[Congressional Record Volume 154, Number 91 (Wednesday, June 4, 2008)]
[Senate]
[Pages S5049-S5118]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4825. Mrs. BOXER (for herself, Mr. Warner, and Mr. Lieberman) 
proposed an amendment to the bill S. 3036, to direct the Administrator 
of the Environmental Protection Agency to establish a program to 
decrease emissions of greenhouse gases, and for other purposes; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Lieberman-
     Warner Climate Security Act of 2008''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.

                       TITLE I--IMMEDIATE ACTION

             Subtitle A--Tracking Greenhouse Gas Emissions

Sec. 101. Purpose.
Sec. 102. Federal greenhouse gas registry.
Sec. 103. Enforcement.
Sec. 104. No effect on other requirements.

             Subtitle B--Early Clean Technology Deployment

Sec. 111. Efficient Buildings Grant Program.
Sec. 112. Super-Efficient Equipment and Appliances Development (SEAD) 
              Program.
Sec. 113. Clean medium- and heavy-duty hybrid fleets program.
Sec. 114. International clean energy deployment.

                          Subtitle C--Research

Sec. 121. Research on effects of climate change on drinking water 
              utilities.
Sec. 122. Rocky Mountain Centers for Study of Coal Utilization.
Sec. 123. Sun grant center for research on compliance with Clean Air 
              Act.
Sec. 124. Study by Administrator of black carbon emissions.
Sec. 125. Study by Administrator of recycling.
Sec. 126. Retail carbon offsets.

               TITLE II--CAPPING GREENHOUSE GAS EMISSIONS

Sec. 201. Emission allowances.
Sec. 202. Compliance obligation.
Sec. 203. Penalty for noncompliance.
Sec. 204. Regulations.
Sec. 205. Report to Congress.

    TITLE III--REDUCING EMISSIONS THROUGH OFFSETS AND INTERNATIONAL 
                               ALLOWANCES

                Subtitle A--Offsets in the United States

Sec. 301. Outreach initiative on revenue enhancement for agricultural 
              producers.
Sec. 302. Establishment of a domestic offset program.
Sec. 303. Eligible offset project types.
Sec. 304. Project initiation and approval.
Sec. 305. Offset verification and issuance of allowances.
Sec. 306. Tracking of reversals for sequestration projects.
Sec. 307. Examinations.
Sec. 308. Timing and the provision of offset allowances.
Sec. 309. Offset registry.
Sec. 310. Environmental considerations.
Sec. 311. Program review.

    Subtitle B--Offsets and Emission Allowances From Other Countries

Sec. 321. Offset allowances originating from projects in other 
              countries.
Sec. 322. Emission allowances from other countries.

   Subtitle C--Agriculture and Forestry Program in the United States

Sec. 331. Allocation.
Sec. 332. Agriculture and Forestry Program.
Sec. 333. Agricultural and forestry greenhouse gas management research.

  TITLE IV--ESTABLISHING A GREENHOUSE GAS EMISSION ALLOWANCE TRADING 
                                 MARKET

                          Subtitle A--Trading

Sec. 401. Sale, exchange, and retirement of allowances.
Sec. 402. No restriction on transactions.
Sec. 403. Allowance transfer and tracking system.

              Subtitle B--Market Oversight and Enforcement

Sec. 411. Finding.
Sec. 412. Carbon market oversight and regulation.

               Subtitle C--Carbon Market Efficiency Board

Sec. 421. Establishment.
Sec. 422. Composition and administration.
Sec. 423. Duties.

              Subtitle D--Climate Change Technology Board

Sec. 431. Establishment.
Sec. 432. Purpose.
Sec. 433. Independence.
Sec. 434. Advance notification of distributions of funds.
Sec. 435. Congressional oversight of board expenditures.
Sec. 436. Requirements.
Sec. 437. Reviews and audits by Comptroller General.

                   Subtitle E--Auction on Consignment

Sec. 441. Regulations.

         TITLE V--FEDERAL PROGRAM TO PREVENT ECONOMIC HARDSHIP

                          Subtitle A--Banking

Sec. 501. Indication of calendar year.
Sec. 502. Effect of time.

                         Subtitle B--Borrowing

Sec. 511. Regulations.
Sec. 512. Term.
Sec. 513. Repayment with interest.

                    Subtitle C--Emergency Off-Ramps

Sec. 521. Emergency off-ramps triggered by Board.
Sec. 522. Cost-containment auctions.
Sec. 523. Cost-containment auction price.
Sec. 524. Regular auction reserve price.
Sec. 525. Pool of emission allowances for the cost-containment 
              auctions.
Sec. 526. Limit on the quantity of emission allowances sold at any 
              cost-containment auction.
Sec. 527. Using the proceeds of the annual cost-containment auctions.
Sec. 528. Returning emission allowances not sold at the annual cost-
              containment auctions.
Sec. 529. Discontinuing the annual cost-containment auctions.

             Subtitle D--Transition Assistance for Workers

Sec. 531. Establishment.
Sec. 532. Auctions.
Sec. 533. Deposits.
Sec. 534. Uses.
Sec. 535. Climate Change Worker Assistance Program.
Sec. 536. Workforce training and safety.

  Subtitle E--Transition Assistance for Carbon-Intensive Manufacturers

Sec. 541. Allocation.
Sec. 542. Distribution.

  Subtitle F--Transition Assistance for Fossil Fuel-Fired Electricity 
                               Generators

Sec. 551. Allocation.
Sec. 552. Distribution.

[[Page S5050]]

 Subtitle G--Transition Assistance for Refiners of Petroleum-Based Fuel

Sec. 561. Allocation.
Sec. 562. Distribution.

      Subtitle H--Transition Assistance for Natural-Gas Processors

Sec. 571. Allocation.
Sec. 572. Distribution.

            Subtitle I--Federal Program for Energy Consumers

Sec. 581. Establishment.
Sec. 582. Auction.
Sec. 583. Deposits.
Sec. 584. Disbursements from the Climate Change Consumer Assistance 
              Fund.
Sec. 585. Sense of Senate on tax initiative to protect consumers.

   TITLE VI--PARTNERSHIPS WITH STATES, LOCALITIES, AND INDIAN TRIBES

  Subtitle A--Partnerships With State Governments to Prevent Economic 
                  Hardship While Promoting Efficiency

Sec. 601. Assisting energy consumers through local distribution 
              companies.
Sec. 602. Assisting State economies that rely heavily on manufacturing 
              and coal.

Subtitle B--Partnerships With States, Localities, and Indian Tribes to 
                            Reduce Emissions

Sec. 611. Mass transit.
Sec. 612. Updating State building energy efficiency codes.
Sec. 613. Energy efficiency and conservation block grant program.
Sec. 614. State leaders in reducing emissions.

  Subtitle C--Partnerships With States and Indian Tribes to Adapt to 
                             Climate Change

Sec. 621. Allocation.
Sec. 622. Coastal impacts.
Sec. 623. Impacts on water resources and agriculture.
Sec. 624. Impacts on Alaska.
Sec. 625. Impacts on Indian tribes.

Subtitle D--Partnerships With States, Localities, and Indian Tribes to 
                       Protect Natural Resources

Sec. 631. State Wildlife Adaptation Fund.
Sec. 632. Cost-sharing.
Sec. 633. State comprehensive adaptation strategies.

                  TITLE VII--RECOGNIZING EARLY ACTION

Sec. 701. Regulations.
Sec. 702. Allocation.
Sec. 703. General distribution.
Sec. 704. Distribution to entities holding State emission allowances.
Sec. 705. Distribution to power plants that repowered pursuant to 
              consent decrees.
Sec. 706. Distribution to carbon capture and sequestration projects.

              TITLE VIII--EFFICIENCY AND RENEWABLE ENERGY

                    Subtitle A--Efficient Buildings

Sec. 801. Allocation.
Sec. 802. Efficient Buildings Allowance Program.

             Subtitle B--Efficient Equipment and Appliances

Sec. 811. Allocation.
Sec. 812. Super-Efficient Equipment and Appliances Deployment Program.

                  Subtitle C--Efficient Manufacturing

Sec. 821. Allocation.
Sec. 822. Efficient manufacturing program.

                      Subtitle D--Renewable Energy

Sec. 831. Allocation.
Sec. 832. Bonus allowances for renewable energy.

         TITLE IX--LOW-CARBON ELECTRICITY AND ADVANCED RESEARCH

        Subtitle A--Low- and Zero-Carbon Electricity Technology

Sec. 901. Definitions.
Sec. 902. Low- and Zero-Carbon Electricity Technology Fund.
Sec. 903. Auctions.
Sec. 904. Deposits.
Sec. 905. Use of funds.
Sec. 906. Financial incentives program.
Sec. 907. Requirements.
Sec. 908. Forms of awards.
Sec. 909. Selection criteria.

                     Subtitle B--Advanced Research

Sec. 911. Auctions.
Sec. 912. Deposits.
Sec. 913. Use of funds.

                        TITLE X--FUTURE OF COAL

      Subtitle A--Kick-Start for Carbon Capture and Sequestration

Sec. 1001. Carbon Capture and Sequestration Technology Fund.
Sec. 1002. Auctions.
Sec. 1003. Deposits.
Sec. 1004. Use of funds.
Sec. 1005. Kick-Start Program.

   Subtitle B--Long-Term Carbon Capture and Sequestration Incentives

Sec. 1011. Allocation.
Sec. 1012. Qualifying projects.
Sec. 1013. Distribution.
Sec. 1014. 10-Year limit.
Sec. 1015. Exhaustion of Bonus Allowance Account.

                      Subtitle C--Legal Framework

Sec. 1021. National drinking water regulations.
Sec. 1022. Assessment of geological storage capacity for carbon 
              dioxide.
Sec. 1023. Study of feasibility relating to construction and operation 
              of pipelines and geological carbon dioxide sequestration 
              activities.
Sec. 1024. Liabilities for closed geological storage sites.

                   TITLE XI--FUTURE OF TRANSPORTATION

           Subtitle A--Kick-Start for Clean Commercial Fleets

Sec. 1101. Purpose.
Sec. 1102. Allocation.
Sec. 1103. Clean medium- and heavy-duty hybrid fleets program.

               Subtitle B--Advanced Vehicle Manufacturers

Sec. 1111. Climate Change Transportation Energy Technology Fund.
Sec. 1112. Auctions.
Sec. 1113. Deposits.
Sec. 1114. Use of funds.
Sec. 1115. Manufacturer facility conversion program.

                     Subtitle C--Cellulosic Biofuel

Sec. 1121. Cellulosic biofuel program.

                  Subtitle D--Low-Carbon Fuel Standard

Sec. 1131. Findings.
Sec. 1132. Definitions.
Sec. 1133. Establishment.

        TITLE XII--FEDERAL PROGRAM TO PROTECT NATURAL RESOURCES

                          Subtitle A--Auctions

Sec. 1201. Definitions.
Sec. 1202. Auctions.

                           Subtitle B--Funds

Sec. 1211. Bureau of Land Management Emergency Firefighting Fund.
Sec. 1212. Forest Service Emergency Firefighting Fund.

           Subtitle C--National Wildlife Adaptation Strategy

Sec. 1221. Definitions.
Sec. 1222. National strategy.
Sec. 1223. Science Advisory Board.
Sec. 1224. Climate Change and Natural Resource Science Center.

            Subtitle D--National Wildlife Adaptation Program

Sec. 1231. National Wildlife Adaptation Fund.
Sec. 1232. Department of the Interior.
Sec. 1233. Forest service.
Sec. 1234. Environmental Protection Agency.
Sec. 1235. Corps of Engineers.
Sec. 1236. Department of Commerce.
Sec. 1237. National Academy of Sciences report.

TITLE XIII--INTERNATIONAL PARTNERSHIPS TO REDUCE EMISSIONS AND ADAPT TO 
                             CLIMATE CHANGE

        Subtitle A--Promoting Fairness While Reducing Emissions

Sec. 1301. Definitions.
Sec. 1302. Purposes.
Sec. 1303. International negotiations.
Sec. 1304. International Climate Change Commission.
Sec. 1305. Determinations on comparable action.
Sec. 1306. International reserve allowance program.
Sec. 1307. Adjustment of international reserve allowance requirements.

  Subtitle B--International Partnerships to Reduce Deforestation and 
                           Forest Degradation

Sec. 1311. Findings; purpose.
Sec. 1312. Capacity building program.
Sec. 1313. Forest carbon activities.
Sec. 1314. Establishing and distributing offset allowances.
Sec. 1315. Limitation on double counting.
Sec. 1316. Effect of subtitle.

     Subtitle C--International Partnerships to Deploy Clean Energy 
                               Technology

Sec. 1321. International Clean Energy Deployment.

 Subtitle D--International Partnerships to Adapt to Climate Change and 
                       Protect National Security

Sec. 1331. International Climate Change Adaptation and National 
              Security Fund.
Sec. 1332. International Climate Change Adaptation and National 
              Security Program.
Sec. 1333. Monitoring and evaluation of programs.

                    TITLE XIV--REDUCING THE DEFICIT

Sec. 1401. Deficit Reduction Fund.
Sec. 1402. Auctions.
Sec. 1403. Deposits.
Sec. 1404. Disbursements from Fund.

             TITLE XV--CAPPING HYDROFLUOROCARBON EMISSIONS

Sec. 1501. Regulations.
Sec. 1502. National recycling and emission reduction program.
Sec. 1503. Fire suppression agents.

            TITLE XVI--PERIODIC REPORTS AND RECOMMENDATIONS

Sec. 1601. National Academy of Sciences reports.
Sec. 1602. Environmental Protection Agency recommendations.
Sec. 1603. Presidential recommendations.

                       TITLE XVII--MISCELLANEOUS

          Subtitle A--Climate Security Act Administrative Fund

Sec. 1701. Establishment.

[[Page S5051]]

Sec. 1702. Auctions.
Sec. 1703. Deposits.
Sec. 1704. Disbursements from Fund.
Sec. 1705. Use of Funds.

   Subtitle B--Presidential Emergency Declarations and Proclamations

Sec. 1711. Emergency declaration.
Sec. 1712. Presidential proclamation.
Sec. 1713. Congressional rescission or modification.
Sec. 1714. Report to Federal agencies.
Sec. 1715. Termination.
Sec. 1716. Public comment.
Sec. 1717. Prohibition on delegation.

        Subtitle C--Administrative Procedure and Judicial Review

Sec. 1721. Regulatory procedures.
Sec. 1722. Enforcement.
Sec. 1723. Powers of Administrator.

                      Subtitle D--State Authority

Sec. 1731. Retention of State authority.

                      Subtitle E--Tribal Authority

Sec. 1741. Tribal authority.

                       Subtitle F--Clean Air Act

Sec. 1751. Integration.

           Subtitle G--State-Federal Interaction and Research

Sec. 1761. Study and research.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) unchecked global climate change poses a significant 
     threat to--
       (A) the national security of the United States;
       (B) the economy of the United States;
       (C) public health in the United States;
       (D) the well-being of residents of the United States;
       (E) the well-being of residents of other countries; and
       (F) the global environment;
       (2) pursuant to the United Nations Framework Convention on 
     Climate Change, done at New York on May 9, 1992, the United 
     States is committed to stabilizing greenhouse gas 
     concentrations in the atmosphere at a level that will prevent 
     dangerous interference with the climate system;
       (3) according to the Fourth Assessment Report of the 
     Intergovernmental Panel on Climate Change, stabilizing 
     greenhouse gas concentrations in the atmosphere at a level 
     that will prevent dangerous interference with the climate 
     system will require a global effort to reduce worldwide 
     anthropogenic greenhouse gas emissions by 50 to 85 percent 
     below 2000 levels by 2050;
       (4) prompt, decisive action is critical, because greenhouse 
     gases can persist in the atmosphere for more than a century;
       (5) global climate change represents a potentially 
     significant threat multiplier for instability around the 
     world and is likely to exacerbate competition and conflict 
     over agricultural, vegetative, marine, and water resources 
     and displace people, thus increasing hunger and poverty and 
     causing increased pressure on the most vulnerable developing 
     countries;
       (6) the strategic, social, political, economic, cultural, 
     and environmental consequences of global climate change are 
     likely to have disproportionate impacts on the most 
     vulnerable developing countries, which have fewer industrial 
     emissions and less economic and financial capacity to 
     respond;
       (7) less developed countries rely to a much greater degree 
     on the natural and environmental systems likely to be 
     affected by climate change for sustenance and livelihoods, as 
     well as economic growth and stability;
       (8) the consequences of global climate change, including 
     increases in poverty and destabilization of economies and 
     societies, are likely to pose a danger to the security 
     interest and economic interest of the United States;
       (9) it is in the national security and economic interest of 
     the United States to recognize, plan for, and mitigate the 
     international strategic, social, political, cultural, 
     environmental and economic effects of a changing climate and 
     to assist those in the most vulnerable developing countries 
     to increase resilience to those effects;
       (10) the ingenuity of the people of the United States will 
     allow the United States to become a leader in curbing global 
     climate change;
       (11) it is possible and desirable--
       (A) to cap greenhouse gas emissions, from the sources that 
     together account for the majority of those emissions in the 
     United States, at or below the current level in 2012;
       (B) to lower the cap each year between 2012 and 2050; and
       (C) to include in the system--
       (i) measures to contain costs;
       (ii) measures providing for periodic reviews of the system;
       (iii) an aggressive program for deploying advanced 
     technology that is developed and manufactured in the United 
     States;
       (iv) programs to assist low- and middle-income energy 
     consumers; and
       (v) programs to mitigate the impacts of that degree of 
     global climate change that now is unavoidable;
       (12) Congress will need to update the system, including the 
     emission caps, to account for new scientific information and 
     steps taken or not taken by other countries;
       (13) the Federal Government currently possesses adequate 
     data to support initial steps in the establishment of a 
     greenhouse gas emission trading market and to support initial 
     allocations of emission allowances based upon historical 
     emissions and other historical activities;
       (14) the smooth functioning of a national emission trading 
     market that is based upon a national emissions cap that comes 
     into effect at the beginning of calendar year 2012 
     necessitates the establishment, not later than January 1, 
     2011, of a Federal system for determining, recording, and 
     reporting greenhouse gas emissions at an entity-specific 
     level;
       (15) prompt and decisive domestic climate change 
     investments represent an unprecedented economic development 
     opportunity for the United States;
       (16) an environmental economic development policy should 
     seek to increase the per-capita income and protect the 
     interests of working families;
       (17) the measures in this Act are not the only measures 
     that Congress will need to enact over the decades-long 
     program established by this Act in order to avert dangerous 
     climate change and avoid the imposition of hardship on United 
     States residents;
       (18) State and local government programs, including 
     incentives, renewable portfolio standards, energy-efficiency 
     requirements, land-use policies, and other such programs 
     typically implemented at the State and local levels are 
     having and will continue to have a substantial and direct 
     beneficial effect on reducing greenhouse gas emissions;
       (19) emissions of sulfur dioxide, nitrogen oxides, and 
     mercury in the United States continue to inflict harm on the 
     public health, economy, and natural resources of the United 
     States;
       (20) fossil fuel-fired electric power generating facilities 
     emit approximately 67 percent of the total sulfur-dioxide 
     emissions, 23 percent of the total nitrogen-oxide emissions, 
     40 percent of the total carbon-dioxide emissions, and 40 
     percent of the total mercury emissions in the United States;
       (21) more than half the electricity generated in the United 
     States is generated through the burning of coal;
       (22) the reserve of coal in the United States is larger 
     than the reserve of coal in any other country;
       (23) while the reductions in emissions of sulfur dioxide, 
     nitrogen oxides, and mercury that will occur in the presence 
     of a declining cap on the greenhouse gas emissions from coal-
     fired electric power generating facilities are larger than 
     those that would occur in the absence of such a cap, new, 
     stricter Federal limits on emissions of sulfur dioxide, 
     nitrogen oxides, and mercury may still be needed to protect 
     public health; and
       (24) many existing fossil fuel-fired electric power 
     generating facilities in the United States were exempted by 
     Congress from emission limitations applicable to new and 
     modified facilities of that type based on an expectation by 
     Congress that, over time, those facilities would be retired 
     or updated with new pollution control equipment, but many of 
     the exempted facilities nevertheless continue to operate and 
     emit pollution at relatively high rates and without new 
     pollution control equipment.

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to establish the core of a Federal program that will 
     reduce United States greenhouse gas emissions substantially 
     enough to avert the catastrophic impacts of global climate 
     change; and
       (2) to accomplish that purpose while--
       (A) preserving robust growth in the United States economy;
       (B) creating new jobs in the United States;
       (C) avoiding the imposition of hardship on United States 
     residents;
       (D) reducing the dependence of the United States on 
     petroleum produced in other countries;
       (E) imposing no net cost on the Federal Government;
       (F) ensuring that the financial resources provided by the 
     program established by this Act for technology deployment are 
     predominantly invested in development, production, and 
     construction of that technology in the United States; and
       (G) encouraging complementary State and local government 
     policies and programs that promote energy efficiency and 
     technology deployment or otherwise reduce greenhouse gas 
     emissions.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Additional; additionality.--The terms ``additional'' 
     and ``additionality'' mean the extent to which reductions in 
     greenhouse gas emissions or increases in sequestration are 
     incremental to business as usual, with no greenhouse gas 
     incentives, for a project entity.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (3) Advanced technology vehicle.--The term ``advanced 
     technology vehicle'' means an electric vehicle, a fuel cell-
     powered vehicle, a hybrid or plug-in hybrid electric vehicle, 
     an advanced diesel light duty motor vehicle, or a hydrogen-
     fueled vehicle that meets--
       (A) the Tier II Bin 5 emission standard established in 
     regulations prescribed by the Administrator under section 
     202(i) of the Clean Air Act (42 U.S.C. 7521(i)), or a lower-
     numbered Bin emission standard;
       (B) any new emission standard for fine particulate matter 
     prescribed by the Administrator under that Act; and
       (C) a standard of at least 125 percent of the average base 
     year combined fuel economy, calculated on an energy-
     equivalent basis for

[[Page S5052]]

     vehicles other than advanced diesel light-duty motor 
     vehicles, for vehicles of a substantially similar nature and 
     footprint.
       (4) Allowance.--The term ``allowance'' means--
       (A) an emission allowance;
       (B) an offset allowance; or
       (C) an international allowance.
       (5) Aquatic system.--
       (A) In general.--The term ``aquatic system'' means any 
     environment that is wet for at least part of the year in 
     which plants and animals interact with the chemical and 
     physical features of the environment.
       (B) Inclusions.--The term ``aquatic system'' includes an 
     environment described in subparagraph (A) with respect to--
       (i) any body of freshwater or salt water, such as a pond or 
     ocean; and
       (ii) groundwater.
       (6) Baseline.--The term ``baseline'' means the level of 
     greenhouse gas emissions or a carbon stock scenario that 
     would occur with respect to a project or activity in the 
     absence of an offset project.
       (7) Biological sequestration; biologically sequestered.--
     The terms ``biological sequestration'' and ``biologically 
     sequestered'' mean--
       (A) the capture, separation, isolation, or removal of 
     greenhouse gases from the atmosphere by terrestrial 
     biological means, such as by growing plants; and
       (B) the storage of those greenhouse gases in plants or 
     related soils.
       (8) Board.--The term ``Board'' means the Carbon Market 
     Efficiency Board established by section 421.
       (9) Carbon content.--The term ``carbon content'' means the 
     quantity of carbon, per unit of weight or energy value, 
     contained in a fuel.
       (10) Carbon dioxide equivalent.--The term ``carbon dioxide 
     equivalent'' means, for each HFC or non-HFC greenhouse gas, 
     the quantity of the gas that the Administrator determines 
     makes the same contribution to global warming as 1 metric ton 
     of carbon dioxide.
       (11) Climate registry.--The term ``Climate Registry'' means 
     the greenhouse gas emission registry jointly established and 
     managed by more than 40 States and Indian tribes to collect 
     greenhouse gas emission data from entities to support various 
     greenhouse gas emission reporting and reduction policies for 
     the member States and Indian tribes.
       (12) Combined fuel economy.--The term ``combined fuel 
     economy'' means--
       (A) the combined city-highway miles per gallon values, as 
     reported in accordance with section 32908 of title 49, United 
     States Code; and
       (B) in the case of an electric drive vehicle with the 
     ability to recharge from an off-board source, the reported 
     mileage, as determined in a manner consistent with the 
     Society of Automotive Engineers recommended practice for that 
     configuration, or a similar practice recommended by the 
     Secretary of Energy, using a petroleum equivalence factor for 
     the off-board electricity (as defined by the Secretary of 
     Energy).
       (13) Convention.--The term ``Convention'' means the United 
     Nations Framework Convention on Climate Change, done at New 
     York on May 9, 1992, and entered into force on March 21, 
     1994.
       (14) Cost-containment auction.--The term ``cost-containment 
     auction'' means an auction of emission allowances conducted 
     by the Administrator pursuant to section 522.
       (15) Cost-containment auction price.--The term ``cost-
     containment auction price'' means the single price at which 
     emission allowances are offered for sale during a cost-
     containment auction in a particular year.
       (16) Covered entity.--The term ``covered entity'' means--
       (A) any entity that, during a 1-year period, uses more than 
     5,000 metric tons of coal in the United States;
       (B) any entity that is a natural gas processing plant in 
     the United States (other than in the State of Alaska);
       (C) any entity that produces natural gas in the State of 
     Alaska or the Federal waters of the Alaska Outer Continental 
     Shelf;
       (D) any entity that holds title to natural gas, including 
     liquefied natural gas, at the time the natural gas is 
     imported into the United States;
       (E) any entity that manufactures in the United States 
     petroleum-based liquid or gaseous fuel, petroleum coke, or 
     coal-based liquid or gaseous fuel, the combustion of which 
     will, assuming no sequestration, emit a non-HFC greenhouse 
     gas;
       (F) any entity that holds title, at the time of importation 
     into the United States, to petroleum-based liquid or gaseous 
     fuel, petroleum coke, or coal-based liquid or gaseous fuel, 
     the combustion of which will, assuming no sequestration, emit 
     a non-HFC greenhouse gas;
       (G) any entity that, during a 1-year period, manufactures 
     more than 10,000 carbon dioxide equivalents of non-HFC 
     greenhouse gas in the United States;
       (H) any entity that, during any 1-year period, holds title, 
     at the time of importation into the United States, to more 
     than 10,000 carbon dioxide equivalents of non-HFC greenhouse 
     gas; or
       (I) any entity that manufactures any 
     hydrochlorofluorocarbon in the United States.
       (17) Destruction.--The term ``destruction'' means the 
     extent to which the conversion of a greenhouse gas to another 
     gas, by thermal, chemical, or other means, reduces global 
     warming potential.
       (18) Ecological process.--The term ``ecological process'' 
     means a biological, chemical, or physical interaction between 
     and among the biotic and abiotic components of an ecosystem, 
     including--
       (A) nutrient cycling;
       (B) pollination;
       (C) a predator-prey relationship;
       (D) soil formation;
       (E) gene flow;
       (F) larval dispersal and settlement;
       (G) changes in hydrology;
       (H) decomposition; and
       (I) a disturbance regime, such as fire or flooding.
       (19) Emission allowance.--The term ``emission allowance'' 
     means an allowance established by the Administrator pursuant 
     to section 201(a).
       (20) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     performed in the United States relating to--
       (A) incorporating qualifying components into the design of 
     advanced technology vehicles; and
       (B) designing new tooling and equipment for production 
     facilities that produce in the United States qualifying 
     components or advanced technology vehicles.
       (21) Fair market value.--The term ``fair market value'' 
     means the average market price, in a particular calendar 
     year, of an emission allowance.
       (22) Fish and wildlife.--The term ``fish and wildlife'' 
     means--
       (A) any species of wild fauna, including fish and other 
     aquatic species; and
       (B) any fauna in a captive breeding program the object of 
     which is to reintroduce individuals of a depleted indigenous 
     species into a previously occupied range.
       (23) Geological sequestration; geologically sequestered.--
     The terms ``geological sequestration'' and ``geologically 
     sequestered'' mean the permanent isolation of greenhouse 
     gases, without reversal, in geological formations.
       (24) Habitat.--The term ``habitat'' means the physical, 
     chemical, and biological properties that are used by wildlife 
     (including aquatic and terrestrial plant communities) for 
     growth, reproduction, survival, food, water, cover, and 
     space, on a tract of land, in a body of water, or in an area 
     or region.
       (25) HFC.--The term ``HFC'' means a hydrofluorocarbon.
       (26) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (27) International forest carbon activities.--The term 
     ``international forest carbon activities'' means national or 
     subnational activities in countries other than the United 
     States that--
       (A) are directed at--
       (i) reducing greenhouse gas emissions from deforestation 
     and forest degradation; and
       (ii) increasing sequestration of carbon through--

       (I) restoration of forests;
       (II) restoration of degraded land that has not been 
     forested prior to restoration;
       (III) afforestation, using native species, where 
     practicable; and
       (IV) improved forest management; and

       (B) meet the eligibility requirements and quality criteria 
     promulgated under sections 1313(a) and 1314(b).
       (28) Leakage.--The term ``leakage'' means--
       (A) a significant unaccounted increase in greenhouse gas 
     emissions by a facility or entity caused by an offset 
     project, as determined by the Administrator; or
       (B) a significant unaccounted decrease in sequestration 
     that is caused by an offset project, as determined by the 
     Administrator.
       (29) Local distribution company.--The term ``local 
     distribution company'' means an entity, whether public or 
     private--
       (A) that has a legal, regulatory, or contractual obligation 
     to deliver electricity or natural gas to retail consumers; 
     and
       (B) whose rates and costs are, except in the case of a 
     registered electric cooperative, regulated by a State agency, 
     regulatory commission, municipality, or public utility 
     district, or by an Indian tribe pursuant to tribal law.
       (30) Manufacture.--
       (A) In general.--The term ``manufacture'' means to make an 
     item, substance, or material, for sale or distribution, 
     through the application of technology and industrial 
     processes.
       (B) Exclusion.--The term ``manufacture'' does not include 
     the creation of a greenhouse gas through anaerobic 
     decomposition.
       (31) NAFTA country.--The term ``NAFTA country'' means a 
     country that is a party to the North American Free Trade 
     Agreement.
       (32) Natural gas processing plant.--
       (A) In general.--The term ``natural gas processing plant'' 
     means a facility that is designed--
       (i) to separate natural-gas liquids from natural gas; or
       (ii) to fractionate mixed natural-gas liquids into natural-
     gas products.
       (B) Exclusion.--The term ``natural gas processing plant'' 
     does not include a wellhead or pipeline facility that removes 
     natural-gas liquid condensate for operational or safety 
     purposes.
       (33) Non-HFC greenhouse gas.--The term ``non-HFC greenhouse 
     gas'' means any of--
       (A) carbon dioxide;

[[Page S5053]]

       (B) methane;
       (C) nitrous oxide;
       (D) sulfur hexafluoride; or
       (E) a perfluorocarbon.
       (34) Offset allowance.--The term ``offset allowance'' means 
     an allowance allocated by the Administrator pursuant to 
     subtitle A or subtitle B of title III, or subtitle B of title 
     XIII.
       (35) Offset project.--The term ``offset project'' means a 
     project that reduces emissions or increases terrestrial 
     sequestration of greenhouse gases from sources or sinks that 
     would otherwise not have been covered under the limitation on 
     the emission of greenhouse gases under this Act.
       (36) Plant.--The term ``plant'' means any species of wild 
     flora.
       (37) Project developer.--The term ``project developer'' 
     means an individual or entity implementing an offset project.
       (38) Qualifying component.--The term ``qualifying 
     component'' means a component that the Secretary of Energy 
     determines to be--
       (A) specially designed for advanced technology vehicles;
       (B) installed for the purpose of meeting the performance 
     requirements of advanced technology vehicles; and
       (C) manufactured in the United States.
       (39) Regional greenhouse gas initiative.--The term 
     ``Regional Greenhouse Gas Initiative'' means the cooperative 
     effort by, as of the date of enactment of this Act, the 
     States of Connecticut, Delaware, Maine, Maryland, New 
     Hampshire, New Jersey, New York, and Vermont, to reduce 
     carbon dioxide emissions.
       (40) Registry.--The term ``Registry'' means the Federal 
     greenhouse gas registry established under section 102(a).
       (41) Regular auction.--The term ``regular auction'' means 
     an auction of emission allowances conducted by the 
     Administrator under this Act that is not a cost-containment 
     auction.
       (42) Regular auction reserve price.--The term ``regular 
     auction reserve price'' means the price below which an 
     emission allowance may not be sold through a regular auction.
       (43) Retail rate for distribution service.--
       (A) In general.--The term ``retail rate for distribution 
     service'' means the rate that a local distribution company 
     charges for the use of the system of the local distribution 
     company.
       (B) Exclusion.--The term ``retail rate for distribution 
     service'' does not include any energy component of the rate.
       (44) Retire an allowance.--The term ``retire an allowance'' 
     means to disqualify an allowance for any subsequent use, 
     regardless of whether the use is a sale, exchange, or 
     submission of the allowance in satisfaction of a compliance 
     obligation.
       (45) Reversal.--The term ``reversal'' means an intentional 
     or unintentional loss of sequestered carbon dioxide to the 
     atmosphere in significant quantities, as determined by the 
     Administrator, in order to accomplish the purposes of the Act 
     in an effective and efficient manner.
       (46) Rural electric cooperative.--The term ``rural electric 
     cooperative'' means a cooperatively owned association that--
       (A) was in existence as of October 18, 2007; and
       (B) is eligible to receive loans under section 4 of the 
     Rural Electrification Act of 1936 (7 U.S.C. 904).
       (47) Sequestered and sequestration.--The terms 
     ``sequestered'' and ``sequestration'' mean biological or 
     geological sequestration.
       (48) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (49) State regulatory authority.--The term ``State 
     regulatory authority'' means any State agency that has 
     ratemaking authority with respect to the retail rate for 
     electricity or natural-gas distribution service.
       (50) Terrestrial ecosystem.--The term ``terrestrial 
     ecosystem'' means a land-occurring community of organisms, 
     together with their environment.
       (51) Tribal regulatory authority.--The term ``tribal 
     regulatory authority'' means any Indian tribe that has been 
     granted statutory authority in accordance with section 301(d) 
     of the Clean Air Act (42 U.S.C. 7601(d)).

                       TITLE I--IMMEDIATE ACTION

             Subtitle A--Tracking Greenhouse Gas Emissions

     SEC. 101. PURPOSE.

       The purpose of this title is to establish a Federal 
     greenhouse gas registry that--
       (1) is national in scope;
       (2) is complete, consistent, transparent, accurate, 
     precise, and reliable; and
       (3) provides the data necessary to implement the emission 
     limitations and emission trading market established pursuant 
     to this Act.

     SEC. 102. FEDERAL GREENHOUSE GAS REGISTRY.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a Federal greenhouse gas registry 
     that--
       (1) achieves the purposes described in section 101; and
       (2) requires emission reporting to begin for calendar year 
     2011.
       (b) Climate Registry.--The notice of final agency action 
     promulgating regulations under subsection (a) shall explain 
     each consequential inconsistency between those regulations 
     and the provisions of the Climate Registry.
       (c) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall--
       (1) ensure the completeness, consistency, transparency, 
     accuracy, precision, and reliability of data on greenhouse 
     gas emissions in the United States and on the production and 
     manufacture in the United States, and importation into the 
     United States, of fuels and other products the uses of which 
     result in the emission of greenhouse gas;
       (2) exceed or conform to the best practices from the most 
     recent Federal, State, tribal, and international protocols 
     for the measurement, accounting, reporting, and verification 
     of greenhouse gas emissions, including, in particular, the 
     Climate Registry, taking into account the latest scientific 
     research;
       (3) require that, wherever feasible, submitted data are 
     monitored using monitoring systems for fuel flow or 
     emissions, such as continuous emission monitoring systems or 
     systems of equivalent precision, reliability, accessibility, 
     and timeliness;
       (4) require that, if an entity is already using a 
     continuous emission monitoring system to monitor mass 
     emissions of a greenhouse gas under a provision of law in 
     effect as of the date of enactment of this Act that is 
     consistent with this Act, that system be used to monitor 
     submitted data;
       (5) include methods for avoiding the double-counting of 
     greenhouse gas emissions;
       (6) include protocols to prevent entities from avoiding 
     reporting requirements;
       (7) include protocols for verification of submitted data;
       (8) establish a means for electronic reporting;
       (9) ensure verification and auditing of submitted data;
       (10) establish consistent policies for calculating carbon 
     content and greenhouse gas emissions for each type of fossil 
     fuel reported;
       (11) provide for public dissemination on the Internet of 
     all verified data that are not--
       (A) vital to the national security of the United States, as 
     determined by the President; or
       (B) confidential business information that cannot be 
     derived from information that is otherwise publicly available 
     and that would cause significant calculable competitive harm 
     if published (except that information relating to greenhouse 
     gas emissions shall not be considered to be confidential 
     business information);
       (12) prescribe methods by which the Administrator shall, in 
     cases in which satisfactory data are not submitted to the 
     Administrator for any period of time--
       (A) replace the missing data with a conservative estimate 
     of the highest emission levels that may have occurred during 
     the period for which data are missing, in order to ensure 
     emissions are not under-reported and to create a strong 
     incentive for meeting data monitoring and reporting 
     requirements; and
       (B) take appropriate enforcement action; and
       (13) ensure that no offset allowance distributed to the 
     government of a foreign country pursuant to subtitle B of 
     title XIII is transferred both into the greenhouse gas 
     emission trading market established by this Act and into 
     another such market.

     SEC. 103. ENFORCEMENT.

       (a) Civil Actions.--The Administrator may bring a civil 
     action in a United States district court against any entity 
     that fails to comply with any requirement promulgated 
     pursuant to section 102.
       (b) Penalty.--Any person that has violated or is violating 
     regulations promulgated pursuant to section 102 shall be 
     subject to a civil penalty of not more than $25,000 per day 
     for each violation.
       (c) Penalty Adjustment.--For the fiscal year in which this 
     Act is enacted and each fiscal year thereafter, the 
     Administrator shall, by regulation, adjust the penalty 
     specified in subsection (b) to reflect changes for the 12-
     month period ending 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.

     SEC. 104. NO EFFECT ON OTHER REQUIREMENTS.

       Nothing in this subtitle affects any requirement in effect 
     as of the date of enactment of this Act relating to the 
     reporting of--
       (1) fossil-fuel production, refining, importation, 
     exportation, or consumption data;
       (2) greenhouse gas emission data; or
       (3) other relevant data.

             Subtitle B--Early Clean Technology Deployment

     SEC. 111. EFFICIENT BUILDINGS GRANT PROGRAM.

       (a) In General.--The Administrator shall establish and 
     carry out a program, to be known as the ``Efficient Buildings 
     Grant Program'', under which the Administrator shall provide 
     grants to owners of buildings in the United States for use 
     in--
       (1) constructing new, highly-efficient buildings in the 
     United States; and
       (2) increasing the efficiency of existing buildings in the 
     United States.
       (b) Requirements.--The Administrator shall provide grants 
     under this section to owners of buildings in the United 
     States based on the extent to which building projects 
     proposed to be carried out using

[[Page S5054]]

     funds from the grants would result in verifiable, additional, 
     and enforceable reductions in direct and indirect greenhouse 
     gas emissions--
       (1) in new or renovated buildings that demonstrate 
     exemplary performance by achieving a minimum score of 75 on 
     the benchmarking tool of the Energy Star program established 
     by section 324A of the Energy Policy and Conservation Act (42 
     U.S.C. 6294a), or an equivalent score on an established 
     energy performance benchmarking metric as determined under 
     the regulations promulgated pursuant to subsection (d); and
       (2) in retrofitted existing buildings that demonstrate 
     substantial improvement in the score or rating on that 
     benchmarking tool by a minimum of 30 points, or an equivalent 
     improvement using an established performance benchmarking 
     metric as determined under the regulations promulgated 
     pursuant to subsection (d).
       (c) Priority.--In providing grants under this section, the 
     Administrator shall give priority to projects that--
       (1) are completed by building owners with a proven track 
     record of building efficiency performance; or
       (2) result in measurable greenhouse gas reduction benefits 
     not encompassed within the metrics of the Energy Star program 
     referred to in subsection (b)(1).
       (d) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations to implement this section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (f) Termination of Authority.--The program established 
     under this section, and all authority provided under this 
     section, shall terminate on the date on which the Efficient 
     Buildings Allowance Program is established under section 802.

     SEC. 112. SUPER-EFFICIENT EQUIPMENT AND APPLIANCES 
                   DEVELOPMENT (SEAD) PROGRAM.

       (a) In General.--The Administrator shall establish and 
     carry out a program, to be known as the ``Super-Efficient 
     Equipment and Appliances Development Program'' or ``SEAD 
     Program'', under which the Administrator shall provide grants 
     to retailers and distributors in the United States for use in 
     increasing sales of high-efficiency building equipment, high-
     efficiency consumer electronics, and high-efficiency 
     household appliances through marketing strategies such as 
     consumer rebates, with the goals of--
       (1) minimizing lifecycle costs for consumers; and
       (2) maximizing public benefit.
       (b) Amount of Individual Grants.--The amount of each grant 
     for each type of product shall be determined by the 
     Administrator, in consultation with the Secretary of Energy, 
     State and utility efficiency program administrators, and 
     national laboratories.
       (c) Reporting.--Each retailer and distributor participating 
     in the program under this section shall be required to report 
     to the Administrator, on a confidential basis for the purpose 
     of program design--
       (1) the number of products of the retailer or distributer 
     sold within each product type; and
       (2) wholesale purchase-price data relating to those sales.
       (d) Cost-Effectiveness Requirement.--
       (1) Definitions.--In this subsection:
       (A) Cost-effectiveness.--The term ``cost-effectiveness'' 
     means a value equal to the product obtained by multiplying--
       (i) the net number of highly-efficient pieces of equipment, 
     electronics, and appliances sold by a retailer or distributor 
     in a calendar year; by
       (ii) the savings during the projected useful life, not to 
     exceed 10 years, obtained by using the pieces of equipment, 
     electronics, and appliances (including the impact of any 
     documented measures to retire low-performing devices at the 
     time of purchase of highly-efficient substitutes).
       (B) Savings.--The term ``savings'' means the megawatt-hours 
     of electricity, or million British thermal units of other 
     fuels, that are saved by the use of a product, as compared to 
     the projected energy consumption that would result from the 
     use of another product, based on the efficiency performance 
     of displaced new product sales.
       (2) Requirement.--Cost-effectiveness shall be a top 
     priority of the Administrator in providing grants under this 
     section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (f) Termination of Authority.--The program established 
     under this section, and all authority provided under this 
     section, shall terminate on the date on which the Super-
     Efficient Equipment and Appliances Deployment Program is 
     established under section 812.

     SEC. 113. CLEAN MEDIUM- AND HEAVY-DUTY HYBRID FLEETS PROGRAM.

       (a) In General.--The Administrator shall by regulation 
     establish and carry out a program under which the 
     Administrator shall provide grants to entities in the United 
     States, for the purchase of advanced medium- and heavy-duty 
     hybrid commercial vehicles, based on demonstrated increases 
     in fuel efficiency of those commercial vehicles.
       (b) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall provide that--
       (1) only a purchaser of a commercial vehicle weighing at 
     least 8,500 pounds shall be eligible for receipt of emission 
     allowances under the program;
       (2) the purchaser of a qualifying vehicle shall have 
     certainty, at the time of purchase of a qualifying vehicle, 
     of--
       (A) the amount of the grant to be provided; and
       (B) the time at which grant funds shall be available;
       (3) the amount of a grant provided under this section shall 
     increase in direct proportion to the fuel efficiency of a 
     commercial vehicle to be purchased using funds from the 
     grant;
       (4) the amounts made available to provide grants under this 
     section shall be allocated by the Administrator for at least 
     3 classes of vehicle weight, to ensure--
       (A) adequate availability of grant funds for different 
     categories of commercial vehicles; and
       (B) that the amount of a grant provided for the purchase of 
     a heavier, more expensive vehicle is proportional to the 
     amount of a grant provided for the purchase of a lighter, 
     less expensive vehicle; and
       (5) the amount provided per grant shall decrease over time 
     to encourage early purchases of qualifying commercial 
     vehicles.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (d) Termination of Authority.--The program established 
     under this section, and all authority provided under this 
     section, shall terminate on the date on which the clean 
     medium- and heavy-duty hybrid fleets program is established 
     under section 1103.

     SEC. 114. INTERNATIONAL CLEAN ENERGY DEPLOYMENT.

       (a) Purpose.--The purpose of this section is to promote and 
     leverage private financing for the development and 
     international deployment of technologies that will contribute 
     to sustainable economic growth and the stabilization of 
     greenhouse gas concentrations in the atmosphere at a level 
     that will prevent dangerous anthropogenic interference with 
     the climate system.
       (b) Definitions.--In this section:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) in the Senate--
       (i) the Committee on Foreign Relations;
       (ii) the Committee on Finance;
       (iii) the Committee on Energy and Natural Resources;
       (iv) the Committee on Environment and Public Works; and
       (v) the Committee on Appropriations; and
       (B) in the House of Representatives--
       (i) the Committee on Foreign Affairs;
       (ii) the Committee on Ways and Means;
       (iii) the Committee on Energy and Commerce;
       (iv) the Committee on Natural Resources; and
       (v) the Committee on Appropriations.
       (2) Board.--The term ``Board'' means the International 
     Clean Energy Deployment Board established under subsection 
     (c)(1).
       (3) Eligible country.--The term ``eligible country'' means 
     a foreign country that, as determined by the President--
       (A) is not a member of the Organization for Economic 
     Cooperation and Development; and
       (B)(i) has made a binding commitment, pursuant to an 
     international agreement to which the United States is a 
     party, to carry out actions to produce measurable, 
     reportable, and verifiable greenhouse gas emission 
     mitigations; or
       (ii) as certified by the Board to the appropriate 
     committees of Congress, has in force binding national 
     policies and measures that are capable of producing 
     measurable, reportable, and verifiable greenhouse gas 
     emission mitigations.
       (4) Qualified entity.--The term ``qualified entity'' 
     means--
       (A) the national government of an eligible country;
       (B) a regional or local governmental unit of an eligible 
     country; and
       (C) a nongovernmental organization or a private entity 
     located or operating in an eligible country.
       (c) International Clean Energy Deployment Board.--
       (1) Establishment.--Not later than 90 days after the date 
     of enactment of this Act, the President shall establish a 
     board, to be known as the `` International Clean Development 
     Technology Board''.
       (2) Composition.--The Board shall be composed of--
       (A) the Secretary of State, who shall serve as Chairperson 
     of the Board;
       (B) the Secretary of the Treasury;
       (C) the Secretary of Energy;
       (D) the Secretary of Commerce;
       (E) the Administrator;
       (F) the Administrator of the United States Agency for 
     International Development;
       (G) the United States Trade Representative; and
       (H) such other officials as the President determines to be 
     appropriate.
       (3) Duties.--The Board shall administer the Fund in a 
     manner that ensures that amounts made available to carry out 
     the program--
       (A) are used in a manner that best promotes the 
     participation of, and investments by, the private sector;
       (B) are allocated in a manner consistent with commitments 
     by the United States

[[Page S5055]]

     under international climate change agreements; and
       (C) are expended to achieve the greatest greenhouse gas 
     emission mitigation with the lowest practicable cost, 
     consistent with subparagraphs (A) and (B).
       (4) Assistance.--The Board shall provide assistance under 
     this section to qualified entities to support the purposes of 
     this section.
       (5) Form of assistance.--In accordance with international 
     the Federal and international intellectual property law, 
     assistance under this subsection shall be provided--
       (A) as direct assistance in the form of grants, 
     congressional loans, cooperative agreements, contracts, 
     insurance, or loan guarantees to or with qualified entities;
       (B) as indirect assistance to qualified entities through--
       (i) funding for international clean technology funds 
     supported by multilateral institutions;
       (ii) support from development and export promotion 
     assistance programs of the Federal Government; or
       (iii) support from international technology programs of the 
     Department of Energy; or
       (C) in such other forms as the Board determines to be 
     appropriate.
       (6) Use of assistance.--Assistance provided under this 
     subsection shall be used for 1 or more of the following 
     purposes:
       (A) Funding for capacity building programs, including--
       (i) developing and implementing methodologies and programs 
     for measuring and quantifying greenhouse gas emissions and 
     verifying emission reductions;
       (ii) assessing technology and policy options for greenhouse 
     gas emission mitigations; and
       (iii) providing other forms of technical assistance to 
     facilitate the qualification for, and receipt of, program 
     funding under this section.
       (B) Funding for technology programs to mitigate greenhouse 
     gas emissions through Federal or State engagement in 
     cooperative research and development activities with eligible 
     countries, including on the subject of--
       (i) transportation technologies;
       (ii) coal, including low-rank coal;
       (iii) energy efficiency programs;
       (iv) renewable energy sources; and
       (v) industrial and building activities.
       (7) Selection of projects.--
       (A) In general.--The Board shall be responsible for 
     selecting qualified entities to receive assistance under this 
     subsection.
       (B) Notification.--The Board shall not provide assistance 
     under this subsection until the date that is 30 days after 
     the date on which the Board submits to the appropriate 
     committees of Congress a notice of the proposed assistance, 
     including--
       (i) in the case of a capacity building program--

       (I) a description of the capacity building program to be 
     funded using the assistance;
       (II) the terms and conditions of the provision of 
     assistance; and
       (III) a description of how the capacity building program 
     will contribute to achieving the purposes of this section; or

       (ii) in the case of a technology program--

       (I) a description of the technology program to be funded 
     using the assistance;
       (II) the terms and conditions of the provision of 
     assistance;
       (III) an estimate of the additional quantity of greenhouse 
     gas emission reductions expected due to the use of the 
     assistance; and
       (IV) a description of how the technology program will 
     contribute to achieving the purposes of this section.

       (d) Reports.--
       (1) Initial report.--Not later than 270 days after the date 
     of enactment of this Act, the President shall submit to the 
     appropriate committees of Congress a report describing the 
     criteria to be used to determine whether a country is an 
     eligible country.
       (2) Subsequent reports.--Not later than 1 year after the 
     date of enactment of this Act, and annually thereafter, the 
     President shall submit to the appropriate committees of 
     Congress a report describing the assistance provided under 
     this section by the Board during the preceding calendar year, 
     including--
       (A) the aggregate amount of assistance provided for 
     capacity building initiatives and technology deployment 
     initiatives; and
       (B) a description of each initiative funded using the 
     assistance, including--
       (i) the amount of assistance provided;
       (ii) the terms and conditions of provision of the 
     assistance; and
       (iii) the anticipated reductions in greenhouse gas 
     emissions to be achieved as a result of technology deployment 
     initiatives.
       (e) Effect of Section.--Nothing in this section alters or 
     affects any authority of the Secretary of State under--
       (1) title V of the Foreign Relations Authorization Act, 
     Fiscal Year 1979 (22 U.S.C. 2656a et seq.); or
       (2) section 622(c) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2382(c)).
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,000,000,000 
     for the period of fiscal years 2009 through 2011.
       (g) Termination of Authority.--The program established 
     under this section, and all authority provided under this 
     section, shall terminate on the date on which the 
     International Clean Energy Technology Program is established 
     under section 1321.

                          Subtitle C--Research

     SEC. 121. RESEARCH ON EFFECTS OF CLIMATE CHANGE ON DRINKING 
                   WATER UTILITIES.

       (a) In General.--The Administrator, in cooperation with the 
     Secretary of Commerce, the Secretary of Energy, and the 
     Secretary of the Interior, shall establish and carry out a 
     program of directed and applied research, to be conducted 
     through a nonprofit water research foundation and sponsored 
     by drinking water utilities, to assist suppliers of drinking 
     water in adapting to the effects of climate change.
       (b) Research Areas.--The research conducted under 
     subsection (a) shall include research relating to--
       (1) the impacts of climate change on, and solutions to 
     problems involving, water quality, including research--
       (A) to address probable impacts on raw water quality 
     resulting from--
       (i) erosion and turbidity from extreme precipitation 
     events;
       (ii) watershed vegetation changes; and
       (iii) increasing ranges of pathogens, algae, and nuisance 
     organisms resulting from warmer temperatures; and
       (B) relating to the mitigation of increased damage to 
     watersheds and water quality by evaluating extreme events, 
     such as wildfires and hurricanes, to learn and develop 
     management approaches to mitigate--
       (i) permanent watershed damage;
       (ii) quality and yield impacts on source waters; and
       (iii) increased costs of water treatment;
       (2) impacts on groundwater supplies from carbon 
     sequestration, including research to evaluate potential water 
     quality consequences of carbon sequestration in various 
     regional aquifers, soil conditions, and mineral deposits;
       (3) the impacts of climate change on, and solutions to 
     problems involving, water quantity, including research--
       (A) to evaluate climate change impacts on water resources 
     throughout hydrological basins of the United States;
       (B) to improve the accuracy and resolution of climate 
     change models at the regional level;
       (C) to identify and explore options for increasing 
     conjunctive use of aboveground and underground storage of 
     water; and
       (D) to optimize the operation of existing and new 
     reservoirs in diminished and erratic periods of precipitation 
     and runoff;
       (4) infrastructure impacts and solutions for water 
     treatment facilities and underground pipelines, including 
     research--
       (A) to evaluate and mitigate the impacts of sea level rise 
     on--
       (i) near-shore facilities;
       (ii) soil drying and subsidence; and
       (iii) reduced flows in water and wastewater pipelines; and
       (B) relating to methods of increasing the resilience of 
     existing infrastructure and development of new design 
     standards for future infrastructure;
       (5) desalination, water reuse, and alternative supply 
     technologies, including research--
       (A) to improve and optimize existing membrane technologies, 
     and to identify and develop breakthrough technologies, to 
     enable the use of seawater, brackish groundwater, treated 
     wastewater, and other impaired sources;
       (B) relating to new sources of water through cost-effective 
     water treatment practices in recycling and desalination; and
       (C) to improve technologies for use in--
       (i) managing and minimizing the volume of desalination and 
     reuse concentrate streams; and
       (ii) minimizing the environmental impacts of seawater 
     intake at desalination facilities;
       (6) efficiency and the minimization of greenhouse gas 
     emissions, including research--
       (A) relating to optimizing the efficiency of water supply 
     and improving water efficiency in energy production; and
       (B) to identify and develop renewable, carbon-neutral 
     options for the water supply industry;
       (7) regional and hydrological basin cooperative water 
     management solutions, including research into--
       (A) institutional mechanisms for greater regional 
     cooperation and use of water exchanges, banking, and 
     transfers; and
       (B) the economic benefits of sharing risks of shortage 
     across wider areas;
       (8) utility management, decision support systems, and water 
     management models, including research--
       (A) relating to improved decision support systems and 
     modeling tools for use by water utility managers to assist 
     with increased water supply uncertainty and adaptation 
     strategies posed by climate change;
       (B) to provide financial tools, including new rate 
     structures, to manage financial resources and investments, 
     due to the fact that increased conservation practices might 
     diminish revenue and increase investments in infrastructure; 
     and
       (C) to develop improved systems and models for use in 
     evaluating--
       (i) successful alternative methods for conservation and 
     demand management; and
       (ii) climate change impacts on groundwater resources;
       (9) reducing greenhouse gas emissions and demand 
     management, including research--
       (A) to improve efficiency in water collection, production, 
     transmission, treatment, distribution, and disposal to 
     provide more sustainability; and
       (B) relating to means of assisting drinking water utilities 
     in reducing the production of

[[Page S5056]]

     greenhouse gas emissions in the collection, production, 
     transmission, treatment, distribution, and disposal of 
     drinking water;
       (10) water conservation and demand management, including 
     research--
       (A) to develop strategic approaches to water demand 
     management that offer the lowest-cost, noninfrastructural 
     options to serve growing populations or manage declining 
     supplies, primarily through--
       (i) efficiencies in water use and reallocation of saved 
     water;
       (ii) demand management tools;
       (iii) economic incentives; and
       (iv) water-saving technologies; and
       (B) relating to efficiencies in water management through 
     integrated water resource management that incorporates--
       (i) supply-side and demand-side processes;
       (ii) continuous adaptive management; and
       (iii) the inclusion of stakeholders in decisionmaking 
     processes; and
       (11) communications, education, and public acceptance, 
     including research--
       (A) relating to improved strategies and approaches for 
     communicating with customers, decisionmakers, and other 
     stakeholders about the implications of climate change 
     regarding water supply; and
       (B) to develop effective communication approaches to 
     achieve--
       (i) public acceptance of alternative water supplies and new 
     policies and practices, including conservation and demand 
     management; and
       (ii) public recognition and acceptance of increased costs.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 122. ROCKY MOUNTAIN CENTERS FOR STUDY OF COAL 
                   UTILIZATION.

       (a) Designation.--The University of Wyoming and Montana 
     State University shall be known and designated as the ``Rocky 
     Mountain Centers of the Study of Coal Utilization''.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 123. SUN GRANT CENTER FOR RESEARCH ON COMPLIANCE WITH 
                   CLEAN AIR ACT.

       (a) Designation.--Each sun grant center designated under 
     section 7526 of the Food, Conservation, and Energy Act of 
     2008 is designated as a research institution of the 
     Environmental Protection Agency for the purpose of conducting 
     studies regarding the effects of biofuels and biomass on 
     national and regional compliance with the Clean Air Act (42 
     U.S.C. 7401 et seq).
       (b) Funding.--The Administrator shall provide to the sun 
     grant centers such funds as the Administrator determines to 
     be necessary to carry out the studies described in subsection 
     (a).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 124. STUDY BY ADMINISTRATOR OF BLACK CARBON EMISSIONS.

       (a) Study.--The Administrator shall conduct a study of 
     black carbon emissions, including--
       (1) an identification of--
       (A) the latest scientific data relevant to the climate-
     related impacts of black carbon emissions from diesel engines 
     and other sources;
       (B)(i) the major sources of black carbon emissions in the 
     United States and worldwide; and
       (ii) an estimate of black carbon emissions from those 
     sources;
       (C) the diesel and other direct emission control 
     technologies, operations, or strategies to remove or reduce 
     emissions of black carbon, including estimates of the costs 
     and effectiveness of the measures; and
       (D) the entire lifecycle and net climate impacts of 
     installation of diesel particulate filters on existing heavy-
     duty diesel engines; and
       (2) recommendations of the Administrator regarding--
       (A) areas of focus for additional research for 
     technologies, operations, and strategies with the highest 
     potential to reduce emissions of black carbon; and
       (B) actions the Federal Government could carry out to 
     encourage or require additional black carbon emission 
     reductions.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report describing the results of the study.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 125. STUDY BY ADMINISTRATOR OF RECYCLING.

       (a) Study.--The Administrator shall conduct a study of the 
     lifecycle greenhouse gas emission reductions and other 
     benefits and issues associated with--
       (1) recycling scrap metal, including end-of-life vehicles, 
     recovered paper and other fiber, scrap electronics, scrap 
     glass, scrap plastics, scrap tires and other rubber, and 
     scrap textiles;
       (2) using recycled materials in manufactured products;
       (3) designing and manufacturing products that increase 
     recyclable output;
       (4) eliminating or reducing the use of substances and 
     materials in products that decrease recyclable output; and
       (5) establishing a standardized system for lifecycle 
     greenhouse gas emission reduction measurement and 
     certification for the manufactured products and scrap 
     recycling sectors, including the potential options for the 
     structure and operation of such a system.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report describing the results of the study.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 126. RETAIL CARBON OFFSETS.

       (a) Definition of Retail Carbon Offset.--In this section, 
     the term ``retail carbon offset'' means any carbon credit or 
     carbon offset that cannot be used in satisfaction of any 
     mandatory compliance obligation under a regulatory system for 
     reducing greenhouse gas emissions.
       (b) Qualifying Levels and Requirements.--Not later than 
     January 1, 2009, the Administrator shall establish new 
     qualifying levels and requirements for Energy Star 
     certification for retail carbon offsets, effective beginning 
     January 1, 2010.

               TITLE II--CAPPING GREENHOUSE GAS EMISSIONS

     SEC. 201. EMISSION ALLOWANCES.

       (a) Establishment.--Not later than 60 days after the date 
     of enactment of this Act, the Administrator shall establish a 
     quantity of emission allowances for each of calendar years 
     2012 through 2050, as follows:


------------------------------------------------------------------------
                                                          Quantity of
                                                            emission
                    Calendar Year                        allowances (in
                                                           millions)
------------------------------------------------------------------------
2012.................................................              5,775
2013.................................................              5,669
2014.................................................              5,562
2015.................................................              5,456
2016.................................................              5,349
2017.................................................              5,243
2018.................................................              5,137
2019.................................................              5,030
2020.................................................              4,924
2021.................................................              4,817
2022.................................................              4,711
2023.................................................              4,605
2024.................................................              4,498
2025.................................................              4,392
2026.................................................              4,286
2027.................................................              4,179
2028.................................................              4,073
2029.................................................              3,966
2030.................................................              3,860
2031.................................................              3,754
2032.................................................              3,647
2033.................................................              3,541
2034.................................................              3,435
2035.................................................              3,328
2036.................................................              3,222
2037.................................................              3,115
2038.................................................              3,009
2039.................................................              2,903
2040.................................................              2,796
2041.................................................              2,690
2042.................................................              2,584
2043.................................................              2,477
2044.................................................              2,371
2045.................................................              2,264
2046.................................................              2,158
2047.................................................              2,052
2048.................................................              1,945
2049.................................................              1,839
2050.................................................             1,732.
------------------------------------------------------------------------

       (b) Identification Numbers.--The Administrator shall assign 
     to each emission allowance established under subsection (a) a 
     unique identification number that includes the calendar year 
     for which that emission allowance was established.
       (c) Legal Status.--
       (1) In general.--An emission allowance shall not be a 
     property right.
       (2) Termination or limitation.--Nothing in this Act or any 
     other provision of law shall limit the authority of the 
     Administrator to terminate or limit an emission allowance.
       (3) Other provisions unaffected.--Nothing in this Act 
     relating to emission allowances shall affect the application 
     of, or compliance with, any other provision of law to or by a 
     covered entity.

     SEC. 202. COMPLIANCE OBLIGATION.

       (a) In General.--Not later than 90 days after the end of 
     each of calendar years 2012 through 2050, the owner or 
     operator of a covered entity shall submit to the 
     Administrator an emission allowance or an offset allowance 
     for each carbon dioxide equivalent of--
       (1) non-HFC greenhouse gas that was emitted by that covered 
     entity in the United States during the preceding calendar 
     year through the use of coal;
       (2) non-HFC greenhouse gas that will be emitted through the 
     use of petroleum-based liquid or gaseous fuel, petroleum 
     coke, or coal-based liquid or gaseous fuel that was, during 
     the preceding calendar year, manufactured by that covered 
     entity in the United States or imported into the United 
     States by that covered entity;
       (3) non-HFC greenhouse gas, that was, during the preceding 
     calendar year, manufactured by that covered entity in the 
     United States or imported into the United States by

[[Page S5057]]

     that covered entity, in each case in which the non-HFC 
     greenhouse gas is not itself a petroleum- or coal-based 
     gaseous fuel or natural gas;
       (4) each HFC that was, during the preceding calendar year, 
     emitted as a byproduct of hydrochlorofluorocarbon manufacture 
     in the United States by that covered entity; and
       (5) non-HFC greenhouse gas that will be emitted--
       (A) through the use of natural gas that was, during the 
     preceding calendar year, processed in the United States by 
     that covered entity, imported into the United States by that 
     covered entity, or produced in the State of Alaska or the 
     Federal waters of the outer Continental Shelf off the coast 
     of that State by that covered entity and not reinjected into 
     the field; or
       (B) through the use of natural gas liquids that were, 
     during the preceding year, processed in the United States by 
     that covered entity or imported into the United States by 
     that covered entity.
       (b) Assumption.--
       (1) In general.--Subject to paragraph (2), for the purpose 
     of calculating any submission requirement under subsection 
     (a), the Administrator shall assume that no sequestration, 
     destruction, or retention of greenhouse gas has occurred or 
     will occur.
       (2) Exception.--Notwithstanding paragraph (1), neither 
     paragraph (2) nor paragraph (5) of subsection (a) requires a 
     covered entity to submit emission allowances or offset 
     allowances for petroleum- or coal-based liquid or gaseous 
     fuel imported into the United States, or for natural gas or 
     natural gas liquids imported into the United States, if the 
     fuel or liquid the substance was imported solely for use as a 
     feedstock, and to the extent that no greenhouse gas is 
     emitted through the use of that fuel or substance as a 
     feedstock.
       (c) Excluding Petroleum-Based Liquid Fuel Imported From a 
     Capped NAFTA Country.--The regulations promulgated pursuant 
     to section 204 shall provide for the exclusion from the 
     compliance obligation under subsection (a)(2) of petroleum-
     based liquid fuel imported into the United States from a 
     NAFTA country in any case in which the Administrator has 
     determined, after public notice and an opportunity for public 
     comment, that--
       (1) the NAFTA country has enacted national greenhouse gas 
     emissions reduction requirements that are not less stringent 
     than those established for the United States by this Act; and
       (2) the petroleum-based liquid fuel imported into the 
     United States from the NAFTA country was produced or 
     manufactured at or by an entity that was, at the time of the 
     production or manufacture, directly subject to regulatory 
     requirements, pursuant to the enacted greenhouse gas emission 
     reduction requirements of the NAFTA country, to submit 
     allowances covering any greenhouse gas emitted through the 
     use of the liquid fuel.
       (d) Retirement of Allowances Upon Receipt.--Immediately 
     upon receiving an allowance under subsection (a), the 
     Administrator shall retire the allowance.
       (e) Destruction Credit.--
       (1) In general.--Not later than 90 days after the end of 
     each of calendar years 2012 through 2050, the Administrator 
     shall establish and distribute to any entity in the United 
     States that the Administrator determines destroyed greenhouse 
     gas in the United States during the calendar year a quantity 
     of emission allowances equal to the quantity of carbon 
     dioxide equivalents of non-HFC greenhouse gas that the 
     Administrator determines the entity destroyed in the United 
     States during that calendar year.
       (2) Destruction of methane through combustion.--Paragraph 
     (1) shall not apply to the destruction of methane through 
     combustion.
       (f) Sequestration Credit.--Not later than 90 days after the 
     end of each of calendar years 2012 through 2050, the 
     Administrator shall establish and distribute to each covered 
     entity subject to any of paragraphs (2) through (5) of 
     subsection (a) that the Administrator determines captured and 
     geologically sequestered carbon dioxide during the calendar 
     year a quantity of emission allowances equal to the quantity 
     of metric tons of carbon dioxide that the entity captured and 
     geologically sequestered in the United States during that 
     calendar year.
       (g) Nonemissive Use Credit.--
       (1) In general.--Subject to paragraph (2), not later than 
     90 days after the end of each of calendar years 2012 through 
     2050, the Administrator shall establish and distribute to 
     each entity in the United States that the Administrator 
     determines used in the United States during that calendar 
     year a petroleum- or coal-based product, natural gas, or 
     natural gas liquid as a feedstock, or used a perfluorocarbon 
     in semiconductor research or manufacturing in the United 
     States during that calendar year, an emission allowance for 
     each carbon dioxide equivalent of greenhouse gas that was not 
     emitted through the use of that feedstock or perfluorocarbon, 
     notwithstanding the submission of an emission allowance or 
     offset allowance for that carbon dioxide equivalent under 
     subsection (a).
       (2) Nonapplicability to certain feedstock uses.--Paragraph 
     (1) shall not apply to any feedstock use to which subsection 
     (b)(2) applies.
       (h) Export Credit.--Not later than 90 days after the end of 
     each of calendar years 2012 through 2050, the Administrator 
     shall establish and distribute to each entity that the 
     Administrator determines exported from the United States a 
     product described in paragraph (2), (3), or (5) of subsection 
     (a) during that calendar year a quantity of emission 
     allowances equal to the quantity of allowances submitted for 
     that product under 1 of those paragraphs.
       (i) International Flight Credit.--Not later than 90 days 
     after the end of each of calendar years 2012 through 2050, 
     the Administrator shall establish and distribute to each 
     entity that the Administrator determines purchased in the 
     United States fuel for an international flight the greenhouse 
     gas emissions of which were regulated by the laws of another 
     country a quantity of emission allowances equal to the 
     quantity of allowances submitted for that fuel under 
     subsection (a)(2).
       (j) Determination of Compliance.--Not later than 180 days 
     after the end of each of calendar years 2012 through 2050, 
     the Administrator shall determine whether the owners and 
     operators of all covered entities are in full compliance with 
     subsection (a) for that calendar year.
       (k) Prohibition.--A covered entity shall not submit, and 
     the Administrator shall not accept, any allowance established 
     pursuant to section 1501 in satisfaction, in whole or in 
     part, of the compliance obligation under subsection (a).

     SEC. 203. PENALTY FOR NONCOMPLIANCE.

       (a) Cash Penalty.--
       (1) In general.--The owner or operator of any covered 
     entity that fails for any year to submit to the Administrator 
     by the applicable deadline described in section 202 1 or more 
     of the allowances due pursuant to that section shall be 
     liable for the payment to the Administrator of a cash 
     penalty.
       (2) Amount.--The amount of a cash penalty required to be 
     paid under paragraph (1) shall be, as determined by the 
     Administrator, an amount equal to the product obtained by 
     multiplying--
       (A) the quantity of allowances that the owner or operator 
     failed to submit; and
       (B) the greater of--
       (i) $200; or
       (ii) an amount, in dollars, equal to 3 times the average 
     market value of an emission allowance during the calendar 
     year for which the allowances were due.
       (3) Timing.--A cash penalty required under this subsection 
     shall be immediately due and payable to the Administrator, 
     without demand.
       (4) Deposit.--The Administrator shall deposit each cash 
     penalty paid under this subsection into the Treasury of the 
     United States.
       (5) No effect on liability.--A cash penalty due and payable 
     by the owner or operator of a covered entity under this 
     subsection shall not diminish the liability of the owner or 
     operator for any fine, penalty, or assessment against the 
     owner or operator for the same violation under any other 
     provision of this Act or any other law.
       (b) Compensation.--The owner or operator of a covered 
     entity that fails for any year to submit to the 
     Administrator, by the deadline described in section 202, 1 or 
     more of the emission allowances due pursuant to that section 
     shall be liable to compensate for the shortfall with a 
     submission of excess allowances during--
       (1) the following calendar year; or
       (2) such longer period as the Administrator may prescribe.
       (c) Prohibition.--It shall be unlawful for the owner or 
     operator of any entity liable under subsections (a) and (b) 
     to fail to comply with a requirement under either of those 
     subsections.
       (d) No Effect on Other Law.--Nothing in this title limits 
     or otherwise affects the application of any other enforcement 
     provision under this Act or under any other law.

     SEC. 204. REGULATIONS.

       Not later than 2 years after the date of enactment of this 
     Act, the Administrator shall promulgate regulations to carry 
     out this title.

     SEC. 205. REPORT TO CONGRESS.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall submit to the 
     President and Congress a report on the regulation under this 
     Act of greenhouse gases emitted through the use of natural 
     gas in the United States.
       (b) Requirements.--The report submitted under subsection 
     (a) shall include options for increasing the percentage of 
     the natural gas used in the United States that is subject to 
     greenhouse gas emission-reduction measures while minimizing 
     regulatory complexity.

    TITLE III--REDUCING EMISSIONS THROUGH OFFSETS AND INTERNATIONAL 
                               ALLOWANCES

                Subtitle A--Offsets in the United States

     SEC. 301. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR 
                   AGRICULTURAL PRODUCERS.

       (a) In General.--The Secretary of Agriculture, acting 
     through the Chief of the Natural Resources Conservation 
     Service, the Chief of the Forest Service, the Director of the 
     National Institute of Food and Agriculture, and land-grant 
     colleges and universities, in consultation with the 
     Administrator and the heads of other appropriate departments 
     and agencies, shall establish an outreach initiative to 
     provide information to agricultural producers, agricultural 
     organizations, foresters, State and local officials,

[[Page S5058]]

     leaders from small businesses, nonprofit groups that may 
     engage in forest or natural resource projects, forest 
     workers, Indian tribes, and other landowners (referred to in 
     this section as ``interested parties'') about opportunities 
     to earn new revenue under this subtitle.
       (b) Components.--The initiative under this section--
       (1) shall be designed to ensure, to the maximum extent 
     practicable, that interested parties receive detailed, 
     practical information about--
       (A) opportunities to earn new revenue under this subtitle;
       (B) measurement protocols, monitoring, verifying, 
     inventorying, registering, insuring, and marketing offsets 
     under this title;
       (C) emerging domestic and international markets for energy 
     crops, allowances, and offsets; and
       (D) local, regional, and national databases and aggregation 
     networks to facilitate achievement, measurement, 
     registration, and sales of offsets;
       (2) shall provide, in cooperation with other stakeholders--
       (A) outreach materials, including the handbook published 
     under subsection (c), to interested parties;
       (B) workshops; and
       (C) technical assistance; and
       (3) may include the creation and development of regional 
     marketing centers or coordination with existing centers 
     (including centers within the Natural Resources Conservation 
     Service or the National Institute of Food and Agriculture or 
     at land-grant colleges and universities).
       (c) Handbook.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture, in 
     consultation with the Administrator and after providing an 
     opportunity for public comment, shall publish a handbook for 
     use by interested parties that provides easy-to-use guidance 
     on achieving, reporting, registering, and marketing offsets.
       (2) Distribution.--The Secretary of Agriculture shall 
     ensure, to the maximum extent practicable, that the 
     handbook--
       (A) is made available through the Internet and in other 
     electronic media;
       (B) includes, with respect to the electronic form of the 
     handbook described in subparagraph (A), electronic forms and 
     calculation tools to facilitate the petition process for new 
     methodologies; and
       (C) is distributed widely through land-grant colleges and 
     universities and other appropriate institutions.
       (3) Updating.--- The Secretary of Agriculture shall update 
     the handbook at least every 5 years, or more frequently as 
     needed to reflect developments in science, practices, 
     methodologies, measurement protocols, and emerging markets.

     SEC. 302. ESTABLISHMENT OF A DOMESTIC OFFSET PROGRAM.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator, in conjunction with 
     the Secretary of Agriculture, shall promulgate regulations 
     authorizing the certification and issuance of offset 
     allowances in accordance with this subtitle.
       (b) Use.--
       (1) In general.--Subject to paragraph (3), the quantity of 
     offset allowances issued pursuant to subsection (d) in a 
     calendar year shall not exceed 15 percent of the quantity of 
     emission allowances established for that year pursuant to 
     section 201(a).
       (2) Use of international allowances.--
       (A) In general.--If the quantity of offset allowances 
     issued in a calendar year pursuant to subsection (d) is less 
     than 15 percent of the quantity of emission allowances 
     established for that year pursuant to section 201(a), the 
     Administrator shall allow the use, by covered entities in 
     that year, of international allowances under section 322 and 
     international forest carbon credits under section 1313.
       (B) Maximum quantity.--The maximum aggregate quantity of 
     international allowances and international forest carbon 
     credits the use of which the Administrator shall allow for a 
     calendar year under subparagraph (A) shall be equal to the 
     difference between--
       (i) 15 percent of the quantity of emission allowances 
     established for that year pursuant to section 201(a); and
       (ii) the quantity of offset allowances issued in that year 
     pursuant to subsection (d).
       (3) Carry-over.--
       (A) In general.--If the sum of the quantity of offset 
     allowances issued for a calendar year pursuant to subsection 
     (d) and the quantity of international allowances and 
     international forest carbon credits used in that calendar 
     year pursuant to paragraph (2) is less than 15 percent of the 
     quantity of emission allowances established for that calendar 
     year pursuant to section 201(a), notwithstanding paragraph 
     (1), the quantity of offset allowances issued pursuant to 
     subsection (d) in the subsequent calendar year shall not 
     exceed the sum obtained by adding--
       (i) 15 percent of the quantity of emission allowances 
     established for that subsequent calendar year pursuant to 
     section 201(a); and
       (ii) the difference between--

       (I) 15 percent of the quantity of emission allowances 
     established for that year pursuant to section 201(a); and
       (II) the sum obtained by adding the quantity of offset 
     allowances issued in the preceding calendar year pursuant to 
     subsection (d) and the quantity of international allowances 
     and international forest carbon credits used in that year 
     pursuant to paragraph (2).

       (4) Exchange for regional greenhouse gas initiative 
     offsets.--The Administrator shall--
       (A) issue offset allowances, at an appropriate discount 
     rate, for offset allowances issued under the Regional 
     Greenhouse Gas Initiative; and
       (B) ensure that enough capacity remains within the 
     limitation under paragraph (1) to carry out exchanges with 
     all interested parties.
       (c) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall--
       (1) authorize the issuance and certification of offset 
     allowances only for greenhouse gas emission reductions or 
     increases in sequestration relative to the offset project 
     baseline, for offset projects approved pursuant to section 
     304 in categories on the list issued under section 303;
       (2) ensure that those offsets represent real, verifiable, 
     additional, permanent, and enforceable reductions in 
     greenhouse gas emissions or increases in sequestration;
       (3) require that the project developer for an offset 
     project establish the project baseline and register emissions 
     with the Registry;
       (4) specify the types of offset projects eligible to 
     generate offset allowances, in accordance with section 303;
       (5) establish procedures to monitor, quantify, and discount 
     reductions in greenhouse gas emissions or increases in 
     biological sequestration, in accordance with section 303;
       (6) establish procedures for project initiation and 
     approval, in accordance with section 304;
       (7) establish procedures for third-party verification, 
     registration, and issuance of offset allowances, in 
     accordance with section 305;
       (8) ensure permanence of offsets by mitigating and 
     compensating for reversals, in accordance with section 306; 
     and
       (9) assign a unique serial number to each offset allowance 
     issued under this section.
       (d) Offset Allowances Awarded.--The Administrator shall 
     issue to a project developer offset allowances for qualifying 
     emission reductions and biological sequestrations from offset 
     projects that satisfy the applicable requirements of this 
     subtitle, unless an alternative recipient is specified in a 
     legally-binding contract or agreement.
       (e) Transferability; Compensation for Reversals.--
       (1) Transferability.--An offset allowance generated 
     pursuant to this subtitle may be sold, traded, or 
     transferred, on the condition that the offset allowance has 
     not expired or been retired or canceled.
       (2) Compensation for reversals.--With respect to a 
     biological sequestration project, a project developer shall 
     be responsible for mitigating and compensating for reversals 
     of registered offset allowances unless a different 
     responsible party is specified in a legally-binding contract 
     or agreement.
       (f) Accounting Period.--
       (1) In general.--The Administrator shall issue offset 
     allowances--
       (A) on an annual basis, beginning on the date on which the 
     initiation of an offset project is approved; and
       (B) that equal the verified and certified emission 
     reductions or increases in sequestration achieved by the 
     offset project.
       (2) Baseline validity.--An emission baseline approved for 
     an offset project shall be valid for a period of 5 years 
     before being subject to revision.

     SEC. 303. ELIGIBLE OFFSET PROJECT TYPES.

       (a) In General.--An offset allowance from an agricultural, 
     forestry, or other land use-related project shall be provided 
     only for achieving an offset of 1 or more greenhouse gases by 
     a method other than a reduction of combustion of greenhouse 
     gas-emitting fuel.
       (b) Categories of Eligible Offset Projects.--
       (1) In general.--The Administrator, after providing public 
     notice and an opportunity for comment, shall issue and 
     periodically revise a list of categories of offset projects 
     for the Administrator shall issue an offset methodology.
       (2) Categories.--The Administrator shall consider including 
     on the list under paragraph (1)--
       (A) agricultural and rangeland sequestration and management 
     practices, including--
       (i) altered tillage practices;
       (ii) winter cover cropping, continuous cropping, and other 
     means to increase biomass returned to soil in lieu of 
     planting followed by fallowing;
       (iii) conversion of cropland to rangeland or grassland, on 
     the condition that the land has been in nonforest use for at 
     least 10 years before the date of initiation of the project;
       (iv) reduction of nitrogen fertilizer use or increase in 
     nitrogen use efficiency;
       (v) reduction in the frequency and duration of flooding of 
     rice paddies; and
       (vi) reduction in carbon emissions from organic soils;
       (B) changes in carbon stocks attributed to land use change 
     and forestry activities limited to--
       (i) afforestation or reforestation of acreage not forested 
     as of October 18, 2007; and
       (ii) forest management resulting in an increase in forest 
     stand volume;
       (C) manure management and disposal, including--
       (i) waste aeration; and
       (ii) methane capture and combustion;

[[Page S5059]]

       (D) subject to the requirements of this subtitle, any other 
     terrestrial offset practices identified by the Administrator, 
     including--
       (i) the capture or reduction of fugitive greenhouse gas 
     emissions for which no covered entity is required under 
     section 202(a) to submit any emission allowances, offset 
     allowances, or international allowances;
       (ii) methane capture and combustion at nonagricultural 
     facilities; and
       (iii) other actions that result in the avoidance or 
     reduction of greenhouse gas emissions in accordance with 
     section 302;
       (E) combinations of any of the offset practices described 
     in subparagraphs (A) through (D); and
       (F) any other category proposed to the Administrator by 
     petition.
       (c) Requirements for Offset Methodologies.--
       (1) Issuance.--Not later than 3 years after the date of 
     enactment of this Act, and after public notice and an 
     opportunity for comment, the Administrator shall issue a 
     methodology for each category of offset project listed 
     pursuant to subsection (b).
       (2) Specific requirements.--The methodology for each 
     category issued under paragraph (1) shall--
       (A) specify requirements for--
       (i) determining the eligibility of an offset project;
       (ii) determining additional emission reductions or 
     sequestrations from an offset project;
       (iii) accounting for emission leakage associated with an 
     offset project;
       (iv) accounting for a reversal, and managing for the risk 
     of reversal, from an offset project; and
       (v) monitoring, verifying, and reporting the operation of 
     an offset project; and
       (B) include--
       (i) a procedure for determining that--

       (I) an offset project does not receive support from an 
     allowance allocation under this Act or from any other 
     government incentive, subsidy, or mandate; and
       (II) the emission reductions or sequestrations from an 
     offset project are not double-counted under any other 
     program;

       (ii) a procedure for delineating the boundaries of an 
     offset project and determining the extent, if any, of 
     emission leakage from the offset project, based on 
     scientifically sound methods, as determined by the 
     Administrator;
       (iii) a description of scientifically sound methods, as 
     determined by the Administrator, for use in monitoring, 
     measuring, and quantifying changes in emissions or 
     sequestrations resulting from an offset project, including--

       (I) a method for use in quantifying the uncertainty in 
     those measurements; and
       (II) a description of site-specific data that will be used 
     in that monitoring, measurement, and quantification;

       (iv) a procedure for use in establishing the baseline for 
     an offset project that ensures that offset allowances will be 
     issued only for emission reductions or sequestrations that 
     are additional;
       (v)(I) a threshold of uncertainty in the quantification of 
     emission reductions or sequestrations and for baseline 
     emission levels above which an offset project shall not be 
     eligible to receive offset allowances; and
       (II) a procedure by which a project developer may petition 
     for use of different uncertainty factors if the project 
     developer demonstrates to the Administrator that the 
     measurement methods used by the offset project have less 
     uncertainty than assumed under the default methodology;
       (vi) clear and objective tests specified by the 
     Administrator that are sufficient to ensure that--

       (I) an offset project will be eligible to generate offset 
     allowances only if, in the judgment of the Administrator, the 
     project is additional;
       (II) no part of the offset project is required by Federal 
     or State regulations or commonly accepted industry standards, 
     as determined by the Administrator;
       (III) the offset project uses technologies or practices 
     that are not in common use within a relevant jurisdiction or 
     industry, as defined by the Administrator; and
       (IV) the offset project would not take place in the absence 
     of the revenue generated by the sale of offset allowances;

       (vii) a procedure to quantify leakage and ensure that the 
     issuance of offset allowances is reduced by an amount 
     equivalent to the quantity of that leakage;
       (viii)(I) a methodology for use in assessing the risk that 
     a sequestration will be reversed;
       (II) a description of measures that will be taken to reduce 
     that risk; and
       (III) a description of procedures that will be followed to 
     measure, report, and compensate for any reversal that does 
     occur;
       (ix) a procedure for use in--

       (I) determining whether the quantity of carbon sequestered 
     on or in land where a project is carried out was 
     significantly changed during the 10-year period prior to 
     initiation of the project; and
       (II) excluding the offset project from receiving allowances 
     under this subtitle, or adjusting the baseline of the offset 
     project accordingly; and

       (x) a protocol for use in reporting emission reductions or 
     sequestrations (and any reversals) at least annually.
       (3) Consultation.--In the case of an offset project 
     relating to agriculture or forestry, the Administrator shall 
     consult with the Secretary of Agriculture in carrying out 
     this subsection.
       (4) Revision.--The Administrator shall revise each 
     methodology issued under paragraph (1), after public notice 
     and an opportunity for comment, at least every 5 years.
       (5) Project conformity.--Beginning 1 year after the date by 
     which a methodology is required to be revised under paragraph 
     (4), no further offset allowances shall be issued to an 
     offset project approved under the methodology unless the 
     offset project is demonstrated to be in conformity with the 
     applicable revisions.
       (d) Technologies.--
       (1) In general.--The Administrator may issue, after notice 
     and comment, a list of technologies and associated 
     performance benchmarks the achievement of which the 
     Administrator has determined shall be considered to be 
     additional in specific project applications.
       (2) Period of validity.--A determination of the 
     Administrator under paragraph (1) shall be valid for not more 
     than 5 years after the date of the determination.
       (e) Methodology Testing.--The Administrator may not issue a 
     methodology under this section until the Administrator 
     determines that--
       (1) the methodology has been tested by 3 independent expert 
     teams on at least 3 different offset projects to which that 
     methodology applies; and
       (2) the emission reductions or sequestrations estimated by 
     the expert teams for the same offset project do not differ by 
     more than 10 percent.

     SEC. 304. PROJECT INITIATION AND APPROVAL.

       (a) Project Approval.--A project developer--
       (1) may submit a petition for offset project approval at 
     any time following the effective date of regulations 
     promulgated under section 302; but
       (2) may not use or distribute offset allowances until such 
     approval is received and until after the emission reductions 
     or sequestrations supporting the offset allowances have 
     actually occurred.
       (b) Petition Process.--Prior to offset registration and 
     issuance of offset allowances, a project developer shall 
     submit to the Administrator a petition that consists of--
       (1) a copy of the monitoring and quantification plan 
     prepared for the offset project, as described in subsection 
     (d);
       (2) a greenhouse gas initiation certification, as described 
     in subsection (e); and
       (3) subject to this subtitle, any other information 
     identified by the Administrator in the regulations 
     promulgated under section 302 as being necessary to meet the 
     objectives of this subtitle.
       (c) Approval and Notification.--
       (1) In general.--Not later than 180 days after the date on 
     which the Administrator receives a complete petition under 
     subsection (b), the Administrator shall--
       (A) determine whether the monitoring and quantification 
     plan satisfies the applicable requirements of this subtitle;
       (B) determine whether the greenhouse gas initiation 
     certification indicates a significant deviation in accordance 
     with subsection (e)(3); and
       (C) notify the project developer of the determinations 
     under subparagraphs (A) and (B).
       (2) Appeal.--The Administrator shall establish mechanisms 
     for appeal and review of determinations made under this 
     subsection.
       (d) Monitoring and Quantification.--
       (1) In general.--A project developer shall make use of the 
     standardized tools and methods described in this section to 
     monitor, quantify, and discount reductions in greenhouse gas 
     emissions or increases in sequestration.
       (2) Monitoring and quantification plan.--A monitoring and 
     quantification plan shall be used to monitor, quantify, and 
     discount reductions in greenhouse gas emissions or increases 
     in sequestration as described in this subsection.
       (3) Plan completion and retention.--A monitoring and 
     quantification plan shall be--
       (A) completed for all offset projects prior to offset 
     project initiation; and
       (B) retained by the project developer for the duration of 
     the offset project.
       (4) Plan requirements.--Subject to section 302, the 
     Administrator, in conjunction with the Secretary of 
     Agriculture, shall specify the required components of a 
     monitoring and quantification plan, including--
       (A) a description of the offset project, including project 
     type;
       (B) a determination of accounting periods;
       (C) an assignment of reporting responsibility;
       (D) the contents and timing of public reports, including 
     summaries of the original data, as well as the results of any 
     analyses;
       (E) a delineation of project boundaries, based on 
     acceptable methods and formats;
       (F) a description of which of the monitoring and 
     quantification tools developed under subsection (f) are to be 
     used to monitor and quantify changes in greenhouse gas fluxes 
     or carbon stocks associated with a project;
       (G) a description of which of the standardized methods 
     developed under subsection (g) are to be used to determine 
     additionality, estimate the baseline carbon, and discount for 
     leakage;
       (H) based on the selection of tools and standardized 
     methods described in subparagraphs (F) and (G), a 
     determination of uncertainty in accordance with subsection 
     (h);

[[Page S5060]]

       (I) what site-specific data, if any, will be used in 
     monitoring, quantification, and the determination of 
     discounts;
       (J) a description of procedures for use in managing and 
     storing data, including quality-control standards and 
     methods, such as redundancy in case records are lost;
       (K) subject to the requirements of this subtitle, any other 
     information identified by the Administrator or the Secretary 
     of Agriculture as being necessary to meet the objectives of 
     this subtitle; and
       (L) a description of the risk of reversals for the project, 
     including any way in which the proposed project may alter the 
     risk of reversal for the project or other projects in the 
     area.
       (e) Greenhouse Gas Initiation Certification.--
       (1) In general.--In reviewing a petition submitted under 
     subsection (b), the Administrator shall seek to exclude each 
     activity that undermines the integrity of the offset program 
     established under this subtitle, such as the conversion or 
     clearing of land, or marked change in management regime, in 
     anticipation of offset project initiation.
       (2) Greenhouse gas initiation certification requirements.--
     A greenhouse gas initiation certification developed under 
     this subsection shall include--
       (A) the estimated greenhouse gas flux or carbon stock for 
     the offset project for each of the 4 complete calendar years 
     preceding the effective date of the regulations promulgated 
     under section 302; and
       (B) the estimated greenhouse gas flux or carbon stock for 
     the offset project, averaged across each of the 4 calendar 
     years preceding the effective date of the regulations 
     promulgated under section 302.
       (3) Determination of significant deviation.--Based on 
     standards developed by the Administrator, in conjunction with 
     the Secretary of Agriculture--
       (A) each greenhouse gas initiation certification submitted 
     pursuant to this section shall be reviewed; and
       (B) a determination shall be made as to whether, as a 
     result of activities or behavior inconsistent with the 
     purposes of this title, a significant deviation exists 
     between the average annual greenhouse gas flux or carbon 
     stock and the greenhouse gas flux or carbon stock for a given 
     year.
       (4) Adjustment for projects with significant deviation.--In 
     the case of a significant deviation, the Administrator shall 
     adjust the number of allowances awarded in order to account 
     for the deviation.
       (f) Development of Monitoring and Quantification Tools for 
     Offset Projects.--
       (1) In general.--Subject to section 302, the Administrator, 
     in conjunction with the Secretary of Agriculture, shall 
     develop standardized tools for use in the monitoring and 
     quantification of changes in greenhouse gas fluxes or carbon 
     stocks for each offset project type listed under section 
     303(b).
       (2) Tool development.--The tools used to monitor and 
     quantify changes in greenhouse gas fluxes or carbon stocks 
     shall, for each project type, include applicable--
       (A) statistically-sound field and remote sensing sampling 
     methods, procedures, techniques, protocols, or programs;
       (B) models, factors, equations, or look-up tables; and
       (C) any other process or tool considered to be acceptable 
     by the Administrator, in conjunction with the Secretary of 
     Agriculture.
       (g) Development of Accounting and Discounting Methods.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary of Agriculture, shall--
       (A) develop standardized methods for use in accounting for 
     additionality and uncertainty, estimating the baseline, and 
     discounting for leakage for each offset project type listed 
     under section 303(b); and
       (B) require that leakage be subtracted from reductions in 
     greenhouse gas emissions or increases in sequestration 
     attributable to a project.
       (2) Additionality determination and baseline estimation.--
     The standardized methods used to determine additionality and 
     establish baselines shall, for each project type, at a 
     minimum--
       (A) in the case of a sequestration project, determine the 
     greenhouse gas flux and carbon stock on comparable land 
     identified on the basis of--
       (i) similarity in current management practices;
       (ii) similarity of regional, State, or local policies or 
     programs; and
       (iii) similarity in geographical and biophysical 
     characteristics;
       (B) in the case of an emission reduction project, use as a 
     basis emissions from comparable land or facilities; and
       (C) in the case of a sequestration project or emission 
     reduction project, specify a selected time period.
       (3) Leakage.--The standardized methods used to determine 
     and discount for leakage shall, at a minimum, take into 
     consideration--
       (A) the scope of the offset system in terms of activities 
     and geography covered;
       (B) the markets relevant to the offset project;
       (C) emission intensity per unit of production, both inside 
     and outside of the offset project; and
       (D) a time period sufficient in length to yield a stable 
     leakage rate.
       (h) Uncertainty for Agricultural and Forestry Projects.--
       (1) In general.--The Administrator, in conjunction with the 
     Secretary of Agriculture, shall develop standardized methods 
     for use in determining and discounting for uncertainty for 
     each offset project type listed under section 303(b).
       (2) Basis.--The standardized methods used to determine and 
     discount for uncertainty shall be based on--
       (A) the robustness and rigor of the methods used by a 
     project developer to monitor and quantify changes in 
     greenhouse gas fluxes or carbon stocks;
       (B) the robustness and rigor of methods used by a project 
     developer to determine additionality and leakage; and
       (C) an exaggerated proportional discount that increases 
     relative to uncertainty, as determined by the Administrator, 
     in conjunction with the Secretary of Agriculture, to 
     encourage better measurement and accounting.
       (i) Acquisition of New Data and Review of Methods for 
     Agricultural and Forestry Projects.--The Administrator, in 
     conjunction with the Secretary of Agriculture, shall--
       (1) establish a comprehensive field sampling program to 
     improve the scientific bases on which the standardized tools 
     and methods developed under this section are based; and
       (2) review and revise the standardized tools and methods 
     developed under this section, based on--
       (A) validation of existing methods, protocols, procedures, 
     techniques, factors, equations, or models;
       (B) development of new methods, protocols, procedures, 
     techniques, factors, equations, or models;
       (C) increased availability of field data or other datasets; 
     and
       (D) any other information identified by the Administrator, 
     in conjunction with the Secretary of Agriculture, that is 
     necessary to meet the objectives of this subtitle.
       (j) Exclusion.--No activity for which any emission 
     allowances are received under subtitle C shall generate 
     offset allowances under this subtitle.

     SEC. 305. OFFSET VERIFICATION AND ISSUANCE OF ALLOWANCES.

       (a) In General.--Offset allowances may be claimed for net 
     emission reductions or increases in sequestration annually, 
     after accounting for any necessary discounts in accordance 
     with section 304, by submitting a verification report for an 
     offset project to the Administrator.
       (b) Offset Verification.--
       (1) Scope of verification.--A verification report for an 
     offset project shall be--
       (A) completed by a verifier accredited in accordance with 
     paragraph (3); and
       (B) developed taking into consideration--
       (i) the information and methodology contained within a 
     monitoring and quantification plan;
       (ii) data and subsequent analysis of the offset project, 
     including--

       (I) quantification of net emission reductions or increases 
     in sequestration;
       (II) determination of additionality;
       (III) calculation of leakage;
       (IV) assessment of permanence;
       (V) discounting for uncertainty; and
       (VI) the adjustment of net emission reductions or increases 
     in sequestration by the discounts determined under subclauses 
     (II) through (V); and

       (iii) subject to the requirements of this subtitle, any 
     other information identified by the Administrator as being 
     necessary to achieve the purposes of this subtitle.
       (2) Verification report requirements.--The Administrator 
     shall specify the required components of a verification 
     report, including--
       (A) the quantity of offsets generated;
       (B) the amount of discounts applied;
       (C) an assessment of methods (and the appropriateness of 
     those methods);
       (D) an assessment of quantitative errors or omissions (and 
     the effect of the errors or omissions on offsets);
       (E) any potential conflicts of interest between a verifier 
     and project developer; and
       (F) any other provision that the Administrator considers to 
     be necessary to achieve the purposes of this subtitle.
       (3) Verifier accreditation.--
       (A) In general.--The regulations promulgated pursuant to 
     section 302 shall establish a process and requirements for 
     accreditation by a third-party verifier that has no conflicts 
     of interest.
       (B) Public accessibility.--Each verifier meeting the 
     requirements for accreditation in accordance with this 
     paragraph shall be listed in a publicly-accessible database, 
     which shall be maintained and updated by the Administrator.
       (c) Registration and Awarding of Offsets.--
       (1) In general.--Not later than 90 days after the date on 
     which the Administrator receives a verification report 
     required under subsection (b), the Administrator shall--
       (A) determine whether the offsets satisfy the applicable 
     requirements of this subtitle; and
       (B) notify the project developer of that determination.
       (2) Affirmative determination.--In the case of an 
     affirmative determination under paragraph (1), the 
     Administrator shall--
       (A) register the offset allowances in accordance with this 
     subtitle; and
       (B) issue the offset allowances.

[[Page S5061]]

       (3) Appeal and review.--The Administrator shall establish 
     mechanisms for the appeal and review of determinations made 
     under this subsection.

     SEC. 306. TRACKING OF REVERSALS FOR SEQUESTRATION PROJECTS.

       (a) Reversal Certification.--
       (1) In general.--The regulations promulgated pursuant to 
     section 302 shall require the submission of a reversal 
     certification for each offset project on an annual basis 
     following the registration of offset allowances.
       (2) Requirements.--A reversal certification submitted in 
     accordance with this subsection shall state--
       (A) whether any unmitigated reversal relating to the offset 
     project has occurred in the year preceding the year in which 
     the certification is submitted; and
       (B) the quantity of each unmitigated reversal.
       (b) Effect on Offset Allowances.--
       (1) Invalidity.--The Administrator shall declare invalid 
     all offset allowances issued for any offset project that has 
     undergone a complete reversal.
       (2) Partial reversal.--In the case of an offset project 
     that has undergone a partial reversal, the Administrator 
     shall render invalid offset allowances issued for the offset 
     project in direct proportion to the degree of reversal.
       (c) Accountability for Reversals.--Liability and 
     responsibility for compensation of a reversal of a registered 
     offset allowance under subsection (a) shall lie with the 
     owner of the offset allowance, as described in section 302.
       (d) Compensation for Reversals.--The unmitigated reversal 
     of 1 or more registered offset allowances that were submitted 
     for the purpose of compliance with section 202(a) shall 
     require the submission of--
       (1) an equal number of offset allowances; or
       (2) a combination of offset allowances and emission 
     allowances equal to the unmitigated reversal.
       (e) Project Termination.--A project developer may cease 
     participation in the domestic offset program established 
     under this subtitle at any time, on the condition that any 
     registered allowances awarded for increases in sequestration 
     have been compensated for by the project developer through 
     the submission of an equal number of any combination of 
     offset allowances and emission allowances.

     SEC. 307. EXAMINATIONS.

       (a) Regulations.--The regulations promulgated pursuant to 
     section 302 shall govern the examination and auditing of 
     offset allowances.
       (b) Requirements.--The governing regulations described in 
     subsection (a) shall specifically consider--
       (1) principles for initiating and conducting examinations;
       (2) the type or scope of examinations, including--
       (A) reporting and recordkeeping; and
       (B) site review or visitation;
       (3) the rights and privileges of an examined party; and
       (4) the establishment of an appeal process.

     SEC. 308. TIMING AND THE PROVISION OF OFFSET ALLOWANCES.

       (a) Initiation of Offset Projects.--An offset project that 
     commences operation on or after the effective date of the 
     governing regulations described in section 307(a) shall be 
     eligible to generate offset allowances under this subtitle if 
     the offset project meets the other applicable requirements of 
     this subtitle.
       (b) Pre-Existing Projects.--
       (1) In general.--The Administrator shall allow for the 
     transition into the Registry of offset projects and banked 
     offset allowances that, as of the effective date of 
     regulations promulgated under section 307(a), are registered 
     under or meet the standards of the Climate Registry, the 
     California Action Registry, the GHG Registry, the Chicago 
     Climate Exchange, the GHG Clean Projects Registry, or any 
     other Federal, State, or private reporting programs or 
     registries, if the Administrator determines that such other 
     offset projects and banked offset allowances under those 
     other programs or registries satisfy the applicable 
     requirements of this subtitle.
       (2) Exception.--An offset allowance that is expired, 
     retired, or canceled under any other offset program, 
     registry, or market as of the effective date of the governing 
     regulations described in section 307(a) shall be ineligible 
     for transition into the Registry.

     SEC. 309. OFFSET REGISTRY.

       In addition to the requirements established by section 304, 
     an offset allowance registered under this subtitle shall be 
     accompanied in the Registry by--
       (1) a verification report submitted pursuant to section 
     305(a);
       (2) a reversal certification submitted pursuant to section 
     306(a); and
       (3) subject to the requirements of this subtitle, any other 
     information identified by the Administrator as being 
     necessary to achieve the purposes of this subtitle.

     SEC. 310. ENVIRONMENTAL CONSIDERATIONS.

       (1) Coordination to minimize negative effects.--In 
     promulgating regulations under this subtitle, the 
     Administrator, in conjunction with the Secretary of 
     Agriculture, shall act (including by rejecting projects, if 
     necessary) to avoid or minimize, to the maximum extent 
     practicable, adverse effects on human health or the 
     environment resulting from the implementation of offset 
     projects under this subtitle.
       (2) Report on positive effects.--Not later than 2 years 
     after the date of enactment of this Act, the Administrator, 
     in conjunction with the Secretary of Agriculture, shall 
     submit to Congress a report detailing--
       (A) the incentives, programs, or policies capable of 
     fostering improvements to human health or the environment in 
     conjunction with the implementation of offset projects under 
     this subtitle; and
       (B) the cost and benefits of those incentives, programs, or 
     policies.
       (3) Coordination to enhance environmental benefits.--In 
     promulgating regulations under this subtitle, the 
     Administrator, in conjunction with the Secretary of 
     Agriculture and the Secretary of Interior, shall--
       (A) act to enhance and increase the adaptive capability of 
     natural systems and resilience of those systems to climate 
     change, including through the support of biodiversity, native 
     species, and land management practices that foster natural 
     ecosystem conditions; and
       (B) coordinate actions taken under this paragraph, to the 
     maximum extent practicable, with existing programs that have 
     overlapping outcomes to maximize environmental benefits.
       (4) Use of native plant species in compliance offset 
     projects.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator, in conjunction with 
     the Secretary of Agriculture, shall promulgate regulations 
     for the selection, use, and storage of native and nonnative 
     plant materials--
       (A) to ensure native plant materials are given primary 
     consideration, in accordance with applicable Department of 
     Agriculture guidance for use of native plant materials;
       (B) to prohibit the use of Federal- or State-designated 
     noxious weeds; and
       (C) to prohibit the use of a species listed by a regional 
     or State invasive plant council within the applicable region 
     or State.

     SEC. 311. PROGRAM REVIEW.

       Not later than 5 years after the date of enactment of this 
     Act, and periodically thereafter, the Administrator, in 
     conjunction with the Secretary of Agriculture, shall review 
     and revise, as necessary to achieve the purposes of this Act, 
     the regulations promulgated under this subtitle.

    Subtitle B--Offsets and Emission Allowances From Other Countries

     SEC. 321. OFFSET ALLOWANCES ORIGINATING FROM PROJECTS IN 
                   OTHER COUNTRIES.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a system under which the 
     Administrator shall register and issue offset allowances for 
     projects that reduce greenhouse gas emissions or increase 
     sequestration of carbon dioxide in countries other than the 
     United States.
       (b) Use.--
       (1) In general.--Subject to paragraph (3), the quantity of 
     offset allowances issued pursuant to this section in a 
     calendar year shall not exceed 5 percent of the quantity of 
     emission allowances established for that year pursuant to 
     section 201(a).
       (2) Use of international allowances.--
       (A) In general.--If the quantity of offset allowances 
     issued in a calendar year pursuant to this section is less 
     than 5 percent of the quantity of emission allowances 
     established for that year pursuant to section 201(a), the 
     Administrator shall allow the use, by covered entities in 
     that year, of international allowances under section 322.
       (B) Maximum quantity.--The maximum aggregate quantity of 
     international allowances the use of which use the 
     Administrator shall allow under subparagraph (A) shall be 
     equal to the difference between--
       (i) 5 percent of the quantity of emission allowances 
     established for that year pursuant to section 201(a); and
       (ii) the quantity of domestic offset allowances issued in 
     that year pursuant to this section.
       (3) Carry-over.--
       (A) In general.--If the sum of the quantity of offset 
     allowances issued in a calendar pursuant to this section and 
     the quantity of international allowances used in that 
     calendar year pursuant to paragraph (2) is less than 5 
     percent of the quantity of emission allowances established 
     for that year pursuant to section 201(a), notwithstanding 
     paragraph (1), the quantity of offset allowances issued 
     pursuant to this section in the subsequent calendar year 
     shall not exceed the sum of--
       (i) 5 percent of the quantity of emission allowances 
     established for that subsequent calendar year pursuant to 
     section 201(a); and
       (ii) the difference between--

       (I) 5 percent of the quantity of emission allowances 
     established for that year pursuant to section 201(a); and
       (II) the sum of the quantity of offset allowances issued in 
     the preceding calendar year pursuant to this section and the 
     quantity of international allowances used in that year 
     pursuant to paragraph (2).

       (c) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall--
       (1) take into consideration protocols adopted in accordance 
     with the United Nations Framework Convention on Climate 
     Change, done at New York on May 9, 1992; and
       (2) require that, in order to be approved for use under 
     this subtitle--
       (A) a project shall be determined by the Administrator to 
     meet the requirements under the regulations established 
     pursuant to subtitle A; and

[[Page S5062]]

       (B) the emission allowance shall not be provided for a 
     project at facility that competes directly with a United 
     States facility.
       (d) Entity Certification.--The owner or operator of a 
     covered entity that submits an offset allowance issued 
     pursuant to this section shall certify that the allowance has 
     not been retired from use in the registry of the applicable 
     foreign country.

     SEC. 322. EMISSION ALLOWANCES FROM OTHER COUNTRIES.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations, taking into consideration protocols adopted in 
     accordance with the United Nations Framework Convention on 
     Climate Change, done at New York on May 9, 1992, approving 
     the use in the United States of emission allowances issued by 
     countries other than the United States.
       (b) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall require that, in order to be approved 
     for use in the United States--
       (1) an emission allowance shall have been issued by a 
     foreign country pursuant to a governmental program that 
     imposes mandatory absolute tonnage limits on greenhouse gas 
     emissions from the foreign country, or 1 or more industry 
     sectors in that country, pursuant to protocols described in 
     subsection (a); and
       (2) the governmental program be of comparable stringency to 
     the program established by this Act, including comparable 
     monitoring, compliance, and enforcement.
       (c) Facility Certification.--The owner or operator of a 
     covered entity that submits an international allowance under 
     this subtitle shall certify that the allowance has not been 
     retired from use in the registry of the applicable foreign 
     country.

   Subtitle C--Agriculture and Forestry Program in the United States

     SEC. 331. ALLOCATION.

       (a) First Period.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2030, the 
     Administrator shall allocate to the Secretary of Agriculture, 
     for the program established pursuant to section 332, 4.25 
     percent of the emission allowances established pursuant to 
     section 201(a) for that calendar year.
       (b) Second Period.--Not later than 330 days before the 
     beginning of each of calendar years 2031 through 2050, the 
     Administrator shall allocate to the Secretary of Agriculture, 
     for the program established pursuant to section 332, 4.5 
     percent of the emission allowances established pursuant to 
     section 201(a) for that calendar year.

     SEC. 332. AGRICULTURE AND FORESTRY PROGRAM.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations establishing a program for 
     distributing emission allowances allocated pursuant to 
     section 331 to entities in the agricultural and forestry 
     sectors of the United States, including entities engaged in 
     organic farming, as a reward for--
       (1) achieving real, verifiable, additional, permanent, and 
     enforceable reductions in greenhouse gas emissions from the 
     operations of the entities;
       (2) achieving real, verifiable, additional, permanent, and 
     enforceable increases in greenhouse gas sequestration on land 
     owned or managed by the entities; and
       (3) conducting pilot projects or other research regarding 
     innovative practices for use in measuring--
       (A) greenhouse gas emission reductions;
       (B) sequestration; or
       (C) other benefits and associated costs of the pilot 
     projects.
       (b) Nitrous Oxide and Methane.--The Secretary of 
     Agriculture shall ensure that, during any 5-year period, the 
     average annual percentage of the quantity of emission 
     allowances established for a calendar year that is 
     distributed to entities under the program established under 
     subsection (a) specifically for achieving real, verifiable, 
     additional, permanent, and enforceable reductions in nitrous 
     oxide emissions through soil management or achieving real, 
     verifiable, additional, permanent, and enforceable reductions 
     in methane emissions through enteric fermentation and manure 
     management shall be 0.5 percent.
       (c) New Methodology Incubator.--
       (1) In general.--The Secretary of Agriculture shall ensure 
     that, during any 5-year period, the average annual percentage 
     of the quantity of emission allowances established for a 
     calendar year that is distributed to entities under the 
     program established under paragraph (2) specifically for 
     creating methodologies, tools, and support for the 
     development and deployment of new project types shall be at 
     least 0.25 percent.
       (2) Support for innovation.--
       (A) Acquisition of new data, improvement of methodologies, 
     and development of new tools for designated offset activity 
     categories.--The Administrator, in conjunction with the 
     Secretary of Agriculture, shall establish a comprehensive 
     field sampling and pilot project program to improve the 
     scientific data and calibration of standardized tools and 
     methodologies that--
       (i) are used to measure greenhouse gas reductions or 
     sequestration and baselines for categories of activities not 
     covered by an emission limitation under this Act; and
       (ii) are likely to provide significant emission reductions 
     or sequestration.
       (B) Targeted support for development and deployment of new 
     technologies.--
       (i) In general.--The Administrator shall establish a 
     program for development and deployment of new technologies 
     and methods in greenhouse gas reductions or sequestration for 
     activities not covered by an emission limitation under this 
     Act.
       (ii) Selection; funding.--In carrying out the program under 
     clause (i), the Administrator shall--

       (I) select activities for participation in the program 
     based on--

       (aa) the potential emission reductions or sequestration of 
     the activities; and
       (bb) a market penetration review; and

       (II) provide funding for a select number of projects--

       (aa) to cover research on technological and other barriers, 
     prototypes, first-of-the-kind risk coverage, and initial 
     market barriers; and
       (bb) under limited categories of activities that are 
     dependent on forward progress.
       (d) Requirement.--The Secretary of Agriculture shall 
     distribute emission allowances under this section in a manner 
     that--
       (1) maximizes the avoidance or reduction of greenhouse gas 
     emissions; and
       (2) ensures that entities participating in the program 
     under this section do not receive more compensation for 
     emission reductions under this program than the entities 
     would receive for the same reductions through an offset 
     project under subtitle A.
       (e) Prohibition.--Emission reductions or sequestration 
     increases generating offset allowances pursuant to subtitle A 
     shall not be used the basis for a distribution of emission 
     allowances under this section.

     SEC. 333. AGRICULTURAL AND FORESTRY GREENHOUSE GAS MANAGEMENT 
                   RESEARCH.

       (a) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture, in 
     consultation with the Administrator and scientific, 
     agricultural, and forestry experts, shall prepare and submit 
     to Congress a report that describes the status of research on 
     agricultural and forestry greenhouse gas management, 
     including a description of--
       (1) research on soil carbon sequestration and other 
     agricultural and forestry greenhouse gas management that has 
     been carried out;
       (2) any additional research that is necessary, including 
     research into innovative practices to attempt to measure--
       (A) greenhouse gas emission reductions;
       (B) sequestration; or
       (C) other benefits or associated costs;
       (3) the proposed priority for additional research;
       (4) the most appropriate approaches for conducting the 
     additional research; and
       (5) the extent to which and the manner in which allowances 
     that are specific to agricultural and forestry operations, 
     including harvested wood products and the reduction of 
     hazardous fuels to reduce the risk of uncharacteristically 
     severe wildfires, should be valued and allotted.
       (b) Research.--After the date of submission of the report 
     described in subsection (a), the President and the Secretary 
     of Agriculture (in collaboration with the Administrator and 
     the member institutions of higher education of the Consortium 
     for Agricultural Soil Mitigation of Greenhouse Gases, 
     institutions of higher education, and research entities) 
     shall initiate a program to conduct any additional research 
     that is necessary.

  TITLE IV--ESTABLISHING A GREENHOUSE GAS EMISSION ALLOWANCE TRADING 
                                 MARKET

                          Subtitle A--Trading

     SEC. 401. SALE, EXCHANGE, AND RETIREMENT OF ALLOWANCES.

       Except as otherwise provided in this Act, and subject to 
     the regulations promulgated pursuant to subtitle B, the 
     lawful holder of an allowance may, without restriction--
       (1) sell, exchange, or transfer the allowance; or
       (2) submit the allowance for compliance in accordance with 
     section 202.

     SEC. 402. NO RESTRICTION ON TRANSACTIONS.

       The privilege of purchasing, holding, selling, exchanging, 
     and retiring allowances shall not be restricted to the owners 
     and operators of covered entities.

     SEC. 403. ALLOWANCE TRANSFER AND TRACKING SYSTEM.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a system for issuing, recording, 
     transferring, and tracking allowances.
       (b) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall--
       (1) specify all necessary procedures and requirements for 
     an orderly and competitive functioning of the allowance 
     trading system; and
       (2) provide that the transfer of allowances shall not be 
     effective until such date as a written certification of the 
     transfer, signed by a responsible official of each party to 
     the transfer, is received and recorded by the Administrator 
     in accordance with the regulations promulgated pursuant to 
     subsection (a).

              Subtitle B--Market Oversight and Enforcement

     SEC. 411. FINDING.

       Congress finds that it is necessary to establish an 
     interagency working group to enhance the integrity, 
     efficiency, orderliness, fairness, and competitiveness of the 
     development by the United States of a new financial market 
     for emission allowances, including by ensuring that--

[[Page S5063]]

       (1) the market--
       (A) is designed to prevent fraud and manipulation, which 
     could potentially arise from many sources, including--
       (i) the concentration of market power within the control of 
     a limited number of individuals or entities; and
       (ii) the abuse of material, nonpublic information; and
       (B)(i) is appropriately transparent, with real-time 
     reporting of quotes and trades;
       (ii) makes information on price, volume, and supply, and 
     other important statistical information, available to the 
     public on fair, reasonable, and nondiscriminatory terms;
       (iii) is subject to appropriate recordkeeping and reporting 
     requirements regarding transactions; and
       (iv) has the confidence of investors;
       (2) the market--
       (A) functions smoothly and efficiently, generating prices 
     that accurately reflect supply and demand for emission 
     allowances; and
       (B) promotes just and equitable principles of trade;
       (3) the need of market participants and regulators for 
     transparency is balanced against legitimate business concerns 
     regarding the release of confidential, proprietary 
     information;
       (4) the market is subject to effective and comprehensive 
     oversight and integrates strong enforcement mechanisms, 
     including mechanisms for cooperation with other national and 
     international oversight regimes;
       (5) an appropriate interagency forum exists--
       (A) for ongoing assessment of emerging regulatory matters 
     and information-sharing; and
       (B) to ensure regulatory coordination of the market;
       (6) the market establishes an equitable system for best 
     execution of customer orders; and
       (7) the market protects investors and the public interest.

     SEC. 412. CARBON MARKET OVERSIGHT AND REGULATION.

       (a) Delegation of Authority by President.--The President, 
     taking into consideration the recommendations of the Working 
     Group established by subsection (b), shall delegate to 
     members of the Working Group and the heads of other 
     appropriate Federal entities the authority to promulgate 
     regulations to enhance the integrity, efficiency, 
     orderliness, fairness, and competitiveness of the development 
     by the United States of a new financial market for emission 
     allowances, based on the following core principles:
       (1) The market shall--
       (A) be designed to prevent fraud and manipulation relating 
     to the trading of emission allowances and related markets, 
     which could potentially arise from many sources, including--
       (i) the concentration of market power within the control of 
     a limited number of individuals or entities; and
       (ii) the abuse of material, nonpublic information;
       (B)(i) be appropriately transparent, with real-time 
     reporting of quotes and trades; and
       (ii) make information on price, volume, and supply, and 
     other important statistical information available to the 
     public on fair, reasonable, and nondiscriminatory terms;
       (C) be subject to appropriate recordkeeping and reporting 
     requirements regarding transactions; and
       (D) have the confidence of investors.
       (2) The market shall--
       (A) function smoothly and efficiently, generating prices 
     that accurately reflect supply and demand for emission 
     allowances;
       (B) be designed to prevent excessive speculation that could 
     cause sudden or unreasonable fluctuations or unwarranted 
     changes in the price of emission allowances; and
       (C) promote just and equitable principles of trade.
       (3) The need of market participants and regulators for 
     transparency shall be balanced against legitimate business 
     concerns concerning the release of confidential, proprietary 
     information.
       (4) The market shall be subject to effective and 
     comprehensive oversight, which integrates strong enforcement 
     mechanisms, including mechanisms for cooperation with other 
     national and international oversight regimes.
       (5) There shall be an appropriate interagency forum--
       (A) for ongoing assessment of emerging regulatory matters 
     and information sharing; and
       (B) to ensure regulatory coordination of the market.
       (6) The market shall establish an equitable system for best 
     execution of customer orders.
       (7) The market shall protect investors and the public 
     interest.
       (b) Establishment.--There is established an interagency 
     working group, to be known as the ``Carbon Markets Working 
     Group'' (referred to in this section as the ``Working 
     Group'').
       (c) Membership.--The Working Group shall be composed of the 
     following members (or their designees):
       (1) The Administrator, who shall serve as Chairperson of 
     the Working Group.
       (2) The Secretary of the Treasury.
       (3) The Chairman of the Securities and Exchange Commission.
       (4) The Chairman of the Commodity Futures Trading 
     Commission.
       (5) The Chairman of the Federal Energy Regulatory 
     Commission.
       (6) Such other Executive branch officials as may be 
     appointed by the President.
       (d) Duties.--
       (1) Identification of issues and appropriate activities.--
       (A) In general.--The Working Group shall identify--
       (i) the major issues relating to the integrity, efficiency, 
     orderliness, fairness, and competitiveness of the development 
     by the United States of a new financial market for emission 
     allowances under the cap-and-trade system for emission 
     allowances established under this Act;
       (ii) any relevant recommendations provided to the Working 
     Group by Federal, State, or local governments, organizations, 
     individuals, and entities; and
       (iii) the activities, such as market regulation, policy 
     coordination, and contingency planning, that are appropriate 
     to carry out those recommendations.
       (B) Consultation.--In identifying appropriate activities 
     under subparagraph (A)(iii), the Working Group shall consult 
     with representatives of, as appropriate--
       (i) various information exchanges and clearinghouses;
       (ii) self-regulatory entities, securities exchanges, 
     transfer agents, and clearing entities;
       (iii) participants in the emission allowance trading 
     market; and
       (iv) other Federal entities, including--

       (I) the Federal Reserve; and
       (II) the Federal Trade Commission.

       (2) Study.--The Working Group shall conduct a study of the 
     major issues relating to the regulation of the emission 
     allowance trading market and other carbon markets.
       (3) Report.--Not later than 270 days after the date of 
     enactment of this Act, and annually thereafter, the Working 
     Group shall submit to the President and Congress a report 
     describing--
       (A) the progress made by the Working Group;
       (B) recommendations of the Working Group regarding any 
     regulations proposed pursuant to subsection (a);
       (C) recommendations for additional legislative action, if 
     necessary; and
       (D) a timetable for the implementation of the new 
     regulations to ensure that the regulations take effect before 
     the effective date of regulations governing the emission 
     allowance trading system.
       (4) Memoranda of understanding.--Not later than 270 days 
     after the date of enactment of this Act, the Administrator 
     shall enter into a memorandum of understanding with the head 
     of each appropriate Federal entity (including each 
     appropriate Federal entity represented by a member of the 
     Working Group, as applicable) relating to regulatory and 
     enforcement coordination, information sharing, and other 
     related matters to minimize duplicative or conflicting 
     regulatory efforts.
       (5) Regulations.--Not later than 270 days after the date of 
     enactment of this Act, the heads of other appropriate Federal 
     entities to which the President has delegated regulatory 
     authority under subsection (a) shall promulgate regulations 
     in accordance with subsection (a).
       (e) Authorities.--In promulgating and implementing 
     regulations pursuant to this section, the promulgating 
     Federal agencies shall have authorities equivalent to the 
     authorities of those agencies under existing law.
       (f) Enforcement.--Regulations promulgated under this 
     section shall--
       (1) be fully enforceable and subject to such fines and 
     penalties as are provided under the laws (including 
     regulations) administered by the Federal agency that 
     promulgated the regulations under this section; and
       (2) for the purpose of enforcement, in accordance with 
     section 1722, be considered to have been promulgated pursuant 
     to this Act.
       (g) Administration.--
       (1) Information from federal agencies.--
       (A) In general.--The Working Group may secure directly from 
     any Federal agency such information as the Working Group 
     considers necessary to carry out this section.
       (B) Provision of information.--On request of the 
     Chairperson of the Working Group, the head of the agency 
     shall provide the information to the Working Group.
       (2) Compensation of members.--A member of the Working Group 
     who is an officer or employee of the Federal Government shall 
     serve without compensation in addition to the compensation 
     received for the services of the member as an officer or 
     employee of the Federal Government.
       (3) Administrator support.--To the extent permitted by law 
     and subject to the availability of appropriations, the 
     Administrator shall provide to the Working Group such 
     administrative and support services as are necessary to 
     assist the Working Group in carrying out the duties described 
     in subsection (d).
       (h) Effect of Section.--Nothing in this section limits or 
     restricts any regulatory or enforcement authority of a 
     Federal entity as in effect on the date of enactment of this 
     Act.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

               Subtitle C--Carbon Market Efficiency Board

     SEC. 421. ESTABLISHMENT.

       There is established a board, to be known as the ``Carbon 
     Market Efficiency Board''.

[[Page S5064]]

     SEC. 422. COMPOSITION AND ADMINISTRATION.

       (a) Membership.--
       (1) Composition.--The Board shall be composed of--
       (A) 7 members who are citizens of the United States, to be 
     appointed by the President, by and with the advice and 
     consent of the Senate; and
       (B) an advisor who is a scientist with expertise in climate 
     change and the effects of climate change on the environment, 
     to be appointed by the President, by and with the advice and 
     consent of the Senate.
       (2) Requirements.--In appointing members of the Board under 
     paragraph (1), the President shall--
       (A) ensure fair representation of the financial, 
     agricultural, industrial, and commercial sectors, and the 
     geographical regions, of the United States, and include a 
     representative of consumer interests;
       (B) appoint not more than 1 member from each such 
     geographical region; and
       (C) ensure that not more than 4 members of the Board 
     serving at any time are affiliated with the same political 
     party.
       (3) Compensation.--
       (A) In general.--A member of the Board shall be compensated 
     at a rate equal to the daily equivalent of the annual rate of 
     basic pay prescribed for level II of the Executive Schedule 
     under section 5313 of title 5, United States Code, for each 
     day (including travel time) during which the member is 
     engaged in the performance of the duties of the Board.
       (B) Chairperson.--The Chairperson of the Board shall be 
     compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level I of the 
     Executive Schedule under section 5312 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Board.
       (4) Prohibitions.--
       (A) Conflicts of interest.--An individual employed by, or 
     holding any official relationship (including any shareholder) 
     with, any entity engaged in the generation, transmission, 
     distribution, or sale of energy, an individual who has any 
     pecuniary interest in the generation, transmission, 
     distribution, or sale of energy, or an individual who has a 
     pecuniary interest in the implementation of this Act, shall 
     not be appointed to the Board under this subsection.
       (B) No other employment.--A member of the Board shall not 
     hold any other employment during the term of service of the 
     member.
       (b) Term; Vacancies.--
       (1) Term.--
       (A) In general.--The term of a member of the Board shall be 
     14 years, except that the members first appointed to the 
     Board shall be appointed for terms in a manner that ensures 
     that--
       (i) the term of not more than 1 member shall expire during 
     any 2-year period; and
       (ii) no member serves a term of more than 14 years.
       (B) Oath of office.--A member shall take the oath of office 
     of the Board by not later than 15 days after the date on 
     which the member is appointed under subsection (a)(1).
       (C) Removal.--
       (i) In general.--A member may be removed from the Board on 
     determination of the President for cause.
       (ii) Notification.--Not later than 30 days before removing 
     a member from the Board for cause under clause (i), the 
     President shall provide to Congress an advance notification 
     of the determination by the President to remove the member.
       (2) Vacancies.--
       (A) In general.--A vacancy on the Board--
       (i) shall not affect the powers of the Board; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (B) Service until new appointment.--A member of the Board 
     the term of whom has expired or otherwise been terminated 
     shall continue to serve until the date on which a replacement 
     is appointed under subparagraph (A)(ii), if the President 
     determines that service to be appropriate.
       (c) Chairperson and Vice Chairperson.--Of members of the 
     Board, the President shall appoint--
       (1) 1 member to serve as Chairperson of the Board for a 
     term of 4 years; and
       (2) 1 member to serve as Vice-Chairperson of the Board for 
     a term of 4 years.
       (d) Meetings.--
       (1) Initial meeting.--The Board shall hold the initial 
     meeting of the Board as soon as practicable after the date on 
     which all members have been appointed to the Board under 
     subsection (a)(1).
       (2) Presiding officer.--A meeting of the Board shall be 
     presided over by--
       (A) the Chairperson;
       (B) in any case in which the Chairperson is absent, the 
     Vice-Chairperson; or
       (C) in any case in which the Chairperson and Vice-
     Chairperson are absent, a chairperson pro tempore, to be 
     elected by the members of the Board.
       (3) Quorum.--Four members of the Board shall constitute a 
     quorum for a meeting of the Board.
       (4) Open meetings.--The Board shall be subject to section 
     552b of title 5, United States Code (commonly known as the 
     ``Government in the Sunshine Act'').
       (e) Records.--The Board shall be subject to section 552 of 
     title 5, United States Code (commonly known as the ``Freedom 
     of Information Act'').
       (f) Review by Government Accountability Office.--Not later 
     than January 1, 2013, and annually thereafter, the 
     Comptroller General of the United States shall conduct a 
     review of the efficacy of the Board in fulfilling the 
     purposes and duties of the Board under this subtitle.

     SEC. 423. DUTIES.

       The Board shall--
       (1) gather such information as the Board determines to be 
     appropriate regarding the status of the allowance market 
     established pursuant to this Act, including information 
     relating to--
       (A) allowance allocation and availability;
       (B) the price of allowances;
       (C) macro- and micro-economic effects of unexpected 
     significant increases and decreases in allowance prices, or 
     shifts in the allowance market, should those increases, 
     decreases, or shifts occur;
       (D) the success of the market in promoting achievement of 
     the purposes of this Act;
       (E) economic effect thresholds that could warrant 
     implementation of 1 or more cost relief measures described in 
     section 521(a);
       (F) in the event any cost relief measure described in 
     section 521(a) is implemented, the effects of the measure on 
     the market; and
       (G) the minimum levels of cost relief measures that are 
     necessary to achieve avoidance of economic harm and ensure 
     achievement of the purposes of this Act;
       (2) employ cost relief measures in accordance with section 
     521; and
       (3) submit to the President and the Congress, and publish 
     on the Internet, quarterly reports--
       (A) describing--
       (i) the status of the allowance market established under 
     this Act;
       (ii) regional, industrial, and consumer responses to the 
     market and the economic costs and benefits of the market;
       (iii) where practicable, investment responses to the 
     market;
       (iv) any corrective measures that Congress should take to 
     relieve excessive net costs of the market; and
       (v) plans to compensate for any such measures, to ensure 
     that the long-term emissions reduction goals of this Act are 
     achieved;
       (B) that are timely and succinct, to ensure regular 
     monitoring of market trends; and
       (C) that are prepared independently by the Board.

              Subtitle D--Climate Change Technology Board

     SEC. 431. ESTABLISHMENT.

       There is established, as an agency of the Federal 
     Government, the Climate Change Technology Board.

     SEC. 432. PURPOSE.

       The purpose of the board established by section 431 is to 
     advance the purposes of this Act by using the funds made 
     available to the board under titles VIII through XI to 
     accelerate the commercialization and diffusion of low- and 
     zero-carbon technologies and practices.

     SEC. 433. INDEPENDENCE.

       The board established by section 431 shall have the 
     authority to distribute funds made available to the board 
     under this Act.

     SEC. 434. ADVANCE NOTIFICATION OF DISTRIBUTIONS OF FUNDS.

       Not less than 60 days before distributing any funds made 
     available under this Act to the board established by section 
     431, the board shall--
       (1) publish in the Federal Register a detailed notification 
     of the distribution; and
       (2) provide a detailed notification of the distribution 
     to--
       (A) the President;
       (B) in the Senate--
       (i) the Committee on Appropriations;
       (ii) the Committee on Banking, Housing, and Urban Affairs;
       (iii) the Committee on Budget;
       (iv) the Committee on Commerce, Science, and 
     Transportation;
       (v) the Committee on Energy and Natural Resources;
       (vi) the Committee on Environment and Public Works;
       (vii) the Committee on Finance;
       (viii) the Committee on Homeland Security and Governmental 
     Affairs; and
       (ix) the Committee on Small Business and Entrepreneurship;
       (C) in the House of Representatives--
       (i) the Committee on Appropriations;
       (ii) the Committee on Budget;
       (iii) the Committee on Energy and Commerce;
       (iv) the Committee on Natural Resources;
       (v) the Committee on Oversight and Government Reform;
       (vi) the Committee on Science and Technology;
       (vii) the Committee on Small Business;
       (viii) the Committee on Transportation and Infrastructure;
       (ix) the Committee on Ways and Means; and
       (x) the Select Committee on Energy Independence and Global 
     Warming; and
       (D) the Joint Economic Committee and Joint Committee on 
     Taxation of Congress.

     SEC. 435. CONGRESSIONAL OVERSIGHT OF BOARD EXPENDITURES.

       (a) Disapproval.--An obligation of funds for which a 
     notification is submitted under section 434 shall not occur 
     if Congress enacts legislation disapproving the obligation of 
     funds by not later than 30 days after the date of receipt of 
     the notification.
       (b) Reports.--Not later than 90 days after the end of each 
     of calendar years 2012

[[Page S5065]]

     through 2050, the board established by section 431 shall 
     submit to each committee of Congress identified in section 
     434 a report describing, with respect to that calendar year--
       (1) the actual amounts obligated during that year;
       (2) the purposes for which the amounts were obligated; and
       (3) the balance, if any, of the amounts that--
       (A) were obligated during that year; but
       (B) remain unexpended as of the date of submission of the 
     report.

     SEC. 436. REQUIREMENTS.

       (a) Composition.--The board established by section 431 
     shall be composed of 5 directors who are citizens of the 
     United States, of whom 1 shall be elected annually by the 
     board to serve as Chairperson.
       (b) Political Affiliation.--Not more than 3 directors 
     serving on the board at any time may be affiliated with the 
     same political party.
       (c) Appointment and Term.--Each director shall be appointed 
     by the President, by and with the advice and consent of the 
     Senate, for a term of 5 years.
       (d) Quorum.--Three directors shall constitute a quorum for 
     a meeting of the board.
       (e) Prohibitions.--
       (1) Conflicts of interest.--No individual employed by, or 
     holding any official relationship with (including as a 
     shareholder), any entity engaged in the sector in which 
     businesses receive distributions of funds by the board, and 
     no individual who has a pecuniary interest in the 
     implementation of this Act, shall be appointed director.
       (2) No other employment.--A director shall not hold any 
     other employment during the term of service of the director.
       (f) Vacancies.--
       (1) In general.--A vacancy on the board--
       (A) shall not affect the powers of the board, subject to 
     the condition that the board has a sufficient number of 
     directors to establish a quorum; and
       (B) shall be filled in the same manner as the original 
     appointment was made.
       (2) Service until new appointment.--A director whose term 
     has expired or who has been removed from the board shall 
     continue to serve until the date on which a replacement is 
     appointed, if the President determines that service to be 
     appropriate.
       (g) Removal.--
       (1) In general.--A director may be removed from the board 
     for cause, on determination of the President.
       (2) Notification.--Not later than 30 days before removing a 
     director for cause under paragraph (1), the President shall 
     provide to the Congress an advance notification of the 
     determination by the President to remove the director.

     SEC. 437. REVIEWS AND AUDITS BY COMPTROLLER GENERAL.

       The Comptroller General of the United States shall conduct 
     periodic reviews and audits of the efficacy of the 
     distributions of funds made by the board established by 
     section 431.

                   Subtitle E--Auction on Consignment

     SEC. 441. REGULATIONS.

       Not later than 2 years after the date of enactment of this 
     Act, the Administrator shall promulgate regulations under 
     which the Administrator shall, at the request of a recipient 
     of a distribution of emission allowances under this Act--
       (1) include those emission allowances among the quantity of 
     emission allowances sold by the Administrator at regular 
     auction under this Act; and
       (2) transfer the proceeds of the sale of those allowances 
     to the recipient.

         TITLE V--FEDERAL PROGRAM TO PREVENT ECONOMIC HARDSHIP

                          Subtitle A--Banking

     SEC. 501. EFFECT OF TIME.

       The passage of time shall not, by itself, cause an 
     allowance to be retired or otherwise diminish the compliance 
     value of the allowance.

                         Subtitle B--Borrowing

     SEC. 511. REGULATIONS.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations under which, subject to subsection (b), the owner 
     or operator of a covered entity may--
       (1) borrow emission allowances from the Administrator; and
       (2) for a calendar year, submit borrowed emission 
     allowances to the Administrator in satisfaction of up to 15 
     percent of the compliance obligation under section 202.
       (b) Limitation.--An emission allowance borrowed under 
     subsection (a) shall be an emission allowance established by 
     the Administrator for a specific future calendar year 
     pursuant to section 201(a).

     SEC. 512. TERM.

       The owner or operator of a covered entity shall not submit, 
     and the Administrator shall not accept, a borrowed emission 
     allowance in partial satisfaction of the compliance 
     obligation under section 202 for any calendar year that is 
     more than 5 years earlier than the calendar year included in 
     the identification number of the borrowed emission allowance.

     SEC. 513. REPAYMENT WITH INTEREST.

       For each borrowed emission allowance submitted in partial 
     satisfaction of the compliance obligation under section 202 
     for a particular calendar year (referred to in this section 
     as the ``use year''), the quantity of emission allowances 
     that the owner or operator is required to submit under 
     section 202 for the year from which the borrowed emission 
     allowance was taken (referred to in this section as the 
     ``source year'') shall be equal to 1.1 raised by an exponent 
     equal to the difference between the source year and the use 
     year expressed as a positive whole number.

                    Subtitle C--Emergency Off-Ramps

     SEC. 521. EMERGENCY OFF-RAMPS TRIGGERED BY BOARD.

       (a) Powers of Board.--The Board may carry out 1 or more of 
     the following cost relief measures to ensure functioning, 
     stable, and efficient markets for emission allowances:
       (1) Increase the quantity of emission allowances that 
     covered entities may borrow from the Administrator.
       (2) Expand the period during which a covered entity may 
     repay the Administrator for an emission allowance borrowed 
     under paragraph (1).
       (3) Increase the quantity of emission allowances obtained 
     on a foreign greenhouse gas emission trading market that the 
     owner or operator of any covered entity may use to satisfy 
     the allowance submission requirement of the covered entity 
     under section 201, on the condition that the Administrator 
     has certified the market in accordance with the regulations 
     promulgated pursuant to section 322.
       (4) Increase the quantity of offset allowances generated in 
     accordance with section 303 that the owner or operator of any 
     covered entity may use to satisfy the total allowance 
     submission requirement of the covered entity under section 
     201.
       (b) Subsequent Actions.--On determination by the Board to 
     carry out a cost relief measure pursuant to subsection (a), 
     the Board shall--
       (1) allow the cost relief measure to be used only during 
     the applicable allocation year;
       (2) exercise the cost relief measure incrementally, and 
     only as needed to avoid significant economic harm during the 
     applicable allocation year;
       (3) specify the terms of the relief to be achieved using 
     the cost relief measure;
       (4) in accordance with section 423, submit to the President 
     and Congress a report describing the actions carried out by 
     the Board; and
       (5) evaluate, at the end of the applicable allocation year, 
     actions that need to be carried out during subsequent years 
     to compensate for any cost relief measure carried out during 
     the applicable allocation year.
       (c) Limitations.--Nothing in this section gives the Board 
     the authority--
       (1) to consider or prescribe entity-level petitions for 
     relief from the costs of an emission allowance allocation or 
     trading program established under Federal law;
       (2) to carry out any investigative or punitive process 
     under the jurisdiction of any Federal or State court;
       (3) to interfere with, modify, or adjust any emission 
     allowance allocation scheme established under Federal law; or
       (4) to modify the total quantity of emission allowances 
     issued under this Act for the period of calendar years 2012 
     through 2050.

     SEC. 522. COST-CONTAINMENT AUCTIONS.

       (a) In General.--In December of each of calendar years 2012 
     through 2027, the Administrator shall conduct a cost-
     containment auction of emission allowances that shall be 
     separate from other auctions of emission allowances conducted 
     by the Administrator under this Act.
       (b) Restriction to Covered Entities.--In any calendar year 
     referred to in subsection (a), only covered entities that 
     were required under section 202 to submit emission allowances 
     for the preceding calendar year shall be eligible to purchase 
     emission allowances at the cost-containment auction under 
     that subsection.
       (c) Use of Emission Allowances Purchased at a Cost-
     Containment Auction.--An emission allowance purchased at a 
     cost-containment auction shall--
       (1) be submitted by the purchaser for compliance under 
     section 202 not later than 1 calendar year after the date of 
     purchase of the emission allowance; and
       (2) otherwise be valid for compliance under that section 
     irrespective of the year for which the emission allowance was 
     established by the Administrator.

     SEC. 523. COST-CONTAINMENT AUCTION PRICE.

       (a) In General.--At each cost-containment auction, the 
     Administrator shall offer emission allowances for sale 
     beginning at a minimum price, which shall be known as the 
     ``cost-containment auction price''.
       (b) Cost-Containment Auction Price in 2012.--
       (1) In general.--The cost-containment auction price for the 
     cost-containment auction that takes place in December 2012 
     shall be the price established under paragraph (2).
       (2) Initial cost-containment auction price.--
       (A) Presidential determination.--Not later than 2 years 
     after the date of enactment of this Act, the President shall 
     establish the cost-containment auction price for calendar 
     year 2012 from within the range specified in subparagraph 
     (B), the cost-containment auction price for calendar year 
     2012.
       (B) Range.--The cost-containment auction price per emission 
     allowance for December 2012 shall be--
       (i) not less than $22; and
       (ii) not more than $30.

[[Page S5066]]

       (C) Economic modeling.--The President shall establish the 
     cost-containment auction price under this paragraph based on 
     economic computer modeling relating to this Act conducted 
     by--
       (i) the Administrator; and
       (ii) the Administrator of the Energy Information 
     Administration.
       (D) Public input.--The Administrator and the Administrator 
     of the Energy Information Administration shall provide public 
     notice of, and an opportunity to comment on, the computer 
     models, assumptions, and protocols planned to be used in 
     modeling relating to this Act under subparagraph (C).
       (c) Cost-Containment Auction Price in Subsequent Years.--At 
     the cost-containment auction for each of calendar years 2013 
     through 2027, the cost-containment auction price per emission 
     allowance shall be equal to the product obtained by 
     multiplying--
       (1) the cost-containment auction price that applied to the 
     cost-containment auction that was conducted during the 
     preceding calendar year; and
       (2) the sum of--
       (A) the annual rate of United States dollar inflation for 
     the calendar year (as measured by the Consumer Price Index); 
     and
       (B) 1.05.

     SEC. 524. REGULAR AUCTION RESERVE PRICE.

       (a) In General.--At any regular auction, there shall be a 
     regular auction reserve price below which the Administrator 
     shall not sell any emission allowance.
       (b) Regular Auction Reserve Price in 2012.--At any regular 
     auction that takes place during calendar year 2012, the 
     regular auction reserve price per emission allowance shall be 
     $10.
       (c) Regular Auction Reserve Price in Subsequent Years.--For 
     each of calendar years 2013 through 2027, the regular auction 
     reserve price at any regular auction that takes place during 
     the calendar year shall be equal to the product obtained by 
     multiplying--
       (1) the regular auction reserve price that applied to each 
     regular auction conducted during the preceding calendar year; 
     and
       (2) the sum of--
       (A) the annual rate of United States dollar inflation for 
     the calendar year (as measured by the Consumer Price Index); 
     and
       (B) 1.05.

     SEC. 525. POOL OF EMISSION ALLOWANCES FOR THE COST-
                   CONTAINMENT AUCTIONS.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall establish a 
     cost-containment auction pool to reserve the emission 
     allowances that shall be offered for sale at the annual cost-
     containment auctions.
       (b) Filling the Cost-Containment Auction Pool.--
       (1) In general.--Notwithstanding section 201(a), the 
     Administrator shall, not later than 2 years after the date of 
     enactment of this Act, reserve a total of 6,000,000,000 of 
     the emission allowances established for the period of 
     calendar years 2030 through 2050 pursuant to that section and 
     transfer the emission allowances to the cost-containment 
     auction pool.
       (2) Graduated removal.--For each of calendar years 2031 
     through 2050, the quantity of emission allowances reserved 
     pursuant to paragraph (1) from the quantity established for 
     that year pursuant to section 201(a) shall be greater, by a 
     percentage that remains constant from calendar year to 
     calendar year, than the quantity reserved from the preceding 
     year.
       (c) Supplementing the Cost-Containment Auction Pool.--The 
     Administrator shall transfer to the cost-containment auction 
     pool each emission allowance that was not sold at a regular 
     auction because of the operation of the regular auction 
     reserve price.

     SEC. 526. LIMIT ON THE QUANTITY OF EMISSION ALLOWANCES SOLD 
                   AT ANY COST-CONTAINMENT AUCTION.

       (a) In General.--At each cost-containment auction, there 
     shall be a limit on the quantity of emission allowances that 
     the Administrator may sell at the auction.
       (b) Cost-Containment Auction Limit in 2012.--At the cost-
     containment auction that takes place during December 2012, 
     the cost-containment auction limit described in subsection 
     (a) shall be 450,000,000 emission allowances.
       (c) Cost-Containment Auction Limit in Subsequent Years.--At 
     the cost-containment auction during each of calendar years 
     2013 through 2027, the cost-containment auction limit 
     described in subsection (a) shall be the product obtained by 
     multiplying--
       (1) the cost-containment auction limit that applied to the 
     cost-containment auction that took place during the preceding 
     calendar year; and
       (2) 0.99.
       (d) Per-Entity Purchase Limit.--
       (1) In general.--Subject to paragraph (2), the 
     Administrator shall, by regulation, establish for each cost-
     containment auction a limitation on the number of emission 
     allowances that any single entity may purchase at the cost-
     containment auction.
       (2) Requirement.--A limitation under paragraph (1) shall be 
     established at a quantity that ensures fair access to 
     emission allowances by all covered entities that are eligible 
     to purchase emission allowances at the cost-containment 
     auction.

     SEC. 527. USING THE PROCEEDS OF THE ANNUAL COST-CONTAINMENT 
                   AUCTIONS.

       (a) Achieving Additional Emission Reductions From Un-Capped 
     Sources.--
       (1) In general.--The Administrator shall use 70 percent of 
     the proceeds from each cost-containment auction to achieve 
     additional greenhouse gas emission reductions from entities 
     that are not subject to the compliance obligation under 
     section 202.
       (2) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations to implement this subsection.
       (b) Providing Additional Relief to Energy Consumers.--The 
     Administrator shall deposit 30 percent of the proceeds from 
     each cost-containment auction in the Climate Change Consumer 
     Assistance Fund established by section 581.

     SEC. 528. RETURNING EMISSION ALLOWANCES NOT SOLD AT THE 
                   ANNUAL COST-CONTAINMENT AUCTIONS.

       (a) Order of Sale of Emission Allowances in Cost-
     Containment Auction Pool.--The Administrator shall not sell 
     at a cost-containment auction an emission allowance reserved 
     pursuant to section 525(b) from the quantity of emission 
     allowances established for a particular calendar year until 
     such time as the Administrator has sold all emission 
     allowances reserved from the quantity of emission allowances 
     established for earlier calendar years.
       (b) Return of Unsold Emission Allowances in the Cost-
     Containment Auction Pool.--Immediately prior to the cost-
     containment auction during each of calendar years 2022 
     through 2027, the Administrator shall remove from the cost-
     containment auction pool, and make subject again to 
     allocation or sale at regular auction in accordance with this 
     Act, each emission allowance that--
       (1) has, by that time, remained in the cost-containment 
     auction pool for more than 9 years; and
       (2) was established pursuant to section 201(a) for a 
     calendar year that is fewer than 10 years subsequent to the 
     calendar year during which the impending cost-containment 
     auction will occur.

     SEC. 529. DISCONTINUING THE ANNUAL COST-CONTAINMENT AUCTIONS.

       (a) In General.--Notwithstanding section 521(a), if the 
     cost-containment auction pool is exhausted at a cost-
     containment auction, the Administrator shall conduct no 
     further cost-containment auctions.
       (b) Retirement of Emission Allowances Not Sold at Regular 
     Auctions Occurring After Final Cost-Containment Auction.--
     Immediately following any regular auction that occurs after 
     the Administrator has conducted a final cost-containment 
     auction, the Administrator shall retire any emission 
     allowances not sold at that regular auction because of the 
     operation of the regular auction reserve price.

             Subtitle D--Transition Assistance for Workers

     SEC. 531. ESTABLISHMENT.

       There is established in the Treasury a fund, to be known as 
     the ``Climate Change Worker Training and Assistance Fund.''

     SEC. 532. AUCTIONS.

       (a) In General.--In accordance with subsections (b) and 
     (c), to raise funds for deposit in the Climate Change Worker 
     Training and Assistance Fund, for each of calendar years 2012 
     through 2050, the Administrator shall--
       (1) auction a quantity of the emission allowances 
     established pursuant to section 201(a) for each calendar 
     year; and
       (2) immediately upon receipt of the auction proceeds, 
     deposit the auction proceeds in the Climate Change Worker 
     Training and Assistance Fund.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.
       (c) Quantities of Emission Allowances Auctioned.--For each 
     calendar year of the period described in subsection (a), the 
     Administrator shall auction a quantity of emission allowances 
     in accordance with the applicable percentages described in 
     the following table:


------------------------------------------------------------------------
                                              Percentage for auction for
                                                 Climate Change Worker
                Calendar Year                   Training and Assistance
                                                         Fund
------------------------------------------------------------------------
2012........................................  1
2013........................................  1
2014........................................  1
2015........................................  1
2016........................................  1
2017........................................  1
2018........................................  2
2019........................................  2
2020........................................  2
2021........................................  2
2022........................................  2
2023........................................  2
2024........................................  2
2025........................................  2
2026........................................  2
2027........................................  2
2028........................................  3
2029........................................  3
2030........................................  3
2031........................................  4
2032........................................  4

[[Page S5067]]

 
2033........................................  4
2034........................................  4
2035........................................  4
2036........................................  4
2037........................................  4
2038........................................  4
2039........................................  3
2040........................................  3
2041........................................  3
2042........................................  3
2043........................................  3
2044........................................  3
2045........................................  3
2046........................................  3
2047........................................  3
2048........................................  3
2049........................................  3
2050........................................  3.
------------------------------------------------------------------------

     SEC. 533. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 532, immediately upon receipt 
     of those proceeds, in the Climate Change Worker Training and 
     Assistance Fund.

     SEC. 534. USES.

       (a) Energy Efficiency and Renewable Energy Worker Training 
     Program.--For each of calendar years 2012 through 2050, 30 
     percent of the funds deposited in the Climate Change Worker 
     Training and Assistance Fund for the preceding year under 
     section 533 shall be made available, without further 
     appropriation or fiscal year limitation, to carry out the 
     Energy Efficiency and Renewable Energy Worker Training 
     Program established by section 171(e) of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2916(e)).
       (b) Climate Change Worker Adjustment Program.--For each of 
     calendar years 2012 through 2050, 60 percent of the funds 
     deposited in the Climate Change Worker Training and 
     Assistance Fund for the preceding year under section 533 
     shall be made available, without further appropriation or 
     fiscal year limitation, to carry out the Climate Change 
     Worker Assistance Program established pursuant to section 
     535.
       (c) Workforce Training and Safety.--For each of calendars 
     year 2012 through 2050, 10 percent of the funds deposited in 
     the Climate Change Worker Training and Assistance Fund for 
     the preceding year under section 533 shall be made available, 
     without further appropriation or fiscal year limitation, to 
     carry out section 536.

     SEC. 535. CLIMATE CHANGE WORKER ASSISTANCE PROGRAM.

       (a) Purpose.--The purpose of this section is to ensure that 
     any individual workers and groups of employees that are 
     adversely affected by Federal policy and climate change 
     legislation receive the benefits, skill training, retraining, 
     and job search assistance that will enable the workers and 
     groups to maintain self-sufficiency and obtain family-
     sustaining jobs that contribute to overall economic 
     productivity, international competitiveness, and the positive 
     quality of life expected by all individuals in the United 
     States.
       (b) Definitions.--In this section:
       (1) Deputy assistant secretary.--The term ``Deputy 
     Assistant Secretary'' means the Deputy Assistant Secretary 
     for Climate Change Adjustment Assistance appointed under 
     subsection (e)(2).
       (2) MASC.--The term ``MASC'' means the Multi-Agency 
     Steering Committee established under subsection (d)(1).
       (3) Office.--The term ``Office'' means the Office of 
     Climate Change Adjustment Assistance established by 
     subsection (e).
       (4) Program.--The term ``Program'' means the Climate Change 
     Worker Adjustment Assistance Program established under 
     regulations promulgated under subsection (c).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
       (c) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the Administrator, the Secretary of Energy, and the Secretary 
     of Commerce, shall promulgate regulations to establish a 
     Climate Change Worker Adjustment Assistance Program to 
     achieve the purpose of this section.
       (d) Multi-Agency Steering Committee.--
       (1) In general.--The Secretary shall establish a Multi-
     Agency Steering Committee.
       (2) Composition.--The MASC shall be--
       (A) composed of representatives of the Secretary, the 
     Secretary of Commerce, and the Secretary of Energy; and
       (B) chaired by the Administrator.
       (3) Activities.--The MASC shall--
       (A) not later than 60 days after the date of enactment of 
     this Act, negotiate and sign a memorandum of understanding 
     that affirms the commitment of relevant Federal agencies to 
     work cooperatively to carry out the activities of the 
     Program;
       (B) not later than 120 days after the date of enactment of 
     this Act, establish a National Climate Change Advisory 
     Committee (referred to in this subsection as the ``Advisory 
     Committee''), which shall be composed of an equal number of 
     representatives, to be nominated by the Speaker of the House 
     of Representatives and the Majority Leader of the Senate, of 
     labor organizations (as defined in section 401.9 of title 29, 
     Code of Federal Regulations (as in effect on the date of 
     enactment of this Act)) and business organizations to advise 
     the MASC on--
       (i) the strategic plan and the structure and operation of 
     the Program;
       (ii) the content of applicable regulations; and
       (iii) industry trends, workforce developments, and other 
     matters relating to the impact of Federal climate change 
     legislation;
       (C)(i) not later than 120 days after the date of enactment 
     of this Act, hold planning meetings; and
       (ii) not later than 270 days after the date of enactment of 
     this Act, formulate a comprehensive strategic plan for 
     addressing impacts of Federal climate change legislation on 
     each segment of the workforce;
       (D) report the anticipated results of the strategic plan to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate;
       (E) submit to the President and Congress an annual report 
     on the performance, achievements, and challenges of the 
     Program; and
       (F) meet as often as necessary, but not less often than 
     quarterly, in person--
       (i) to monitor the administration of the Program; and
       (ii) to ensure that the Program is being carried out by the 
     Office in a manner consistent with the purpose of the 
     Program.
       (e) Office of Climate Change Adjustment Assistance.--
       (1) Establishment.--There is established in the Department 
     of Labor an office to be known as the ``Office of Climate 
     Change Adjustment Assistance''.
       (2) Head of office.--The head of the Office shall be the 
     Deputy Assistant Secretary for Climate Change Adjustment 
     Assistance, who shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (3) Principal functions.--The principal functions of the 
     Deputy Assistant Secretary shall be--
       (A) to oversee and implement the administration of the 
     Program; and
       (B) to carry out functions delegated to and by the 
     Secretary under this section.
       (f) Program Administration.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations for administration of the Program.
       (2) Coordination.--The Secretary shall develop the 
     regulations in consultation with--
       (A) the MASC;
       (B) the Committee on Ways and Means of the House of 
     Representatives;
       (C) the Committee on Education and Labor of the House of 
     Representatives;
       (D) the Committee on Finance of the Senate; and
       (E) the Committee on Health, Education, Labor, and Pensions 
     of the Senate.
       (3) Inclusions.--The regulations shall include definitions 
     of and procedures for--
       (A) the provision of comprehensive information to workers 
     about the benefit allowances, training, and other employment 
     services available under this section (including application 
     procedures, and the appropriate filing dates, for the 
     allowances, training, and services);
       (B) the filing of petitions for certification of 
     eligibility for workers to apply for climate change 
     adjustment assistance, including mechanisms to ensure rapid 
     response to filed petitions;
       (C) the establishment of eligibility requirements for 
     eligible climate change training and assistance benefits and 
     the terms of the disbursal of any assistance benefits;
       (D) requests for a hearing by a petitioner, or any other 
     person or organization with a substantial interest in the 
     proceedings;
       (E) an appeals process;
       (F) termination of any certification eligibility;
       (G) certification of eligibility requirements for a group 
     of workers, adversely affected secondary workers, and 
     industry-wide certification, including a mechanism by which 
     the Secretary will notify each Governor of a State in which 
     workers are located of the certification; and
       (H) a means of ensuring publication of any determinations 
     in the Federal Register and on the website of the Department 
     of Labor.
       (g) Program Benefits.--
       (1) Definitions.--In this subsection:
       (A) Base replacement wage amount.--The term ``base 
     replacement wage amount'' means, as determined by the case 
     manager of an applicant, the total weekly wages or salary of 
     the applicant at the most recent position held by the 
     applicant at a firm or public agency before the date on which 
     the position of the applicant was partially or totally 
     terminated by the firm or public agency.
       (B) Climate change readjustment allowance.--The term 
     ``climate change readjustment allowance'' means a regular 
     payment made to an applicant that, in combination with 
     unemployment insurance payments made to the applicant, is 
     equal to the base replacement wage amount.
       (C) Health care benefit replacement amount.--The term 
     ``health care benefit replacement amount'' means, as 
     determined by the case manager of an applicant who is 
     eligible to receive a climate change readjustment allowance, 
     a regular payment made to a health care provider to allow the 
     applicant to maintain health care benefits, for the applicant 
     and the family of the applicant, with no loss of service, 
     during the period for which the applicant is eligible to 
     receive the climate change readjustment allowance.

[[Page S5068]]

       (2) Climate change adjustment assistance.--The Secretary 
     shall determine, in consultation with the MASC and the 
     National Climate Change Advisory Committee, the types of 
     climate change training and assistance benefits that should 
     be provided under the Program.
       (3) Types of eligible assistance.--Benefits eligible to be 
     disbursed under the Program include a payment of--
       (A) a climate change readjustment allowance; and
       (B) a health care benefit replacement amount.
       (4) Limitations on climate change readjustment 
     allowances.--An eligible worker may receive the benefits 
     described in subparagraphs (A) and (B) of paragraph (3) for a 
     duration of not longer than 3 years.
       (5) Payments as a bridge to retirement.--A worker eligible 
     to receive climate change adjustment assistance may apply for 
     a lump sum payment to be paid to a retirement plan in order 
     to qualify for retirement under the rules and regulations of 
     that plan.
       (6) Employment and case management services.--The Secretary 
     shall provide, through agreements with State employment 
     services agencies, to adversely affected workers covered by a 
     certification of eligibility for a climate change 
     readjustment allowance, the following employment and case 
     management information and services:
       (A) Comprehensive and specialized assessment of skill 
     levels and service needs, including through--
       (i) diagnostic testing and use of other assessment tools; 
     and
       (ii) in-depth interviewing and evaluation to identify 
     employment barriers and appropriate employment goals.
       (B) Development of an individual employment plan to 
     identify employment goals and objectives, and appropriate 
     training to achieve those goals and objectives.
       (C) Information on--
       (i) training available in local and regional areas;
       (ii) individual counseling to determine which training is 
     most suitable; and
       (iii) information on how to apply for that training.
       (D) Information on how to apply for financial aid, 
     including--
       (i) referring workers to educational opportunity centers 
     under section 402F of the Higher Education Act of 1965 (20 
     U.S.C. 1070a-16), where applicable; and
       (ii) notifying workers that the workers may ask financial 
     aid administrators at institutions of higher education to 
     allow use of their current year income in the financial aid 
     process.
       (E) Short-term provisional services, including development 
     of learning skills, communications skills, interviewing 
     skills, punctuality, personal maintenance skills, and 
     professional conduct to prepare individuals for employment or 
     training.
       (F) Individual career counseling, including job search and 
     placement counseling, during the period in which the 
     individual is receiving climate change readjustment 
     allowances under this section, and for the purpose of job 
     placement after receiving that training.
       (G) Provision of employment statistics information, 
     including the provision of accurate information relating to 
     local, regional, and national labor market areas, including--
       (i) job vacancy listings in those labor market areas;
       (ii) information on job skills necessary to obtain jobs 
     identified in job vacancy listings described in clause (i);
       (iii) information relating to local occupations that are in 
     demand and earnings potential of those occupations; and
       (iv) skill requirements for local occupations described in 
     clause (iii).
       (H) Supportive services, including services relating to 
     child care, transportation, dependent care, housing 
     assistance, and need-related payments that are necessary to 
     enable an individual to participate in training.
       (7) State administration of worker assistance.--A State 
     employment security agency, acting pursuant to an agreement 
     with the Secretary, shall carry out such administrative 
     activities (including using State agency personnel employed 
     in accordance with applicable standards for a merit system of 
     personnel administration) as are necessary for the proper and 
     efficient operation of the Program, including--
       (A) making determinations of eligibility for, and payment 
     of, climate change readjustment allowances and health care 
     benefit replacement amounts;
       (B) developing recommendations regarding use of those 
     payments as a bridge to retirement in accordance with this 
     subsection; and
       (C) the provision of employment and case management 
     services to eligible workers as described in paragraph (6).
       (h) Training.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall establish 
     procedures for the allocation among States, for each fiscal 
     year, of funds available to pay the costs of training for 
     climate change adjustment assistance-eligible individuals 
     under this section.
       (2) Inclusion in strategic plan.--The procedures 
     established under paragraph (1) shall be described in the 
     strategic plan described in subsection (d)(3)(C)(ii).
       (3) Distribution.--In establishing and implementing the 
     procedures under paragraph (1), the Secretary shall--
       (A) provide for at least 3 distributions of funds available 
     for training during a fiscal year; and
       (B) during the first such distribution for a fiscal year, 
     disburse not more than 50 percent of the total amount of 
     funds available to a State for training for that fiscal year.
       (4) Approval of training.--
       (A) In general.--If the Secretary makes a determination 
     described in subparagraph (B), the Secretary shall approve 
     training described in that subparagraph for the worker.
       (B) Determination.--The determination referred to in 
     subparagraph (A) is a determination that--
       (i) a worker would benefit from appropriate training;
       (ii) there is reasonable expectation of employment 
     following completion of the training;
       (iii) training approved by the Secretary is reasonably 
     available to the worker from government agencies or a private 
     source;
       (iv) the worker is qualified to undertake and complete the 
     training; and
       (v) the training is suitable for the worker and available 
     at a reasonable cost.
       (C) Payment.--A worker approved to receive training under 
     this paragraph shall be entitled to have payment of the costs 
     of the training (subject to applicable limitations under this 
     section) paid on behalf of the Secretary directly or through 
     a voucher system.
       (5) Training programs.--The training programs for which a 
     worker may be approved under paragraph (4) include--
       (A) employer-based training, including on-the-job training, 
     customized training, and skill upgrading for incumbent 
     workers;
       (B) any training program provided by a State pursuant to 
     title I of the Workforce Investment Act of 1998 (29 U.S.C. 
     2801 et seq.);
       (C) any training program provided by a workforce investment 
     board established under section 111 of that Act (29 U.S.C. 
     2821);
       (D) any program of remedial education;
       (E) skill development and training for jobs relating to 
     renewable energy, low- or zero-carbon technologies, energy 
     efficiency, and the remediation and cleanup of 
     environmentally distressed areas; and
       (F) any other training program approved by the Secretary.
       (6) Regulations.--The Secretary shall promulgate 
     regulations that establish criteria for use in carrying out 
     this subsection.
       (7) Supplemental assistance.--The Secretary may, as 
     appropriate, authorize supplemental assistance that is 
     necessary to defray reasonable transportation and subsistence 
     expenses for separate maintenance in a case in which training 
     for a worker is provided in a facility that is not within 
     commuting distance of the regular place of residence of the 
     worker.
       (8) Additional on-the-job training.--Under the Program, the 
     Secretary may provide funds to be used as job search 
     allowances and relocation allowances.
       (9) Labor consultation.--If a labor organization represents 
     a substantial number of workers who are engaged in similar 
     work or training in a geographical area that is the same as 
     the geographical area that is proposed to be funded under 
     this section, the labor organization shall be provided an 
     opportunity to be consulted and to submit comments with 
     respect to the proposal.
       (i) Consistency With Current Labor Laws.--The Secretary 
     shall determine which Federal worker protection, 
     nondiscrimination requirements, and labor standards apply to 
     the Program.

     SEC. 536. WORKFORCE TRAINING AND SAFETY.

       (a) Definition of Zero- and Low-Emitting Carbon Energy 
     Technology.--In this section, the term ``zero- and low-
     emitting carbon energy technology'' means any technology that 
     has a rated capacity of at least 750 megawatts of power.
       (b) Education Programs.--In order to enhance the 
     educational opportunities and safety of future generations of 
     scientists, engineers, heath physicists, and energy workforce 
     employees, funds made available under section 534(c) shall be 
     used for programs to assist institutions of education in the 
     United States--
       (1) to remain at the forefront of science education and 
     research;
       (2) to operate advanced energy research facilities and 
     carry out other related educational activities; and
       (3) to conduct climate change science and policy education.
       (c) Workforce Training.--
       (1) In general.--The Secretary of Labor shall promulgate 
     regulations--
       (A) to implement a program to provide workforce training to 
     meet the high demand for workers skilled in zero- and low-
     emitting carbon energy technologies;
       (B) to implement programs for--
       (i) electrical craft certification;
       (ii) career and technology awareness at the primary and 
     secondary education levels;
       (iii) preapprenticeship career technical education for all 
     zero- and low-emitting carbon energy technologies relating to 
     industrial skilled crafts;
       (iv) community college and skill center training for zero- 
     and low-emitting carbon energy technology technicians;
       (v) training of construction management personnel for zero- 
     and low-carbon emitting carbon energy technology construction 
     projects; and
       (vi) regional grants for integrated zero- and low-emitting 
     carbon energy technology workforce development programs; and
       (C) to ensure the safety of workers in the fields described 
     in subparagraphs (A) and (B).

[[Page S5069]]

       (2) Consultation.--In carrying out this subsection, the 
     Secretary of Labor shall consult with relevant Federal 
     agencies, representatives of the zero- and low-carbon 
     emitting technologies industries, and organized labor 
     regarding the skills and safety measures required in those 
     industries.

  Subtitle E--Transition Assistance for Carbon-Intensive Manufacturers

     SEC. 541. ALLOCATION.

       (a) In General.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2030, the 
     Administrator shall allocate a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for that calendar year for distribution among owners and 
     operators of carbon-intensive manufacturing facilities in the 
     United States.
       (b) Quantities of Emission Allowances Allocated.--The 
     quantities of emission allowances allocated pursuant to 
     subsection (a) shall be the quantities represented by the 
     percentages in the following table:


------------------------------------------------------------------------
                                             Percentage for distribution
                                                among carbon-intensive
               Calendar Year                 manufacturing facilities in
                                                    United States
------------------------------------------------------------------------
2012.......................................  11
2013.......................................  11
2014.......................................  11
2015.......................................  11
2016.......................................  11
2017.......................................  11
2018.......................................  11
2019.......................................  11
2020.......................................  11
2021.......................................  11
2022.......................................  10
2023.......................................  9
2024.......................................  7
2025.......................................  6
2026.......................................  5
2027.......................................  4
2028.......................................  3
2029.......................................  2
2030.......................................  1.
------------------------------------------------------------------------

     SEC. 542. DISTRIBUTION.

       (a) Definitions.--In this section:
       (1) Currently operating facility.--The term ``currently 
     operating facility'' means an eligible manufacturing facility 
     that had significant operations during the calendar year 
     preceding the calendar year for which emission allowances are 
     distributed under this section.
       (2) Eligible manufacturing facility.--
       (A) In general.--The term ``eligible manufacturing 
     facility'' means a manufacturing facility located in the 
     United States that principally manufacturers iron, steel, 
     pulp, paper, cement, rubber, chemicals, glass, ceramics, 
     sulfur hexafluoride, or aluminum and other nonferrous metals.
       (B) Exclusion.--The term ``eligible manufacturing 
     facility'' does not include a facility eligible to receive 
     emission allowances under subtitle F or H.
       (3) Indirect carbon dioxide emissions.--The term ``indirect 
     carbon dioxide emissions'' means the product obtained by 
     multiplying (as determined by the Administrator)--
       (A) the quantity of electricity consumption at an eligible 
     manufacturing facility; and
       (B) the rate of carbon dioxide emission per kilowatt-hour 
     output for the region in which the manufacturer is located.
       (4) New entrant manufacturing facility.--The term ``new 
     entrant manufacturing facility'', with respect to a calendar 
     year, means an eligible manufacturing facility that began 
     operation during or after the calendar year for which 
     emission allowances are being distributed under this section.
       (b) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a system for distributing, for each 
     of calendar years 2012 through 2030, among owners and 
     operators of individual carbon-intensive manufacturing 
     facilities in the United States, the emission allowances 
     allocated for that year by section 541.
       (c) Total Allocation for Currently Operating Facilities.--
     As part of the system established under subsection (b), the 
     Administrator shall, for each calendar year, distribute 96 
     percent of the total quantity of emission allowances 
     available for allocation to owners and operators of carbon-
     intensive manufacturing facilities under section 541 to 
     owners and operators currently operating those facilities.
       (d) Total Allocation for Currently Operating Facilities in 
     Each Category of Manufacturing.--The regulations promulgated 
     under subsection (b) shall provide that the quantity of 
     emission allowances distributed by the Administrator for a 
     calendar year to facilities in each category of currently 
     operating facilities shall be equal to the product obtained 
     by multiplying--
       (1) the total quantity of emission allowances available for 
     allocation under section 541; and
       (2) the ratio that (during the calendar year preceding the 
     calendar year for which emission allowances are being 
     distributed under this section)--
       (A) the sum of the average annual direct and indirect 
     carbon dioxide equivalent emissions during the 3-calendar-
     year period immediately preceding the year of distribution 
     under this section by currently operating facilities in the 
     category; bears to
       (B) the sum of the average annual direct and indirect 
     carbon dioxide equivalent emissions during the 3-calendar-
     year period immediately preceding the year of distribution 
     under this section by all currently operating facilities.
       (e) Individual Allocations to Currently Operating 
     Facilities.--The regulations promulgated under subsection (b) 
     shall provide that the quantity of emission allowances 
     distributed by the Administrator for a calendar year to the 
     owner or operator of a currently operating facility shall be 
     a quantity equal to the product obtained by multiplying--
       (1) the total quantity of emission allowances available for 
     allocation to owners and operators of currently operating 
     facilities in the appropriate category, as determined under 
     subsection (c); and
       (2) the proportion that, during the 3-calendar-year period 
     immediately preceding the calendar year for which emission 
     allowances are being distributed under this section--
       (A) the sum of the average annual direct and indirect 
     carbon dioxide equivalent emissions during the 3-calendar-
     year period immediately preceding the calendar year under 
     this section by the facility; bears to
       (B) the sum of the average annual direct and indirect 
     carbon dioxide equivalent emissions during the 3-calendar-
     year period immediately preceding the calendar year under 
     this section of all currently operating facilities in the 
     same category.
       (f) Energy Intensity-Based Allocation.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report containing an analysis of the feasibility 
     of distributing a portion or all of the emission allowances 
     distributed under this section to single facilities on an 
     energy-intensity basis.
       (2) Regulations.--If the report under paragraph (1) 
     contains a determination by the Administrator that an energy 
     intensity-based distribution program would encourage 
     efficiency, and would not cause undue economic harm, the 
     Administrator, not later than 18 months after the date of 
     submission of the report, shall promulgate regulations 
     establishing a program to supplement or replace the emission 
     allowance allocations required under subsection (d) for any 
     industry category or subcategory that the Administrator 
     determines to be appropriately benchmarked.
       (g) Individual Allocation to New Entrant Manufacturing 
     Facilities.--
       (1) In general.--As part of the system established under 
     subsection (b), the Administrator shall, for each calendar 
     year, distribute 4 percent of the total quantity of emission 
     allowances available for allocation to owners and operators 
     of carbon-intensive manufacturing facilities under section 
     541 to those manufacturing facilities that are new entrant 
     manufacturing facilities.
       (2) Individual allocation.--Subject to paragraph (3), the 
     quantity of emission allowances distributed by the 
     Administrator for a calendar year to the owner or operator of 
     a new entrant manufacturing facility shall equal the product 
     obtained by multiplying--
       (A) the total quantity of emission allowances available for 
     allocation under paragraph (1); and
       (B) the proportion that--
       (i) the estimated direct and indirect carbon dioxide 
     equivalent emissions of the individual new entrant 
     manufacturing facility during the preceding calendar year; 
     bears to
       (ii) the sum of the estimated direct and indirect carbon 
     dioxide equivalent emissions of all new entrant manufacturing 
     facilities during the preceding calendar year.
       (3) Maximum allocation.--In no case may the quantity of 
     emission allowances allocated to a new entrant manufacturing 
     facility under this subsection exceed the quantity that would 
     have been allocated to the new entrant manufacturing facility 
     if the new entrant manufacturing facility had been a 
     currently operating facility during the preceding calendar 
     year.
       (h) Facilities That Shut Down.--
       (1) In general.--The system established pursuant to 
     subsection (b) shall ensure, notwithstanding any other 
     provision of this subtitle, that--
       (A) emission allowances are not distributed to an owner or 
     operator of any facility that has been permanently shut down 
     at the time of distribution;
       (B) the owner or operator of any facility that permanently 
     shuts down in a calendar year shall promptly return to the 
     Administrator any emission allowances that the Administrator 
     has distributed for that facility for any subsequent calendar 
     years; and
       (C) if a facility receives a distribution of emission 
     allowances under this subtitle for a calendar year and 
     subsequently permanently shuts down during that calendar 
     year, the owner or operator of the facility shall promptly 
     return to the Administrator a number of emission allowances 
     equal to the number that the Administrator determines is the 
     portion that the owner or operator will no longer need to 
     submit for that facility under section 202.
       (2) Exemption.--Subparagraphs (B) and (C) of paragraph (1) 
     shall not apply if an owner or operator of a facility 
     demonstrates to the Administrator that, not later than 2 
     years after the date on which the facility shut down, the 
     owner or operator will open a comparable new facility, or 
     increase the capacity of an existing facility by a comparable 
     capacity, within the United States.

[[Page S5070]]

       (i) Petroleum Refiners.--The Administrator may include, in 
     the system established pursuant to subsection (b), provisions 
     for distributing not more than 10 percent of the emission 
     allowances allocated pursuant to section 541 for each 
     calendar year solely among owners and operators of entities 
     that manufacture in the United States petroleum-based liquid 
     or gaseous fuel, in recognition of the direct emission of 
     carbon dioxide by those entities in the manufacture of those 
     fuels.

  Subtitle F--Transition Assistance for Fossil Fuel-Fired Electricity 
                               Generators

     SEC. 551. ALLOCATION.

       (a) In General.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2030, the 
     Administrator shall allocate a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for that calendar year for distribution among owners and 
     operators of fossil fuel-fired electricity generators in the 
     United States.
       (b) Quantities of Emission Allowances Allocated.--The 
     quantities of emission allowances allocated pursuant to 
     subsection (a) shall be the quantities represented by the 
     percentages in the following table:


------------------------------------------------------------------------
                                Percentage for distribution among fossil
        Calendar year             fuel-fired electricity generators in
                                             United States
------------------------------------------------------------------------
2012.........................  18
2013.........................  18
2014.........................  18
2015.........................  18
2016.........................  17.75
2017.........................  17.5
2018.........................  17.25
2019.........................  16.25
2020.........................  15
2021.........................  13.5
2022.........................  11.25
2023.........................  10.25
2024.........................  9
2025.........................  8.75
2026.........................  5.75
2027.........................  4.5
2028.........................  4.25
2029.........................  3
2030.........................  2.75.
------------------------------------------------------------------------

     SEC. 552. DISTRIBUTION.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a system for distributing, for each 
     of calendar years 2012 through 2030, among owners and 
     operators of individual fossil fuel-fired electricity 
     generators in the United States, the emission allowances 
     allocated for that year by section 551.
       (b) Calculation.--The regulations promulgated pursuant to 
     subsection (a) shall provide that the quantity of emission 
     allowances distributed to the owner or operator of an 
     individual fossil fuel-fired electricity generator for a 
     calendar year shall be equal to the product obtained by 
     multiplying--
       (1) the quantity of emission allowances allocated pursuant 
     to section 551; and
       (2) the quotient obtained by dividing--
       (A) the average annual quantity of carbon dioxide 
     equivalents emitted by the fossil fuel-fired electricity 
     generator during the 3 calendar years preceding the date of 
     enactment of this Act; by
       (B) the average annual quantity of carbon dioxide 
     equivalents emitted by all fossil fuel-fired electricity 
     generators during those 3 calendar years.
       (c) Rural Electric Cooperatives.--
       (1) In general.--The Administrator shall include, in the 
     regulations promulgated pursuant to subsection (a), 
     provisions for distributing solely among rural electric 
     cooperatives not more than 5 percent of the emission 
     allowances allocated pursuant to section 551 for each 
     calendar year.
       (2) Pilot program.--
       (A) In general.--In carrying out paragraph (1), the 
     Administrator shall establish a pilot program to distribute, 
     to rural electric cooperatives in the States described in 
     subparagraph (B), for each of calendar years 2012 through 
     2029, 15 percent of the total number of emission allowances 
     allocated for the calendar year to rural electric 
     cooperatives under section 551.
       (B) Description of states.--The States referred to in 
     subparagraph (A) are--
       (i) 1 State located east of the Mississippi River in which 
     13 rural electric cooperatives sold to consumers in that 
     State electricity in a quantity of 9,000,000 to 10,000,000 
     megawatt-hours, according to data of the Energy Information 
     Administration for calendar year 2005; and
       (ii) 1 State located west of the Mississippi River in which 
     30 rural electric cooperatives sold to consumers in that 
     State electricity in a quantity of 3,000,000 to 4,000,000 
     megawatt-hours, according to data of the Energy Information 
     Administration for calendar year 2005.
       (C) Limitation.--No rural electric cooperative that 
     receives emission allowances under this paragraph shall 
     receive any additional emission allowance under subtitle A or 
     the regulations promulgated under subsection (a).
       (D) Report.--Not later than January 1, 2015, and every 3 
     years thereafter, the Administrator shall submit to Congress 
     a report describing the success of the pilot program 
     established under this paragraph, including a description 
     of--
       (i) the benefits realized by ratepayers of the rural 
     electric cooperatives that receive allowances under the pilot 
     program; and
       (ii) the use by those rural electric cooperatives of 
     advanced, low greenhouse gas-emitting electric generation 
     technologies, if any.

 Subtitle G--Transition Assistance for Refiners of Petroleum-Based Fuel

     SEC. 561. ALLOCATION.

       (a) First Period.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2017, the 
     Administrator shall allocate 2 percent of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for that calendar year for distribution among owners and 
     operators of entities that manufacture petroleum-based liquid 
     or gaseous fuel in the United States.
       (b) Second Period.--Not later than 330 days before the 
     beginning of each of calendar years 2018 through 2030, the 
     Administrator shall allocate 1 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year for distribution among owners and operators of 
     entities described in subsection (a).

     SEC. 562. DISTRIBUTION.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a system for distributing, among 
     owners and operators of individual entities described in 
     section 561, for each calendar year identified in that 
     section, the emission allowances allocated for that year by 
     that section.
       (b) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall--
       (1) provide that the quantity of emission allowances 
     distributed to the owner or operator of an entity described 
     in section 561 for a calendar year identified in that section 
     shall be the product obtained by multiplying--
       (A) the quantity of emission allowances allocated for that 
     year by section 561; by
       (B) the quotient obtained by dividing--
       (i) the annual average quantity of units of petroleum-based 
     liquid or gaseous fuel that the entity manufactured in the 
     United States during the 3 calendar years preceding the date 
     of distribution of emission allowances; by
       (ii) the annual average quantity of petroleum-based liquid 
     or gaseous fuel that all entities described in section 561 
     manufactured in the United States during the 3 calendar years 
     preceding the date of distribution of emission allowances; 
     and
       (2) notwithstanding paragraph (1), provide for appropriate 
     adjustments to reflect the effects of subsections (b)(2), 
     (c), and (h) of section 202.

      Subtitle H--Transition Assistance for Natural-Gas Processors

     SEC. 571. ALLOCATION.

       Not later than 330 days before the beginning of each of 
     calendar years 2012 through 2030, the Administrator shall 
     allocate 0.75 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar year 
     for distribution among owners and operators of--
       (1) natural gas processing plants in the United States 
     (other than in the State of Alaska);
       (2) entities that produce natural gas in the State of 
     Alaska or the Federal waters of the outer Continental Shelf 
     off the coast of that State; and
       (3) entities that hold title to natural gas, including 
     liquefied natural gas, or natural-gas liquid at the time of 
     importation into the United States.

     SEC. 572. DISTRIBUTION.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a system for distributing, among 
     owners and operators of individual entities described in 
     section 571, for each calendar year identified in that 
     section, the emission allowances allocated for that year by 
     that section.
       (b) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall--
       (1) provide that the quantity of emission allowances 
     distributed to the owner or operator of an entity described 
     in section 571 for a calendar year identified in that section 
     shall be the product obtained by multiplying--
       (A) the quantity of emission allowances allocated for that 
     year by section 571; by
       (B) the quotient obtained by dividing--
       (i) the annual average quantity, during the 3 calendar 
     years preceding the date of distribution of emission 
     allowances, of units of--

       (I) natural gas processed in the United States by the 
     entity (other than in the State of Alaska);
       (II) natural gas produced in the State of Alaska or the 
     Federal waters of the outer Continental Shelf off the coast 
     of that State by the entity and not reinjected into the 
     field; and
       (III) natural gas, including liquefied natural gas, and 
     natural-gas liquids to which the entity held title at the 
     time of importation into the United States; by

       (ii) the annual average quantity, over the 3 calendar years 
     preceding the date of distribution of emission allowances, of 
     units of--

       (I) natural gas processed in the United States by the 
     entities described in section 571 (other than in the State of 
     Alaska);

[[Page S5071]]

       (II) natural gas produced in the State of Alaska or the 
     Federal waters of the outer Continental Shelf off the coast 
     of that State by the entities described in section 571 and 
     not reinjected into the field; and
       (III) natural gas, including liquefied natural gas, and 
     natural-gas liquids to which the entities described in 
     section 571 held title at the time of importation into the 
     United States; and

       (2) notwithstanding paragraph (1), provide for appropriate 
     adjustments to reflect the effects of subsections (b)(2) and 
     (c) of section 202.

            Subtitle I--Federal Program for Energy Consumers

     SEC. 581. ESTABLISHMENT.

       There is established in the Treasury a fund, to be known as 
     the ``Climate Change Consumer Assistance Fund''.

     SEC. 582. AUCTION.

       (a) In General.--In accordance with subsections (b) and 
     (c), to raise funds for deposit in the Climate Change 
     Consumer Assistance Fund, for each of calendar years 2012 
     through 2050, the Administrator shall--
       (1) auction a quantity of the emission allowances 
     established pursuant to section 201(a) for each calendar 
     year; and
       (2) immediately upon receipt of the auction proceeds, 
     deposit the auction proceeds in the Climate Change Consumer 
     Assistance Fund.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.
       (c) Quantities of Emission Allowances Auctioned.--For each 
     calendar year of the period described in subsection (a), the 
     Administrator shall auction a quantity of emission allowances 
     in accordance with the applicable percentages described in 
     the following table:


----------------------------------------------------------------------------------------------------------------
                                                  Percentage for auction for Climate Change Consumer Assistance
                 Calendar Year                                                 Fund
----------------------------------------------------------------------------------------------------------------
2012...........................................  3.5
2013...........................................  3.75
2014...........................................  3.75
2015...........................................  4
2016...........................................  4.25
2017...........................................  4.5
2018...........................................  5
2019...........................................  6
2020...........................................  6
2021...........................................  6
2022...........................................  7
2023...........................................  7
2024...........................................  8
2025...........................................  8
2026...........................................  9
2027...........................................  10
2028...........................................  10
2029...........................................  11
2030...........................................  12
2031...........................................  14
2032...........................................  14
2033...........................................  14
2034...........................................  15
2035...........................................  15
2036...........................................  15
2037...........................................  15
2038...........................................  15
2039...........................................  15
2040...........................................  15
2041...........................................  15
2042...........................................  15
2043...........................................  15
2044...........................................  15
2045...........................................  15
2046...........................................  15
2047...........................................  15
2048...........................................  15
2049...........................................  15
2050...........................................  15.
----------------------------------------------------------------------------------------------------------------

     SEC. 583. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 582, immediately on receipt of 
     those proceeds, in the Climate Change Consumer Assistance 
     Fund.

     SEC. 584. DISBURSEMENTS FROM THE CLIMATE CHANGE CONSUMER 
                   ASSISTANCE FUND.

       No disbursements shall be made from the Climate Change 
     Consumer Assistance Fund except pursuant to an appropriations 
     Act.

     SEC. 585. SENSE OF SENATE ON TAX INITIATIVE TO PROTECT 
                   CONSUMERS.

       It is the sense of the Senate that funds deposited in the 
     Climate Change Consumer Assistance Fund under section 583 
     should be used to fund a tax initiative to protect consumers, 
     especially consumers in greatest need, from increases in 
     energy costs and other costs.

   TITLE VI--PARTNERSHIPS WITH STATES, LOCALITIES, AND INDIAN TRIBES

  Subtitle A--Partnerships With State Governments to Prevent Economic 
                  Hardship While Promoting Efficiency

     SEC. 601. ASSISTING ENERGY CONSUMERS THROUGH LOCAL 
                   DISTRIBUTION COMPANIES.

       (a) Allocation.--
       (1) First period.--Not later than 330 days before the 
     beginning of calendar year 2012, the Administrator shall 
     allocate--
       (A) 9.5 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar year 
     for distribution among electricity local distribution 
     companies in the United States; and
       (B) 3.25 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar year 
     for distribution among natural gas local distribution 
     companies in the United States.
       (2) Second period.--Not later than 330 days before the 
     beginning of each of calendar years 2013 through 2025, the 
     Administrator shall allocate--
       (A) 9.75 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar year 
     for distribution among electricity local distribution 
     companies in the United States; and
       (B) 3.25 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar year 
     for distribution among natural gas local distribution 
     companies in the United States.
       (3) Third period.--Not later than 330 days before the 
     beginning of each of calendar years 2026 through 2050, the 
     Administrator shall allocate--
       (A) 10 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar year 
     for distribution among electricity local distribution 
     companies in the United States; and
       (B) 3.5 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar year 
     for distribution among natural gas local distribution 
     companies in the United States.
       (b) Distribution.--
       (1) In general.--For each calendar year, the emission 
     allowances allocated under subsection (a) shall be 
     distributed by the Administrator to each local distribution 
     entity based on the proportion that--
       (A) the quantity of electricity or natural gas delivered by 
     the local distribution entity during the 3 calendar years 
     preceding the calendar year for which the emission allowances 
     are distributed, adjusted upward for electricity or natural 
     gas not delivered as a result of consumer energy-efficiency 
     programs implemented by the local distribution entity and 
     verified by the regulatory agency of the local distribution 
     entity; bears to
       (B) the total quantity of electricity or natural gas 
     delivered by all local distribution entities during those 3 
     calendar years, adjusted upward for the total electricity or 
     natural gas not delivered as a result of consumer energy-
     efficiency programs implemented by all local distribution 
     entities and verified by the regulatory agencies of the local 
     distribution entities.
       (2) Basis.--The Administrator shall base the determination 
     of the quantity of electricity or natural gas delivered by a 
     local distribution entity for the purpose of paragraph (1) on 
     the most recent data available in annual reports filed with 
     the Energy Information Administration of the Department of 
     Energy.
       (c) Use.--
       (1) Eligible consumer classes.--
       (A) Regulation.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Energy, shall establish, by regulation, 
     the consumer classes to which a local distribution entity 
     shall direct emission allowance proceeds, including low-
     income and middle-income residential energy consumers and 
     small business commercial consumers that are not allocated 
     emission allowances pursuant to title V.
       (B) Requirement.--The regulation required under 
     subparagraph (A) shall be promulgated in consultation with--
       (i) the Secretary of Health and Human Services;
       (ii) the Secretary of Agriculture;
       (iii) appropriate State agencies; and

[[Page S5072]]

       (iv) local distribution entities, the regulatory agencies 
     of the local distribution entities, and consumer advocates.
       (C) Defining low-income consumers.--
       (i) In general.--Subject to clause (ii), the Administrator 
     shall specify eligibility criteria for low-income residential 
     energy consumers for purposes of the regulation required 
     under subparagraph (A).
       (ii) Inclusions.--An individual shall be eligible as a low-
     income residential energy consumer for purposes of the 
     regulation required under subparagraph (A) if the individual 
     (or the household of which the individual is a member) 
     qualifies for--

       (I) benefits under the food stamp program established under 
     the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
       (II) a premium or cost-sharing subsidy under section 1860D-
     14 of the Social Security Act (42 U.S.C. 1395w-114); or
       (III) a low-income program carried out before December 31, 
     2011, by an electricity or natural gas local distribution 
     entity serving the individual.

       (2) Climate change impact assistance programs.--
       (A) In general.--Each local distribution entity that 
     receives emission allowances under subsection (b) shall 
     develop a climate change impact economic assistance program 
     in accordance with this paragraph.
       (B) Regulations.--
       (i) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing minimum requirements for the 
     development of climate change impact economic assistance 
     programs under subparagraph (A).
       (ii) Deadline.--The regulations promulgated pursuant to 
     clause (i) shall require each local distribution entity that 
     receives emission allowances under this section to implement 
     a climate change impact economic assistance program by not 
     later than December 31, 2011, that--

       (I) mitigates increases in electricity or natural gas 
     costs, as applicable, that are attributable to the 
     implementation of this Act;
       (II) provides to qualifying low-income individuals and 
     households a timely rebate on electricity or natural gas 
     bills, as applicable;
       (III) provides greater rebates to consumers in the lowest 
     income classes;
       (IV) includes energy efficiency and other programmatic 
     measures designed to reduce the quantity of electricity or 
     natural gas, as applicable, consumed by qualifying low-income 
     households; and
       (V) includes economic assistance, energy efficiency, and 
     other programmatic measures designed to reduce the quantity 
     of energy consumed by other residential, small business, and 
     commercial energy consumers that do not receive allowances 
     under this Act.

       (C) Development.--
       (i) In general.--A local distribution entity may develop an 
     assistance program under this paragraph--

       (I) in consultation with appropriate State regulatory 
     authorities; or
       (II) for the purpose of supplementing an existing low-
     income consumer assistance plan of the entity.

       (ii) Lists of eligible consumers.--In developing a list of 
     consumers eligible to receive assistance pursuant to a 
     climate change impact economic assistance program under this 
     paragraph, a local distribution entity--

       (I) may use any list maintained by a State or local agency 
     of eligible recipients of existing public assistance 
     programs; and
       (II) shall strictly maintain the privacy of the eligible 
     recipients.

       (D) Approval.--
       (i) In general.--A local distribution entity shall submit 
     the proposed assistance program of the entity to the 
     Administrator for approval.
       (ii) Approval of existing programs.--On request of a local 
     distribution entity, the Administrator may approve an 
     existing, State-approved low-income consumer assistance plan 
     of the entity as a climate change impact economic assistance 
     program for purposes of this paragraph, if the Administrator 
     determines that the plan meets the requirements of this 
     paragraph.
       (E) Implementation.--On approval of an assistance program 
     by the Administrator under subparagraph (D)(i), a local 
     distribution entity may implement the program, subject to the 
     oversight of appropriate State authorities.
       (d) Sale of Emission Allowances.--
       (1) In general.--A local distribution entity that receives 
     emission allowances under subsection (b) shall--
       (A) sell each emission allowance distributed to the local 
     distribution entity, through direct sale or pursuant to a 
     contract with a third party to sell the allowance, by not 
     later than the date that is 1 year after the date of receipt 
     of the emission allowance; and
       (B) seek fair market value for each emission allowance 
     sold.
       (2) Proceeds.--
       (A) In general.--Subject to subparagraph (B), the proceeds 
     from the sale of emission allowances under paragraph (1) 
     shall be used solely--
       (i) to mitigate economic impacts on the consumer classes 
     established pursuant to subsection (c)(1)(A), including by 
     reducing transmission or distribution charges or issuing 
     rebates;
       (ii) to promote the use of zero- and low-carbon distributed 
     generation technologies and energy efficiency on the part of 
     consumers; and
       (iii) to implement demand response programs and targeted 
     assistance programs to benefit the consumer classes 
     established pursuant to subsection (c)(1)(A).
       (B) Minimum percentage requirement.--
       (i) In general.--Except as provided in clause (ii), each 
     local distribution entity shall use not less than 30 percent 
     of the proceeds from the sale of emission allowances under 
     paragraph (1) to benefit low-income residential energy 
     consumers.
       (ii) Exception.--Notwithstanding clause (i), a regulatory 
     agency with authority over a local distribution entity 
     (including a governing board of a municipally owned or 
     cooperatively owned local distribution entity) may reduce the 
     percentage requirement under clause (i) if the agency 
     determines that the increase in electricity or natural gas 
     costs, as applicable, of eligible low-income consumers served 
     by the local distribution entity resulting from the 
     implementation of this Act are mitigated.
       (C) Prohibition.--No local distribution entity may use any 
     proceeds from the sale of emission allowances under paragraph 
     (1) to provide to any consumer a rebate that is based solely 
     on the quantity of electricity or natural gas used by the 
     consumer.
       (D) Treatment.--Proceeds from the sale of an emission 
     allowance under this paragraph shall not be considered to be 
     income of a local distribution entity if the value of the 
     proceeds is fully disbursed during the 1-year period 
     beginning on the date of sale of the emission allowance.
       (e) Reports.--
       (1) In general.--For each calendar year for which a local 
     distribution entity receives emission allowances under this 
     section, the entity shall submit to the Administrator a 
     report describing, with respect to that calendar year--
       (A) the date of each sale of each emission allowance;
       (B) the amount of revenue generated from the sale of 
     emission allowances; and
       (C) how, and to what extent, the local distribution entity 
     used the proceeds of the sale of emission allowances, 
     including the amount of the proceeds directed to each 
     consumer class covered in the form of rebates, energy 
     efficiency, demand response, and distributed generation.
       (2) Availability of reports.--The Administrator shall make 
     available to the public all reports submitted by entities 
     under paragraph (1), including by publishing those reports on 
     the Internet.
       (f) Opt-Out.--If a local distribution entity elects not to 
     receive emission allowances under this section or fails to 
     comply with a requirement of this section, as determined by 
     the Administrator, the emission allowances that would 
     otherwise be distributed to the local distribution entity 
     shall be--
       (1) provided to the State served by the local distribution 
     entity; and
       (2) used by the State to carry out the objectives of this 
     section.

     SEC. 602. ASSISTING STATE ECONOMIES THAT RELY HEAVILY ON 
                   MANUFACTURING AND COAL.

       (a) Allocation.--
       (1) In general.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2050, of the 
     quantity of emission allowances established pursuant to 
     section 201(a) for the applicable calendar year, the 
     Administrator shall allocate a percentage for distribution 
     among States the economies of which rely heavily on 
     manufacturing or on coal, as determined by the Administrator, 
     in accordance with the table contained in paragraph (2).
       (2) Percentages for allocation.--For each of calendar years 
     2012 through 2050, the Administrator shall allocate to States 
     described in paragraph (1) the percentage of emission 
     allowances specified in the following table:


----------------------------------------------------------------------------------------------------------------
                                                    Percent of emission allowances for allocation among States
                 Calendar year                             relying heavily on manufacturing and on coal
----------------------------------------------------------------------------------------------------------------
2012...........................................  3
2013...........................................  3
2014...........................................  3
2015...........................................  3
2016...........................................  3.25
2017...........................................  3.25
2018...........................................  3.25
2019...........................................  3.25
2020...........................................  3.25
2021...........................................  3.25
2022...........................................  3.25
2023...........................................  3.5
2024...........................................  3.5
2025...........................................  3.5
2026...........................................  3.5
2027...........................................  3.5
2028...........................................  3.5
2029...........................................  3.5
2030...........................................  3.5
2031...........................................  4
2032...........................................  4
2033...........................................  4
2034...........................................  4
2035...........................................  4
2036...........................................  4
2037...........................................  4
2038...........................................  4
2039...........................................  4

[[Page S5073]]

 
2040...........................................  4
2041...........................................  4
2042...........................................  4
2043...........................................  4
2044...........................................  4
2045...........................................  4
2046...........................................  4
2047...........................................  4
2048...........................................  4
2049...........................................  4
2050...........................................  4.
----------------------------------------------------------------------------------------------------------------

       (b) Distribution.--The emission allowances available for 
     allocation to States under subsection (a) for a calendar year 
     shall be distributed as follows:
       (1) For each calendar year, \1/2\ of the quantity of 
     emission allowances shall be distributed among the States 
     based on the proportion that--
       (A) the average annual per-capita employment in 
     manufacturing in a State during the period beginning on 
     January 1, 1988, and ending on December 31, 1992, as 
     determined by the Secretary of Labor; bears to
       (B) the average annual per-capita employment in 
     manufacturing in all States during the period beginning on 
     January 1, 1988, and ending on December 31, 1992, as 
     determined by the Secretary of Labor.
       (2) For each calendar year, \1/2\ of the quantity of 
     emission allowances available for States under subsection (a) 
     shall be distributed among individual States as follows:
       (A) In the case of any State in which the ratio of lignite 
     (in British thermal units) that was mined from 1988 through 
     1992 within the boundaries of the State to the total quantity 
     of coal (in British thermal units) that was consumed from 
     1988 through 1992 within the boundaries of that State exceeds 
     0.75, the share of allowances of the State shall be based on 
     the proportion that--
       (i) twice the quantity of carbon contained in the total 
     quantity of coal that was mined within the boundaries of the 
     State from 1988 through 1992, as determined by the Secretary 
     of Energy; bears to
       (ii) the sum of twice the quantity of carbon contained in 
     the total quantity of coal that was mined from 1988 through 
     1992 within the boundaries of all States described in 
     subparagraph (A) and the quantity of carbon contained in the 
     total quantity of coal that was mined from 1988 through 1992 
     within the boundaries of all other States, as determined by 
     the Secretary of Energy.
       (B) In the case of any State other than a State described 
     in subparagraph (A), the share of allowances of the State 
     shall be based on the proportion that--
       (i) the quantity of carbon contained in the total quantity 
     of coal that was mined within the boundaries of the State 
     from 1988 through 1992, as determined by the Secretary of 
     Energy; bears to
       (ii) the sum of twice the quantity of carbon contained in 
     the total quantity of coal that was mined from 1988 through 
     1992 in all States described in subparagraph (A) and the 
     quantity of carbon contained in the total quantity of coal 
     that was mined from 1988 through 1992 within the boundaries 
     of all other States, as determined by the Secretary of 
     Energy.
       (c) Use.--During any calendar year, a State shall retire or 
     use for 1 or more of the purposes described in section 614(d) 
     all of the allowances allocated to the State (or proceeds of 
     sale of those emission allowances) under this section for 
     that calendar year.
       (d) Deadline for Use.--A State shall distribute or sell 
     emission allowances for use in accordance with subsection (c) 
     by not later than January 1 of each emission allowance 
     allocation year.
       (e) Return of Allowances.--Not later than 330 days before 
     the end of each emission allowance allocation year, each 
     State shall return to the Administrator any emission 
     allowances allocated to the State for the preceding calendar 
     year but not distributed or sold by the deadline described in 
     subsection (d).
       (f) Report.--A State receiving allowances under this 
     section shall annually submit to the appropriate 
     congressional committees and the appropriate Federal agencies 
     a report describing the purposes for which the State has 
     used--
       (1) the allowances received under this section; and
       (2) the proceeds of the sale by the State of allowances 
     received under this section.

Subtitle B--Partnerships With States, Localities, and Indian Tribes to 
                            Reduce Emissions

     SEC. 611. MASS TRANSIT.

       (a) Transportation Sector Emission Reduction Fund.--There 
     is established in the Treasury of the United States a fund, 
     to be known as the ``Transportation Sector Emission Reduction 
     Fund''.
       (b) Auction of Allowances.--In accordance with subsections 
     (c) and (d), to fund awards for public transportation-related 
     activities, for each of calendar years 2012 through 2050, the 
     Administrator shall auction a quantity of the emission 
     allowances established pursuant to section 201(a) for each 
     calendar year.
       (c) Number; Frequency.--For each calendar year during the 
     period described in subsection (b), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.
       (d) Quantities of Emission Allowances Auctioned.--For each 
     calendar year of the period described in subsection (b), the 
     Administrator shall auction a quantity of emission allowances 
     in accordance with the applicable percentages described in 
     the following table:


----------------------------------------------------------------------------------------------------------------
                 Calendar Year                           Percentage for auction for public transportation
----------------------------------------------------------------------------------------------------------------
2012...........................................  1
2013...........................................  1
2014...........................................  1
2015...........................................  1
2016...........................................  1
2017...........................................  1
2018...........................................  2
2019...........................................  2
2020...........................................  2
2021...........................................  2
2022...........................................  2.75
2023...........................................  2.75
2024...........................................  2.75
2025...........................................  2.75
2026...........................................  2.75
2027...........................................  2.75
2028...........................................  2.75
2029...........................................  2.75
2030...........................................  2.75
2031...........................................  2.75
2032...........................................  2.75
2033...........................................  2.75
2034...........................................  2.75
2035...........................................  2.75
2036...........................................  2.75
2037...........................................  2.75
2038...........................................  2.75
2039...........................................  2.75
2040...........................................  2.75
2041...........................................  2.75
2042...........................................  2.75
2043...........................................  2.75
2044...........................................  2.75
2045...........................................  2.75
2046...........................................  2.75
2047...........................................  2.75
2048...........................................  2.75
2049...........................................  2.75
2050...........................................  2.75.
----------------------------------------------------------------------------------------------------------------

       (e) Deposits.--The Administrator shall deposit all proceeds 
     of auctions conducted pursuant to subsections (b) and (c), 
     immediately on receipt of those proceeds, in the 
     Transportation Sector Emission Reduction Fund established by 
     subsection (a).
       (f) Use of Funds.--For each of calendar years 2012 through 
     2050, all funds deposited in the Transportation Sector 
     Emission Reduction Fund in the preceding year pursuant to 
     subsection (e) shall be made available, without further 
     appropriation or fiscal year limitation, for grants described 
     in subsections (g) through (i).
       (g) Grants to Provide for Additional and Improved Public 
     Transportation Service.--
       (1) In general.--Of the funds deposited in the 
     Transportation Sector Emission Reduction Fund each year 
     pursuant to subsection (e), 65 percent shall be distributed 
     to designated recipients (as defined in section 5307(a) of 
     title 49, United States Code) to maintain or improve public 
     transportation through activities eligible under that 
     section, including--
       (A) improvements to lighting, heating, cooling, or 
     ventilation systems in stations and other facilities that 
     reduce direct or indirect greenhouse gas emissions;
       (B) adjustments to signal timing or other vehicle 
     controlling systems that reduce direct or indirect greenhouse 
     gas emissions;
       (C) purchasing or retrofitting rolling stock to improve 
     efficiency or reduce greenhouse gas emissions; and
       (D) improvements to energy distribution systems.
       (2) Distribution.--Of the proceeds of auctions conducted 
     under this section, the Administrator shall distribute under 
     paragraph (1)--
       (A) 60 percent in accordance with the formulas contained in 
     subsections (a) through (c) of section 5336 of title 49, 
     United States Code; and
       (B) 40 percent in accordance with the formula contained in 
     section 5340 of that title.
       (3) Terms and conditions.--A grant provided under this 
     subsection shall be subject to the terms and conditions 
     applicable to a grant provided under section 5307 of title 
     49, United States Code.
       (4) Cost share.--The Federal share of cost of carrying out 
     an activity using a grant under this subsection shall be 
     determined in accordance with section 5307(e) of title 49, 
     United States Code.
       (h) Grants for Construction of New Public Transportation 
     Projects.--
       (1) In general.--Of the funds deposited in the 
     Transportation Sector Emission Reduction Fund each year 
     pursuant to subsection

[[Page S5074]]

     (e), 30 percent shall be distributed to State and local 
     government authorities for design, engineering, and 
     construction of new fixed guideway transit projects or 
     extensions to existing fixed guideway transit systems.
       (2) Applications.--Applications for grants under this 
     subsection shall be reviewed according to the process and 
     criteria established under section 5309(c) of title 49, 
     United States Code, for major capital investments and section 
     5309(d) of title 49, United States Code for other projects.
       (3) Terms and conditions.--Grant funds awarded under this 
     subsection shall be subject to the terms and conditions 
     applicable to a grant made under section 5309 of title 49, 
     United States Code.
       (i) Grants for Transportation Alternatives and Travel 
     Demand Reduction Projects.--
       (1) In general.--Of the funds deposited into the 
     Transportation Sector Emission Reduction Fund each year 
     pursuant to subsection (e), 5 percent shall be awarded to 
     designated recipients (as defined in section 5307(a) of title 
     49, United States Code) to assist in reducing the direct and 
     indirect greenhouse gas emissions of the systems of the 
     designated recipients, through--
       (A) programs to reduce vehicle miles traveled;
       (B) bicycle and pedestrian infrastructure, including trail 
     networks integrated with transportation plans or bicycle 
     mode-share targets; and
       (C) programs to establish or expand telecommuting or car 
     pool projects that do not include new roadway capacity.
       (2) Distribution of funds.--In determining the recipients 
     of grants under this subsection, applications shall be 
     evaluated based on the total direct and indirect greenhouse 
     gas emissions reductions that are projected to result from 
     the project and projected reductions as a percentage of the 
     total direct and indirect emissions of an entity.
       (3) Government share of costs.--The Federal share of the 
     cost of an activity funded using amounts made available under 
     this subsection may not exceed 80 percent of the cost of the 
     activity.
       (4) Terms and conditions.--Except to the extent 
     inconsistent with the terms of this subsection, grant funds 
     awarded under this subsection shall be subject to the terms 
     and conditions applicable to a grant made under section 5307 
     of title 49, United States Code.
       (j) Condition for Receipt of Funds.--To be eligible to 
     receive funds under this section, projects or activities must 
     be part of an integrated State-wide transportation plan that 
     shall--
       (1) include all modes of surface transportation;
       (2) integrate transportation data collection, monitoring, 
     planning, and modeling;
       (3) report on estimated greenhouse gas emissions;
       (4) be designed to reduce greenhouse gas emissions from the 
     transportation sector; and
       (5) be certified by the Administrator as consistent with 
     the purposes of this Act.

     SEC. 612. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

       (a) In General.--Section 304 of the Energy Conservation and 
     Production Act (42 U.S.C. 6833) is amended to read as 
     follows:

     ``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

       ``(a) Updates.--
       ``(1) In general.--Not later than 3 years after the date of 
     enactment of the Lieberman-Warner Climate Security Act of 
     2008, and not less frequently every 3 years thereafter, the 
     Secretary shall support updating the national model building 
     energy codes and standards to achieve overall energy savings, 
     as compared to the IECC (2006) for residential buildings and 
     ASHRAE Standard 90.1 (2004) for commercial buildings, of at 
     least--
       ``(A) 30 percent, with respect to each edition of a model 
     code or standard published during the period beginning on 
     January 1, 2010, and ending on December 31, 2019;
       ``(B) 50 percent, with respect to each edition of a model 
     code or standard published on or after January 1, 2020; and
       ``(C) targets for intermediate and subsequent years, to be 
     established by the Secretary not less than 3 years before the 
     beginning on each target year, in coordination with IECC and 
     ASHRAE Standard 90.1 cycles, at the maximum level of energy 
     efficiency that is technologically feasible and lifecycle 
     cost-effective.
       ``(2) Revisions to iecc and ashrae.--
       ``(A) In general.--If the IECC or ASHRAE Standard 90.1 
     regarding building energy use is revised, not later than 1 
     year after the date of the revision, the Secretary shall 
     determine whether the revision will--
       ``(i) improve energy efficiency in buildings; and
       ``(ii) meet the energy savings goals described in paragraph 
     (1).
       ``(B) Modifications.--
       ``(i) In general.--If the Secretary makes a determination 
     under subparagraph (A)(ii) that a code or standard does not 
     meet the energy savings goals established under paragraph (1) 
     or if a national model code or standard is not updated for 
     more than 3 years, not later than 1 year after the 
     determination or the expiration of the 3-year period, the 
     Secretary shall establish a modified code or standard that 
     meets the energy savings goals.
       ``(ii) Requirements.--

       ``(I) Energy savings.--A modification to a code or standard 
     under clause (i) shall--

       ``(aa) achieve the maximum level of energy savings that is 
     technically feasible and lifecycle cost-effective;
       ``(bb) be achieved through an amendment or supplement to 
     the most recent revision of the IECC or ASHRAE Standard 90.1 
     and taking into consideration other appropriate model codes 
     and standards; and
       ``(cc) incorporate available appliances, technologies, and 
     construction practices.

       ``(II) Treatment as baseline.--A modification to a code or 
     standard under clause (i) shall serve as the baseline for the 
     next applicable determination of the Secretary under 
     subparagraph (A)(i).

       ``(C) Public participation.--The Secretary shall--
       ``(i) publish in the Federal Register a notice relating to 
     each goal, determination, and modification under this 
     paragraph; and
       ``(ii) provide an opportunity for public comment regarding 
     the goals, determinations, and modifications.
       ``(b) State Certification of Building Energy Code 
     Updates.--
       ``(1) General certification.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of the Lieberman-Warner Climate Security Act of 
     2008, each State shall certify to the Secretary that the 
     State has reviewed and updated the provisions of the 
     residential and commercial building codes of the State 
     regarding energy efficiency.
       ``(B) Energy savings.--A certification under subparagraph 
     (A) shall include a demonstration that the applicable 
     provisions of the State code meet or exceed, as applicable--
       ``(i)(I) the IECC (2006) for residential buildings; or
       ``(II) the ASHRAE Standard 90.1 (2004) for commercial 
     buildings; or
       ``(ii) the quantity of energy savings represented by the 
     provisions referred to in clause (i).
       ``(2) Revision of codes and standards.--
       ``(A) In general.--If the Secretary makes an affirmative 
     determination under subsection (a)(2)(A)(i) or establishes a 
     modified code or standard under subsection (a)(2)(B), not 
     later than 2 years after the determination or proposal, each 
     State shall certify that the State has reviewed and updated 
     the provisions of the residential and commercial building 
     codes of the State regarding energy efficiency.
       ``(B) Energy savings.--A certification under subparagraph 
     (A) shall include a demonstration that the applicable 
     provisions of the State code meet or exceed--
       ``(i) the modified code or standard; or
       ``(ii) the quantity of energy savings represented by the 
     modified code or standard.
       ``(C) Failure to determine.--If the Secretary fails to make 
     a determination under subsection (a)(2)(A)(i) by the date 
     specified in subsection (a)(2), or if the Secretary makes a 
     negative determination, not later than 2 years after the 
     specified date or the date of the determination, each State 
     shall certify that the State has--
       ``(i) reviewed the revised code or standard; and
       ``(ii) updated the provisions of the residential and 
     commercial building codes of the State as necessary to meet 
     or exceed, as applicable--

       ``(I) any provisions of a national code or standard 
     determined to improve energy efficiency in buildings; or
       ``(II) energy savings achieved by those provisions through 
     other means.

       ``(c) Achievement of Compliance by States.--
       ``(1) In general.--Not later than 3 years after the date on 
     which a State makes a certification under subsection (b), the 
     State shall certify to the Secretary that the State has 
     achieved compliance with the building energy code that is the 
     subject of the certification.
       ``(2) Rate of compliance.--The certification shall include 
     documentation of the rate of compliance based on independent 
     inspections of a random sample of the new and renovated 
     buildings covered by the State code during the preceding 
     calendar year.
       ``(3) Compliance.--A State shall be considered to achieve 
     compliance for purposes of paragraph (1) if--
       ``(A) at least 90 percent of new and renovated buildings 
     covered by the State code during the preceding calendar year 
     substantially meet all the requirements of the code; or
       ``(B) the estimated excess energy use of new and renovated 
     buildings that did not meet the requirements of the State 
     code during the preceding calendar year, as compared to a 
     baseline of comparable buildings that meet the requirements 
     of the code, is not more than 10 percent of the estimated 
     energy use of all new and renovated buildings covered by the 
     State code during the preceding calendar year.
       ``(d) Failure to Certify.--
       ``(1) Extension of deadlines.--The Secretary shall extend a 
     deadline for certification by a State under subsection (b) or 
     (c) for not more than 1 additional year, if the State 
     demonstrates to the satisfaction of the Secretary that the 
     State has made--
       ``(A) a good faith effort to comply with the certification 
     requirement; and
       ``(B) significant progress with respect to the compliance.
       ``(2) Noncompliance by state.--
       ``(A) In general.--A State that fails to submit a 
     certification required under subsection (b) or (c), and to 
     which an extension

[[Page S5075]]

     is not provided under paragraph (1), shall be considered to 
     be out of compliance with this section.
       ``(B) Effect on local governments.--A local government of a 
     State that is out of compliance with this section may be 
     considered to be in compliance with this section if the local 
     government meets each applicable certification requirement of 
     this section.
       ``(e) Technical Assistance.--
       ``(1) In general.--The Secretary shall provide technical 
     assistance (including building energy analysis and design 
     tools, building demonstrations, and design assistance and 
     training) to ensure that national model building energy codes 
     and standards meet the goals described in subsection (a)(1).
       ``(2) Assistance to states.--The Secretary shall provide 
     technical assistance to States--
       ``(A) to implement this section, including procedures for 
     States to demonstrate that the codes of the States achieve 
     equivalent or greater energy savings than the national model 
     codes and standards;
       ``(B) to improve and implement State residential and 
     commercial building energy efficiency codes; and
       ``(C) to otherwise promote the design and construction of 
     energy-efficient buildings.
       ``(f) Incentive Funding.--
       ``(1) In general.--The Secretary shall provide incentive 
     funding to States--
       ``(A) to implement this section; and
       ``(B) to improve and implement State residential and 
     commercial building energy efficiency codes, including 
     increasing and verifying compliance with the codes.
       ``(2) Amount.--In determining whether, and in what amount, 
     to provide incentive funding under this subsection, the 
     Secretary shall take into consideration actions proposed by 
     the State--
       ``(A) to implement this section;
       ``(B) to implement and improve residential and commercial 
     building energy efficiency codes; and
       ``(C) to promote building energy efficiency through use of 
     the codes.
       ``(3) Additional funding.--The Secretary shall provide 
     additional funding under this subsection for implementation 
     of a plan to demonstrate a rate of compliance with applicable 
     residential and commercial building energy efficiency codes 
     at a rate of not less than 90 percent, based on energy 
     performance--
       ``(A) to a State that has adopted and is implementing, on a 
     statewide basis--
       ``(i) a residential building energy efficiency code that 
     meets or exceeds the requirements of the IECC (2006) (or a 
     successor code that is the subject of an affirmative 
     determination by the Secretary under subsection 
     (a)(2)(A)(i)); and
       ``(ii) a commercial building energy efficiency code that 
     meets or exceeds the requirements of the ASHRAE Standard 90.1 
     (2004) (or a successor standard that is the subject of an 
     affirmative determination by the Secretary under subsection 
     (a)(2)(A)(i)); or
       ``(B) in the case of a State in which no statewide energy 
     code exists for residential buildings or commercial 
     buildings, or in which the State code fails to comply with 
     subparagraph (A), to a local government that has adopted and 
     is implementing residential and commercial building energy 
     efficiency codes, as described in subparagraph (A).
       ``(4) Training.--Of the amounts made available to carry out 
     this subsection, the Secretary may use not more than $500,000 
     for each State to train State and local officials to 
     implement State or local energy codes in accordance with a 
     plan described in paragraph (3).''.
       (b) Conforming Amendment.--Section 303 of the Energy 
     Conservation and Production Act (42 U.S.C. 6832) is amended 
     by adding at the end the following:
       ``(17) IECC.--The term `IECC' means the International 
     Energy Conservation Code.''.

     SEC. 613. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT 
                   PROGRAM.

       (a) In General.--In accordance with subsection (b), to fund 
     the Energy Efficiency and Conservation Block Grant Program 
     under subtitle E of title V of the Energy Independence and 
     Security Act of 2007 (42 U.S.C. 17151 et seq.), for each of 
     calendar years 2012 through 2050, the Administrator shall--
       (1) auction 2 percent of the emission allowances 
     established pursuant to section 201(a) for the calendar year; 
     and
       (2) immediately on completion of an auction, transfer the 
     proceeds of the auction to the Secretary of Energy for use in 
     carrying out that block grant program.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.

     SEC. 614. STATE LEADERS IN REDUCING EMISSIONS.

       (a) Allocation.--
       (1) In general.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2050, the 
     Administrator shall allocate a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for the applicable calendar year for distribution among 
     States that, as determined by the Administrator, are leaders 
     in the effort of the United States to reduce greenhouse gas 
     emissions and improve energy efficiency, in accordance with 
     paragraph (2).
       (2) Percentages for allocation.--For each of calendar years 
     2012 through 2050, the Administrator shall distribute in 
     accordance with paragraph (1) the percentage of emission 
     allowances specified in the following table:


----------------------------------------------------------------------------------------------------------------
                                                     Percentage for State leaders in reducing greenhouse gas
                 Calendar Year                              emissions and improving energy efficiency
----------------------------------------------------------------------------------------------------------------
2012...........................................  4
2013...........................................  4
2014...........................................  4
2015...........................................  4
2016...........................................  4.25
2017...........................................  4.25
2018...........................................  4.55
2019...........................................  4.75
2020...........................................  5
2021...........................................  5
2022...........................................  6
2023...........................................  6.25
2024...........................................  6.5
2025...........................................  6.75
2026...........................................  7
2027...........................................  7.25
2028...........................................  7.5
2029...........................................  7.75
2030...........................................  8
2031...........................................  9
2032...........................................  10
2033...........................................  10

[[Page S5076]]

 
2034...........................................  10
2035...........................................  10
2036...........................................  10
2037...........................................  10
2038...........................................  10
2039...........................................  10
2040...........................................  10
2041...........................................  10
2042...........................................  10
2043...........................................  10
2044...........................................  10
2045...........................................  10
2046...........................................  10
2047...........................................  10
2048...........................................  10
2049...........................................  10
2050...........................................  10.
----------------------------------------------------------------------------------------------------------------

       (b) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a system for annually scoring 
     historical State investments and achievements in reducing 
     greenhouse gas emissions and increasing energy efficiency for 
     purposes of subsection (a).
       (c) Distribution.--
       (1) In general.--The emission allowances available for 
     allocation to States under subsection (a) shall be 
     distributed among the States based on the proportion that, 
     for a calendar year--
       (A) the score of the State, as determined under subsection 
     (b); bears to
       (B) the scores of all States, as determined under 
     subsection (b).
       (2) State cap-and-trade programs.--Allowances under this 
     section for any calendar year shall be distributed to--
       (A) States that have never established State or regional 
     cap-and-trade programs for greenhouse gas emissions; and
       (B) States that did establish State or regional cap-and-
     trade programs for greenhouse gas emissions and that, not 
     later than the beginning of the applicable calendar year--
       (i) chose to transition the programs into the national 
     system established by this Act; and
       (ii) completed the transition and discontinued the State or 
     regional cap-and-trade programs.
       (d) Use.--
       (1) In general.--During any calendar year, a State shall 
     retire or use all emission allowances allocated to the State 
     (or proceeds of sale of those emission allowances) under this 
     section for that calendar year for 1 or more of the following 
     purposes:
       (A) To mitigate impacts on low-income energy consumers.
       (B) To promote energy efficiency (including support of 
     electricity and natural gas demand reduction, waste 
     minimization, and recycling programs).
       (C) To promote investment in nonemitting electricity 
     generation technology, including planning for the siting of 
     facilities employing that technology in States (including in 
     territorial waters of States).
       (D) To improve public transportation and passenger rail 
     service and otherwise promote reductions in vehicle miles 
     traveled.
       (E) To encourage advances in energy technology that reduce 
     or sequester greenhouse gas emissions.
       (F) To address local or regional impacts of climate change, 
     including by accommodating, protecting, or relocating 
     affected communities and public infrastructure.
       (G) To collect, evaluate, disseminate, and use information 
     necessary for affected coastal communities to adapt to 
     climate change (such as information derived from inundation 
     prediction systems).
       (H) To mitigate obstacles to investment by new entrants in 
     electricity generation markets and energy-intensive 
     manufacturing sectors.
       (I) To address local or regional impacts of climate change 
     policy, including providing assistance to displaced workers.
       (J) To engage local and municipal governments to provide 
     capacity building and related technical assistance to local 
     and municipal low-carbon green job creation and workforce 
     development programs.
       (K) To mitigate impacts on carbon-intensive industries in 
     internationally competitive markets.
       (L) To reduce hazardous fuels and prevent and suppress 
     wildland fire.
       (M) To fund rural, municipal, and agricultural water 
     projects that are consistent with the sustainable use of 
     water resources.
       (N) To improve recycling infrastructure.
       (O) To increase public education on the benefits of 
     recycling, particularly with respect to greenhouse gases.
       (P) To improve residential, commercial, and industrial 
     collection of recyclables.
       (Q) To improve recycling system efficiency.
       (R) To increase recycling yields.
       (S) To improve the quality and usefulness of recycled 
     materials.
       (T) To promote industry cluster or industry sector 
     strategies that involve public-private partnerships of State 
     and local economic and workforce development agencies, 
     leaders from renewable energy, efficiency and low-carbon 
     industries, and other community-based stakeholders, in the 
     development of regional strategies to maximize the creation 
     of good, career-track jobs.
       (U) To develop and implement plans to anticipate and reduce 
     the potential threats to health resulting from climate 
     change, including--
       (i) development, improvement, and integration of disease 
     surveillance systems, rapid response systems, and 
     communication methods and materials; and
       (ii) identification and prioritization of vulnerable 
     communities and populations.
       (V) To fund any other purpose the States determine to be 
     necessary to mitigate any negative economic impacts as a 
     result of--
       (i) global warming; or
       (ii) new regulatory requirements as a result of this Act.
       (e) Deadline for Use.--A State shall distribute or sell 
     emission allowances for use in accordance with subsection (c) 
     by not later than January 1 of each emission allowance 
     allocation year.
       (f) Return of Allowances.--Not later than 330 days before 
     the end of each emission allowance allocation year, each 
     State shall return to the Administrator any emission 
     allowances allocated to the State for the preceding calendar 
     year but not distributed or sold by the deadline described in 
     subsection (e).
       (g) Recycling.--During any calendar year, a State shall use 
     not less than 5 percent of the quantity of emission 
     allowances allocated to the State (or proceeds of sale of 
     those emission allowances) under this section for increasing 
     recycling rates through activities such as--
       (1) improving recycling infrastructure;
       (2) increasing public education on the benefits of 
     recycling, particularly with respect to greenhouse gases;
       (3) improving residential, commercial, and industrial 
     collection of recyclables;
       (4) increasing recycling efficiency;
       (5) increasing recycling yields; and
       (6) improving the quality and usefulness of recycled 
     materials.
       (h) Home Heating Oil.--During any calendar year, any State 
     that ranks among the top 20 States in terms of annual usage 
     of home heating oil, as determined by the Secretary of 
     Energy, shall use not less than 5 percent of the quantity of 
     emission allowances allocated to the State (or proceeds of 
     the sale of those allowances) under this section for 
     protecting consumers of home heating oil in the State from 
     suffering hardship as a result of any increases in home 
     heating oil prices.

[[Page S5077]]

       (i) Report.--A State receiving allowances under this 
     section shall annually submit to the appropriate 
     congressional committees and the appropriate Federal agencies 
     a report describing the purposes for which the State has 
     used--
       (1) the allowances received under this section; and
       (2) the proceeds of the sale by the State of allowances 
     received under this section.

  Subtitle C--Partnerships With States and Indian Tribes to Adapt to 
                             Climate Change

     SEC. 621. ALLOCATION.

       (a) In General.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2050, the 
     Administrator shall allocate a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for the applicable calendar year for distribution among 
     States and Indian tribes for activities carried out in 
     response to the impacts of global climate change, in 
     accordance with subsection (b).
       (b) Percentages for Allocation.--For each of calendar years 
     2012 through 2050, the Administrator shall distribute in 
     accordance with subsection (a) the percentage of emission 
     allowances specified in the following table:


------------------------------------------------------------------------
                                                              Percentage
                                                              for States
                                                              and Indian
                        Calendar Year                         tribes for
                                                              adaptation
                                                              activities
------------------------------------------------------------------------
2012........................................................       3
2013........................................................       3
2014........................................................       3
2015........................................................       3
2016........................................................    3.25
2017........................................................    3.25
2018........................................................    3.25
2019........................................................    3.25
2020........................................................    3.25
2021........................................................    3.25
2022........................................................    3.25
2023........................................................    3.25
2024........................................................    3.25
2025........................................................    3.25
2026........................................................     3.5
2027........................................................     3.5
2028........................................................     3.5
2029........................................................     3.5
2030........................................................     3.5
2031........................................................       4
2032........................................................       4
2033........................................................       4
2034........................................................       4
2035........................................................       4
2036........................................................       4
2037........................................................       4
2038........................................................       4
2039........................................................       4
2040........................................................       4
2041........................................................       4
2042........................................................       4
2043........................................................       4
2044........................................................       4
2045........................................................       4
2046........................................................       4
2047........................................................       4
2048........................................................       4
2049........................................................       4
2050........................................................      4.
------------------------------------------------------------------------

     SEC. 622. COASTAL IMPACTS.

       (a) Definitions.--In this section:
       (1) Coastal state.--
       (A) In general.--The term ``Coastal State'' means any State 
     that borders on 1 or more of the Atlantic Ocean, the Gulf of 
     Mexico, the Pacific Ocean, the Arctic Ocean, or a Great Lake.
       (B) Inclusions.--The term ``Coastal State'' includes--
       (i) the Commonwealth of Puerto Rico;
       (ii) Guam;
       (iii) American Samoa;
       (iv) the Commonwealth of the Northern Mariana Islands; and
       (v) the United States Virgin Islands.
       (C) Exclusion.--The term ``Coastal State'' does not include 
     the State of Alaska.
       (2) Coastal watershed.--The term ``coastal watershed'' 
     means a geographical area drained into or contributing water 
     to an estuarine area, an ocean, or a Great Lake, all or a 
     portion of which is within the coastal zone (as defined in 
     section 304 of the Coastal Zone Management Act of 1972 (16 
     U.S.C. 1453)).
       (3) Great lake.--The term ``Great Lake'' means--
       (A) Lake Erie;
       (B) Lake Huron (including Lake Saint Clair);
       (C) Lake Michigan;
       (D) Lake Ontario;
       (E) Lake Superior; and
       (F) the connecting channels of those Lakes, including--
       (i) the Saint Marys River;
       (ii) the Saint Clair River;
       (iii) the Detroit River;
       (iv) the Niagara River; and
       (v) the Saint Lawrence River to the Canadian border.
       (4) Shoreline miles.--The term ``shoreline miles'', with 
     respect to a Coastal State, means the mileage of tidal 
     shoreline or Great Lake shoreline of the Coastal State, based 
     on the most recently available data from or accepted by the 
     National Ocean Service of the National Oceanic and 
     Atmospheric Administration.
       (b) Allocation.--Of the emission allowances allocated each 
     year pursuant to section 621, the Administrator shall 
     allocate 40 percent to Coastal States.
       (c) Distribution.--The emission allowances available for 
     allocation under subsection (b) for a calendar year shall be 
     distributed among Coastal States, as follows:
       (1) 50 percent based on the proportion that--
       (A) the number of shoreline miles of a Coastal State; bears 
     to
       (B) the total number of shoreline miles of all Coastal 
     States.
       (2) 30 percent based on the proportion that--
       (A) the population of a Coastal State; bears to
       (B) the total population of all Coastal States.
       (3) 20 percent divided equally among all Coastal States.
       (d) Use of Emission Allowances or Proceeds.--
       (1) In general.--During any calendar year, a Coastal State 
     receiving emission allowances under this section shall use 
     the emission allowances (or proceeds of sale of those 
     emission allowances) only for projects and activities to plan 
     for and address the impacts of climate change in the coastal 
     watershed.
       (2) Specific uses.--The projects and activities described 
     in paragraph (1) shall include projects and activities--
       (A) to address the impacts of climate change with respect 
     to--
       (i) accelerated sea level rise and lake level changes;
       (ii) shoreline erosion;
       (iii) increased storm frequency or intensity;
       (iv) changes in rainfall; and
       (v) related flooding;
       (B) to identify public facilities and infrastructure, 
     coastal resources of national significance, public energy 
     facilities, or other public water uses located in the coastal 
     watershed that are affected by climate change, including the 
     development of plans to protect, or, as necessary or 
     applicable, to relocate the facilities or infrastructure;
       (C) to research and collect data using, or on matters such 
     as--
       (i) historical shoreline position maps;
       (ii) historical shoreline erosion rates;
       (iii) inventories of shoreline features and conditions;
       (iv) acquisition of high-resolution topography and 
     bathymetry;
       (v) sea level rise inundation models;
       (vi) storm surge sea level rise linked inundation models;
       (vii) shoreline change modeling based on sea level rise 
     projections;
       (viii) sea level rise vulnerability analyses and 
     socioeconomic studies; and
       (ix) environmental and habitat changes associated with sea 
     level rise; and
       (D) to respond to--
       (i) changes in chemical characteristics (including ocean 
     acidification) and physical characteristics (including 
     thermal stratification) of marine systems;
       (ii) saltwater intrusion into groundwater aquifers;
       (iii) increased harmful algae blooms;
       (iv) spread of invasive species;
       (v) habitat loss (particularly loss of coastal wetland);
       (vi) species migrations; and
       (vii) marine, estuarine, and freshwater ecosystem changes 
     associated with climate change.
       (3) Coordination.--In carrying out this subsection, a 
     Coastal State shall coordinate with the Administrator and the 
     heads of other appropriate Federal agencies to ensure, to the 
     maximum extent practicable, an efficient and effective use of 
     emission allowances (or proceeds of sale of those emission 
     allowances) allocated under this section.
       (4) Technical assistance and training.--The Administrator 
     and the heads of such other Federal agencies as are 
     appropriate, including the National Oceanic and Atmospheric 
     Administration, Environmental Protection Agency, United 
     States Geological Survey, Department of the Interior, Corps 
     of Engineers, and Department of Transportation, shall provide 
     technical assistance and training for State and local 
     officials to assist Coastal States in carrying out this 
     subsection.
       (5) Institutions of higher education participation.--If 
     appropriate, institutions of higher education should use the 
     expertise and research capacity of the institutions to carry 
     out the goals of this subsection, specifically with regard to 
     conducting the research and planning necessary to respond to 
     the impacts on coastal areas from climate change.
       (e) Return of Unused Emission Allowances.--Any Coastal 
     State receiving emission allowances under this section shall 
     return to the Administrator any such emission allowances that 
     the Coastal State has failed to use in accordance with 
     subsection (d) by not later than 5 years after the date of 
     receipt of the emission allowances from the Administrator.
       (f) Use of Returned Emission Allowances.--The Administrator 
     shall, in accordance with subsection (c), distribute any 
     emission allowances returned to the Administrator under 
     subsection (e) to States other than the State that returned 
     those allowances to the Administrator.
       (g) Report.--A State receiving allowances under this 
     section shall annually submit to the appropriate 
     congressional committees and the appropriate Federal agencies 
     a report describing the purposes for which the State has 
     used--
       (1) the allowances received under this section; and

[[Page S5078]]

       (2) the proceeds of the sale by the State of allowances 
     received under this section.

     SEC. 623. IMPACTS ON WATER RESOURCES AND AGRICULTURE.

       (a) In General.--Of the emission allowances allocated each 
     year pursuant to section 621, the Administrator shall 
     allocate 25 percent to the States facing the earliest and 
     most severe impacts on the availability of freshwater and on 
     agriculture, as determined by the Administrator.
       (b) Use.--
       (1) In general.--For each calendar year, a State receiving 
     emission allowances under this section shall use the 
     allowances, or the proceeds from the sale of the allowances, 
     only for projects and activities to plan for and address the 
     impacts of climate change on water resources.
       (2) Regionally-specific analysis.--In developing State 
     programs under paragraph (1), a State shall develop a 
     regionally-specific analysis of the potential climate-change 
     impacts on local water resources.
       (3) Implementation priorities.--Implementation priorities 
     shall be developed through an integrated analysis of a full 
     range of water management alternatives (including urban and 
     agricultural conservation, habitat and watershed protection 
     and restoration, wastewater recycling, groundwater cleanup, 
     nonstructural alternatives, floodplain restoration, and urban 
     stormwater management) to direct funding to the most cost-
     effective strategies that will generate significant net 
     environmental benefits.
       (4) Specific uses.--Projects and activities under this 
     subsection shall include projects and activities--
       (A) to promote investment in research into the impacts of 
     climate change on water resource planning;
       (B) to promote water resource planning;
       (C) to develop and implement sustainable strategies for 
     adapting to climate change; and
       (D) to implement measures to reduce the greenhouse gas 
     emissions of water utilities.
       (c) Report.--A State receiving allowances under this 
     section shall annually submit to the appropriate 
     congressional committees and the appropriate Federal agencies 
     a report describing the purposes for which the State has 
     used--
       (1) the allowances received under this section; and
       (2) the proceeds of the sale by the State of allowances 
     received under this section.

     SEC. 624. IMPACTS ON ALASKA.

       (a) Allocation.--Of the allowances allocated for each year 
     pursuant to section 621, the Administrator shall allocate 20 
     percent of the allowances to the State of Alaska for the uses 
     described in subsection (b).
       (b) Use.--
       (1) In general.--For each calendar year, emission 
     allowances distributed to the State of Alaska under this 
     section, or the proceeds from the sale of the allowances, 
     shall be used only for projects and activities to plan for 
     and address the impacts of climate change on the State and 
     State residents.
       (2) State-specific analysis.--In order to receive 
     allowances under this section, the State of Alaska shall 
     develop a State-specific analysis of the potential climate-
     change impacts on residents of the State.
       (3) Implementation priorities.--Implementation priorities 
     shall be developed through an integrated analysis of impacts 
     and strategies.
       (c) Report.--The State of Alaska shall annually submit to 
     the appropriate congressional committees and the appropriate 
     Federal agencies a report describing the purposes for which 
     the State has used--
       (1) the allowances received under this section; and
       (2) the proceeds of the sale by the State of allowances 
     received under this section.

     SEC. 625. IMPACTS ON INDIAN TRIBES.

       (a) Purposes.--The purposes of this section are--
       (1) to demonstrate the commitment of the United States to 
     maintaining the unique and continuing relationship of the 
     United States with, and responsibility of the United States 
     to, Indian tribes;
       (2) to recognize the obligation of the United States to 
     prepare for the likely disproportionate consequences of 
     global climate change facing Indian tribes located throughout 
     the United States;
       (3) to establish, in accordance with the principles of 
     self-determination and government-to-government consultation, 
     cost-efficient mechanisms to provide for meaningful 
     participation by Indian tribes in the planning, 
     implementation, and administration of programs and services 
     authorized by this Act;
       (4) to support and assist Indian tribes in the development 
     of strong and stable tribal governments that are capable of 
     administering innovative programs and economic development 
     initiatives in the face of global climate change;
       (5) to establish a self-sustaining Tribal Climate Change 
     Assistance Fund to address local and regional impacts of 
     climate change affecting Indian tribes, now and in the 
     future;
       (6) to ensure that any proceeds from the sale of emission 
     allowances allocated for Indian tribes are soundly invested 
     and distributed by the Administrator through direct 
     consultation with Indian tribes as beneficiaries; and
       (7) to authorize the Administrator to distribute, by 
     regulation, funds to Indian tribes in accordance with the 
     principles established by the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.), in 
     consultation with the Secretary of the Interior and Indian 
     tribes, not later than 5 years after the date of enactment of 
     this Act.
       (b) Establishment of Program.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall establish a 
     program--
       (A) to assist Indian tribes in addressing local and 
     regional impacts of climate change in accordance with 
     subsection (a); and
       (B) to distribute proceeds from the Tribal Climate Change 
     Assistance Fund established by subsection (c) on an annual 
     basis, beginning not later than January 1, 2011.
       (2) Regulations.--The Administrator shall promulgate such 
     regulations as are necessary to establish and carry out the 
     program described in paragraph (1)--
       (A) in accordance with subchapter IV of chapter 5 of title 
     5, United States Code; and
       (B) in consultation with representatives of Indian tribes 
     located in each region of the Environmental Protection 
     Agency.
       (c) Fund.--There is established in the Treasury of the 
     United States a fund, to be known as the ``Tribal Climate 
     Change Assistance Fund''.
       (d) Auctions.--
       (1) In general.--In accordance with paragraph (2), to raise 
     funds for deposit in the Tribal Climate Change Assistance 
     Fund, for each of calendar years 2012 through 2050, the 
     Administrator shall--
       (A) auction 15 percent of the emission allowances allocated 
     pursuant to section 621 for the calendar year; and
       (B) immediately on completion of the auction, deposit 
     proceeds of the auction in the Tribal Climate Change 
     Assistance Fund.
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (e) Use of Funds.--
       (1) In general.--Amounts deposited in the Tribal Climate 
     Change Assistance Fund under subsection (d)(1)(B) that are in 
     excess of amounts appropriated for the applicable fiscal year 
     to carry out the Indian Environmental General Assistance 
     Program Act of 1992 (42 U.S.C. 4368b) and sections 103 and 
     360(d) of the Clean Air Act (42 U.S.C. 7403, 7601(d)) shall 
     be made available, without further appropriation or fiscal 
     year limitation, to the Administrator to carry out the 
     program established under subsection (b) in accordance with 
     the purposes described in paragraph (2).
       (2) Purposes.--The Administrator shall use amounts in the 
     Tribal Climate Change Assistance Fund--
       (A) to provide assistance to Indian tribes that face 
     disruption or dislocation as a result of climate change;
       (B) to assist Indian tribes in planning and designing 
     agricultural, forestry, and other land use-related projects 
     in accordance with the Indian Environmental General 
     Assistance Program Act of 1992 (42 U.S.C. 4368b);
       (C) to assist Indian tribes in the collection of greenhouse 
     gas and other air quality data through the Indian 
     Environmental General Assistance Program Act of 1992 (42 
     U.S.C. 4368b) and the Clean Air Act (42 U.S.C. 7401 et seq.);
       (D) to mitigate impacts on low-income Indian energy 
     consumers;
       (E) to promote energy efficiency (including support of 
     electricity and natural gas demand reduction, waste 
     minimization, and recycling programs);
       (F) to promote investment in nonemitting electricity 
     generation technology, including planning for the siting of 
     facilities employing that technology on tribal land;
       (G) to collect, evaluate, disseminate, and use information 
     necessary for affected coastal tribal communities to adapt to 
     climate change (such as information derived from inundation 
     prediction systems);
       (H) to address local or regional impacts of climate change 
     policy, including providing assistance to displaced workers;
       (I) to reduce hazardous fuels and prevent and suppress 
     wildland fire;
       (J) to fund rural, municipal, and agricultural water 
     projects that are consistent with the sustainable use of 
     water resources; and
       (K) to fund any other purposes an Indian tribe determines 
     to be necessary to mitigate any negative economic impacts as 
     a result of--
       (i) global warming; or
       (ii) new regulatory requirements as a result of this Act.
       (f) No Tribal Authority Requirement.--The Administrator 
     shall not require Indian tribes to obtain tribal authority 
     under section 360(d) of the Clean Air Act (42 U.S.C. 7601(d)) 
     as a condition of participation in any program authorized by 
     this subtitle.
       (g) Report.--An Indian tribe receiving allowances under 
     this section shall annually submit to the appropriate 
     congressional committees and the appropriate Federal agencies 
     a report describing the purposes for which the Indian tribe 
     has used--
       (1) the allowances received under this section; and
       (2) the proceeds of the sale by the Indian tribe of 
     allowances received under this section

[[Page S5079]]

Subtitle D--Partnerships With States, Localities, and Indian Tribes to 
                       Protect Natural Resources

     SEC. 631. STATE WILDLIFE ADAPTATION FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``State Wildlife 
     Adaptation Fund'' (referred to in this section as the 
     ``Fund'').
       (b) Auctions.--
       (1) In general.--In accordance with paragraph (2) and 
     subsection (c), for each of calendar years 2012 through 2050, 
     the Administrator shall auction a percentage of emission 
     allowances established for the calendar year pursuant to 
     section 201(a) to raise funds for deposit in the Fund.
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (c) Quantities of Emission Allowances Auctioned.--For each 
     calendar year of the period described in subsection (b)(1), 
     the Administrator shall auction a quantity of emission 
     allowances in accordance with the applicable percentages 
     described in the following table:


------------------------------------------------------------------------
                                                        Percentage for
                    Calendar year                      auction for Fund
------------------------------------------------------------------------
2012................................................                  2
2013................................................                  2
2014................................................                  2
2015................................................                  2
2016................................................                  2
2017................................................                  2
2018................................................                  2
2019................................................                  2
2020................................................                  2
2021................................................                  2
2022................................................                  2
2023................................................                  2
2024................................................                  3
2025................................................                  3
2026................................................                  3
2027................................................                  4
2028................................................                  4
2029................................................                  4
2030................................................                  4
2031................................................                  4
2032................................................                  4
2033................................................                  4
2034................................................                  4
2035................................................                  4
2036................................................                  4
2037................................................                  4
2038................................................                  4
2039................................................                  4
2040................................................                  4
2041................................................                  4
2042................................................                  4
2043................................................                  4
2044................................................                  4
2045................................................                  4
2046................................................                  4
2047................................................                  4
2048................................................                  4
2049................................................                  4
2050................................................                 4.
------------------------------------------------------------------------

       (d) Pittman-Robertson Wildlife Restoration Program.--
       (1) Deposit.--As soon as practicable after conducting an 
     auction under subsection (b), the Administrator shall deposit 
     78 percent of the proceeds of the auction in the Fund.
       (2) Use of proceeds.--Amounts deposited in the Fund under 
     paragraph (1) shall be made available, without further 
     appropriation or fiscal year limitation, to the Secretary of 
     the Interior for distribution to States through the Wildlife 
     Conservation and Restoration Account established under 
     section 3(a)(2) of the Pittman-Robertson Wildlife Restoration 
     Act (16 U.S.C. 669b(a)(2)), to carry out adaptation 
     activities in accordance with comprehensive State adaptation 
     strategies, as described in section 633.
       (e) Land and Water Conservation.--
       (1) Deposit.--As soon as practicable after conducting an 
     auction under subsection (b), the Administrator shall deposit 
     22 percent of the proceeds of the auction in the Land and 
     Water Conservation Fund established under section 2 of the 
     Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
     5).
       (2) Use.--Deposits to the Land and Water Conservation Fund 
     under paragraph (1) shall--
       (A) be supplemental to amounts appropriated pursuant to 
     section 3 of the Land and Water Conservation Fund Act of 1965 
     (16 U.S.C. 460l-6), which shall remain available for 
     nonadaptation needs; and
       (B) notwithstanding section 3 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l-6), be 
     available without further appropriation or fiscal year 
     limitation.
       (3) Allocations.--Of the amounts deposited in the Land and 
     Water Conservation Fund under paragraph (1)--
       (A) \1/6\ shall be allocated to the Secretary of the 
     Interior and made available on a competitive basis to carry 
     out adaptation activities through the acquisition of land and 
     interests in land under section 6 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l-8)--
       (i) to States, in accordance with comprehensive wildlife 
     conservation strategies, and to Indian tribes;
       (ii) notwithstanding section 5 of that Act (16 U.S.C. 460l-
     7); and
       (iii) in addition to grants provided pursuant to--

       (I) annual appropriations Acts;
       (II) the Energy Policy Act of 2005 (42 U.S.C. 15801 et 
     seq.); or
       (III) any other authorization for nonadaptation needs;

       (B) \1/3\ shall be allocated to the Secretary of the 
     Interior to carry out adaptation activities through the 
     acquisition of land and interests in land under section 7 of 
     the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 
     460l-9);
       (C) \1/6\ shall be allocated to the Secretary of 
     Agriculture and made available to the States to carry out 
     adaptation activities through the acquisition of land and 
     interests in land under section 7 of the Forest Legacy 
     Program under the Cooperative Forestry Assistance Act of 1978 
     (16 U.S.C. 2103c); and
       (D) \1/3\ shall be allocated to the Secretary of 
     Agriculture to carry out adaptation activities through the 
     acquisition of land and interests in land under section 7 of 
     the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 
     460l-9).
       (4) Expenditure of funds.--In allocating funds under 
     paragraph (2), the Secretary of the Interior and the 
     Secretary of Agriculture shall take into consideration 
     factors including--
       (A) the availability of non-Federal contributions from 
     State, local, or private sources;
       (B) opportunities to protect wildlife corridors or 
     otherwise to link or consolidate fragmented habitats;
       (C) opportunities to reduce the risk of catastrophic 
     wildfires, extreme flooding, or other climate-related events 
     that are harmful to fish, wildlife, and individuals;
       (D) the potential for conservation of species or habitat 
     types at serious risk due to climate change, ocean 
     acidification, and other stressors; and
       (E) the potential to provide enhanced access to land and 
     water for fishing, hunting, and other public recreational 
     uses.

     SEC. 632. COST-SHARING.

       Notwithstanding any other provision of law, a State or 
     Indian tribe that receives a grant under section 631 shall 
     provide 10 percent of the costs of each activity carried out 
     using the grant.

     SEC. 633. STATE COMPREHENSIVE ADAPTATION STRATEGIES.

       (a) In General.--Except as provided in subsection (b), 
     amounts made available to States pursuant to this subtitle 
     shall be used only for activities that are consistent with a 
     State strategy that has been approved by--
       (1) the Secretary of the Interior; and
       (2) for any State with a coastal zone (within the meaning 
     of the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
     seq.)), by the Secretary of Commerce, subject to the 
     condition that approval by the Secretary of Commerce shall be 
     required only for those portions of the strategy relating to 
     activities affecting the coastal zone.
       (b) Initial Receipt of Funds.--
       (1) In general.--Until the earlier of the date that is 3 
     years after the date of enactment of this Act or the date on 
     which a State receives approval for a State strategy, a State 
     shall be eligible to receive funds under this subtitle for 
     adaptation activities that are--
       (A) consistent with the comprehensive wildlife strategy of 
     the State and, if appropriate, other fish, wildlife, and 
     conservation strategies; and
       (B) in accordance with a workplan developed in coordination 
     with--
       (i) the Secretary of the Interior; and
       (ii) for any State with a coastal zone (within the meaning 
     of the Coastal Zone Management Act (16 U.S.C. 1451 et seq.)), 
     the Secretary of Commerce, subject to the condition that 
     coordination with the Secretary of Commerce shall be required 
     only for those portions of the strategy relating to 
     activities affecting the coastal zone.
       (2) Pending approval.--During the period for which approval 
     by the applicable Secretary of a State strategy described in 
     paragraph (1) is pending, the State may continue receiving 
     funds under this subtitle pursuant to the workplan described 
     paragraph (1)(B).
       (c) Requirements.--A State strategy shall--
       (1) describe the impacts of climate change and ocean 
     acidification on the diversity and health of the fish, 
     wildlife, and plant populations, habitats, aquatic and 
     terrestrial ecosystems, and associated ecological processes;
       (2) describe and prioritize proposed conservation, 
     protection, and restoration actions to assist fish, wildlife, 
     aquatic and terrestrial ecosystems, and plant populations in 
     adapting to those impacts;
       (3) establish programs for monitoring the impacts of 
     climate change on fish, wildlife, and plant populations, 
     habitats, aquatic and terrestrial ecosystems, and associated 
     ecological processes;
       (4) include strategies, specific conservation, protection, 
     and restoration actions, and a timeframe for implementing 
     conservation actions for fish, wildlife, and plant 
     populations, habitats, aquatic and terrestrial ecosystems, 
     and associated ecological processes;
       (5) establish methods for--
       (A) assessing the effectiveness of conservation, 
     protection, and restoration actions

[[Page S5080]]

     taken to assist fish, wildlife, and plant populations, 
     habitats, aquatic and terrestrial ecosystems and associated 
     ecological processes in adapting to those impacts; and
       (B) updating those actions to respond appropriately to new 
     information or changing conditions;
       (6) be developed--
       (A) with the participation of the State fish and wildlife 
     agency, the State agency responsible for administration of 
     Land and Water Conservation Fund grants, the State Forest 
     Legacy Program coordinator, the State environmental agency, 
     and the State coastal agency; and
       (B) in coordination with the Secretary of the Interior and, 
     if applicable, the Secretary of Commerce;
       (7) provide for solicitation and consideration of public 
     and independent scientific input;
       (8) include strategies that engage youth and young adults 
     (including youth and young adults working in full-time or 
     part-time youth service or conservation corps programs) to 
     provide the youth and young adults with opportunities for 
     meaningful conservation and community service, and to 
     encourage opportunities for employment in the private sector 
     through partnerships with employers;
       (9) take into consideration research and information 
     contained in, and coordinate with and integrate the goals and 
     measures identified in, as appropriate, other fish, wildlife, 
     aquatic and terrestrial ecosystems, and habitat conservation 
     strategies, including--
       (A) the national fish habitat action plan;
       (B) plans under the North American Wetlands Conservation 
     Act (16 U.S.C. 4401 et seq.);
       (C) the Federal, State, and local partnership known as 
     ``Partners in Flight'';
       (D) federally approved coastal zone management plans under 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
     seq.);
       (E) federally approved regional fishery management plans 
     and habitat conservation activities under the Magnuson 
     Fishery Conservation and Management Act (16 U.S.C. 1801 et 
     seq.);
       (F) the national coral reef action plan;
       (G) recovery plans for threatened species and endangered 
     species under section 4(f) of the Endangered Species Act of 
     1973 (16 U.S.C. 1533(f));
       (H) habitat conservation plans under section 10 of that Act 
     (16 U.S.C. 1539);
       (I) other Federal and State plans for imperiled species;
       (J) the United States shorebird conservation plan;
       (K) the North American waterbird conservation plan;
       (L) federally approved watershed plans under the Federal 
     Water Pollution Control Act (33 U.S.C. 1251 et seq.); and
       (M) other State-based strategies that comprehensively 
     implement adaptation activities to remediate the effects of 
     climate change and ocean acidification on fish, wildlife, 
     habitats, and aquatic and terrestrial ecosystems; and
       (10) be incorporated into a revision of the comprehensive 
     wildlife conservation strategy of a State--
       (A) that has been submitted to the United States Fish and 
     Wildlife Service; and
       (B)(i) that has been approved by the Service; or
       (ii) on which a decision on approval is pending.
       (d) Updating.--Each State strategy under this section shall 
     be updated not less frequently than once every 5 years.

                  TITLE VII--RECOGNIZING EARLY ACTION

     SEC. 701. REGULATIONS.

       Not later than 2 years after the date of enactment of this 
     Act, the Administrator shall promulgate regulations 
     establishing a program, to be known as the ``Early Action 
     Program'', for distributing emission allowances to entities 
     that emit greenhouse gas in the United States, in recognition 
     of verified greenhouse gas emission reductions that--
       (1) occurred before the date of promulgation of the 
     regulations; and
       (2) resulted from actions taken by the entities after 
     January 1, 1994, and before the date of enactment of this 
     Act.

     SEC. 702. ALLOCATION.

       Not later than 2 years after the date of enactment of this 
     Act, the Administrator shall allocate to the Early Action 
     Program established under section 701 quantities of the 
     emission allowances established for calendar years 2012 
     through 2025 pursuant to section 201(a), in accordance with 
     the following table:


------------------------------------------------------------------------
                                                        Percentage for
                                                         allocation to
                    Calendar year                        Early Action
                                                            Program
------------------------------------------------------------------------
2012................................................                  5
2013................................................                  5
2014................................................                  5
2015................................................                  4
2016................................................                  3
2017................................................                  3
2018................................................                  1
2019................................................                  1
2020................................................                  1
2021................................................                  1
2022................................................                  1
2023................................................                  1
2024................................................                  1
2025................................................                 1.
------------------------------------------------------------------------

     SEC. 703. GENERAL DISTRIBUTION.

       Not later than 4 years after the date of enactment of this 
     Act, the Administrator shall complete distribution to 
     entities described in section 701 of all emission allowances 
     allocated to the Early Action Program under section 702.

     SEC. 704. DISTRIBUTION TO ENTITIES HOLDING STATE EMISSION 
                   ALLOWANCES.

       (a) Definition of Eligible Entity.--In this section, the 
     term ``eligible entity'' means an entity that--
       (1) is located in the United States; and
       (2) as of December 31, 2011, holds emission allowances 
     issued--
       (A) by the State of California; or
       (B) for the Regional Greenhouse Gas Initiative.
       (b) Distribution.--Of the quantity of emission allowances 
     allocated for the Early Action Program under section 702, 
     each eligible entity shall receive emission allowances 
     sufficient to compensate the eligible entity for the cost to 
     the eligible entity of obtaining and holding the emission 
     allowances under subsection (a)(2).

     SEC. 705. DISTRIBUTION TO POWER PLANTS THAT REPOWERED 
                   PURSUANT TO CONSENT DECREES.

       (a) Definition of Eligible Facility.--In this section, the 
     term ``eligible facility'' means an electricity generating 
     facility that--
       (1) is located in the United States; and
       (2) repowered from coal before January 1, 2005, pursuant to 
     a consent decree.
       (b) Distribution.--Subject to subsection (c), of the 
     quantity of emission allowances allocated for the Early 
     Action Program under section 702, each owner or operator of 
     an eligible facility shall receive a quantity of emission 
     allowances equal to the sum of--
       (1) the verified quantity of metric tons of carbon dioxide 
     the emission of which by the eligible facility was avoided as 
     a result of the repowering, during the period beginning on 
     the date on which the repowering began and ending on the date 
     of enactment of this Act; and
       (2) the aggregate quantity of emission allowances that, as 
     a result of the lower annual carbon dioxide emissions 
     resulting from the repowering, will not be distributed to the 
     owner or operator of the facility pursuant to subtitle F of 
     title V.
       (c) Limitation.--Notwithstanding subsection (b), the total 
     quantity of emission allowances distributed pursuant to this 
     section shall not exceed 80,000,000.

     SEC. 706. DISTRIBUTION TO CARBON CAPTURE AND SEQUESTRATION 
                   PROJECTS.

       (a) Definition of Eligible Project.--In this section, the 
     term ``eligible project'' means a carbon capture and 
     sequestration project associated with an anthropogenic source 
     of carbon dioxide in the United States, the performance of 
     which is monitored by a network developed by an international 
     collaborative government and industry research program.
       (b) Distribution.--The regulations established pursuant to 
     section 701 shall provide for the distribution of emission 
     allowances to eligible projects.
       (c) Limitation.--Notwithstanding subsection (b), the total 
     quantity of emission allowances distributed pursuant to this 
     section shall not exceed 25,000,000.

              TITLE VIII--EFFICIENCY AND RENEWABLE ENERGY

                    Subtitle A--Efficient Buildings

     SEC. 801. ALLOCATION.

       Not later than 330 days before the beginning of each of 
     calendar years 2012 through 2050, the Administrator shall 
     allocate to the Climate Change Technology Board established 
     by section 431 0.75 percent of the emission allowances 
     established pursuant to section 201(a) for that calendar 
     year, for the purpose of conducting the Efficient Buildings 
     Allowance Program established pursuant to section 802.

     SEC. 802. EFFICIENT BUILDINGS ALLOWANCE PROGRAM.

       (a) In General.--The Climate Change Technology Board shall 
     establish and carry out a program, to be known as the 
     ``Efficient Buildings Allowance Program,'' for distributing 
     the emission allowances allocated pursuant to section 801 
     among owners of buildings in the United States as reward for 
     constructing highly-efficient buildings in the United States 
     and for increasing the efficiency of existing buildings in 
     the United States.
       (b) Requirements.--Emission allowances shall be distributed 
     under this section to owners of buildings in the United 
     States based on the extent to which projects relating to the 
     buildings of the owners result in verifiable, additional, and 
     enforceable improvements in energy performance--
       (1) in new or renovated buildings that demonstrate 
     exemplary performance by achieving a minimum score of 75 on 
     the benchmarking tool of the Energy Star program established 
     by section 324A of the Energy Policy and Conservation Act (42 
     U.S.C. 6294a), or an equivalent score on an established 
     energy performance benchmarking metric selected by the 
     Climate Change Technology Board; and
       (2) in retrofitted existing buildings that demonstrate 
     substantial improvement in the score or rating on that 
     benchmarking tool by a minimum of 30 points, or an equivalent 
     improvement using an established performance benchmarking 
     metric selected by the Climate Change Technology Board.

[[Page S5081]]

       (c) Priority.--In distributing the allowances, priority 
     shall given to projects--
       (1) completed by building owners with a proven track record 
     of building energy performance; or
       (2) that result in measurable greenhouse gas reduction 
     benefits not encompassed within the metrics of the Energy 
     Star program described in subsection (b)(1).

             Subtitle B--Efficient Equipment and Appliances

     SEC. 811. ALLOCATION.

       Not later than 330 days before the beginning of each of 
     calendar years 2012 through 2050, the Administrator shall 
     allocate to the Climate Change Technology Board established 
     by section 431 0.75 percent of the emission allowances 
     established pursuant to section 201(a) for that calendar 
     year, for the purpose of conducting the Super-Efficient 
     Equipment and Appliances Development Program established 
     pursuant to section 812.

     SEC. 812. SUPER-EFFICIENT EQUIPMENT AND APPLIANCES DEPLOYMENT 
                   PROGRAM.

       (a) In General.--The Climate Change Technology Board shall 
     establish and administer a program, to be known as the 
     ``Super-Efficient Equipment and Appliances Deployment 
     Program'', to distribute the emission allowances allocated 
     pursuant to section 811 among retailers and distributors in 
     the United States as reward for increasing the sales by the 
     retailers and distributors of high-efficiency building 
     equipment, high-efficiency consumer electronics, and high-
     efficiency household appliances through marketing strategies 
     such as consumer rebates, with the goal of minimizing life-
     cycle costs for consumers and maximizing public benefit.
       (b) Size of Individual Rewards.--The size of each reward 
     for each product-type shall be determined by the Climate 
     Change Technology Board, in consultation with the 
     Administrator, the Secretary of Energy, State and utility 
     efficiency program administrators, and national laboratories.
       (c) Reporting.--Each retailer and distributor participating 
     in the program under this section shall be required to report 
     to the Climate Change Technology Board, on a confidential 
     basis for program-design purposes--
       (1) the number of products sold within each product-type; 
     and
       (2) wholesale purchase-price data.
       (d) Cost-Effectiveness Requirement.--
       (1) Definitions.--In this subsection:
       (A) Cost-effectiveness.--The term ``cost-effectiveness'' 
     means a measure of aggregate savings equal to the product 
     obtained by multiplying--
       (i) the net number of highly-efficient pieces of equipment, 
     electronics, and appliances sold by a retailer or distributor 
     in a calendar year; by
       (ii) the savings during the projected useful life, but not 
     to exceed 10 years, of the pieces of equipment, electronics, 
     and appliances, including the impact of any documented 
     measures to retire low-performing devices at the time of 
     purchase of highly-efficient substitutes.
       (B) Savings.--The term ``savings'' means megawatt-hours of 
     electricity or million British thermal units of other fuels 
     saved by a product, in comparison to projected energy 
     consumption based on the efficiency performance of displaced 
     new product sales.
       (2) Requirement.--The Climate Change Technology Board shall 
     make cost-effectiveness a top priority in distributing 
     emission allowances pursuant to this section.

                  Subtitle C--Efficient Manufacturing

     SEC. 821. ALLOCATION.

       Not later than 330 days before the beginning of each of 
     calendar years 2012 through 2050, the Administrator shall 
     allocate to the Climate Change Technology Board established 
     by section 431 0.75 percent of the emission allowances 
     established pursuant to section 201(a) for that calendar 
     year, for the purpose of conducting the Efficient 
     Manufacturing Program established pursuant to section 822.

     SEC. 822. EFFICIENT MANUFACTURING PROGRAM.

       (a) In General.--The Climate Change Technology Board shall 
     establish and carry out a program, to be known as the 
     ``Efficient Manufacturing Program,'' to distribute the 
     emission allowances allocated pursuant to section 821 among 
     owners and operators of manufacturing facilities in the 
     United States, as reward for achieving high levels of 
     efficiency in the operations of the owners and operators.
       (b) Requirements.--The Efficient Manufacturing Program 
     established pursuant to subsection (a) shall provide that--
       (1) the rewards of emission allowances under the Program 
     shall include rewards for use of recycled material in 
     manufacturing; and
       (2) the Climate Change Technology Board shall give priority 
     in distributing emission allowances to entities that--
       (A) document the greatest use of domestically-sourced parts 
     and components;
       (B) return to productive service existing idle 
     manufacturing capacity;
       (C) are located in States with the greatest availability of 
     unemployed manufacturing workers;
       (D) compensate workers, at a minimum, in an amount that is 
     equal to at least 100 percent of the State average 
     manufacturing wage, plus health insurance benefits;
       (E) demonstrate a high probability of commercial success; 
     and
       (F) achieve other criteria, as the Climate Change 
     Technology Board determines to be appropriate.

                      Subtitle D--Renewable Energy

     SEC. 831. ALLOCATION.

       (a) First Period.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2030, the 
     Administrator shall allocate to the Climate Change Technology 
     Board established by section 431 4 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year.
       (b) Second Period.--Not later than 330 days before the 
     beginning of each of calendar years 2031 through 2050, the 
     Administrator shall allocate to the Climate Change Technology 
     Board established by section 431 1 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year.

     SEC. 832. BONUS ALLOWANCES FOR RENEWABLE ENERGY.

       (a) Definition of Renewable-Energy Source.--In this 
     section, the term ``renewable-energy source'' means energy 
     from 1 or more of the following sources:
       (1) Solar energy.
       (2) Wind.
       (3) Geothermal energy.
       (4) Incremental hydropower.
       (5) Biomass.
       (6) Ocean waves.
       (7) Landfill gas.
       (8) Livestock methane.
       (9) Fuel cells powered with a renewable-energy source.
       (b) Bonus Allowances.--The Climate Change Technology Board 
     shall distribute the emission allowances allocated pursuant 
     to section 831 among owners, operators, and developers of 
     facilities, including distributed-energy and transmission 
     systems, in the United States that harness a renewable-energy 
     source, as reward for the start-up, expansion, and operation 
     of the facilities.
       (c) Administration.--In distributing emission allowances 
     pursuant to this section, the Climate Change Technology Board 
     shall provide appropriate rewards for regulated investor-
     owned utilities, municipal utilities, electric cooperatives, 
     and independent power producers.
       (d) Limitation.--A project may not receive a distribution 
     of emission allowances under this section if the project--
       (1) receives an award under subtitle A of title IX; or
       (2) is supported under subtitle A or subtitle C of title 
     III.
       (e) Requirements.--
       (1) In general.--A reward of allowances for construction, 
     alteration, or repair under this subtitle shall be 
     conditioned on a written assurance of payment, to all 
     laborers and mechanics employed by contractors or 
     subcontractors for that work, of wages at rates not less than 
     those prevailing on the same types of work in the locality, 
     as determined by the Secretary of Labor in accordance with 
     sections 3141 through 3144, 3146, and 3147 of title 40, 
     United States Code.
       (2) Authority of secretary of labor.--With respect to the 
     labor standards described in paragraph (1), the Secretary of 
     Labor shall have the authority and functions established in 
     Reorganization Plan Number 14 of 1950 (5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.

         TITLE IX--LOW-CARBON ELECTRICITY AND ADVANCED RESEARCH

        Subtitle A--Low- and Zero-Carbon Electricity Technology

     SEC. 901. DEFINITIONS.

       In this subtitle:
       (1) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the costs of engineering tasks 
     relating to--
       (A) redesigning manufacturing processes to begin producing 
     qualifying components and zero- or low-carbon generation 
     technologies;
       (B) designing new tooling and equipment for production 
     facilities that produce qualifying components and zero- or 
     low-carbon generation technologies; and
       (C) establishing or expanding manufacturing operations for 
     qualifying components and zero- or low-carbon generation 
     technologies.
       (2) Qualifying component.--The term ``qualifying 
     component'' means a component that the Secretary of Energy 
     determines to be specially designed for zero- or low-carbon 
     generation technology.
       (3) Savings.--The term ``savings'' means megawatt-hours of 
     electricity or million British thermal units of natural gas 
     saved by a product, in comparison to projected energy 
     consumption under an efficiency standard applicable to the 
     product.
       (4) Zero- or low-carbon generation.--The term ``zero- or 
     low-carbon generation'' means generation of electricity by an 
     electric generation unit that--
       (A) emits no carbon dioxide into the atmosphere; and
       (B) was placed into commercial service after the date of 
     enactment of this Act.
       (5) Zero- or low-carbon generation technology.--The term 
     ``zero- or low-carbon generation technology'' means a 
     technology used to create zero- or low-carbon generation.

     SEC. 902. LOW- AND ZERO-CARBON ELECTRICITY TECHNOLOGY FUND.

       There is established in the Treasury of the United States a 
     fund, to be known as the ``Low- and Zero-Carbon Electricity 
     Technology Fund''.

     SEC. 903. AUCTIONS.

       (a) First Period.--

[[Page S5082]]

       (1) In general.--For each of calendar years 2012 through 
     2021, the Administrator shall, in accordance with paragraph 
     (2), auction 1.75 percent of the quantity of emission 
     allowances established pursuant to section 201(a) for the 
     calendar year to raise funds for deposit in the Low- and 
     Zero-Carbon Electricity Technology Fund.
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (b) Second Period.--
       (1) In general.--For each of calendar years 2022 through 
     2030, the Administrator shall, in accordance with paragraph 
     (2), auction 2 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for the calendar year 
     to raise funds for deposit in the Low- and Zero-Carbon 
     Electricity Technology Fund.
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (c) Third Period.--
       (1) In general.--For each of calendar years 2031 through 
     2050, the Administrator shall, in accordance with paragraph 
     (2), auction 1 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for the calendar year 
     to raise funds for deposit in the Low- and Zero-Carbon 
     Electricity Technology Fund.
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.

     SEC. 904. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 903, immediately on receipt of 
     those proceeds, in the Low- and Zero-Carbon Electricity 
     Technology Fund.

     SEC. 905. USE OF FUNDS.

       For each of calendar years 2012 through 2050, all funds 
     deposited in the Low- and Zero-Carbon Electricity Technology 
     Fund during the preceding calendar year pursuant to section 
     904 shall be made available, without further appropriation or 
     fiscal year limitation, to the Climate Change Technology 
     Board established by section 431 to carry out the financial 
     incentives program established under section 906.

     SEC. 906. FINANCIAL INCENTIVES PROGRAM.

       For fiscal year 2011 and each fiscal year thereafter, the 
     Climate Change Technology Board shall competitively award 
     financial incentives under this subtitle in the technology 
     categories of--
       (1) the production of electricity from new zero- or low-
     carbon generation; and
       (2) facility establishment or conversion by manufacturers 
     and component suppliers of zero- or low-carbon generation 
     technology.

     SEC. 907. REQUIREMENTS.

       (a) In General.--The Climate Change Technology Board shall 
     make awards under this section to domestic producers of new 
     zero- or low-carbon generation, and domestic facilities and 
     operations of manufacturers and component suppliers of zero- 
     or low-carbon generation technology--
       (1) in the case of producers of new zero- or low-carbon 
     generation, based on the bid of each generator in terms of 
     dollars per megawatt-hour of electricity generated; and
       (2) in the case of qualifying manufacturers of zero- or 
     low-carbon generation technology, based on the criteria 
     described in section 909.
       (b) Acceptance of Bids.--
       (1) In general.--In making awards under paragraphs (1) and 
     (2) of subsection (a), the Climate Change Technology Board 
     shall--
       (A) solicit bids for reverse auction from appropriate 
     producers and manufacturers, as determined by the Climate 
     Change Technology Board; and
       (B) award financial incentives to the producers and 
     manufacturers that submit the lowest bids that meet the 
     requirements established by the Climate Change Technology 
     Board.
       (2) Factors for conversion.--
       (A) In general.--For the purpose of assessing bids under 
     paragraph (1), the Climate Change Technology Board shall 
     specify a factor for converting megawatt-hours of electricity 
     and million British thermal units of natural gas to common 
     units.
       (B) Requirement.--The conversion factor shall be based on 
     the relative greenhouse gas emission benefits of electricity 
     and natural gas conservation.

     SEC. 908. FORMS OF AWARDS.

       (a) Zero- and Low-Carbon Generators.--
       (1) In general.--Subject to paragraph (2), an award for 
     zero- or low-carbon generation under this subtitle shall be 
     in the form of a contract to provide a production payment for 
     commercial service of the generation unit in an amount equal 
     to the product obtained by multiplying--
       (A) the amount of the bid by the producer of the zero- or 
     low-carbon generation; and
       (B) the quantity of net megawatt-hours generated by the 
     zero- or low-carbon generation unit each year during the 
     first 10 years following the end of the calendar year of the 
     award.
       (2) Commercial service.--A producer may receive an award 
     for a generation unit under this subsection only if the first 
     year of commercial service of the generation unit occurs 
     within 5 years of the end of the calendar year of the award.
       (b) Manufacturing of Zero- or Low-Carbon Generation 
     Technology.--
       (1) In general.--An award for the establishment of a 
     facility or conversion costs for zero- or low-carbon 
     generation technology shall be in an amount equal to not more 
     than 30 percent of the cost of--
       (A) establishing, reequipping, or expanding a manufacturing 
     facility to produce--
       (i) qualifying zero- or low-carbon generation technology; 
     or
       (ii) qualifying components;
       (B) engineering integration costs of zero- or low-carbon 
     generation technology and qualifying components; and
       (C) property, machine tools, and other equipment acquired 
     or constructed primarily to enable the recipient to test 
     equipment necessary for the construction or operation of a 
     zero- or low-carbon generation facility.
       (2) Minimum amount.--The Climate Change Technology Board 
     shall use not less than \1/4\ of the amounts made available 
     to carry out this section to make awards to entities for the 
     manufacturing of zero- or low-carbon generation technology.

     SEC. 909. SELECTION CRITERIA.

       (a) In General.--In making awards under this subtitle to 
     qualifying manufacturers of zero- or low-carbon generation 
     technology and qualifying components, the Climate Change 
     Technology Board shall select manufacturers that--
       (1) document the greatest use of domestically-sourced parts 
     and components;
       (2) return to productive service existing idle 
     manufacturing capacity;
       (3) are located in States with the greatest availability of 
     unemployed manufacturing workers;
       (4) compensate workers in an amount that is at least 100 
     percent of the State average manufacturing wage, plus health 
     insurance benefits;
       (5) demonstrate a high probability of commercial success; 
     and
       (6) achieve other criteria, as the Climate Change 
     Technology Board determines to be appropriate.
       (b) Requirements.--
       (1) In general.--Funding for construction, alteration, or 
     repair under this subtitle shall be conditioned on a written 
     assurance of payment, to all laborers and mechanics employed 
     by contractors or subcontractors for the construction, 
     alteration, or repair, of wages at rates not less than those 
     prevailing on the same types of work in the locality, as 
     determined by the Secretary of Labor in accordance with 
     sections 3141 through 3144, 3146, and 3147 of title 40, 
     United States Code.
       (2) Authority of secretary of labor.--The Secretary of 
     Labor shall, with respect to the labor standards described in 
     paragraph (1), have the authority and functions set forth in 
     Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.

                     Subtitle B--Advanced Research

     SEC. 911. AUCTIONS.

       (a) In General.--For each of calendar years 2012 through 
     2050, the Administrator shall, in accordance with subsection 
     (b), auction 0.25 percent of the quantity of emission 
     allowances established pursuant to section 201(a) for the 
     calendar year to raise funds for deposit in the energy 
     transformation acceleration fund described in section 912.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.

     SEC. 912. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 911, immediately on receipt of 
     those proceeds, in an energy transformation acceleration fund 
     in the Treasury that is administered by the Director of the 
     Advanced Research Projects Agency of the Department of 
     Energy.

     SEC. 913. USE OF FUNDS.

       No amounts deposited in the energy transformation 
     acceleration fund pursuant to section 912 shall be disbursed, 
     except pursuant to an appropriation Act.

[[Page S5083]]

                        TITLE X--FUTURE OF COAL

      Subtitle A--Kick-Start for Carbon Capture and Sequestration

     SEC. 1001. CARBON CAPTURE AND SEQUESTRATION TECHNOLOGY FUND.

       There is established in the Treasury of the United States a 
     fund, to be known as the ``Carbon Capture and Sequestration 
     Technology Fund'' (referred to in this subtitle as the 
     ``Fund''), consisting of such amounts as are deposited in the 
     Fund under section 1003.

     SEC. 1002. AUCTIONS.

       Not later than 120 days after the date of enactment of this 
     Act, and annually thereafter through 2022, the Administrator 
     shall auction, to raise funds for deposit in the Fund, 1 
     percent of the quantity of emission allowances established 
     pursuant to section 201(a) for the calendar year that occurs 
     3 years after the calendar year during which the auction is 
     conducted.

     SEC. 1003. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 1002, immediately on receipt of 
     those proceeds, in the Fund.

     SEC. 1004. USE OF FUNDS.

       (a) Expenditures From Fund.--On request by the Climate 
     Change Technology Board established by section 431 (referred 
     to in this subtitle as the ``Board''), the Secretary of the 
     Treasury shall transfer from the Fund to the Board such 
     amounts as the Board determines are necessary to carry out 
     the Kick-Start Program under section 1005.
       (b) Availability of Funds.--Funds transferred under 
     subsection (a) shall be made available to the Board without 
     further appropriation or fiscal year limitation.

     SEC. 1005. KICK-START PROGRAM.

       (a) In General.--The Board shall use the amounts in the 
     Fund to establish and implement a program for early 
     deployment of carbon capture and sequestration technology in 
     the United States (referred to in this section as the ``Kick-
     Start Program'').
       (b) Goal.--The Board shall design and operate the Kick-
     Start Program with the goal of rapidly bringing into 
     operation in the United States not fewer than 5 nor more than 
     10 commercial facilities that capture and geologically 
     sequester carbon released when coal is used to generate 
     electricity.
       (c) Basis.--The Board shall base the Kick-Start Program on 
     the ``Early Deployment Fund'' recommendation contained in the 
     final report issued by the Advanced Coal Technology Work 
     Group of the Clean Air Act Advisory Committee of the 
     Environmental Protection Agency and dated January 29, 2008.
       (d) Coal Diversity.--The Kick-Start Program shall ensure 
     that a range of domestic coal types is employed in facilities 
     receiving support under the Kick-Start Program.
       (e) Priority.--Awards of financial support under the Kick-
     Start Program shall be made in a manner that maximizes the 
     avoidance or reduction of greenhouse gas emissions.
       (f) Requirements.--
       (1) In general.--As a condition of receiving funding for 
     construction, alteration, or repair activities under the 
     Kick-Start Program, an individual or entity shall provide, to 
     each laborer and mechanic employed by each contractor or 
     subcontractor for the activity, a written assurance of 
     payment of wages at rates not less than those prevailing on 
     the same types of work in the locality, as determined by the 
     Secretary of Labor in accordance with sections 3141 through 
     3144, 3146, and 3147 of title 40, United States Code.
       (2) Authority of secretary of labor.--With respect to the 
     labor standards described in paragraph (1), the Secretary of 
     Labor shall have the authority and functions established in 
     Reorganization Plan Number 14 of 1950 (5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.

   Subtitle B--Long-Term Carbon Capture and Sequestration Incentives

     SEC. 1011. ALLOCATION.

       Not later than 2 years after the date of enactment of this 
     Act, the Administrator shall--
       (1) establish an account to be known as the ``Bonus 
     Allowance Account'' for carbon capture and sequestration 
     projects in the United States; and
       (2) allocate to the Bonus Allowance Account quantities of 
     the emission allowances established for calendar years 2012 
     through 2050 pursuant to section 201(a) in accordance with 
     the following table:


------------------------------------------------------------------------
                                               Percentage for allocation
                Calendar Year                 to Bonus Allowance Account
------------------------------------------------------------------------
2012........................................  3
2013........................................  3
2014........................................  3
2015........................................  3
2016........................................  3
2017........................................  3
2018........................................  3
2019........................................  3
2020........................................  3
2021........................................  3
2022........................................  3
2023........................................  3
2024........................................  3
2025........................................  3
2026........................................  4
2027........................................  4
2028........................................  4
2029........................................  4
2030........................................  4
2031........................................  1
2032........................................  1
2033........................................  1
2034........................................  1
2035........................................  1
2036........................................  1
2037........................................  1
2038........................................  1
2039........................................  1
2040........................................  1
2041........................................  1
2042........................................  1
2043........................................  1
2044........................................  1
2045........................................  1
2046........................................  1
2047........................................  1
2048........................................  1
2049........................................  1
2050........................................  1.
------------------------------------------------------------------------

     SEC. 1012. QUALIFYING PROJECTS.

       (a) Definitions.--In this section:
       (1) Commenced.--The term ``commenced'', with respect to 
     construction, means that an owner or operator has--
       (A) obtained the necessary permits to undertake a 
     continuous program of construction; and
       (B) entered into a binding contractual obligation, with 
     substantial financial penalties for cancellation, to 
     undertake a program described in subparagraph (A).
       (2) Construction.--The term ``construction'' means the 
     fabrication, erection, or installation of the technology for 
     a carbon capture and sequestration project.
       (3) New entrant.--The term ``new entrant'' means an 
     electric generating unit that begins operation after the date 
     of enactment of this Act.
       (b) Eligibility.--To be eligible to receive emission 
     allowances under this subtitle, a carbon capture and 
     sequestration project shall--
       (1) comply with such criteria and procedures as the 
     Administrator may establish, including a requirement, as 
     prescribed in subsection (c), for an annual emission 
     performance standard for carbon dioxide emissions from any 
     unit for which allowances are allocated;
       (2) sequester, in a geological formation permitted by the 
     Administrator for that purpose in accordance with regulations 
     promulgated under part C of the Safe Drinking Water Act (42 
     U.S.C. 300h et seq.), carbon dioxide captured from any unit 
     for which allowances are allocated;
       (3) have begun operation during the period beginning on 
     January 1, 2008, and ending on December 31, 2035; and
       (4) not produce a transportation fuel that contains more 
     than 10 kilograms of fossil-based carbon per million British 
     thermal units, higher heat value.
       (c) Emission Performance Standards.--Subject to subsection 
     (d), a carbon capture and sequestration project shall be 
     eligible to receive emission allowances under this subtitle 
     only if the project achieves 1 of the following emission 
     performance standards for limiting carbon dioxide emissions 
     from the unit:
       (1)(A) An electric generation unit that is not a new 
     entrant and that commences operation of carbon capture and 
     sequestration equipment before January 1, 2016, shall--
       (i) treat at least the amount of flue gas equivalent to 100 
     megawatts of the output of the generation unit; and
       (ii) be designed to capture and sequester at least 85 
     percent of the carbon dioxide in that flue gas.
       (B) The bonus allowance adjustment ratio under section 
     1013(b) shall apply only to the megawatt-hours and carbon 
     dioxide emissions attributable to the treated share of the 
     flue gas of the generation unit.
       (2) An electric generation unit that is not a new entrant 
     and that commences operation of carbon capture and 
     sequestration equipment on or after January 1, 2016, shall 
     achieve an average annual emission rate of not more than 
     1,200 pounds of carbon dioxide per megawatt-hour of net 
     electricity generation, after subtracting the carbon dioxide 
     that is captured and sequestered.
       (3) A new entrant electric generation unit for which 
     construction of the unit commenced before July 1, 2018, shall 
     achieve an average annual emission rate of not more than 800 
     pounds of carbon dioxide per megawatt-hour of net electricity 
     generation, after subtracting the carbon dioxide that is 
     captured and sequestered.
       (4) A new entrant electric generation unit for which 
     construction of the unit commenced on or after July 1, 2018, 
     shall achieve an average annual emission rate of not more 
     than 350 pounds of carbon dioxide per megawatt-hour of net 
     electricity generation, after subtracting the carbon dioxide 
     that is captured and sequestered.
       (5) Any unit at a covered entity that is not an electric 
     generation unit shall achieve an average annual emission rate 
     that is achieved by the capture and sequestration of a 
     minimum of 85 percent of the total carbon dioxide emissions 
     produced by the unit.
       (d) Adjustment of Performance Standards.--
       (1) In general.--The Climate Change Technology Board may 
     adjust the emission performance standard for a carbon capture 
     and sequestration project described in subsection (c) for an 
     electric generation unit that uses subbituminous coal, 
     lignite, or petroleum coke in significant quantities.
       (2) Requirement.--In any case described in paragraph (1), 
     the performance standard for the project shall prescribe an 
     annual emission rate that requires the project to achieve

[[Page S5084]]

     an equivalent reduction from uncontrolled carbon dioxide 
     emissions levels from the use of subbituminous coal, lignite, 
     or petroleum coke, as compared to the emission rate that the 
     project would have achieved if that unit had combusted only 
     bituminous coal during the particular year.

     SEC. 1013. DISTRIBUTION.

       (a) Calculation.--
       (1) In general.--Subject to section 1014, for each of 
     calendar years 2012 through 2039, the Administrator shall 
     distribute emission allowances from the Bonus Allowance 
     Account established under section 1011 to each qualifying 
     project under this subtitle in a quantity equal to the 
     product obtained by multiplying--
       (A) the bonus allowance adjustment factor, as determined 
     under subsection (b);
       (B) the number of metric tons of carbon dioxide emissions 
     avoided through capture and geological sequestration of 
     emissions by the project, as determined in accordance with 
     paragraph (2); and
       (C) the bonus allowance rate for the applicable calendar 
     year, as provided in the following table:

------------------------------------------------------------------------
                                                       Bonus  Allowance
                    Calendar Year                            Rate
------------------------------------------------------------------------
2012................................................                2
2013................................................                2
2014................................................                2
2015................................................                2
2016................................................                2
2017................................................                2
2018................................................                1.9
2019................................................                1.8
2020................................................                1.7
2021................................................                1.6
2022................................................                1.3
2023................................................                1.2
2024................................................                1.1
2025................................................                1
2026................................................                0.9
2027................................................                0.8
2028................................................                0.7
2029................................................                0.6
2030................................................                0.5
2031................................................                0.5
2032................................................                0.5
2033................................................                0.5
2034................................................                0.5
2035................................................                0.5
2036................................................                0.5
2037................................................                0.5
2038................................................                0.5
2039................................................                0.5.
------------------------------------------------------------------------

       (2) Avoided carbon dioxide emissions.--For the purpose of 
     determining the number of metric tons of carbon dioxide 
     avoided in paragraph (1)(B), the Administrator shall--
       (A) in the first year, count as avoided carbon dioxide 
     emissions the proportion of carbon dioxide emissions the 
     owner or operator certifies as the designed level of capture 
     for the project, subject to verification and adjustment; and
       (B) in each subsequent year, count the higher of--
       (i) the actual metric tons of carbon dioxide sequestered in 
     the preceding year; or
       (ii) the proportion of emissions the owner or operator 
     certifies as the result of a modification to the designed 
     capture level of the project, subject to verification and 
     adjustment.
       (b) Bonus Allowance Adjustment Ratio.--
       (1) In general.--Except as provided in paragraph (2), the 
     Administrator shall determine the bonus allowance adjustment 
     factor by dividing--
       (A) a carbon dioxide emission rate of 350 pounds per 
     megawatt-hour; by
       (B) the annual carbon dioxide emission rate, on a pounds 
     per megawatt-hour basis, that a qualifying project at the 
     electric generation unit achieved during a particular year.
       (2) Exceptions.--Notwithstanding paragraph (1), the bonus 
     allowance adjustment factor shall--
       (A) in the case of a project that qualifies under section 
     1012(c)(1), be equal to 1 during the first 4 years that 
     emission allowances are distributed to the project;
       (B) in the case of a project that qualifies under section 
     1012(c)(2), be equal to 1 during the first 4 years that 
     emission allowances are distributed to the project;
       (C) in the case of a project that qualifies under section 
     1012(c)(3), be equal to 1 during the first 8 years that 
     emission allowances are distributed to the project; and
       (D) not exceed 1 for any qualifying project.
       (c) Non-Electric Generating Units.--
       (1) In general.--For a qualifying project other than an 
     electric generating unit, the Administrator shall by 
     regulation reduce the bonus allowance rates described in 
     section 1013(a)(1)(C) so that the bonus allowance rate for 
     the projects does not exceed the incremental capital and 
     operating costs for carrying out sequestration of carbon 
     dioxide from the facility.
       (2) Limitation.--In distributing emission allowances under 
     this subtitle, the Administrator shall distribute not more 
     than 20 percent of the quantity of emission allowances in the 
     Bonus Allowance Account for nonelectric generation units 
     described in section 1012(c)(5).
       (d) Enhanced Oil Recovery.--For a carbon capture and 
     sequestration project sequestering in a geological formation 
     for purposes of enhanced oil recovery, the Administrator 
     shall by regulation reduce the bonus allowance rates set 
     forth in section 1013(a)(1)(C) to reflect the lower cost of 
     the projects when compared to sequestration into geological 
     formations solely for purposes of disposal.

     SEC. 1014. 10-YEAR LIMIT.

       A qualifying project may receive annual emission allowances 
     under this subtitle only for--
       (1) the first 10 years of operation; or
       (2) if the unit covered by the qualifying project began 
     operating before January 1, 2012, the period of calendar 
     years 2012 through 2021.

     SEC. 1015. EXHAUSTION OF BONUS ALLOWANCE ACCOUNT.

       If, at the beginning of a calendar year, the Administrator 
     determines that the number of emission allowances remaining 
     in the Bonus Allowance Account established under section 1011 
     will be insufficient to allow the distribution in that 
     calendar year, of the number of allowances that otherwise 
     would be distributed under section 1013 for the calendar 
     year, the Administrator shall, for the calendar year--
       (1) distribute the remaining bonus allowances only to 
     qualifying projects that were already qualifying projects 
     during the preceding calendar year;
       (2) distribute the remaining bonus allowances to those 
     qualifying projects on a pro rata basis; and
       (3) discontinue the program established under this subtitle 
     as of the date on which the Bonus Allowance Account is 
     projected to be fully used based on projects already in 
     operation.

                      Subtitle C--Legal Framework

     SEC. 1021. NATIONAL DRINKING WATER REGULATIONS.

       (a) In General.--Section 1421 of the Safe Drinking Water 
     Act (42 U.S.C.300h) is amended--
       (1) in subsection (b)(1), by striking ``subsection (d)(2)'' 
     and inserting ``subsection (e)(2)'';
       (2) by redesignating subsection (d) as subsection (e); and
       (3) by inserting after subsection (c) the following:
       ``(d) Carbon Dioxide.--
       ``(1) Regulations.--Not later than 1 year after the date of 
     enactment of the Lieberman-Warner Climate Security Act of 
     2008, the Administrator shall promulgate regulations 
     establishing standards for permitting commercial-scale 
     underground injection of carbon dioxide for the purpose of 
     geological sequestration to address climate change.
       ``(2) Inclusions.--Standards promulgated under paragraph 
     (1) shall include requirements--
       ``(A)(i) to monitor and control the long-term storage of 
     carbon dioxide;
       ``(ii) to avoid, to the maximum extent practicable, and 
     quantify any release of carbon dioxide into the atmosphere; 
     and
       ``(iii) to ensure protection of underground sources of 
     drinking water, human health, and the environment;
       ``(B) for financial responsibility (including financial 
     responsibility for well plugging, post-injection site care, 
     site closure, monitoring, corrective action, and remedial 
     care), as necessary, allowing for the use of 1 or more 
     financial instruments, including insurance, surety bond, 
     letter of credit, financial guarantee, or qualification as a 
     self-insurer; and
       ``(C) relating to long-term care and stewardship associated 
     with commercial-scale geological sequestration, including 
     financial responsibility, as necessary, consistent with the 
     degree and duration of risk associated with the geological 
     sequestration of carbon dioxide for purposes of subparagraph 
     (A).
       ``(3) Authorization.--The Administrator may specify the 
     policy or other contractual terms, conditions, or defenses 
     that are necessary to establish evidence of financial 
     responsibility for the purposes of this subsection.''.
       (b) Conforming Amendment.--Section 1447(a)(4) of the Safe 
     Drinking Water Act (42 U.S.C. 300j-6(a)(4)) is amended by 
     striking ``section 1421(d)(2)'' and inserting ``section 
     1421(e)(2)''.

     SEC. 1022. ASSESSMENT OF GEOLOGICAL STORAGE CAPACITY FOR 
                   CARBON DIOXIDE.

       (a) Definitions.--In this section:
       (1) Assessment.--The term ``assessment'' means the national 
     assessment of capacity for carbon dioxide completed under 
     subsection (f).
       (2) Capacity.--The term ``capacity'' means the portion of a 
     storage formation that can retain carbon dioxide in 
     accordance with the requirements (including physical, 
     geological, and economic requirements) established under the 
     methodology developed under subsection (b).
       (3) Engineered hazard.--The term ``engineered hazard'' 
     includes the location and completion history of any well that 
     could affect a storage formation or capacity.
       (4) Risk.--The term ``risk'' includes any risk posed by a 
     geomechanical, geochemical, hydrogeological, structural, or 
     engineered hazard.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Director of the United 
     States Geological Survey.
       (6) Storage formation.--The term ``storage formation'' 
     means a deep saline formation, unmineable coal seam, oil or 
     gas reservoir, or other geological formation that is capable 
     of accommodating a volume of industrial carbon dioxide.

[[Page S5085]]

       (b) Methodology.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall develop a 
     methodology for conducting an assessment under subsection 
     (f), taking into consideration--
       (1) the geographical extent of all potential storage 
     formations in all States;
       (2) the capacity of the potential storage formations;
       (3) the injectivity of the potential storage formations;
       (4) an estimate of potential volumes of oil and gas 
     recoverable by injection and storage of industrial carbon 
     dioxide in potential storage formations;
       (5) the risk associated with the potential storage 
     formations; and
       (6) the work performed to develop the Carbon Sequestration 
     Atlas of the United States and Canada completed by the 
     Department of Energy in April 2006.
       (c) Coordination.--
       (1) Federal coordination.--
       (A) Consultation.--The Secretary shall consult with the 
     Secretary of Energy and the Administrator regarding data 
     sharing and the format, development of methodology, and 
     content of the assessment to ensure the maximum usefulness 
     and success of the assessment.
       (B) Cooperation.--The Secretary of Energy and the 
     Administrator shall cooperate with the Secretary to ensure, 
     to the maximum extent practicable, the usefulness and success 
     of the assessment.
       (2) State coordination.--The Secretary shall consult with 
     State geological surveys and other relevant entities to 
     ensure, to the maximum extent practicable, the usefulness and 
     success of the assessment.
       (d) External Review and Publication.--On completion of the 
     methodology under subsection (b), the Secretary shall--
       (1) publish the methodology and solicit comments from the 
     public and the heads of affected Federal and State agencies;
       (2) establish a panel of individuals with expertise in the 
     matters described in paragraphs (1) through (5) of subsection 
     (b) comprised, as appropriate, of representatives of Federal 
     agencies, institutions of higher education, nongovernmental 
     organizations, State organizations, industry, and 
     international geosciences organizations to review the 
     methodology and comments received under paragraph (1); and
       (3) on completion of the review under paragraph (2), 
     publish in the Federal Register the revised final 
     methodology.
       (e) Periodic Updates.--The methodology developed under this 
     section shall be updated periodically (including not less 
     frequently than once every 5 years) to incorporate new data 
     as the data becomes available.
       (f) National Assessment.--
       (1) In general.--Not later than 2 years after the date of 
     publication of the methodology under subsection (d)(3), the 
     Secretary, in consultation with the Secretary of Energy and 
     State geological surveys, shall complete a national 
     assessment of the capacity for carbon dioxide storage in 
     accordance with the methodology.
       (2) Geological verification.--As part of the assessment, 
     the Secretary shall carry out a characterization program to 
     supplement the geological data relevant to determining 
     storage capacity in carbon dioxide in geological storage 
     formations, including--
       (A) well log data;
       (B) core data; and
       (C) fluid sample data.
       (3) Partnership with other drilling programs.--As part of 
     the drilling characterization under paragraph (2), the 
     Secretary shall enter into partnerships, as appropriate, with 
     other entities to collect and integrate data from other 
     drilling programs relevant to the storage of carbon dioxide 
     in geological formations.
       (4) Incorporation into natcarb.--
       (A) In general.--On completion of the assessment, the 
     Secretary shall incorporate the results of the assessment 
     using, to the maximum extent practicable--
       (i) the NatCarb database of the National Energy Technology 
     Laboratory of the Department of Energy; or
       (ii) a new database developed by the Secretary, as the 
     Secretary determines to be necessary.
       (B) Ranking.--The database shall include the data necessary 
     to rank potential storage sites--
       (i) for capacity and risk;
       (ii) across the United States;
       (iii) within each State;
       (iv) by formation; and
       (v) within each basin.
       (5) Report.--Not later than 180 days after the date on 
     which the assessment is completed, the Secretary shall submit 
     to the Committee on Energy and Natural Resources of the 
     Senate and the Committee on Science and Technology of the 
     House of Representatives a report describing the results of 
     the assessment.
       (6) Periodic updates.--The assessment shall be updated 
     periodically (including not less frequently than once every 5 
     years) as necessary to support public and private sector 
     decisionmaking, as determined by the Secretary.

     SEC. 1023. STUDY OF FEASIBILITY RELATING TO CONSTRUCTION AND 
                   OPERATION OF PIPELINES AND GEOLOGICAL CARBON 
                   DIOXIDE SEQUESTRATION ACTIVITIES.

       (a) In General.--The Secretary of Energy, in coordination 
     with the Administrator, the Chairman of the Federal Energy 
     Regulatory Commission, the Secretary of Transportation, and 
     the Secretary of the Interior, and in consultation with 
     representatives of industry, financial institutions, 
     investors, owners and operators of applicable facilities, 
     regulators, institutions of higher education, and other 
     stakeholders, shall conduct a study to assess the feasibility 
     of the construction of--
       (1) pipelines to be used for the transportation of carbon 
     dioxide for the purpose of sequestration or enhanced oil 
     recovery; and
       (2) geological carbon dioxide sequestration facilities.
       (b) Scope.--The study shall consider--
       (1) any barrier or potential barrier in existence as of the 
     date of enactment of this Act, including any technical, 
     siting, financing, or regulatory barrier, relating to--
       (A) the construction and operation of pipelines to be used 
     for the transportation of carbon dioxide for the purpose of 
     sequestration or enhanced oil recovery; or
       (B) the construction and operation of facilities for the 
     geological sequestration of carbon dioxide;
       (2) any market risk (including throughput risk) relating 
     to--
       (A) the construction and operation of pipelines to be used 
     for the transportation of carbon dioxide for the purpose of 
     sequestration or enhanced oil recovery; or
       (B) the construction and operation of facilities for the 
     geological sequestration of carbon dioxide;
       (3) any regulatory, financing, or siting option that, as 
     determined by the Secretary of Energy, would--
       (A) mitigate any market risk described in paragraph (2); or
       (B) help ensure the construction and operation of pipelines 
     dedicated to the transportation of carbon dioxide for the 
     purpose of sequestration or enhanced oil recovery;
       (4) the means by which to ensure the safe handling, 
     transportation, and sequestration of carbon dioxide;
       (5) any preventive measure to ensure the integrity of 
     pipelines to be used for the transportation of carbon dioxide 
     for the purpose of sequestration or enhanced oil recovery;
       (6) any other appropriate use, as determined by the 
     Secretary of Energy, in coordination with the Administrator, 
     the Chairman of the Federal Energy Regulatory Commission, the 
     Secretary of Transportation, and the Secretary of the 
     Interior;
       (7) the means by which to ensure that siting is carried out 
     in a manner that is socioeconomically just and 
     environmentally and ecologically sound; and
       (8) the findings of the task force established under 
     section 1024, in consultation with industry, financial 
     institutions, investors, owners and operators, regulators, 
     academic experts, and stakeholders.
       (c) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Energy shall submit 
     to Congress a report describing the results of the study.

     SEC. 1024. LIABILITIES FOR CLOSED GEOLOGICAL STORAGE SITES.

       (a) Establishment of Task Force.--As soon as practicable, 
     but not later than 180 days after the date of enactment of 
     this Act, the Administrator shall establish a task force, 
     with equal representation from the public, academic subject 
     matter experts, and industry, to conduct a study of the 
     statutory framework, environmental and safety considerations, 
     and financial implications of potential Federal assumption of 
     liabilities with respect to closed geological sites.
       (b) Charge of Task Force.--At a minimum, the task force 
     shall consider--
       (1) procedures for the certification and approval of 
     geological storage sites and projects, including siting, 
     monitoring, and closure standards;
       (2) existing statutory authority under the Safe Drinking 
     Water Act (42 U.S.C. 300f et seq.) and the Clean Air Act (42 
     U.S.C. 7401 et seq.) to address issues relating to long-term 
     financial responsibility and long-term liabilities; and
       (3) successorship of closed geological storage sites used 
     to sequester carbon dioxide, including possible transfer of 
     title and liabilities from the private sector to the public 
     sector and conditions that might be placed on such a 
     transfer, transfer of financial responsibility to the public 
     sector or within the private sector, and possible indemnity 
     from long-term liabilities.

                   TITLE XI--FUTURE OF TRANSPORTATION

           Subtitle A--Kick-Start for Clean Commercial Fleets

     SEC. 1101. PURPOSE.

       The purpose of this subtitle is to accelerate the 
     commercialization and diffusion of fuel-efficient medium- and 
     heavy-duty hybrid commercial trucks, buses, and vans in the 
     United States.

     SEC. 1102. ALLOCATION.

       Not later than 2 years after the date of enactment of this 
     Act, the Administrator shall allocate to the program 
     established under section 1103 0.5 percent of the aggregate 
     quantity of emission allowances established pursuant to 
     section 201(a) for calendar years 2012 through 2017.

     SEC. 1103. CLEAN MEDIUM- AND HEAVY-DUTY HYBRID FLEETS 
                   PROGRAM.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall--
       (1) review and revise, as necessary, regulations 
     promulgated under section 113; and
       (2) promulgate regulations for a program for distributing 
     emission allowances allocated pursuant to section 1102 to 
     entities in

[[Page S5086]]

     the United States as an immediate reward for purchase by the 
     entities of advanced medium- and heavy-duty hybrid commercial 
     vehicles, based on demonstrated increases in fuel efficiency.
       (b) Requirements.--The regulations promulgated pursuant to 
     subsection (a) shall require that--
       (1) only purchasers of commercial vehicles weighing at 
     least 8,500 pounds are eligible for receipt of emission 
     allowances under the program;
       (2) the purchasers of qualifying vehicles are provided 
     certainty of the magnitude and timeliness of delivery of the 
     reward at the time at which the purchasers purchase the 
     vehicles;
       (3) rewards increase commensurately with fuel efficiency of 
     qualifying vehicles;
       (4) qualifying vehicles shall be categorized into not fewer 
     than 3 classes of vehicle weight, in order to ensure--
       (A) adequate availability of rewards for different 
     categories of commercial vehicles; and
       (B) that the rewards for heavier, more expensive vehicles 
     are proportional to the rewards for lighter, less expensive 
     vehicles;
       (5) rewards decrease over time, in order to encourage early 
     purchases of hybrid vehicles; and
       (6) to the maximum extent practicable, all emission 
     allowances allocated to the program shall have been 
     distributed as rewards by not later than 5 years after the 
     date of enactment of this Act.

               Subtitle B--Advanced Vehicle Manufacturers

     SEC. 1111. CLIMATE CHANGE TRANSPORTATION ENERGY TECHNOLOGY 
                   FUND.

       There is established in the Treasury of the United States a 
     fund, to be known as the ``Climate Change Transportation 
     Energy Technology Fund'' (referred to in this subtitle as the 
     ``Fund'').

     SEC. 1112. AUCTIONS.

       (a) In General.--For each of calendar years 2012 through 
     2050, the Administrator shall, in accordance with subsection 
     (b), auction 1 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for the calendar year 
     in order to raise funds for deposit in the Fund.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.

     SEC. 1113. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 1112, immediately on receipt of 
     those proceeds, into the Fund.

     SEC. 1114. USE OF FUNDS.

       For each of calendar years 2012 through 2050, all funds 
     deposited into the Fund during the preceding year pursuant to 
     section 1113 shall be made available, without further 
     appropriation or fiscal year limitation, to the Climate 
     Change Technology Board established by section 431 for making 
     manufacturer facility conversion awards under section 1115.

     SEC. 1115. MANUFACTURER FACILITY CONVERSION PROGRAM.

       (a) In General.--The Climate Change Technology Board 
     established by section 431 shall use all amounts in the Fund 
     to provide facility funding awards under this section to 
     manufacturers to pay not more than 30 percent of the cost 
     of--
       (1) reequipping, expanding, or establishing a manufacturing 
     facility in the United States to produce--
       (A) qualifying advanced technology vehicles; or
       (B) qualifying components; and
       (2) engineering integration performed in the United States 
     of qualifying vehicles and qualifying components.
       (b) Period of Availability.--An award under subsection (a) 
     shall apply to--
       (1) facilities and equipment placed in service during the 
     period beginning on the date of enactment of this Act and 
     ending on December 31, 2029; and
       (2) engineering integration costs incurred after the date 
     of enactment of this Act.
       (c) CAFE Requirements.--The Climate Change Technology Board 
     shall not make an award under this section to an automobile 
     manufacturer or component supplier that, directly or through 
     a parent, subsidiary, or affiliated entity, is not in 
     compliance with each corporate average fuel economy standard 
     under section 32902 of title 49, United States Code, in 
     effect on the date of the award.
       (d) Additional Requirements.--
       (1) Definition of prospective recipient.--In this 
     subsection, the term ``prospective recipient'' means an 
     automobile manufacturer or component supplier (including any 
     parent, subsidiary, or affiliated entity) that seeks to 
     receive an award under this section.
       (2) Certification.--To be eligible to receive an award 
     under this section, a prospective recipient shall certify to 
     the Climate Change Technology Board that, for the 7-calendar 
     year period beginning on the date of receipt of the award, 
     the prospective recipient will maintain in the United States 
     a number of full-time or full-time-equivalent employees that 
     is--
       (A) equal to 90 percent of the monthly average number of 
     full-time or full-time-equivalent employees maintained by the 
     prospective recipient for the 12-month period ending on the 
     date of receipt of the award;
       (B) sufficient to ensure that the proportion that the 
     workforce of the prospective recipient in the United States 
     bears to the global workforce of the prospective recipient is 
     equal to or greater than the average monthly proportion that 
     the workforce of the prospective recipient in the United 
     States bears to the global workforce of the prospective 
     recipient for the 12-month period ending on the date of 
     receipt of the award; or
       (C) sufficient to ensure that any percentage decrease in 
     the hourly workforce of the prospective recipient in the 
     United States is not greater than the aggregate of the 
     percentage decrease in the market share of the prospective 
     recipient in the United States and the increase in the 
     productivity of the prospective recipient, calculated during 
     the period beginning on the date of receipt of the award and 
     ending on the date of certification under this paragraph.
       (3) Recertification.--Not later than 1 year after the date 
     of receipt of an award under this section, and annually 
     thereafter, a prospective recipient shall--
       (A) recertify to the Climate Change Technology Board that, 
     during the preceding calendar year, the prospective recipient 
     has achieved compliance with an applicable requirement 
     described in paragraph (2); and
       (B) provide to the Climate Change Technology Board 
     sufficient data for verification of the recertification.
       (4) Repayment.--A prospective recipient that fails to make 
     the recertification required by paragraph (3) shall pay to 
     the Climate Change Technology Board an amount equal to the 
     difference between--
       (A) the amount of the original award to the prospective 
     recipient; and
       (B) the product obtained by multiplying--
       (i) an amount equal to \1/7\ of that original amount; and
       (ii) the number of years during which the prospective 
     recipient--

       (I) received an award under this section; and
       (II) made the recertification required by paragraph (3).

       (e) Administration.--The terms and conditions established 
     for applicants under section 136(d)(2) of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17013(d)) 
     shall apply to prospective recipients under this section.

                     Subtitle C--Cellulosic Biofuel

     SEC. 1121. CELLULOSIC BIOFUEL PROGRAM.

       (a) Allocation.--
       (1) First period.--Not later than 330 days before the 
     beginning of each of calendar years 2012 and 2013, the 
     Administrator shall allocate to the program established under 
     subsection (b) 1 percent of the emission allowances 
     established pursuant to section 201(a) for that calendar 
     year.
       (2) Second period.--Not later than 330 days before the 
     beginning of each of calendar years 2014 through 2017, the 
     Administrator shall allocate to the program established under 
     subsection (b) 0.75 percent of the emission allowances 
     established pursuant to section 201(a) for that calendar 
     year.
       (3) Third period.--Not later than 330 days before the 
     beginning of each of calendar years 2018 through 2030, the 
     Administrator shall allocate to the program established under 
     subsection (b) 1 percent of the emission allowances 
     established pursuant to section 201(a) for that calendar 
     year.
       (b) Program.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations to establish a program for distributing emission 
     allowances allocated under subsection (a) to entities in the 
     United States as a reward for production in the United States 
     of fuel from cellulosic biomass grown in the United States.
       (2) Requirements.--The regulations promulgated pursuant to 
     paragraph (1) shall require that emission allowances shall be 
     distributed under the program--
       (A) among a variety of feedstocks and a variety of regions 
     of the United States;
       (B) on a competitive basis for projects that have produced 
     in the United States fuels that--
       (i) meet United States fuel and emissions specifications;
       (ii) help diversify domestic transportation energy 
     supplies;
       (iii) improve or maintain air, water, soil, and habitat 
     quality and protect scarce water supplies; and
       (iv) are cellulosic biofuel (as defined in section 
     211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1))); and
       (C) in a manner that provides priority to projects that 
     achieve--
       (i) low costs to consumers over the medium- and long-terms;
       (ii) demonstrably low lifecycle greenhouse gas emissions, 
     taking into account direct and indirect land-use changes;
       (iii) high long-term technological potential, taking into 
     consideration production volume, feedstock availability, and 
     process efficiency;
       (iv) low environmental impacts, taking into consideration 
     air, water, and habitat quality; and
       (v) fuels with the ability to serve multiple economic 
     segments of the transportation sector, including the aviation 
     and marine segments.

[[Page S5087]]

                  Subtitle D--Low-Carbon Fuel Standard

     SEC. 1131. FINDINGS.

       Congress finds that--
       (1) oil used for transportation contributes significantly 
     to air pollution, including greenhouse gases, water 
     pollution, and other adverse impacts on the environment; and
       (2) to reduce greenhouse gas emissions, the United States 
     should rely increasingly on advanced, clean, low-carbon fuels 
     for transportation.

     SEC. 1132. DEFINITIONS.

       Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)) is amended--
       (1) by redesignating subparagraphs (G) through (L) as 
     subparagraphs (J) through (O), respectively;
       (2) by inserting after subparagraph (F) the following:
       ``(G) Cultivated noxious plant.--The term `cultivated 
     noxious plant' means a plant that is included on--
       ``(i) the Federal noxious weed list maintained by the 
     Animal and Plant Health Inspection Service; or
       ``(ii) any comparable State list.
       ``(H) Fuel emission baseline.--The term `fuel emission 
     baseline' means the average lifecycle greenhouse gas 
     emissions per unit of energy of the aggregate of all 
     transportation fuels sold or introduced into commerce in 
     calendar year 2005, as determined by the Administrator under 
     paragraph (13).
       ``(I) Fuel provider.--The term `fuel provider' includes, as 
     the Administrator determines to be appropriate, any 
     individual or entity that produces, refines, blends, or 
     imports any transportation fuel in commerce in, or into, the 
     United States.''; and
       (3) by striking subparagraph (O) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(O) Transportation fuel.--The term `transportation fuel' 
     means fuel for use in motor vehicles, nonroad vehicles, 
     nonroad engines, or aircraft.''.

     SEC. 1133. ESTABLISHMENT.

       Section 211(o) of the Clean Air act (42 U.S.C. 7545(o)) is 
     amended by adding at the end the following:
       ``(13) Advanced clean fuel performance standard.--
       ``(A) Standard.--
       ``(i) In general.--Not later than January 1, 2010, the 
     Administrator shall, by regulation--

       ``(I) establish a methodology for use in determining the 
     lifecycle greenhouse gas emissions per unit of energy of all 
     transportation fuels in commerce for which the Administrator 
     has not already established such a methodology;
       ``(II) determine the fuel emission baseline; and
       ``(III) in accordance with clause (ii), establish a 
     requirement applicable to transportation fuel providers to 
     reduce, on an annual average basis, the average lifecycle 
     greenhouse gas emissions per unit of energy of the aggregate 
     quantity of transportation fuel produced, refined, blended, 
     or imported by the fuel provider to a level that is, to the 
     maximum extent practicable--

       ``(aa) by not later than calendar year 2011, at least equal 
     to or less than the fuel emission baseline;
       ``(bb) by not later than calendar year 2012, equivalent to 
     the difference between the fuel emission baseline and the 
     lifecycle greenhouse gas emissions per unit of energy reduced 
     by the volumetric renewable fuel requirements of paragraph 
     (2)(B);
       ``(cc) by not later than calendar year 2023, at least 5 
     percent less than the fuel emission baseline; and
       ``(dd) by not later than calendar year 2028, at least 10 
     percent less than the fuel emission baseline.
       ``(ii) Prevention of air quality deterioration.--

       ``(I) Study.--Not later than 18 months after the date of 
     enactment of this paragraph, the Administrator shall complete 
     a study to determine whether the greenhouse gas emission 
     reductions required under clause (i)(III) will adversely 
     impact air quality as a result of changes in vehicle and 
     engine emissions of air pollutants regulated under this Act.
       ``(II) Considerations.--The study shall include 
     consideration of--

       ``(aa) different blend levels, types of transportation 
     fuels, and available vehicle technologies; and
       ``(bb) appropriate national, regional, and local air 
     quality control measures.

       ``(III) Regulations.--Not later than 3 years after the date 
     of enactment of this paragraph, the Administrator shall--

       ``(aa) promulgate fuel regulations to implement appropriate 
     measures to mitigate, to the maximum extent practicable and 
     taking into consideration the results of the study conducted 
     under this clause, any adverse impacts on air quality as a 
     result of the greenhouse gas emission reductions required by 
     this subsection; or
       ``(bb) make a determination that no such measures are 
     necessary.
       ``(iii) Calendar year 2033 and thereafter.--For calendar 
     year 2033, and every 5 years thereafter, the Administrator, 
     in consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall revise the applicable performance 
     standard under clause (i)(III) to reduce, to the maximum 
     extent practicable, the average lifecycle greenhouse gas 
     emissions per unit of energy of the aggregate quantity of 
     transportation fuel sold or introduced into commerce in the 
     United States.
       ``(iv) Revision of regulations.--In accordance with the 
     purposes of the Lieberman-Warner Climate Security Act of 
     2008, the Administrator may, as appropriate, revise the 
     regulations promulgated under clause (i) as necessary to 
     reflect or respond to changes in the transportation fuel 
     market or other relevant circumstances.
       ``(v) Method of calculation.--In calculating the lifecycle 
     greenhouse gas emissions of hydrogen or electricity (when 
     used as a transportation fuel) under clause (i)(I), the 
     Administrator shall--

       ``(I) include emission resulting from the production of the 
     hydrogen or electricity; and
       ``(II) consider to be equivalent to the energy delivered by 
     1 gallon of ethanol the energy delivered by--

       ``(aa) 6.4 kilowatt-hours of electricity;
       ``(bb) 32 standard cubic feet of hydrogen; or
       ``(cc) 1.25 gallons of liquid hydrogen.
       ``(vi) Determination of lifecycle greenhouse gas 
     emissions.--In carrying out this subparagraph, the 
     Administrator shall use the best available scientific and 
     technical information to determine the lifecycle greenhouse 
     gas emissions per unit of energy of transportation fuels 
     derived from--

       ``(I) renewable biomass;
       ``(II) electricity, including the entire lifecycle of the 
     fuel;
       ``(III) 1 or more fossil fuels, including the entire 
     lifecycle of the fuels; and
       ``(IV) hydrogen, including the entire lifecycle of the 
     fuel.

       ``(vii) Equivalent emissions.--In carrying out this 
     subparagraph, the Administrator shall consider transportation 
     fuel derived from cultivated noxious plants, and 
     transportation fuel derived from biomass sources other than 
     renewable biomass, to have emissions equivalent to the 
     greater of--

       ``(I) the lifecycle greenhouse gas emissions; or
       ``(II) the fuel emission baseline.

       ``(B) Election to participate.--An electricity provider may 
     elect to participate in the program under this subsection if 
     the electricity provider provides and separately tracks 
     electricity for transportation through a meter that--
       ``(i) measures the electricity used for transportation 
     separately from electricity used for other purposes; and
       ``(ii) allows for load management and time-of-use rates.
       ``(C) Credits.--
       ``(i) In general.--The regulations promulgated to carry out 
     this paragraph shall permit fuel providers to generate 
     credits for achieving, during a calendar year, greater 
     reductions in lifecycle greenhouse gas emissions of the fuel 
     provided, blended, or imported by the fuel provider than are 
     required under subparagraph (A)(i)(III).
       ``(ii) Method of calculation.--The number of credits 
     received by a fuel provider under clause (i) for a calendar 
     year shall be the product obtained by multiplying--

       ``(I) the aggregate quantity of fuel produced, distributed, 
     or imported by the fuel provider during the calendar year; 
     and
       ``(II) the difference between--

       ``(aa) the lifecycle greenhouse gas emissions per unit of 
     energy of that quantity of fuel; and
       ``(bb) the maximum lifecycle greenhouse gas emissions per 
     unit of energy of that quantity of fuel permitted for the 
     calendar year under subparagraph (A)(i)(III).
       ``(D) Compliance.----
       ``(i) In general.--Each fuel provider subject to this 
     paragraph shall demonstrate compliance with this paragraph, 
     including, as necessary, through the use of credits banked or 
     purchased.
       ``(ii) No limitation on trading or banking.--There shall be 
     no limit on the ability of any fuel provider to trade or bank 
     credits pursuant to this subparagraph.
       ``(iii) Use of banked credits.--A fuel provider may use 
     banked credits under this subparagraph with no discount or 
     other adjustment to the credits.
       ``(iv) Inability to generate or purchase sufficient 
     credits.--A fuel provider that is unable to generate or 
     purchase sufficient credits to meet the requirements of 
     subparagraph (A)(i)(III) may carry the compliance deficit 
     forward, subject to the condition that the fuel provider, for 
     the calendar year following the year for which the deficit is 
     created--

       ``(I) achieves compliance with subparagraph (A)(i)(III); 
     and
       ``(II) generates or purchases additional credits to offset 
     the deficit from the preceding calendar year.

       ``(v) Types of credits.--To encourage innovation in 
     transportation fuels--

       ``(I) only credits created in the production of 
     transportation fuels may be used for the purpose of 
     compliance described in clause (i); and
       ``(II) credits created by or in other sectors, such as 
     manufacturing, may not be used for that purpose.

       ``(E) Impact on food production.--Not later than 18 months 
     after the date of enactment of this paragraph, the 
     Administrator shall evaluate and consider promulgating 
     regulations to address any significant impacts on access to, 
     and production of, food due to the sourcing and production of 
     fuels used to comply with this Act.
       ``(F) No effect on state authority.--Nothing in this 
     paragraph affects the authority of any State to establish, or 
     to maintain in effect, any transportation fuel standard that 
     reduces greenhouse gas emissions.''.

[[Page S5088]]

        TITLE XII--FEDERAL PROGRAM TO PROTECT NATURAL RESOURCES

                          Subtitle A--Auctions

     SEC. 1201. DEFINITIONS.

       In this subtitle:
       (1) Bureau of land management fund.--The term ``Bureau of 
     Land Management Fund'' means the Bureau of Land Management 
     Emergency Firefighting Fund established by section 1211(a).
       (2) Forest service fund.--The term ``Forest Service Fund'' 
     means the Forest Service Emergency Firefighting Fund 
     established by section 1212(a).
       (3) Wildlife adaptation fund.--The term ``Wildlife 
     Adaptation Fund'' means the National Wildlife Adaptation Fund 
     established by section 1231(a).

     SEC. 1202. AUCTIONS.

       (a) In General.--In accordance with subsections (b) and 
     (c), to raise funds for deposit in the Bureau of Land 
     Management Fund, the Forest Service Fund, and the Wildlife 
     Adaptation Fund, for each of calendar years 2012 through 
     2050, the Administrator shall--
       (1) auction a quantity of the emission allowances 
     established pursuant to section 201(a) for each calendar 
     year; and
       (2) immediately on receipt of the auction proceeds--
       (A) deposit in the Bureau of Land Management Fund the 
     amount of those proceeds that is sufficient to ensure that 
     the amount in the Bureau of Land Management Fund equals 
     $300,000,000;
       (B) deposit in the Forest Service Fund the amount of those 
     proceeds that is sufficient to ensure that the amount in the 
     Forest Service Fund equals $800,000,000; and
       (C) deposit all remaining proceeds from the auctions 
     conducted under this section in the Wildlife Adaptation Fund.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the actions in a manner to ensure that--
       (A) each auction takes place during the period beginning on 
     the date that is 35 days after January 1 of the calendar year 
     and ending on the date that is 60 before December 31 of the 
     calendar year; and
       (B) the interval between each auction is of equal duration.
       (c) Quantities of Emission Allowances Auctioned.--For each 
     calendar year of the period described in subsection (a), the 
     Administrator shall auction a quantity of emission allowances 
     in accordance with the applicable percentages described in 
     the following table:


----------------------------------------------------------------------------------------------------------------
                 Calendar Year                                  Percentage for auction for funds
----------------------------------------------------------------------------------------------------------------
2012..........................................  3
2013..........................................  2.5
2014..........................................  2.5
2015..........................................  2.5
2016..........................................  2.5
2017..........................................  2.5
2018..........................................  2.5
2019..........................................  2.5
2020..........................................  2.5
2021..........................................  2.5
2022..........................................  2.5
2023..........................................  3
2024..........................................  3
2025..........................................  4
2026..........................................  4
2027..........................................  4
2028..........................................  4
2029..........................................  4
2030..........................................  4
2031..........................................  4
2032..........................................  5
2033..........................................  5
2034..........................................  5
2035..........................................  5
2036..........................................  5
2037..........................................  5
2038..........................................  5
2039..........................................  5
2040..........................................  5
2041..........................................  5
2042..........................................  5
2043..........................................  5
2044..........................................  5
2045..........................................  5
2046..........................................  5
2047..........................................  5
2048..........................................  5
2049..........................................  5
2050..........................................  5.
----------------------------------------------------------------------------------------------------------------

                           Subtitle B--Funds

     SEC. 1211. BUREAU OF LAND MANAGEMENT EMERGENCY FIREFIGHTING 
                   FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Bureau of Land 
     Management Emergency Firefighting Fund'', consisting of such 
     amounts as are deposited in the Bureau of Land Management 
     Fund under section 1202(a)(2)(A).
       (b) Use and Availability of Funds.--Amounts deposited in 
     the Bureau of Land Management Fund under section 
     1202(a)(2)(A) shall be--
       (1) used to pay for wildland fire suppression activities, 
     the costs of which are in excess of amounts annually 
     appropriated to the Secretary of the Interior (referred to in 
     this section as the ``Secretary'') for normal, nonemergency 
     wildland fire suppression activities; and
       (2) made available without further appropriation or fiscal 
     year limitation.
       (c) Accounting and Reporting.--
       (1) Establishment of system.--In accordance with paragraph 
     (2), not later than 3 years after the date of enactment of 
     this Act, the Secretary shall establish an accounting and 
     reporting system for activities carried out under this 
     section.
       (2) Requirements of system.--
       (A) National fire plan.--To ensure that the accounting and 
     reporting system established by the Secretary under paragraph 
     (1) is compatible with each reporting procedure of the 
     National Fire Plan, the Secretary shall establish the 
     accounting and reporting system in accordance with the 
     National Fire Plan.
       (B) Monthly and annual reports.--The accounting and 
     reporting system under paragraph (1) shall include a 
     requirement that the Secretary submit to the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Natural Resources of the House of Representatives--
       (i) not later than the last day of each month, a report 
     that contains a description of each expenditure made from the 
     Bureau of Land Management Fund during the preceding month; 
     and
       (ii) not later than September 30 of each fiscal year, a 
     report that contains a description of each expenditure made 
     from the Bureau of Land Management Fund during the preceding 
     fiscal year.

     SEC. 1212. FOREST SERVICE EMERGENCY FIREFIGHTING FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Forest Service 
     Emergency Firefighting Fund'', consisting of such amounts as 
     are deposited in the Forest Service Fund under section 
     1202(a)(2)(B).
       (b) Use and Availability of Funds.--Amounts deposited in 
     the Forest Service Fund under section 1202(a)(2)(B) shall 
     be--
       (1) used to pay for wildland fire suppression activities, 
     the costs of which are in excess of amounts annually 
     appropriated to the Secretary of Agriculture (referred to in 
     this section as the ``Secretary'') for normal, nonemergency 
     wildland fire suppression activities; and
       (2) made available without further appropriation or fiscal 
     year limitation.
       (c) Accounting and Reporting.--
       (1) Establishment of system.--In accordance with paragraph 
     (2), not later than 3 years after the date of enactment of 
     this Act, the Secretary shall establish an accounting and 
     reporting system for activities carried out under this 
     section.
       (2) Requirements of system.--
       (A) National fire plan.--To ensure that the accounting and 
     reporting system established by the Secretary under paragraph 
     (1) is compatible with each reporting procedure of the 
     National Fire Plan, the Secretary shall establish the 
     accounting and reporting system in accordance with the 
     National Fire Plan.
       (B) Monthly and annual reports.--The accounting and 
     reporting system under paragraph (1) shall include a 
     requirement that the Secretary submit to the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Natural Resources of the House of Representatives--
       (i) not later than the last day of each month, a report 
     that contains a description of each expenditure made from the 
     Forest Service Fund during the preceding month; and
       (ii) not later than September 30 of each fiscal year, a 
     report that contains a description of each expenditure made 
     from the Forest Service Fund during the preceding fiscal 
     year.

           Subtitle C--National Wildlife Adaptation Strategy

     SEC. 1221. DEFINITIONS.

       In this subtitle:
       (1) Advisory board.--The term ``Advisory Board'' means the 
     Science Advisory Board established by the Secretary under 
     section 1223(a).
       (2) Great lake.--The term ``Great Lake'' means--
       (A) Lake Erie;
       (B) Lake Huron (including Lake Saint Clair);
       (C) Lake Michigan;
       (D) Lake Ontario;
       (E) Lake Superior; and
       (F) the connecting channels of those Lakes, including--
       (i) the Saint Marys River;
       (ii) the Saint Clair River;
       (iii) the Detroit River;
       (iv) the Niagara River; and
       (v) the Saint Lawrence River to the Canadian border.
       (3) National strategy.--The term ``national strategy'' 
     means the National Wildlife Adaptation Strategy developed by 
     the President under section 1222(a).
       (4) Science center.--The term ``Science Center'' means the 
     Climate Change and Natural Resource Science Center 
     established under section 1224(a).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 1222. NATIONAL STRATEGY.

       (a) In General.--Not later than 3 years after the date of 
     enactment of this Act, the President shall develop and 
     implement a national strategy to be known as the ``National 
     Wildlife Adaptation Strategy'' to assist fish and wildlife, 
     fish and wildlife habitat, plants, aquatic and terrestrial 
     ecosystems, and associated ecological processes--

[[Page S5089]]

       (1) to become more resilient; and
       (2) to adapt to the impacts of climate change and ocean 
     acidification.
       (b) Administration.--In establishing and revising the 
     national strategy, the President shall--
       (1) base the national strategy on the best available 
     science, as provided by the Advisory Board;
       (2) develop the national strategy in cooperation with--
       (A) State fish and wildlife agencies;
       (B) State coastal agencies;
       (C) State environmental agencies;
       (D) territories and possessions of the United States; and
       (E) Indian tribes;
       (3) coordinate with--
       (A) the Secretary;
       (B) the Secretary of Commerce;
       (C) the Secretary of Agriculture;
       (D) the Secretary of Defense;
       (E) the Administrator; and
       (F) the head of any other appropriate Federal agency, as 
     determined by the President;
       (4) consult with--
       (A) local governments;
       (B) conservation organizations;
       (C) scientists; and
       (D) any other interested stakeholder; and
       (5) provide public notice and opportunity for comment.
       (c) Contents.--The President shall include in the national 
     strategy, at a minimum, prioritized goals and measures and a 
     schedule for implementation--
       (1) to identify and monitor fish and wildlife, fish and 
     wildlife habitat, plants, aquatic and terrestrial ecosystems, 
     and associated ecological processes that--
       (A) are particularly likely to be adversely affected by 
     climate change and ocean acidification; and
       (B) have the greatest need for protection, restoration, and 
     conservation;
       (2) to identify and monitor coastal, estuarine, marine, 
     terrestrial, and freshwater habitats that are at the greatest 
     risk of being damaged by climate change and ocean 
     acidification;
       (3) to assist species in adapting to the impacts of climate 
     change and ocean acidification;
       (4) to protect, acquire, maintain, and restore fish and 
     wildlife habitat to build resilience to climate change and 
     ocean acidification;
       (5) to provide habitat linkages and corridors to facilitate 
     fish, wildlife, and plant movement in response to climate 
     change and ocean acidification;
       (6) to restore and protect ecological processes that 
     sustain fish, wildlife, and plant populations that are 
     vulnerable to climate change and ocean acidification;
       (7) to protect, maintain, and restore coastal, marine, and 
     aquatic ecosystems to ensure that the ecosystems are more 
     resilient and better able to withstand the additional 
     stresses associated with climate change, including changes 
     in--
       (A) hydrology;
       (B) relative sea level rise;
       (C) ocean acidification; and
       (D) water levels and temperatures of the Great Lakes;
       (8) to protect ocean and coastal species from the impacts 
     of climate change and ocean acidification;
       (9) to incorporate adaptation strategies and activities to 
     address relative sea level rise and changes in Great Lakes 
     water levels in coastal zone planning;
       (10) to protect, maintain, and restore ocean and coastal 
     habitats to build healthy and resilient ecosystems (including 
     through the purchase of aquatic and terrestrial ecosystems 
     and coastal and island land);
       (11) to protect, maintain, and restore floodplains to build 
     healthy and resilient ecosystems (including through the 
     purchase of land in floodplains);
       (12) to protect, maintain, and restore aquatic and 
     terrestrial ecosystems to ensure the long-term sustainability 
     of the ecosystems for human and ecosystem use;
       (13) to explore pollution prevention opportunities to 
     reduce or eliminate the environmental impacts caused by 
     climate change on aquatic and terrestrial ecosystems; and
       (14) to incorporate consideration of climate change and 
     ocean acidification, and to integrate adaptation strategies 
     and activities for fish and wildlife, fish and wildlife 
     habitat, plants, aquatic and terrestrial ecosystems, and 
     associated ecological processes, in the planning and 
     management of Federal land and water administered by the 
     Federal agencies that receive funding under subtitle D.
       (d) Coordination With Other Plans.--In developing the 
     national strategy, the President shall, to the maximum extent 
     practicable--
       (1) take into consideration research and information 
     contained in--
       (A) State comprehensive wildlife conservation plans;
       (B) the North American Waterfowl Management Plan;
       (C) the National Fish Habitat Action Plan;
       (D) coastal zone management plans;
       (E) reports published by the Pew Oceans Commission and the 
     United States Commission on Ocean Policy;
       (F) State or local integrated water resource management 
     plans;
       (G) watershed plans developed pursuant to section 208 or 
     319 of the Federal Water Pollution Control Act (33 U.S.C. 
     1288 and 1329);
       (H) the Great Lakes Regional Collaboration Strategy; and
       (I) other relevant plans; and
       (2) coordinate and integrate the goals and measures 
     identified in the national strategy with the goals and 
     measures identified in those plans.
       (e) Revisions.--Not later than 5 years after the date on 
     which the national strategy is developed, and not less 
     frequently than every 5 years thereafter, the President shall 
     review and revise the national strategy in accordance with 
     the procedures described in this section.

     SEC. 1223. SCIENCE ADVISORY BOARD.

       (a) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary shall establish and 
     appoint the members of an Advisory Board that is composed 
     of--
       (1) not fewer than 10, and not more than 20, members who--
       (A) are recommended by the President of the National 
     Academy of Sciences;
       (B) have expertise in fish, wildlife, plant, aquatic, and 
     coastal and marine biology, hydrology, ecology, climate 
     change, ocean acidification, and other relevant scientific 
     disciplines; and
       (C) represent a balanced membership between Federal, State, 
     local, and tribal representatives, universities, and 
     conservation organizations; and
       (2) each Director of the Science Center, each of whom shall 
     be an ex officio member of the Advisory Board.
       (b) Duties.--The Advisory Board shall--
       (1) advise the President, the Directors of the Science 
     Center, and relevant Federal agencies and departments on--
       (A) the best available science regarding the impacts of 
     climate change and ocean acidification on fish and wildlife, 
     habitat, plants, aquatic and terrestrial ecosystems, and 
     associated ecological processes; and
       (B) scientific strategies and mechanisms for adaptation;
       (2) identify and recommend priorities for ongoing research 
     needs regarding those issues; and
       (3) review the quality of the research programs carried out 
     by the Science Center.
       (c) Collaboration.--The Advisory Board shall collaborate 
     with any other climate change or ecosystem research entity of 
     any other Federal agency.
       (d) Public Availability.--The advice and recommendations of 
     the Advisory Board shall be made available to the public.
       (e) Nonapplicability of FACA.--The Advisory Board shall not 
     be subject to the Federal Advisory Committee Act (5 U.S.C. 
     App.).

     SEC. 1224. CLIMATE CHANGE AND NATURAL RESOURCE SCIENCE 
                   CENTER.

       (a) In General.--The Secretary shall establish a Climate 
     Change and Natural Resource Science Center within the 
     Department of the Interior.
       (b) Functions.--In operating the Science Center, the 
     Secretary, in coordination with the Secretaries of 
     Agriculture, Commerce, and Defense, and the Administrator, 
     and in consultation with State fish and wildlife management 
     agencies, State coastal management agencies, territories or 
     possessions of the United States, and Indian tribes, shall--
       (1) conduct scientific research on national issues relating 
     to the impacts of climate change on the respective authority 
     of each Federal agency over, and mechanisms of each Federal 
     agency for, adaptation, and avoidance and minimization of, 
     the impacts on fish, wildlife, and plants, the habitats of 
     fish, wildlife, and plants, and associated ecological 
     processes;
       (2) consult with and advise Federal land, water, and 
     natural resource management and regulatory agencies and 
     Federal fish and wildlife agencies on--
       (A) the impacts of climate change on fish, wildlife, and 
     plants, the habitats of fish, wildlife, and plants, and 
     associated ecological processes; and
       (B) mechanisms for addressing the impacts described in 
     subparagraph (A);
       (3) consult and, to the maximum extent practicable, 
     collaborate with State and local agencies, territories or 
     possessions of the United States, Indian tribes, 
     universities, and other public and private entities regarding 
     research, monitoring, and other efforts to address the 
     impacts of climate change on fish, wildlife, and plants, the 
     habitats of fish, wildlife, and plants, and associated 
     ecological processes; and
       (4) collaborate and, as appropriate, enter into contracts 
     with Federal and non-Federal climate change research entities 
     to ensure that the full array of ecosystem types are 
     appropriately addressed.

            Subtitle D--National Wildlife Adaptation Program

     SEC. 1231. NATIONAL WILDLIFE ADAPTATION FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``National 
     Wildlife Adaptation Fund'', consisting of such amounts as are 
     deposited in the Wildlife Adaptation Fund under section 
     1202(a)(2)(C).
       (b) Use and Availability of Funds.--Amounts deposited in 
     the Wildlife Adaptation Fund under section 1202(a)(2)(C) 
     shall be--
       (1) used to carry out activities (including research and 
     education activities) to assist fish and wildlife, fish and 
     wildlife habitat, plants, aquatic and terrestrial ecosystems, 
     and associated ecological processes in becoming more 
     resilient, adapting to, and surviving the impacts of, climate 
     change and ocean acidification (referred to in this subtitle 
     as ``adaptation activities'') pursuant to this subtitle; and

[[Page S5090]]

       (2) made available without further appropriation or fiscal 
     year limitation.
       (c) Consistency With National Strategy.--
       (1) In general.--Subject to paragraph (2), effective 
     beginning on the date on which the President establishes the 
     national strategy under section 1222, funds made available 
     under subsection (b) shall be used only for adaptation 
     activities that are consistent with the national strategy.
       (2) Initial period.--Until the date on which the President 
     establishes the national strategy, funds made available under 
     subsection (b) shall be used only for adaptation activities 
     that are consistent with a work-plan established by the 
     President.

     SEC. 1232. DEPARTMENT OF THE INTERIOR.

       Of the amounts made available annually under section 
     1231(b)--
       (1) 34 percent shall be allocated to the Secretary of the 
     Interior for use in funding--
       (A) adaptation activities carried out--
       (i) under endangered species, migratory bird, and other 
     fish and wildlife programs administered by the United States 
     Fish and Wildlife Service;
       (ii) on wildlife refuges and other public land under the 
     jurisdiction of the United States Fish and Wildlife Service, 
     the Bureau of Land Management, or the National Park Service;
       (iii) within Federal water managed by the Bureau of 
     Reclamation; or
       (iv) to address the requirements of Federal and State 
     natural resource agencies through coordination, 
     dissemination, and augmentation of research regarding the 
     impacts of climate change on fish, wildlife, and plants, the 
     habitats of fish, wildlife, and plants, and ecological 
     processes, and the mechanisms to adapt to, mitigate, or 
     prevent those impacts by the Science Center within the United 
     States Geological Survey--

       (I) in coordination with the Secretaries of Agriculture, 
     Commerce, and Defense, and the Administrator; and
       (II) in consultation with State fish and wildlife 
     management agencies, State environmental, coastal, and Great 
     Lakes management agencies, territories or possessions of the 
     United States, and Indian tribes;

       (B) the Advisory Board; and
       (C) the Science Center;
       (2) 10 percent shall be allocated to the Secretary of the 
     Interior for adaptation activities carried out under 
     cooperative grant programs, including--
       (A) the cooperative endangered species conservation fund 
     authorized under section 6(i) of the Endangered Species Act 
     of 1973 (16 U.S.C. 1535(i));
       (B) programs under the North American Wetlands Conservation 
     Act (16 U.S.C. 4401 et seq.);
       (C) the multinational species conservation fund established 
     under the heading ``multinational species conservation fund'' 
     of title I of the Department of the Interior and Related 
     Agencies Appropriations Act, 1999 (16 U.S.C. 4246);
       (D) the Neotropical Migratory Bird Conservation Fund 
     established by section 9(a) of the Neotropical Migratory Bird 
     Conservation Act (16 U.S.C. 6108(a));
       (E) the Coastal Program of the United States Fish and 
     Wildlife Service;
       (F) the National Fish Habitat Action Plan;
       (G) the Partners for Fish and Wildlife Program;
       (H) the Landowner Incentive Program;
       (I) the Wildlife Without Borders Program of the United 
     States Fish and Wildlife Service; and
       (J) the Park Flight Migratory Bird Program of the National 
     Park Service; and
       (3) 2 percent shall be allocated to the Secretary of the 
     Interior and subsequently made available to Indian tribes to 
     carry out adaptation activities through the tribal wildlife 
     grants program of the United States Fish and Wildlife 
     Service.

     SEC. 1233. FOREST SERVICE.

       Of the amounts made available annually under section 
     1231(b), 10 percent shall be allocated to the Secretary of 
     Agriculture for use in funding adaptation activities carried 
     out--
       (1) on National Forests and National Grasslands under the 
     jurisdiction of the Forest Service; or
       (2) pursuant to the cooperative Wings Across the Americas 
     Program.

     SEC. 1234. ENVIRONMENTAL PROTECTION AGENCY.

       Of the amounts made available annually under section 
     1231(b), 12 percent shall be allocated to the Administrator 
     for use in adaptation activities for restoring and 
     protecting--
       (1) large-scale freshwater aquatic ecosystems, including 
     the Everglades, the Great Lakes, Flathead Lake, the Missouri 
     River, the Mississippi River, the Colorado River, the 
     Sacramento-San Joaquin Rivers, the Ohio River, the Columbia-
     Snake River System, the Apalachicola, the Chattahoochee and 
     Flint River System, the Connecticut River, and the 
     Yellowstone River;
       (2) large-scale estuarine ecosystems, including the 
     Chesapeake Bay, Long Island Sound, Puget Sound, the 
     Mississippi River Delta, San Francisco Bay Delta, 
     Narragansett Bay, and Albemarle-Pamlico Sound; and
       (3) other freshwater, estuarine, coastal, and marine 
     ecosystems, watersheds, basins, and groundwater resources 
     identified as priorities by the Administrator (including 
     those identified in accordance with section 320 of the 
     Federal Water Pollution Control Act (33 U.S.C. 1330)), 
     working in cooperation with other Federal agencies, States, 
     local governments, scientists, and other conservation 
     partners.

     SEC. 1235. CORPS OF ENGINEERS.

       Of the amounts made available annually under section 
     1231(b), 15 percent shall be allocated to the Secretary of 
     the Army for use by the Corps of Engineers to carry out 
     adaptation activities for protecting and restoring--
       (1) large-scale freshwater aquatic ecosystems, including 
     the ecosystems described in section 1234(1);
       (2) large-scale estuarine ecosystems, including the 
     ecosystems described in section 1234(2);
       (3) other freshwater, estuarine, coastal and marine 
     ecosystems, watersheds, basins, and groundwater resources 
     identified as priorities by the Corps of Engineers, working 
     in cooperation with other Federal agencies, States, local 
     governments, scientists, and other conservation partners; and
       (4) habitats or ecosystems under programs such as--
       (A) the Estuary Restoration Act of 2000 (33 U.S.C. 2901 et 
     seq.);
       (B) project modifications in accordance with section 1135 
     of the Water Resources Development Act of 1986 (33 U.S.C. 
     2309a) for improvement of the environment; and
       (C) the program for aquatic restoration under section 206 
     of the Water Resources Development Act of 1996 (33 U.S.C. 
     2330).

     SEC. 1236. DEPARTMENT OF COMMERCE.

       Of the amounts made available annually under section 
     1231(b), 17 percent shall be allocated to the Secretary of 
     Commerce for use in funding adaptation activities to protect, 
     maintain, and restore coastal, estuarine, Great Lakes, and 
     marine resources, habitats, and ecosystems, including 
     activities carried out under--
       (1) the coastal and estuarine land conservation program;
       (2) the community-based restoration program;
       (3) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
     et seq.), subject to the condition that State coastal 
     agencies shall incorporate, and the Secretary of Commerce 
     shall approve, coastal zone management plan elements that 
     are--
       (A) consistent with the National Wildlife Adaptation 
     Strategy developed by the President under section 1222(a), as 
     part of a coastal zone management program established under 
     this Act; and
       (B) specifically designed to strengthen the ability of 
     coastal, estuarine, and marine resources, habitats, and 
     ecosystems to adapt to and withstand the impacts of--
       (i) global warming; and
       (ii) where practicable, ocean acidification;
       (4) the Open Rivers Initiative;
       (5) the Magnuson Fishery Conservation and Management Act 
     (16 U.S.C. 1801 et seq.);
       (6) the Marine Mammal Protection Act of 1972 (16 U.S.C. 
     1361 et seq.);
       (7) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.);
       (8) the Marine Protection, Research, and Sanctuaries Act of 
     1972 (33 U.S.C. 1401 et seq.); and
       (9) the Coral Reef Conservation Act of 2000 (16 U.S.C. 6401 
     et seq.).

     SEC. 1237. NATIONAL ACADEMY OF SCIENCES REPORT.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     offer to enter into an arrangement with the National Academy 
     of Sciences, under which the Academy shall establish a 
     panel--
       (1) to convene multiple regional scientific symposia to 
     examine the ecological impact of climate change on imperiled 
     species in each region of the United States; and
       (2) to examine and analyze the reports, data, documents, 
     and other information produced by the regional scientific 
     symposia.
       (b) Report.--
       (1) In general.--The National Academy of Sciences shall 
     prepare and submit to the Secretary of the Interior a report 
     that--
       (A) incorporates the information produced through the 
     symposia described in subsection (a)(1); and
       (B) includes each component described in paragraph (2).
       (2) Contents.--The report under paragraph (1) shall 
     include--
       (A) an identification and assessment of the impacts of 
     climate change and ocean acidification on imperiled species, 
     ecosystems, and waters under the jurisdiction of the United 
     States (including the possessions and territories of the 
     United States);
       (B) an identification and assessment of different 
     ecological scenarios that may result from different 
     intensities, rates, and other critical manifestations of 
     climate change;
       (C) recommendations for the responsibilities of the Federal 
     Government, State, local, and tribal agencies, and private 
     parties in assisting imperiled species in adapting to, and 
     surviving the impacts of, climate change (including a 
     recommended list of prioritized remediation actions by those 
     agencies and parties); and
       (D) other relevant ecological information.
       (3) Public availability.--The report shall be made 
     available to the public as soon as practicable after the date 
     on which the report is completed.
       (c) Use of Report by Heads of Certain Federal Agencies.--
     The Secretaries of Agriculture, Commerce, the Interior, and 
     Defense, and the Administrator, shall take into account each 
     recommendation contained in the report under subsection (b).

[[Page S5091]]

TITLE XIII--INTERNATIONAL PARTNERSHIPS TO REDUCE EMISSIONS AND ADAPT TO 
                             CLIMATE CHANGE

        Subtitle A--Promoting Fairness While Reducing Emissions

     SEC. 1301. DEFINITIONS.

       In this subtitle:
       (1) Baseline emission level.--
       (A) Covered goods.--With respect to a covered good of a 
     foreign country, the term ``baseline emission level'' means, 
     as determined by the Commission, the total annual greenhouse 
     gas emissions attributed to the category of the covered good 
     of the foreign country during calendar year 2005, based on 
     the best available information.
       (B) Countries.--With respect to the United States or a 
     foreign country, the term ``baseline emission level'' means, 
     as determined by the Commission, the total annual nationwide 
     greenhouse gas emissions attributed to the country during 
     calendar year 2005, based on the best available information.
       (2) Best available information.--The term ``best available 
     information'' means--
       (A) all relevant data that are available for a particular 
     period; and
       (B) to the extent necessary--
       (i) economic and engineering models;
       (ii) best available information on technology performance 
     levels; and
       (iii) any other useful measure or technique for estimating 
     the emissions from emissions activities.
       (3) Commission.--The term ``Commission'' means the 
     International Climate Change Commission established by 
     section 1304(a).
       (4) Comparable action.--
       (A) In general.--The term ``comparable action'' means any 
     greenhouse gas regulatory programs, requirements, and other 
     measures adopted by a foreign country that, in combination, 
     are comparable in effect to actions carried out by the United 
     States through Federal, State, and local measures to limit 
     greenhouse gas emissions, as determined by the Commission in 
     accordance with subparagraph (B).
       (B) Requirements.--For purposes of subparagraph (A), the 
     Commission shall make a determination on whether a foreign 
     country has taken comparable action for a particular calendar 
     year based on the best available information and in 
     accordance with the following requirements:
       (i) A foreign country shall be considered to have taken 
     comparable action if the Commission determines that the 
     percentage change in greenhouse gas emissions in the foreign 
     country during the relevant period is equal to or greater 
     than the percentage change in greenhouse emissions of the 
     United States during that period.
       (ii) In the case of a foreign country that is not 
     considered to have taken comparable action under clause (i), 
     the Commission shall take into consideration, in making a 
     determination on comparable action for that foreign country, 
     the extent to which, during the relevant period, the foreign 
     country has implemented, verified, and enforced each of the 
     following:

       (I) The deployment and use of state-of-the-art technologies 
     in industrial processes, equipment manufacturing facilities, 
     power generation and other energy facilities, and consumer 
     goods (such as automobiles and appliances), and 
     implementation of other techniques or actions, that have the 
     effect of limiting greenhouse gas emissions of the foreign 
     country during the relevant period.
       (II) Any regulatory programs, requirements, and other 
     measures that the foreign country has implemented to limit 
     greenhouse gas emissions during the relevant periods.

       (iii) For determinations under clause (i), the Commission 
     shall develop rules for taking into account net transfers to 
     and from the United States and the other foreign country of 
     greenhouse gas allowances and other emission credits.
       (iv) Any determination on comparable action made by the 
     Commission under this paragraph shall comply with applicable 
     international agreements.
       (5) Compliance year.--The term ``compliance year'' means 
     each calendar year for which the requirements of this title 
     apply to a category of covered goods of a covered foreign 
     country that is imported into the United States.
       (6) Covered foreign country.--The term ``covered foreign 
     country'' means a foreign country that is included on the 
     covered list prepared under section 1306(b)(3).
       (7) Covered good.--The term ``covered good'' means a good 
     that, as identified by the Administrator by regulation--
       (A) is a primary product or manufactured item for 
     consumption;
       (B) generates, in the course of the manufacture of the 
     good, a substantial quantity of direct greenhouse gas 
     emissions or indirect greenhouse gas emissions; and
       (C) is closely related to a good the cost of production of 
     which in the United States is affected by a requirement of 
     this Act.
       (8) Enter; entry.--The terms ``enter'' and ``entry'' mean 
     the point at which a covered good passes into, or is 
     withdrawn from a warehouse for consumption in, the customs 
     territory of the United States.
       (9) Foreign country.--The term ``foreign country'' means 
     any country or separate customs territory other than the 
     United States.
       (10) Indirect greenhouse gas emissions.--The term 
     ``indirect greenhouse gas emissions'' means greenhouse gas 
     emissions resulting from the generation of electricity 
     consumed in manufacturing a covered good.
       (11) International agreement.--The term ``international 
     agreement'' means any international agreement to which the 
     United States is a party, including the Marrakesh agreement 
     establishing the World Trade Organization, done at Marrakesh 
     on April 15, 1994.
       (12) International reserve allowance.--The term 
     ``international reserve allowance'' means an allowance 
     (denominated in units of metric tons of carbon dioxide 
     equivalent) that is--
       (A) purchased from a special reserve of allowances pursuant 
     to section 1306(a)(2); and
       (B) used for purposes of meeting the requirements of 
     section 1306.
       (13) Manufactured item for consumption.--The term 
     ``manufactured item for consumption'' means any good or 
     product--
       (A) that is not a primary product;
       (B) that generates, in the course of the manufacture, a 
     substantial quantity of direct greenhouse gas emissions or 
     indirect greenhouse gas emissions, including emissions 
     attributable to the inclusion of a primary product in the 
     manufactured item for consumption; and
       (C) for which the Commission, in consultation with the 
     Administrator, determines that the application of an 
     international reserve allowance requirement under section 
     1306 to the particular category of goods or products is 
     administratively feasible and necessary to achieve the 
     purposes of this subtitle.
       (14) Percentage change in greenhouse gas emissions.--The 
     term ``percentage change in greenhouse gas emissions'', with 
     respect to a country, means, as determined by the Commission, 
     the percentage by which greenhouse gas emissions, on a 
     nationwide basis, have decreased or increased (as the case 
     may be) as compared to the baseline emission level of the 
     country, which percentage for the country shall be equal to 
     the quotient obtained by dividing--
       (A) the quantity of the decrease or increase in the total 
     nationwide greenhouse gas emissions for the country, as 
     compared to the baseline emission level for the country; by
       (B) the baseline emission level for the country.
       (15) Primary product.--The term ``primary product'' means--
       (A) iron, steel, steel mill products (including pipe and 
     tube), aluminum, cement, glass (including flat, container, 
     and specialty glass and fiberglass), pulp, paper, chemicals, 
     or industrial ceramics; and
       (B) any other manufactured product that--
       (i) is sold in bulk for purposes of further manufacture or 
     inclusion in a finished product; and
       (ii) generates, in the course of the manufacture of the 
     product, direct greenhouse gas emissions or indirect 
     greenhouse gas emissions that are comparable (on an 
     emissions-per-output basis) to emissions generated in the 
     manufacture of products by covered entities in the industrial 
     sector.

     SEC. 1302. PURPOSES.

       The purposes of this subtitle are--
       (1) to promote a strong global effort to significantly 
     reduce greenhouse gas emissions;
       (2) to ensure, to the maximum extent practicable, that 
     greenhouse gas emissions occurring outside the United States 
     do not undermine the objectives of the United States in 
     addressing global climate change; and
       (3) to encourage effective international action to achieve 
     those objectives through--
       (A) agreements negotiated between the United States and 
     foreign countries; and
       (B) measures carried out by the United States that comply 
     with applicable international agreements.

     SEC. 1303. INTERNATIONAL NEGOTIATIONS.

       (a) Finding.--Congress finds that the purposes described in 
     section 1302 can be most effectively addressed and achieved 
     through agreements negotiated between the United States and 
     foreign countries.
       (b) Negotiating Objective.--
       (1) Statement of policy.--It is the policy of the United 
     States to work proactively under the United Nations Framework 
     Convention on Climate Change and, in other appropriate 
     forums, to establish binding agreements committing all major 
     greenhouse gas-emitting nations to contribute equitably to 
     the reduction of global greenhouse gas emissions.
       (2) Intent of congress regarding objective.--To the extent 
     that the agreements described in subsection (a) involve 
     measures that will affect international trade in any good or 
     service, it is the intent of Congress that--
       (A) the negotiating objective of the United States shall be 
     to focus multilateral and bilateral international agreements 
     on the reduction of greenhouse gas emissions to advance 
     achievement of the purposes described in section 1302; and
       (B) the United States should attempt to achieve that 
     objective through the negotiation of international agreements 
     that--
       (i) with respect to foreign countries that are not taking 
     comparable action, promote the adoption of regulatory 
     programs, requirements, and other measures that are 
     comparable in effect to the actions carried out by the United 
     States to limit greenhouse gas emissions on a nationwide 
     basis; and
       (ii) with respect to foreign countries that are taking 
     comparable action, promote the adoption of requirements 
     similar in effect to the requirements of this subtitle to 
     advance the achievement of the purposes described in section 
     1302.

[[Page S5092]]

       (c) Notification to Foreign Countries.--As soon as 
     practicable after the date of enactment of this Act, the 
     President shall provide to each applicable foreign country a 
     notification of the negotiating objective of United States 
     described in subsection (b), including--
       (1) a request that the foreign country take comparable 
     action to limit the greenhouse gas emissions of the foreign 
     country, unless that foreign country would otherwise be 
     excluded under clause (ii) or (iii) of section 1306(b)(2)(A); 
     and
       (2) an estimate of the percentage change in greenhouse gas 
     emissions that the United States expects to achieve annually 
     through Federal, State, and local measures during the 10-year 
     period beginning on January 1, 2012.
       (d) Report to Congress.--Not later than 2 years after the 
     date of enactment of this Act, and every 3 years thereafter, 
     the President shall submit to Congress a report describing 
     the progress made by the United States in achieving the 
     negotiating objective described in subsection (b).

     SEC. 1304. INTERNATIONAL CLIMATE CHANGE COMMISSION.

       (a) Establishment.--There is established a commission, to 
     be known as the ``International Climate Change Commission''.
       (b) Organization.--
       (1) Membership.--
       (A) In general.--The Commission shall be composed of 6 
     commissioners to be appointed by the President, by and with 
     the advice and consent of the Senate.
       (B) Requirements.--Each commissioner shall--
       (i) be a citizen of the United States; and
       (ii) have the required qualifications for developing 
     knowledge and expertise relating to international climate 
     change matters, as the President determines to be necessary 
     for performing the duties of the Commission under this 
     subtitle.
       (2) Appointment of commissioners.--
       (A) In general.--Not later than 90 days after the date of 
     enactment of this Act, the President shall appoint the 
     commissioners to the Commission in accordance with this 
     subsection.
       (B) Failure to appoint.--
       (i) In general.--If the President fails to appoint 1 or 
     more commissioners by the deadline described in subparagraph 
     (A), the International Trade Commission shall appoint the 
     remaining commissioners by not later than 180 days after the 
     date of enactment of this Act.
       (ii) Termination of authority.--On appointment of a 
     commissioner by the International Trade Commission under 
     clause (i), the authority of the President to appoint 
     commissioners under this subsection shall terminate.
       (3) Political affiliation.--
       (A) In general.--Not more than 3 commissioners serving at 
     any time shall be affiliated with the same political party.
       (B) Requirement.--In appointing commissioners to the 
     Commission, the President or the International Trade 
     Commission, as applicable, shall alternately appoint 
     commissioners from each political party, to the maximum 
     extent practicable.
       (4) Term of commissioners; reappointment.--
       (A) In general.--The term of a commissioner shall be 12 
     years, except that the commissioners first appointed under 
     paragraph (2) shall be appointed to the Commission in a 
     manner that ensures that--
       (i) the term of not more than 1 commissioner shall expire 
     during any 2-year period; and
       (ii) no commissioner serves a term of more than 12 years.
       (B) Service until new appointment.--The term of a 
     commissioner shall continue after the expiration of the term 
     of the commissioner until the date on which a replacement is 
     appointed by the President and confirmed by the Senate.
       (C) Vacancy.--Any commissioner appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     predecessor was appointed shall be appointed for the 
     remainder of the term.
       (D) Reappointment.--An individual who has served as a 
     commissioner for a term of more than 7 years shall not be 
     eligible for reappointment.
       (5) Chairperson and vice-chairperson.--
       (A) Designation.--
       (i) In general.--The President shall designate a 
     Chairperson and Vice Chairperson of the Commission from the 
     commissioners that are eligible for designation under 
     subparagraph (C).
       (ii) Failure to designate.--If the President fails to 
     designate a Chairperson under clause (i), the commissioner 
     with the longest period of continuous service on the 
     Commission shall serve as Chairperson.
       (B) Term of service.--The Chairperson and Vice-Chairperson 
     shall each serve for a term of 4 years.
       (C) Eligibility requirements.--
       (i) Chairperson.--The President may designate as 
     Chairperson of the Commission any commissioner who--

       (I) is not affiliated with the political party with which 
     the Chairperson of the Commission for the immediately 
     preceding year was affiliated; and
       (II) except in the case of the first commissioners 
     appointed to the Commission, has served on the Commission for 
     not less than 1 year.

       (ii) Vice-chairperson.--The President may designate as the 
     Vice Chairperson of the Commission any commissioner who is 
     not affiliated with the political party with which the 
     Chairperson is affiliated.
       (6) Quorum.--A majority of commissioners shall constitute a 
     quorum.
       (7) Voting.--
       (A) Requirement.--The Commission shall not carry out any 
     duty or power of the Commission unless--
       (i) a quorum is present at the relevant public meeting of 
     the Commission; and
       (ii) a majority of commissioners comprising the quorum, and 
     any commissioner voting by proxy, votes to carry out the duty 
     or function.
       (B) Equally divided votes.--With respect to a determination 
     of the Commission regarding whether a foreign country has 
     taken comparable action under section 1305, if the votes of 
     the commissioners are equally divided, the foreign country 
     shall be considered not to have taken comparable action.
       (c) Duties.--The Commission shall--
       (1) determine whether foreign countries are taking 
     comparable action under section 1305;
       (2) establish foreign country lists under section 1306(b);
       (3) classify categories of goods and products as 
     manufactured items for consumption in accordance with the 
     requirements of section 1301(13);
       (4) determine the economic adjustment ratio that applies to 
     covered goods of covered foreign countries under section 
     1306(d)(4);
       (5) adjust the international reserve allowance requirements 
     pursuant to section 1307; and
       (6) carry out such other activities as the Commission 
     determines to be appropriate to implement this subtitle.
       (d) Powers.--
       (1) Penalty for noncompliance.--The Commission may impose 
     an excess emissions penalty on a United States importer of 
     covered goods if that importer fails to submit the required 
     number of international reserve allowances, as specified in 
     section 1306, in an amount equal to the excess emissions 
     penalty that an owner or operator of a covered entity would 
     be required to submit for noncompliance under section 203.
       (2) Prohibition on importers.--The Commission may prohibit 
     a United States importer from entering covered goods for a 
     period not to exceed 5 years, if the importer--
       (A) fails to pay a penalty for noncompliance imposed under 
     paragraph (1); or
       (B) submits a written declaration under section 1306(c) 
     that provides false or misleading information for the purpose 
     of circumventing the international reserve requirements of 
     this subtitle.
       (3) Delegation to bice.--
       (A) In general.--The Commission, as appropriate, may 
     delegate to the Bureau of Immigration and Customs Enforcement 
     any power of the Commission under this subsection.
       (B) Enforcement.--On delegation by the Commission of a 
     power under subparagraph (A), the Bureau of Immigration and 
     Customs Enforcement shall carry out the power in accordance 
     with such procedures and requirements as the Commission may 
     establish.

     SEC. 1305. DETERMINATIONS ON COMPARABLE ACTION.

       (a) In General.--Not later than July 1, 2013, and annually 
     thereafter, the Commission shall determine whether, and the 
     extent to which, each foreign country that is not exempted 
     under subsection (b) has taken comparable action to limit the 
     greenhouse gas emissions of the foreign country, based on 
     best available information and a comparison between actions 
     that--
       (1) the foreign country carried out during the calendar 
     year immediately preceding the calendar year in which the 
     Commission is making a determination under this subsection; 
     and
       (2) the United States carried out during the calendar year 
     immediately preceding the calendar year referred to in 
     paragraph (1).
       (b) Exemption.--The Commission shall exempt from a 
     determination under subsection (a) for a calendar year any 
     foreign country that is placed on the excluded list pursuant 
     to clause (ii) or (iii) of section 1306(b)(2)(A) for that 
     calendar year.
       (c) Reports.--The Commission shall, as expeditiously as 
     practicable--
       (1) submit to the President and Congress an annual report 
     describing the determinations of the Commission under 
     subsection (a) for the most recent calendar year; and
       (2) publish a description of the determinations in the 
     Federal Register.

     SEC. 1306. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.

       (a) Establishment.--
       (1) In general.--The Administrator shall establish a 
     program under which the Administrator shall offer for sale to 
     United States importers international reserve allowances in 
     accordance with this subsection.
       (2) Source.--International reserve allowances under 
     paragraph (1) shall be issued from a special reserve of 
     allowances that is separate from, and established in addition 
     to, the quantity of allowances established pursuant to 
     section 201(a).
       (3) Date of sale.--A United States importer shall be able 
     to purchase international reserve allowances under this 
     subsection by not later than the earliest date on which the 
     Administrator distributes allowances under any of titles V 
     through XI.
       (4) Price.--
       (A) In general.--The Administrator shall establish, by 
     regulation, a methodology for

[[Page S5093]]

     determining the daily price of international reserve 
     allowances for sale under paragraph (1).
       (B) Requirement.--The methodology under subparagraph (A) 
     shall require the Administrator--
       (i) not later than the date on which importers may first 
     purchase international allowances under paragraph (3), and 
     annually thereafter, to identify 3 leading publicly reported 
     daily price indices for the sale of emission allowances 
     established pursuant to section 201(a); and
       (ii) for each day on which international reserve allowances 
     are offered for sale under this subsection, to establish the 
     price of the allowances in an amount equal to the arithmetic 
     mean of the market clearing price for an allowance for the 
     preceding day pursuant to section 201(a) on the indices 
     identified under clause (i).
       (5) Serial number.--The Administrator shall assign a unique 
     serial number to each international reserve allowance issued 
     under this subsection.
       (6) Trading system.--The Administrator may establish, by 
     regulation, a system for the sale, exchange, purchase, 
     transfer, and banking of international reserve allowances.
       (7) Covered entities.--International reserve allowances may 
     not be submitted by covered entities to comply with the 
     allowance submission requirements of section 202.
       (8) Proceeds.--Subject to appropriation, all proceeds from 
     the sale of international reserve allowances under this 
     subsection shall be allocated to carry out a program that the 
     Administrator, in coordination with the Secretary of State, 
     shall establish to mitigate negative impacts of climate 
     change on disadvantaged communities in foreign countries.
       (b) Foreign Country Lists.--
       (1) In general.--Not later than January 1 of the third 
     calendar year for which emission allowances are required to 
     be submitted under section 202, and annually thereafter, the 
     Commission shall develop and publish in the Federal Register 
     2 lists of foreign countries, in accordance with this 
     subsection.
       (2) Excluded list.--
       (A) In general.--The Commission shall identify and publish 
     in a list, to be known as the ``excluded list'' the name of--
       (i) each foreign country determined by the Commission under 
     section 1305(a) to have taken action comparable to that taken 
     by the United States to limit the greenhouse gas emissions of 
     the foreign country;
       (ii) each foreign country identified by the United Nations 
     as among the least-developed developing countries; and
       (iii) each foreign country the share of total global 
     greenhouse gas emissions of which is below the de minimis 
     percentage described in subparagraph (B).
       (B) De minimis percentage.--
       (i) In general.--The de minimis percentage referred to in 
     subparagraph (A)(iii) shall be a percentage of total global 
     greenhouse gas emissions of not more than 0.5, as determined 
     by the Commission, for the most recent calendar year for 
     which emissions and other relevant data are available.
       (ii) Requirement.--The Commission shall place a foreign 
     country on the excluded list under subparagraph (A)(iii) only 
     if the de minimis percentage is not exceeded in 2 distinct 
     determinations of the Commission--

       (I) 1 of which reflects the annual average deforestation 
     rate during a representative period for the United States and 
     each foreign country; and
       (II) 1 of which does not reflect that annual average 
     deforestation rate.

       (3) Covered list.--
       (A) In general.--The Commission shall identify and publish 
     in a list, to be known as the ``covered list'', the name of 
     each foreign country the covered goods of which are subject 
     to the requirements of this section.
       (B) Requirement.--The covered list shall include each 
     foreign country that is not included on the excluded list 
     under paragraph (2).
       (c) Written Declarations.--
       (1) In general.--Effective beginning January 1, 2014, a 
     United States importer of any covered good shall, as a 
     condition of entry of the covered good into the United 
     States, submit to the Administrator and the Bureau of 
     Immigration and Customs Enforcement a written declaration 
     with respect to the entry of such good, including a 
     compliance statement, supporting documentation, and deposit 
     in accordance with this subsection.
       (2) Compliance statement.--A written declaration under 
     paragraph (1) shall include a statement certifying that the 
     applicable covered good is--
       (A) subject to the international reserve allowance 
     requirements of this section and accompanied by the 
     appropriate supporting documentation and deposit, as required 
     under paragraph (3); or
       (B) exempted from the international reserve allowance 
     requirements of this section and accompanied by a 
     certification that the good was not manufactured or processed 
     in any foreign country that is on the covered list under 
     subsection (b)(3).
       (3) Documentation and deposit.--If an importer cannot 
     certify that a covered good is exempted under paragraph 
     (2)(B), the written declaration for the covered good shall 
     include--
       (A) an identification of each foreign country in which the 
     covered good was manufactured or processed;
       (B) a brief description of the extent to which the covered 
     good was manufactured or processed in each foreign country 
     identified under subparagraph (A);
       (C) an estimate of the number of international reserve 
     allowances that are required for entry of the covered good 
     into the United States under subsection (d); and
       (D) at the election of the importer, the deposit of --
       (i) international reserve allowances in a quantity equal to 
     the estimated number required for entry under subparagraph 
     (C); or
       (ii) a bond, other security, or cash in an amount 
     sufficient to cover the purchase of the estimated number of 
     international reserve allowances under subparagraph (C).
       (4) Final assessment.--
       (A) In general.--Not later than 180 days after the date of 
     submission of the written declaration and entry of a covered 
     good under paragraph (1), the Administrator shall make a 
     final assessment of the international reserve allowance 
     requirement for the covered good under this section.
       (B) Requirement.--A final assessment under subparagraph (A) 
     with respect to a covered good shall specify--
       (i) the total number of international reserve allowances 
     that are required for entry of the covered good; and
       (ii) the difference between--

       (I) the amount of the deposit under paragraph (3)(D); and
       (II) the final assessment.

       (C) Reconciliation.--
       (i) Allowance deposit.--

       (I) In general.--The Bureau of Immigration and Customs 
     Enforcement shall--

       (aa) promptly reconcile the final assessment under 
     subparagraph (A) with the quantity of international reserve 
     allowances deposited under paragraph (3)(D)(i); and
       (bb) provide a notification of the reconciliation to the 
     Administrator and each affected importer.

       (II) Excess allowances.--If the quantity of international 
     reserve allowances deposited under paragraph (3)(D)(i) exceed 
     the quantity described in the final assessment, the Bureau of 
     Immigration and Customs Enforcement shall refund the excess 
     quantity of allowances.
       (III) Insufficient allowances.--If the quantity of 
     international reserve allowances described in the final 
     assessment exceeds the quantity of allowances deposited under 
     paragraph (3)(D)(i), the applicable importer shall submit to 
     the Administrator international reserve allowances sufficient 
     to satisfy the final assessment by not later than 14 days 
     after the date on which the notice under subclause (I)(bb) is 
     provided.

       (ii) Bond, security, or cash deposit.--

       (I) In general.--If an importer has submitted a bond, 
     security, or cash deposit under paragraph (3)(D)(ii), the 
     Bureau of Immigration and Customs Enforcement shall use the 
     deposit to purchase a sufficient number of international 
     reserve allowances, as determined in the final assessment 
     under subparagraph (A).
       (II) Insufficient deposit.--To the extent that the amount 
     of the deposit fails to cover the purchase of sufficient 
     international reserve allowances under subclause (I), the 
     importer shall submit such additional allowances as are 
     necessary to cover the shortage.
       (III) Excess deposit.--To the extent that the amount of the 
     deposit exceeds the price of international reserve allowances 
     required under the final assessment, the Bureau of 
     Immigration and Customs Enforcement shall refund to the 
     importer the unused portion of the deposit.

       (5) Inclusion.--A written declaration required under this 
     subsection shall include the unique serial number of each 
     emission allowance associated with the entry of the 
     applicable covered good.
       (6) Failure to declare.--A covered good that is not 
     accompanied by a written declaration that meets the 
     requirements of this subsection shall not be permitted to 
     enter the United States.
       (7) Corrected declaration.--
       (A) In general.--If, after making a declaration required 
     under this subsection, an importer has reason to believe that 
     the declaration contains information that is not correct, the 
     importer shall provide a corrected declaration by not later 
     than 30 days after the date of discovery of the error, in 
     accordance with subparagraph (B).
       (B) Method.--A corrected declaration under subparagraph (A) 
     shall be in the form of a letter or other written statement 
     to the Administrator and the office of the Bureau of 
     Immigration and Customs Enforcement to which the original 
     declaration was submitted.
       (d) Quantity of Allowances Required.--
       (1) Methodology.--
       (A) In general.--The Administrator shall establish, by 
     regulation, a method for calculating the required number of 
     international reserve allowances that a United States 
     importer is required to submit, together with a written 
     declaration under subsection (c), for each category of 
     covered goods of each covered foreign country.
       (B) Requirements.--The method shall--
       (i) apply to covered goods that are manufactured and 
     processed entirely in a single covered foreign country; and
       (ii) require submission for a compliance year of the 
     quantity of international reserve allowances described in 
     paragraph (2) for calculating the international reserve 
     allowance requirement on a per-unit basis for each category 
     of covered goods that are entered into the United States from 
     that covered foreign country during each compliance year.

[[Page S5094]]

       (2) General formula.--The quantity of international reserve 
     allowances required to be submitted for a compliance year 
     referred to in paragraph (1) shall be the product obtained by 
     multiplying--
       (A) the national greenhouse gas intensity rate for each 
     category of covered goods of each covered foreign country for 
     the compliance year, as determined by the Administrator under 
     paragraph (3);
       (B) the allowance adjustment factor for the industry sector 
     of the covered foreign country that manufactured the covered 
     goods entered into the United States, as determined by the 
     Administrator under paragraph (4); and
       (C) the economic adjustment ratio for the covered foreign 
     country, as determined by the Commission under paragraph (5).
       (3) National greenhouse gas intensity rate.--The national 
     greenhouse gas intensity rate for a covered foreign country 
     under paragraph (2)(A), on a per-unit basis, shall be the 
     quotient obtained by dividing--
       (A) the total quantity of direct greenhouse gas emissions 
     and indirect greenhouse gas emissions that are attributable 
     to a category of covered goods of a covered foreign country 
     during the most recent calendar year (as adjusted to exclude 
     those emissions that would not be subject to the allowance 
     submission requirements of section 202 for the category of 
     covered goods if manufactured in the United States); by
       (B) total number of units of the covered good that are 
     produced in the covered foreign country during that calendar 
     year.
       (4) Allowance adjustment factor.--
       (A) General formula.--The allowance adjustment factor for a 
     covered foreign country under paragraph (2)(B) shall be equal 
     to 1 minus the ratio that--
       (i) the number of allowances, as determined by the 
     Administrator under subparagraph (B), that an industry sector 
     of the covered foreign country would have received at no cost 
     if the allowances were allocated in the same manner in which 
     allowances are allocated at no cost under titles V through XI 
     to that industry sector of the United States; bears to
       (ii) the total quantity of direct greenhouse gas emissions 
     and indirect greenhouse gas emissions that are attributable 
     to a category of covered goods of a covered foreign country 
     during a particular compliance year.
       (B) Allowances allocated at no cost.--For purposes of 
     subparagraph (A)(i), the number of allowances that would have 
     been allocated at no cost to an industry sector of a covered 
     foreign country shall be equal to the product obtained by 
     multiplying--
       (i) the baseline emission level that the Commission has 
     attributed to a category of covered goods of the covered 
     foreign country; and
       (ii) the ratio that--

       (I) the quantity of allowances that are allocated at no 
     cost under titles V through XI to entities in the industry 
     sector that manufactures the covered goods for the compliance 
     year during which the covered goods were entered into the 
     United States; bears to
       (II) the total quantity of direct greenhouse gas emissions 
     and indirect greenhouse gas emissions of that sector during 
     the same compliance year.

       (5) Economic adjustment ratio.--The economic adjustment 
     ratio for a covered foreign country under paragraph (2)(C) 
     shall be 1, except in any case in which the Commission 
     determines to decrease the ratio in order to account for the 
     extent to which, during the relevant period, the foreign 
     country has implemented, verified, and enforced each of the 
     following:
       (A) The deployment and use of state-of-the-art technologies 
     in industrial processes, equipment manufacturing facilities, 
     power generation and other energy facilities, consumer goods 
     (such as automobiles and appliances) and other techniques or 
     actions that limit the greenhouse gas emissions of the 
     covered foreign country during the relevant period.
       (B) Any regulatory programs, requirements, and other 
     measures that the foreign country has implemented to limit 
     greenhouse gas emissions during the relevant period.
       (6) Annual calculation.--The Administrator shall--
       (A) calculate the international reserve allowance 
     requirements for each compliance year based on the best 
     available information; and
       (B) annually revise the applicable international reserve 
     allowance requirements to reflect changes in the variables of 
     the formulas described in this subsection.
       (7) Publication.--Not later than 90 days before the 
     beginning of each compliance year, the Administrator shall 
     publish in the Federal Register a schedule describing the 
     required number of international reserve allowances for each 
     category of imported covered goods of each covered foreign 
     country, as calculated under this subsection.
       (8) Covered goods from multiple countries.--
       (A) In general.--The Administrator shall establish, by 
     regulation, procedures for determining the number of the 
     international reserve allowances that a United States 
     importer is required to submit under this section for a 
     category of covered goods that are--
       (i) primary products; and
       (ii) manufactured or processed in more than 1 foreign 
     country.
       (B) Requirements.--
       (i) In general.--Except as provided in clause (ii), the 
     procedures established under subparagraph (A) shall require 
     an importer--

       (I) to determine, for each covered foreign country listed 
     in the written declaration of the importer under subsection 
     (c)(2)(B), the number of international reserve allowances 
     required under this subsection for the category of covered 
     goods manufactured and processed entirely in that covered 
     foreign country for the compliance year; and
       (II) of the international reserve allowance requirements 
     applicable to each relevant covered foreign country, to apply 
     the requirement that requires the highest number of 
     international reserve allowances for the category of covered 
     goods.

       (C) Exception.--
       (i) In general.--The requirements of clause (i) shall not 
     apply if, on request by an importer, the Administrator 
     applies an alternate method for establishing the requirement.
       (ii) Requirement for application.--The Administrator shall 
     apply an alternate method for establishing a requirement 
     under clause (i) only if the applicable importer demonstrates 
     in an administrative hearing by a preponderance of evidence 
     that the alternate method will establish an international 
     reserve allowance requirement that is more representative 
     than the requirement that would otherwise apply under clause 
     (i).
       (D) Administrative hearing.--The Administrator shall 
     establish procedures for administrative hearings under 
     subparagraph (C)(ii) to ensure that--
       (i) all evidence submitted by an importer will be subject 
     to verification by the Administrator;
       (ii) domestic manufactures of the category of covered goods 
     subject to the administrative hearing will have an 
     opportunity to review and comment on evidence submitted by 
     the importer; and
       (iii) appropriate penalties will be assessed in cases in 
     which the importer has submitted information that is false or 
     misleading.
       (e) Foreign Allowances and Credits.--
       (1) Foreign allowances.--
       (A) In general.--A United States importer may submit, in 
     lieu of an international reserve allowance issued under this 
     section, a foreign allowance or similar compliance instrument 
     distributed by a foreign country pursuant to a cap-and-trade 
     program that constitutes comparable action.
       (B) Commensurate cap-and-trade program.--For purposes of 
     subparagraph (A), a cap-and-trade program that constitutes 
     comparable action shall include any greenhouse gas regulatory 
     program adopted by a covered foreign country to limit the 
     greenhouse gas emissions of the covered foreign country, if 
     the Administrator certifies that the program--
       (i)(I) places a quantitative limitation on the total 
     quantity of greenhouse gas emissions of the covered foreign 
     country (expressed in terms of tons emitted per calendar 
     year); and
       (II) achieves that limitation through an allowance trading 
     system;
       (ii) satisfies such criteria as the Administrator may 
     establish for requirements relating to the enforceability of 
     the cap-and-trade program, including requirements for 
     monitoring, reporting, verification procedures, and allowance 
     tracking; and
       (iii) is a comparable action.
       (2) Foreign credits.--
       (A) In general.--A United States importer may submit, in 
     lieu of an international reserve allowance issued under this 
     section, an international offset that the Administrator has 
     authorized for use under subtitle B of title III or subtitle 
     B of this title.
       (B) Application.--The limitation on the use of 
     international reserve allowances by covered entities under 
     subsection (a)(7) shall not apply to a United States importer 
     for purposes of this paragraph.
       (f) Retirement of Allowances.--The Administrator shall 
     retire each international reserve allowance, foreign 
     allowance, and international offset submitted to achieve 
     compliance with this section.
       (g) Termination.--The international reserve allowance 
     requirements of this section shall cease to apply to a 
     covered good of a covered foreign country if the Commission 
     places the covered foreign country on the excluded list under 
     subsection (b)(2).
       (h) Final Regulations.--Not later than January 1, 2013, the 
     Administrator, in consultation with the Commission, shall 
     promulgate such regulations as the Administrator determines 
     to be necessary to carry out this section.

     SEC. 1307. ADJUSTMENT OF INTERNATIONAL RESERVE ALLOWANCE 
                   REQUIREMENTS.

       (a) In General.--Not later than January 1, 2017, and 
     annually thereafter, the Commission shall prepare and submit 
     to the President and Congress a report that assesses the 
     effectiveness of the international reserve allowance 
     requirements under section 1306 with respect to--
       (1) covered goods entered into the United States from each 
     foreign country included on the covered list under section 
     1306(b)(3); and
       (2) the production of covered goods in those foreign 
     countries that are incorporated into manufactured goods that 
     are subsequently entered into the United States.
       (b) Inadequate Requirements.--If the Commission determines 
     that an applicable international reserve allowance 
     requirement is not adequate to achieve the purposes of this 
     subtitle, the Commission shall include in the report under 
     subsection (a) recommendations--

[[Page S5095]]

       (1) to increase the stringency or otherwise improve the 
     effectiveness of the applicable requirements in a manner that 
     ensures compliance with all applicable international 
     agreements;
       (2) to address greenhouse gas emissions attributable to the 
     production of manufactured items for consumption that are not 
     subject to the international reserve allowance requirements 
     under section 1306; or
       (3) to take such other action as the Commission determines 
     to be necessary to address greenhouse gas emissions 
     attributable to the production of covered goods in covered 
     foreign countries, in compliance with all applicable 
     international agreements.
       (c) Revised Regulations.--The Administrator, in 
     consultation with the Commission, shall promulgate revised 
     regulations to implement the recommended changes to improve 
     the effectiveness of the international reserve allowance 
     requirements under subsection (b).
       (d) Effective Date.--Any revisions made pursuant to 
     subsection (c) shall take effect on January 1 of the 
     compliance year immediately following the date on which the 
     revision is made.

  Subtitle B--International Partnerships to Reduce Deforestation and 
                           Forest Degradation

     SEC. 1311. FINDINGS; PURPOSE.

       (a) Findings.--Congress finds that--
       (1) changes in land use patterns and forest sector 
     emissions account for approximately 20 percent of global 
     greenhouse gas emissions;
       (2) land conversion and deforestation are 2 of the largest 
     sources of greenhouse gas emissions in the developing world, 
     comprising approximately 40 percent of the total greenhouse 
     gas emissions of the developing world;
       (3) with sufficient data, deforestation and forest 
     degradation rates and forest carbon stocks can be measured 
     with an acceptable degree of uncertainty;
       (4) encouraging reduced deforestation and reduced forest 
     degradation in foreign countries could--
       (A) provide critical leverage to encourage voluntary 
     participation by developing countries in emission limitation 
     regimes;
       (B) facilitate greater overall reductions in greenhouse gas 
     emissions than otherwise would be practicable; and
       (C) substantially benefit biodiversity, conservation, and 
     indigenous and other forest-dependent people in developing 
     countries;
       (5) in addition to forest carbon activities that can be 
     readily measured, monitored, and verified through national-
     scale programs and projects, there is great value in reducing 
     emissions and sequestering carbon through forest carbon 
     projects in countries that lack the institutional 
     arrangements to support national-scale accounting of forest 
     carbon stocks; and
       (6) providing emission allowances in support of projects in 
     countries that lack fully developed institutions for 
     national-scale accounting could help to build capacity in 
     those countries, sequester additional carbon, and increase 
     participation by developing countries in international 
     climate agreements.
       (b) Purpose.--The purpose of this subtitle is to reduce 
     greenhouse gas emissions by reducing deforestation and forest 
     degradation in foreign countries in a manner that reduces the 
     costs imposed by this Act on covered entities in the United 
     States.

     SEC. 1312. CAPACITY BUILDING PROGRAM.

       (a) Establishment.--Not later than 2 years after the date 
     of enactment of this Act, the Administrator, in consultation 
     with the Secretary of the Interior, the Secretary of State, 
     and the Secretary of Agriculture, shall promulgate 
     regulations to establish programs under which the 
     Administrator shall provide emission allowances allocated 
     pursuant to subsection (b) to individuals and entities 
     (including foreign governments) carrying out projects in 
     foreign countries as described in sections 1313 and 1314.
       (b) Allocation.--Not later than 330 days before January 1 
     of each of calendar years 2012 through 2050, the 
     Administrator shall allocate for distribution under this 
     section 1 percent of the aggregate quantity of emission 
     allowances established for the applicable calendar year 
     pursuant to section 201(a).

     SEC. 1313. FOREST CARBON ACTIVITIES.

       (a) Eligibility Requirements.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of the Interior, the Secretary of State, 
     and the Secretary of Agriculture, shall promulgate 
     regulations establishing eligibility requirements for the 
     allocation of emission allowances under this subsection for 
     forest carbon activities directed at sequestration of carbon 
     through restoration of forests and degraded land, 
     afforestation, and improved forest management in countries 
     other than the United States, including requirements that 
     those activities shall be--
       (A) carried out and managed in accordance with widely-
     accepted environmentally sustainable forestry practices; and
       (B) designed--
       (i) to promote native species and restoration of native 
     forests, where practicable;
       (ii) to avoid the introduction of invasive nonnative 
     species;
       (iii) so as not to adversely impact or undermine the rights 
     (including internationally recognized rights) of indigenous 
     and other forest-dependent individuals residing in the 
     affected areas; and
       (iv) in a manner that ensures that local communities--

       (I) are provided the right of free, prior, informed consent 
     regarding projects or other activities;
       (II) are able to share equitably in profits or other 
     benefits of the activities; and
       (III) receive fair compensation for any damages resulting 
     from the activities.

       (2) Quality criteria for forest carbon allocations.--The 
     regulations promulgated pursuant to paragraph (1) shall 
     include requirements to ensure that the emission reductions 
     or sequestrations of a forest carbon activity that receives 
     emission allowances under this section are real, permanent, 
     additional, verifiable, and enforceable, with reliable 
     measuring and monitoring and appropriate accounting for 
     leakage.
       (b) Peatland and Other Natural Land That Sequester 
     Carbon.--The Administrator may provide emission allowances 
     under this section for a project for storage of carbon in 
     peatland or other natural land if the Administrator--
       (1) determines that--
       (A) the peatland or other natural land is capable of 
     storing carbon; and
       (B) the project for storage of carbon in the peatland or 
     other natural land is capable of meeting the quality criteria 
     described in subsection (a); and
       (2) provides notice and an opportunity for public comment 
     regarding the project.
       (c) Recognition of Forest Carbon Activities.--With respect 
     to foreign countries other than the foreign countries 
     described in subsection (a) or (b), the Administrator--
       (1) shall recognize any forest carbon activities of the 
     foreign country, subject to the quality criteria for forest 
     carbon activities described in subsection (b); and
       (2) is encouraged to identify other incentives, including 
     economic and market-based incentives, to encourage developing 
     countries with largely intact native forests to protect those 
     forests.
       (d) Other Forest Carbon Activities.--A forest carbon 
     activity other than a reduction in deforestation or forest 
     degradation shall be eligible for a distribution of emission 
     allowances under this section, subject to the eligibility 
     requirements and quality criteria for forest carbon 
     activities described in subsection (a) or other regulations 
     promulgated pursuant to this Act.

     SEC. 1314. ESTABLISHING AND DISTRIBUTING OFFSET ALLOWANCES.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of the Interior, the Secretary of State, 
     and the Secretary of Agriculture, shall promulgate 
     regulations, including quality and eligibility requirements, 
     for the distribution of offset allowances for international 
     forest carbon activities.
       (b) Quality and Eligibility Requirements.--The regulations 
     promulgated pursuant to subsection (a) shall require that, in 
     order to be approved for use under this section, offset 
     allowances distributed for an international forest carbon 
     activity shall meet such quality and eligibility requirements 
     as the Administrator may establish, including a requirement 
     that--
       (1) the activity shall be designed, carried out, and 
     managed --
       (A) in accordance with widely-accepted, environmentally 
     sustainable forestry practices;
       (B) to promote native species and conservation or 
     restoration of native forests, where practicable, and to 
     avoid the introduction of invasive nonnative species;
       (C) in a manner that does not adversely impact or undermine 
     the rights (including internationally recognized rights) of 
     indigenous and other forest-dependent individuals residing in 
     affected areas; and
       (D) in a manner that ensures that local communities--
       (i) are provided the right of free, prior, informed consent 
     regarding projects or other activities;
       (ii) are able to share equitably in profits or other 
     benefits of the activities; and
       (iii) receive fair compensation for any damages resulting 
     from the activities;
       (2) the emission reductions or sequestrations are real, 
     permanent, additional, verifiable, and enforceable, with 
     reliable measuring and monitoring and appropriate accounting 
     for leakage; and
       (3) eligible offset allowances are provided only from 
     countries on a list described in subsection (c).
       (c) Lists.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary of State, shall identify and periodically 
     update a list of the names of countries that have--
       (A) demonstrated capacity to participate in international 
     forest carbon activities, including--
       (i) sufficient historical data on changes in national 
     forest carbon stocks;
       (ii) technical capacity to monitor and measure forest 
     carbon fluxes with an acceptable level of uncertainty; and
       (iii) institutional capacity to reduce emissions from 
     deforestation and degradation;
       (B) capped greenhouse gas emissions or otherwise 
     established a credible national baseline or emission 
     reference scenario that is--
       (i) consistent with nationally appropriate mitigation 
     commitments or actions, taking into consideration the average 
     annual deforestation and degradation rates of the country 
     during a period of at least 5 years; and

[[Page S5096]]

       (ii) projected to result in zero-net deforestation by not 
     later than 2050; and
       (C)(i) implemented an emission reduction program for the 
     forest sector; and
       (ii) demonstrated those reductions using remote sensing 
     technology, taking into consideration relevant international 
     standards.
       (2) Periodic review of national-level reductions in 
     deforestation and degradation.--The Administrator, in 
     consultation with the Secretary of State, shall identify and 
     periodically update a list of the names of countries included 
     in the list under paragraph (1) that have--
       (A) achieved national-level reductions of deforestation and 
     degradation below a historical reference scenario, taking 
     into consideration the average annual deforestation and 
     degradation rates of the country, and of all countries, 
     during a period of at least 5 years; and
       (B) demonstrated those reductions using remote sensing 
     technology, taking into consideration relevant international 
     standards.
       (3) Crediting and additionality.--A verified reduction in 
     greenhouse gas emissions from deforestation and forest 
     degradation under a cap or resulting from a nationwide 
     emissions reference scenario described in paragraph (1)(B) 
     shall be--
       (A) eligible for crediting; and
       (B) considered to satisfy the additionality criterion.
       (d) Facility Certification.--The owner or operator of a 
     covered entity that submits an offset allowance generated 
     under this section shall certify that the offset allowance 
     has not been retired from use in a registry of the applicable 
     foreign country.
       (e) Use.--
       (1) In general.--Subject to paragraph (3), the quantity of 
     offset allowances distributed pursuant to this section in a 
     calendar year shall not exceed 10 percent of the quantity of 
     emission allowances established for that year pursuant to 
     section 201(a).
       (2) Use of international allowances.--
       (A) In general.--If the quantity of offset allowances 
     distributed in a calendar year pursuant to this section is 
     less than 10 percent of the quantity of emission allowances 
     established for that calendar year pursuant to section 
     201(a), the Administrator shall allow the use, by covered 
     entities during that year, of international allowances under 
     section 322.
       (B) Quantity.--The aggregate quantity of international 
     allowances the use of which is permitted under subparagraph 
     (A) for a calendar year shall be equal to the difference 
     between--
       (i) the quantity of offset allowances distributed during 
     that calendar year pursuant to this section; and
       (ii) a value equal to 10 percent of the quantity of 
     emission allowances established for that year pursuant to 
     section 201(a).
       (3) Carryover.--Notwithstanding paragraph (1), if the sum 
     of the quantity of offset allowances distributed for a 
     calendar year pursuant to this section and the quantity of 
     international allowances permitted to be used during that 
     year under paragraph (2)(B) is less than a value equal to 10 
     percent of the quantity of emission allowances established 
     for that year pursuant to section 201(a), the quantity of 
     offset allowances distributed pursuant to this section for 
     the following calendar year shall not exceed a value equal to 
     the sum of--
       (A) 10 percent of the quantity of emission allowances 
     established for that calendar year pursuant to section 
     201(a); and
       (B) the difference between--
       (i) a value equal to the sum of--

       (I) the quantity of offset allowances distributed during 
     the preceding calendar year pursuant to this section; and
       (II) the quantity of international allowances used during 
     that year pursuant to paragraph (2); and

       (ii) 10 percent of the quantity of emission allowances 
     established for that year pursuant to section 201(a).
       (f) Limitations.--
       (1) Maximum quantity.--The Administrator shall not 
     distribute to the government of a foreign country a quantity 
     of offset allowances that exceeds the quantity of metric tons 
     of carbon dioxide that have been biologically sequestered or 
     prevented from being emitted as a result of country-wide 
     reductions in deforestation and forest degradation by the 
     foreign country.
       (2) Maximum use.--The regulations promulgated pursuant to 
     this section shall ensure that offset allowances are not 
     issued for sequestration or emission reductions that have 
     been used or will be used by any other country for compliance 
     with a domestic or international obligation to limit or 
     reduce greenhouse gas emissions.
       (g) Reviews.--Not later than 3 years after the date of 
     enactment of this Act, and 5 years thereafter, the 
     Administrator shall conduct a review of the program under 
     this section.
       (h) Discount.--If, after the date that is 10 years after 
     the date of enactment of this Act, the Administrator 
     determines that foreign countries that, in the aggregate, 
     generate greenhouse gas emissions accounting for more than 
     0.5 percent of global greenhouse gas emissions have not 
     capped those emissions, established emissions reference 
     scenarios based on historical data, or otherwise reduced 
     total forest emissions of the foreign countries, the 
     Administrator may apply a discount to distributions of 
     emission allowances to those countries under this section.

     SEC. 1315. LIMITATION ON DOUBLE COUNTING.

       Notwithstanding any other provision of this Act, activities 
     that receive credit under subtitle E of title II shall not be 
     eligible to receive emission allowances under this subtitle.

     SEC. 1316. EFFECT OF SUBTITLE.

       Nothing in this subtitle supersedes, limits, or otherwise 
     affects any restriction imposed by Federal law (including 
     regulations) on any interaction between an entity located in 
     the United States and an entity located in a foreign country.

     Subtitle C--International Partnerships to Deploy Clean Energy 
                               Technology

     SEC. 1321. INTERNATIONAL CLEAN ENERGY DEPLOYMENT.

       (a) Purpose.--The purpose of this section is to promote and 
     leverage private financing for the development and 
     international deployment of technologies that will contribute 
     to sustainable economic growth and the stabilization of 
     greenhouse gas concentrations in the atmosphere at a level 
     that will prevent dangerous anthropogenic interference with 
     the climate system.
       (b) Definitions.--In this section:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means
       (A) in the Senate--
       (i) the Committee on Foreign Relations;
       (ii) the Committee on Finance;
       (iii) the Committee on Energy and Natural Resources;
       (iv) the Committee on Environment and Public Works; and
       (v) the Committee on Appropriations; and
       (B) in the House of Representatives--
       (i) the Committee on Foreign Affairs;
       (ii) the Committee on Ways and Means;
       (iii) the Committee on Energy and Commerce;
       (iv) the Committee on Natural Resources; and
       (v) the Committee on Appropriations.
       (2) Eligible country.--The term ``eligible country'' means 
     a foreign country that, as determined by the President--
       (A) is not a member of the Organization for Economic 
     Cooperation and Development; and
       (B)(i) has made a binding commitment, pursuant to an 
     international agreement to which the United States is a 
     party, to carry out actions to produce measurable, 
     reportable, and verifiable greenhouse gas emission 
     mitigations; or
       (ii) as certified by the President to the appropriate 
     committees of Congress, has in force binding national 
     policies and measures that are capable of producing 
     measurable, reportable, and verifiable greenhouse gas 
     emission mitigations.
       (3) Fund.--The term ``Fund'' means the International Clean 
     Energy Deployment Fund established by subsection (c)(1).
       (4) Qualified entity.--The term `` qualified entity'' 
     means--
       (A) the national government of an eligible country;
       (B) a regional or local governmental unit of an eligible 
     country; and
       (C) a nongovernmental organization or a private entity 
     located or operating in an eligible country.
       (c) International Clean Energy Deployment Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``International 
     Clean Energy Deployment Fund''.
       (2) Auctions.--
       (A) In general.--In accordance with subparagraph (B), to 
     raise funds for deposit in the Fund, for each of calendar 
     years 2012 through 2017, the Administrator shall auction 0.5 
     percent of the emission allowances established pursuant to 
     section 201(a) for the calendar year.
       (B) Number; frequency.--For each calendar year during the 
     period described in subparagraph (A), the Administrator 
     shall--
       (i) conduct not fewer than 4 auctions; and
       (ii) schedule the auctions in a manner to ensure that--

       (I) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (II) the interval between each auction is of equal 
     duration.

       (C) Deposit of proceeds.--As soon as practicable after 
     conducting an auction under subparagraph (A), the 
     Administrator shall deposit the proceeds of the auction in 
     the Fund.
       (d) Use of Funds.--All amounts in the Fund shall be made 
     available, without further appropriation or fiscal year 
     limitation, to carry out the International Clean Energy 
     Deployment Program established by section 114.

 Subtitle D--International Partnerships to Adapt to Climate Change and 
                       Protect National Security

     SEC. 1331. INTERNATIONAL CLIMATE CHANGE ADAPTATION AND 
                   NATIONAL SECURITY FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``International 
     Climate Change Adaptation and National Security Fund'' 
     (referred to in this subtitle as the ``Fund'').
       (b) Auctions.--
       (1) In general.--In accordance with paragraph (2) and 
     subsection (c), to raise funds for deposit in the Fund, for 
     each of calendar years 2012 through 2050, the Administrator 
     shall auction a certain percentage of the emission allowances 
     established pursuant to section 201(a) for the calendar year.

[[Page S5097]]

       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (3) Deposit of proceeds.--As soon as practicable after 
     conducting an auction under paragraph (1), the Administrator 
     shall deposit the proceeds of the auction in the Fund.
       (c) Percentage for Auction.--For each of calendar years 
     2012 through 2050, the Administrator shall auction in 
     accordance with subsection (b) the percentage of emission 
     allowances specified in the following table:


----------------------------------------------------------------------------------------------------------------
                 Calendar year                                   Percentage for auction for Fund
----------------------------------------------------------------------------------------------------------------
2012...........................................  1
2013...........................................  1
2014...........................................  1.25
2015...........................................  1.25
2016...........................................  1.25
2017...........................................  1.25
2018...........................................  2
2019...........................................  2
2020...........................................  2
2021...........................................  2
2022...........................................  3
2023...........................................  3
2024...........................................  3
2025...........................................  3
2026...........................................  4
2027...........................................  4
2028...........................................  4
2029...........................................  4
2030...........................................  4
2031...........................................  6
2032...........................................  6
2033...........................................  6
2034...........................................  6
2035...........................................  6
2036...........................................  6
2037...........................................  6
2038...........................................  6
2039...........................................  7
2040...........................................  7
2041...........................................  7
2042...........................................  7
2043...........................................  7
2044...........................................  7
2045...........................................  7
2046...........................................  7
2047...........................................  7
2048...........................................  7
2049...........................................  7
2050...........................................  7.
----------------------------------------------------------------------------------------------------------------

     SEC. 1332. INTERNATIONAL CLIMATE CHANGE ADAPTATION AND 
                   NATIONAL SECURITY PROGRAM.

       (a) Establishment of Program.--Not later than 2 years after 
     the date of enactment of this Act, the Secretary of State, in 
     consultation with the Administrator of the United States 
     Agency for International Development (referred to in this 
     subtitle as the ``Administrator of the Agency'') and the 
     Administrator, shall establish within the Agency a program, 
     to be known as the `` International Climate Change Adaptation 
     and National Security Program'' (referred to in this subtitle 
     as the ``Program'').
       (b) Purposes.--The purposes of the Program shall be--
       (1) to protect the economic and national security of the 
     United States by minimizing, averting, or increasing 
     resilience to potentially destabilizing global climate change 
     impacts;
       (2) to support the development of national and regional 
     climate change adaptation plans in the most vulnerable 
     developing countries, including the planning, financing, and 
     execution of adaptation projects;
       (3) to support the identification and deployment of 
     technologies that would help the most vulnerable developing 
     countries respond to destabilizing impacts of climate change, 
     including appropriate low-carbon and energy-efficient 
     technologies that help reduce greenhouse gas and black carbon 
     emissions of those countries;
       (4) to support investments, capacity-building activities, 
     and other assistance to reduce vulnerability and promote 
     community-level resilience relating to climate change and the 
     impacts of climate change on the most vulnerable developing 
     countries, including impacts such as--
       (A) water scarcity (including drought and reductions in 
     access to safe drinking water);
       (B) reductions in agricultural productivity;
       (C) floods;
       (D) sea level rise;
       (E) shifts in agricultural zones or seasons;
       (F) shifts in biodiversity; or
       (G) other impacts that--
       (i) affect economic livelihoods;
       (ii) result in increases in refugees and internally 
     displaced individuals; or
       (iii) otherwise increase social, economic, political, 
     cultural, or environmental vulnerability;
       (5) to support climate change adaptation research in or for 
     the most vulnerable developing countries; and
       (6) to encourage the enhancement and diversification of 
     agricultural, fishery, and other livelihoods, the reduction 
     of disaster risk, and the protection and rehabilitation of 
     natural systems in order to reduce vulnerability and provide 
     increased resilience to climate change for local communities 
     and livelihoods in the most vulnerable developing countries.
       (c) Duties.--The director of the Program shall--
       (1) submit to the President, the Committees on Environment 
     and Public Works and Foreign Relations of the Senate, the 
     Committees on Energy and Commerce and Foreign Relations of 
     the House of Representatives, and any other relevant 
     congressional committees with national security jurisdiction, 
     annual reports on the economy and foreign policy that 
     describe, with respect to the preceding calendar year--
       (A) the extent to which other countries are committed to 
     reducing greenhouse gas emissions through mandatory programs;
       (B) the extent to which global climate change, through the 
     potential negative impacts of climate change on sensitive 
     populations and natural resources in the most vulnerable 
     developed countries, might threaten, cause, or exacerbate 
     political, economic, environmental, cultural, or social 
     instability or international conflict in those regions;
       (C) the ramifications of any potentially destabilizing 
     impacts climate change might have on the economic and 
     national security of the United States, including--
       (i) the creation of refugees and internally displaced 
     individuals;
       (ii) national or international armed conflicts over water, 
     food, land, or other resources;
       (iii) loss of agricultural and other livelihoods, cultural 
     stability, and other causes of increased poverty and economic 
     destabilization;
       (iv) decline in availability of resources needed for 
     survival, including water;
       (v) increased impact of natural disasters, including severe 
     weather events, droughts, and flooding;
       (vi) increased prevalence or virulence of climate-related 
     diseases; and
       (vii) intensified urban migration;
       (D) the means by which funds derived from proceeds of 
     auctions under section 1331 were expended to enhance the 
     economic and national security of the United States and 
     assist in avoiding the economically, politically, 
     environmentally, culturally, and socially destabilizing 
     impacts of climate change in volatile regions of the world, 
     particularly least-developed countries; and
       (E) cooperative activities carried out by the United States 
     and foreign countries and international organizations to 
     carry out this subtitle; and
       (2) identify and make recommendations regarding the 
     developing countries--
       (A) that are most vulnerable to climate change impacts; and
       (B) in which Federal assistance could have the greatest and 
     most sustainable benefits with respect to reducing 
     vulnerability to climate change, including in the form of 
     deploying technologies, investments, capacity-building 
     activities, and other types of assistance for adaptation to 
     climate change impacts and approaches to reduce emissions of 
     greenhouse gases in ways that could also provide community-
     level resilience to climate change impacts.
       (d) Implementation of Program.--
       (1) Recommendations.--Amounts deposited in the Fund under 
     section 1331(b)(3) shall be made available, without further 
     appropriation or fiscal year limitation, to carry out--
       (A) the Program; and
       (B) international activities that meet the requirements 
     described in paragraph (8).
       (2) Oversight.--The Administrator of the Agency shall have 
     oversight authority with respect to the expenditures of the 
     Program.
       (3) Most vulnerable developing countries.--The director of 
     the Program shall use amounts in the Fund to carry out 
     project and programs in the most vulnerable developing 
     countries, as determined by the Administrator of the Agency, 
     including--
       (A) least-developed countries;
       (B) low-lying and other small island developing countries;
       (C) developing countries with low-lying coastal, arid, and 
     semi-arid areas or areas prone to floods, drought, and 
     desertification; and
       (D) developing countries with fragile, mountainous 
     ecosystems.
       (4) Limitation.--Not more than 10 percent of amounts made 
     available to carry out this subtitle shall be spent in any 
     single country in any calendar year.
       (5) Consultation with local communities and stakeholders.--
     The Administrator of the Agency shall ensure that local 
     communities in areas in which a project is proposed to be 
     carried out under the Program are involved in the project 
     through--
       (A) full disclosure of information;
       (B) consultation with the communities and stakeholders at 
     international, national, and local levels; and
       (C) informed participation.
       (6) Development objectives.--The Administrator of the 
     Agency shall, to the maximum extent practicable, ensure that 
     projects proposed to be carried out under the Program are 
     carried out in accordance with broader development, poverty 
     alleviation, or natural resource management objectives and 
     initiatives in the countries served by the projects.
       (7) International funds.--
       (A) In general.--The Secretary of State may distribute not 
     more than 60 percent of amounts made available to carry out 
     the

[[Page S5098]]

     Program to an international fund that meets the requirements 
     of paragraph (8).
       (B) Notification.--Not later than 15 days before the date 
     on which the Secretary of State distributes funds to an 
     international fund under subparagraph (A), the Secretary of 
     State shall submit to the appropriate congressional 
     committees a notification of the distribution.
       (8) Requirements.--To be eligible to receive funds under 
     paragraph (7), an international fund shall be established 
     pursuant to the Convention (or an agreement negotiated under 
     the Convention) that--
       (A) specifies the terms and conditions under which--
       (i) the United States will provide amounts to the fund; and
       (ii) the international fund will distribute the amounts to 
     recipient countries;
       (B) ensures that United States assistance to the 
     international fund and the principal and income of the fund 
     are disbursed only for purposes that are consistent with 
     subsection (b);
       (C) requires a regular meeting of a governing body of the 
     international fund that provides full public access and 
     includes members representing the most vulnerable developing 
     countries;
       (D) requires that not more than 10 percent of the amounts 
     available to the international fund shall be spent for any 
     single country in any calendar year; and
       (E) requires the international fund to prepare and make 
     public an annual report that--
       (i) identifies and recommends the developing countries--

       (I) that are most vulnerable to climate change impacts; and
       (II) in which assistance can have the greatest and most 
     sustainable benefit to reducing vulnerability to climate 
     change;

       (ii) describes the process and methodology for selecting 
     the recipients of assistance or grants from the fund;
       (iii) describes specific programs and projects funded by 
     the international fund and the extent to which the assistance 
     is addressing the adaptation needs of the most vulnerable 
     developing countries;
       (iv) describes the performance goals for assistance under 
     the fund and expresses those goals in an objective and 
     quantifiable form, to the maximum extent practicable;
       (v) describes the performance indicators to be used in 
     measuring or assessing the achievement of the performance 
     goals described in clause (iv);
       (vi) provides a basis for recommendations for adjustments 
     to assistance under this subtitle to enhance the impact of 
     the assistance; and
       (vii) describes the participation of other countries and 
     international organizations in funding and administering the 
     international fund.

     SEC. 1333. MONITORING AND EVALUATION OF PROGRAMS.

       (a) In General.--The Administrator of the Agency shall 
     establish and implement a system to monitor and evaluate the 
     effectiveness and efficiency of assistance provided under 
     this subtitle on a program-by-program basis in order to 
     maximize the long-term sustainable developmental impact of 
     the assistance, including the extent to which the assistance 
     is--
       (1) meeting the purposes of this subtitle in addressing the 
     climate change adaptation needs of developing countries; and
       (2) enhancing the national security of the United States.
       (b) Requirements.--In carrying out subsection (a), the 
     Administrator of the Agency shall--
       (1) in consultation with heads of government of recipient 
     foreign countries--
       (A) establish performance goals for assistance under this 
     subtitle; and
       (B) expresses those goals in an objective and quantifiable 
     form, to the maximum extent practicable;
       (2) establish performance indicators for use in assessing 
     the achievement of the performance goals described in 
     paragraph (1);
       (3) provide a basis for recommendations for adjustments to 
     assistance under this subtitle to enhance the impact of the 
     assistance; and
       (4) include in the report to Congress under section 
     1332(c)(1) a description of the results of the monitoring and 
     evaluation of programs under this section.
       (c) Reviews.--Not later than 3 years after the date of 
     enactment of this Act, and every 3 years thereafter, the 
     Administrator of the Agency, in cooperation with the National 
     Academy of Sciences and other research and development 
     institutions, as appropriate, shall conduct a review of--
       (1) the global needs and opportunities for, and costs of, 
     adaptation assistance in developing countries, especially 
     least-developed developing countries;
       (2) the progress of international adaptation among 
     developing countries, including an evaluation of--
       (A) the impact of expenditures by the Secretary under this 
     subtitle; and
       (B) the extent to which adaptation needs are addressed;
       (3) the best practices for adapting to climate change in 
     terms of promoting community-level resilience and social, 
     economic, political, environmental, and cultural stability; 
     and
       (4) any guidelines or regulations established by the 
     Administrator of the Agency to carry out this subtitle.

                    TITLE XIV--REDUCING THE DEFICIT

     SEC. 1401. DEFICIT REDUCTION FUND.

       There is established in the Treasury of the United States a 
     fund, to be known as the ``Deficit Reduction Fund''.

     SEC. 1402. AUCTIONS.

       (a) In General.--For each of calendar years 2012 through 
     2050, the Administrator shall auction, in accordance with 
     subsections (b) and (c), a certain percentage of the emission 
     allowances established pursuant to section 201(a) for the 
     calendar year to raise funds for deposit in the Deficit 
     Reduction Fund.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.
       (c) Quantities of Emission Allowances Auctioned.--For each 
     of calendar years 2012 through 2050, the quantity of emission 
     allowances auctioned pursuant to subsection (a) shall be the 
     quantity represented by the percentages specified in the 
     following table:


------------------------------------------------------------------------
                                                              Percentage
                                                                  for
                                                                auction
                        Calendar year                             for
                                                                Deficit
                                                               Reduction
                                                                 Fund
------------------------------------------------------------------------
2012........................................................     5.75
2013........................................................     5.75
2014........................................................     5.75
2015........................................................     6.50
2016........................................................     6.75
2017........................................................     6.75
2018........................................................     7.25
2019........................................................        7
2020........................................................        8
2021........................................................      9.5
2022........................................................     8.75
2023........................................................     9.75
2024........................................................    10.75
2025........................................................    10.75
2026........................................................    12.75
2027........................................................    12.75
2028........................................................    12.75
2029........................................................    13.75
2030........................................................    13.75
2031........................................................    19.75
2032........................................................    17.75
2033........................................................    17.75
2034........................................................    16.75
2035........................................................    16.75
2036........................................................    16.75
2037........................................................    16.75
2038........................................................    16.75
2039........................................................    16.75
2040........................................................    16.75
2041........................................................    16.75
2042........................................................    16.75
2043........................................................    16.75
2044........................................................    16.75
2045........................................................    16.75
2046........................................................    16.75
2047........................................................    16.75
2048........................................................    16.75
2049........................................................    16.75
2050........................................................   16.75.
------------------------------------------------------------------------

     SEC. 1403. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 1402, immediately on receipt of 
     those proceeds, in the Deficit Reduction Fund.

     SEC. 1404. DISBURSEMENTS FROM FUND.

       No disbursement shall be made from the Deficit Reduction 
     Fund, except pursuant to an appropriation Act.

             TITLE XV--CAPPING HYDROFLUOROCARBON EMISSIONS

     SEC. 1501. REGULATIONS.

       (a) In General .--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations establishing a program requiring reductions in 
     hydrofluorocarbons consumed in the United States by entities 
     that--
       (1) manufacture HFCs in the United States; or
       (2) import HFCs into the United States.
       (b) Definition of HFC Consumed.--The regulations 
     promulgated pursuant to subsection (a) shall provide that the 
     term ``HFC consumed''--
       (1) means--
       (A) in the case of an HFC producer, a value equal to the 
     difference between--
       (i) the sum of--

       (I) the quantity of HFC produced in the United States; and
       (II) the quantity of HFC imported from any source into the 
     United States, including quantities contained in products or 
     equipment, or acquired in the United States from another HFC 
     producer through sale or other transaction; and

       (ii) the quantity of HFC exported or transferred to another 
     HFC producer in the United States through sale or other 
     transaction; and
       (B) in the case of an HFC importer for resale, a value 
     equal to the difference between--
       (i) the quantity of HFC imported for resale from any source 
     into the United States; and
       (ii) the quantity of HFC exported; and

[[Page S5099]]

       (2) shall not include the consumption of any quantity of 
     HFC that is recycled.
       (c) Requirements.--The program established under subsection 
     (a) shall--
       (1) be based on, and parallel the major regulatory 
     structure of, the program established under this Act for 
     requiring reductions of emissions in the United States of 
     non-HFC greenhouse gases;
       (2) provide that the compliance obligation under this 
     section shall require the submission of HFC allowances for 
     any HFC consumed or imported in products or equipment;
       (3) provide that the compliance obligation under the 
     program shall not be satisfied, in whole or in part, by the 
     submission of any emission allowances or offset allowances 
     established pursuant to titles II, III, or XIII;
       (4) establish annual HFC limitations in accordance with 
     subsection (d);
       (5) take into consideration, in establishing the 
     limitations, whether the automobile manufacturing industry 
     will begin selling, before 2012, automobiles the air 
     conditioning systems of which use a refrigerant with a lower 
     global warming potential than HFCs currently in use;
       (6) require the auction of--
       (A) not more than 10 percent of the quantity of HFC 
     allowances established for calendar year 2012;
       (B) for each of calendar years 2013 through 2030, a 
     percentage of the quantity of HFC allowances established for 
     the applicable calendar year that is greater than the 
     percentage auctioned under this section for the preceding 
     calendar year; and
       (C) 100 percent of the quantity of HFC allowances 
     established for calendar years 2031 through 2050;
       (7) for each of calendar years 2012 through 2030, require 
     the allocation, at no charge, to entities that manufacture 
     HFCs in the United States and import HFCs into the United 
     States of--
       (A) subject to subparagraph (B), not less than 80 percent 
     of the HFC allowances established for the applicable calendar 
     year and not auctioned in accordance with paragraph (6), with 
     the allocation being based on 100 percent of the HFCs and 60 
     percent of the hydrochlorofluorocarbons consumed by an HFC 
     producer or importer for resale during--
       (i) a base period covering calendar years 2004 through 
     2006; or
       (ii) as the Secretary determines to be appropriate, an 
     extended base period covering calendar years 2004 through 
     2008 with respect to an HFC producer or importer for resale 
     that commenced operation of a new manufacturing facility in 
     the United States after 2006; and
       (B) not less than 10 percent of the emission allowances 
     established for the applicable calendar year and not 
     auctioned to a class of entities, to be defined by the 
     Administrator, that manufacture in the United States 
     commercial products containing HFCs, including, at a minimum, 
     entities that manufactured in the United States during 
     calendar year 2005 commercial or residential air 
     conditioning, heat pump, commercial, or residential 
     refrigeration products or plastic foam products (including 
     formulated systems) containing HFC or 
     hydrochlorofluorocarbon, if the HFC or 
     hydrochlorofluorocarbon was included in the products at the 
     time of sale;
       (8) establish a system under which--
       (A) a manufacturer or importer of HFCs may reduce a 
     compliance obligation under this section for a calendar year 
     by demonstrating to the Administrator the quantity of HFCs 
     the manufacturer or importer destroyed during that calendar 
     year; and
       (B) the Administrator establishes and distributes HFC 
     allowances, on a discounted basis, to entities for 
     destruction of chlorofluorocarbons or 
     hydrochlorofluorocarbons; and
       (9) require the use of all proceeds from the auction of HFC 
     allowances under this section to support--
       (A) research into commercial alternatives with lower global 
     warming potential than HFCs currently in use;
       (B) the recovery, reclamation, and destruction of HFCs;
       (C) manufacturers in the United States the products of 
     which contain HFCs to transition to manufacturing products 
     that contain refrigerants or blowing agents with lower global 
     warming potential than HFCs currently in use; and
       (D) the promotion of energy-efficient manufactured products 
     that contain refrigerants or blowing agents with low global 
     warming potential.
       (d) Annual Limitations.--The Administrator shall establish 
     HFC allowances for each calendar year in a manner that 
     establishes limitations on annual consumption of HFCs 
     pursuant to the program under this section of--
       (1) for calendar year 2012, not more than 289,000,000 
     carbon dioxide equivalents of HFCs;
       (2) for each of calendar years 2013 through 2019, a 
     quantity of carbon dioxide equivalents of HFCs that is less 
     than the quantity of carbon dioxide equivalents of HFCs 
     established for the preceding calendar year;
       (3) for calendar year 2020, a quantity of carbon dioxide 
     equivalents of HFCs equal to not more than the product 
     obtained by multiplying--
       (A) 289,000,000; and
       (B) 0.85;
       (4) for each of calendar years 2021 through 2029, a 
     quantity of carbon dioxide equivalents of HFCs that is less 
     than the quantity of carbon dioxide equivalents of HFCs 
     established for the preceding calendar year;
       (5) for calendar year 2030, a quantity of carbon dioxide 
     equivalents of HFCs equal to not more than the product 
     obtained by multiplying--
       (A) 289,000,000; and
       (B) 0.55;
       (6) for each of calendar years 2031 through 2036, a 
     quantity of carbon dioxide equivalents of HFCs that is less 
     than the quantity of carbon dioxide equivalents of HFCs 
     established for the preceding calendar year;
       (7) for each of calendar years 2037 through 2039, a 
     quantity of carbon dioxide equivalents of HFCs that does not 
     exceed the quantity of carbon dioxide equivalents of HFCs 
     established for the preceding calendar year; and
       (8) for each of calendar years 2040 through 2050, a 
     quantity of carbon dioxide equivalents of HFCs that does not 
     exceed the product obtained by multiplying--
       (A) 289,000,000; and
       (B) 0.30.

     SEC. 1502. NATIONAL RECYCLING AND EMISSION REDUCTION PROGRAM.

       Section 608 of the Clean Air Act (42 U.S.C. 7671g) is 
     amended--
       (1) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (2) by inserting before subsection (b) (as so redesignated) 
     the following:
       ``(a) Definition of Hydrofluorocarbon Substitute.--In this 
     section, the term `hydrofluorocarbon substitute' means a 
     hydrofluorocarbon--
       ``(1) with a global warming potential of more than 150; and
       ``(2) that is used in or for types of equipment, 
     appliances, or processes that previously relied on a class I 
     or class II substance.'';
       (3) in subsection (b) (as redesignated by paragraph (1))--
       (A) in the matter following paragraph (3), by striking 
     ``Such regulations'' and inserting the following:
       ``(5) The regulations'';
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3)(A) Not later than 1 year after date of enactment of 
     the Lieberman-Warner Climate Security Act of 2008, the 
     Administrator shall promulgate regulations establishing 
     standards and requirements regarding the sale or 
     distribution, or offer for sale and distribution in 
     interstate commerce, use, and disposal of hydrofluorocarbon 
     substitutes for class I substances and class II substances 
     not covered by paragraph (1), including the use, recycling, 
     and disposal of those hydrofluorocarbon substitutes during 
     the maintenance, service, repair, or disposal of appliances 
     and industrial process refrigeration equipment.
       ``(B) The standards and requirements established under 
     subparagraph (A) shall take effect not later than 1 year 
     after the date of promulgation of the regulations.'';
       (4) in subsection (c) (as redesignated by paragraph (1))--
       (A) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and indenting 
     the subparagraphs appropriately;
       (B) by striking the subsection designation and heading and 
     all that follows through ``following--'' and inserting the 
     following:
       ``(c) Safe Disposal.--The regulations under subsection (b) 
     shall--
       ``(1) establish standards and requirements for the safe 
     disposal of class I substances and class II substances and 
     hydrofluorocarbon substitutes for those substances; and
       ``(2) include each of the following:''; and
       (C) in subparagraph (A) (as redesignated by subparagraph 
     (A)), by inserting ``(or hydrofluorocarbon substitutes for 
     those substances)'' after ``class I or class II substances''.

     SEC. 1503. FIRE SUPPRESSION AGENTS.

       Section 605(a) of the Clean Air Act (42 U.S.C. 7671d(a)) is 
     amended--
       (1) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and indenting 
     the subparagraphs appropriately;
       (2) in the matter preceding subparagraph (A) (as so 
     redesignated), by striking ``Effective'' and inserting the 
     following:
       ``(1) In general.--Effective'';
       (3) in paragraph (1) (as redesignated by paragraphs (1) and 
     (2))--
       (A) in subparagraph (B) (as so redesignated), by striking 
     ``or'' at the end;
       (B) in subparagraph (C) (as so redesignated), by striking 
     the period at the end and inserting ``; or''; and
       (C) by inserting after subparagraph (C) the following:
       ``(D) the Administrator determines that the substance--
       ``(i) is used as a fire suppression agent for military, 
     commercial aviation, industrial, space, or national security 
     applications; and
       ``(ii) reduces overall risk to human health and the 
     environment, as compared to alternative substances.''; and
       (4) in the second sentence, by striking ``As used in'' and 
     inserting the following:
       ``(2) Definition of refrigerant.--In''.

            TITLE XVI--PERIODIC REPORTS AND RECOMMENDATIONS

     SEC. 1601. NATIONAL ACADEMY OF SCIENCES REPORTS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the

[[Page S5100]]

     Administrator shall offer to enter into an arrangement with 
     the National Academy of Sciences, under which the Academy 
     shall, by not later than January 1, 2012, and every 3 years 
     thereafter, make public and submit to the Administrator a 
     report in accordance with this section.
       (b) Latest Scientific Information.--Each report submitted 
     pursuant to subsection (a) shall--
       (1) address recent scientific reports on climate change, 
     including the most recent assessment by the Intergovernmental 
     Panel on Climate Change; and
       (2) include a description of--
       (A) trends in, and projections for, total United States 
     greenhouse gas emissions, including the Inventory of United 
     States Greenhouse Gas Emissions and Sinks;
       (B) trends in, and projections for, total worldwide 
     greenhouse gas emissions;
       (C) current and projected future atmospheric concentrations 
     of greenhouse gases;
       (D) current and projected future global average 
     temperature, including an analysis of whether an increase of 
     global average temperature in excess of 3.6 degrees 
     Fahrenheit (2 degrees Celsius) above the preindustrial 
     average has occurred or is more likely than not to occur in 
     the foreseeable future;
       (E) current and projected future adverse impacts of global 
     climate change on human populations, wildlife, and natural 
     resources; and
       (F) trends in, and projections for, the health of the 
     oceans and ocean ecosystems, including predicted changes in 
     ocean acidity, temperatures, extent of coral reefs, and other 
     indicators of ocean ecosystem health, resulting from 
     anthropogenic carbon dioxide emissions and climate change.
       (c) Performance of This Act.--In addition to information 
     required to be included under subsection (b), each report 
     submitted pursuant to subsection (a) shall include an 
     assessment of--
       (1) the extent to which this Act, in concert with other 
     policies, will prevent a dangerous increase in global average 
     temperature;
       (2) the extent to which this Act, in concert with other 
     policies, will prevent dangerous atmospheric concentrations 
     of greenhouse gases;
       (3) the current and future projected deployment of 
     technologies and practices that reduce or limit greenhouse 
     gas emissions, including--
       (A) technologies for capturing, transporting, and 
     sequestering carbon dioxide;
       (B) efficiency improvement technologies;
       (C) zero- and low-greenhouse gas-emitting energy 
     technologies, including solar, wind, geothermal, and nuclear 
     technologies; and
       (D) above- and below-ground biological sequestration 
     technologies;
       (4) the extent to which this Act and other policies are 
     accelerating the development and commercial deployment of 
     technologies and practices that reduce and limit greenhouse 
     gas emissions;
       (5) the extent to which the allocations and distributions 
     of emission allowances and auction proceeds under this Act 
     are advancing the purposes of this Act;
       (6) the feasibility of retiring quantities of the emission 
     allowances established pursuant to section 201(a);
       (7) the feasibility of establishing policies for reducing 
     greenhouse gas emissions in addition to the policies 
     established by this Act;
       (8) whether the use and trading of emission allowances is 
     resulting in increases in pollutants that are listed as 
     criteria pollutants under section 108(a)(1) of the Clean Air 
     Act (42 U.S.C. 7408(a)(1)), defined as toxic air pollutants 
     in section 211(k)(10)(C) of that Act (42 U.S.C. 
     7545(k)(10)(C)), or listed as hazardous air pollutants in 
     section 112(a) of that Act (42 U.S.C. 7412(a)) (referred to 
     collectively in this title as ``covered pollutants'');
       (9) whether the transformation of the market and 
     technologies deployed in response to carbon controls and 
     reductions are resulting in increases in covered pollutants;
       (10) whether the use and trading of emission allowances and 
     the transformation of the market and technologies deployed in 
     response to carbon controls and reductions are resulting in 
     an increase in covered pollutants in environmental justice 
     communities, specifically; and
       (11) with respect to the offset programs established under 
     this Act--
       (A) the uncertainty and additionality of domestic offsets, 
     international offsets, and international markets;
       (B) the impacts of changing the restrictions on the market 
     and the economic costs of the offset programs;
       (C) the interaction with the cost management efforts of the 
     Board;
       (D) the impacts on deforestation in foreign countries; and
       (E) the progress covered entities are making in reducing 
     emissions from covered activities of the covered entities.

     SEC. 1602. ENVIRONMENTAL PROTECTION AGENCY RECOMMENDATIONS.

       (a) In General.--Not later than January 1, 2013, and every 
     3 years thereafter, the Administrator shall submit to 
     Congress legislative recommendations based in part on the 
     most recent report submitted by the National Academy of 
     Sciences pursuant to section 1601.
       (b) Categories of Legislation.--The legislative measures 
     eligible for inclusion in the recommendations required by 
     subsection (a) shall include measures that would--
       (1) expand the definition of the term ``covered entity'' 
     under this Act;
       (2) expand the scope of the compliance obligation 
     established by section 202;
       (3) adjust quantities of emission allowances available in 1 
     or more calendar years;
       (4) establish other policies for reducing greenhouse gas 
     emissions in addition to the policies established by this 
     Act;
       (5) establish policies for reducing nationwide emissions 
     into the atmosphere of sulfur dioxide, nitrogen oxides, and 
     mercury in excess of the reductions resulting from the 
     implementation of this Act; and
       (6) prevent or abate any direct, indirect, or cumulative 
     increases in covered pollutants resulting from the use and 
     trading of emission allowances or from transformations in 
     technologies or markets.
       (c) Consistency With Reports.--The Administrator shall 
     include with each submission of recommendations made pursuant 
     to subsection (a) an explanation for each significant 
     inconsistency between the recommendations and the reports 
     submitted by the National Academies of Sciences pursuant to 
     section 1601.
       (d) Ongoing Evaluation of Impacts.--Not later than 90 days 
     after the date of enactment of this Act, the Administrator 
     shall establish an advisory committee that includes 
     representatives of impacted communities to advise the 
     Administrator on the implementation of Executive Order No. 
     12898 (59 Fed. Reg. 7629) in implementing this Act.
       (e) Effect on Other Authority.--Nothing in this title 
     limits the authority of the Administrator, a State, or any 
     person to use any authority under this Act or any other law 
     to promulgate, adopt, or enforce any regulation.

     SEC. 1603. PRESIDENTIAL RECOMMENDATIONS.

       (a) Establishment of Task Force.--Not later than January 1, 
     2018, the President shall establish a task force, to be known 
     as the ``Interagency Climate Change Task Force''.
       (b) Composition.--The members of the Interagency Climate 
     Change Task Force shall be--
       (1) the Administrator;
       (2) the Secretary of Energy;
       (3) the Secretary of the Treasury;
       (4) the Secretary of Commerce; and
       (5) such other Cabinet Secretaries as the President may 
     name to the membership of the Interagency Climate Change Task 
     Force.
       (c) Chairman.--The Administrator shall act as Chairperson 
     of the Interagency Climate Change Task Force.
       (d) Report to President.--
       (1) In general.--Not later than April 1, 2019, the 
     Interagency Climate Change Task Force shall make public and 
     submit to the President a consensus report making 
     recommendations, including for specific legislation for the 
     President to recommend to Congress.
       (2) Basis.--The report submitted pursuant to paragraph (1) 
     shall be based on the third set of recommendations submitted 
     by the Administrator to Congress under section 1602.
       (3) Inclusions.--The Interagency Climate Change Task Force 
     shall include with the consensus report an explanation for 
     each significant inconsistency between the consensus report 
     and the third set of recommendations submitted by the 
     Administrator to Congress pursuant to section 1602.
       (e) Presidential Recommendation to Congress.--Not later 
     than July 1, 2020, the President shall submit to Congress the 
     text of a proposed Act based upon the consensus report 
     submitted to the President pursuant to subsection (d).

                       TITLE XVII--MISCELLANEOUS

          Subtitle A--Climate Security Act Administrative Fund

     SEC. 1701. ESTABLISHMENT.

       There is established in the Treasury of the United States a 
     fund, to be known as the ``Climate Security Act 
     Administrative Fund'' (referred to in this subtitle as the 
     ``Fund'').

     SEC. 1702. AUCTIONS.

       (a) First Period.--Not later than 120 days after the date 
     of enactment of this Act, and annually thereafter through 
     2027, the Administrator shall auction, to raise funds for 
     deposit in the Fund, 0.75 percent of the quantity of emission 
     allowances established pursuant to section 201(a) for the 
     calendar year that is 3 years after the calendar year during 
     which the auction is conducted.
       (b) Second Period.--
       (1) In general.--For each of calendar years 2031 through 
     2050, the Administrator shall auction, in accordance with 
     paragraph (2), 1 percent of the quantity of emission 
     allowances established pursuant to section 201(a) for the 
     calendar year, to raise funds for deposit in the Fund.
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     the calendar year; and
       (ii) the interval between each auction is of equal 
     duration.

     SEC. 1703. DEPOSITS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to section 1702, immediately on receipt of 
     those proceeds, in the Fund.

     SEC. 1704. DISBURSEMENTS FROM FUND.

       No disbursements shall be made from the Fund, except 
     pursuant to an appropriation Act.

[[Page S5101]]

     SEC. 1705. USE OF FUNDS.

       (a) In General.--For each of calendar years 2012 through 
     2050, the amounts deposited into the Fund during the 
     preceding calendar year under section 1703 shall be made 
     available to pay the administrative costs of carrying out 
     this Act.
       (b) Treatment of Amounts in Fund.--Amounts in the Fund--
       (1) may be used as an offsetting collection available to 
     the Administrator, the Secretary of Agriculture, the 
     Secretary of Labor, the Secretary of the Interior, the 
     Secretary of Energy, the heads of other Federal departments 
     or agencies required to carry out activities under this Act, 
     the Board, or the Climate Change Technology Board to offset 
     expenses incurred, or amounts made available through an 
     appropriation Act for use, in carrying out this Act; and
       (2) shall remain available until expended.

   Subtitle B--Presidential Emergency Declarations and Proclamations

     SEC. 1711. EMERGENCY DECLARATION.

       (a) In General.--If the President determines that a 
     national security, energy security, or economic security 
     emergency exists, and that it is in the paramount interest of 
     the United States to modify any requirement under this Act to 
     minimize the effects of the emergency, the President may make 
     an emergency declaration.
       (b) Consultation.--In making an emergency declaration under 
     subsection (a), the President shall, to the maximum extent 
     practicable, consult with and take into consideration any 
     advice received from--
       (1) the National Security Advisor;
       (2) the Secretary of the Treasury;
       (3) the Secretary of Energy;
       (4) the Administrator;
       (5) relevant committees of Congress; and
       (6) the Board.

     SEC. 1712. PRESIDENTIAL PROCLAMATION.

       After making an emergency declaration under section 1711, 
     the President shall declare by proclamation each action 
     required to minimize the emergency.

     SEC. 1713. CONGRESSIONAL RESCISSION OR MODIFICATION.

       (a) Treatment of Proclamation.--A proclamation issued 
     pursuant to section 1712 shall be considered to be a final 
     action by the President.
       (b) Action by Congress.--Congress shall rescind or modify a 
     proclamation issued pursuant to section 1712, if necessary, 
     not later than 30 days after the date of issuance of the 
     proclamation.

     SEC. 1714. REPORT TO FEDERAL AGENCIES.

       Not later than 30 days after the date on which a 
     proclamation issued pursuant to section 1712 takes effect, 
     and every 30 days thereafter during the effective period of 
     the proclamation, the President shall submit to the head of 
     each appropriate Federal agency a report describing the 
     actions required to be carried out by the proclamation.

     SEC. 1715. TERMINATION.

       (a) In General.--Subject to subsection (b), a proclamation 
     issued pursuant to section 1712 shall terminate on the date 
     that is 180 days after the date on which the proclamation 
     takes effect.
       (b) Extension.--The President may request an extension of a 
     proclamation terminated under subsection (a), in accordance 
     with the requirements of this subtitle.
       (c) Congressional Approval.--Congress shall approve or 
     disapprove a request of the President under subsection (b) 
     not later than 30 days after the date of receipt of the 
     request.

     SEC. 1716. PUBLIC COMMENT.

       (a) In General.--During the 30-day period beginning on the 
     date on which a proclamation is issued pursuant to section 
     1712, the President shall accept public comments relating to 
     the proclamation.
       (b) Response.--Not later than 60 days after the date on 
     which a proclamation is issued, the President shall respond 
     to public comments received under subsection (a), including 
     by providing an explanation of--
       (1) the reasons for the relevant emergency declaration; and
       (2) the actions required by the proclamation.
       (c) No Impact on Effective Date.--Notwithstanding 
     subsections (a) and (b), a proclamation under section 1712 
     shall take effect on the date on which the proclamation is 
     issued.

     SEC. 1717. PROHIBITION ON DELEGATION.

       The President shall not delegate to any individual or 
     entity the authority--
       (1) to make a declaration under section 1711; or
       (2) to issue a proclamation under section 1712.

        Subtitle C--Administrative Procedure and Judicial Review

     SEC. 1721. REGULATORY PROCEDURES.

       (a) In General.--Except as provided in subsection (b), any 
     rule, requirement, regulation, method, standard, program, 
     determination, or final agency action made or promulgated 
     pursuant to this Act shall be subject to the regulatory 
     procedures described in subchapter II of chapter 5 of title 
     5, United States Code.
       (b) Exception.--Subsection (a) does not apply to the 
     establishment or any allocation of emission allowances under 
     this Act by the Administrator.

     SEC. 1722. ENFORCEMENT.

       (a) Violations.--
       (1) In general.--It shall be unlawful for any owner or 
     operator of a covered entity to violate any prohibition, 
     requirement, or other provision of this Act (including a 
     regulation promulgated pursuant to this Act).
       (2) Operation of covered entities.--The operation of any 
     covered entity in a manner that results in emissions of 
     greenhouse gas in excess of the number of emission allowances 
     submitted for compliance with section 202 by the covered 
     entity shall be considered to be a violation of this Act.
       (3) Treatment.--Each carbon dioxide equivalent of 
     greenhouse gas emitted by a covered entity in excess of the 
     number of emission allowances held by the covered entity 
     shall be considered to be a separate violation of this Act.
       (b) Enforcement.--
       (1) In general.--Each provision of this Act, and any 
     regulation promulgated pursuant to this Act, shall be fully 
     enforceable in accordance with sections 113, 303, and 304 of 
     the Clean Air Act (42 U.S.C. 7413, 7603, 7604).
       (2) Treatment.--For purposes of enforcement under this 
     subsection, all requirements under this Act shall be 
     considered to be requirements of the Clean Air Act (42 U.S.C. 
     7401 et seq.), and, for purposes of enforcement under section 
     304 of that Act (42 U.S.C. 7604), all requirements of this 
     Act shall be considered to be emission standards or 
     limitations under that Act (42 U.S.C. 7401 et seq.).
       (3) Mandatory duties.--Any provision of this Act relating 
     to a mandatory duty of the Administrator or any other Federal 
     official shall be fully enforceable in accordance with 
     section 304 of the Clean Air Act (42 U.S.C. 7604).
       (4) Jurisdiction of united states district courts.--Each 
     United States district court shall have jurisdiction to 
     compel agency action (including discretionary agency action) 
     required under this Act that, as determined by the United 
     States district court, has been unreasonably delayed.
       (c) Judicial Review.--
       (1) In general.--Any individual or entity may submit a 
     petition for judicial review of any regulation promulgated, 
     or final action carried out, by the Administrator or any 
     other Federal official pursuant to this Act.
       (2) Court jurisdiction.--
       (A) In general.--Subject to subparagraph (B), a petition 
     under paragraph (1) may be filed in the United States court 
     of appeals for the appropriate circuit.
       (B) Petitions against administrator.--A petition under 
     paragraph (1) relating to a regulation promulgated, or final 
     action carried out, by the Administrator shall be filed only 
     in the United States Court of Appeals for the District of 
     Columbia Circuit, in accordance with section 307(b) of the 
     Clean Air Act (42 U.S.C. 7607(b)).
       (3) Remedy.--
       (A) Correction of deficiencies.--Subject to subparagraph 
     (B), on a determination by the reviewing court that a final 
     agency action under this Act is arbitrary, capricious, or 
     unlawful, the court shall require the agency to correct each 
     deficiency identified by the court--
       (i) as expeditiously as practicable; and
       (ii) in no case later than the earlier of--

       (I) the date that is 1 year after the date on which the 
     court makes the determination; and
       (II) the applicable deadline under this Act for the 
     relevant original agency action.

       (B) Requirement.--In selecting a remedy for an arbitrary, 
     capricious, or unlawful action by the agency in carrying out 
     this Act, the reviewing court shall avoid vacating the action 
     if vacating the action could jeopardize the full and timely 
     achievement of the emission reductions required by this Act.
       (d) Litigation Costs.--A court of competent jurisdiction 
     may award costs of litigation (including reasonable attorney 
     and expert witness fees) for a civil action filed pursuant to 
     this section in accordance with section 307(f) of the Clean 
     Air Act (42 U.S.C. 7607(f)).

     SEC. 1723. POWERS OF ADMINISTRATOR.

       The Administrator shall have the same powers and 
     authorities provided under sections 114 and 307(a) of the 
     Clean Air Act (42 U.S.C. 7414, 7607(a)) in carrying out, 
     administering, and enforcing this Act.

                      Subtitle D--State Authority

     SEC. 1731. RETENTION OF STATE AUTHORITY.

       (a) In General.--Except as provided in subsection (b), 
     nothing in this Act precludes, diminishes, or abrogates the 
     right of any State to adopt or enforce--
       (1) any standard, limitation, or prohibition, or cap 
     relating to emissions of greenhouse gas; or
       (2) any requirement relating to control, abatement, 
     mitigation, or avoidance of emissions of greenhouse gas.
       (b) Exception.--Notwithstanding subsection (a), no State 
     may adopt a standard, limitation, prohibition, cap, or 
     requirement that is less stringent than the applicable 
     standard, limitation, prohibition, or requirements under this 
     Act.

                      Subtitle E--Tribal Authority

     SEC. 1741. TRIBAL AUTHORITY.

       For the purposes of this Act, the Administrator may treat 
     any Indian tribe as a State in accordance with section 301(d) 
     of the Clean Air Act (42 U.S.C. 7601(d)).

                       Subtitle F--Clean Air Act

     SEC. 1751. INTEGRATION.

       (a) Report.--Not later than 2 years after the date of 
     enactment of this Act, the President shall submit to Congress 
     a report describing any direct regulation of carbon dioxide 
     emissions that has occurred or may occur under the Clean Air 
     Act (42 U.S.C. 7401 et seq.).

[[Page S5102]]

       (b) Recommendations.--The report shall include 
     recommendations of the President to ensure efficiency and 
     certainty in the regulation of carbon dioxide emissions by 
     the Federal Government.

           Subtitle G--State-Federal Interaction and Research

     SEC. 1761. STUDY AND RESEARCH.

       (a) In General.--The Administrator shall enter into an 
     arrangement with the National Academy of Sciences or an 
     institution of higher education or collaborative of such 
     institutions under which the National Academy of Sciences or 
     institutions shall conduct a study of--
       (1) the reasonably foreseeable economic and environmental 
     benefits and costs to a State and the United States as a 
     result of the operation by the State of a cap-and-trade 
     program for greenhouse gases, in addition to the Federal 
     programs under this Act;
       (2) the reasonably foreseeable economic and environmental 
     benefits and costs to a State and the United States as a 
     result of the operation by the State, in addition to the 
     Federal programs under this Act, of a program that achieves 
     greenhouse gas reductions through mechanisms other than a 
     cap-and-trade program, including--
       (A) efficiency standards for vehicles, buildings, and 
     appliances;
       (B) renewable electricity standards;
       (C) land use planning and transportation policy; and
       (D) fuel carbon intensity standards; and
       (3) the reasonably foreseeable effect on emission allowance 
     prices and price volatility, costs to businesses and 
     consumers (including low-income consumers), economic growth, 
     and total cumulative emissions associated with each State 
     program described in paragraphs (1) and (2), as compared to a 
     national greenhouse gas control policy limited to the Federal 
     programs under this Act.
       (b) Great Lakes Center for Green Technology 
     Manufacturing.--
       (1) Designation.--The Administrator, in cooperation with 
     the Secretary of Commerce and the Secretary of Energy, shall 
     designate the University of Toledo as the ``Great Lakes 
     Center for Green Technology Manufacturing'', to recognize the 
     importance of research, development, and deployment of 
     manufacturing technology needed to reduce worldwide 
     greenhouse gas emissions.
       (2) Purposes.--The purposes of the Great Lakes Center for 
     Green Technology Manufacturing shall be--
       (A) to carry out activities to increase domestic production 
     of renewable energy technology and components;
       (B) to develop, or assist in the development and 
     commercialization of, advanced manufacturing processes, 
     materials, and infrastructure for a low-carbon economy; and
       (C) to assist the transition of historically manufacturing-
     based economies to the production of renewable energy 
     technologies.
       (3) Funding.--There are authorized to be appropriated such 
     sums as are necessary to carry out this subsection.
       (c) Proceeds From Auctions.--None of the proceeds from any 
     auction conducted under this Act may be obligated after 
     fiscal year 2047 except as provided in an appropriations Act.
                                 ______
                                 
  SA 4826. Mr. REID (for Mr. Biden) proposed an amendment to amendment 
SA 4825 proposed by Mrs. Boxer (for herself, Mr. Warner, and Mr. 
Lieberman) to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; as follows:

       At the end of title XIII, insert the following:

     SEC. 1334. SENSE OF SENATE REGARDING INTERNATIONAL 
                   NEGOTIATIONS TO ADDRESS GLOBAL CLIMATE CHANGE.

       (a) Findings.--The Senate makes the following findings:
       (1) There is a scientific consensus, as established by the 
     Intergovernmental Panel on Climate Change and confirmed by 
     the National Academy of Sciences, that the continued buildup 
     of anthropogenic greenhouse gases in the atmosphere threatens 
     the stability of the global climate.
       (2) The 2007 Fourth Assessment Report of the 
     Intergovernmental Panel on Climate Change concluded that most 
     of the global warming observed since the mid-20th century is 
     very likely due to anthropogenic greenhouse gas emissions and 
     that anthropogenic warming is strongly linked to many 
     observed physical and biological impacts.
       (3) There are significant long-term risks to the economy 
     and the environment of the United States from the temperature 
     increases and climatic disruptions that are projected to 
     result from increased greenhouse gas concentrations.
       (4) The potential impacts of global climate change, 
     including long-term drought, famine, mass migration, and 
     abrupt climatic shifts, may lead to international tensions 
     and instability in regions affected and, therefore, have 
     implications for the national security interests of the 
     United States.
       (5) The United States has the largest economy in the world 
     and is also the largest historical emitter of greenhouse 
     gases.
       (6) The greenhouse gas emissions of the United States are 
     projected to continue to rise.
       (7) The greenhouse gas emissions of some developing 
     countries are rising more rapidly than the emissions of the 
     United States and will soon surpass the greenhouse gas 
     emissions of the United States and other developed countries.
       (8) Reducing greenhouse gas emissions to the levels 
     necessary to avoid serious climatic disruption requires the 
     introduction of new energy technologies and other climate-
     friendly technologies, the use of which results in low or no 
     emissions of greenhouse gases or in the capture and storage 
     of greenhouse gases.
       (9) The 2006 Stern Review on the Economics of Climate 
     Change commissioned by the United Kingdom and the 2008 World 
     Economic Outlook from the International Monetary Fund each 
     concluded that the economic costs of addressing climate 
     change are limited.
       (10) The development and sale of climate-friendly 
     technologies in the United States and internationally present 
     economic opportunities for workers and businesses in the 
     United States.
       (11) Climate-friendly technologies can improve air quality 
     by reducing harmful pollutants from stationary and mobile 
     sources and can enhance energy security by reducing reliance 
     on imported oil, diversifying energy sources, and reducing 
     the vulnerability of energy delivery infrastructure.
       (12) Other industrialized countries are undertaking 
     measures to reduce greenhouse gas emissions, which provides 
     the industries in those countries with a competitive 
     advantage in the growing global market for climate-friendly 
     technologies.
       (13) Efforts to limit emissions growth in developing 
     countries in a manner that is consistent with the development 
     needs of those countries could establish significant markets 
     for climate-friendly technologies and contribute to 
     international efforts to address climate change.
       (14) The national security of the United States will 
     increasingly depend on the deployment of diplomatic, 
     military, scientific, and economic resources for solving the 
     problem of the overreliance of the United States and the 
     world on high-carbon energy.
       (15) The United States is a party to the United Nations 
     Framework Convention on Climate Change, done at New York May 
     9, 1992, and entered into force March 21, 1994 (in this 
     preamble referred to as the ``Convention'').
       (16) The Convention sets a long-term objective of 
     stabilizing greenhouse gas concentrations in the atmosphere 
     at a level that would prevent dangerous anthropogenic 
     interference with the climate system.
       (17) The Convention establishes that parties bear ``common 
     but differentiated responsibilities'' for efforts to achieve 
     the objective of stabilizing greenhouse gas concentrations.
       (18) At the December 2007 United Nations Climate Change 
     Conference in Bali, the United States and other parties to 
     the Convention adopted the Bali Action Plan with the aim of 
     reaching a new global agreement in 2009.
       (19) The Bali Action Plan calls for a shared vision on 
     long-term cooperative action, increased mitigation efforts 
     from developed and developing countries that are measurable, 
     reportable, and verifiable, and support for developing 
     countries in addressing technology transfers, adaptation, 
     financing, deforestation, and capacity-building.
       (20) The Major Economies Process on Energy Security and 
     Climate Change, initiated by President George W. Bush, seeks 
     a consensus among the countries with the world's major 
     economies on how those countries can contribute to a new 
     agreement under the Convention.
       (21) In April 2008, President Bush called for a ``binding 
     international agreement'' with participation by all countries 
     with major economies in ``goals and policies that reflect 
     their unique energy resources and economic circumstances''.
       (22) An effective global effort to address climate change 
     must provide for commitments and actions by all countries 
     that are major emitters of greenhouse gases, developed and 
     developing alike, and the widely varying circumstances among 
     developed and developing countries may require that such 
     commitments and actions vary.
       (23) The latest scientific evidence suggests that 
     anthropogenic climate change is increasing and the United 
     States has supported the goal of achieving a new 
     international agreement during 2009, both lending urgency to 
     the need for renewed United States leadership in the effort 
     to counter global climate change.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the United States should act to reduce the health, 
     environmental, economic, and national security risks posed by 
     global climate change and to foster sustained economic growth 
     through a new generation of technologies by participating in 
     negotiations under the United Nations Framework Convention on 
     Climate Change, done at New York May 9, 1992, and entered 
     into force March 21, 1994, and leading efforts in other 
     international fora, with the objective of securing United 
     States participation in binding agreements, consistent with 
     the Bali Action Plan, 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 greenhouse gases, consistent with the 
     principle of common but differentiated responsibilities;

[[Page S5103]]

       (C) establish flexible international mechanisms to minimize 
     the cost of efforts by participating countries; and
       (D) achieve a significant long-term reduction in global 
     greenhouse gas emissions; and
       (2) the President should support the establishment of a 
     bipartisan Senate observer group, the members of which should 
     be designated by the chairman and ranking member of the 
     Committee on Foreign Relations of the Senate, to--
       (A) monitor any international negotiations on climate 
     change; and
       (B) ensure that the responsibility of the Senate under 
     article II, section 2 of the Constitution of the United 
     States to provide advice and consent to the President with 
     respect to treaties be carried out in a manner to facilitate 
     timely consideration of any applicable treaty submitted to 
     the Senate.
                                 ______
                                 
  SA 4827. Mr. REID (for Mr. Biden) proposed an amendment to amendment 
SA 4826 proposed by Mr. Reid (for Mr. Biden) to the amendment SA 4825 
proposed by Mrs. Boxer (for herself, Mr. Warner, and Mr. Lieberman) to 
the bill S. 3036, to direct the Administrator of the Environment 
Protection Agency to establish a program to decrease emissions of 
greenhouse gases, and for other purposes; as follows:

       In the amendment, strike all after the word ``SEC'' on line 
     2 and insert the following:

     1334. SENSE OF SENATE REGARDING INTERNATIONAL NEGOTIATIONS TO 
                   ADDRESS GLOBAL CLIMATE CHANGE.

       (a) Findings.--The Senate makes the following findings:
       (1) There is a scientific consensus, as established by the 
     Intergovernmental Panel on Climate Change and confirmed by 
     the National Academy of Sciences, that the continued buildup 
     of anthropogenic greenhouse gases in the atmosphere threatens 
     the stability of the global climate.
       (2) The 2007 Fourth Assessment Report of the 
     Intergovernmental Panel on Climate Change concluded that most 
     of the global warming observed since the mid-20th century is 
     very likely due to anthropogenic greenhouse gas emissions and 
     that anthropogenic warming is strongly linked to many 
     observed physical and biological impacts.
       (3) There are significant long-term risks to the economy 
     and the environment of the United States from the temperature 
     increases and climatic disruptions that are projected to 
     result from increased greenhouse gas concentrations.
       (4) The potential impacts of global climate change, 
     including long-term drought, famine, mass migration, and 
     abrupt climatic shifts, may lead to international tensions 
     and instability in regions affected and, therefore, have 
     implications for the national security interests of the 
     United States.
       (5) The United States has the largest economy in the world 
     and is also the largest historical emitter of greenhouse 
     gases.
       (6) The greenhouse gas emissions of the United States are 
     projected to continue to rise.
       (7) The greenhouse gas emissions of some developing 
     countries are rising more rapidly than the emissions of the 
     United States and will soon surpass the greenhouse gas 
     emissions of the United States and other developed countries.
       (8) Reducing greenhouse gas emissions to the levels 
     necessary to avoid serious climatic disruption requires the 
     introduction of new energy technologies and other climate-
     friendly technologies, the use of which results in low or no 
     emissions of greenhouse gases or in the capture and storage 
     of greenhouse gases.
       (9) The 2006 Stern Review on the Economics of Climate 
     Change commissioned by the United Kingdom and the 2008 World 
     Economic Outlook from the International Monetary Fund each 
     concluded that the economic costs of addressing climate 
     change are limited.
       (10) The development and sale of climate-friendly 
     technologies in the United States and internationally present 
     economic opportunities for workers and businesses in the 
     United States.
       (11) Climate-friendly technologies can improve air quality 
     by reducing harmful pollutants from stationary and mobile 
     sources and can enhance energy security by reducing reliance 
     on imported oil, diversifying energy sources, and reducing 
     the vulnerability of energy delivery infrastructure.
       (12) Other industrialized countries are undertaking 
     measures to reduce greenhouse gas emissions, which provides 
     the industries in those countries with a competitive 
     advantage in the growing global market for climate-friendly 
     technologies.
       (13) Efforts to limit emissions growth in developing 
     countries in a manner that is consistent with the development 
     needs of those countries could establish significant markets 
     for climate-friendly technologies and contribute to 
     international efforts to address climate change.
       (14) The national security of the United States will 
     increasingly depend on the deployment of diplomatic, 
     military, scientific, and economic resources for solving the 
     problem of the overreliance of the United States and the 
     world on high-carbon energy.
       (15) The United States is a party to the United Nations 
     Framework Convention on Climate Change, done at New York May 
     9, 1992, and entered into force March 21, 1994 (in this 
     preamble referred to as the ``Convention'').
       (16) The Convention sets a long-term objective of 
     stabilizing greenhouse gas concentrations in the atmosphere 
     at a level that would prevent dangerous anthropogenic 
     interference with the climate system.
       (17) The Convention establishes that parties bear ``common 
     but differentiated responsibilities'' for efforts to achieve 
     the objective of stabilizing greenhouse gas concentrations.
       (18) At the December 2007 United Nations Climate Change 
     Conference in Bali, the United States and other parties to 
     the Convention adopted the Bali Action Plan with the aim of 
     reaching a new global agreement in 2009.
       (19) The Bali Action Plan calls for a shared vision on 
     long-term cooperative action, increased mitigation efforts 
     from developed and developing countries that are measurable, 
     reportable, and verifiable, and support for developing 
     countries in addressing technology transfers, adaptation, 
     financing, deforestation, and capacity-building.
       (20) The Major Economies Process on Energy Security and 
     Climate Change, initiated by President George W. Bush, seeks 
     a consensus among the countries with the world's major 
     economies on how those countries can contribute to a new 
     agreement under the Convention.
       (21) In April 2008, President Bush called for a ``binding 
     international agreement'' with participation by all countries 
     with major economies in ``goals and policies that reflect 
     their unique energy resources and economic circumstances''.
       (22) An effective global effort to address climate change 
     must provide for commitments and actions by all countries 
     that are major emitters of greenhouse gases, developed and 
     developing alike, and the widely varying circumstances among 
     developed and developing countries may require that such 
     commitments and actions vary.
       (23) The latest scientific evidence suggests that 
     anthropogenic climate change is increasing and the United 
     States has supported the goal of achieving a new 
     international agreement during 2009, both lending urgency to 
     the need for renewed United States leadership in the effort 
     to counter global climate change.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the United States should act to reduce the health, 
     environmental, economic, and national security risks posed by 
     global climate change and to foster sustained economic growth 
     through a new generation of technologies by participating in 
     negotiations under the United Nations Framework Convention on 
     Climate Change, done at New York May 9, 1992, and entered 
     into force March 21, 1994, and leading efforts in other 
     international fora, with the objective of securing United 
     States participation in binding agreements, consistent with 
     the Bali Action Plan, 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 greenhouse gases, consistent 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 
     greenhouse gas emissions; and
       (2) the President should support the establishment of a 
     bipartisan Senate observer group, the members of which should 
     be designated by the chairman and ranking member of the 
     Committee on Foreign Relations of the Senate, to--
       (A) monitor any international negotiations on climate 
     change; and
       (B) ensure that the responsibility of the Senate under 
     article II, section 2 of the Constitution of the United 
     States to provide advice and consent to the President with 
     respect to treaties be carried out in a manner to facilitate 
     timely consideration of any applicable treaty submitted to 
     the Senate.
       The provisions of this section shall become effective in 7 
     days after enactment.
                                 ______
                                 
  SA 4828. Mr. REID proposed an amendment to the bill S. 3036, to 
direct the Administrator of the Environmental Protection Agency to 
establish a program to decrease emissions of greenhouse gases, and for 
other purposes; as follows:

       At the end of the bill, add the following:
       The provision of this Act shall become effective 5 days 
     after enactment.
                                 ______
                                 
  SA 4829. Mr. REID proposed an amendment to amendment SA 4828 proposed 
by Mr. Reid to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; as follows:

       In the amendment, strike ``5'' and insert ``4''.
                                 ______
                                 
  SA 4830. Mr. REID proposed an amendment to the bill S. 3036, to 
direct the Administrator of the Environmental Protection Agency to 
establish a program to decrease emissions of greenhouse gases, and for 
other purposes; as follows:


[[Page S5104]]


       At the end, insert the following:
       This section shall become effective 3 days after enactment 
     of the bill.
                                 ______
                                 
  SA 4831. Mr. REID proposed an amendment to amendment SA 4830 proposed 
by Mr. Reid to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; as follows:

       On line 2, strike ``3'' and insert ``2''.
                                 ______
                                 
  SA 4832. Mr. REID proposed an amendment to amendment SA 4831 proposed 
by Mr. Reid to the amendment SA 4830 proposed by Mr. Reid to the bill 
S. 3036, to direct the Administrator of the Environmental Protection 
Agency to establish a program to decrease emissions of greenhouse 
gases, and for other purposes; as follows:

       In the amendment strike ``2'' and insert ``1''.
                                 ______
                                 
  SA 4833. Mr. KERRY (for himself, Mrs. Feinstein, and Ms. Snowe) 
submitted an amendment intended to be proposed by him to the bill S. 
3036, to direct the Administrator of the Environmental Protection 
Agency to establish a program to decrease emissions of greenhouse 
gases, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 15, line 2, strike ``and''.
       On page 15, line 12, strike the period and insert ``; 
     and''.
       On page 15, between lines 12 and 13, insert the following:
       (25) a Federal climate program for the United States must 
     respond in a timely fashion to the most up-to-date science on 
     climate change, including scientific findings on the 
     reductions in United States greenhouse gas emissions needed 
     to avert the worst effects of climate change.
       On page 471, strike lines 3 through 5 and insert the 
     following:
       (1) consider and incorporate existing findings and reports, 
     including the most recent assessments from the U.S. Global 
     Change Research Program and the Intergovernmental Panel on 
     Climate Change; and
       On page 471, line 24, strike ``and'' at the end.
       On page 472, line 7, strike the period at the end and 
     insert ``; and''.
       On page 472, between lines 7 and 8, insert the following:
       (G) the potential for abrupt changes in climate that occur 
     so rapidly or unexpectedly that human or natural systems have 
     difficulty adapting.
       On page 475, between lines 5 and 6, insert the following:
       (d) Recommendations on Global and United States Emission 
     Budgets.--In addition to and taking into account the 
     information required to be included under subsections (b) and 
     (c), each report required to be submitted under subsection 
     (a) shall include recommendations regarding--
       (1) a global cumulative emission budget for the period 
     beginning on the date of submission of the first report under 
     subsection (a) and ending on December 31, 2050, that would 
     likely achieve the goals of--
       (A) preventing an increase in global average temperature of 
     more than 2 degrees Celsius above the preindustrial average; 
     or
       (B) preventing an alternate temperature increase above the 
     preindustrial average, if the Academy finds that such an 
     alternate average temperature is the threshold above which 
     warming is likely to cause dangerous interference with the 
     climate system; and
       (2) a range for the emission budget of the United States, 
     for the period described in paragraph (1), that--
       (A) is realistically consistent with remaining within the 
     global cumulative emission budget recommended under paragraph 
     (1); and
       (B) takes into consideration emission reductions and other 
     commitments by industrialized and developing nations under 
     the United Nations Framework Convention on Climate Change, 
     done at New York on May 9, 1992.
       Beginning on page 475, strike line 6 and all that follows 
     through page 478, line 17, and insert the following:

     SEC. 1602. PRESIDENTIAL RECOMMENDATIONS.

       (a) In General.--Not later than September 30, 2018, and 
     every 3 years thereafter, the Administrator shall make public 
     and submit to the President a report making legislative 
     recommendations to achieve cumulative United States emission 
     reductions through calendar year 2050 for the President to 
     transmit to Congress.
       (b) Coordination With Other Agencies.--In developing those 
     recommendations, the Administrator shall coordinate with--
       (1) the Secretary of Energy;
       (2) the Secretary of the Treasury;
       (3) the Secretary of Commerce;
       (4) the Secretary of the Interior; and
       (5) other relevant Federal officials, as determined by the 
     Administrator, appointed to a position at level I of the 
     Executive Schedule and listed in section 5312 of title 5, 
     United States Code.
       (c) Basis.--The recommendations submitted pursuant to 
     subsection (a) shall be based on the most recent reports 
     submitted by the National Academy of Sciences pursuant to 
     section 1601.
       (d) Inclusions.--The report shall include--
       (1) recommendations for amendments to this Act to achieve 
     cumulative United States emission reductions through calendar 
     year 2050 that are realistically consistent with remaining 
     within the global cumulative emission budget described in 
     section 1601(d)(1), including measures that would--
       (A) adjust the definition of the term ``covered entity'' 
     under this Act;
       (B) adjust the scope of the compliance obligation 
     established by section 202;
       (C) adjust quantities of emission allowances available in 1 
     or more calendar years;
       (D) establish other policies for reducing greenhouse gas 
     emissions in addition to the policies established by this 
     Act;
       (E) establish policies for reducing nationwide emissions 
     into the atmosphere of sulfur dioxide, nitrogen oxides, and 
     mercury in excess of the reductions resulting from the 
     implementation of this Act; and
       (F) prevent or abate any direct, indirect, or cumulative 
     increases in covered pollutants resulting from the use and 
     trading of emission allowances or from transformations in 
     technologies or markets; and
       (2) safeguards to achieve all the purposes of this Act in 
     accordance with paragraph (1), including--
       (A) the accomplishment of robust growth and the creation of 
     new jobs in the United States economy; and
       (B) the protection of United States consumers, especially 
     consumers in greatest need, from hardship.
       (e) Consistency With Reports.--The Administrator shall 
     include with each submission of recommendations made pursuant 
     to subsection (a) an explanation for each significant 
     inconsistency between the recommendations and the most recent 
     reports submitted by the National Academy of Sciences 
     pursuant to section 1601.
       (f) Presidential Recommendation to Congress.--Not later 
     than January 1, 2019, and every 3 years thereafter, the 
     President shall submit to Congress the text of proposed 
     legislation based on the recommendations submitted to the 
     President pursuant to subsection (a).
       (g) Ongoing Evaluation of Impacts.--Not later than 90 days 
     after the date of enactment of this Act, the Administrator 
     shall establish an advisory committee that includes 
     representatives of affected communities to advise the 
     Administrator on the implementation of Executive Order No. 
     12898 (59 Fed. Reg. 7629; relating to Federal actions to 
     address environmental justice in minority populations and 
     low-income populations) in implementing this Act.
       (h) Effect on Other Authority.--Nothing in this title 
     limits the authority of the Administrator, a State, or any 
     person to use any authority under this Act or any other law 
     to promulgate, adopt, or enforce any regulation.

     SEC. 1603. CONGRESSIONAL REVIEW OF PRESIDENTIAL 
                   RECOMMENDATIONS.

       (a) Definition of Implementing Legislation.--In this 
     section, the term ``implementing legislation'' means only 
     legislation introduced in the period beginning on the date on 
     which recommendations for legislation are submitted to 
     Congress under section 1602(f), and every third year 
     thereafter, and ending 60 days after such submission 
     (excluding days either House of Congress is adjourned for 
     more than 3 days during a session of Congress), which 
     proposes the legislative changes recommended by the President 
     under section 1602.
       (b) Referral.--Implementing legislation described in 
     subsection (a) shall be referred immediately to the Committee 
     on Energy and Commerce of the House of Representatives and 
     the Committee on Environment and Public Works of the Senate.
       (c) Consideration.--
       (1) In general.--Implementing legislation shall be 
     considered by the committee to which the legislation is 
     referred under subsection (b).
       (2) Senate procedure.--In the Senate--
       (A) a committee to which legislation is referred under 
     subsection (b) may be discharged from further consideration 
     of the implementing legislation at the end of the period of 
     30 calendar days after the introduction of the legislation, 
     upon a petition supported in writing by 30 Members of the 
     Senate; and
       (B) after that 30-calendar-day period, the legislation 
     shall be placed on the calendar.
       (d) Motion to Proceed in Senate.--
       (1) In general.--In the Senate, after the committee to 
     which implementing legislation is referred under subsection 
     (b) has reported the legislation or been discharged under 
     subsection (c)(2)(A) from further consideration of the 
     legislation, it shall be at any time thereafter in order 
     (even though a previous motion to the same effect has been 
     disagreed to) for a motion to proceed to the consideration of 
     the implementing legislation.
       (2) Debate and postponement.--A motion to proceed described 
     in paragraph (1) shall not be debatable or subject to a 
     motion to postpone, or to a motion to proceed to the 
     consideration of other business.
       (3) Motion to reconsider.--A motion to reconsider the vote 
     by which a motion to proceed under paragraph (1) is agreed to 
     or disagreed to shall not be in order.

[[Page S5105]]

       (4) Agreement.--If a motion to proceed to the consideration 
     of the implementing legislation is agreed to, the 
     implementing legislation shall remain the unfinished business 
     of the Senate until disposed of.
       (e) Procedure in House of Representatives.--In the House of 
     Representatives--
       (1) the committee to which implementing legislation is 
     referred under subsection (b) may be discharged from further 
     consideration of the implementing legislation--
       (A) at the end of the 60-calendar-day period beginning on 
     the date of introduction of the legislation in the House of 
     Representatives; and
       (B) upon a petition supported in writing by 130 Members of 
     the House of Representatives; and
       (C) the implementing legislation shall be placed on the 
     calendar, and called up on the floor of the House of 
     Representatives, subject to the rules of the House of 
     Representatives.
       (f) Effect of Section on Congressional Rules.--This 
     section--
       (1) is enacted by Congress as an exercise of the rulemaking 
     power of the Senate and House of Representatives, 
     respectively;
       (2) as such rulemaking power--
       (A) is deemed to be part of the rules of each of the Senate 
     and House of Representatives, respectively;
       (B) shall be applicable only with respect to the procedure 
     to be followed in the Senate or House of Representatives, 
     respectively, in the case of implementing legislation 
     described in subsection (a); and
       (C) supersedes other rules only to the extent that the 
     section is inconsistent with those other rules; and
       (3) is enacted by Congress with full recognition of the 
     constitutional right of either the Senate or House of 
     Representatives to change the rules (so far as relating to 
     the procedure of that House) at any time, in the same manner, 
     and to the same extent as in the case of any other rule of 
     that House.
                                 ______
                                 
  SA 4834. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 63, between lines 7 and 8, insert the following:

     SEC. 127. FUTUREGEN COOPERATIVE AGREEMENT.

       (a) In General.--Subject to subsection (b), the Secretary 
     of Energy shall continue the cooperative agreement numbered 
     DE-FC 26-06NT42073, as in effect on the date of enactment of 
     this Act, through March 30, 2009.
       (b) Administration.--During the period beginning on the 
     date of enactment of this Act and ending on March 30, 2009--
       (1) the agreement described in subsection (a) may not be 
     terminated except by the mutual consent of the parties to the 
     agreement; and
       (2) funds may be expended under the agreement only to 
     complete and provide information and documentation to the 
     Department of Energy.
                                 ______
                                 
  SA 4835. Mr. LAUTENBERG submitted an amendment intended to be 
proposed by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. PROTECTION OF SCIENTIFIC CREDIBILITY, INTEGRITY, 
                   AND COMMUNICATION.

       (a) Short Title.--This section may be cited as the 
     ``Protect Science Act of 2008''.
       (b) Definitions.--In this section:
       (1) Agency.--The term ``agency'' has the meaning given 
     under section 551(1) of title 5, United States Code.
       (2) Scientific.--The term ``scientific'' means relating to 
     the natural, physical, environmental, earth, ocean, climate, 
     atmospheric, mathematical, medical, or social sciences or 
     engineering.
       (c) Findings and Purpose.--
       (1) Findings.--Congress finds the following:
       (A) Scientific research and innovation is a principal 
     component to American prosperity.
       (B) There have been numerous cases where Federal scientific 
     studies and reports have been altered by political appointees 
     and Federal employees to misrepresent or omit information.
       (C) Political interference has also resulted in--
       (i) the censorship of scientific information and documents 
     requested by Congress;
       (ii) the delayed release of Government science reports; and
       (iii) the denial of media access to scientific researchers.
       (D) Such political interference with science in the Federal 
     agencies undermines the credibility, integrity, and 
     consistency of the United States Government.
       (2) Purpose.--The purpose of this section is to protect 
     scientific credibility, integrity, and communication in 
     research and policymaking.
       (d) Prohibition of Political Interference With Science.--
       (1) In general.--Subchapter V of chapter 73 of title 5, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 7354. Interference with science

       ``(a) Definitions.--In this section--
       ``(1) the term `censorship' means improper prevention of 
     the dissemination of valid and nonclassified scientific 
     findings;
       ``(2) the term `scientific' means relating to the natural, 
     physical, environmental, earth, ocean, climate, atmospheric, 
     mathematical, medical, or social sciences or engineering; and
       ``(3) the term `tampering' means improperly altering or 
     obstructing so as to substantially distort, or directing 
     others to do so.
       ``(b) In General.--An employee may not engage in any of the 
     following:
       ``(1) Tampering with the conduct or findings of federally 
     funded scientific research or analysis.
       ``(2) Censorship of findings of federally funded scientific 
     research or analysis.
       ``(3) Directing the dissemination of scientific information 
     known by the directing employee to be false or misleading.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 73 of title 5, is amended by inserting 
     after the item relating to section 7353 the following:

``7354. Interference with science.''.
       (e) Publication Requirement Relating to Scientific Studies 
     and Reports.--
       (1) Definition.--In this subsection, the term ``political 
     appointee'' means an individual who holds a position that--
       (A) requires appointment by the President, by and with the 
     advice and consent of the Senate;
       (B) is within the Executive Office of the President;
       (C) is on the Executive Schedule under subchapter II of 
     chapter 53 of title 5, United States Code;
       (D) is a Senior Executive Service position as defined under 
     section 3132 (2) of title 5, United States Code, and not a 
     career reserved position as defined under paragraph (8) of 
     that section; or
       (E) is in the executive branch of the Government of a 
     confidential or policy-determining character under schedule C 
     of subpart C of part 213 of title 5 of the Code of Federal 
     Regulations.
       (2) Requirements.--
       (A) In general.--Not later than 48 hours after an agency 
     publishes a scientific study or report, including a summary, 
     synthesis, or analysis of a scientific study or report, that 
     has been modified to incorporate oral or written comments by 
     a political appointee that change the force, meaning, 
     emphasis, conclusions, findings, or recommendations of the 
     scientific or technical component of the study or report, the 
     head of that agency shall--
       (i) make available on a departmental or agency website, and 
     on a public docket, if any, that is accessible by the 
     public--

       (I) the final version by the principal scientific 
     investigators before review;
       (II) the final version as published by the agency; and
       (III) a version making a comparison of the versions 
     described under subclauses (I) and (II), that identifies--

       (aa) any modifications; and
       (bb) the text making those modifications;
       (ii) identify any political appointee who made those 
     comments; and
       (iii) provide uniform resource locator links on that 
     website to both versions and related publications.
       (B) Printed publications.--The head of each agency shall 
     ensure that the printed publication of any summary, 
     synthesis, or analysis of a scientific study or report 
     described under subparagraph (A) shall include a reference to 
     the website described under that paragraph.
       (3) Format and ease of comparison.--The versions of any 
     study or report described under paragraph (2) shall be made 
     available--
       (A) in a format that is generally available to the public; 
     and
       (B) in the same format and accessible on the same page with 
     equal prominence, or in any other manner that facilitates 
     comparison of the 2 versions.
       (f) State of Scientific Integrity Report.--Not later than 1 
     year after the date of enactment of this Act, and each year 
     thereafter, the Comptroller General shall submit a report to 
     Congress on compliance with the requirements of section 7354 
     of title 5, United States Code, (as added by subsection (d) 
     of this section) and section (e) of this section.
                                 ______
                                 
  SA 4836. Mr. BIDEN (for himself, Mr. Lugar, Mr. Kerry, Mr. Warner, 
Mr. Menendez, Ms. Snowe, Mr. Cardin, Mr. Casey, Mr. Bayh, Ms. Collins, 
Mr. Obama, Mr. Webb, Mr. Feingold, Mr. Whitehouse, Mr. Nelson, of 
Florida, Mr. Bingaman, and Mr. McCain) submitted an amendment intended 
to be proposed by him to the bill S. 3036, to direct the Administrator 
of the Environmental Protection Agency to establish a program to 
decrease emissions of greenhouse gases, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of title XIII, insert the following:

     SEC. 1334. SENSE OF SENATE REGARDING INTERNATIONAL 
                   NEGOTIATIONS TO ADDRESS GLOBAL CLIMATE CHANGE.

       (a) Findings.--The Senate makes the following findings:

[[Page S5106]]

       (1) There is a scientific consensus, as established by the 
     Intergovernmental Panel on Climate Change and confirmed by 
     the National Academy of Sciences, that the continued buildup 
     of anthropogenic greenhouse gases in the atmosphere threatens 
     the stability of the global climate.
       (2) The 2007 Fourth Assessment Report of the 
     Intergovernmental Panel on Climate Change concluded that most 
     of the global warming observed since the mid-20th century is 
     very likely due to anthropogenic greenhouse gas emissions and 
     that anthropogenic warming is strongly linked to many 
     observed physical and biological impacts.
       (3) There are significant long-term risks to the economy 
     and the environment of the United States from the temperature 
     increases and climatic disruptions that are projected to 
     result from increased greenhouse gas concentrations.
       (4) The potential impacts of global climate change, 
     including long-term drought, famine, mass migration, and 
     abrupt climatic shifts, may lead to international tensions 
     and instability in regions affected and, therefore, have 
     implications for the national security interests of the 
     United States.
       (5) The United States has the largest economy in the world 
     and is also the largest historical emitter of greenhouse 
     gases.
       (6) The greenhouse gas emissions of the United States are 
     projected to continue to rise.
       (7) The greenhouse gas emissions of some developing 
     countries are rising more rapidly than the emissions of the 
     United States and will soon surpass the greenhouse gas 
     emissions of the United States and other developed countries.
       (8) Reducing greenhouse gas emissions to the levels 
     necessary to avoid serious climatic disruption requires the 
     introduction of new energy technologies and other climate-
     friendly technologies, the use of which results in low or no 
     emissions of greenhouse gases or in the capture and storage 
     of greenhouse gases.
       (9) The 2006 Stern Review on the Economics of Climate 
     Change commissioned by the United Kingdom and the 2008 World 
     Economic Outlook from the International Monetary Fund each 
     concluded that the economic costs of addressing climate 
     change are limited.
       (10) The development and sale of climate-friendly 
     technologies in the United States and internationally present 
     economic opportunities for workers and businesses in the 
     United States.
       (11) Climate-friendly technologies can improve air quality 
     by reducing harmful pollutants from stationary and mobile 
     sources and can enhance energy security by reducing reliance 
     on imported oil, diversifying energy sources, and reducing 
     the vulnerability of energy delivery infrastructure.
       (12) Other industrialized countries are undertaking 
     measures to reduce greenhouse gas emissions, which provides 
     the industries in those countries with a competitive 
     advantage in the growing global market for climate-friendly 
     technologies.
       (13) Efforts to limit emissions growth in developing 
     countries in a manner that is consistent with the development 
     needs of those countries could establish significant markets 
     for climate-friendly technologies and contribute to 
     international efforts to address climate change.
       (14) The national security of the United States will 
     increasingly depend on the deployment of diplomatic, 
     military, scientific, and economic resources for solving the 
     problem of the overreliance of the United States and the 
     world on high-carbon energy.
       (15) The United States is a party to the United Nations 
     Framework Convention on Climate Change, done at New York May 
     9, 1992, and entered into force March 21, 1994 (in this 
     preamble referred to as the ``Convention'').
       (16) The Convention sets a long-term objective of 
     stabilizing greenhouse gas concentrations in the atmosphere 
     at a level that would prevent dangerous anthropogenic 
     interference with the climate system.
       (17) The Convention establishes that parties bear ``common 
     but differentiated responsibilities'' for efforts to achieve 
     the objective of stabilizing greenhouse gas concentrations.
       (18) At the December 2007 United Nations Climate Change 
     Conference in Bali, the United States and other parties to 
     the Convention adopted the Bali Action Plan with the aim of 
     reaching a new global agreement in 2009.
       (19) The Bali Action Plan calls for a shared vision on 
     long-term cooperative action, increased mitigation efforts 
     from developed and developing countries that are measurable, 
     reportable, and verifiable, and support for developing 
     countries in addressing technology transfers, adaptation, 
     financing, deforestation, and capacity-building.
       (20) The Major Economies Process on Energy Security and 
     Climate Change, initiated by President George W. Bush, seeks 
     a consensus among the countries with the world's major 
     economies on how those countries can contribute to a new 
     agreement under the Convention.
       (21) In April 2008, President Bush called for a ``binding 
     international agreement'' with participation by all countries 
     with major economies in ``goals and policies that reflect 
     their unique energy resources and economic circumstances''.
       (22) An effective global effort to address climate change 
     must provide for commitments and actions by all countries 
     that are major emitters of greenhouse gases, developed and 
     developing alike, and the widely varying circumstances among 
     developed and developing countries may require that such 
     commitments and actions vary.
       (23) The latest scientific evidence suggests that 
     anthropogenic climate change is increasing and the United 
     States has supported the goal of achieving a new 
     international agreement during 2009, both lending urgency to 
     the need for renewed United States leadership in the effort 
     to counter global climate change.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the United States should act to reduce the health, 
     environmental, economic, and national security risks posed by 
     global climate change and to foster sustained economic growth 
     through a new generation of technologies by participating in 
     negotiations under the United Nations Framework Convention on 
     Climate Change, done at New York May 9, 1992, and entered 
     into force March 21, 1994, and leading efforts in other 
     international fora, with the objective of securing United 
     States participation in binding agreements, consistent with 
     the Bali Action Plan, 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 greenhouse gases, consistent 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 
     greenhouse gas emissions; and
       (2) the President should support the establishment of a 
     bipartisan Senate observer group, the members of which should 
     be designated by the chairman and ranking member of the 
     Committee on Foreign Relations of the Senate, to--
       (A) monitor any international negotiations on climate 
     change; and
       (B) ensure that the responsibility of the Senate under 
     article II, section 2 of the Constitution of the United 
     States to provide advice and consent to the President with 
     respect to treaties be carried out in a manner to facilitate 
     timely consideration of any applicable treaty submitted to 
     the Senate.
                                 ______
                                 
  SA 4837. Mr. SANDERS submitted an amendment intended to be proposed 
by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of subtitle F of title V, add the following:

     SEC. 553. EXCLUSION OF NEW FOSSIL FUEL-FIRED ELECTRLCITY 
                   GENERATORS.

       Notwithstanding any other provision of this subtitle shall 
     not apply to fossil fuel-fired electricity generators 
     (including fossil fuel-fired electricity generators owned or 
     operated by a rural electric cooperative) for 2 which 
     construction began after January 19, 2007.
       At the end of section 614(d), add the following:
     (2) Exclusion of Fossil Fuel-fired Electricity Generators.--
     Notwithstanding paragraph (1), a State shall not use any 
     emission allowance (or proceeds of sale of an emission 
     allowance) to mitigate obstacles to investment by fossil 
     fuel-fired electricity generators (including fossil fuel-
     fired electricity generators owned or operated by a rural 
     electric cooperative) or fossil fuel-fired electricity 
     generation markets.
                                 ______
                                 
  SA 4837. Mr. SANDERS (for himself, Mr.  Menendez, and Mr. Kerry) 
submitted an amendment intended to be proposed by him to the bill S. 
3036, to direct the Administrator of the Environmental Protection 
Agency to establish a program to decrease emissions of greenhouse 
gases, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 65, between lines 2 and 3, insert the following:
       (d) National Emission Reduction Milestones for 2050.--Not 
     later than January 1, 2012, after an opportunity for public 
     notice and comment, the Administrator shall promulgate rules 
     and take any other actions necessary (including revising the 
     post-2020 emission allowances in the chart in subsection (a)) 
     to achieve an 80 percent reduction in all United States 
     global warming emissions by calendar year 2050, as compared 
     to calendar year 1990.
                                 ______
                                 
  SA 4839. Mr. SANDERS (for himself, Mr. Menendez, and Mr. Kerry) 
submitted an amendment intended to be proposed by him to the bill S. 
3036, to direct the Administrator of the Environmental Protection 
Agency to establish a program to decrease emissions of greenhouse 
gases, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle D of title VIII, add the following:

[[Page S5107]]

     SEC. 833. REBATES FOR PURCHASE AND INSTALLATION OF 
                   PHOTOVOLTAIC SYSTEMS FOR 10 MILLION-SOLAR 
                   ROOFS.

       (a) Findings.--Congress finds that--
       (1)(A) there is huge potential for increasing the quantity 
     of electricity produced in the United States from distributed 
     solar photovoltaics; and
       (B) the use of photovoltaics on the roofs of 10 percent of 
     existing buildings could meet 70 percent of peak electric 
     demand;
       (2) investment in solar photovoltaics technology will 
     create economies of scale that will allow the technology to 
     deliver electricity at prices that are competitive with 
     electricity from fossil fuels;
       (3) electricity produced from distributed solar 
     photovoltaics helps to reduce greenhouse gas emissions and 
     does not emit harmful air pollutants, such as mercury, sulfur 
     dioxide, and nitrogen oxides;
       (4) electricity produced from distributed solar 
     photovoltaics enhances national energy security;
       (5) investments in renewable energy stimulate the 
     development of green jobs that provide substantial economic 
     benefits;
       (6)(A) rebate programs in several States have been 
     successful in increasing the quantity of solar energy from 
     distributed photovoltaics;
       (B) the State of California has used rebate programs to 
     install nearly 190 megawatts of grid-connected photovoltaics 
     since 2000; and
       (C) the State of New Jersey has installed nearly 50 
     megawatts of grid-connected photovoltaics since 2001, 
     including 20 megawatts in 2007 alone; and
       (7) Germany has installed nearly 4,000 megawatts of 
     distributed solar photovoltaics and sustained an annual 
     growth rate approaching 67 percent since enacting aggressive 
     laws to encourage photovoltaic installations
       (b) Program.--The Secretary of Energy (referred to in this 
     section as the ``Secretary'') shall establish a program under 
     which the Secretary shall provide rebates to eligible 
     individuals or entities for the purchase and installation of 
     photovoltaic systems for residential and commercial 
     properties in order to install, over the 10-year period 
     beginning on the date of enactment of this Act, at least an 
     additional 10,000,000 solar systems in the United States (as 
     compared to the number of solar systems installed in the 
     United States as of the date of enactment of this Act) with a 
     cumulative capacity of at least 30,000 megawatts.
       (c) Eligibility.--
       (1) In general.--Subject to paragraph (2), to be eligible 
     for a rebate under this section--
       (A) the recipient of the rebate shall be a homeowner, 
     business, nonprofit entity, or State or local government that 
     purchased and installed a photovoltaic system for a property 
     located in the United States;
       (B) the total capacity of the photovoltaic system for the 
     property shall not exceed 4 megawatts;
       (C) the buildings on the property for which the 
     photovoltaic system is installed shall--
       (i) in the case of a new or renovated building, achieve a 
     rating of not less than 75 under the Energy Star program 
     established by section 324A of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294a) (or an equivalent rating 
     under an established benchmarking metric); and
       (ii) in the case of any building not described in clause 
     (i), be retrofitted to achieve a rating improvement of not 
     less than 30 points under the Energy Star program (or an 
     equivalent improvement under an established benchmarking 
     metric); and
       (D) the recipient of the rebate shall meet such other 
     eligibility criteria as are determined to be appropriate by 
     the Secretary.
       (2) Other entities.--After public review and comment, the 
     Secretary may identify other individuals or entities located 
     in the United States that qualify for a rebate under this 
     section.
       (d) Amount.--
       (1) In general.--Subject to paragraph (2), the amount of a 
     rebate provided to an eligible individual or entity for the 
     purchase and installation of a photovoltaic system for a 
     property under this section shall be at least $3 for each 
     watt of installed capacity.
       (2) Maximum amount.--The total amount of a rebate provided 
     to an eligible individual or entity for the purchase and 
     installation of a photovoltaic system for a property under 
     this section shall not exceed 50 percent of the cost of the 
     purchase and installation of the system.
       (e) Relationship to Other Law.--The authority provided 
     under this section shall be in addition to any other 
     authority under which credits or other types of financial 
     assistance are provided for installation of a photovoltaic 
     system for a property.
       (f) Allocation.--
       (1) In general.--Notwithstanding section 551, not later 
     than 330 days before the beginning of each of calendar years 
     2012 through 2021, of the quantity of emission allowances 
     established pursuant to section 201(a) that are made 
     available under section 551 for each of those calendar years, 
     the Administrator shall allocate a percentage to provide 
     rebates under this section.
       (2) Quantities of emission allowances allocated.--The 
     quantities of emission allowances allocated pursuant to 
     paragraph (1) shall be the quantities represented by the 
     percentages in the following table:


----------------------------------------------------------------------------------------------------------------
                 Calendar year                     Percentage for rebates under 10-million solar roofs program
----------------------------------------------------------------------------------------------------------------
2012...........................................  9.73
2013...........................................  9.19
2014...........................................  8.73
2015...........................................  8.33
2016...........................................  8.06
2017...........................................  7.82
2018...........................................  7.60
2019...........................................  7.42
2020...........................................  7.25
2021...........................................  7.01
----------------------------------------------------------------------------------------------------------------

                                 ______
                                 
  SA 4840. Mr. SANDERS (for himself, Mr. Menendez, and Mr. Kerry) 
submitted an amendment intended to be proposed by him to the bill S. 
3036, to direct the Administrator of the Environmental Protection 
Agency to establish a program to decrease emissions of greenhouse 
gases, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of title IX, add the following:

                 Subtitle C--Renewable Energy Standard

     SEC. 921. RENEWABLE PORTFOLIO STANDARD.

       (a) In General.--Title VI of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Base amount of electricity.--The term `base amount of 
     electricity' means the total amount of electricity sold by an 
     electric utility to electric consumers in a calendar year, 
     excluding municipal waste and electricity generated by a 
     hydroelectric facility (including a pumped storage facility, 
     but excluding incremental hydropower).
       ``(2) Biomass.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the term `biomass' means--
       ``(i) cellulosic (plant fiber) organic materials from a 
     plant that is planted for the purpose of being used to 
     produce energy; or
       ``(ii) nonhazardous, plant or algal matter that is derived 
     from any of--

       ``(I) an agricultural crop, crop byproduct or residue 
     resource;
       ``(II) waste such as landscape or right-of-way trimmings 
     (but not including municipal solid waste, recyclable 
     postconsumer waste paper, painted, treated, or pressurized 
     wood, or wood contaminated with plastic or metals);
       ``(III) gasified animal waste; or
       ``(IV) landfill methane.

       ``(B) National forest land and certain other public land.--
     With respect to organic material removed from National Forest 
     System land or from public land administered by the Secretary 
     of the Interior, the term `biomass' means only organic 
     material from--
       ``(i) ecological forest restoration;
       ``(ii) pre-commercial thinnings;
       ``(iii) brush;
       ``(iv) mill residues; and
       ``(v) slash.
       ``(C) Exclusion of certain federal land.--Notwithstanding 
     subparagraph (B), material or matter that would otherwise 
     qualify as biomass shall not be included in the term 
     `biomass' if the material or matter is located on--
       ``(i) Federal land containing old growth forest or late 
     successional forest, unless the Secretary of the Interior or 
     the Secretary of Agriculture determines that the removal of 
     organic material from the Federal land--

       ``(I) is appropriate for the applicable forest type; and
       ``(II) maximizes the retention of late-successional and 
     large and old growth trees, late-successional and old growth 
     forest structure, and late-successional and old growth forest 
     composition;

       ``(ii) Federal land on which the removal of vegetation is 
     prohibited, including components of the National Wilderness 
     Preservation System;
       ``(iii) a Wilderness Study Area;
       ``(iv) an inventoried roadless area of Federal land;
       ``(v) any part of the National Landscape Conservation 
     System; or
       ``(vi) a National Monument.
       ``(3) Distributed generation facility.--The term 
     `distributed generation facility' means a facility at a 
     customer site.
       ``(4) Existing renewable energy.--The term `existing 
     renewable energy' means, except as provided in paragraph 
     (8)(B), electric energy generated at a facility (including a 
     distributed generation facility) placed in service prior to 
     January 1, 2001, from solar, wind, or geothermal energy, 
     ocean energy, biomass, or landfill gas.
       ``(5) Geothermal energy.--The term `geothermal energy' 
     means energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2) of the Internal Revenue Code of 
     1986).
       ``(6) Incremental geothermal production.--
       ``(A) In general.--The term `incremental geothermal 
     production' means for any year the excess of--
       ``(i) the total kilowatt hours of electricity produced from 
     a facility (including a distributed generation facility) 
     using geothermal energy; over

[[Page S5108]]

       ``(ii) the average annual kilowatt hours produced at such 
     facility for 5 of the previous 7 calendar years before the 
     date of enactment of this section after eliminating the 
     highest and the lowest kilowatt hour production years in such 
     7-year period.
       ``(B) Special rule.--A facility described in subparagraph 
     (A) that was placed in service at least 7 years before the 
     date of enactment of this section shall, commencing with the 
     year in which such date of enactment occurs, reduce the 
     amount calculated under subparagraph (A)(ii) each year, on a 
     cumulative basis, by the average percentage decrease in the 
     annual kilowatt hour production for the 7-year period 
     described in subparagraph (A)(ii) with such cumulative sum 
     not to exceed 30 percent.
       ``(7) Incremental hydropower.--
       ``(A) In general.--The term `incremental hydropower' means 
     additional energy generated as a result of efficiency 
     improvements or capacity additions made on or after January 
     1, 2001, or the effective date of an existing applicable 
     State renewable portfolio standard program at a hydroelectric 
     facility that was placed in service before that date.
       ``(B) Exclusion.--The term `incremental hydropower' does 
     not include additional energy generated as a result of 
     operational changes not directly associated with efficiency 
     improvements or capacity additions.
       ``(C) Measurement.--Efficiency improvements and capacity 
     additions shall be measured on the basis of the same water 
     flow information used to determine a historic average annual 
     generation baseline for the hydroelectric facility and 
     certified by the Secretary or the Federal Energy Regulatory 
     Commission.
       ``(8) New renewable energy.--The term `new renewable 
     energy' means--
       ``(A) electric energy generated at a facility (including a 
     distributed generation facility) placed in service on or 
     after January 1, 2001, from--
       ``(i) solar, wind, or geothermal energy or ocean energy;
       ``(ii) biomass;
       ``(iii) landfill gas; or
       ``(iv) incremental hydropower; and
       ``(B) for electric energy generated at a facility 
     (including a distributed generation facility) placed in 
     service prior to the date of enactment of this section--
       ``(i) the additional energy above the average generation 
     during the 3-year period ending on the date of enactment of 
     this section at the facility from--

       ``(I) solar or wind energy or ocean energy;
       ``(II) biomass;
       ``(III) landfill gas; or
       ``(IV) incremental hydropower; and

       ``(ii) incremental geothermal production.
       ``(9) Ocean energy.--The term `ocean energy' includes 
     current, wave, tidal, and thermal energy.
       ``(b) Renewable Energy Requirement.--
       ``(1) In general.--Each electric utility that sells 
     electricity to electric consumers shall obtain a percentage 
     of the base amount of electricity the electric utility sells 
     to electric consumers in any calendar year from new renewable 
     energy or existing renewable energy.
       ``(2) Minimum annual percentage.--The percentage obtained 
     in a calendar year shall not be less than the amount 
     specified in the following table:

                                                         Minimum annual
``Calendar year:                                            percentage:
  2010..............................................................  1
  2011..............................................................  2
  2012..............................................................  4
  2013..............................................................  6
  2014..............................................................  8
  2015.............................................................. 10
  2016.............................................................. 12
  2017.............................................................. 14
  2018.............................................................. 16
  2019.............................................................. 18
  2020.............................................................. 20
       ``(3) Means of compliance.--An electric utility shall meet 
     the requirements of this subsection by--
       ``(A) submitting to the Secretary renewable energy credits 
     issued under subsection (c);
       ``(B) making alternative compliance payments to the 
     Secretary at the rate of 2 cents per kilowatt hour (as 
     adjusted for inflation under subsection (h)); or
       ``(C) conducting a combination of activities described in 
     subparagraphs (A) and (B).
       ``(c) Renewable Energy Credit Trading Program--.
       ``(1) In general.--Not later than July 1, 2009, the 
     Secretary shall establish a renewable energy credit trading 
     program under which each electric utility shall submit to the 
     Secretary renewable energy credits to certify the compliance 
     of the electric utility with respect to obligations under 
     subsection (b).
       ``(2) Administration.--As part of the program, the 
     Secretary shall--
       ``(A) issue tradeable renewable energy credits to 
     generators of electric energy from new renewable energy;
       ``(B) issue nontradeable renewable energy credits to 
     generators of electric energy from existing renewable energy;
       ``(C) issue renewable energy credits to electric utilities 
     associated with State renewable portfolio standard compliance 
     mechanisms pursuant to subsection (i);
       ``(D) ensure that a kilowatt hour, including the associated 
     renewable energy credit, shall be used only once for purposes 
     of compliance with this section;
       ``(E) allow double credits for generation from facilities 
     on Indian land, and triple credits for generation from small 
     renewable distributed generators (meaning those no larger 
     than 1 megawatt); and
       ``(F) ensure that, with respect to a purchaser that as of 
     the date of enactment of this section has a purchase 
     agreement from a renewable energy facility placed in service 
     before that date, the credit associated with the generation 
     of renewable energy under the contract is issued to the 
     purchaser of the electric energy.
       ``(3) Duration.--A credit described in subparagraph (A) or 
     (B) of paragraph (2) may only be used for compliance with 
     this section during the 3-year period beginning on the date 
     of issuance of the credit.
       ``(4) Transfers.--An electric utility that holds credits in 
     excess of the quantity of credits needed to comply with 
     subsection (b) may transfer the credits to another electric 
     utility in the same utility holding company system.
       ``(5) Delegation of market function.--The Secretary may 
     delegate to an appropriate entity that establishes markets 
     the administration of a national tradeable renewable energy 
     credit market for purposes of creating a transparent national 
     market for the sale or trade of renewable energy credits.
       ``(d) Enforcement.--
       ``(1) Civil penalties.--Any electric utility that fails to 
     meet the compliance requirements of subsection (b) shall be 
     subject to a civil penalty.
       ``(2) Amount of penalty.--Subject to paragraph (3), the 
     amount of the civil penalty shall be equal to the product 
     obtained by multiplying--
       ``(A) the number of kilowatt-hours of electric energy sold 
     to electric consumers in violation of subsection (b); by
       ``(B) the greater of--
       ``(i) 2 cents (adjusted for inflation under subsection 
     (h)); or
       ``(ii) 200 percent of the average market value of renewable 
     energy credits during the year in which the violation 
     occurred.
       ``(3) Mitigation or waiver.--
       ``(A) In general.--The Secretary may mitigate or waive a 
     civil penalty under this subsection if the electric utility 
     is unable to comply with subsection (b) for reasons outside 
     of the reasonable control of the utility.
       ``(B) Reduction.--The Secretary shall reduce the amount of 
     any penalty determined under paragraph (2) by an amount paid 
     by the electric utility to a State for failure to comply with 
     the requirement of a State renewable energy program if the 
     State requirement is greater than the applicable requirement 
     of subsection (b).
       ``(4) Procedure for assessing penalty.--The Secretary shall 
     assess a civil penalty under this subsection in accordance 
     with the procedures prescribed by section 333(d) of the 
     Energy Policy and Conservation Act of 1954 (42 U.S.C. 6303).
       ``(e) State Renewable Energy Account Program.--
       ``(1) In general.--Not later than December 31, 2008, the 
     Secretary of the Treasury shall establish a State renewable 
     energy account in the Treasury.
       ``(2) Deposits.--
       ``(A) In general.--All money collected by the Secretary 
     from alternative compliance payments and the assessment of 
     civil penalties under this section shall be deposited into 
     the renewable energy account established under paragraph (1).
       ``(B) Separate account.--The State renewable energy account 
     shall be maintained as a separate account in the Treasury and 
     shall not be transferred to the general fund of the Treasury.
       ``(3) Use.--Proceeds deposited in the State renewable 
     energy account shall be used by the Secretary, subject to 
     appropriations, for a program to provide grants to the State 
     agency responsible for developing State energy conservation 
     plans under section 362 of the Energy Policy and Conservation 
     Act (42 U.S.C. 6322) for the purposes of promoting renewable 
     energy production, including programs that promote 
     technologies that reduce the use of electricity at customer 
     sites such as solar water heating.
       ``(4) Administration.--The Secretary may issue guidelines 
     and criteria for grants awarded under this subsection. State 
     energy offices receiving grants under this section shall 
     maintain such records and evidence of compliance as the 
     Secretary may require.
       ``(5) Preference.--In allocating funds under this program, 
     the Secretary shall give preference--
       ``(A) to States in regions which have a disproportionately 
     small share of economically sustainable renewable energy 
     generation capacity; and
       ``(B) to State programs to stimulate or enhance innovative 
     renewable energy technologies.
       ``(f) Rules.--The Secretary shall issue rules implementing 
     this section not later than 1 year after the date of 
     enactment of this section.
       ``(g) Exemptions.--This section shall not apply in any 
     calendar year to an electric utility--
       ``(1) that sold less than 4,000,000 megawatt-hours of 
     electric energy to electric consumers during the preceding 
     calendar year; or
       ``(2) in Hawaii.
       ``(h) Inflation Adjustment.--Not later than December 31, 
     2008, and December 31 of

[[Page S5109]]

     each year thereafter, the Secretary shall adjust for United 
     States dollar inflation (as measured by the Consumer Price 
     Index)--
       ``(1) the price of a renewable energy credit under 
     subsection (c)(2); and
       ``(2) the amount of the civil penalty per kilowatt-hour 
     under subsection (d)(2).
       ``(i) State Programs.--
       ``(1) In general.--Nothing in this section diminishes any 
     authority of a State or political subdivision of a State to 
     adopt or enforce any law or regulation respecting renewable 
     energy, but, except as provided in subsection (d)(3), no such 
     law or regulation shall relieve any person of any requirement 
     otherwise applicable under this section.
       ``(2) Coordination.--The Secretary, in consultation with 
     States having such renewable energy programs, shall, to the 
     maximum extent practicable, facilitate coordination between 
     the Federal program and State programs.
       ``(3) Regulations.--
       ``(A) In general.--The Secretary, in consultation with 
     States, shall promulgate regulations to ensure that an 
     electric utility subject to the requirements of this section 
     that is also subject to a State renewable energy standard 
     receives renewable energy credits in relation to equivalent 
     quantities of renewable energy associated with compliance 
     mechanisms, other than the generation or purchase of 
     renewable energy by the electric utility, including the 
     acquisition of certificates or credits and the payment of 
     taxes, fees, surcharges, or other financial compliance 
     mechanisms by the electric utility or a customer of the 
     electric utility, directly associated with the generation or 
     purchase of renewable energy.
       ``(B) Prohibition on double counting.--The regulations 
     promulgated under this paragraph shall ensure that a kilowatt 
     hour associated with a renewable energy credit issued 
     pursuant to this subsection shall not be used for compliance 
     with this section more than once.
       ``(j) Recovery of Costs.--
       ``(1) In general.--The Commission shall issue and enforce 
     such regulations as are necessary to ensure that an electric 
     utility recovers all prudently incurred costs associated with 
     compliance with this section.
       ``(2) Applicable law.--A regulation under paragraph (1) 
     shall be enforceable in accordance with the provisions of law 
     applicable to enforcement of regulations under the Federal 
     Power Act (16 U.S.C. 791a et seq.).
       ``(k) Wind Energy Development Study.--The Secretary, in 
     consultation with appropriate Federal and State agencies, 
     shall conduct, and submit to Congress a report describing the 
     results of, a study on methods to increase transmission line 
     capacity for wind energy development.
       ``(l) Sunset.--This section expires on December 31, 
     2040.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     prec. 2601) is amended by adding at the end of the items 
     relating to title VI the following:

``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Federal renewable portfolio standard.''.
                                 ______
                                 
  SA 4841. Mr. SANDERS (for himself and Mr. Kerry) submitted an 
amendment intended to be proposed by him to the bill S. 3036, to direct 
the Administrator of the Environmental Protection Agency to establish a 
program to decrease emissions of greenhouse gases, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle D of title VIII, add the following:

     SEC. 833. GRANTS FOR DEVELOPMENT OR CONSTRUCTION OF 
                   CONCENTRATING SOLAR POWER PLANTS.

       (a) Goal.--It is the goal of this section to add, over the 
     10-year period beginning on the date of enactment of this 
     Act, at least an additional 200,000 megawatts of renewable 
     electric power from concentrating solar power plants.
       (b) Grants.--The Secretary of Energy, in consultation with 
     the Administrator, shall establish a program under which the 
     Secretary shall provide grants to eligible entities to pay 
     the Federal share of the cost of developing or constructing 
     concentrating solar power plants.
       (c) Federal Share.--The Federal share of a grant under this 
     section shall be 12.5 percent of the cost of developing or 
     constructing a concentrating solar power plant.
       (d) Relationship to Other Law.--The authority provided 
     under this section shall be in addition to any other 
     authority under which credits or other types of financial 
     assistance are provided for the development or construction 
     of a concentrating solar power plant.
       (e) Allocation.--
       (1) In general.--Notwithstanding section 551, not later 
     than 330 days before the beginning of each of calendar years 
     2012 through 2021, of the quantity of emission allowances 
     established pursuant to section 201(a) that are made 
     available under section 551 for each of those calendar years, 
     the Administrator shall allocate a percentage to provide 
     grants under this section.
       (2) Quantities of emission allowances allocated.--The 
     quantities of emission allowances allocated pursuant to 
     paragraph (1) shall be the quantities represented by the 
     percentages in the following table:


----------------------------------------------------------------------------------------------------------------
                 Calendar year                      Percentage for grants for concentrating solar power plants
----------------------------------------------------------------------------------------------------------------
2012...........................................  9.7
2013...........................................  9.2
2014...........................................  8.7
2015...........................................  8.3
2016...........................................  8.1
2017...........................................  7.8
2018...........................................  7.6
2019...........................................  7.4
2020...........................................  7.3
2021...........................................  7.0.
----------------------------------------------------------------------------------------------------------------

                                 ______
                                 
  SA 4842. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       Beginning on page 291, strike line 24 and all that follows 
     through page 292, line 16.
       On page 301, line 12, strike ``(a) In General.--''.
       On page 302, strike lines 6 through 22.
       Beginning on page 306, strike line 17 and all that follows 
     through page 307, line 9.
                                 ______
                                 
  SA 4843. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 64, strike lines 6 through 12 and insert the 
     following:
       (c) Legal Status.--
       (1) In general.--An emission allowance shall constitute a 
     property right.
       (2) Compensation.--The Administrator shall provide to the 
     holder of an emission allowance just compensation for the 
     termination or limitation of the emission allowance.
                                 ______
                                 
  SA 4844. Mr. MENENDEZ (for himself and Mr. Kerry) submitted an 
amendment intended to be proposed by him to the bill S. 3036, to direct 
the Administrator of the Environmental Protection Agency to establish a 
program to decrease emissions of greenhouse gases, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title XVI, add the following:

     SEC. 16__. REPORT ON THE ECONOMIC IMPACTS OF CLIMATE CHANGE.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall enter into an 
     arrangement with the National Academy of Sciences (referred 
     to in this section as the ``Academy''), under which the 
     Academy shall, not later than January 1, 2011, and every 5 
     years thereafter, submit to the Administrator and make 
     available to the public a report that assesses the costs of 
     climate change on the United States economy, including the 
     costs associated with hurricanes and other storms, drought, 
     hunger, water shortages, and coastal flooding.
       (b) Initial Report.--
       (1) Requirements.--The initial report required under 
     subsection (a) shall--
       (A) include an analysis of the economic, social, and 
     environmental consequences of climate change in the United 
     States if action is not taken to reduce global greenhouse gas 
     emissions;
       (B) take into account the risks of increased climate 
     volatility and major irreversible impacts of climate change;
       (C) be organized by region of the United States;
       (D) identify--
       (i) the key economic and environmental effects from climate 
     change; and
       (ii) the main impacts to be expected from climate change, 
     including impacts on--

       (I) agriculture and forestry;
       (II) the food supply;
       (III) energy;
       (IV) transportation;
       (V) fisheries;
       (VI) coastal impacts and habitability;
       (VII) recreation and tourism;
       (VIII) public health;
       (IX) water quantity and quality;
       (X) low-income consumers; and
       (XI) ecosystems, such as forests, rivers, and lakes;

       (E) include estimates of costs of the main impacts of 
     climate change identified under subparagraph (D)(ii);
       (F) express in monetary terms the cost of climate change on 
     each sector of the economy on a regional basis and to the 
     United States as a whole;
       (G) make predictions for the economic cost of climate 
     change in the United States for each decade beginning in 2020 
     and ending in 2100; and
       (H) reference the latest information available from--
       (i) the U.S. Global Change Research Program; and
       (ii) the Intergovernmental Panel on Climate Change.

[[Page S5110]]

       (2) Limitation.--The initial report shall not take into 
     account any possible adaptations to the effects of climate 
     change, including the construction of levies or other 
     infrastructure adjustments.
       (c) Subsequent Reports.--In addition to including the 
     components required under subsection (b)(1), any report 
     submitted after the date of the initial report shall include 
     an estimate of the savings to the United States economy 
     achieved due to any reduced climate change impacts associated 
     with reductions in greenhouse gas emissions since the 
     submission of the previous report.
                                 ______
                                 
  SA 4845. Mr. MENENDEZ (for himself, Mr. Lautenberg, and Mr. Sanders) 
submitted an amendment intended to be proposed by him to the bill S. 
3036, to direct the Administrator of the Environmental Protection 
Agency to establish a program to decrease emissions of greenhouse 
gases, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 196, strike line 15 and all that follows 
     through page 198, line 16.
       At the end of section 614(d)(1), add the following:
       (W) To promote the development of renewable-energy sources, 
     as defined in section 832(a).
       At the end of section 614, add the following:
       (e) Additional Allocation.--
       (1) In general.--In addition to the allocation made under 
     subsection (a), not later than 330 days before the beginning 
     of each of calendar years 2012 through 2030, the 
     Administrator shall allocate a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     that are made available for that calendar year for 
     distribution to reduce greenhouse gas emissions and promote 
     renewable electricity generation in accordance with this 
     subsection.
       (2) Quantities of emission allowances allocated.--The 
     quantities of emission allowances allocated pursuant to 
     paragraph (1) shall be the quantities represented by the 
     percentages in the following table:


------------------------------------------------------------------------
                                                        Percentage for
                    Calendar year                         additional
                                                          allocation
------------------------------------------------------------------------
2012................................................                  2
2013................................................                  2
2014................................................                  2
2015................................................                  2
2016................................................                  2
2017................................................                  2
2018................................................                  1
2019................................................                  1
2020................................................                  1
2021................................................                  1
2022................................................                  1
2023................................................                  1
2024................................................                  1
2025................................................                  1
2026................................................                  1
2027................................................                  1
2028................................................                  1
2029................................................                  1
2030................................................                  1
------------------------------------------------------------------------

       (3) Use.--During any calendar year, of the total quantity 
     of allowances allocated to a State under this section, a 
     State shall use at least 25 percent to promote renewable 
     electricity generation under subsection (d)(1)(W).

       In section 832(b), strike ``start-up, expansion, and 
     operation of the facilities'' and insert ``start-up or 
     expansion of the facilities''.
                                 ______
                                 
  SA 4846. Mr. MENENDEZ (for himself and Mr. Kerry) submitted an 
amendment intended to be proposed by him to the bill S. 3036, to direct 
the Administrator of the Environmental Protection Agency to establish a 
program to decrease emissions of greenhouse gases, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike the table that appears on page 193, before line 1, 
     and insert the following:


------------------------------------------------------------------------
                                Percentage for distribution among fossil
        Calendar year             fuel-fired electricity generators in
                                             United States
------------------------------------------------------------------------
2012.........................  16.5
2013.........................  16.5
2014.........................  16.5
2015.........................  16.5
2016.........................  16.25
2017.........................  16
2018.........................  15.75
2019.........................  14.75
2020.........................  13.5
2021.........................  12
2022.........................  9.75
2023.........................  8.75
2024.........................  7.5
2025.........................  7.25
2026.........................  4.25
2027.........................  3
2028.........................  2.75
2029.........................  1.5
2030.........................  1.25.
------------------------------------------------------------------------


       On page 426, strike lines 14 through 16 and insert the 
     following:
     section--
       (1) for each of calendar years 2012 through 2030, 2.5 
     percent of the aggregate quantity of emission allowances 
     established for the applicable calendar year pursuant to 
     section 201(a); and
       (2) for each of calendar years 2031 through 2050, 1 percent 
     of the aggregate quantity of emission allowances established 
     for the applicable calendar year pursuant to section 201(a).
                                 ______
                                 
  SA 4847. Mr. MENENDEZ (for himself, Mr. Lautenberg, and Mr. Sanders) 
submitted an amendment intended to be proposed by him to the bill S. 
3036, to direct the Administrator of the Environmental Protection 
Agency to establish a program to decrease emissions of greenhouse 
gases, and for other purposes; which was ordered to lie on the table; 
as follows:

       In section 551(a), strike``2030'' and insert ``2022''.
       In section 551(b), strike the table and insert the 
     following:


------------------------------------------------------------------------
                                                             Percentage
                                                                 for
                                                            distribution
                                                            among fossil
                       Calendar year                         fuel-fired
                                                             electricity
                                                             generators
                                                              in United
                                                               States
------------------------------------------------------------------------
2012......................................................       18
2013......................................................       16.25
2014......................................................       14.5
2015......................................................       12.75
2016......................................................       11
2017......................................................        9.25
2018......................................................        7.5
2019......................................................        5.75
2020......................................................        4
2021......................................................        2.25
2022......................................................        0.5
------------------------------------------------------------------------


       In section 552(a), strike``2030'' and insert ``2022''.
       At the end of section 614(d)(1), add the following:
       (W) To promote the development of renewable-energy sources, 
     as defined in section 832(a).
       (X) To provide funding to pay the costs of training for 
     climate change adjustment assistance-eligible individuals 
     under section 535(h).
       At the end of section 614, add the following:
       (e) Additional Allocation.--
       (1) In general.--In addition to the allocation made under 
     subsection (a), not later than 330 days before the beginning 
     of each of calendar years 2012 through 2030, the 
     Administrator shall allocate a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     that are made available for that calendar year for 
     distribution to reduce greenhouse gas emissions, promote 
     renewable electricity generation, assist low-income 
     consumers, train workers, and improve energy efficiency in 
     accordance with this subsection.
       (2) Quantities of emission allowances allocated.--The 
     quantities of emission allowances allocated pursuant to 
     paragraph (1) shall be the quantities represented by the 
     percentages in the following table:


------------------------------------------------------------------------
                                                              Percentage
                                                                  for
                        Calendar year                         additional
                                                              allocation
------------------------------------------------------------------------
2012........................................................       0
2013........................................................       1.75
2014........................................................       3.5
2015........................................................       5.25
2016........................................................       6.75
2017........................................................       8.25
2018........................................................       9.75
2019........................................................      10.5
2020........................................................      11
2021........................................................      11.25
2022........................................................      10.75
2023........................................................      10.25
2024........................................................       9
2025........................................................       8.75
2026........................................................       5.75
2027........................................................       4.5
2028........................................................       4.25
2029........................................................       3

[[Page S5111]]

 
2030........................................................       2.75
------------------------------------------------------------------------

       (3) Use.--During any calendar year, of the total quantity 
     of allowances allocated to a State under this section, a 
     State shall use--
       (A) at least 20 percent to promote renewable electricity 
     generation under subsection (d)(1)(W);
       (B) at least 10 percent to promote energy efficiency under 
     subsection (d)(1)(B);
       (C) at least 15 percent to train workers under subsection 
     (d)(1)(X); and
       (D) at least 5 percent to mitigate impacts on low-income 
     energy consumers under subsection (d)(1)(A).
       In section 832(b), strike ``start-up, expansion, and 
     operation of the facilities'' and insert ``start-up or 
     expansion of the facilities''.
                                 ______
                                 
  SA 4848. Mr. NELSON of Nebraska submitted an amendment intended to be 
proposed by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. NATIONAL COMMISSION ON ENERGY POLICY AND GLOBAL 
                   CLIMATE CHANGE.

       (a) Establishment.--There is established a commission, to 
     be known as the ``National Commission on Energy Policy and 
     Global Climate Change'' (referred to in this section as the 
     ``Commission'').
       (b) Purposes.--The purposes of the Commission are--
       (1) to examine all aspects of the national energy situation 
     and related policies in order to develop a comprehensive, 
     economy-wide policy approach to energy issues;
       (2) to examine relevant data relating to global climate 
     change, including impacts of human activities; and
       (3) to report to Congress and the President the findings, 
     conclusions, and recommendations of the Commission for 
     legislation to establish a comprehensive national energy 
     policy that ensures national energy security and 
     significantly reduces greenhouse gas emissions in order to 
     address global climate change without damaging the economy.
       (c) Composition.--
       (1) Membership.--The Commission shall be composed of 12 
     members, of whom--
       (A) 1 shall be jointly appointed by the Majority Leader of 
     the Senate and the Speaker of the House of Representatives, 
     who shall serve as Chairperson of the Commission;
       (B) 1 shall be jointly appointed by the Minority Leader of 
     the Senate and the Minority Leader of the House of 
     Representatives, who shall serve as Vice-Chairperson of the 
     Commission;
       (C) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Environment and Public 
     Works of the Senate;
       (D) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Natural Resources of the 
     House of Representatives, in consultation with the Select 
     Committee on Energy Independence and Global Warming of the 
     House of Representatives;
       (E) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Energy and Natural 
     Resources of the Senate;
       (F) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Energy and Commerce of the 
     House of Representatives;
       (G) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Commerce, Science, and 
     Transportation of the Senate;
       (H) 1 shall be jointly appointed by the Chairpersons and 
     Ranking Members of the Committees on Science and Technology 
     and Transportation and Infrastructure of the House of 
     Representatives;
       (I) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate;
       (J) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Agriculture of the House 
     of Representatives;
       (K) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Finance of the Senate; and
       (L) 1 shall be jointly appointed by the Chairperson and 
     Ranking Member of the Committee on Ways and Means of the 
     House of Representatives.
       (2) Qualifications.--
       (A) Political party affiliation.--An appointment of a 
     member of the Commission under paragraph (1) shall be made--
       (i) without regard to the political party affiliation of 
     the member; and
       (ii) on a nonpartisan basis.
       (B) Nongovernmental appointees.--A member appointed to the 
     Commission under paragraph (1) shall not be an officer or 
     employee of--
       (i) the Federal Government; or
       (ii) any unit of State or local government.
       (C) Sense of congress regarding other qualifications.--It 
     is the sense of Congress that members appointed to the 
     Commission under paragraph (1) should be prominent, 
     nationally recognized United States citizens, with a 
     significant depth of experience in professions such as 
     governmental service, science, energy, economics, the 
     environment, agriculture, manufacturing, public 
     administration, and commerce (including aviation matters).
       (3) Deadline for appointments.--All members of the 
     Commission shall be appointed by not later than 90 days after 
     the date of enactment of this Act.
       (4) Meetings.--
       (A) Initial meeting.--The Commission shall hold the initial 
     meeting of the Commission as soon as practicable, and not 
     later than 60 days, after the date on which all members of 
     the Commission are appointed.
       (B) Subsequent meetings.--After the initial meeting under 
     subparagraph (A), the Commission shall meet at the call of--
       (i) the Chairperson; or
       (ii) a majority of the members of the Commission.
       (5) Quorum.--7 members of the Commission shall constitute a 
     quorum.
       (6) Vacancies.--A vacancy on the Commission--
       (A) shall not affect the powers of the Commission; and
       (B) shall be filled in the same manner in which the 
     original appointment was made.
       (d) Duties.--
       (1) In general.--The Commission shall--
       (A) study and evaluate relevant data, studies, and 
     proposals relating to national energy policies and policies 
     to address global climate change, including any relevant 
     legislation, Executive order, regulation, plan, policy, 
     practice, or procedure relating to--
       (i) domestic production and consumption of energy from all 
     sources and imported sources of energy, particularly oil and 
     natural gas;
       (ii) domestic and international oil and gas exploration, 
     production, refining, and pipelines and other forms of 
     infrastructure and transportation;
       (iii) energy markets, including energy market speculation, 
     transparency, and oversight;
       (iv) the structure of the energy industry, including the 
     impacts of consolidation, antitrust, and oligopolistic 
     concerns, market manipulation and collusion concerns, and 
     other similar matters;
       (v) electricity production and transmission issues, 
     including fossil fuels, renewable energy, energy efficiency, 
     and energy conservation matters;
       (vi) transportation fuels, biofuels and other renewable 
     fuels, fuel cells, motor vehicle power systems, efficiency, 
     and conservation; and
       (vii) nuclear energy, including matters relating to 
     permitting, regulation, and legal liability;
       (B) examine relevant data relating to global climate change 
     and the national and global environment, including--
       (i) the impacts on the global climate system and the 
     environment of human activities, particularly greenhouse gas 
     emissions and pollution; and
       (ii) the consequences of global climate change on humans 
     and other species, particularly consequences to the national 
     security, economy, and public health and safety of the United 
     States;
       (C) identify, review, and evaluate the lessons of past 
     energy policies, energy crises, environmental problems, and 
     attempts to address global climate change;
       (D) evaluate proposals for energy and global climate change 
     policies, including proposals developed by Members of 
     Congress, congressional Committees, relevant Federal, 
     regional, and State government agencies, nongovernmental 
     organizations, independent organizations, and international 
     organizations, with the goal of expanding those proposals to 
     develop a blueprint for comprehensive energy and global 
     climate change legislation; and
       (E) submit to Congress and the President the reports 
     required under subsection (h).
       (2) Relationship to efforts of congress.--The Commission 
     shall--
       (A) review the information compiled by, and the findings, 
     conclusions, and recommendations of, congressional Committees 
     of relevant jurisdiction; and
       (B) based on the results of the review, pursue any 
     appropriate inquiry that the Commission determines to be 
     necessary to carry out the duties of the Commission under 
     paragraph (1).
       (e) Powers.--
       (1) In general.--
       (A) Rules.--The Commission may establish such rules 
     relating to administrative procedures as are reasonably 
     necessary to enable the Commission to carry out this section.
       (B) Hearings and evidence.--
       (i) In general.--The Commission or any subcommittee or 
     member of the Commission may, for the purpose of carrying out 
     this section--

       (I) hold such hearings and sit and act at such times and 
     places, take such testimony, receive such evidence, and 
     administer such oaths as the Commission determines to be 
     appropriate; and
       (II) subject to paragraph (2)(A), require, by subpoena or 
     otherwise, the attendance and testimony of such witnesses and 
     the production of such books, records, correspondence,

[[Page S5112]]

     memoranda, papers, and documents, as the Commission 
     determines to be necessary.

       (ii) Public requirement.--In accordance with applicable 
     laws (including regulations) and Executive orders regarding 
     protection of information acquired by the Commission, the 
     Commission shall ensure that, to the maximum extent 
     practicable--

       (I) all hearings of the Commission are open to the public, 
     including by--

       (aa) providing live and recorded public access to hearings 
     on the Internet; and
       (bb) publishing all transcripts and records of hearings at 
     such time and in such manner as is agreed to by the majority 
     of members of the Commission; and

       (II) all findings and reports of the Commission are made 
     public.

       (2) Subpoenas.--
       (A) Issuance.--
       (i) In general.--A subpoena may be issued under this 
     subsection only--

       (I) on agreement of the Chairperson and Vice-Chairperson of 
     the Commission; or
       (II) on the affirmative vote of at least 6 members of the 
     Commission.

       (ii) Signature.--Subject to clause (i), a subpoena issued 
     under this paragraph may be--

       (I) issued under the signature of the Chairperson of the 
     Commission (or a designee who is a member of the Commission); 
     and
       (II) served by any individual or entity designated by the 
     Chairperson or designee.

       (B) Enforcement.--
       (i) In general.--In the case of contumacy or failure to 
     obey a subpoena issued under subparagraph (A), the United 
     States district court for the judicial district in which the 
     subpoenaed individual or entity resides, is served, or may be 
     found, or to which the subpoena is returnable, may issue an 
     order requiring the individual or entity to appear at a 
     designated place to testify or to produce documentary or 
     other evidence.
       (ii) Failure to obey.--

       (I) In general.--A failure to obey the order of a United 
     States district court under clause (i) may be punished by the 
     United States district court as a contempt of the court.
       (II) Enforcement by commission.--In the case of failure of 
     a witness to comply with a subpoena, or to testify if 
     summoned pursuant to this paragraph--

       (aa) the Commission, by majority vote, may certify to the 
     appropriate United States Attorney a statement of fact 
     regarding the failure; and
       (bb) the United States Attorney may bring the matter before 
     the grand jury for action in accordance with sections 102 
     through 104 of the Revised Statutes (2 U.S.C. 192 et seq.).
       (3) Contracting.--To the extent amounts are made available 
     in appropriations Acts, the Commission may enter into 
     contracts to assist the Commission in carrying out the duties 
     of the Commission under this section.
       (4) Information from federal agencies.--
       (A) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     to be necessary to carry out this section.
       (B) Provision of information.--On request of the 
     Chairperson of the Commission, the head of the agency shall 
     provide the information to the Commission.
       (C) Treatment.--Information provided to the Commission 
     under this paragraph shall be received, handled, stored, and 
     disseminated by members and staff of the Commission in 
     accordance with applicable law (including regulations) and 
     Executive orders.
       (5) Assistance from federal agencies.--
       (A) General services administration.--The Administrator of 
     General Services shall provide to the Commission, on a 
     reimbursable basis, administrative support and other services 
     to assist the Commission in carrying out the duties of the 
     Commission under this section.
       (B) Other departments and agencies.--In addition to the 
     assistance described in subparagraph (A), any other Federal 
     department or agency may provide to the Commission such 
     services, funds, facilities, staff, and other support as the 
     head of the department or agency determines to be 
     appropriate.
       (6) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (7) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property only in accordance 
     with the ethical rules applicable to congressional officers 
     and employees.
       (8) Volunteer services.--
       (A) In general.--Notwithstanding section 1342 of title 31, 
     United States Code, the Commission may accept and use the 
     services of volunteers serving without compensation.
       (B) Reimbursement.--The Commission may reimburse a 
     volunteer for office supplies, local travel expenses, and 
     other travel expenses, including per diem in lieu of 
     subsistence, in accordance with section 5703 of title 5, 
     United States Code.
       (C) Treatment.--A volunteer of the Commission shall be 
     considered to be an employee of the Federal Government in 
     carrying out activities for the Commission, for purposes of--
       (i) chapter 81 of title 5, United States Code;
       (ii) chapter 11 of title 18, United States Code; and
       (iii) chapter 171 of title 28, United States Code.
       (f) Commission Personnel Matters.--
       (1) Compensation of members.--A member of the Commission 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (2) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (3) Staff.--
       (A) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as are necessary to enable 
     the Commission to perform the duties of the Commission.
       (B) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Commission.
       (C) Compensation.--
       (i) In general.--Except as provided in clause (ii), the 
     Chairperson of the Commission may fix the compensation of the 
     executive director and other personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (D) Status.--The executive director and any employee (not 
     including any member) of the Commission shall be considered 
     to be employees under section 2105 of title 5, United States 
     Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, 
     and 90 of that title.
       (E) Consultant services.--The Commission may procure the 
     services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, at rates not to 
     exceed the daily rate paid to an individual occupying a 
     position at level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.
       (g) Nonapplicability of FACA.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the 
     Commission.
       (h) Reports.--
       (1) Interim reports.--Not later than June 1, 2009, and 
     thereafter as the Commission determines to be appropriate, 
     the Commission shall submit to Congress and the President an 
     interim report describing the findings and recommendations 
     agreed to by a majority of members of the Commission during 
     the period beginning on the date on which, as applicable--
       (A) all members of the Commission are appointed under 
     subsection (c); or
       (B) the most recent interim report was submitted under this 
     paragraph.
       (2) Final report.--Not later than 18 months after the date 
     on which all members of the Commission are appointed under 
     subsection (c), the Commission shall submit to Congress and 
     the President a final report establishing a plan for 
     development of legislation for a comprehensive national 
     policy relating to energy security that--
       (A) addresses global climate change; and
       (B) describes the findings and recommendations agreed to by 
     a majority of members of the Commission.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Commission such sums as are 
     necessary to carry out this section, to remain available 
     until the later of--
       (1) the date on which the funds are expended; or
       (2) the date of termination of the Commission under 
     subsection (j).
       (j) Termination.--
       (1) In general.--The Commission shall terminate on the date 
     that is 60 days after the date on which the final report is 
     submitted under subsection (h)(2).
       (2) Administrative activities before termination.--During 
     the 60-day period described in paragraph (1), the Commission 
     may conclude the activities of the Commission, including--
       (A) providing testimony to appropriate committees of 
     Congress regarding the reports of the Commission; and
       (B) publishing the final report of the Commission.
                                 ______
                                 
  SA 4849. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title XVII, add the following:

           Subtitle H--Committees of Appropriate Jurisdiction

     SEC. 1771. COMMITTEES OF APPROPRIATE JURISDICTION.

       No revenue or outlays may be disbursed from any fund 
     established in the Treasury of the United States by this Act, 
     except pursuant to legislation reported by the congressional 
     Committees of appropriate jurisdiction and subsequently 
     enacted by Congress.

[[Page S5113]]

                                 ______
                                 
  SA 4850. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 31, between lines 9 and 10, insert the following:
       (50) Tax relief fund.--The term ``Tax Relief Fund'' means 
     the fund established by section 581.
       On page 31, line 10, strike ``(50)'' and insert ``(51)''.
       On page 31, line 14, strike ``(51)'' and insert ``(52)''.
       On page 161, strike lines 9 through 12.
       On page 161, lines 15 and 16, strike ``Climate Change 
     Worker Training and Assistance'' and insert ``Tax Relief 
     Fund''.
       On page 161, lines 23 and 24, strike ``Climate Change 
     Worker Training and Assistance'' and insert ``Tax Relief 
     Fund''.
       In the heading of the right column of the table contained 
     on page 162, after line 17, strike ``Climate Change Worker 
     Training and Assistance'' and insert ``Tax Relief Fund''.
       On page 163, lines 4 and 5, strike ``Climate Change Worker 
     Training and Assistance'' and insert ``Tax Relief Fund''.
       Beginning on page 163, strike line 6 and all that follows 
     through page 183, line 3.
       On page 201, strike lines 20 through 23 and insert the 
     following:

     SEC. 581. ESTABLISHMENT OF TAX RELIEF FUND.

       There is established in the Treasury of the United States a 
     fund, to be known as the ``Tax Relief Fund''.
       On page 202, strike lines 3 and 4 and insert the following:
     (b) and (c) and in addition to other auctions conducted 
     pursuant to this Act, to raise funds for deposit in the Tax 
     Relief Fund, for each of calendar
       On page 202, lines 10 and 11, strike ``Climate Change 
     Consumer Assistance'' and insert ``Tax Relief Fund''.
       In the heading of the right column of the table contained 
     on page 203, after line 2, strike ``Climate Change Consumer 
     Assistance'' and insert ``Tax Relief Fund''.
       On page 204, lines 1 and 2, strike ``Climate Change 
     Consumer Assistance'' and insert ``Tax Relief Fund''.
       On page 204, strike lines 3 through 14 and insert the 
     following:

     SEC. 584. SENSE OF SENATE REGARDING USE OF AMOUNTS IN TAX 
                   RELIEF FUND.

       It is the Sense of the Senate that the Secretary of the 
     Treasury should use amounts deposited in the Tax Relief Fund 
     pursuant to this Act for each calendar year to provide tax 
     relief to consumers in the United States.
       Beginning on page 204, strike line 22 and all that follows 
     through page 217, line 4, and insert the following:

     SEC. 601. AUCTIONS FOR TAX RELIEF.

       (a) Auction.--
       (1) First period.--Not later than 330 days before the 
     beginning of calendar year 2012, the Administrator shall 
     auction 12.75 percent of the quantity of emission allowances 
     established pursuant to section 201(a) for that calendar 
     year.
       (2) Second period.--Not later than 330 days before the 
     beginning of each of calendar years 2013 through 2025, the 
     Administrator shall auction 13 percent of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for that calendar year.
       (3) Third period.--Not later than 330 days before the 
     beginning of each of calendar years 2026 through 2050, the 
     Administrator shall auction 13.5 percent of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for that calendar year.
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to subsection (a) in 
     the Tax Relief Fund for use in accordance with section 584.
       On page 217, strike lines 8 through 16 and insert the 
     following:
       (1) In general.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2050, the 
     Administrator shall auction a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for the applicable calendar year, in accordance with the 
     table contained in paragraph (2).
       On page 217, line 19, strike ``allocate to States described 
     in'' and insert ``auction under''.
       In the heading of the right column of the table contained 
     on page 217, after line 21, strike ``allocation among States 
     relying heavily on manufacturing and on coal'' and insert 
     ``auction''.
       Beginning on page 218, strike line 1 and all that follows 
     through page 222, line 4, and insert the following:
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to subsection (a) in 
     the Tax Relief Fund, for use in accordance with section 584.

       Beginning on page 222, strike line 8 and all that follows 
     through page 223, line 11, and insert the following:

     SEC. 611. AUCTIONS FOR TAX RELIEF.

       (a) Auction of Allowances.--In accordance with subsections 
     (b) and (c), for each of calendar years 2012 through 2050, 
     the Administrator shall auction a quantity of the emission 
     allowances established pursuant to section 201(a) for each 
     calendar year.
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.
       (c) Quantities of Emission Allowances Auctioned.--For each 
     calendar year of the period described in subsection (a), the 
     Administrator shall auction a quantity of emission allowances 
     in accordance with the applicable percentages described in 
     the following table:
       In the heading of the right column of the table contained 
     on page 223, after line 11, strike ``for public 
     transportation''.
       Beginning on page 224, strike line 1 and all that follows 
     through page 228, line 25, and insert the following:
       (d) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.
       On page 240, strike lines 5 through 17 and insert the 
     following:
       (a) In General.--In accordance with subsection (b), for 
     each of calendar years 2012 through 2050, the Administrator 
     shall--
       (1) auction 2 percent of the emission allowances 
     established pursuant to section 201(a) for the calendar year; 
     and
       (2) immediately on completion of an auction, deposit the 
     proceeds of the auction in the Tax Relief Fund, for use in 
     accordance with section 584.
       On page 241, strike lines 6 through 21 and insert the 
     following:
       (a) Auction.--
       (1) In general.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2050, the 
     Administrator shall auction a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for the applicable calendar year, in accordance with 
     paragraph (2).
       (2) Percentages for auction.--For each of calendar years 
     2012 through 2050, the Administrator shall auction in 
     accordance with paragraph (1) the percentage of emission 
     allowances specified in the following table:

       In the heading of the right column of the table contained 
     on page 241, after line 21, strike ``State leaders in 
     reducing greenhouse gas emissions and improving energy 
     efficiency'' and insert ``auction''.
       Beginning on page 242, strike line 1 and all that follows 
     through page 249, line 9, and insert the following:
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.
       On page 249, strike lines 13 through 24 and insert the 
     following:

     SEC. 621. AUCTIONS.

       (a) In General.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2050, the 
     Administrator shall auction a percentage of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for the applicable calendar year, in accordance with 
     subsection (b).
       (b) Percentages for Allocation.--For each of calendar years 
     2012 through 2050, the Administrator shall auction in 
     accordance with subsection (a) the per-

       In the heading of the right column of the table contained 
     on page 250, after line 2, strike ``States and Indian tribes 
     for adaptation activities'' and insert ``auction''.
       Beginning on page 250, strike line 3 and all that follows 
     through page 267, line 11, and insert the following:

     SEC. 622. USE OF PROCEEDS.

       The Administrator shall deposit all proceeds of auctions 
     conducted pursuant to this subtitle, immediately on receipt 
     of those proceeds, in the Tax Relief Fund, for use in 
     accordance with section 584.

       Beginning on page 283, strike line 14 and all that follows 
     through page 292, line 16, and insert the following:

     SEC. 801. AUCTIONS FOR TAX RELIEF.

       (a) First Period.--Not later than 330 days before the 
     beginning of each of calendar years 2012 through 2030, the 
     Administrator shall auction 6.25 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year.
       (b) Second Period.--Not later than 330 days before the 
     beginning of each of calendar years 2031 through 2050, the 
     Administrator shall auction 3.25 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year.
       (c) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

       Beginning on page 292, strike line 22 and all that follows 
     through page 302, line 22, and insert the following:

     SEC. 901. AUCTIONS FOR TAX RELIEF.

       (a) First Period.--
       (1) In general.--For each of calendar years 2012 through 
     2021, the Administrator shall auction 1.75 percent of the 
     quantity of emission allowances established pursuant to 
     section 201(a) for the calendar year, in accordance with 
     paragraph (2).

[[Page S5114]]

       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (b) Second Period.--
       (1) In general.--For each of calendar years 2022 through 
     2030, the Administrator shall auction 2 percent of the 
     quantity of emission allowances established pursuant to 
     section 201(a) for the calendar year, in accordance with 
     paragraph (2).
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (c) Third Period.--
       (1) In general.--For each of calendar years 2031 through 
     2050, the Administrator shall auction 1 percent of the 
     quantity of emission allowances established pursuant to 
     section 201(a) for the calendar year, in accordance with 
     paragraph (2).
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (d) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

       Beginning on page 303, strike line 2 and all that follows 
     through page 304, line 7, and insert the following:

     SEC. 911. AUCTIONS FOR TAX RELIEF.

       (a) In General.--For each of calendar years 2012 through 
     2050, the Administrator shall auction 0.25 percent of the 
     quantity of emission allowances established pursuant to 
     section 201(a) for the calendar year, in accordance with 
     subsection (b).
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.
       (c) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

       Beginning on page 304, strike line 9 and all that follows 
     through page 307, line 19, and insert the following:

                  Subtitle A--Auctions for Tax Relief

     SEC. 1001. AUCTIONS FOR TAX RELIEF.

       (a) In General.--Not later than 120 days after the date of 
     enactment of this Act, and annually thereafter through 2022, 
     the Administrator shall auction 1 percent of the quantity of 
     emission allowances established pursuant to section 201(a) 
     for the calendar year that occurs 3 years after the calendar 
     year during which the auction is conducted.
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

     SEC. 1002. ADDITIONAL AUCTIONS.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall auction

       In the heading of the right column of the table contained 
     on page 307, after line 22, strike ``allocation to Bonus 
     Allowance Account'' and insert ``auction''.

       Beginning on page 308, strike line 1 and all that follows 
     through page 318, line 4, and insert the following:
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

       Beginning on page 330, strike line 8 and all that follows 
     through page 332, line 9, and insert the following:

     SEC. 1101. AUCTIONS FOR TAX RELIEF.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall auction 0.5 
     percent of the quantity of emission allowances established 
     pursuant to section 201(a) for calendar years 2012 through 
     2017.
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

       Beginning on page 332, strike line 12 and all that follows 
     through page 338, line 5, and insert the following:

     SEC. 1111. AUCTIONS.

       (a) In General.--For each of calendar years 2012 through 
     2050, the Administrator shall auction 1 percent of the 
     quantity of emission allowances established pursuant to 
     section 201(a) for the calendar year, in accordance with 
     subsection (b).
       (b) Number; Frequency.--For each calendar year during the 
     period described in subsection (a), the Administrator shall--
       (1) conduct not fewer than 4 auctions; and
       (2) schedule the auctions in a manner to ensure that--
       (A) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (B) the interval between each auction is of equal duration.
       (c) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

       Beginning on page 338, strike line 7 and all that follows 
     through page 340, line 21, and insert the following:

     SEC. 1121. AUCTIONS FOR TAX RELIEF.

       (a) Auctions.--
       (1) First period.--Not later than 330 days before the 
     beginning of each of calendar years 2012 and 2013, the 
     Administrator shall auction 1 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year.
       (2) Second period.--Not later than 330 days before the 
     beginning of each of calendar years 2014 through 2017, the 
     Administrator shall auction 0.75 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year.
       (3) Third period.--Not later than 330 days before the 
     beginning of each of calendar years 2018 through 2030, the 
     Administrator shall auction 1 percent of the emission 
     allowances established pursuant to section 201(a) for that 
     calendar year.
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

       Beginning on page 426, strike line 1 and all that follows 
     through page 442, line 2, and insert the following:

     SEC. 1312. AUCTIONS FOR TAX RELIEF.

       (a) Auctions.--For each of calendar years 2012 through 
     2050, the Administrator shall auction a quantity of 
     allowances described in subsection (b) established pursuant 
     to section 201(a) for that calendar year.
       (b) Quantity of Allowances.--The quantity of allowances 
     referred to in subsection (a) is, with respect to each 
     applicable calendar year--
       (1) 1 percent of the quantity of emission allowances 
     established for that calendar year; and
       (2) of the quantity of offset allowances established for 
     that calendar year--
       (A) the number of offset allowances that the Administrator 
     determines to be appropriate; but
       (B) in no case more than 10 percent of the quantity of 
     emission allowances established for that calendar year.
       (c) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.

     SEC. 1313. ADDITIONAL AUCTIONS.

       (a) Auctions.--
       (1) In general.--For each of calendar years 2012 through 
     2017, the Administrator shall auction 0.5 percent of the 
     emission allowances established pursuant to section 201(a) 
     for the calendar year, in accordance with paragraph (2).
       (2) Number; frequency.--For each calendar year during the 
     period described in paragraph (1), the Administrator shall--
       (A) conduct not fewer than 4 auctions; and
       (B) schedule the auctions in a manner to ensure that--
       (i) each auction takes place during the period beginning 
     330 days before, and ending 60 days before, the beginning of 
     each calendar year; and
       (ii) the interval between each auction is of equal 
     duration.
       (b) Use of Proceeds.--The Administrator shall deposit all 
     proceeds of auctions conducted pursuant to this section, 
     immediately on receipt of those proceeds, in the Tax Relief 
     Fund, for use in accordance with section 584.
                                 ______
                                 
  SA 4851. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:


[[Page S5115]]


       At the end of title XII, add the following:

Subtitle E--Carbon Output Reduction Plans for National Forest Land and 
                       Resource Management Areas

     SEC. 1241. CARBON OUTPUT REDUCTION PLANS.

       (a) Definitions.--In this section:
       (1) Management plan.--The term ``management plan'' means--
       (A) a National Forest management plan under--
       (i) the Forest and Rangeland Renewable Resources Planning 
     Act of 1974 (16 U.S.C. 1600 et seq.); and
       (ii) the National Forest Management Act of 1976 (16 U.S.C. 
     1600 et seq.); and
       (B) a resource management plan under the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.).
       (2) Secretary.--The term ``Secretary'' means--
       (A) with respect to subsection (b), the Secretary of 
     Agriculture (acting through the Chief of the Forest Service); 
     and
       (B) with respect to subsection (c) the Secretary of the 
     Interior (acting through the Director of the Bureau of Land 
     Management).
       (b) National Forest Land Managed by the Secretary of 
     Agriculture.--
       (1) Carbon output reduction plans.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, in accordance with subparagraph (B), 
     the Secretary shall require the forest supervisor of each 
     National Forest to amend the management plan of the National 
     Forest under the jurisdiction of the forest supervisor to 
     develop and carry out a carbon output reduction plan to 
     reduce the quantity of carbon output generated by hazardous 
     fuels and wildfires, to the maximum extent practicable, by--
       (i) as of January 1, 2015, 10 percent;
       (ii) as of January 1, 2020, 25 percent; and
       (iii) as of January 1, 2050, 50 percent.
       (B) Carbon output baseline.--
       (i) In general.--In developing a carbon output reduction 
     plan under subparagraph (A), the forest supervisor of each 
     National Forest shall include in the carbon output reduction 
     plan applicable to the National Forest under the jurisdiction 
     of the forest supervisor a carbon output baseline developed 
     in accordance with clause (ii).
       (ii) Baseline methodology.--

       (I) In general.--In developing a carbon output baseline 
     under clause (i), each forest supervisor of a National Forest 
     shall base the carbon output baseline for the National Forest 
     on the average annual quantity of carbon output generated by 
     the National Forest during the most recent 5 calendar-year 
     period for which data are available.
       (II) Prescribed burns and wildland fire use fires.--In 
     developing a carbon output baseline under clause (i), each 
     forest supervisor of a National Forest shall not consider 
     carbon output generated as the result of prescribed burns or 
     wildland fire use fires in the National Forest.

       (iii) Use.--Each forest supervisor of a National Forest 
     shall use the carbon output baseline applicable to the 
     National Forest to determine the reduction of carbon output 
     generated by the National Forest for each calendar year.
       (2) Authorized forms of payment.--In carrying out a carbon 
     output reduction plan under paragraph (1), a forest 
     supervisor of a National Forest may enter into a contract 
     with an appropriate individual or entity to allow the 
     individual or entity to perform services in exchange for any 
     form of payment authorized by the forest supervisor 
     (including any goods-for-services contract or stewardship 
     contract).
       (c) Resource Management Areas Managed by the Secretary of 
     the Interior.--
       (1) Carbon output reduction plans.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, in accordance with subparagraph (B), 
     the Secretary shall require the district director of each 
     resource management area that the Secretary determines to be 
     extensively forested to amend the management plan of the 
     resource management area under the jurisdiction of the 
     district director to develop and carry out a carbon output 
     reduction plan to reduce the quantity of carbon output 
     generated by hazardous fuels and wildfires, to the maximum 
     extent practicable, by--
       (i) as of January 1, 2015, 10 percent;
       (ii) as of January 1, 2020, 25 percent; and
       (iii) as of January 1, 2050, 50 percent.
       (B) Carbon output baseline.--
       (i) In general.--In developing a carbon output reduction 
     plan under subparagraph (A), the district director of each 
     resource management area described in subparagraph (A) shall 
     include in the carbon output reduction plan applicable to the 
     resource management area under the jurisdiction of the 
     district director a carbon output baseline developed in 
     accordance with clause (ii).
       (ii) Baseline methodology.--

       (I) In general.--In developing a carbon output baseline 
     under clause (i), each district director of a resource 
     management area described in subparagraph (A) shall base the 
     carbon output baseline for the resource management area on 
     the average annual quantity of carbon output generated by the 
     resource management area during the most recent 5 calendar-
     year period for which data are available.
       (II) Prescribed burns and wildland fire use fires.--In 
     developing a carbon output baseline under clause (i), each 
     district director of a resource management area described in 
     subparagraph (A) shall not consider carbon output generated 
     as the result of prescribed burns or wildland fire use fires 
     in the resource management area.

       (iii) Use.--Each district director of a resource management 
     area described in subparagraph (A) shall use the carbon 
     output baseline applicable to the resource management area to 
     determine the reduction of carbon output generated by the 
     resource management area for each calendar year.
       (2) Authorized forms of payment.--In carrying out a carbon 
     output reduction plan under paragraph (1), a district 
     director of a resource management area may enter into a 
     contract with an appropriate individual or entity to allow 
     the individual or entity to perform services in exchange for 
     any form of payment authorized by the district director 
     (including any goods-for-services contract or stewardship 
     contract).
                                 ______
                                 
  SA 4852. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike the table that begins on page 183, after line 18, 
     and ends on page 184, before line 1, and insert the 
     following:


------------------------------------------------------------------------
                                             Percentage for distribution
                                                among carbon-intensive
               Calendar Year                 manufacturing facilities in
                                                    United States
------------------------------------------------------------------------
2012.......................................  12
2013.......................................  12
2014.......................................  12
2015.......................................  12
2016.......................................  12
2017.......................................  12
2018.......................................  12
2019.......................................  12
2020.......................................  12
2021.......................................  12
2022.......................................  11
2023.......................................  10
2024.......................................  8
2025.......................................  7
2026.......................................  6
2027.......................................  5
2028.......................................  4
2029.......................................  3
2030.......................................  2.
------------------------------------------------------------------------


       On page 184, line 16, insert ``and nonfuel minerals'' after 
     ``metals''.

       Strike the table that begins on page 458, after line 5, and 
     insert the following:


------------------------------------------------------------------------
                                   Percentage for auction for Deficit
        Calendar year                        Reduction Fund
------------------------------------------------------------------------
2012.........................  4.75
2013.........................  4.75
2014.........................  4.75
2015.........................  5.50
2016.........................  5.75
2017.........................  5.75
2018.........................  6.25
2019.........................  6
2020.........................  7
2021.........................  8.5
2022.........................  7.75
2023.........................  8.75
2024.........................  9.75
2025.........................  9.75
2026.........................  11.75
2027.........................  11.75
2028.........................  11.75
2029.........................  12.75
2030.........................  12.75
2031.........................  19.75
2032.........................  17.75
2033.........................  17.75
2034.........................  16.75
2035.........................  16.75
2036.........................  16.75
2037.........................  16.75
2038.........................  16.75
2039.........................  16.75
2040.........................  16.75
2041.........................  16.75
2042.........................  16.75
2043.........................  16.75
2044.........................  16.75
2045.........................  16.75
2046.........................  16.75
2047.........................  16.75
2048.........................  16.75
2049.........................  16.75
2050.........................  16.75.
------------------------------------------------------------------------

                                 ______
                                 
  SA 4853. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of subtitle B of title X, add the following:

[[Page S5116]]

     SEC. 10__. ADVANCED COAL AND SEQUESTRATION TECHNOLOGIES 
                   PROGRAM.

       (a) Advanced Coal Technologies.--
       (1) Definitions.--In this section:
       (A) Advanced coal generation technology.--Subject to 
     paragraph (2), the term ``advanced coal generation 
     technology'' means an advanced coal-fueled power plant 
     technology that meets 1 of the following performance 
     standards for limiting carbon dioxide emissions from an 
     electric generation unit on an annual average basis, as 
     determined by the Climate Change Technology Board:
       (i) For an electric generation unit that is not a new 
     entrant and that commences operation of carbon capture and 
     sequestration equipment not later than December 31, 2015--

       (I) treatment of at least the quantity of flue gas 
     equivalent to 100 megawatts of the output of the electric 
     generation unit; and
       (II) a capability of capturing and sequestering at least 85 
     percent of the carbon dioxide in that flue gas.

       (ii) For an electric generation unit that is not a new 
     entrant and that commences operation of carbon capture and 
     sequestration equipment after December 31, 2016, achievement 
     of an average annual emission rate of not more than 1,200 
     pounds of carbon dioxide per megawatt-hour of net electricity 
     generation, after subtracting the carbon dioxide that is 
     captured and sequestered.
       (iii) For a new entrant electric generation unit for which 
     construction of the unit commenced prior to July 1, 2018, 
     achievement of an average annual emission rate of not more 
     than 800 pounds of carbon dioxide per megawatt-hour of net 
     electricity generation, after subtracting the carbon dioxide 
     that is captured and sequestered.
       (iv) For a new entrant electric generation unit for which 
     construction of the unit commenced on or after July 1, 2018, 
     achievement of an average annual emissions rate of not more 
     than 350 pounds of carbon dioxide per megawatt-hour of net 
     electricity generation, after subtracting the carbon dioxide 
     that is captured and sequestered.
       (v) For any unit at a covered entity that is not an 
     electric generation unit, achievement of an average annual 
     emission rate that is achieved by the capture and 
     sequestration of a minimum of 85 percent of the total carbon 
     dioxide emissions produced by the unit.
       (B) Commenced.--The term ``commenced'', with respect to 
     construction, means that an owner or operator has--
       (i) obtained the necessary permits to carry out a 
     continuous program of construction; and
       (ii) entered into a binding contractual obligation, with 
     substantial financial penalties for cancellation, to 
     undertake such a program.
       (C) Construction.--The term ``construction'', with respect 
     to a carbon capture and sequestration project, means the 
     fabrication, erection, or installation of technology for the 
     project.
       (2) Adjustment of performance standards.--
       (A) In general.--The Climate Change Technology Board may 
     adjust the emission performance standards for a carbon 
     capture and sequestration project under paragraph (1)(A) for 
     an electric generation unit that uses subbituminous coal, 
     lignite, or petroleum coke in significant amounts.
       (B) Requirement.--If the Climate Change Technology Board 
     adjusts a standard under subparagraph (A), the adjusted 
     performance standard for the applicable project shall 
     prescribe an annual emission rate that requires the project 
     to achieve an equivalent reduction from uncontrolled carbon 
     dioxide emissions levels from the use of subbituminous coal, 
     lignite, or petroleum coke, as compared to the emissions the 
     project would have achieved if that unit had combusted only 
     bituminous coal during the particular calendar year.
       (C) Applicability of bonus allowance adjustment ratio.--The 
     bonus allowance adjustment ratio under section 1013(b) shall 
     apply to an electric generation unit described in paragraph 
     (1)(A)(i) only with respect to the megawatt-hours and carbon 
     dioxide emissions attributable to the treated share of the 
     flue gas of the electric generation unit.
       (3) Demonstration projects and deployment incentives.--
       (A) In general.--The Climate Change Technology Board shall 
     use not less than $40,000,000,000 of amounts made available 
     from the sale of allowances under the program to carry out 
     this section to support demonstration projects using advanced 
     coal generation technology, including retrofit technology 
     that could be deployed on existing coal generation 
     facilities, and to provide financial incentives to facilitate 
     the deployment of not more than 20 gigawatts of advanced coal 
     generation technologies.
       (B) Certain projects.--Of the amounts described in 
     subparagraph (A), the Climate Change Technology Board shall 
     make available up to 25 percent for projects that meet the 
     carbon dioxide emission performance standard under paragraph 
     (1)(A)(i).
       (C) Administration.--In providing incentives under this 
     paragraph, the Climate Change Technology Board shall--
       (i) provide appropriate incentives for regulated investor-
     owned utilities, municipal utilities, electric cooperatives, 
     and independent power producers, as determined by the 
     Secretary of Energy; and
       (ii) ensure that a range of the domestic coal types is 
     employed in the facilities that receive incentives under this 
     paragraph.
       (D) Funding requirements.--
       (i) Sequestration activities.--The Climate Change 
     Technology Board shall provide incentives only to projects 
     that meet 1 of the emission performance standards for 
     limiting carbon dioxide described in clause (ii) or (iii) of 
     paragraph (1)(A).
       (ii) Projects using certain coals.--In providing incentives 
     under this paragraph, the Climate Change Technology Board 
     shall set aside not less than 25 percent of any amounts made 
     available to carry out this subsection for projects using 
     coal with an energy content of not more than 10,000 British 
     thermal units per pound.
       (4) Storage agreement required.--The Climate Change 
     Technology Board shall require a binding storage agreement 
     for the carbon dioxide captured in a project under this 
     subsection in a geological storage project permitted by the 
     Administrator under regulations promulgated pursuant to 
     section 1421(d) of the Safe Drinking Water Act (42 U.S.C. 
     300h(d)).
       (5) Distribution of funds.--
       (A) Requirement.--The Climate Change Technology Board shall 
     make awards under this section in a manner that maximizes the 
     avoidance or reduction of greenhouse gas emissions.
       (B) Incentives.--A project that receives an award under 
     this subsection may elect 1 of the following financial 
     incentives:
       (i) A loan guarantee.
       (ii) A cost-sharing grant to cover the incremental cost of 
     installing and operating carbon capture and storage equipment 
     (for which utilization costs may be covered for the first 10 
     years of operation).
       (iii) Production payments of not more than 1.5 cents per 
     kilowatt-hour of electric output during the first 10 years of 
     commercial service of the project.
       (6) Limitation.--A project may not receive an award under 
     this subsection if the project receives an award under 
     section 4402.
       (b) Sequestration.--
       (1) In general.--The Climate Change Technology Board shall 
     use not less than $10,000,000,000 of amounts made available 
     from the sale of allowances to carry out this section for 
     large-scale geological carbon storage demonstration projects 
     that store carbon dioxide captured from electric generation 
     units using coal gasification or other advanced coal 
     combustion processes, including units that receive assistance 
     under subsection (a).
       (2) Project capital and operating costs.--
       (A) In general.--The Climate Change Technology Board shall 
     provide assistance under this subsection to reimburse the 
     project owner for a percentage of the incremental project 
     capital and operating costs of the project that are 
     attributable to carbon capture and sequestration, as the 
     Secretary determines to be appropriate.
       (B) Certain projects.--Of the assistance provided under 
     subparagraph (A), the Climate Change Technology Board shall 
     make available up to 25 percent for projects that meet the 
     carbon dioxide emissions performance standard under 
     subsection (a)(1)(A)(i).
                                 ______
                                 
  SA 4854. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 381, between lines 9 and 10, insert the following:

     SEC. 1238. RECOVERY PLANS.

       Nothing in this subtitle requires the Secretary of the 
     Interior (or the Secretary of Commerce, with respect to any 
     species for which the Secretary of Commerce has program 
     responsibilities under the Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.)) to update any recovery plan developed 
     under section 4(f) of the At Act 916 U.S.C. 1533(f0 that was 
     approved before the date of enactment of this Act.
                                 ______
                                 
  SA 4855. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title V, add the following:

                  Subtitle J--Small Business Refiners

     SEC. 591. DEFINITION OF SMALL BUSINESS REFINER.

       In this subtitle:
       (1) In general.--The term ``small business refiner'' means 
     a refiner that meets the applicable Federal refinery capacity 
     and employee limitations criteria described in section 45H 
     (c) of the Internal Revenue Code of 1986 (in effect on the 
     date of enactment of this Act).
       (2) Exclusion.--The term ``small business refiner'' does 
     not include an entity formed by a merger or acquisition 
     involving a refining entity that--
       (A) does not meet the applicable criteria referred to in 
     paragraph (1); and
       (B) occurred after December 31, 2007.

     SEC. 592. ALLOCATIONS.

       (a) Calendar Years 2012 Through 2017.--Notwithstanding any 
     other provision of this

[[Page S5117]]

     Act, for each of calendar years 2012 through 2017, the 
     Administrator shall--
       (1) adjust the allocations under subtitles E and F to 
     owners and operators of carbon-intensive manufacturing 
     facilities and fossil fuel-fired electric power generating 
     facilities, respectively, by \1/2\ percent; and
       (2) allocate 1 percent of the emission allowances 
     established under section 201(a) for those facilities to 
     small business refiners in accordance with this subtitle.
       (b) Calendar Years 2018 Through 2030.--Notwithstanding any 
     other provision of this Act, for each of calendar years 2012 
     through 2017, the Administrator shall--
       (1) adjust the allocations under subtitle G to owners and 
     operators of facilities that manufacture petroleum-based 
     liquid or gaseous fuel by 1 percent; and
       (2) allocate 1 percent of the emission allowances 
     established under section 201(a) for those facilities to 
     small business refiners in accordance with this subtitle.

     SEC. 593. TREATMENT OF EXPANSIONS.

       Emissions of carbon dioxide equivalent from transportation 
     fuel resulting from an expansion in capacity by a small 
     business refiner that qualifies under section 179(c) of the 
     Internal Revenue Code of 1986 shall be added to the 2006 
     carbon dioxide equivalents of the small business refiner for 
     the purpose of calculating the quantity of emission 
     allowances to be distributed to the small business refiner 
     under this subtitle.
                                 ______
                                 
  SA 4856. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title XVII, add the following:

          Subtitle H--Atmospheric Removal of Greenhouse Gases

     SEC. 1771. SHORT TITLE.

       This subtitle may be cited as the ``Greenhouse Gas Emission 
     Atmospheric Removal Act'' or the ``GEAR Act''.

     SEC. 1772. STATEMENT OF POLICY.

       It is the policy of the United States to provide incentives 
     to encourage the development and implementation of technology 
     to permanently remove greenhouse gases from the atmosphere on 
     a significant scale.

     SEC. 1773. DEFINITIONS.

       In this subtitle:
       (1) Commission.--The term ``Commission'' means the 
     Greenhouse Gas Emission Atmospheric Removal Commission 
     established by section 1775(a).
       (2) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;
       (D) sulfur hexafluoride;
       (E) a hydrofluorocarbon;
       (F) a perfluorocarbon; and
       (G) any other gas that the Commission determines is 
     necessary to achieve the purposes of this subtitle.
       (3) Intellectual property.--The term ``intellectual 
     property'' means--
       (A) an invention that is patentable under title 35, United 
     States Code; and
       (B) any patent on an invention described in subparagraph 
     (A).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 1774. GREENHOUSE GAS EMISSION ATMOSPHERIC REMOVAL 
                   PROGRAM.

       The Secretary, acting through the Commission, shall provide 
     to public and private entities, on a competitive basis, 
     financial awards for the achievement of milestones in 
     developing and applying technology that could significantly 
     slow or reverse the accumulation of greenhouse gases in the 
     atmosphere by permanently capturing or sequestrating those 
     gases without significant countervailing harmful effects.

     SEC. 1775. GREENHOUSE GAS EMISSION ATMOSPHERIC REMOVAL 
                   COMMISSION.

       (a) Establishment.--There is established within the 
     Department of Energy a commission to be known as the 
     ``Greenhouse Gas Emission Atmospheric Removal Commission''.
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 11 
     members appointed by the President, by and with the advice 
     and consent of the Senate, who shall provide expertise in--
       (A) climate science;
       (B) physics;
       (C) chemistry;
       (D) biology;
       (E) engineering;
       (F) economics;
       (G) business management; and
       (H) such other disciplines as the Commission determines to 
     be necessary to achieve the purposes of this subtitle.
       (2) Term; vacancies.--
       (A) Term.--A member of the Commission shall serve for a 
     term of 6 years.
       (B) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (3) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (4) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (5) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (6) Chairperson and vice chairperson.--The Commission shall 
     select a Chairperson and Vice Chairperson from among the 
     members of the Commission.
       (7) Compensation.--A member of the Commission shall be 
     compensated at level III of the Executive Schedule.
       (c) Duties.--The Commission shall--
       (1) subject to subsection (d), develop specific 
     requirements for--
       (A) the competition process;
       (B) minimum performance standards;
       (C) monitoring and verification procedures; and
       (D) the scale of awards for each milestone identified under 
     paragraph (3);
       (2) establish minimum levels for the capture or net 
     sequestration of greenhouse gases that are required to be 
     achieved by a public or private entity to qualify for a 
     financial award described in paragraph (3);
       (3) in coordination with the Secretary, offer those 
     financial awards to public and private entities that 
     demonstrate--
       (A) a design document for a successful technology;
       (B) a bench scale demonstration of a technology;
       (C) technology described in subparagraph (A) that--
       (i) is operational at demonstration scale; and
       (ii) achieves significant greenhouse gas reductions; and
       (D) operation of technology on a commercially viable scale 
     that meets the minimum levels described in paragraph (2); and
       (4) submit to Congress--
       (A) an annual report that describes the progress made by 
     the Commission and recipients of financial awards under this 
     section in achieving the demonstration goals established 
     under paragraph (3); and
       (B) not later than 1 year after the date of enactment of 
     this Act, a report that describes the levels of funding that 
     are necessary to achieve the purposes of this subtitle.
       (d) Public Participation.--In carrying out subsection 
     (c)(1), the Commission shall--
       (1) provide notice of and, for a period of at least 60 
     days, an opportunity for public comment on, any draft or 
     proposed version of the requirements described in subsection 
     (c)(1); and
       (2) take into account public comments received in 
     developing the final version of those requirements.
       (e) Peer Review.--No financial award may be provided under 
     this subtitle until such time as the proposal for which the 
     award is sought has been peer reviewed in accordance with 
     such standards for peer review as the Commission shall 
     establish.

     SEC. 1776. INTELLECTUAL PROPERTY CONSIDERATIONS.

       (a) In General.--Title to any intellectual property arising 
     from a financial award provided under this subtitle shall 
     vest in 1 or more entities that are incorporated in the 
     United States.
       (b) Reservation of License.--The United States--
       (1) may reserve a nonexclusive, nontransferable, 
     irrevocable, paid-up license, to have practiced for or on 
     behalf of the United States, in connection with any 
     intellectual property described in subsection (a); but
       (2) shall not, in the exercise of a license reserved under 
     paragraph (1), publicly disclose proprietary information 
     relating to the license.
       (c) Transfer of Title.--Title to any intellectual property 
     described in subsection (a) shall not be transferred or 
     passed, except to an entity that is incorporated in the 
     United States, until the expiration of the first patent 
     obtained in connection with the intellectual property.

     SEC. 1777. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this subtitle.

     SEC. 1778. TERMINATION OF AUTHORITY.

       The Commission and all authority of the Commission provided 
     under this subtitle terminate on December 31, 2020.
                                 ______
                                 
  SA 4857. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 304, strike line 19 and insert the following:
       (a) In General.--Not later than 120 days after the date of 
     enactment
       On page 304, after line 25, add the following:
       (b) Additional Funds.--
       (1) In general.--For the period of calendar years 2009 
     through 2018, of the proceeds of the auctions conducted under 
     section 1402(a), $20,000,000,000 shall be allocated by the 
     Administrator to the Kick-Start Program in accordance with 
     the schedule described in paragraph (2).
       (2) Schedule.--
       (A) In general.--Subject to subparagraph (B), of the 
     $20,000,000,000 described in paragraph (1), the Administrator 
     shall allocate--

[[Page S5118]]

       (i) $1,200,000,000 in calendar year 2009;
       (ii) $1,100,000,000 in calendar year 2010;
       (iii) $900,000,000 in calendar year 2011;
       (iv) $3,100,000,000 in 2012;
       (v) $3,000,000,000 in each of calendar years 2013 and 2014; 
     and
       (vi) $2,000,000,000 in each of calendar years 2015 through 
     2018.
       (B) Increase in allocation.--If any portion of the funds to 
     be allocated under subparagraph (A) for a calendar year is 
     unavailable for that allocation, that portion shall be added 
     to the amount to be allocated in the subsequent calendar 
     year.
       On page 305, line 19, insert ``research, development, 
     demonstration, and'' before ``early deployment''.
       Beginning on page 305, strike line 22 and all that follows 
     through page 306, line 2, and insert the following:
       (b) Goals.--The Board shall design and operate the Kick-
     Start Program with the goals of--
       (1) advancing additional advanced coal research and 
     development innovations for capturing and storing carbon 
     dioxide; and
       (2) rapidly bringing into operation in the United States 
     not fewer than 5 commercial facilities that capture and 
     geologically sequester carbon released when coal is used to 
     generate electricity.
       (c) Kick-Start Components.--
       (1) Research and development.--
       (A) In general.--For each fiscal year, the Secretary of 
     Energy shall use 50 percent of the amounts in the Fund 
     derived from auctions conducted under section 1002(b) to 
     carry out the programs established under sections 962 and 963 
     of the Energy Policy Act of 2005 (42 U.S.C. 16292, 16293).
       (B) Requirements.--In carrying out the programs, the 
     Secretary of Energy shall provide for the investigation of a 
     wide variety of technologies for carbon capture for--
       (i) retrofitting of existing facilities; and
       (ii) installation of carbon-capture technology on next-
     generation coal-fueled facilities.
       (2) Deployment.--The Secretary of Energy shall use 50 
     percent of the amounts in the Fund derived from auctions 
     conducted under section 1002(b) to carry out a program to 
     facilitate the deployment of the technologies described in 
     paragraph (1)(B).
       On page 306, line 3, strike ``(c)'' and insert ``(d)''.
       On page 306, strike lines 4 through 9 and insert the 
     following:
     Program on--
       (1) the ``Early Deployment Fund'' recommendations contained 
     in the final report issued by the Advanced Coal Technology 
     Work Group of the Clean Air Act Advisory Committee of the 
     Environmental Protection Agency and dated January 29, 2008; 
     and
       (2) the programs established under sections 962 and 963 of 
     the Energy Policy Act of 2005 (42 U.S.C. 16292, 16293).
       (e) Coal Diversity.--The Kick-Start Program
       On page 306, line 13, strike ``(e)'' and insert ``(f)''.
       On page 306, line 17, strike ``(f)'' and insert ``(g)''.
       On page 457, line 13, insert ``and the Carbon Capture and 
     Sequestration Technology Fund established by section 1001'' 
     before the period at the end.
                                 ______
                                 
  SA 4858. Mrs. DOLE submitted an amendment intended to be proposed by 
her to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 341, strike lines 5 through 7 and insert the 
     following:
       (2) to reduce greenhouse gas emissions, the United States 
     should not rely on ethanol produced from corn and should rely 
     increasingly on advanced, clean, low-carbon fuels for 
     transportation.
                                 ______
                                 
  SA 4859. Mrs. DOLE submitted an amendment intended to be proposed by 
her to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 84, strike lines 13 and 14 and insert the 
     following:
       (ii) forest management activities inclusive of associated 
     recognized carbon pools, including--

       (I) forest product carbon sequestration;
       (II) afforestation; and
       (III) forest management activities that contribute to 
     forest carbon sequestration;

                                 ______
                                 
  SA 4860. Mrs. DOLE submitted an amendment intended to be proposed by 
her to the bill S. 3036, to direct the Administrator of the 
Environmental Protection Agency to establish a program to decrease 
emissions of greenhouse gases, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title XVII, add the following:

Subtitle H--Sense of the Senate Regarding the Need to Expedite Certain 
            Outer Continental Shelf Oil and Gas Lease Sales

     SEC. 1771. SENSE OF THE SENATE.

       (a) Findings.--The Senate finds that--
       (1) the citizens of the United States face economic 
     hardships due to high fuel costs;
       (2) the citizens of the United States rely on oil and gas 
     produced from resources located in the approximately 
     1,760,000,000 acres of the outer Continental Shelf;
       (3) the Secretary of the Interior (referred to in this 
     section as the ``Secretary''), in accordance with section 18 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1344), 
     has prepared, for calendar years 2007 through 2012, an oil 
     and gas leasing program (referred to in this section as the 
     ``5-year program'') indicating a 5-year schedule of lease 
     sales designed to best meet the energy needs of the United 
     States;
       (4) the 5-year program includes 21 lease sales in 8 areas, 
     including--
       (A) 4 areas located off of the coast of the State of 
     Alaska;
       (B) 1 area located off of the Atlantic Coast; and
       (C) 3 areas located in the Gulf of Mexico;
       (5) the analysis completed for the 5-year program has 
     indicated that implementation of the 5-year program would 
     result in--
       (A) the production of an estimated 10,000,000,000 barrels 
     of oil and 45,000,000,000,000 cubic feet of natural gas; and
       (B) the generation of $170,000,000,000 in net benefits for 
     the United States during the 40-year period beginning on the 
     date of implementation of the 5-year program; and
       (6) the United States should--
       (A) be less dependent on foreign oil; and
       (B) develop more domestic sources of energy.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that, as soon as practicable after the date of enactment of 
     this Act, the Secretary should expedite each remaining lease 
     sale included in the 5-year program regardless of the year 
     for which any particular lease sale is scheduled.
                                 ______
                                 
  SA 4861. Mrs. DOLE (for herself and Mr. Warner) submitted an 
amendment intended to be proposed by her to the bill S. 3036, to direct 
the Administrator of the Environmental Protection Agency to establish a 
program to decrease emissions of greenhouse gases, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 291, strike line 24 and all that follows 
     through page 292, line 16.
       On page 301, strike line 12 and insert the following:

     In making awards under this sub-
       On page 302, strike lines 6 through 22.
       Beginning on page 306, strike line 17 and all that follows 
     through page 307, line 9.
                                 ______
                                 
  SA 4862. Mrs. DOLE (for herself and Mr. Whitehouse) submitted an 
amendment intended to be proposed by her to the bill S. 3036, to direct 
the Administrator of the Environmental Protection Agency to establish a 
program to decrease emissions of greenhouse gases, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 251, strike lines 1 through 13 and insert the 
     following:
       (A) In general.--The term ``Coastal State'' means any State 
     or territory of the United States with a coastal zone 
     management plan or program that is approved under the Coastal 
     Zone Management Act of 1972 (16 U.S.C. 1451 et seq.).
       On page 251, line 14, strike ``(C)'' and insert ``(B)''.
       On page 254, strike lines 13 through 20 and insert the 
     following:
       (B) to identify and develop plans to protect, or, as 
     necessary or applicable, to relocate public facilities and 
     infrastructure, coastal resources of national significance, 
     public energy facilities, or other public water uses located 
     in the coastal watershed that are affected by climate change, 
     including the development of strategies that use natural 
     resources, such as natural buffer zones, natural shorelines, 
     and habitat protection or restoration, to mitigate risks and 
     impacts;
       On page 255, strike lines 23 and 24 and insert the 
     following:
       (v) coastal habitat loss;

                          ____________________