including country-
     specific inventories of global warming pollution emissions 
     and facility-specific inventories of global warming pollution 
     emissions in the United States);
       ``(2) an analysis of the trends in global warming pollution 
     concentrations (including observed atmospheric concentrations 
     of global warming pollutants);
       ``(3) a description of actual and projected global change 
     impacts that may be caused by anthropogenic global warming 
     pollution emissions, in addition to the events described in 
     subsection (a)(2); and
       ``(4) such other information as the Academy determines to 
     be appropriate.

     ``SEC. 706. USE OF ALLOWANCES FOR TRANSITION ASSISTANCE AND 
                   OTHER PURPOSES.

       ``(a) Regulations Governing Allocation of Allowances for 
     Transition Assistance to Individuals and Entities.--
       ``(1) In general.--In implementing any market-based 
     program, the Administrator may promulgate regulations 
     providing for the allocation of global warming pollution 
     emission allowances to the individuals and entities, or for 
     the purposes, specified in subsection (b).
       ``(2) Requirements.--Regulations promulgated under 
     paragraph (1) may, as the Administrator determines to be 
     necessary, provide for the appointment of 1 or more 
     trustees--
       ``(A) to receive emission allowances for the benefit of 
     households, communities, and other entities described in 
     paragraph (1);
       ``(B) to sell the emission allowances at fair market value; 
     and
       ``(C) to distribute the proceeds of any sale of emission 
     allowances to the appropriate beneficiaries.
       ``(b) Allocation for Transition Assistance.--The 
     Administrator may allocate emission allowances, in accordance 
     with regulations promulgated under subsection (a), to--
       ``(1) communities, individuals, and companies that have 
     experienced disproportionate adverse impacts as a result of--
       ``(A) the transition to a lower carbon-emitting economy; or
       ``(B) global warming;
       ``(2) owners and operators of highly energy-efficient 
     buildings, including--
       ``(A) residential users;
       ``(B) producers of highly energy-efficient products; and
       ``(C) entities that carry out energy-efficiency improvement 
     projects pursuant to section 712 that result in consumer-side 
     reductions in electricity use;
       ``(3) entities that will use the allowances for the purpose 
     of carrying out geological sequestration of carbon dioxide 
     produced by an anthropogenic global warming pollution 
     emission source in accordance with requirements established 
     by the Administrator;
       ``(4) such individuals and entities as the Administrator 
     determines to be appropriate, for use in carrying out 
     projects to reduce net carbon dioxide emissions through 
     above-ground and below-ground biological carbon dioxide 
     sequestration (including sequestration in forests, forest 
     soils, agricultural soils, rangeland, or grassland in the 
     United States);
       ``(5) such individuals and entities (including fish and 
     wildlife agencies) as the Administrator determines to be 
     appropriate, for use in carrying out projects to protect and 
     restore ecosystems (including fish and wildlife) affected by 
     climate change; and
       ``(6) manufacturers producing consumer products that result 
     in substantially reduced global warming pollution emissions, 
     for use in funding rebates for purchasers of those products.

     ``SEC. 707. VEHICLE EMISSION STANDARDS.

       ``(a) Vehicles Under 10,000 Pounds.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations requiring each 
     fleet of automobiles sold by a manufacturer in the United 
     States beginning in model year 2016 to meet the standards for 
     global warming pollution emissions described in paragraph 
     (2).

[[Page S606]]

       ``(2) Emission standards.--The average global warming 
     pollution emissions of a vehicle fleet described in paragraph 
     (1) shall not exceed--
       ``(A) 205 carbon dioxide equivalent grams per mile for 
     automobiles with--
       ``(i) a gross vehicle weight of not more than 8,500 pounds; 
     and
       ``(ii) a loaded vehicle weight of not more than 3,750 
     pounds;
       ``(B) 332 carbon dioxide equivalent grams per mile for--
       ``(i) automobiles with--

       ``(I) a gross vehicle weight of not more than 8,500 pounds; 
     and
       ``(II) a loaded vehicle weight of more than 3,750 pounds; 
     and

       ``(ii) medium-duty passenger vehicles; and
       ``(C) 405 carbon dioxide equivalent grams per mile for 
     vehicles--
       ``(i) with a gross vehicle weight of between 8,501 pounds 
     and 10,000 pounds; and
       ``(ii) that are not medium-duty passenger vehicles.
       ``(3) Heightened standards.--After model year 2016, the 
     Administrator may promulgate regulations that increase the 
     stringency of emission standards described in paragraph (2) 
     as necessary to meet the emission reduction goal described in 
     section 704(e)(3).
       ``(b) Highway Vehicles Over 10,000 Pounds.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations requiring each 
     fleet of highway vehicles over 10,000 pounds sold by a 
     manufacturer in the United States beginning in model year 
     2020 to meet the standards for global warming pollution 
     emissions described in paragraph (2).
       ``(2) Emission standards.--The average global warming 
     pollution emissions of a vehicle fleet described in paragraph 
     (1) shall not exceed--
       ``(A) 850 carbon dioxide equivalent grams per mile for 
     highway vehicles with a gross vehicle weight rating between 
     10,001 pounds and 26,000 pounds; and
       ``(B) 1,050 carbon dioxide equivalent grams per mile for 
     highway vehicles with a gross vehicle weight rating of more 
     than 26,000 pounds.
       ``(3) Heightened standards.--After model year 2020, the 
     Administrator may promulgate regulations that increase the 
     stringency of emission standards described in paragraph (2) 
     as necessary to meet the emission reduction goal described in 
     section 704(a)(1).
       ``(c) Adjustment of Requirements.--Taking into account 
     appropriate lead times for vehicle manufacturers, if the 
     Academy determines, pursuant to an NAS report, that a vehicle 
     emission standard under this section is or will be 
     technologically infeasible as of the effective date of the 
     standard, the Administrator may, by regulation, modify the 
     requirement to take into account the determination of the 
     Academy.
       ``(d) Study.--
       ``(1) In general.--Not later than January 1, 2008, the 
     Administrator shall enter into a contract with the Academy 
     under which the Academy shall conduct a study of, and submit 
     to the Administrator a report on, the potential contribution 
     of the non-highway portion of the transportation sector 
     toward meeting the emission reduction goal described in 
     section 704(a)(1).
       ``(2) Requirements.--The study shall analyze--
       ``(A) the technological feasibility and cost-effectiveness 
     of global warming pollution reductions from the non-highway 
     sector; and
       ``(B) the overall potential contribution of that sector in 
     terms of emissions, in meeting the emission reduction goal 
     described in section 704(a)(1).

     ``SEC. 708. EMISSION STANDARDS FOR ELECTRIC GENERATION UNITS.

       ``(a) Initial Standard.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this title, the Administrator shall, by 
     regulation, require each unit that is designed and intended 
     to provide electricity at a unit capacity factor of at least 
     60 percent and that begins operation after December 31, 2011, 
     to meet the standard described in paragraph (2).
       ``(2) Standard.--Beginning on December 31, 2015, a unit 
     described in paragraph (1) shall meet a global warming 
     pollution emission standard that is not higher than the 
     emission rate of a new combined cycle natural gas generating 
     unit.
       ``(3) More stringent requirements.--For the period 
     beginning on January 1 of the calendar year following the 
     effective date of the regulation described in paragraph (1) 
     and ending on December 31, 2029, the Administrator may 
     increase the stringency of the global warming pollution 
     emission standard described in paragraph (1) with respect to 
     electric generation units described in that paragraph.
       ``(b) Final Standard.--Not later than December 31, 2030, 
     the Administrator shall require each electric generation 
     unit, regardless of when the unit began to operate, to meet 
     the applicable emission standard under subsection (a).
       ``(c) Adjustment of Requirements.--If the Academy 
     determines, pursuant to section 705, that a requirement of 
     this section is or will be technologically infeasible at the 
     time at which the requirement becomes effective, the 
     Administrator, may, by regulation, adjust or delay the 
     effective date of the requirement as is necessary to take 
     into consideration the determination of the Academy.

     ``SEC. 709. LOW-CARBON GENERATION REQUIREMENT.

       ``(a) Definitions.--In this section:
       ``(1) Base quantity of electricity.--The term `base 
     quantity of electricity' means the total quantity of 
     electricity produced for sale by a covered generator during 
     the calendar year immediately preceding a compliance year 
     from coal, petroleum coke, lignite, or any combination of 
     those fuels.
       ``(2) Covered generator.--The term `covered generator' 
     means an electric generating unit that--
       ``(A) has a rated capacity of 25 megawatts or more; and
       ``(B) has an annual fuel input at least 50 percent of which 
     is provided by coal, petroleum coke, lignite, or any 
     combination of those fuels.
       ``(3) Low-carbon generation.--The term `low-carbon 
     generation' means electric energy generated from an electric 
     generating unit at least 50 percent of the annual fuel input 
     of which, in any year--
       ``(A) is provided by coal, petroleum coke, lignite, 
     biomass, or any combination of those fuels; and
       ``(B) results in an emission rate into the atmosphere of 
     not more than 250 pounds of carbon dioxide per megawatt-hour 
     (after adjustment for carbon dioxide from the electric 
     generating unit that is geologically sequestered in a 
     geological repository approved by the Administrator pursuant 
     to subsection (e)).
       ``(4) Program.--The term `program' means the low-carbon 
     generation credit trading program established under 
     subsection (d)(1).
       ``(b) Requirement.--
       ``(1) Calendar years 2015 through 2020.--Of the base 
     quantity of electricity produced for sale by a covered 
     generator for a calendar year, the covered generator shall 
     provide a minimum percentage of that base quantity of 
     electricity for the calendar year from low-carbon generation, 
     as specified in the following table:

                                                         Minimum annual
``Calendar year:                                            percentage:
2015................................................................0.5
2016................................................................1.0
2017................................................................2.0
2018................................................................3.0
2019................................................................4.0
2020................................................................5.0

       ``(2) Calendar years 2021 through 2025.--For each of 
     calendar years 2021 through 2025, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by up to 2 percentage points from the previous year, as 
     the Administrator determines to be necessary to achieve the 
     emission reduction goal described in section 704(a)(1).
       ``(3) Calendar years 2026 through 2030.--For each of 
     calendar years 2026 through 2030, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by up to 3 percentage points from the previous year, as 
     the Administrator determines to be necessary to achieve the 
     emission reduction goal described in section 704(a)(1).
       ``(c) Means of Compliance.--An owner or operator of a 
     covered generator shall comply with subsection (b) by--
       ``(1) generating electric energy using low-carbon 
     generation;
       ``(2) purchasing electric energy generated by low-carbon 
     generation;
       ``(3) purchasing low-carbon generation credits issued under 
     the program; or
       ``(4) undertaking a combination of the actions described in 
     paragraphs (1) through (3).
       ``(d) Low-Carbon Generation Credit Trading Program.--
       ``(1) In general.--Not later than January 1, 2008, the 
     Administrator shall establish, by regulation after notice and 
     opportunity for comment, a low-carbon generation trading 
     program to permit an owner or operator of a covered generator 
     that does not generate or purchase enough electric energy 
     from low-carbon generation to comply with subsection (b) to 
     achieve that compliance by purchasing sufficient low-carbon 
     generation credits.
       ``(2) Requirements.--As part of the program, the 
     Administrator shall--
       ``(A) issue to producers of low-carbon generation, on a 
     quarterly basis, a single low-carbon generation credit for 
     each kilowatt hour of low-carbon generation sold during the 
     preceding quarter; and
       ``(B) ensure that a kilowatt hour, including the associated 
     low-carbon generation credit, shall be used only once for 
     purposes of compliance with subsection (b).
       ``(e) Enforcement.--An owner or operator of a covered 
     generator that fails to comply with subsection (b) shall be 
     subject to a civil penalty in an amount equal to the product 
     obtained by multiplying--
       ``(1) the number of kilowatt-hours of electric energy sold 
     to electric consumers in violation of subsection (b); and
       ``(2) the greater of--
       ``(A) 2.5 cents (as adjusted under subsection (g)); or
       ``(B) 200 percent of the average market value of those low-
     carbon generation credits during the year in which the 
     violation occurred.
       ``(f) Exemption.--This section shall not apply for any 
     calendar year to an owner or operator of a covered generator 
     that sold less than 40,000 megawatt-hours of electric energy 
     produced from covered generators during the preceding 
     calendar year.
       ``(g) Inflation Adjustment.--Not later than December 31, 
     2008, and annually thereafter, the Administrator shall adjust 
     the

[[Page S607]]

     amount of the civil penalty for each kilowatt-hour calculated 
     under subsection (e)(2) to reflect changes for the 12-month 
     period ending on the preceding November 30 in the Consumer 
     Price Index for All Urban Consumers published by the Bureau 
     of Labor Statistics of the Department of Labor.
       ``(h) Technological Infeasibility.--If the Academy 
     determines, pursuant to section 705, that the schedule for 
     compliance described in subsection (b) is or will be 
     technologically infeasible for covered generators to meet, 
     the Administrator may, by regulation, adjust the schedule as 
     the Administrator determines to be necessary to take into 
     account the consideration of the determination of the 
     Academy.
       ``(i) Termination of Authority.--This section and the 
     authority provided by this section terminate on December 31, 
     2030.

     ``SEC. 710. GEOLOGICAL DISPOSAL OF GLOBAL WARMING POLLUTANTS.

       ``(a) Geological Carbon Dioxide Disposal Deployment 
     Projects.--
       ``(1) In general.--The Administrator shall establish a 
     competitive grant program to provide grants to 5 entities for 
     the deployment of projects to geologically dispose of carbon 
     dioxide (referred to in this subsection as `geological 
     disposal deployment projects').
       ``(2) Location.--Each geological disposal deployment 
     project shall be conducted in a geologically distinct 
     location in order to demonstrate the suitability of a variety 
     of geological structures for carbon dioxide disposal.
       ``(3) Components.--Each geological disposal deployment 
     project shall include an analysis of--
       ``(A) mechanisms for trapping the carbon dioxide to be 
     geologically disposed;
       ``(B) techniques for monitoring the geologically disposed 
     carbon dioxide;
       ``(C) public response to the geological disposal deployment 
     project; and
       ``(D) the permanency of carbon dioxide storage in 
     geological reservoirs.
       ``(4) Requirements.--
       ``(A) In general.--The Administrator shall establish--
       ``(i) appropriate conditions for environmental protection 
     with respect to geological disposal deployment projects to 
     protect public health and the environment; and
       ``(ii) requirements relating to applications for grants 
     under this subsection.
       ``(B) Rulemaking.--The establishment of requirements under 
     subparagraph (A) shall not require a rulemaking.
       ``(C) Minimum requirements.--At a minimum, each application 
     for a grant under this subsection shall include--
       ``(i) a description of the geological disposal deployment 
     project proposed in the application;
       ``(ii) an estimate of the quantity of carbon dioxide to be 
     geologically disposed over the life of the geological 
     disposal deployment project; and
       ``(iii) a plan to collect and disseminate data relating to 
     each geological disposal deployment project to be funded by 
     the grant.
       ``(5) Partners.--An applicant for a grant under this 
     subsection may carry out a geological disposal deployment 
     project under a pilot program in partnership with 1 or more 
     public or private entities.
       ``(6) Selection criteria.--In evaluating applications under 
     this subsection, the Administrator shall--
       ``(A) consider the previous experience of each applicant 
     with similar projects; and
       ``(B) give priority consideration to applications for 
     geological disposal deployment projects that--
       ``(i) offer the greatest geological diversity from other 
     projects that have previously been approved;
       ``(ii) are located in closest proximity to a source of 
     carbon dioxide;
       ``(iii) make use of the most affordable source of carbon 
     dioxide;
       ``(iv) are expected to geologically dispose of the largest 
     quantity of carbon dioxide;
       ``(v) are combined with demonstrations of advanced coal 
     electricity generation technologies;
       ``(vi) demonstrate the greatest commitment on the part of 
     the applicant to ensure funding for the proposed 
     demonstration project and the greatest likelihood that the 
     demonstration project will be maintained or expanded after 
     Federal assistance under this subsection is completed; and
       ``(vii) minimize any adverse environmental effects from the 
     project.
       ``(7) Period of grants.--
       ``(A) In general.--A geological disposal deployment project 
     funded by a grant under this subsection shall begin 
     construction not later than 3 years after the date on which 
     the grant is provided.
       ``(B) Term.--The Administrator shall not provide grant 
     funds to any applicant under this subsection for a period of 
     more than 5 years.
       ``(8) Transfer of information and knowledge.--The 
     Administrator shall establish mechanisms to ensure that the 
     information and knowledge gained by participants in the 
     program under this subsection are published and disseminated, 
     including to other applicants that submitted applications for 
     a grant under this subsection.
       ``(9) Schedule.--
       ``(A) Publication.--Not later than 180 days after the date 
     of enactment of this title, the Administrator shall publish 
     in the Federal Register, and elsewhere as appropriate, a 
     request for applications to carry out geological disposal 
     deployment projects.
       ``(B) Date for applications.--An application for a grant 
     under this subsection shall be submitted not later than 180 
     days after the date of publication of the request under 
     subparagraph (A).
       ``(C) Selection.--After the date by which applications for 
     grants are required to be submitted under subparagraph (B), 
     the Administrator, in a timely manner, shall select, after 
     peer review and based on the criteria under paragraph (6), 
     those geological disposal deployment projects to be provided 
     a grant under this subsection.
       ``(b) Interim Standards.--Not later than 3 years after the 
     date of enactment of this title, the Administrator, in 
     consultation with the Secretary of Energy, shall, by 
     regulation, establish interim geological carbon dioxide 
     disposal standards that address--
       ``(1) site selection;
       ``(2) permitting processes;
       ``(3) monitoring requirements;
       ``(4) public participation; and
       ``(5) such other issues as the Administrator and the 
     Secretary of Energy determine to be appropriate.
       ``(c) Final Standards.--Not later than 6 years after the 
     date of enactment of this title, taking into account the 
     results of geological disposal deployment projects carried 
     out under subsection (a), the Administrator shall, by 
     regulation, establish final geological carbon dioxide 
     disposal standards.
       ``(d) Considerations.--In developing standards under 
     subsections (b) and (c), the Administrator shall consider the 
     experience in the United States in regulating--
       ``(1) underground injection of waste;
       ``(2) enhanced oil recovery;
       ``(3) short-term storage of natural gas; and
       ``(4) long-term waste storage.
       ``(e) Termination of Authority.--This section and the 
     authority provided by this section terminate on December 31, 
     2030.

     ``SEC. 711. RESEARCH AND DEVELOPMENT.

       ``(a) In General.--The Administrator shall carry out a 
     program to perform and support research on global climate 
     change standards and processes, with the goals of--
       ``(1) providing scientific and technical knowledge 
     applicable to the reduction of global warming pollutants; and
       ``(2) facilitating implementation of section 704.
       ``(b) Research Program.--
       ``(1) In general.--The Administrator shall carry out, 
     directly or through the use of contracts or grants, a global 
     climate change standards and processes research program.
       ``(2) Research.--
       ``(A) Contents and priorities.--The specific contents and 
     priorities of the research program shall be determined in 
     consultation with appropriate Federal agencies, including--
       ``(i) the National Oceanic and Atmospheric Administration;
       ``(ii) the National Aeronautics and Space Administration; 
     and
       ``(iii) the Department of Energy.
       ``(B) Types of research.--The research program shall 
     include the conduct of basic and applied research--
       ``(i) to develop and provide the enhanced measurements, 
     calibrations, data, models, and reference material standards 
     necessary to enable the monitoring of global warming 
     pollution;
       ``(ii) to assist in establishing a baseline reference point 
     for future trading in global warming pollutants (including 
     the measurement of progress in emission reductions);
       ``(iii) for international exchange as scientific or 
     technical information for the stated purpose of developing 
     mutually-recognized measurements, standards, and procedures 
     for reducing global warming pollution; and
       ``(iv) to assist in developing improved industrial 
     processes designed to reduce or eliminate global warming 
     pollution.
       ``(3) Abrupt climate change research.--
       ``(A) Definition of abrupt climate change.--In this 
     paragraph, the term `abrupt climate change' means a change in 
     climate that occurs so rapidly or unexpectedly that humans or 
     natural systems may have difficulty adapting to the change.
       ``(B) Research.--The Administrator shall carry out a 
     program of scientific research on potential abrupt climate 
     change that is designed--
       ``(i) to develop a global array of terrestrial and 
     oceanographic indicators of paleoclimate in order to identify 
     and describe past instances of abrupt climate change;
       ``(ii) to improve understanding of thresholds and 
     nonlinearities in geophysical systems relating to the 
     mechanisms of abrupt climate change;
       ``(iii) to incorporate those mechanisms into advanced 
     geophysical models of climate change; and
       ``(iv) to test the output of those models against an 
     improved global array of records of past abrupt climate 
     changes.
       ``(c) Sense of the Senate.--It is the sense of the Senate 
     that Federal funds for clean, low-carbon energy research, 
     development, and deployment should be increased by at least 
     100 percent for each year during the 10-year period beginning 
     on the date of enactment of this title.

     ``SEC. 712. ENERGY EFFICIENCY PERFORMANCE STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Electricity savings.--
       ``(A) In general.--The term `electricity savings' means 
     reductions in end-use electricity consumption relative to 
     consumption by the same customer or at the same new or

[[Page S608]]

     existing facility in a given year, as defined in regulations 
     promulgated by the Administrator under subsection (e).
       ``(B) Inclusions.--The term `savings' includes savings 
     achieved as a result of--
       ``(i) installation of energy-saving technologies and 
     devices; and
       ``(ii) the use of combined heat and power systems, fuel 
     cells, or any other technology identified by the 
     Administrator that recaptures or generates energy solely for 
     onsite customer use.
       ``(C) Exclusion.--The term `savings' does not include 
     savings from measures that would likely be adopted in the 
     absence of energy-efficiency programs, as determined by the 
     Administrator.
       ``(2) Retail electricity sales.--The term `retail 
     electricity sales' means the total quantity of electric 
     energy sold by a retail electricity supplier to retail 
     customers during the most recent calendar year for which that 
     information is available.
       ``(3) Retail electricity supplier.--The term `retail 
     electricity supplier' means a distribution or integrated 
     utility, or an independent company or entity, that sells 
     electric energy to consumers.
       ``(b) Energy Efficiency Performance Standard.--Each retail 
     electricity supplier shall implement programs and measures to 
     achieve improvements in energy efficiency and peak load 
     reduction, as verified by the Administrator.
       ``(c) Targets.--For calendar year 2008 and each calendar 
     year thereafter, the Administrator shall ensure that retail 
     electric suppliers annually achieve electricity savings and 
     reduce peak power demand and electricity use by retail 
     customers by a percentage that is not less than the 
     applicable target percentage specified in the following 
     table:


----------------------------------------------------------------------------------------------------------------
                                                     Reduction in peak demand (in   Reduction in electricity use
                   Calendar year                               percent)                     (in percent)
----------------------------------------------------------------------------------------------------------------
2008..............................................                            .25                            .25
2009..............................................                            .75                            .75
2010..............................................                           1.75                           1.5
2011..............................................                           2.75                           2.25
2012..............................................                           3.75                           3.0
2013..............................................                           4.75                           3.75
2014..............................................                           5.75                           4.5
2015..............................................                           6.75                           5.25
2016..............................................                           7.75                           6.0
2017..............................................                           8.75                           6.75
2018..............................................                           9.75                           7.5
2019..............................................                          10.75                           8.25
2020 and each calendar year thereafter............                          11.75                           9.0
----------------------------------------------------------------------------------------------------------------

       ``(d) Beginning Date.--For the purpose of meeting the 
     targets established under subsection (c), electricity savings 
     shall be calculated based on the sum of--
       ``(1) savings realized as a result of actions taken by the 
     retail electric supplier during the specified calendar year; 
     and
       ``(2) cumulative savings realized as a result of 
     electricity savings achieved in all previous calendar years 
     (beginning with calendar year 2006).
       ``(e) Implementing Regulations.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations to implement the targets established under 
     subsection (c).
       ``(2) Requirements.--The regulations shall establish--
       ``(A) a national credit system permitting credits to be 
     awarded, bought, sold, or traded by and among retail 
     electricity suppliers;
       ``(B) a fee equivalent to not less than 4 cents per 
     kilowatt hour for retail energy suppliers that do not meet 
     the targets established under subsection (c); and
       ``(C) standards for monitoring and verification of 
     electricity use and demand savings reported by the retail 
     electricity suppliers.
       ``(3) Consideration of transmission and distribution 
     efficiency.--In developing regulations under this subsection, 
     the Administrator shall consider whether savings, in whole or 
     part, achieved by retail electricity suppliers by improving 
     the efficiency of electric distribution and use should be 
     eligible for credits established under this section.
       ``(f) Compliance With State Law.--Nothing in this section 
     shall supersede or otherwise affect any State or local law 
     requiring or otherwise relating to reductions in total annual 
     electricity consumption, or peak power consumption, by 
     electric consumers to the extent that the State or local law 
     requires more stringent reductions than those required under 
     this section.
       ``(g) Voluntary Participation.--The Administrator may--
       ``(1) pursuant to the regulations promulgated under 
     subsection (e)(1), issue a credit to any entity that is not a 
     retail electric supplier if the entity implements electricity 
     savings; and
       ``(2) in a case in which an entity described in paragraph 
     (1) is a nonprofit or educational organization, provide to 
     the entity 1 or more grants in lieu of a credit.

     ``SEC. 713. RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy.--
       ``(1) In general.--The Administrator, in consultation with 
     the Secretary of Energy, shall promulgate regulations 
     defining the types and sources of renewable energy generation 
     that may be carried out in accordance with this section.
       ``(2) Inclusions.--In promulgating regulations under 
     paragraph (1), the Administrator shall include of all types 
     of renewable energy (as defined in section 203(b) of the 
     Energy Policy Act of 2005 (42 U.S.C. 15852(b))) other than 
     energy generated from--
       ``(A) municipal solid waste;
       ``(B) wood contaminated with plastics or metals; or
       ``(C) tires.
       ``(b) Renewable Energy Requirement.--Of the base quantity 
     of electricity sold by each retail electric supplier to 
     electric consumers during a calendar year, the quantity 
     generated by renewable energy sources shall be not less than 
     the following percentages:

``Calendar year:                             Minimum annual percentage:
2008 through 2009.....................................................5
2010 through 2014....................................................10
2015 through 2019....................................................15
2020 and subsequent years............................................20

       ``(c) Renewable Energy Credit Program.--Not later than 1 
     year after the date of enactment of this title, the 
     Administrator shall establish--
       ``(1) a program to issue, establish the value of, monitor 
     the sale or exchange of, and track renewable energy credits; 
     and
       ``(2) penalties for any retail electric supplier that does 
     not comply with this section.
       ``(d) Prohibition on Double Counting.--A renewable energy 
     credit issued under subsection (c)--
       ``(1) may be counted toward meeting the requirements of 
     subsection (b) only once; and
       ``(2) shall vest with the owner of the system or facility 
     that generates the renewable energy that is covered by the 
     renewable energy credit, unless the owner explicitly 
     transfers the renewable energy credit.
       ``(e) Sale Under Purpa Contract.--If the Administrator, 
     after consultation with the Secretary of Energy, determines 
     that a renewable energy generator is selling electricity to 
     comply with this section to a retail electric supplier under 
     a contract subject to section 210 of the Public Utilities 
     Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), the 
     retail electric supplier shall be treated as the generator of 
     the electric energy for the purposes of this title for the 
     duration of the contract.
       ``(f) State Programs.--Nothing in this section precludes 
     any State from requiring additional renewable energy 
     generation under any State renewable energy program.
       ``(g) Voluntary Participation.--The Administrator may issue 
     a renewable energy credit pursuant to subsection (c) to any 
     entity that is not subject to this section only if the entity 
     applying for the renewable energy credit meets the terms and 
     conditions of this section to the same extent as retail 
     electric suppliers subject to this section.

     ``SEC. 714. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION 
                   OF CARBON.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of title, the Secretary of Agriculture, with the 
     concurrence of the Administrator, shall establish standards 
     for accrediting certified reductions in the emission of 
     carbon dioxide through above-ground and below-ground 
     biological sequestration activities.
       ``(b) Requirements.--The standards shall include--
       ``(1) a national biological carbon storage baseline or 
     inventory; and

[[Page S609]]

       ``(2) measurement, monitoring, and verification guidelines 
     based on--
       ``(A) measurement of increases in carbon storage in excess 
     of the carbon storage that would have occurred in the absence 
     of a new management practice designed to achieve biological 
     sequestration of carbon;
       ``(B) comprehensive carbon accounting that--
       ``(i) reflects sustained net increases in carbon 
     reservoirs; and
       ``(ii) takes into account any carbon emissions resulting 
     from disturbance of carbon reservoirs in existence as of the 
     date of commencement of any new management practice designed 
     to achieve biological sequestration of carbon;
       ``(C) adjustments to account for--
       ``(i) emissions of carbon that may result at other 
     locations as a result of the impact of the new biological 
     sequestration management practice on timber supplies; or
       ``(ii) potential displacement of carbon emissions to other 
     land owned by the entity that carries out the new biological 
     sequestration management practice; and
       ``(D) adjustments to reflect the expected carbon storage 
     over various time periods, taking into account the likely 
     duration of the storage of carbon in a biological reservoir.
       ``(c) Updating of Standards.--Not later than 3 years after 
     the date of establishment of the standards under subsection 
     (a), and every 3 years thereafter, the Secretary of 
     Agriculture shall update the standards to take into account 
     the most recent scientific information.

     ``SEC. 715. GLOBAL WARMING POLLUTION REPORTING.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of this title, and annually thereafter, any entity 
     considered to be a major stationary source (as defined in 
     section 169A(g)) shall submit to the Administrator a report 
     describing the emissions of global warming pollutants from 
     the entity for the preceding calendar year.
       ``(b) Voluntary Reporting.--An entity that is not described 
     in subsection (a) may voluntarily report the emissions of 
     global warming pollutants from the entity to the 
     Administrator.
       ``(c) Requirements for Reports.--
       ``(1) Expression of measurements.--Each global warming 
     pollution report submitted under this section shall express 
     global warming pollution emissions in--
       ``(A) metric tons of each global warming pollutant; and
       ``(B) metric tons of the carbon dioxide equivalent of each 
     global warming pollutant.
       ``(2) Electronic format.--The information contained in a 
     report submitted under this section shall be reported 
     electronically to the Administrator in such form and to such 
     extent as may be required by the Administrator.
       ``(3) De minimis exemption.--The Administrator may specify 
     the level of global warming pollution emissions from a source 
     within a facility that shall be considered to be a de minimis 
     exemption from the requirement to comply with this section.
       ``(d) Public Availability of Information.--Not later than 
     March 1 of the year after which the Administrator receives a 
     report under this subsection from an entity, and annually 
     thereafter, the Administrator shall make the information 
     reported under this section available to the public through 
     the Internet.
       ``(e) Protocols and Methods.--The Administrator shall, by 
     regulation, establish protocols and methods to ensure 
     completeness, consistency, transparency, and accuracy of data 
     on global warming pollution emissions submitted under this 
     section.
       ``(f) Enforcement.--Regulations promulgated under this 
     section may be enforced pursuant to section 113 with respect 
     to any person that--
       ``(1) fails to submit a report under this section; or
       ``(2) otherwise fails to comply with those regulations.

     ``SEC. 716. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING 
                   COUNTRIES.

       ``(a) Definitions.--In this section:
       ``(1) Clean energy technology.--The term `clean energy 
     technology' means an energy supply or end-use technology 
     that, over the lifecycle of the technology and compared to a 
     similar technology already in commercial use in any 
     developing country--
       ``(A) is reliable; and
       ``(B) results in reduced emissions of global warming 
     pollutants.
       ``(2) Developing country.--
       ``(A) In general.--The term `developing country' means any 
     country not listed in Annex I of the United Nations Framework 
     Convention on Climate Change, done at New York on May 9, 
     1992.
       ``(B) Inclusion.--The term `developing country' may include 
     a country with an economy in transition, as determined by the 
     Secretary.
       ``(3) Task force.--The term `Task Force' means the Task 
     Force on International Clean, Low-Carbon Energy Cooperation 
     established under subsection (b)(1).
       ``(b) Task Force.--
       ``(1) Establishment.--Not later than 90 days after the date 
     of enactment of this title, the President shall establish a 
     task force to be known as the `Task Force on International 
     Clean, Low Carbon Energy Cooperation'.
       ``(2) Composition.--The Task Force shall be composed of--
       ``(A) the Administrator and the Secretary of State, who 
     shall serve jointly as Co-Chairpersons; and
       ``(B) representatives, appointed by the head of the 
     respective Federal agency, of--
       ``(i) the Department of Commerce;
       ``(ii) the Department of the Treasury;
       ``(iii) the United States Agency for International 
     Development;
       ``(iv) the Export-Import Bank;
       ``(v) the Overseas Private Investment Corporation;
       ``(vi) the Office of United States Trade Representative; 
     and
       ``(vii) such other Federal agencies as are determined to be 
     appropriate by the President.
       ``(c) Duties.--
       ``(1) Initial strategy.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this title, the Task Force shall develop and 
     submit to the President an initial strategy--
       ``(i) to support the development and implementation of 
     programs and policies in developing countries to promote the 
     adoption of clean, low-carbon energy technologies and energy-
     efficiency technologies and strategies, with an emphasis on 
     those developing countries that are expected to experience 
     the most significant growth in global warming pollution 
     emissions over the 20-year period beginning on the date of 
     enactment of this title; and
       ``(ii)(I) open and expand clean, low-carbon energy 
     technology markets; and
       ``(II) facilitate the export of that technology to 
     developing countries.
       ``(B) Submission to congress.--On receipt of the initial 
     strategy from the Task Force under subparagraph (A), the 
     President shall submit the initial strategy to Congress.
       ``(2) Final strategy.--Not later than 2 years after the 
     date of submission of the initial strategy under paragraph 
     (1), and every 2 years thereafter--
       ``(A) the Task Force shall--
       ``(i) review and update the initial strategy; and
       ``(ii) report the results of the review and update to the 
     President; and
       ``(B) the President shall submit to Congress a final 
     strategy.
       ``(3) Performance criteria.--The Task Force shall develop 
     and submit to the Administrator performance criteria for use 
     in the provision of assistance under this section.
       ``(d) Provision of Assistance.--The Administrator may--
       ``(1) provide assistance to developing countries for use in 
     carrying out activities that are consistent with the 
     priorities established in the final strategy; and
       ``(2) establish a pilot program that provides financial 
     assistance for qualifying projects (as determined by the 
     Administrator) in accordance with--
       ``(A) the final strategy submitted under subsection 
     (c)(2)(B); and
       ``(B) any performance criteria developed by the Task Force 
     under subsection (c)(3).

     ``SEC. 717. PARAMOUNT INTEREST WAIVER.

       ``(a) In General.--If the President determines that a 
     national security emergency exists and, in light of 
     information that was not available as of the date of 
     enactment of this title, that it is in the paramount interest 
     of the United States to modify any requirement under this 
     title to minimize the effects of the emergency, the President 
     may, after opportunity for public notice and comment, 
     temporarily adjust, suspend, or waive any regulations 
     promulgated pursuant to this title to achieve that 
     minimization.
       ``(b) Consultation.--In making an emergency determination 
     under subsection (a), the President shall, to the maximum 
     extent practicable, consult with and take into account any 
     advice received from--
       ``(1) the Academy;
       ``(2) the Secretary of Energy; and
       ``(3) the Administrator.
       ``(c) Judicial Review.--An emergency determination under 
     subsection (a) shall be subject to judicial review under 
     section 307.

     ``SEC. 718. EFFECT ON OTHER LAW.

       ``Nothing in this title--
       ``(1) affects the ability of a State to take State actions 
     to further limit climate change (except that section 209 
     shall apply to standards for vehicles); and
       ``(2) except as expressly provided in this title--
       ``(A) modifies or otherwise affects any requirement of this 
     Act in effect on the day before the date of enactment of this 
     title; or
       ``(B) relieves any person of the responsibility to comply 
     with this Act.''.

     SEC. 3. RENEWABLE CONTENT OF GASOLINE.

       Section 211(o) of the Clean Air Act (as amended by section 
     1501 of the Energy Policy Act of 2005 (Public Law 109-58; 119 
     Stat. 1067)) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraph (B) as subparagraph (E); 
     and
       (B) by inserting after subparagraph (A) the following:
       ``(B) Low-carbon renewable fuel.--The term `low-carbon 
     renewable fuel' means renewable fuel the use of which, on a 
     full fuel cycle, per-mile basis, and as compared with the use 
     of gasoline, achieves a reduction in global warming pollution 
     emissions of 75 percent or more.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A)(i), by inserting ``and low-carbon 
     renewable fuel'' after ``renewable fuel''; and
       (B) in subparagraph (B)--

[[Page S610]]

       (i) in clause (iv), by striking ``(iv) Minimum applicable 
     volume.--For the purpose of subparagraph (A), the applicable 
     volume'' and inserting the following:
       ``(iv) Minimum applicable volume of renewable fuel.--For 
     the purpose of subparagraph (A), the minimum applicable 
     volume of renewable fuel''; and
       (ii) by adding at the end the following:
       ``(v) Minimum applicable volume of low-carbon renewable 
     fuel.--For the purpose of subparagraph (A), the minimum 
     applicable volume of low-carbon renewable fuel for calendar 
     year 2015 and each calendar year thereafter shall be 
     5,000,000,000 gallons.''.

     SEC. 4. ENFORCEMENT AND JUDICIAL REVIEW.

       (a) Federal Enforcement.--Section 113 of the Clean Air Act 
     (42 U.S.C. 7413) is amended--
       (1) in subsection (a)(3), by striking ``or title VI,'' and 
     inserting ``title VI, or title VII,'';
       (2) in subsection (b)(2), by striking ``or title VI,'' and 
     inserting ``title VI, or title VII,'';
       (3) in subsection (c)--
       (A) in the first sentence of paragraph (1), by striking 
     ``or title VI (relating to stratospheric ozone control),'' 
     and inserting ``title VI (relating to stratospheric ozone 
     control), or title VII (relating to global warming pollution 
     emission reductions),''; and
       (B) in the first sentence of paragraph (3), by striking 
     ``or VI'' and inserting ``VI, or VII'';
       (4) in subsection (d)(1)(B), by striking ``or VI'' and 
     inserting ``VI, or VII''; and
       (5) in the first sentence of subsection (f), by striking 
     ``or VI'' and inserting ``VI, or VII''.
       (b) Establishment of Standards.--Section 202 of the Clean 
     Air Act (42 U.S.C. 7521) is amended--
       (1) by redesignating the second subsection (f) (as added by 
     section 207(b) of Public Law 101-549 (104 Stat. 2482)) as 
     subsection (n); and
       (2) by inserting after subsection (n) (as redesignated by 
     paragraph (1)) the following:
       ``(o) Global Warming Pollution Emission Reductions.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations in accordance with 
     subsection (a) and section 707 to require manufacturers of 
     motor vehicles to meet the vehicle emission standards 
     established under subsections (a) and (b) of section 707.
       ``(2) Effective date.--The regulations promulgated under 
     paragraph (1) shall take effect with respect to motor 
     vehicles sold by a manufacturer beginning in model year 
     2016.''.
       (c) Administrative Proceedings and Judicial Review.--
     Section 307 of the Clean Air Act (42 U.S.C. 7607) is 
     amended--
       (1) in subsection (b)(1)--
       (A) in the first sentence--
       (i) by striking ``section 111,,'' and inserting ``section 
     111,''; and
       (ii) by inserting ``any emission standard or requirement 
     issued pursuant to title VII,'' after ``under section 120,''; 
     and
       (B) in the second sentence, by striking ``section 112,,'' 
     and inserting ``section 112,''; and
       (2) in subsection (d)(1)--
       (A) in subparagraph (T), by striking ``, and'' at the end;
       (B) in subparagraph (U), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(V) the promulgation or revision of any regulation under 
     title VII (relating to global warming pollution).''.

     SEC. 5. FEDERAL FLEET FUEL ECONOMY.

       Section 32917 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(3) New vehicles.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each passenger vehicle purchased, or leased for a period of 
     at least 60 consecutive days, by an Executive agency after 
     the date of enactment of this paragraph shall be as fuel-
     efficient as practicable.
       ``(B) Waiver.--In an emergency situation, an Executive 
     agency may submit to Congress a written request for a waiver 
     of the requirement under paragraph (1).''.

     SEC. 6. INTERNATIONAL NEGOTIATIONS AND TRADE RESTRICTIONS.

       It is the sense of the Senate that the United States should 
     act to reduce the health, environmental, economic, and 
     national security risks posed by global climate change, and 
     foster sustained economic growth through a new generation of 
     technologies, by--
       (1) participating in negotiations under the United Nations 
     Framework Convention on Climate Change, done at New York May 
     9, 1992, and leading efforts in other international forums, 
     with the objective of securing participation of the United 
     States in agreements that--
       (A) advance and protect the economic and national security 
     interests of the United States;
       (B) establish mitigation commitments by all countries that 
     are major emitters of global warming pollution, in accordance 
     with the principle of ``common but differentiated 
     responsibilities'';
       (C) establish flexible international mechanisms to minimize 
     the cost of efforts by participating countries; and
       (D) achieve a significant long-term reduction in global 
     warming pollution emissions; and
       (2) establishing a bipartisan Senate observation group, the 
     members of which should be designated by the Chairman and 
     Ranking Member of the Committee on Foreign Relations of the 
     Senate, and which should include the Chairman and Ranking 
     Member of the Committee on Environment and Public Works of 
     the Senate--
       (A) to monitor any international negotiations on climate 
     change; and
       (B) to ensure that the advice and consent function of the 
     Senate is exercised in a manner to facilitate timely 
     consideration of any applicable treaty submitted to the 
     Senate.

     SEC. 7. REPORT ON TRADE AND INNOVATION EFFECTS.

       Not later than 2 years after the date of enactment of this 
     Act, and annually thereafter, the Secretary of Commerce, in 
     consultation with the United States Trade Representative, the 
     Secretary of the Treasury, the Secretary of Agriculture, the 
     Secretary of Energy, and the Administrator of the 
     Environmental Protection Agency (referred to in this section 
     as the ``Secretary''), shall prepare and submit to Congress a 
     report on the trade, economic, and technology innovation 
     effects of the failure of the United States to adopt measures 
     that require or result in a reduction in total global warming 
     pollution emissions in the United States, in accordance with 
     the goals for the United States under the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.

     SEC. 8. CLIMATE CHANGE IN ENVIRONMENTAL IMPACT STATEMENTS.

       In any case in which a Federal agency prepares an 
     environmental impact statement or similar analysis required 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), the Federal agency shall consider and 
     evaluate--
       (1) the impact that the Federal action or project 
     necessitating the statement or analysis would have in terms 
     of net changes in global warming pollution emissions; and
       (2) the ways in which climate changes may affect the action 
     or project in the short term and the long term.

     SEC. 9. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE CHANGE 
                   RISKS.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Securities and Exchange Commission 
     (referred to in this section as the ``Commission'') shall 
     promulgate regulations in accordance with section 13 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78m) directing 
     each issuer of securities under that Act to inform securities 
     investors of the risks relating to--
       (1) the financial exposure of the issuer because of the net 
     global warming pollution emissions of the issuer; and
       (2) the potential economic impacts of global warming on the 
     interests of the issuer.
       (b) Uniform Format for Disclosure.--In carrying out 
     subsection (a), the Commission shall enter into an agreement 
     with the Financial Accounting Standards Board, or another 
     appropriate organization that establishes voluntary 
     standards, to develop a uniform format for disclosing to 
     securities investors information on the risks described in 
     subsection (a).
       (c) Interim Interpretive Release.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Commission shall issue an 
     interpretive release clarifying that under items 101 and 303 
     of Regulation S-K of the Commission under part 229 of title 
     17, Code of Federal Regulations (as in effect on the date of 
     enactment of this Act)--
       (A) the commitments of the United States to reduce 
     emissions of global warming pollution under the United 
     Nations Framework Convention on Climate Change, done at New 
     York on May 9, 1992, are considered to be a material effect; 
     and
       (B) global warming constitutes a known trend.
       (2) Period of effectiveness.--The interpretive release 
     issued under paragraph (1) shall remain in effect until the 
     effective date of the final regulations promulgated under 
     subsection (a).

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