[Congressional Record (Bound Edition), Volume 155 (2009), Part 12]
[House]
[Pages 16514-16741]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1245
             AMERICAN CLEAN ENERGY AND SECURITY ACT OF 2009

  Mr. WAXMAN. Madam Speaker, pursuant to H. Res. 587, I call up the 
bill (H.R. 2454) to create clean-energy jobs, achieve energy 
independence, reduce global warming pollution and transition to a 
clean-energy economy, and ask for its immediate consideration in the 
House.

[[Page 16515]]

  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 587, in lieu of 
the amendment recommended by the Committee on Energy and Commerce 
printed in the bill, the amendment in the nature of a substitute 
consisting of the text of H.R. 2998, modified by the amendment printed 
in part A of House Report 111-185 is adopted and the bill, as amended, 
is considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 2998

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``American 
     Clean Energy and Security Act of 2009''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. International participation.

                         TITLE I--CLEAN ENERGY

   Subtitle A--Combined Efficiency and Renewable Electricity Standard

Sec. 101. Combined efficiency and renewable electricity standard.
Sec. 102. Clarifying State authority to adopt renewable energy 
              incentives.
Sec. 103. Federal renewable energy purchases.

              Subtitle B--Carbon Capture and Sequestration

Sec. 111. National strategy.
Sec. 112. Regulations for geologic sequestration sites.
``Sec. 813. Geologic sequestration sites.
Sec. 113. Studies and reports.
Sec. 114. Carbon capture and sequestration demonstration and early 
              deployment program.
Sec. 115. Commercial deployment of carbon capture and sequestration 
              technologies.
``Sec. 786. Commercial deployment of carbon capture and sequestration 
              technologies.
Sec. 116. Performance standards for coal-fueled power plants.
``Sec. 812. Performance standards for new coal-fired power plants.

                    Subtitle C--Clean Transportation

Sec. 121. Electric vehicle infrastructure.
Sec. 122. Large-scale vehicle electrification program.
Sec. 123. Plug-in electric drive vehicle manufacturing.
Sec. 124. Investment in clean vehicles.
Sec. 125. Advanced technology vehicle manufacturing incentive loans.
Sec. 126. Amendment to renewable fuels standard.
Sec. 127. Open fuel standard.
Sec. 128. Diesel emissions reduction.
Sec. 129. Loan guarantees for projects to construct renewable fuel 
              pipelines.
Sec. 130. Fleet vehicles.
Sec. 130A. Report on natural gas vehicle emissions reductions.

     Subtitle D--State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts.
Sec. 132. Support of State renewable energy and energy efficiency 
              programs.
Sec. 133. Support of Indian renewable energy and energy efficiency 
              programs.

                   Subtitle E--Smart Grid Advancement

Sec. 141. Definitions.
Sec. 142.  Assessment of Smart Grid cost effectiveness in products.
Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE 
              labels.
Sec. 144. Smart Grid peak demand reduction goals.
Sec. 145.  Reauthorization of energy efficiency public information 
              program to include Smart Grid information.
Sec. 146. Inclusion of Smart Grid features in appliance rebate program.

                   Subtitle F--Transmission Planning

Sec. 151. Transmission planning and siting.
Sec. 152. Net metering for Federal agencies.
Sec. 153. Support for qualified advanced electric transmission 
              manufacturing plants, qualified high efficiency 
              transmission property, and qualified advanced electric 
              transmission property.

            Subtitle G--Technical Corrections to Energy Laws

Sec. 161. Technical corrections to Energy Independence and Security Act 
              of 2007.
Sec. 162. Technical corrections to Energy Policy Act of 2005.

         Subtitle H--Energy and Efficiency Centers and Research

Sec. 171. Energy Innovation Hubs.
Sec. 172. Advanced energy research.
Sec. 173. Building Assessment Centers.
Sec. 174. Centers for Energy and Environmental Knowledge and Outreach.

             Subtitle I--Nuclear and Advanced Technologies

Sec. 181. Revisions to loan guarantee program authority.
Sec. 182. Purpose.
Sec. 183. Definitions.
Sec. 184. Clean energy investment fund.
Sec. 185. Energy technology deployment goals.
Sec. 186. Clean energy deployment administration.
Sec. 187. Direct support.
Sec. 188. Indirect support.
Sec. 189. Federal credit authority.
Sec. 190. General provisions.
Sec. 191. Conforming amendments.

                       Subtitle J--Miscellaneous

Sec. 195. Increased hydroelectric generation at existing Federal 
              facilities.
Sec. 196. Clean technology business competition grant program.
Sec. 197. National Bioenergy Partnership.
Sec. 198. Office of Consumer Advocacy.
Sec. 199. Development corporation for renewable power borrowing 
              authority.
Sec. 199A. Study.

                      TITLE II--ENERGY EFFICIENCY

            Subtitle A--Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes.
Sec. 202. Building retrofit program.
Sec. 203. Energy efficient manufactured homes.
Sec. 204. Building energy performance labeling program.
Sec. 205. Tree planting programs.
Sec. 206. Energy efficiency for data center buildings.
Sec. 207. Community building code.
Sec. 208. Solar energy systems building permit requirement for receipt 
              of community development block grant funds.

     Subtitle B--Lighting and Appliance Energy Efficiency Programs

Sec. 211. Lighting efficiency standards.
Sec. 212. Other appliance efficiency standards.
Sec. 213. Appliance efficiency determinations and procedures.
Sec. 214. Best-in-Class Appliances Deployment Program.
Sec. 215. WaterSense.
Sec. 216. Federal procurement of water efficient products.
Sec. 216A. Transmission planning.
Sec. 216B. Siting and construction in the western interconnection.
Sec. 217. Water efficient product rebate programs.
Sec. 218. Certified stoves program.
Sec. 219. Energy Star standards.

                 Subtitle C--Transportation Efficiency

Sec. 221. Emissions standards.

                        ``Part B--Mobile Sources

``Sec. 821. Greenhouse gas emission standards for mobile sources.
Sec. 222. Greenhouse gas emissions reductions through transportation 
              efficiency.

                   ``Part D--Transportation Emissions

``Sec. 841. Greenhouse gas emissions reductions through transportation 
              efficiency.
Sec. 223. SmartWay transportation efficiency program.
``Sec. 822. SmartWay transportation efficiency program.
Sec. 224. State vehicle fleets.

           Subtitle D--Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards.
Sec. 242. Electric and thermal waste energy recovery award program.
Sec. 243. Clarifying election of waste heat recovery financial 
              incentives.
Sec. 244. Motor market assessment and commercial awareness program.
Sec. 245. Motor efficiency rebate program.

   Subtitle E--Improvements in Energy Savings Performance Contracting

Sec. 251. Energy savings performance contracts.

                    Subtitle F--Public Institutions

Sec. 261. Public institutions.
Sec. 262. Community energy efficiency flexibility.
Sec. 263. Small community joint participation.
Sec. 264. Low income community energy efficiency program.
Sec. 265. Consumer behavior research.

                       Subtitle G--Miscellaneous

Sec. 271. Energy efficient information and communications technologies.
Sec. 272. National energy efficiency goals.
Sec. 273. Affiliated island energy independence team.
Sec. 274. Product carbon disclosure program.

              TITLE III--REDUCING GLOBAL WARMING POLLUTION

Sec. 301. Short title.

             Subtitle A--Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution.

        ``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

     ``Part A--Global Warming Pollution Reduction Goals and Targets

``Sec. 701. Findings and purpose.

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``Sec. 702. Economy-wide reduction goals.
``Sec. 703. Reduction targets for specified sources.
``Sec. 704. Supplemental pollution reductions.
``Sec. 705. Review and program recommendations.
``Sec. 706. National Academy review.
``Sec. 707. Presidential response and recommendations.

       ``Part B--Designation and Registration of Greenhouse Gases

``Sec. 711. Designation of greenhouse gases.
``Sec. 712. Carbon dioxide equivalent value of greenhouse gases.
``Sec. 713. Greenhouse gas registry.

                        ``Part C--Program Rules

``Sec. 721. Emission allowances.
``Sec. 722. Prohibition of excess emissions.
``Sec. 723. Penalty for noncompliance.
``Sec. 724. Trading.
``Sec. 725. Banking and borrowing.
``Sec. 726. Strategic reserve.
``Sec. 727. Permits.
``Sec. 728. International emission allowances.

                           ``Part D--Offsets

``Sec. 731. Offsets Integrity Advisory Board.
``Sec. 732. Establishment of offsets program.
``Sec. 733. Eligible project types.
``Sec. 734. Requirements for offset projects.
``Sec. 735. Approval of offset projects.
``Sec. 736. Verification of offset projects.
``Sec. 737. Issuance of offset credits.
``Sec. 738. Audits.
``Sec. 739. Program review and revision.
``Sec. 740. Early offset supply.
``Sec. 741. Environmental considerations.
``Sec. 742. Trading.
``Sec. 743. International offset credits.

 ``Part E--Supplemental Emissions Reductions From Reduced Deforestation

``Sec. 751. Definitions.
``Sec. 752. Findings.
``Sec. 753. Supplemental emissions reductions through reduced 
              deforestation.
``Sec. 754. Requirements for international deforestation reduction 
              program.
``Sec. 755. Reports and reviews.
``Sec. 756. Legal effect of part.
Sec. 312. Definitions.
``Sec. 700. Definitions.

                 Subtitle B--Disposition of Allowances

Sec. 321. Disposition of allowances for global warming pollution 
              reduction program.

                  ``Part H--Disposition of Allowances

``Sec. 781. Allocation of allowances for supplemental reductions.
``Sec. 782. Allocation of emission allowances.
``Sec. 783. Electricity consumers.
``Sec. 784. Natural gas consumers.
``Sec. 785. Home heating oil, propane, and kerosene consumers.
``Sec. 787. Allocations to refineries.
``Sec. 788. [SECTION RESERVED].
``Sec. 789. Climate change consumer refunds.
``Sec. 790. Exchange for State-issued allowances.
``Sec. 791. Auction procedures.
``Sec. 792. Auctioning allowances for other entities.
``Sec. 793. Establishment of funds.
``Sec. 794. Oversight of allocations.

            Subtitle C--Additional Greenhouse Gas Standards

Sec. 331. Greenhouse gas standards.

           ``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

``Sec. 801. Definitions.

                 ``Part A--Stationary Source Standards

``Sec. 811. Standards of performance.

                ``Part C--Exemptions From Other Programs

``Sec. 831. Criteria pollutants.
``Sec. 832. International air pollution.
``Sec. 833. Hazardous air pollutants.
``Sec. 834. New source review.
``Sec. 835. Title V permits.
Sec. 332. HFC Regulation.
Sec. 333. Black carbon.

                         ``Part E--Black Carbon

``Sec. 851. Black carbon.
Sec. 334. States.
Sec. 335. State programs.

                        ``Part F--Miscellaneous

``Sec. 861. State programs.
``Sec. 862. Grants for support of air pollution control programs.
Sec. 336. Enforcement.
Sec. 337. Conforming amendments.
Sec. 338. Davis-Bacon compliance.
Sec. 339. National strategy for domestic biological carbon 
              sequestration.

                  Subtitle D--Carbon Market Assurance

Sec. 341. Carbon market assurance.
Sec. 342. Carbon derivative markets.

                Subtitle E--Additional Market Assurance

Sec. 351. Regulation of certain transactions in derivatives involving 
              energy commodities.
Sec. 352. No effect on authority of the Federal Energy Regulatory 
              Commission.
Sec. 353. Inspector General of the Commodity Futures Trading 
              Commission.
Sec. 354. Settlement and clearing through registered derivatives 
              clearing organizations.
Sec. 355. Limitation on eligibility to purchase a credit default swap.
Sec. 356. Transaction fees.
Sec. 357. No effect on antitrust law or authority of the Federal Trade 
              Commission.
Sec. 358. Effect of derivatives regulatory reform legislation.
Sec. 359. Cease-and-desist authority.
Sec. 360. Presidential review of regulations.

           TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

      Subtitle A--Ensuring Real Reductions in Industrial Emissions

Sec. 401. Ensuring real reductions in industrial emissions.

       ``Part F--Ensuring Real Reductions in Industrial Emissions

``Sec. 761. Purposes.
``Sec. 762. International negotiations.
``Sec. 763. Definitions.

             ``subpart 1--emission allowance rebate program

``Sec. 764. Eligible industrial sectors.
``Sec. 765. Distribution of emission allowance rebates.

          ``subpart 2--international reserve allowance program

``Sec. 766. International reserve allowance program.

                ``subpart 3--presidential determination

``Sec. 767. Presidential reports and determinations.

              Subtitle B--Green Jobs and Worker Transition

                           Part 1--Green Jobs

Sec. 421. Clean energy curriculum development grants.
Sec. 422. Increased funding for energy worker training program.

          Part 2--Climate Change Worker Adjustment Assistance

Sec. 425. Petitions, eligibility requirements, and determinations.
Sec. 426. Program benefits.
Sec. 427. General provisions.

                    Subtitle C--Consumer Assistance

Sec. 431. Energy refund program.
Sec. 432. Modification of earned income credit amount for individuals 
              with no qualifying children.
Sec. 433. Protection of Social Security and Medicare trust funds.

                 Subtitle D--Exporting Clean Technology

Sec. 441. Findings and purposes.
Sec. 442. Definitions.
Sec. 443. Governance.
Sec. 444. Determination of eligible countries.
Sec. 445. Qualifying activities.
Sec. 446. Assistance.

                 Subtitle E--Adapting to Climate Change

                      Part 1--Domestic Adaptation

         subpart a--national climate change adaptation program

Sec. 451. Global change research and data management.
Sec. 452. National Climate Service.
Sec. 453. State programs to build resilience to climate change impacts.

              subpart b--public health and climate change

Sec. 461. Sense of Congress on public health and climate change.
Sec. 462. Relationship to other laws.
Sec. 463. National strategic action plan.
Sec. 464. Advisory board.
Sec. 465. Reports.
Sec. 466. Definitions.
Sec. 467. Climate Change Health Protection and Promotion Fund.

                 subpart c--natural resource adaptation

Sec. 471. Purposes.
Sec. 472. Natural resources climate change adaptation policy.
Sec. 473. Definitions.
Sec. 474. Council on Environmental Quality.
Sec. 475. Natural Resources Climate Change Adaptation Panel.
Sec. 476. Natural Resources Climate Change Adaptation Strategy.
Sec. 477. Natural resources adaptation science and information.
Sec. 478. Federal natural resource agency adaptation plans.
Sec. 479. State natural resources adaptation plans.
Sec. 480. Natural Resources Climate Change Adaptation Fund.
Sec. 481. National Wildlife Habitat and Corridors Information Program.
Sec. 482. Additional provisions regarding Indian tribes.

        Part 2--International Climate Change Adaptation Program

Sec. 491. Findings and purposes.
Sec. 492. Definitions.
Sec. 493. International Climate Change Adaptation Program.

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Sec. 494. Distribution of allowances.
Sec. 495. Bilateral assistance.

     SEC. 2. DEFINITIONS.

       For purposes of this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) State.--The term ``State'' has the meaning given that 
     term in section 302 of the Clean Air Act.

     SEC. 3. INTERNATIONAL PARTICIPATION.

       The Administrator, in consultation with the Department of 
     State and the United States Trade Representative, shall 
     annually prepare and certify a report to the Congress 
     regarding whether China and India have adopted greenhouse gas 
     emissions standards at least as strict as those standards 
     required under this Act. If the Administrator determines that 
     China and India have not adopted greenhouse gas emissions 
     standards at least as stringent as those set forth in this 
     Act, the Administrator shall notify each Member of Congress 
     of his determination, and shall release his determination to 
     the media.

                         TITLE I--CLEAN ENERGY

   Subtitle A--Combined Efficiency and Renewable Electricity Standard

     SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY 
                   STANDARD.

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

     ``SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY 
                   STANDARD.

       ``(a) Definitions.--For purposes of this section:
       ``(1) CHP savings.--The term `CHP savings' means--
       ``(A) CHP system savings from a combined heat and power 
     system that commences operation after the date of enactment 
     of this section; and
       ``(B) the increase in CHP system savings from, at any time 
     after the date of the enactment of this section, upgrading, 
     replacing, expanding, or increasing the utilization of a 
     combined heat and power system that commenced operation on or 
     before the date of enactment of this section.
       ``(2) CHP system savings.--The term `CHP system savings' 
     means the increment of electric output of a combined heat and 
     power system that is attributable to the higher efficiency of 
     the combined system (as compared to the efficiency of 
     separate production of the electric and thermal outputs).
       ``(3) Combined heat and power system.--The term `combined 
     heat and power system' means a system that uses the same 
     energy source both for the generation of electrical or 
     mechanical power and the production of steam or another form 
     of useful thermal energy, provided that--
       ``(A) the system meets such requirements relating to 
     efficiency and other operating characteristics as the 
     Commission may promulgate by regulation; and
       ``(B) the net sales of electricity by the facility to 
     customers not consuming the thermal output from that facility 
     will not exceed 50 percent of total annual electric 
     generation by the facility.
       ``(4) Customer facility savings.--The term `customer 
     facility savings' means a reduction in end-use electricity 
     consumption (including recycled energy savings) at a facility 
     of an end-use consumer of electricity served by a retail 
     electric supplier, as compared to--
       ``(A) in the case of a new facility, consumption at a 
     reference facility of average efficiency;
       ``(B) in the case of an existing facility, consumption at 
     such facility during a base period, except as provided in 
     subparagraphs (C) and (D);
       ``(C) in the case of new equipment that replaces existing 
     equipment with remaining useful life, the projected 
     consumption of the existing equipment for the remaining 
     useful life of such equipment, and thereafter, consumption of 
     new equipment of average efficiency of the same equipment 
     type; and
       ``(D) in the case of new equipment that replaces existing 
     equipment at the end of the useful life of the existing 
     equipment, consumption by new equipment of average efficiency 
     of the same equipment type.
       ``(5) Distributed renewable generation facility.--The term 
     `distributed renewable generation facility' means a facility 
     that--
       ``(A) generates renewable electricity;
       ``(B) primarily serves 1 or more electricity consumers at 
     or near the facility site; and
       ``(C) is no greater than--
       ``(i) 2 megawatts in capacity; or
       ``(ii) 4 megawatts in capacity, in the case of a facility 
     that is placed in service after the date of enactment of this 
     section and generates electricity from a renewable energy 
     resource other than by means of combustion.
       ``(6) Electricity savings.--The term `electricity savings' 
     means reductions in electricity consumption, relative to 
     business-as-usual projections, achieved through measures 
     implemented after the date of enactment of this section, 
     limited to--
       ``(A) customer facility savings of electricity, adjusted to 
     reflect any associated increase in fuel consumption at the 
     facility;
       ``(B) reductions in distribution system losses of 
     electricity achieved by a retail electricity distributor, as 
     compared to losses attributable to new or replacement 
     distribution system equipment of average efficiency;
       ``(C) CHP savings; and
       ``(D) fuel cell savings.
       ``(7) Central procurement state.--The term `central 
     procurement State' means a State that, as of January 1, 2009, 
     had adopted and implemented a legally enforceable mandate 
     that, in lieu of requiring utilities to submit credits or 
     certificates issued based on generation of electricity from 
     (or to purchase or generate electricity from) resources 
     defined by the State as renewable, requires retail electric 
     suppliers to collect payments from electricity ratepayers 
     within the State that are used for central procurement, by a 
     State agency or a public benefit corporation established 
     pursuant to State law, of credits or certificates issued 
     based on generation of electricity from resources defined by 
     the State as renewable.
       ``(8) Federal renewable electricity credit.--The term 
     `Federal renewable electricity credit' means a credit, 
     representing one megawatt hour of renewable electricity, 
     issued pursuant to subsection (e).
       ``(9) Fuel cell.--The term `fuel cell' means a device that 
     directly converts the chemical energy of a fuel and an 
     oxidant into electricity by electrochemical processes 
     occurring at separate electrodes in the device.
       ``(10) Fuel cell savings.--The term `fuel cell savings' 
     means the electricity saved by a fuel cell that is installed 
     after the date of enactment of this section, or by upgrading 
     a fuel cell that commenced operation on or before the date of 
     enactment of this section, as a result of the greater 
     efficiency with which the fuel cell transforms fuel into 
     electricity as compared with sources of electricity delivered 
     through the grid, provided that--
       ``(A) the fuel cell meets such requirements relating to 
     efficiency and other operating characteristics as the 
     Commission may promulgate by regulation; and
       ``(B) the net sales of electricity from the fuel cell to 
     customers not consuming the thermal output from the fuel 
     cell, if any, do not exceed 50 percent of the total annual 
     electricity generation by the fuel cell.
       ``(12) Other qualifying energy resource.--The term `other 
     qualifying energy resource' means any of the following:
       ``(A) Landfill gas.
       ``(B) Wastewater treatment gas.
       ``(C) Coal mine methane used to generate electricity at or 
     near the mine mouth.
       ``(D) Qualified waste-to-energy.
       ``(13) Qualified hydropower.--The term `qualified 
     hydropower' means--
       ``(A) energy produced from increased efficiency achieved, 
     or additions of capacity made, on or after January 1, 1988, 
     at a hydroelectric facility that was placed in service before 
     that date and does not include additional energy generated as 
     a result of operational changes not directly associated with 
     efficiency improvements or capacity additions; or
       ``(B) energy produced from generating capacity added to a 
     dam on or after January 1, 1988, provided that the Commission 
     certifies that--
       ``(i) the dam was placed in service before the date of the 
     enactment of this section and was operated for flood control, 
     navigation, or water supply purposes and was not producing 
     hydroelectric power prior to the addition of such capacity;
       ``(ii) the hydroelectric project installed on the dam is 
     licensed (or is exempt from licensing) by the Commission and 
     is in compliance with the terms and conditions of the license 
     or exemption, and with other applicable legal requirements 
     for the protection of environmental quality, including 
     applicable fish passage requirements; and
       ``(iii) the hydroelectric project installed on the dam is 
     operated so that the water surface elevation at any given 
     location and time that would have occurred in the absence of 
     the hydroelectric project is maintained, subject to any 
     license or exemption requirements that require changes in 
     water surface elevation for the purpose of improving the 
     environmental quality of the affected waterway.
       ``(14) Qualified waste-to-energy.--The term `qualified 
     waste-to-energy' means energy from the combustion of 
     municipal solid waste or construction, demolition, or 
     disaster debris, or from the gasification or pyrolization of 
     such waste or debris and the combustion of the resulting gas 
     at the same facility, provided that--
       ``(A) such term shall include only the energy derived from 
     the non-fossil biogenic portion of such waste or debris;
       ``(B) the Commission determines, with the concurrence of 
     the Administrator of the Environmental Protection Agency, 
     that the total lifecycle greenhouse gas emissions 
     attributable to the generation of electricity from such waste 
     or debris are lower than those attributable to the likely 
     alternative method of disposing of such waste or debris; and
       ``(C) the owner or operator of the facility generating 
     electricity from such energy provides to the Commission, on 
     an annual basis--
       ``(i) a certification that the facility is in compliance 
     with all applicable State, tribal, and Federal environmental 
     permits;
       ``(ii) in the case of a facility that commenced operation 
     before the date of enactment of this section, a certification 
     that the

[[Page 16518]]

     facility meets emissions standards promulgated under sections 
     112 or 129 of the Clean Air Act (42 U.S.C. 7412 or 7429) that 
     apply as of the date of enactment of this section to new 
     facilities within the relevant source category; and
       ``(iii) in the case of the combustion, pyrolization, or 
     gasification of municipal solid waste, a certification that 
     each local government unit from which such waste originates 
     operates, participates in the operation of, contracts for, or 
     otherwise provides for, recycling services for its residents.
       ``(15) Recycled energy savings.--The term `recycled energy 
     savings' means a reduction in electricity consumption that 
     results from a modification of an industrial or commercial 
     system that commenced operation before the date of enactment 
     of this section, in order to recapture electrical, 
     mechanical, or thermal energy that would otherwise be wasted.
       ``(16) Renewable biomass.--The term `renewable biomass' 
     means any of the following:
       ``(A) Materials, pre-commercial thinnings, or removed 
     invasive species from National Forest System land and public 
     lands (as defined in section 103 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1702)), including those 
     that are byproducts of preventive treatments (such as trees, 
     wood, brush, thinnings, chips, and slash), that are removed 
     as part of a federally recognized timber sale, or that are 
     removed to reduce hazardous fuels, to reduce or contain 
     disease or insect infestation, or to restore ecosystem 
     health, and that are--
       ``(i) not from components of the National Wilderness 
     Preservation System, Wilderness Study Areas, Inventoried 
     Roadless Areas, old growth stands, late-successional stands 
     (except for dead, severely damaged, or badly infested trees), 
     components of the National Landscape Conservation System, 
     National Monuments, National Conservation Areas, Designated 
     Primitive Areas, or Wild and Scenic Rivers corridors;
       ``(ii) harvested in environmentally sustainable quantities, 
     as determined by the appropriate Federal land manager; and
       ``(iii) harvested in accordance with Federal and State law, 
     and applicable land management plans.
       ``(B) Any organic matter that is available on a renewable 
     or recurring basis from non-Federal land or land belonging to 
     an Indian or Indian tribe that is held in trust by the United 
     States or subject to a restriction against alienation imposed 
     by the United States, including--
       ``(i) renewable plant material, including--

       ``(I) feed grains;
       ``(II) other agricultural commodities;
       ``(III) other plants and trees; and
       ``(IV) algae; and

       ``(ii) waste material, including--

       ``(I) crop residue;
       ``(II) other vegetative waste material (including wood 
     waste and wood residues);
       ``(III) animal waste and byproducts (including fats, oils, 
     greases, and manure);
       ``(IV) construction waste; and
       ``(V) food waste and yard waste.

       ``(C) Residues and byproducts from wood, pulp, or paper 
     products facilities.''.
       ``(17) Renewable electricity.--The term `renewable 
     electricity' means electricity generated (including by means 
     of a fuel cell) from a renewable energy resource or other 
     qualifying energy resources.
       ``(18) Renewable energy resource.--The term `renewable 
     energy resource' means each of the following:
       ``(A) Wind energy.
       ``(B) Solar energy.
       ``(C) Geothermal energy.
       ``(D) Renewable biomass.
       ``(E) Biogas derived exclusively from renewable biomass.
       ``(F) Biofuels derived exclusively from renewable biomass.
       ``(G) Qualified hydropower.
       ``(H) Marine and hydrokinetic renewable energy, as that 
     term is defined in section 632 of the Energy Independence and 
     Security Act of 2007 (42 U.S.C. 17211).
       ``(19) Retail electric supplier.--
       ``(A) In general.--The term `retail electric supplier' 
     means, for any given year, an electric utility that sold not 
     less than 4,000,000 megawatt hours of electric energy to 
     electric consumers for purposes other than resale during the 
     preceding calendar year.
       ``(B) Inclusions and limitations.--For purposes of 
     determining whether an electric utility qualifies as a retail 
     electric supplier under subparagraph (A)--
       ``(i) the sales of any affiliate of an electric utility to 
     electric consumers, other than sales to the affiliate's 
     lessees or tenants, for purposes other than resale shall be 
     considered to be sales of such electric utility; and
       ``(ii) sales by any electric utility to an affiliate, 
     lessee, or tenant of such electric utility shall not be 
     treated as sales to electric consumers.
       ``(C) Affiliate.--For purposes of this paragraph, the term 
     `affiliate' when used in relation to a person, means another 
     person that directly or indirectly owns or controls, is owned 
     or controlled by, or is under common ownership or control 
     with, such person, as determined under regulations 
     promulgated by the Commission.
       ``(20) Retail electric supplier's base amount.--The term 
     `retail electric supplier's base amount' means the total 
     amount of electric energy sold by the retail electric 
     supplier, expressed in megawatt hours, to electric customers 
     for purposes other than resale during the relevant calendar 
     year, excluding--
       ``(A) electricity generated by a hydroelectric facility 
     that is not qualified hydropower;
       ``(B) electricity generated by a nuclear generating unit 
     placed in service after the date of enactment of this 
     section; and
       ``(C) the proportion of electricity generated by a fossil-
     fueled generating unit that is equal to the proportion of 
     greenhouse gases produced by such unit that are captured and 
     geologically sequestered.
       ``(21) Retire and retirement.--The terms `retire' and 
     `retirement' with respect to a Federal renewable electricity 
     credit, means to disqualify such credit for any subsequent 
     use under this section, regardless of whether the use is a 
     sale, transfer, exchange, or submission in satisfaction of a 
     compliance obligation.
       ``(22) Third-party efficiency provider.--The term `third-
     party efficiency provider' means any retailer, building 
     owner, energy service company, financial institution or other 
     commercial, industrial or nonprofit entity that is capable of 
     providing electricity savings in accordance with the 
     requirements of this section.
       ``(23) Total annual electricity savings.--The term `total 
     annual electricity savings' means electricity savings during 
     a specified calendar year from measures implemented since the 
     date of the enactment of this section, taking into account 
     verified measure lifetimes or verified annual savings 
     attrition rates, as determined in accordance with such 
     regulations as the Commission may promulgate and measured in 
     megawatt hours.
       ``(b) Annual Compliance Obligation.--
       ``(1) In general.--For each of calendar years 2012 through 
     2039, not later than March 31 of the following calendar year, 
     each retail electric supplier shall submit to the Commission 
     an amount of Federal renewable electricity credits and 
     demonstrated total annual electricity savings that, in the 
     aggregate, is equal to such retail electric supplier's annual 
     combined target as set forth in subsection (d), except as 
     otherwise provided in subsection (h).
       ``(2) Demonstration of savings.--For purposes of this 
     subsection, submission of demonstrated total annual 
     electricity savings means submission of a report that 
     demonstrates, in accordance with the requirements of 
     subsection (f), the total annual electricity savings achieved 
     by the retail electric supplier within the relevant 
     compliance year.
       ``(3) Renewable electricity credits portion.--Except as 
     provided in paragraph (4), each retail electric supplier must 
     submit Federal renewable electricity credits equal to at 
     least three quarters of the retail electric supplier's annual 
     combined target.
       ``(4) State petition.--
       ``(A) In general.--Upon written request from the Governor 
     of any State (including, for purposes of this paragraph, the 
     Mayor of the District of Columbia), the Commission shall 
     increase, to not more than two fifths, the proportion of the 
     annual combined targets of retail electric suppliers located 
     within such State that may be met through submission of 
     demonstrated total annual electricity savings, provided that 
     such increase shall be effective only with regard to the 
     portion of a retail electric supplier's annual combined 
     target that is attributable to electricity sales within such 
     State.
       ``(B) Contents.--A Governor's request under this paragraph 
     shall include an explanation of the Governor's rationale for 
     determining, after consultation with the relevant State 
     regulatory authority and other retail electricity ratemaking 
     authorities within the State, to make such request. The 
     request shall specify the maximum proportion of annual 
     combined targets (not more than two fifths) that can be met 
     through demonstrated total annual electricity savings, and 
     the period for which such proportion shall be effective.
       ``(C) Revision.--The Governor of any State may, after 
     consultation with the relevant State regulatory authority and 
     other retail electricity ratemaking authorities within the 
     State, submit a written request for revocation or revision of 
     a previous request submitted under this paragraph. The 
     Commission shall grant such request, provided that--
       ``(i) any revocation or revision shall not apply to the 
     combined annual target for any year that is any earlier than 
     2 calendar years after the calendar year in which such 
     request is submitted, so as to provide retail electric 
     suppliers with adequate notice of such change; and
       ``(ii) any revision shall meet the requirements of 
     subparagraph (A).
       ``(c) Establishment of Program.--Not later than 1 year 
     after the date of enactment of this section, the Commission 
     shall promulgate regulations to implement and enforce the 
     requirements of this section. In promulgating such 
     regulations, the Commission shall, to the extent 
     practicable--
       ``(1) preserve the integrity, and incorporate best 
     practices, of existing State and tribal

[[Page 16519]]

     renewable electricity and energy efficiency programs;
       ``(2) rely upon existing and emerging State, tribal, or 
     regional tracking systems that issue and track non-Federal 
     renewable electricity credits; and
       ``(3) cooperate with the States and Indian tribes to 
     facilitate coordination between State, tribal, and Federal 
     renewable electricity and energy efficiency programs and to 
     minimize administrative burdens and costs to retail electric 
     suppliers.
       ``(d) Annual Compliance Requirement.--
       ``(1) Annual combined targets.--For each of calendar years 
     2012 through 2039, a retail electric supplier's annual 
     combined target shall be the product of--
       ``(A) the required annual percentage for such year, as set 
     forth in paragraph (2); and
       ``(B) the retail electric supplier's base amount for such 
     year.
       ``(2) Required annual percentage.--For each of calendar 
     years 2012 through 2039, the required annual percentage shall 
     be as follows:

``Calendar year                              Required annual percentage
2012................................................................6.0
2013................................................................6.0
2014................................................................9.5
2015................................................................9.5
2016...............................................................13.0
2017...............................................................13.0
2018...............................................................16.5
2019...............................................................16.5
2020...............................................................20.0
2021 through 2039..................................................20.0

       ``(e) Federal Renewable Electricity Credits.--
       ``(1) In general.--The regulations promulgated under this 
     section shall include provisions governing the issuance, 
     tracking, and verification of Federal renewable electricity 
     credits. Except as provided in paragraphs (2), (3), and (4) 
     of this subsection, the Commission shall issue to each 
     generator of renewable electricity, 1 Federal renewable 
     electricity credit for each megawatt hour of renewable 
     electricity generated by such generator after December 31, 
     2011. The Commission shall assign a unique serial number to 
     each Federal renewable electricity credit.
       ``(2) Generation from certain state renewable electricity 
     programs.--``(A) Except as provided in subparagraph (B), 
     where renewable electricity is generated with the support of 
     payments from a retail electric supplier pursuant to a State 
     renewable electricity program (whether through State 
     alternative compliance payments or through payments to a 
     State renewable electricity procurement fund or entity), the 
     Commission shall issue Federal renewable electricity credits 
     to such retail electric supplier for the proportion of the 
     relevant renewable electricity generation that is 
     attributable to the retail electric supplier's payments, as 
     determined pursuant to regulations issued by the Commission. 
     For any remaining portion of the relevant renewable 
     electricity generation, the Commission shall issue Federal 
     renewable electricity credits to the generator, as provided 
     in paragraph (1), except that in no event shall more than 1 
     Federal renewable electricity credit be issued for the same 
     megawatt hour of electricity. In determining how Federal 
     renewable electricity credits will be apportioned among 
     retail electric suppliers and generators in such 
     circumstances, the Commission shall consider information and 
     guidance furnished by the relevant State or States.
       ``(B) In the case of a central procurement State that 
     pursuant to subsection (g) has assumed responsibility for 
     compliance with the requirements of subsection (b), the 
     Commission shall issue directly to the State Federal 
     renewable electricity credits for any renewable electricity 
     for which the State, pursuant to a mandate described in 
     subsection (a)(7), has centrally procured credits or 
     certificates issued based on generation of such renewable 
     electricity.
       ``(3) Certain power sales contracts.--Except as otherwise 
     provided in paragraph (2), when a generator has sold 
     renewable electricity to a retail electric supplier under a 
     contract for power from a facility placed in service before 
     the date of enactment of this section, and the contract does 
     not provide for the determination of ownership of the Federal 
     renewable electricity credits associated with such 
     generation, the Commission shall issue such Federal renewable 
     electricity credits to the retail electric supplier for the 
     duration of the contract.
       ``(4) Credit multiplier for distributed renewable 
     generation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Commission shall issue 3 Federal renewable electricity 
     credits for each megawatt hour of renewable electricity 
     generated by a distributed renewable generation facility.
       ``(B) Adjustment.--Except as provided in subparagraph (C), 
     not later than January 1, 2014, and not less frequently than 
     every 4 years thereafter, the Commission shall review the 
     effect of this paragraph and shall, as necessary, reduce the 
     number of Federal renewable electricity credits per megawatt 
     hour issued under this paragraph for any given energy source 
     or technology, but not below 1, to ensure that such number is 
     no higher than the Commission determines is necessary to make 
     distributed renewable generation facilities using such source 
     or technology cost competitive with other sources of 
     renewable electricity generation.
       ``(C) Facilities placed in service after enactment.--For 
     any distributed renewable generation facility placed in 
     service after the date of enactment of this section, 
     subparagraph (B) shall not apply for the first 10 years after 
     the date on which the facility is placed in service. For each 
     year during such 10-year period, the Commission shall issue 
     to the facility the same number of Federal renewable 
     electricity credits per megawatt hour as are issued to that 
     facility in the year in which such facility is placed in 
     service. After such 10-year period, the Commission shall 
     issue Federal renewable electricity credits to the facility 
     in accordance with the current multiplier as determined 
     pursuant to subparagraph (B).
       ``(5) Credits based on qualified hydropower.--For purposes 
     of this subsection, the number of Federal renewable 
     electricity credits issued for qualified hydropower shall be 
     calculated--
       ``(A) based solely on the increase in average annual 
     generation directly resulting from the efficiency 
     improvements or capacity additions described in subsection 
     (a)(13)(A); and
       ``(B) using the same water flow information used to 
     determine a historic average annual generation baseline for 
     the hydroelectric facility, as certified by the Commission.
       ``(6) Generation from qualified waste-to-energy.--In the 
     case of electricity generated from the combustion of any 
     municipal solid waste or construction, demolition, or 
     disaster debris that is included in the definition of 
     renewable biomass, or from the gasification or pyrolization 
     of such waste or debris and the combustion of the resulting 
     gas at the same facility, the Commission shall issue Federal 
     renewable electricity credits only for electricity generated 
     from qualified waste-to-energy.
       ``(7) Generation from mixed renewable and nonrenewable 
     resources.--If electricity is generated using both a 
     renewable energy resource or other qualifying energy resource 
     and an energy source that is not a renewable energy resource 
     or other qualifying energy resource (as, for example, in the 
     case of co-firing of renewable biomass and fossil fuel), the 
     Commission shall issue Federal renewable electricity credits 
     based on the proportion of the electricity that is 
     attributable to the renewable energy resource or other 
     qualifying energy resource.
       ``(8) Prohibition against double-counting.--Except as 
     provided in paragraph (4) of this subsection, the Commission 
     shall ensure that no more than 1 Federal renewable 
     electricity credit will be issued for any megawatt hour of 
     renewable electricity and that no Federal renewable 
     electricity credit will be used more than once for compliance 
     with this section.
       ``(9) Trading.--The lawful holder of a Federal renewable 
     electricity credit may sell, exchange, transfer, submit for 
     compliance in accordance with subsection (b), or submit such 
     credit for retirement by the Commission.
       ``(10) Banking.--A Federal renewable electricity credit may 
     be submitted in satisfaction of the compliance obligation set 
     forth in subsection (b) for the compliance year in which the 
     credit was issued or for any of the 3 immediately subsequent 
     compliance years. The Commission shall retire any Federal 
     renewable electricity credit that has not been retired by 
     April 2 of the calendar year that is 3 years after the 
     calendar year in which the credit was issued.
       ``(11) Retirement.--The Commission shall retire a Federal 
     renewable electricity credit immediately upon submission by 
     the lawful holder of such credit, whether in satisfaction of 
     a compliance obligation under subsection (b) or on some other 
     basis.
       ``(f) Electricity Savings.--
       ``(1) Standards for measurement of savings.--As part of the 
     regulations promulgated under this section, the Commission 
     shall prescribe standards and protocols for defining and 
     measuring electricity savings and total annual electricity 
     savings that can be counted towards the compliance obligation 
     set forth in subsection (b). Such protocols and standards 
     shall, at minimum--
       ``(A) specify the types of energy efficiency and energy 
     conservation measures that can be counted;
       ``(B) require that energy consumption estimates for 
     customer facilities or portions of facilities in the 
     applicable base and current years be adjusted, as 
     appropriate, to account for changes in weather, level of 
     production, and building area;
       ``(C) account for the useful life of measures;
       ``(D) include deemed savings values for specific, commonly 
     used measures;
       ``(E) allow for savings from a program to be estimated 
     based on extrapolation from a representative sample of 
     participating customers;
       ``(F) include procedures for counting CHP savings, recycled 
     energy savings, and fuel cell savings;
       ``(G) include procedures for documenting measurable and 
     verifiable electricity savings achieved as a result of market 
     transformation efforts;

[[Page 16520]]

       ``(H) include procedures for counting electricity savings 
     achieved by solar water heating and solar light pipe 
     technology that has the capability to provide measurable data 
     on the amount of megawatt-hours displaced;
       ``(I) avoid double-counting of savings used for compliance 
     with this section, including savings that are transferred 
     pursuant to paragraph (3);
       ``(J) ensure that, except as provided in subparagraph (L), 
     the retail electric supplier claiming the savings played a 
     significant role in achieving the savings (including through 
     the activities of a designated agent of the supplier or 
     through the purchase of transferred savings);
       ``(K) include savings from programs administered by a 
     retail electric supplier (or a retail electricity distributor 
     that is not a retail electric supplier) that are funded by 
     State, Federal, or other sources;
       ``(L) in any State in which the State regulatory authority 
     has designated 1 or more entities to administer electric 
     ratepayer-funded efficiency programs approved by such State 
     regulatory authority, provide that electricity savings 
     achieved through such programs shall be distributed equitably 
     among retail electric suppliers in accordance with the 
     direction of the relevant State regulatory authority; and
       ``(M) exclude savings achieved as a result of compliance 
     with mandatory appliance and equipment efficiency standards 
     or building codes.
       ``(2) Standards for third-party verification of savings.--
     The regulations promulgated under this section shall 
     establish procedures and standards requiring third-party 
     verification of all reported electricity savings, including 
     requirements for accreditation of third-party verifiers to 
     ensure that such verifiers are professionally qualified and 
     have no conflicts of interest.
       ``(3) Transfers of savings.--
       ``(A) Bilateral contracts for savings transfers.--Subject 
     to the limitations of this paragraph, a retail electric 
     supplier may use electricity savings transferred, pursuant to 
     a bilateral contract, from another retail electric supplier, 
     an owner of an electric distribution facility that is not a 
     retail electric supplier, a State, or a third-party 
     efficiency provider to meet the applicable compliance 
     obligation under subsection (b).
       ``(B) Requirements.--Electricity savings transferred and 
     used for compliance pursuant to this paragraph shall be--
       ``(i) measured and verified in accordance with the 
     procedures specified under this subsection;
       ``(ii) reported in accordance with paragraph (4) of this 
     subsection; and
       ``(iii) achieved within the same State as is served by the 
     retail electric supplier.
       ``(C) Regulatory approval.--Nothing in this paragraph shall 
     limit or affect the authority of a State regulatory authority 
     to require a retail electric supplier that is regulated by 
     such authority to obtain such authority's authorization or 
     approval of a contract for transfer of savings under this 
     paragraph.
       ``(4) Reporting savings.--
       ``(A) Requirements.--The regulations promulgated under this 
     section shall establish requirements governing the submission 
     of reports to demonstrate, in accordance with the protocols 
     and standards for measurement and third-party verification 
     established under this subsection, the total annual 
     electricity savings achieved by a retail electric supplier 
     within the relevant year.
       ``(B) Review and approval.--The Commission shall review 
     each report submitted to the Commission by a retail electric 
     supplier and shall exclude any electricity savings that have 
     not been adequately demonstrated in accordance with the 
     requirements of this subsection.
       ``(5) State administration.--
       ``(A) Delegation of authority.--Upon receipt of an 
     application from the Governor of a State (including, for 
     purposes of this subsection, the Mayor of the District of 
     Columbia), the Commission may delegate to the State the 
     authority to review and verify reported electricity savings 
     for purposes of determining demonstrated total annual 
     electricity savings that may be counted towards a retail 
     electric supplier's compliance obligation under subsection 
     (b). The Commission shall make a substantive determination 
     approving or disapproving a State application under this 
     subparagraph, after notice and comment, within 180 days of 
     receipt of a complete application.
       ``(B) Alternative measurement and verification procedures 
     and standards.--As part of an application submitted under 
     subparagraph (A), a State may request to use alternative 
     measurement and verification procedures and standards to 
     those specified in paragraphs (1) and (2), provided the State 
     demonstrates that such alternative procedures and standards 
     provide a level of accuracy of measurement and verification 
     at least equivalent to the Federal procedures and standards 
     promulgated under paragraphs (1) and (2).
       ``(C) Review of state implementation.--The Commission 
     shall, not less frequently than once every 4 years, review 
     each State's implementation of delegated authority under this 
     paragraph to ensure conformance with the requirements of this 
     section. The Commission may, at any time, revoke the 
     delegation of authority under this section upon a finding 
     that the State is not implementing its delegated 
     responsibilities in conformity with this paragraph. As a 
     condition of maintaining its delegated authority under this 
     paragraph, the Commission may require a State to submit a 
     revised application under subparagraph (A) if the Commission 
     has--
       ``(i) promulgated new or substantially revised measurement 
     and verification procedures and standards under this 
     subsection; or
       ``(ii) otherwise substantially revised the program 
     established under this section.
       ``(g) Alternative Compliance Payments.--
       ``(1) In general.--A retail electric supplier ``, or a 
     central procurement State that, pursuant to subsection (g), 
     has assumed responsibility for compliance with the 
     requirements of subsection (b),'' may satisfy the 
     requirements of subsection (b) in whole or in part by 
     submitting in accordance with this subsection, in lieu of 
     each Federal renewable electricity credit or megawatt hour of 
     demonstrated total annual electricity savings that would 
     otherwise be due, a payment equal to $25, adjusted for 
     inflation on January 1 of each year following calendar year 
     2009, in accordance with such regulations as the Commission 
     may promulgate.
       ``(2) Payment to state funds.--Except as otherwise provided 
     in this paragraph and paragraph (4), payments made under this 
     subsection shall be made directly to the State or States in 
     which the retail electric supplier is located, in proportion 
     to the portion of the retail electric supplier's base amount 
     that is sold within each relevant State, provided that such 
     payments are deposited directly into a fund in the State 
     treasury established for this purpose and that the State uses 
     such funds in accordance with paragraphs (3) and (5) and with 
     paragraph (4) where applicable. If the Commission determines 
     at any time that a State is in substantial noncompliance with 
     paragraph (3) or (5), or with paragraph (4) where applicable, 
     the Commission shall direct that any future alternative 
     compliance payments that would otherwise be paid to such 
     State under this subsection shall instead be paid to the 
     Commission and deposited in the United States Treasury.
       ``(3) State use of funds.--As a condition of continued 
     receipt of alternative compliance payments pursuant to this 
     subsection, a State shall use such payments exclusively for 
     the purposes of--
       ``(A) deploying technologies that generate electricity from 
     renewable energy resources; or
       ``(B) implementing cost-effective energy efficiency 
     programs to achieve electricity savings.
       ``(4) Central procurement states.--
       ``(A) In general.--A central procurement State that, 
     pursuant to subsection (g), has assumed responsibility for 
     compliance with the requirements of subsection (b) shall 
     deposit any alternative compliance payments under this 
     subsection in a unique fund in the State treasury created and 
     used solely for this purpose.
       ``(B) Requirements.--As a precondition of making 
     alternative compliance payments under this subsection, a 
     central procurement State shall certify to the Commission, in 
     accordance with such requirements as the Commission may 
     prescribe, that--
       ``(i) making such payments is the lowest cost alternative 
     to meet the requirements of subsection (b); and
       ``(ii) moneys used by the State to make such payments are 
     in addition to any spending that the State, and any separate 
     entity charged with administering the State central 
     procurement requirement identified under subsection (a)(7), 
     otherwise collectively would direct to the purposes 
     identified in paragraph (3).
       ``(C) Uses.--A central procurement State that makes 
     alternative compliance payments under this subsection shall 
     certify to the Commission that, in using such payments in 
     accordance with paragraph (3), it has, to the extent 
     practicable, maximized the level of deployment of renewable 
     electricity generation (measured in megawatt hours) and 
     electricity savings per dollar that are achieved through such 
     expenditures.
       ``(5) Reporting.--As a condition of continued receipt of 
     alternative compliance payments pursuant to this subsection, 
     a State shall, within 12 months of receipt of any such 
     payments and at 12-month intervals thereafter until such 
     payments are expended, provide a report to the Commission, in 
     accordance with such regulations as the Commission may 
     prescribe, giving a full accounting of the use of such 
     payments, including a detailed description of the activities 
     funded thereby and demonstrating compliance with the 
     requirements of this subsection.
       ``(g) Central Procurement States.--
       ``(1) In general.--A central procurement State may, upon 
     submission of a written request by the Governor of such State 
     to the Commission, assume responsibility for compliance with 
     the requirements of subsection (b) on behalf of retail 
     electric suppliers located in such State, exclusively with 
     regard to the portion of such retail electric suppliers' base 
     amount that is sold within the State.
       ``(2) Demonstration of electricity savings.--If a central 
     procurement State opts to

[[Page 16521]]

     meet any part of the requirements of subsection (b) based on 
     the achievement of demonstrated total annual electricity 
     savings, regardless of whether such State has received 
     delegated authority pursuant to subsection (f)(5), such State 
     shall submit such demonstrated total annual electricity 
     savings to the Commission through an annual report in 
     accordance with requirements prescribed by the Commission by 
     regulation, which shall be of equivalent stringency to those 
     applicable to retail electric suppliers under subsection (f).
       ``(3) Noncompliance.--If a central procurement State that 
     pursuant to this subsection has assumed responsibility for 
     compliance with the requirements of subsection (b), fails to 
     satisfy the requirements of subsection (b) or (h) for any 
     year, the State's assumption of responsibility under this 
     subsection shall be discontinued immediately, and retail 
     electric suppliers located in such State henceforth shall be 
     directly subject to the requirements of this section.
       ``(h) Information Collection.--The Commission may require 
     any retail electric supplier, renewable electricity 
     generator, or such other entities as the Commission deems 
     appropriate, to provide any information the Commission 
     determines appropriate to carry out this section. Failure to 
     submit such information or submission of false or misleading 
     information under this subsection shall be a violation of 
     this section.
       ``(i) Enforcement and Judicial Review.--
       ``(1) Failure to submit credits or demonstrate savings.--If 
     any person ``, other than any central procurement State that 
     pursuant to subsection (g) has assumed responsibility for 
     compliance with the requirements of subsection (b),'' fails 
     to comply with the requirements of subsection (b) or (h), 
     such person shall be liable to pay to the Commission a civil 
     penalty equal to the product of--
       ``(A) double the alternative compliance payment calculated 
     under subsection (h)(1), and
       ``(B) the aggregate quantity of Federal renewable 
     electricity credits, total annual electricity savings, or 
     equivalent alternative compliance payments that the person 
     failed to submit in violation of the requirements of 
     subsections (b) and (h).
       ``(2) Enforcement.--The Commission shall assess a civil 
     penalty under paragraph (1) in accordance with the procedures 
     described in section 31(d) of the Federal Power Act (16 
     U.S.C. 823b(d)).
       ``(3) Violation of requirement of regulations or orders.--
     Any person ``, other than any central procurement State that 
     pursuant to subsection (g) has assumed responsibility for 
     compliance with the requirements of subsection (b),''. who 
     violates, or fails or refuses to comply with, any requirement 
     of a regulation promulgated or order issued under this 
     section shall be subject to a civil penalty under section 
     316A(b) of the Federal Power Act (16 U.S.C. 825o-1). Such 
     penalty shall be assessed by the Commission in the same 
     manner as in the case of a violation referred to in section 
     316A(b) of such Act.
       ``(j) Judicial Review.--Any person aggrieved by a final 
     action taken by the Commission under this section, other than 
     the assessment of a civil penalty under subsection (j), may 
     use the procedures for review described in section 313 of the 
     Federal Power Act (16 U.S.C. 825l). For purposes of this 
     paragraph, references to an order in section 313 of such Act 
     shall be deemed to refer also to all other final actions of 
     the Commission under this section other than the assessment 
     of a civil penalty under subsection (i).
       ``(k) Savings Provisions.--Nothing in this section shall--
       ``(1) diminish or qualify any authority of a State, a 
     political subdivision of a State, or an Indian tribe to--
       ``(A) adopt or enforce any law or regulation respecting 
     renewable electricity or energy efficiency, including any law 
     or regulation establishing requirements more stringent than 
     those established by this section, provided that no such law 
     or regulation may relieve any person of any requirement 
     otherwise applicable under this section; or
       ``(B) regulate the acquisition and disposition of Federal 
     renewable electricity credits by retail electric suppliers 
     within the jurisdiction of such State, political subdivision, 
     or Indian tribe, including the authority to require such 
     retail electric supplier to acquire and submit to the 
     Secretary for retirement Federal renewable electricity 
     credits in excess of those submitted under this section; or
       ``(2) affect the application of, or the responsibility for 
     compliance with, any other provision of law or regulation, 
     including environmental and licensing requirements.
       ``(l) Sunset.--This section expires on December 31, 
     2040.''.
       (b) Conforming Amendment.--The table of contents set forth 
     in section 1(b) of the Public Utility Regulatory Policies Act 
     of 1978 (16 U.S.C. 2601 and following) is amended by 
     inserting after the item relating to section 609 the 
     following:

``Sec. 610. Combined efficiency and renewable electricity standard.''.

     SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RENEWABLE 
                   ENERGY INCENTIVES.

        Section 210 of the Public Utility Regulatory Policies Act 
     of 1978 is amended by adding at the end thereof:
       ``(o) Clarification of State Authority to Adopt Renewable 
     Energy Incentives.--Notwithstanding any other provision of 
     this Act or the Federal Power Act, a State legislature or 
     regulatory authority may set the rates for a sale of electric 
     energy by a facility generating electric energy from 
     renewable energy sources pursuant to a State-approved 
     production incentive program under which the facility 
     voluntarily sells electric energy. For purposes of this 
     subsection, `State-approved production incentive program' 
     means a requirement imposed pursuant to State law, or by a 
     State regulatory authority acting within its authority under 
     State law, that an electric utility purchase renewable energy 
     (as defined in section 609 of this Act) at a specified 
     rate.''.

     SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES.

       (a) Requirement.--For each of calendar years 2012 through 
     2039, the President shall ensure that, of the total amount of 
     electricity Federal agencies consume in the United States 
     during each calendar year, the following percentage shall be 
     renewable electricity:


 
                                                             Required
                      Calendar year                           annual
                                                            percentage
 
2012....................................................             6.0
2013....................................................             6.0
2014....................................................             9.5
2015....................................................             9.5
2016....................................................            13.0
2017....................................................            13.0
2018....................................................            16.5
2019....................................................            16.5
2020....................................................            20.0
2021 through 2039.......................................            20.0
 

       (b) Definitions.--For purposes of this section:
       (1) Renewable electricity.--The term ``renewable 
     electricity'' shall have the meaning given in section 610 of 
     the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     2601 and following).
       (2) Renewable energy resource.--The term ``renewable energy 
     resource'' shall have the meaning given in section 610 of the 
     Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     2601 and following).
       (c) Modification of Requirement.--If the President 
     determines that the Federal Government cannot feasibly meet 
     the requirement established in subsection (a) in a specific 
     calendar year, the President may, by written order, reduce 
     such requirement for such calendar year to a percentage the 
     President determines the Federal Government can feasibly 
     meet.
       (d) Reports.--Not later than April 1, 2013, and each year 
     thereafter, the Secretary of Energy shall provide a report to 
     Congress on the percentage of each Federal agency's 
     electricity consumption in the United States that was 
     renewable electricity in the previous calendar year.
       (e) Contracts for Renewable Energy.--(1) Notwithstanding 
     section 501(b)(1)(B) of title 40, United States Code, a 
     contract for the acquisition of electricity generated from a 
     renewable energy resource for the Federal Government may be 
     made for a period of not more than 20 years.
       (2) Not later than 90 days after the date of enactment of 
     this subsection, the Secretary of Energy, through the Federal 
     Energy Management Program, shall publish a standardized 
     renewable energy purchase agreement, setting forth commercial 
     terms and conditions, that Federal agencies may use to 
     acquire electricity generated from a renewable energy 
     resource.
       (3) The Secretary of Energy shall provide technical 
     assistance to assist Federal agencies in implementing this 
     subsection.

              Subtitle B--Carbon Capture and Sequestration

     SEC. 111. NATIONAL STRATEGY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Energy, the Secretary of the Interior, 
     and the heads of such other relevant Federal agencies as the 
     President may designate, shall submit to Congress a report 
     setting forth a unified and comprehensive strategy to address 
     the key legal, regulatory and other barriers to the 
     commercial-scale deployment of carbon capture and 
     sequestration.
       (b) Barriers.-- The report under this section shall--
       (1) identify those regulatory, legal, and other gaps and 
     barriers that could be addressed by a Federal agency using 
     existing statutory authority, those, if any, that require 
     Federal legislation, and those that would be best addressed 
     at the State, tribal, or regional level;
       (2) identify regulatory implementation challenges, 
     including those related to approval of State and tribal 
     programs and delegation of authority for permitting; and
       (3) recommend rulemakings, Federal legislation, or other 
     actions that should be taken to further evaluate and address 
     such barriers.

[[Page 16522]]



     SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.

       (a) Coordinated Certification and Permitting Process.--
     Title VIII of the Clean Air Act, as added by section 331 of 
     this Act, is amended by adding after section 812 (as added by 
     section 116 of this Act) the following:

     ``SEC. 813. GEOLOGIC SEQUESTRATION SITES.

       ``(a) Coordinated Process.--The Administrator shall 
     establish a coordinated approach to certifying and permitting 
     geologic sequestration, taking into consideration all 
     relevant statutory authorities. In establishing such 
     approach, the Administrator shall--
       ``(1) take into account, and reduce redundancy with, the 
     requirements of section 1421 of the Safe Drinking Water Act 
     (42 U.S.C. 300h), as amended by section 112(b) of the 
     American Clean Energy and Security Act of 2009, including the 
     rulemaking for geologic sequestration wells described at 73 
     Fed. Reg. 43491-541 (July 25, 2008); and
       ``(2) to the extent practicable, reduce the burden on 
     certified entities and implementing authorities.
       ``(b) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations to protect human health and the 
     environment by minimizing the risk of escape to the 
     atmosphere of carbon dioxide injected for purposes of 
     geologic sequestration.
       ``(c) Requirements.--The regulations under subsection (b) 
     shall include--
       ``(1) a process to obtain certification for geologic 
     sequestration under this section; and
       ``(2) requirements for--
       ``(A) monitoring, record keeping, and reporting for 
     emissions associated with injection into, and escape from, 
     geologic sequestration sites, taking into account any 
     requirements or protocols developed under section 713;
       ``(B) public participation in the certification process 
     that maximizes transparency;
       ``(C) the sharing of data between States, Indian tribes, 
     and the Environmental Protection Agency; and
       ``(D) other elements or safeguards necessary to achieve the 
     purpose set forth in subsection (b).
       ``(d) Report.--Not later than 2 years after the 
     promulgation of regulations under subsection (b), and at 3-
     year intervals thereafter, the Administrator shall deliver to 
     the Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Environment and Public 
     Works of the Senate a report on geologic sequestration in the 
     United States, and, to the extent relevant, other countries 
     in North America. Such report shall include--
       ``(1) data regarding injection, emissions to the 
     atmosphere, if any, and performance of active and closed 
     geologic sequestration sites, including those where enhanced 
     hydrocarbon recovery operations occur;
       ``(2) an evaluation of the performance of relevant Federal 
     environmental regulations and programs in ensuring 
     environmentally protective geologic sequestration practices;
       ``(3) recommendations on how such programs and regulations 
     should be improved or made more effective; and
       ``(4) other relevant information.''.
       (b) Safe Drinking Water Act Standards.--Section 1421 of the 
     Safe Drinking Water Act (42 U.S.C. 300h) is amended by 
     inserting after subsection (d) the following:
       ``(e) Carbon Dioxide Geologic Sequestration Wells.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator shall 
     promulgate regulations under subsection (a) for carbon 
     dioxide geologic sequestration wells.
       ``(2) Financial responsibility.--The regulations referred 
     to in paragraph (1) shall include requirements for 
     maintaining evidence of financial responsibility, including 
     financial responsibility for emergency and remedial response, 
     well plugging, site closure, and post-injection site care. 
     Financial responsibility may be established for carbon 
     dioxide geologic sequestration wells in accordance with 
     regulations promulgated by the Administrator by any one, or 
     any combination, of the following: insurance, guarantee, 
     trust, standby trust, surety bond, letter of credit, 
     qualification as a self-insurer, or any other method 
     satisfactory to the Administrator.''.

     SEC. 113. STUDIES AND REPORTS.

       (a) Study of Legal Framework for Geologic Sequestration 
     Sites.--
       (1) Establishment of task force.--As soon as practicable, 
     but not later than 6 months after the date of enactment of 
     this Act, the Administrator shall establish a task force to 
     be composed of an equal number of subject matter experts, 
     nongovernmental organizations with expertise in environmental 
     policy, academic experts with expertise in environmental law, 
     State and tribal officials with environmental expertise, 
     representatives of State and tribal Attorneys General, 
     representatives from the Environmental Protection Agency, the 
     Department of the Interior, the Department of Energy, the 
     Department of Transportation, and other relevant Federal 
     agencies, and members of the private sector, to conduct a 
     study of--
       (A) existing Federal environmental statutes, State 
     environmental statutes, and State common law that apply to 
     geologic sequestration sites for carbon dioxide, including 
     the ability of such laws to serve as risk management tools;
       (B) the existing statutory framework, including Federal and 
     State laws, that apply to harm and damage to the environment 
     or public health at closed sites where carbon dioxide 
     injection has been used for enhanced hydrocarbon recovery;
       (C) the statutory framework, environmental health and 
     safety considerations, implementation issues, and financial 
     implications of potential models for Federal, State, or 
     private sector assumption of liabilities and financial 
     responsibilities with respect to closed geologic 
     sequestration sites;
       (D) private sector mechanisms, including insurance and 
     bonding, that may be available to manage environmental, 
     health and safety risk from closed geologic sequestration 
     sites; and
       (E) the subsurface mineral rights, water rights, or 
     property rights issues associated with geologic sequestration 
     of carbon dioxide, including issues specific to Federal 
     lands.
       (2) Report.--Not later than 18 months after the date of 
     enactment of this Act, the task force established under 
     paragraph (1) shall submit to Congress a report describing 
     the results of the study conducted under that paragraph 
     including any consensus recommendations of the task force.
       (b) Environmental Statutes.--
       (1) Study.--The Administrator shall conduct a study 
     examining how, and under what circumstances, the 
     environmental statutes for which the Environmental Protection 
     Agency has responsibility would apply to carbon dioxide 
     injection and geologic sequestration activities.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report describing the results of the study 
     conducted under paragraph (1).

     SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND 
                   EARLY DEPLOYMENT PROGRAM.

       (a) Definitions.--For purposes of this section:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (2) Distribution utility.--The term ``distribution 
     utility'' means an entity that distributes electricity 
     directly to retail consumers under a legal, regulatory, or 
     contractual obligation to do so.
       (3) Electric utility.--The term ``electric utility'' has 
     the meaning provided by section 3(22) of the Federal Power 
     Act (16 U.S.C. 796(22)).
       (4) Fossil fuel-based electricity.--The term ``fossil fuel-
     based electricity'' means electricity that is produced from 
     the combustion of fossil fuels.
       (5) Fossil fuel.--The term ``fossil fuel'' means coal, 
     petroleum, natural gas or any derivative of coal, petroleum, 
     or natural gas.
       (6) Corporation.--The term ``Corporation'' means the Carbon 
     Storage Research Corporation established in accordance with 
     this section.
       (7) Qualified industry organization.--The term ``qualified 
     industry organization'' means the Edison Electric Institute, 
     the American Public Power Association, the National Rural 
     Electric Cooperative Association, a successor organization of 
     such organizations, or a group of owners or operators of 
     distribution utilities delivering fossil fuel-based 
     electricity who collectively represent at least 20 percent of 
     the volume of fossil fuel-based electricity delivered by 
     distribution utilities to consumers in the United States.
       (8) Retail consumer.--The term ``retail consumer'' means an 
     end-user of electricity.
       (b) Carbon Storage Research Corporation.--
       (1) Establishment.--
       (A) Referendum.--Qualified industry organizations may 
     conduct, at their own expense, a referendum among the owners 
     or operators of distribution utilities delivering fossil 
     fuel-based electricity for the creation of a Carbon Storage 
     Research Corporation. Such referendum shall be conducted by 
     an independent auditing firm agreed to by the qualified 
     industry organizations. Voting rights in such referendum 
     shall be based on the quantity of fossil fuel-based 
     electricity delivered to consumers in the previous calendar 
     year or other representative period as determined by the 
     Secretary pursuant to subsection (f). Upon approval of those 
     persons representing two-thirds of the total quantity of 
     fossil fuel-based electricity delivered to retail consumers, 
     the Corporation shall be established unless opposed by the 
     State regulatory authorities pursuant to subparagraph (B). 
     All distribution utilities voting in the referendum shall 
     certify to the independent auditing firm the quantity of 
     fossil fuel-based electricity represented by their vote.
       (B) State regulatory authorities.--Upon its own motion or 
     the petition of a qualified industry organization, each State 
     regulatory authority shall consider its support or opposition 
     to the creation of the Corporation under subparagraph (A). 
     State regulatory authorities may notify the independent 
     auditing firm referred to in subparagraph (A) of their views 
     on the creation of the Corporation within 180 days after the 
     date of enactment of this Act. If 40 percent or more of the 
     State regulatory authorities submit to the

[[Page 16523]]

     independent auditing firm written notices of opposition, the 
     Corporation shall not be established notwithstanding the 
     approval of the qualified industry organizations as provided 
     in subparagraph (A).
       (2) Termination.--The Corporation shall be authorized to 
     collect assessments and conduct operations pursuant to this 
     section for a 10-year period from the date 6 months after the 
     date of enactment of this Act. After such 10-year period, the 
     Corporation is no longer authorized to collect assessments 
     and shall be dissolved on the date 15 years after such date 
     of enactment, unless the period is extended by an Act of 
     Congress.
       (3) Governance.--The Corporation shall operate as a 
     division or affiliate of the Electric Power Research 
     Institute (referred to in this section as ``EPRI'') and be 
     managed by a Board of not more than 15 voting members 
     responsible for its operations, including compliance with 
     this section. EPRI, in consultation with the Edison Electric 
     Institute, the American Public Power Association and the 
     National Rural Electric Cooperative Association shall appoint 
     the Board members under clauses (i), (ii), and (iii) of 
     subparagraph (A) from among candidates recommended by those 
     organizations. At least a majority of the Board members 
     appointed by EPRI shall be representatives of distribution 
     utilities subject to assessments under subsection (d).
       (A) Members.--The Board shall include at least one 
     representative of each of the following:
       (i) Investor-owned utilities.
       (ii) Utilities owned by a State agency, a municipality, and 
     an Indian tribe.
       (iii) Rural electric cooperatives.
       (iv) Fossil fuel producers.
       (v) Nonprofit environmental organizations.
       (vi) Independent generators or wholesale power providers.
       (vii) Consumer groups.
       (B) Nonvoting members.--The Board shall also include as 
     additional nonvoting Members the Secretary of Energy or his 
     designee and 2 representatives of State regulatory 
     authorities as defined in section 3(17) of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)), each 
     designated by the National Association of State Regulatory 
     Utility Commissioners from States that are not within the 
     same transmission interconnection.
       (4) Compensation.--Corporation Board members shall receive 
     no compensation for their services, nor shall Corporation 
     Board members be reimbursed for expenses relating to their 
     service.
       (5) Terms.--Corporation Board members shall serve terms of 
     4 years and may serve not more than 2 full consecutive terms. 
     Members filling unexpired terms may serve not more than a 
     total of 8 consecutive years. Former members of the 
     Corporation Board may be reappointed to the Corporation Board 
     if they have not been members for a period of 2 years. 
     Initial appointments to the Corporation Board shall be for 
     terms of 1, 2, 3, and 4 years, staggered to provide for the 
     selection of 3 members each year.
       (6) Status of corporation.--The Corporation shall not be 
     considered to be an agency, department, or instrumentality of 
     the United States, and no officer or director or employee of 
     the Corporation shall be considered to be an officer or 
     employee of the United States Government, for purposes of 
     title 5 or title 31 of the United States Code, or for any 
     other purpose, and no funds of the Corporation shall be 
     treated as public money for purposes of chapter 33 of title 
     31, United States Code, or for any other purpose.
       (c) Functions and Administration of the Corporation.--
       (1) In general.--The Corporation shall establish and 
     administer a program to accelerate the commercial 
     availability of carbon dioxide capture and storage 
     technologies and methods, including technologies which 
     capture and store, or capture and convert, carbon dioxide. 
     Under such program competitively awarded grants, contracts, 
     and financial assistance shall be provided and entered into 
     with eligible entities. Except as provided in paragraph (8), 
     the Corporation shall use all funds derived from assessments 
     under subsection (d) to issue grants and contracts to 
     eligible entities.
       (2) Purpose.--The purposes of the grants, contracts, and 
     assistance under this subsection shall be to support 
     commercial-scale demonstrations of carbon capture or storage 
     technology projects capable of advancing the technologies to 
     commercial readiness. Such projects should encompass a range 
     of different coal and other fossil fuel varieties, be 
     geographically diverse, involve diverse storage media, and 
     employ capture or storage, or capture and conversion, 
     technologies potentially suitable either for new or for 
     retrofit applications. The Corporation shall seek, to the 
     extent feasible, to support at least 5 commercial-scale 
     demonstration projects integrating carbon capture and 
     sequestration or conversion technologies.
       (3) Eligible entities.--Entities eligible for grants, 
     contracts or assistance under this subsection may include 
     distribution utilities, electric utilities and other private 
     entities, academic institutions, national laboratories, 
     Federal research agencies, State and tribal research 
     agencies, nonprofit organizations, or consortiums of 2 or 
     more entities. Pilot-scale and similar small-scale projects 
     are not eligible for support by the Corporation. Owners or 
     developers of projects supported by the Corporation shall, 
     where appropriate, share in the costs of such projects.
       (4) Grants for early movers.--Fifty percent of the funds 
     raised under this section shall be provided in the form of 
     grants to electric utilities that had, prior to the award of 
     any grant under this section, committed resources to deploy a 
     large scale electricity generation unit with integrated 
     carbon capture and sequestration or conversion applied to a 
     substantial portion of the unit's carbon dioxide emissions.   
     Grant funds shall be provided to defray costs incurred by 
     such electricity utilities for at least 5 such electricity 
     generation units.
       (5) Administration.--The members of the Board of Directors 
     of the Corporation shall elect a Chairman and other officers 
     as necessary, may establish committees and subcommittees of 
     the Corporation, and shall adopt rules and bylaws for the 
     conduct of business and the implementation of this section. 
     The Board shall appoint an Executive Director and 
     professional support staff who may be employees of the 
     Electric Power Research Institute (EPRI). After consultation 
     with the Technical Advisory Committee established under 
     subsection (j), the Secretary, and the Director of the 
     National Energy Technology Laboratory to obtain advice and 
     recommendations on plans, programs, and project selection 
     criteria, the Board shall establish priorities for grants, 
     contracts, and assistance; publish requests for proposals for 
     grants, contracts, and assistance; and award grants, 
     contracts, and assistance competitively, on the basis of 
     merit, after the establishment of procedures that provide for 
     scientific peer review by the Technical Advisory Committee. 
     The Board shall give preference to applications that reflect 
     the best overall value and prospect for achieving the 
     purposes of the section, such as those which demonstrate an 
     integrated approach for capture and storage or capture and 
     conversion technologies. The Board members shall not 
     participate in making grants or awards to entities with whom 
     they are affiliated.
       (6) Uses of grants, contracts, and assistance.--A grant, 
     contract, or other assistance provided under this subsection 
     may be used to purchase carbon dioxide when needed to conduct 
     tests of carbon dioxide storage sites, in the case of 
     established projects that are storing carbon dioxide 
     emissions, or for other purposes consistent with the purposes 
     of this section. The Corporation shall make publicly 
     available at no cost information learned as a result of 
     projects which it supports financially.
       (7) Intellectual property.--The Board shall establish 
     policies regarding the ownership of intellectual property 
     developed as a result of Corporation grants and other forms 
     of technology support. Such policies shall encourage 
     individual ingenuity and invention.
       (8) Administrative expenses.--Up to 5 percent of the funds 
     collected in any fiscal year under subsection (d) may be used 
     for the administrative expenses of operating the Corporation 
     (not including costs incurred in the determination and 
     collection of the assessments pursuant to subsection (d)).
       (9) Programs and budget.--Before August 1 each year, the 
     Corporation, after consulting with the Technical Advisory 
     Committee and the Secretary and the Director of the 
     Department's National Energy Technology Laboratory and other 
     interested parties to obtain advice and recommendations, 
     shall publish for public review and comment its proposed 
     plans, programs, project selection criteria, and projects to 
     be funded by the Corporation for the next calendar year. The 
     Corporation shall also publish for public review and comment 
     a budget plan for the next calendar year, including the 
     probable costs of all programs, projects, and contracts and a 
     recommended rate of assessment sufficient to cover such 
     costs. The Secretary may recommend programs and activities 
     the Secretary considers appropriate. The Corporation shall 
     include in the first publication it issues under this 
     paragraph a strategic plan or roadmap for the achievement of 
     the purposes of the Corporation, as set forth in paragraph 
     (2).
       (10) Records; audits.--The Corporation shall keep minutes, 
     books, and records that clearly reflect all of the acts and 
     transactions of the Corporation and make public such 
     information. The books of the Corporation shall be audited by 
     a certified public accountant at least once each fiscal year 
     and at such other times as the Corporation may designate. 
     Copies of each audit shall be provided to the Congress, all 
     Corporation board members, all qualified industry 
     organizations, each State regulatory authority and, upon 
     request, to other members of the industry. If the audit 
     determines that the Corporation's practices fail to meet 
     generally accepted accounting principles the assessment 
     collection authority of the Corporation under subsection (d) 
     shall be suspended until a certified public accountant 
     renders a subsequent opinion that the failure has been 
     corrected. The Corporation shall make its books and records 
     available for review by the Secretary or the Comptroller 
     General of the United States.
       (11) Public access.--The Corporation Board's meetings shall 
     be open to the public

[[Page 16524]]

     and shall occur after at least 30 days advance public notice. 
     Meetings of the Board of Directors may be closed to the 
     public where the agenda of such meetings includes only 
     confidential matters pertaining to project selection, the 
     award of grants or contracts, personnel matters, or the 
     receipt of legal advice. The minutes of all meetings of the 
     Corporation shall be made available to and readily accessible 
     by the public.
       (12) Annual report.--Each year the Corporation shall 
     prepare and make publicly available a report which includes 
     an identification and description of all programs and 
     projects undertaken by the Corporation during the previous 
     year. The report shall also detail the allocation or planned 
     allocation of Corporation resources for each such program and 
     project. The Corporation shall provide its annual report to 
     the Congress, the Secretary, each State regulatory authority, 
     and upon request to the public. The Secretary shall, not less 
     than 60 days after receiving such report, provide to the 
     President and Congress a report assessing the progress of the 
     Corporation in meeting the objectives of this section.
       (d) Assessments.--
       (1) Amount.--(A) In all calendar years following its 
     establishment, the Corporation shall collect an assessment on 
     distribution utilities for all fossil fuel-based electricity 
     delivered directly to retail consumers (as determined under 
     subsection (f)). The assessments shall reflect the relative 
     carbon dioxide emission rates of different fossil fuel-based 
     electricity, and initially shall be not less than the 
     following amounts for coal, natural gas, and oil:

Fuel type                                             Rate of assessment
                                                      per kilowatt hour
  Coal..............................................           $0.00043
  Natural Gas.......................................           $0.00022
  Oil...............................................          $0.00032.
 

       (B) The Corporation is authorized to adjust the assessments 
     on fossil fuel-based electricity to reflect changes in the 
     expected quantities of such electricity from different fuel 
     types, such that the assessments generate not less than $1.0 
     billion and not more than $1.1 billion annually. The 
     Corporation is authorized to supplement assessments through 
     additional financial commitments.
       (2) Investment of funds.--Pending disbursement pursuant to 
     a program, plan, or project, the Corporation may invest funds 
     collected through assessments under this subsection, and any 
     other funds received by the Corporation, only in obligations 
     of the United States or any agency thereof, in general 
     obligations of any State or any political subdivision 
     thereof, in any interest-bearing account or certificate of 
     deposit of a bank that is a member of the Federal Reserve 
     System, or in obligations fully guaranteed as to principal 
     and interest by the United States.
       (3) Reversion of unused funds.--If the Corporation does not 
     disburse, dedicate or assign 75 percent or more of the 
     available proceeds of the assessed fees in any calendar year 
     7 or more years following its establishment, due to an 
     absence of qualified projects or similar circumstances, it 
     shall reimburse the remaining undedicated or unassigned 
     balance of such fees, less administrative and other expenses 
     authorized by this section, to the distribution utilities 
     upon which such fees were assessed, in proportion to their 
     collected assessments.
       (e)  ERCOT.--
       (1) Assessment, collection, and remittance.--(A) 
     Notwithstanding any other provision of this section, within 
     ERCOT, the assessment provided for in subsection (d) shall 
     be--
       (i) levied directly on qualified scheduling entities, or 
     their successor entities;
       (ii) charged consistent with other charges imposed on 
     qualified scheduling entities as a fee on energy used by the 
     load-serving entities; and
       (iii) collected and remitted by ERCOT to the Corporation in 
     the amounts and in the same manner as set forth in subsection 
     (d).
       (B) The assessment amounts referred to in subparagraph (A) 
     shall be--
       (i) determined by the amount and types of fossil fuel-based 
     electricity delivered directly to all retail customers in the 
     prior calendar year beginning with the year ending 
     immediately prior to the period described in subsection 
     (b)(2); and
       (ii) take into account the number of renewable energy 
     credits retired by the load-serving entities represented by a 
     qualified scheduling entity within the prior calendar year.
       (2) Administration expenses.--Up to 1 percent of the funds 
     collected in any fiscal year by ERCOT under the provisions of 
     this subsection may be used for the administrative expenses 
     incurred in the determination, collection and remittance of 
     the assessments to the Corporation.
       (3) Audit.--ERCOT shall provide a copy of its annual audit 
     pertaining to the administration of the provisions of this 
     subsection to the Corporation.
       (4) Definitions.--For the purposes of this subsection:
       (A) The term ``ERCOT'' means the Electric Reliability 
     Council of Texas.
       (B) The term ``load-serving entities'' has the meaning 
     adopted by ERCOT Protocols and in effect on the date of 
     enactment of this Act.
       (C) The term ``qualified scheduling entities'' has the 
     meaning adopted by ERCOT Protocols and in effect on the date 
     of enactment of this Act.
       (D) The term ``renewable energy credit'' has the meaning as 
     promulgated and adopted by the Public Utility Commission of 
     Texas pursuant to section 39.904(b) of the Public Utility 
     Regulatory Act of 1999, and in effect on the date of 
     enactment of this Act.
       (f) Determination of Fossil Fuel-based Electricity 
     Deliveries.--
       (1) Findings.--The Congress finds that:
       (A) The assessments under subsection (d) are to be 
     collected based on the amount of fossil fuel-based 
     electricity delivered by each distribution utility.
       (B) Since many distribution utilities purchase all or part 
     of their retail consumer's electricity needs from other 
     entities, it may not be practical to determine the precise 
     fuel mix for the power sold by each individual distribution 
     utility.
       (C) It may be necessary to use average data, often on a 
     regional basis with reference to Regional Transmission 
     Organization (``RTO'') or NERC regions, to make the 
     determinations necessary for making assessments.
       (2) DOE proposed rule.--The Secretary, acting in close 
     consultation with the Energy Information Administration, 
     shall issue for notice and comment a proposed rule to 
     determine the level of fossil fuel electricity delivered to 
     retail customers by each distribution utility in the United 
     States during the most recent calendar year or other period 
     determined to be most appropriate. Such proposed rule shall 
     balance the need to be efficient, reasonably precise, and 
     timely, taking into account the nature and cost of data 
     currently available and the nature of markets and regulation 
     in effect in various regions of the country. Different 
     methodologies may be applied in different regions if 
     appropriate to obtain the best balance of such factors.
       (3) Final rule.--Within 6 months after the date of 
     enactment of this Act, and after opportunity for comment, the 
     Secretary shall issue a final rule under this subsection for 
     determining the level and type of fossil fuel-based 
     electricity delivered to retail customers by each 
     distribution utility in the United States during the 
     appropriate period. In issuing such rule, the Secretary may 
     consider opportunities and costs to develop new data sources 
     in the future and issue recommendations for the Energy 
     Information Administration or other entities to collect such 
     data. After notice and opportunity for comment the Secretary 
     may, by rule, subsequently update and modify the methodology 
     for making such determinations.
       (4) Annual determinations.--Pursuant to the final rule 
     issued under paragraph (3), the Secretary shall make annual 
     determinations of the amounts and types for each such utility 
     and publish such determinations in the Federal Register. Such 
     determinations shall be used to conduct the referendum under 
     subsection (b) and by the Corporation in applying any 
     assessment under this subsection.
       (5) Rehearing and judicial review.--The owner or operator 
     of any distribution utility that believes that the Secretary 
     has misapplied the methodology in the final rule in 
     determining the amount and types of fossil fuel electricity 
     delivered by such distribution utility may seek rehearing of 
     such determination within 30 days of publication of the 
     determination in the Federal Register. The Secretary shall 
     decide such rehearing petitions within 30 days. The 
     Secretary's determinations following rehearing shall be final 
     and subject to judicial review in the United States Court of 
     Appeals for the District of Columbia.
       (g) Compliance With Corporation Assessments.--The 
     Corporation may bring an action in the appropriate court of 
     the United States to compel compliance with an assessment 
     levied by the Corporation under this section. A successful 
     action for compliance under this subsection may also require 
     payment by the defendant of the costs incurred by the 
     Corporation in bringing such action.
       (h) Midcourse Review.--Not later than 5 years following 
     establishment of the Corporation, the Comptroller General of 
     the United States shall prepare an analysis, and report to 
     Congress, assessing the Corporation's activities, including 
     project selection and methods of disbursement of assessed 
     fees, impacts on the prospects for commercialization of 
     carbon capture and storage technologies, adequacy of funding, 
     and administration of funds. The report shall also make such 
     recommendations as may be appropriate in each of these areas. 
     The Corporation shall reimburse the Government Accountability 
     Office for the costs associated with performing this 
     midcourse review.
       (i) Recovery of Costs.--
       (1) In general.--A distribution utility whose transmission, 
     delivery, or sales of electric energy are subject to any form 
     of rate regulation shall not be denied the opportunity to 
     recover the full amount of the prudently incurred costs 
     associated with complying with this section, consistent with 
     applicable State or Federal law.
       (2) Ratepayer rebates.--Regulatory authorities that approve 
     cost recovery pursuant to paragraph (1) may order rebates to 
     ratepayers to the extent that distribution

[[Page 16525]]

     utilities are reimbursed undedicated or unassigned balances 
     pursuant to subsection (d)(3).
       (j) Technical Advisory Committee.--
       (1) Establishment.--There is established an advisory 
     committee, to be known as the ``Technical Advisory 
     Committee''.
       (2) Membership.--The Technical Advisory Committee shall be 
     comprised of not less than 7 members appointed by the Board 
     from among academic institutions, national laboratories, 
     independent research institutions, and other qualified 
     institutions. No member of the Committee shall be affiliated 
     with EPRI or with any organization having members serving on 
     the Board. At least one member of the Committee shall be 
     appointed from among officers or employees of the Department 
     of Energy recommended to the Board by the Secretary of 
     Energy.
       (3) Chairperson and vice chairperson.--The Board shall 
     designate one member of the Technical Advisory Committee to 
     serve as Chairperson of the Committee and one to serve as 
     Vice Chairperson of the Committee.
       (4) Compensation.--The Board shall provide compensation to 
     members of the Technical Advisory Committee for travel and 
     other incidental expenses and such other compensation as the 
     Board determines to be necessary.
       (5) Purpose.--The Technical Advisory Committee shall 
     provide independent assessments and technical evaluations, as 
     well as make non-binding recommendations to the Board, 
     concerning Corporation activities, including but not limited 
     to the following:
       (A) Reviewing and evaluating the Corporation's plans and 
     budgets described in subsection (c)(9), as well as any other 
     appropriate areas, which could include approaches to 
     prioritizing technologies, appropriateness of engineering 
     techniques, monitoring and verification technologies for 
     storage, geological site selection, and cost control 
     measures.
       (B) Making annual non-binding recommendations to the Board 
     concerning any of the matters referred to in subparagraph 
     (A), as well as what types of investments, scientific 
     research, or engineering practices would best further the 
     goals of the Corporation.
       (6) Public availability.--All reports, evaluations, and 
     other materials of the Technical Advisory Committee shall be 
     made available to the public by the Board, without charge, at 
     time of receipt by the Board.
       (k) Lobbying Restrictions.--No funds collected by the 
     Corporation shall be used in any manner for influencing 
     legislation or elections, except that the Corporation may 
     recommend to the Secretary and the Congress changes in this 
     section or other statutes that would further the purposes of 
     this section.
       (l) Davis-Bacon Compliance.--The Corporation shall ensure 
     that entities receiving grants, contracts, or other financial 
     support from the Corporation for the project activities 
     authorized by this section are in compliance with the Davis-
     Bacon Act (40 U.S.C. 276a-276a-5).

     SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND 
                   SEQUESTRATION TECHNOLOGIES.

       Part H of title VII of the Clean Air Act (as added by 
     section 321 of this Act) is amended by adding the following 
     new section after section 785:

     ``SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND 
                   SEQUESTRATION TECHNOLOGIES.

       ``(a) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations providing for the distribution of 
     emission allowances allocated pursuant to section 782(f), 
     pursuant to the requirements of this section, to support the 
     commercial deployment of carbon capture and sequestration 
     technologies in both electric power generation and industrial 
     operations.
       ``(b) Eligibility Criteria.--For an owner or operator of a 
     project to be eligible to receive emission allowances under 
     this section, the project must--
       ``(1) implement carbon capture and sequestration 
     technology--
       ``(A) at an electric generating unit that--
       ``(i) has a nameplate capacity of 200 megawatts or more;
       ``(ii) in the case of a retrofit application, applies the 
     carbon capture and sequestration technology to the flue gas 
     from at least 200 megawatts of the total nameplate generating 
     capacity of the unit, provided that clause (i) shall apply 
     without exception;
       ``(iii) derives at least 50 percent of its annual fuel 
     input from coal, petroleum coke, or any combination of these 
     2 fuels; and
       ``(iv) upon implementation of capture and sequestration 
     technology, will achieve an emission limit that is at least a 
     50 percent reduction in emissions of the carbon dioxide 
     produced by--

       ``(I) the unit, measured on an annual basis, determined in 
     accordance with section 812(b)(2); or
       ``(II) in the case of retrofit applications under clause 
     (ii), the treated portion of flue gas from the unit, measured 
     on an annual basis, determined in accordance with section 
     812(b)(2); or

       ``(B) at an industrial source that--
       ``(i) absent carbon capture and sequestration, would emit 
     greater than 50,000 tons per year of carbon dioxide;
       ``(ii) upon implementation, will achieve an emission limit 
     that is at least a 50 percent reduction in emissions of the 
     carbon dioxide produced by the emission point, measured on an 
     annual basis, determined in accordance with section 
     812(b)(2); and
       ``(iii) does not produce a liquid transportation fuel from 
     a solid fossil-based feedstock;
       ``(2) geologically sequester carbon dioxide at a site that 
     meets all applicable permitting and certification 
     requirements for geologic sequestration, or, pursuant to such 
     requirements as the Administrator may prescribe by 
     regulation, convert captured carbon dioxide to a stable form 
     that will safely and permanently sequester such carbon 
     dioxide;
       ``(3) meet all other applicable State, tribal, and Federal 
     permitting requirements; and
       ``(4) be located in the United States.
       ``(c) Phase I Distribution to Electric Generating Units.--
       ``(1) Application.--This subsection shall apply only to 
     projects at the first 6 gigawatts of electric generating 
     units, measured in cumulative generating capacity of such 
     units, that receive allowances under this section.
       ``(2) Distribution.--The Administrator shall distribute 
     emission allowances allocated under section 782(f) to the 
     owner or operator of each eligible project at an electric 
     generating unit in a quantity equal to the quotient obtained 
     by dividing--
       ``(A) the product obtained by multiplying--
       ``(i) the number of metric tons of carbon dioxide emissions 
     avoided through capture and sequestration of emissions by the 
     project, as determined pursuant to such methodology as the 
     Administrator shall prescribe by regulation; and
       ``(ii) a bonus allowance value, pursuant to paragraph (3); 
     by
       ``(B) the average fair market value of an emission 
     allowance during the preceding year.
       ``(3) Bonus allowance values.--
       ``(A) For a generating unit achieving the capture and 
     sequestration of 85 percent or more of the carbon dioxide 
     that otherwise would be emitted by such unit, the bonus 
     allowance value shall be $90 per ton.
       ``(B) The Administrator shall by regulation establish a 
     bonus allowance value for each rate of lower capture and 
     sequestration achieved by a generating unit, from a minimum 
     of $50 per ton for a 50 percent rate and varying directly 
     with increasing rates of capture and sequestration up to $90 
     per ton for an 85 percent rate.
       ``(C) For a generating unit that achieves the capture and 
     sequestration of at least 50 percent of the carbon dioxide 
     that otherwise would be emitted by such unit by not later 
     than January 1, 2017, the otherwise applicable bonus 
     allowance value under this paragraph shall be increased by 
     $10, provided that the owner of such unit notifies the 
     Administrator by not later than January 1, 2012, of its 
     intent to achieve such rate of capture and sequestration.
       ``(D) For a carbon capture and sequestration project 
     sequestering in a geological formation for purposes of 
     enhanced hydrocarbon recovery, the Administrator shall, by 
     regulation, reduce the applicable bonus allowance value under 
     this paragraph to reflect the lower net cost of the project 
     when compared to sequestration into geological formations 
     solely for purposes of sequestration.
       ``(E) The Administrator shall annually adjust for inflation 
     the bonus allowance values established under this paragraph.
       ``(d) Phase II Distribution to Electric Generating Units.--
       ``(1) Application.--This subsection shall apply only to the 
     distribution of emission allowances for carbon capture and 
     sequestration projects at electric generating units after the 
     capacity threshold identified in subsection (c)(1) is 
     reached.
       ``(2) Regulations.--Not later than 2 years prior to the 
     date on which the capacity threshold identified in subsection 
     (c)(1) is projected to be reached, the Administrator shall 
     promulgate regulations to govern the distribution of emission 
     allowances to the owners or operators of eligible projects 
     under this subsection.
       ``(3) Reverse auctions.--
       ``(A) In general.--Except as provided in paragraph (4), the 
     regulations promulgated under paragraph (2) shall provide for 
     the distribution of emission allowances to the owners or 
     operators of eligible projects under this subsection through 
     reverse auctions, which shall be held no less frequently than 
     once each calendar year. The Administrator may establish a 
     separate auction for each of no more than 5 different project 
     categories, defined on the basis of coal type, capture 
     technology, geological formation type, new unit versus 
     retrofit application, such other factors as the Administrator 
     may prescribe, or any combination thereof. The Administrator 
     may establish appropriate minimum rates of capture and 
     sequestration in implementing this paragraph.
       ``(B) Auction process.--At each reverse auction--
       ``(i) the Administrator shall solicit bids from eligible 
     projects;
       ``(ii) eligible projects participating in the auction shall 
     submit a bid including the desired level of carbon dioxide 
     sequestration

[[Page 16526]]

     incentive per ton and the estimated quantity of carbon 
     dioxide that the project will permanently sequester over 10 
     years; and
       ``(iii) the Administrator shall select bids, within each 
     auction, for the sequestration amount submitted, beginning 
     with the eligible project submitting the bid for the lowest 
     level of sequestration incentive on a per ton basis and 
     meeting such other requirements as the Administrator may 
     specify, until the amount of funds available for the reverse 
     auction is committed.
       ``(C) Form of distribution.--The Administrator shall 
     distribute emission allowances to the owners or operators of 
     eligible projects selected through a reverse auction under 
     this paragraph pursuant to a formula equivalent to that 
     described in subsection (c)(2), except that the bonus 
     allowance value that is bid by the entity shall be 
     substituted for the bonus allowance values set forth in 
     subsection (c)(3).
       ``(4) Alternative distribution method.--
       ``(A) In general.--If the Administrator determines that 
     reverse auctions would not provide for efficient and cost-
     effective commercial deployment of carbon capture and 
     sequestration technologies, the Administrator may instead, 
     through regulations promulgated under paragraph (2) or (5), 
     prescribe a schedule for the award of bonus allowances to the 
     owners or operators of eligible projects under this 
     subsection, in accordance with the requirements of this 
     paragraph.
       ``(B) Multiple tranches.--The Administrator shall divide 
     emission allowances available for distribution to the owners 
     or operators of eligible projects into a series of tranches, 
     each supporting the deployment of a specified quantity of 
     cumulative electric generating capacity utilizing carbon 
     capture and sequestration technology, each of which shall not 
     be greater than 6 gigawatts.
       ``(C) Method of distribution.--The Administrator shall 
     distribute emission allowances within each tranche, on a 
     first-come, first-served basis--
       ``(i) based on the date of full-scale operation of capture 
     and sequestration technology; and
       ``(ii) pursuant to a formula, similar to that set forth in 
     subsection (c)(2) (except that the Administrator shall 
     prescribe bonus allowance values different than those set 
     forth in subsection (c)(3)), establishing the number of 
     allowances to be distributed per ton of carbon dioxide 
     sequestered by the project.
       ``(D) Requirements.--For each tranche established pursuant 
     to subparagraph (B), the Administrator shall establish a 
     schedule for distributing emission allowances that--
       ``(i) is based on a sliding scale that provides higher 
     bonus allowance values for projects achieving higher rates of 
     capture and sequestration;
       ``(ii) for each capture and sequestration rate, establishes 
     a bonus allowance value that is lower than that established 
     for such rate in the previous tranche (or, in the case of the 
     first tranche, than that established for such rate under 
     subsection (c)(3)); and
       ``(iii) may establish different bonus allowance levels for 
     no more than 5 different project categories, defined by coal 
     type, capture technology, geological formation type, new unit 
     versus retrofit application, such other factors as the 
     Administrator may prescribe, or any combination thereof.
       ``(E) Criteria for establishing bonus allowance values.--In 
     setting bonus allowance values under this paragraph, the 
     Administrator shall seek to cover no more than the reasonable 
     incremental capital and operating costs of a project that are 
     attributable to implementation of carbon capture, 
     transportation, and sequestration technologies, taking into 
     account--
       ``(i) the reduced cost of compliance with section 722 of 
     this Act;
       ``(ii) the reduced cost associated with sequestering in a 
     geological formation for purposes of enhanced hydrocarbon 
     recovery when compared to sequestration into geological 
     formations solely for purposes of sequestration;
       ``(iii) the relevant factors defining the project category; 
     and
       ``(iv) such other factors as the Administrator determines 
     are appropriate.
       ``(5) Revision of regulations.--The Administrator shall 
     review, and as appropriate revise, the applicable regulations 
     under this subsection no less frequently than every 8 years.
       ``(e) Limits for Certain Electric Generating Units.--
       ``(1) Definitions.--For purposes of this subsection, the 
     terms `covered EGU' and `initially permitted' shall have the 
     meaning given those terms in section 812 of this Act.
       ``(2) Covered egus initially permitted from 2009 through 
     2014.--For a covered EGU that is initially permitted on or 
     after January 1, 2009, and before January 1, 2015, the 
     Administrator shall reduce the quantity of emission 
     allowances that the owner or operator of such covered EGU 
     would otherwise be eligible to receive under this section as 
     follows:
       ``(A) In the case of a unit commencing operation on or 
     before January 1, 2019, if the date in clause (ii)(I) is 
     earlier than the date in clause (ii)(II), by the product of--
       ``(i) 20 percent; and
       ``(ii) the number of years, if any, that have elapsed 
     between--

       ``(I) the earlier of January 1, 2020, or the date that is 5 
     years after the commencement of operation of such covered 
     EGU; and
       ``(II) the first year that such covered EGU achieves (and 
     thereafter maintains) an emission limit that is at least a 50 
     percent reduction in emissions of the carbon dioxide produced 
     by the unit, measured on an annual basis, as determined in 
     accordance with section 812(b)(2).

       ``(B) In the case of a unit commencing operation after 
     January 1, 2019, by the product of--
       ``(i) 20 percent; and
       ``(ii) the number of years between--

       ``(I) the commencement of operation of such covered EGU; 
     and
       ``(II) the first year that such covered EGU achieves (and 
     thereafter maintains) an emission limit that is at least a 50 
     percent reduction in emissions of the carbon dioxide produced 
     by the unit, measured on an annual basis, as determined in 
     accordance with section 812(b)(2).

       ``(3) Covered egus initially permitted from 2015 through 
     2019.--The owner or operator of a covered EGU that is 
     initially permitted on or after January 1, 2015, and before 
     January 1, 2020, shall be ineligible to receive emission 
     allowances pursuant to this section if such unit, upon 
     commencement of operations (and thereafter), does not achieve 
     and maintain an emission limit that is at least a 50 percent 
     reduction in emissions of the carbon dioxide produced by the 
     unit, measured on an annual basis, as determined in 
     accordance with section 812(b)(2).
       ``(f) Industrial Sources.--
       ``(1) Allowances.--The Administrator may distribute not 
     more than 15 percent of the allowances allocated under 
     section 782(f) for any vintage year to the owners or 
     operators of eligible industrial sources to support the 
     commercial-scale deployment of carbon capture and 
     sequestration technologies at such sources.
       ``(2) Distribution.--The Administrator shall, by 
     regulation, prescribe requirements for the distribution of 
     emission allowances to the owners or operators of industrial 
     sources under this subsection, based on a bonus allowance 
     formula that awards allowances to qualifying projects on the 
     basis of tons of carbon dioxide captured and permanently 
     sequestered. The Administrator may provide for the 
     distribution of emission allowances pursuant to--
       ``(A) a reverse auction method, similar to that described 
     under subsection (d)(3), including the use of separate 
     auctions for different project categories; or
       ``(B) an incentive schedule, similar to that described 
     under subsection (d)(4), which shall ensure that incentives 
     are set so as to satisfy the requirement described in 
     subsection (d)(4)(E).
       ``(3) Revision of regulations.--The Administrator shall 
     review, and as appropriate revise, the applicable regulations 
     under this subsection no less frequently than every 8 years.
       ``(g) Limitations.--Allowances may be distributed under 
     this section only for tons of carbon dioxide emissions that 
     have already been captured and sequestered. A qualifying 
     project may receive annual emission allowances under this 
     section only for the first 10 years of operation. No greater 
     than 72 gigawatts of total cumulative generating capacity 
     (including industrial applications, measured by such 
     equivalent metric as the Administrator may designate) may 
     receive emission allowances under this section. Upon reaching 
     the limit described in the preceding sentence, any emission 
     allowances that are allocated for carbon capture and 
     sequestration deployment under section 782(f) and are not yet 
     obligated under this section shall be treated as allowances 
     not designated for distribution for purposes of section 
     782(r).
       ``(h) Exhaustion of Account and Annual Roll-over of Surplus 
     Allowances.--
       ``(1) In distributing emission allowances under this 
     section, the Administrator shall ensure that qualifying 
     projects receiving allowances receive distributions for 10 
     years.
       ``(2) If the Administrator determines that the emission 
     allowances allocated under section 782(f) with a vintage year 
     that matches the year of distribution will be exhausted once 
     the estimated full 10-year distributions will be provided to 
     current eligible participants, the Administrator shall 
     provide to new eligible projects allowances from vintage 
     years after the year of the distribution.
       ``(i) Retrofit Applications.--(1) In calculating bonus 
     allowance values for retrofit applications eligible under 
     subsection (b)(1)(A)(ii) and (iv)(II), the Administrator 
     shall apply the required capture rates with respect to the 
     treated portion of flue gas from the unit.
       ``(2) No additional projects shall be eligible for 
     allowances under subsection (b)(1)(A)(ii) and (iv)(II) as of 
     such time as the Administrator reports, pursuant to section 
     812(d), that carbon capture and sequestration retrofit 
     projects at electric generating units that are eligible for 
     allowances under this section have been applied, in the 
     aggregate, to the flue gas generated by 1 gigawatt of total 
     cumulative generating capacity. ``The limitation in the 
     preceding sentence shall not apply to projects that meet the 
     eligibility criteria in subsection (b)(1)(A)(iv)(I).'' after 
     ``generating capacity.''.

[[Page 16527]]

       ``(j) Davis-Bacon Compliance.--All laborers and mechanics 
     employed on projects funded directly by or assisted in whole 
     or in part by this section through the use of emission 
     allowances shall be paid wages at rates not less than those 
     prevailing on projects of a character similar in the locality 
     as determined by the Secretary of Labor in accordance with 
     subchapter IV, chapter 31, part A of subtitle II of title 40, 
     United States Code. With respect to the labor standards 
     specified in this subsection, the Secretary of Labor shall 
     have the authority and functions set forth in Reorganization 
     Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.''.

     SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.

       (a) In General.--Title VIII of the Clean Air Act (as added 
     by section 331 of this Act) is amended by adding the 
     following new section after section 811:

     ``SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER 
                   PLANTS.

       ``(a) Definitions.--For purposes of this section:
       ``(1) Covered egu.--The term `covered EGU' means a utility 
     unit that is required to have a permit under section 503(a) 
     and is authorized under state or federal law to derive at 
     least 30 percent of its annual heat input from coal, 
     petroleum coke, or any combination of these fuels.
       ``(2) Initially permitted.--The term `initially permitted' 
     means that the owner or operator has received a Clean Air Act 
     preconstruction approval or permit, for the covered EGU as a 
     new (not a modified) source, but administrative review or 
     appeal of such approval or permit has not been exhausted. A 
     subsequent modification of any such approval or permits, 
     ongoing administrative or court review, appeals, or 
     challenges, or the existence or tolling of any time to pursue 
     further review, appeals, or challenges shall not affect the 
     date on which a covered EGU is considered to be initially 
     permitted under this paragraph.
       ``(b) Standards.--(1) A covered EGU that is initially 
     permitted on or after January 1, 2020, shall achieve an 
     emission limit that is a 65 percent reduction in emissions of 
     the carbon dioxide  produced by the  unit, as measured on an 
     annual basis, or meet such more stringent standard as the 
     Administrator may establish pursuant to subsection (c).
       ``(2) A covered EGU that is initially permitted after 
     January 1, 2009, and before January 1, 2020, shall, by the 
     applicable compliance date established under this paragraph, 
     achieve an emission limit that is a 50 percent reduction in 
     emissions of the carbon dioxide produced by the  unit, as 
     measured on an annual basis. Compliance with the requirement 
     set forth in this paragraph shall be required by the earliest 
     of the following:
       ``(A) Four years after the date the Administrator has 
     published pursuant to subsection (d) a report that there are 
     in commercial operation in the United States electric 
     generating units or other stationary sources equipped with 
     carbon capture and sequestration technology that, in the 
     aggregate--
       ``(i) have a total of at least 4 gigawatts of nameplate 
     generating capacity of which--
       ``(I) at least 3 gigawatts must be electric generating 
     units; and
       ``(II) up to 1 gigawatt may be industrial applications, for 
     which capture and sequestration of 3 million tons of carbon 
     dioxide per year on an aggregate annualized basis shall be 
     considered equivalent to 1 gigawatt;
       ``(ii) include at least 2 electric generating units, each 
     with a nameplate generating capacity of 250 megawatts or 
     greater, that capture, inject, and sequester carbon dioxide 
     into geologic formations other than oil and gas fields; and
       ``(iii) are capturing and sequestering in the aggregate at 
     least 12 million tons of carbon dioxide per year, calculated 
     on an aggregate annualized basis.
       ``(B) January 1, 2025.
       ``(3) If the deadline for compliance with paragraph (2) is 
     January 1, 2025, the Administrator may extend the deadline 
     for compliance by a covered EGU by up to 18 months if the 
     Administrator makes a determination, based on a showing by 
     the owner or operator of the unit, that it will be 
     technically infeasible for the unit to meet the standard by 
     the deadline. The owner or operator must submit a request for 
     such an extension by no later than January 1, 2022, and the 
     Administrator shall provide for public notice and comment on 
     the extension request.
       ``(c) Review and Revision of Standards.--Not later than 
     2025 and at 5-year intervals thereafter, the Administrator 
     shall review the standards for new covered EGUs under this 
     section and shall, by rule, reduce the maximum carbon dioxide 
     emission rate for new covered EGUs to a rate which reflects 
     the degree of emission limitation achievable through the 
     application of the best system of emission reduction which 
     (taking into account the cost of achieving such reduction and 
     any nonair quality health and environmental impact and energy 
     requirements) the Administrator determines has been 
     adequately demonstrated.
       ``(d)  Reports.--Not later than the date 18 months after 
     the date of enactment of this title and semiannually 
     thereafter, the Administrator shall publish a report on the 
     nameplate capacity of units (determined pursuant to 
     subsection (b)(2)(A)) in commercial operation in the United 
     States equipped with carbon capture and sequestration 
     technology, including the information described in subsection 
     (b)(2)(A) (including the cumulative generating capacity to 
     which carbon capture and sequestration retrofit projects 
     meeting the criteria described in section 786(b)(1)(A)(ii) 
     and (b)(1)(A)(iv)(II) has been applied and the quantities of 
     carbon dioxide captured and sequestered by such projects).
       ``(e) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations to carry out the requirements of this 
     section.''.

                    Subtitle C--Clean Transportation

     SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE.

       (a) Amendment of PURPA.--Section 111(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
     is amended by adding at the end the following:
       ``(20) Plug-in electric drive vehicle infrastructure.--
       ``(A) Utility plan for infrastructure.--Each electric 
     utility shall develop a plan to support the use of plug-in 
     electric drive vehicles, including heavy-duty hybrid electric 
     vehicles. The plan may provide for deployment of electrical 
     charging stations in public or private locations, including 
     street parking, parking garages, parking lots, homes, gas 
     stations, and highway rest stops. Any such plan may also 
     include--
       ``(i) battery exchange, fast charging infrastructure and 
     other services;
       ``(ii) triggers for infrastructure deployment based upon 
     market penetration of plug-in electric drive vehicles; and
       ``(iii) such other elements as the State determines 
     necessary to support plug-in electric drive vehicles.
     Each plan under this paragraph shall provide for the 
     deployment of the charging infrastructure or other 
     infrastructure necessary to adequately support the use of 
     plug-in electric drive vehicles.
       ``(B) Support requirements.--Each State regulatory 
     authority (in the case of each electric utility for which it 
     has ratemaking authority) and each utility (in the case of a 
     nonregulated utility) shall--
       ``(i) require that charging infrastructure deployed is 
     interoperable with products of all auto manufacturers to the 
     extent possible; and
       ``(ii) consider adopting minimum requirements for 
     deployment of electrical charging infrastructure and other 
     appropriate requirements necessary to support the use of 
     plug-in electric drive vehicles.
       ``(C) Cost recovery.--Each State regulatory authority (in 
     the case of each electric utility for which it has ratemaking 
     authority) and each utility (in the case of a nonregulated 
     utility) shall consider whether, and to what extent, to allow 
     cost recovery for plans and implementation of plans.
       ``(D) Smart grid integration.--The State regulatory 
     authority (in the case of each electric utility for which it 
     has ratemaking authority) and each utility (in the case of a 
     nonregulated utility) shall, in accordance with regulations 
     issued by the Federal Energy Regulatory Commission pursuant 
     to section 1305(d) of the Energy Independence and Security 
     Act of 2007--
       ``(i) establish any appropriate protocols and standards for 
     integrating plug-in electric drive vehicles into an 
     electrical distribution system, including Smart Grid systems 
     and devices as described in title XIII of the Energy 
     Independence and Security Act of 2007;
       ``(ii) include, to the extent feasible, the ability for 
     each plug-in electric drive vehicle to be identified 
     individually and to be associated with its owner's electric 
     utility account, regardless of the location that the vehicle 
     is plugged in, for purposes of appropriate billing for any 
     electricity required to charge the vehicle's batteries as 
     well as any crediting for electricity provided to the 
     electric utility from the vehicle's batteries; and
       ``(iii) review the determination made in response to 
     section 1252 of the Energy Policy Act of 2005 in light of 
     this section, including whether time-of-use pricing should be 
     employed to enable the use of plug-in electric drive vehicles 
     to contribute to meeting peak-load and ancillary service 
     power needs.''.
       (b) Compliance.--
       (1) Time limitations.--Section 112(b) of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is 
     amended by adding the following at the end thereof:
       ``(7)(A) Not later than 3 years after the date of enactment 
     of this paragraph, each State regulatory authority (with 
     respect to each electric utility for which it has ratemaking 
     authority) and each nonregulated utility shall commence the 
     consideration referred to in section 111, or set a hearing 
     date for consideration, with respect to the standard 
     established by paragraph (20) of section 111(d).
       ``(B) Not later than 4 years after the date of enactment of 
     the this paragraph, each State regulatory authority (with 
     respect to each electric utility for which it has ratemaking 
     authority), and each nonregulated electric utility, shall 
     complete the consideration, and shall make the determination, 
     referred to in section 111 with respect to the

[[Page 16528]]

     standard established by paragraph (20) of section 111(d).''.
       (2) Failure to comply.--Section 112(c) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) 
     is amended by adding the following at the end: ``In the case 
     of the standards established by paragraph (20) of section 
     111(d), the reference contained in this subsection to the 
     date of enactment of this Act shall be deemed to be a 
     reference to the date of enactment of such paragraph.''.
       (3) Prior state actions.--Section 112(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) 
     is amended by striking ``(19)'' and inserting ``(20)'' before 
     ``of section 111(d)''.

     SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.

       (a) Deployment Program.--The Secretary of Energy shall 
     establish a program to deploy and integrate plug-in electric 
     drive vehicles into the electricity grid in multiple regions. 
     In carrying out the program, the Secretary may provide 
     financial assistance described under subsection (d), 
     consistent with the goals under subsection (b). The Secretary 
     shall select regions based upon applications for assistance 
     received pursuant to subsection (c).
       (b) Goals.--The goals of the program established pursuant 
     to subsection (a) shall be--
       (1) to demonstrate the viability of a vehicle-based 
     transportation system that is not overly dependent on 
     petroleum as a fuel and contributes to lower carbon emissions 
     than a system based on conventional vehicles;
       (2) to facilitate the integration of advanced vehicle 
     technologies into electricity distribution areas to improve 
     system performance and reliability;
       (3) to demonstrate the potential benefits of coordinated 
     investments in vehicle electrification on personal mobility 
     and a regional grid;
       (4) to demonstrate protocols and standards that facilitate 
     vehicle integration into the grid; and
       (5) to investigate differences in each region and 
     regulatory environment regarding best practices in 
     implementing vehicle electrification.
       (c) Applications.--Any State, Indian tribe, or local 
     government (or group of State, Indian tribe, or local 
     governments) may apply to the Secretary of Energy for 
     financial assistance in furthering the regional deployment 
     and integration into the electricity grid of plug-in electric 
     drive vehicles. Such applications may be jointly sponsored by 
     electric utilities, automobile manufacturers, technology 
     providers, car sharing companies or organizations, or other 
     persons or entities.
       (d) Use of Funds.--Pursuant to applications received under 
     subsection (c), the Secretary may make financial assistance 
     available to any applicant or joint sponsor of the 
     application to be used for any of the following:
       (1) Assisting persons located in the regional deployment 
     area, including fleet owners, in the purchase of new plug-in 
     electric drive vehicles by offsetting in whole or in part the 
     incremental cost of such vehicles above the cost of 
     comparable conventionally fueled vehicles.
       (2) Supporting the use of plug-in electric drive vehicles 
     by funding projects for the deployment of any of the 
     following:
       (A) Electrical charging infrastructure for plug-in electric 
     drive vehicles, including battery exchange, fast charging 
     infrastructure, and other services, in public or private 
     locations, including street parking, parking garages, parking 
     lots, homes, gas stations, and highway rest stops.
       (B) Smart Grid equipment and infrastructure, as described 
     in title XIII of the Energy Independence and Security Act of 
     2007, to facilitate the charging and integration of plug-in 
     electric drive vehicles.
       (3) Such other projects as the Secretary determines 
     appropriate to support the large-scale deployment of plug-in 
     electric drive vehicles in regional deployment areas.
       (e) Program Requirements.--The Secretary, in consultation 
     with the Administrator and the Secretary of Transportation, 
     shall determine design elements and requirements of the 
     program established pursuant to subsection (a), including--
       (1) the type of financial mechanism with which to provide 
     financial assistance;
       (2) criteria for evaluating applications submitted under 
     subsection (c), including the anticipated ability to promote 
     deployment and market penetration of vehicles that are less 
     dependent on petroleum as a fuel source; and
       (3) reporting requirements for entities that receive 
     financial assistance under this section, including a 
     comprehensive set of performance data characterizing the 
     results of the deployment program.
       (f) Information Clearinghouse.--The Secretary shall, as 
     part of the program established pursuant to subsection (a), 
     collect and make available to the public information 
     regarding the cost, performance, and other technical data 
     regarding the deployment and integration of plug-in electric 
     drive vehicles.
       (g) Authorization.--There are authorized to be appropriated 
     to carry out this section such sums as may be necessary.

     SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFACTURING.

       (a) Vehicle Manufacturing Assistance Program.--The 
     Secretary of Energy shall establish a program to provide 
     financial assistance to automobile manufacturers to 
     facilitate the manufacture of plug-in electric drive 
     vehicles, as defined in section 131(a)(5) of the Energy 
     Independence and Security Act of 2007, that are developed and 
     produced in the United States.
       (b) Financial Assistance.--The Secretary of Energy may 
     provide financial assistance to an automobile manufacturer 
     under the program established pursuant to ``subsection (a) 
     for the reconstruction or retooling of facilities for the 
     manufacture of plug-in electric drive vehicles or batteries 
     for such vehicles that are developed and produced in the 
     United States.''.
       (c) Coordination With Regional Deployment.--The Secretary 
     may provide financial assistance under subsection (b) in 
     conjunction with the award of financial assistance under the 
     large scale vehicle electrification program established 
     pursuant to section 122 of this Act.
       (d) Program Requirements.--The Secretary shall determine 
     design elements and requirements of the program established 
     pursuant to subsection (a), including--
       (1) the type of financial mechanism with which to provide 
     financial assistance;
       (2) criteria, in addition to the criteria described under 
     subsection (e), for evaluating applications for financial 
     assistance; and
       (3) reporting requirements for automobile manufacturers 
     that receive financial assistance under this section.
       (e) Criteria.--In selecting recipients of financial 
     assistance from among applicant automobile manufacturers, the 
     Secretary shall give preference to proposals that--
       (1) are most likely to be successful; and
       (2) are located in local markets that have the greatest 
     need for the facility.
       (f) Reports.--The Secretary shall annually submit to 
     Congress a report on the program established pursuant to this 
     section.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 124. INVESTMENT IN CLEAN VEHICLES.

       (a) Definitions.--In this section:
       (1) Advanced technology vehicles and qualifying 
     components.--The terms ``advanced technology vehicles'' and 
     ``qualifying components'' shall have the definition of such 
     terms in section 136 of the Energy Independence and Security 
     Act of 2007, except that for purposes of this section, the 
     average base year as described in such section 136(a)(1)(C) 
     shall be the following:
       (A) In each of the years 2012 through 2016, model year 
     2009.
       (B) In 2017, the Administrator shall, notwithstanding such 
     section 136(a)(1)(C), determine an appropriate baseline based 
     on technological and economic feasibility.
       (2) Plug-in electric drive vehicle.--The term ``plug-in 
     electric drive vehicle'' shall have the definition of such 
     term in section 131 of the Energy Independence and Security 
     Act of 2007.
       (b) Distribution of Allowances.--The Administrator shall, 
     in accordance with this section, distribute emission 
     allowances allocated pursuant to section 782(i) of the Clean 
     Air Act not later than September 30 of 2012 and each calendar 
     year thereafter through 2025.
       (c) Plug-in Electric Drive Vehicle Manufacturing and 
     Deployment.--
       (1) In general.--The Administrator shall, at the direction 
     of the Secretary of Energy, provide emission allowances 
     allocated pursuant to section 782(i) to applicants, joint 
     sponsors and automobile manufacturers pursuant to sections 
     122 and 123 of this Act.
       (2) Annual amount.--In each of the years 2012 through 2017, 
     one-quarter of the portion of the emission allowances 
     allocated pursuant to section 782(i) of the Clean Air Act 
     shall be available to carry out paragraph (1) such that--
       (A) one-eighth of the portion shall be available to carry 
     out section 122; and,
       (B) one-eighth of the portion shall be available to carry 
     out section 123.
       (3) Preference.--In directing the provision of emission 
     allowances under this subsection to carry out section 122, 
     the Secretary shall give preference to applications under 
     section 122(c) that are jointly sponsored by one or more 
     automobile manufacturers.
       (4) Multi-year commitments.--The Administrator shall commit 
     to providing emission allowances to an applicant, joint 
     sponsor, or automobile manufacturer for up to five 
     consecutive years if--
       (A) an application under section 122 or 123 of this Act 
     requests a multi-year commitment;
       (B) such application meets the criteria for support 
     established by the Secretary of Energy under sections 122 or 
     123 of this Act;
       (C) the Administrator confirms to the Secretary that 
     emission allowances will be available for a multi-year 
     commitment;
       (D) the Secretary of Energy determines that a multi-year 
     commitment for such application will advance the goals of 
     section 122 or 123; and
       (E) the Secretary of Energy directs the Administrator to 
     make a multi-year commitment.

[[Page 16529]]

       (5) Insufficient applications.--If, in any year, emission 
     allowances available under paragraph (2) cannot be provided 
     because of insufficient numbers of submitted applications 
     that meet the criteria for support established by the 
     Secretary of Energy under sections 122 or 123 of this Act, 
     the remaining emission allowances shall be distributed 
     according to subsection (d).
       (d) Advanced Technology Vehicles.--
       (1) In general.--The Administrator shall, at the direction 
     of the Secretary of Energy, provide any emission allowances 
     allocated pursuant to section 782(i) of the Clean Air Act 
     that are not provided under subsection (c) to automobile 
     manufacturers and component suppliers to pay not more than 30 
     percent of the cost of--
       (A) reequipping, expanding, or establishing a manufacturing 
     facility in the United States to produce--
       (i) qualifying advanced technology vehicles; or
       (ii) qualifying components; and
       (B) engineering integration performed in the United States 
     of qualifying vehicles and qualifying components.
       (2) Preference.--In directing the provision of emission 
     allowances under this subsection during the years 2012 
     through 2017, the Secretary shall give preference to 
     applications for projects that save the maximum number of 
     gallons of fuel.

     SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING INCENTIVE 
                   LOANS.

       Section 136(d)(1) of the Energy Independence and Security 
     Act of 2007 (42 U.S.C. 17013(d)(1)) is amended by striking 
     ``$25,000,000,000'' and inserting ``$50,000,000,000''.

     SEC. 126. DEFINITION OF RENEWABLE BIOMASS.

       Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(I)) is amended to read as follows:
       ``(I) Renewable biomass.--The term `renewable biomass' 
     means any of the following:
       ``(i) Materials, pre-commercial thinnings, or removed 
     invasive species from National Forest System land and public 
     lands (as defined in section 103 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1702)), including those 
     that are byproducts of preventive treatments (such as trees, 
     wood, brush, thinnings, chips, and slash), that are removed 
     as part of a federally recognized timber sale, or that are 
     removed to reduce hazardous fuels, to reduce or contain 
     disease or insect infestation, or to restore ecosystem 
     health, and that are--

       ``(I) not from components of the National Wilderness 
     Preservation System, Wilderness Study Areas, Inventoried 
     Roadless Areas, old growth stands, late-successional stands 
     (except for dead, severely damaged, or badly infested trees), 
     components of the National Landscape Conservation System, 
     National Monuments, National Conservation Areas, Designated 
     Primitive Areas, or Wild and Scenic Rivers corridors;
       ``(II) harvested in environmentally sustainable quantities, 
     as determined by the appropriate Federal land manager; and
       ``(III) harvested in accordance with Federal and State law, 
     and applicable land management plans.

       ``(ii) Any organic matter that is available on a renewable 
     or recurring basis from non-Federal land or land belonging to 
     an Indian or Indian tribe that is held in trust by the United 
     States or subject to a restriction against alienation imposed 
     by the United States, including--

       ``(I) renewable plant material, including--

       ``(aa) feed grains;
       ``(bb) other agricultural commodities;
       ``(cc) other plants and trees; and
       ``(dd) algae; and

       ``(II) waste material, including--

       ``(aa) crop residue;
       ``(bb) other vegetative waste material (including wood 
     waste and wood residues);
       ``(cc) animal waste and byproducts (including fats, oils, 
     greases, and manure);
       ``(dd) construction waste;
       ``(ee) food waste and yard waste; and
       ``(ff) the non-fossil biogenic portion of municipal solid 
     waste and construction, demolition, and disaster debris.
       ``(iii) Residues and byproducts from wood, pulp, or paper 
     products facilities.''.
       (c) Reduction.--The last sentence of section 211(o)(7)(D) 
     of the Clean Air Act (42 U.S.C. 7545(o)(7)(D)) is amended to 
     read as follows: ``For any calendar year in which the 
     Administrator makes such a reduction, the Administrator shall 
     also reduce the applicable volume of renewable fuel and 
     advanced biofuels requirement established under paragraph 
     (2)(B) by the same volume.''.

     SEC. 127. OPEN FUEL STANDARD.

       (a) Findings.--The Congress finds that--
       (1) the status of oil as a strategic commodity, which 
     derives from its domination of the transportation sector, 
     presents a clear and present danger to the United States;
       (2) in a prior era, when salt was a strategic commodity, 
     salt mines conferred national power and wars were fought over 
     the control of such mines;
       (3) technology, in the form of electricity and 
     refrigeration, decisively ended salt's monopoly of meat 
     preservation and greatly reduced its strategic importance;
       (4) fuel competition and consumer choice would similarly 
     serve to end oil's monopoly in the transportation sector and 
     strip oil of its strategic status;
       (5) the current closed fuel market has allowed a cartel of 
     petroleum exporting countries to inflate fuel prices, 
     effectively imposing a harmful tax on the economy of the 
     United States;
       (6) much of the inflated petroleum revenues the oil cartel 
     earns at the expense of the people of the United States are 
     used for purposes antithetical to the interests of the United 
     States and its allies;
       (7) alcohol fuels, including ethanol and methanol, could 
     potentially provide significant supplies of additional fuels 
     that could be produced in the United States and in many other 
     countries in the Western Hemisphere that are friendly to the 
     United States;
       (8) alcohol fuels can only play a major role in securing 
     the energy independence of the United States if a substantial 
     portion of vehicles in the United States are capable of 
     operating on such fuels;
       (9) it is not in the best interest of United States 
     consumers or the United States Government to be constrained 
     to depend solely upon petroleum resources for vehicle fuels 
     if alcohol fuels are potentially available;
       (10) existing technology, in the form of flexible fuel 
     vehicles, allows internal combustion engine cars and trucks 
     to be produced at little or no additional cost, which are 
     capable of operating on conventional gasoline, alcohol fuels, 
     or any combination of such fuels, as availability or cost 
     advantage dictates, providing a platform on which fuels can 
     compete;
       (11) the necessary distribution system for such alcohol 
     fuels will not be developed in the United States until a 
     substantial fraction of the vehicles in the United States are 
     capable of operating on such fuels;
       (12) the establishment of such a vehicle fleet and 
     distribution system would provide a large market that would 
     mobilize private resources to substantially advance the 
     technology and expand the production of alcohol fuels in the 
     United States and abroad;
       (13) the United States has an urgent national security 
     interest to develop alcohol fuels technology, production, and 
     distribution systems as rapidly as possible;
       (14) new cars sold in the United States that are equipped 
     with an internal combustion engine should allow for fuel 
     competition by being flexible fuel vehicles, and new diesel 
     cars should be capable of operating on biodiesel; and
       (15) such an open fuel standard would help to protect the 
     United States economy from high and volatile oil prices and 
     from the threats caused by global instability, terrorism, and 
     natural disaster.
       (b) Open Fuel Standard for Transportation.--(1) Chapter 329 
     of title 49, United States Code, is amended by adding at the 
     end the following:

     ``Sec. 32920. Open fuel standard for transportation

       ``(a) Definitions.--In this section:
       ``(1) E85.--The term `E85' means a fuel mixture containing 
     85 percent ethanol and 15 percent gasoline by volume.
       ``(2) Flexible fuel automobile.--The term `flexible fuel 
     automobile' means an automobile that has been warranted by 
     its manufacturer to operate on gasoline, E85, and M85.
       ``(3) Fuel choice-enabling automobile.--The term `fuel 
     choice-enabling automobile' means--
       ``(A) a flexible fuel automobile; or
       ``(B) an automobile that has been warranted by its 
     manufacturer to operate on biodiesel.
       ``(4) Light-duty automobile.--The term `light-duty 
     automobile' means--
       ``(A) a passenger automobile; or
       ``(B) a non-passenger automobile.
       ``(5) Light-duty automobile manufacturer's annual covered 
     inventory.--The term `light-duty automobile manufacturer's 
     annual covered inventory' means the number of light-duty 
     automobiles powered by an internal combustion engine that a 
     manufacturer, during a given calendar year, manufactures in 
     the United States or imports from outside of the United 
     States for sale in the United States.
       ``(6) M85.--The term `M85' means a fuel mixture containing 
     85 percent methanol and 15 percent gasoline by volume.
       ``(b) Open Fuel Standard for Transportation.--
       ``(1) In general.--The Secretary may promulgate regulations 
     to require each light-duty automobile manufacturer's annual 
     covered inventory to be comprised of a minimum percentage of 
     fuel-choice enabling automobiles, with sufficient lead time, 
     if the Secretary, in coordination with the Secretary of 
     Energy and the Administrator of the Environmental Protection 
     Agency, determines such requirement is a cost-effective way 
     to achieve the Nation's energy independence and environmental 
     objectives. The cost-effective determination shall consider 
     the future availability of both alternative fuel supply and 
     infrastructure to deliver the alternative fuel to the fuel-
     choice enabling vehicles.
       ``(2) Temporary exemption from requirements.--

[[Page 16530]]

       ``(A) Application.--A manufacturer may request an exemption 
     from the requirement described in paragraph (1) by submitting 
     an application to the Secretary, at such time, in such 
     manner, and containing such information as the Secretary may 
     require by regulation. Each such application shall specify 
     the models, lines, and types of automobiles affected.
       ``(B) Evaluation.--After evaluating an application received 
     from a manufacturer, the Secretary may at any time, under 
     such terms and conditions, and to such extent as the 
     Secretary considers appropriate, temporarily exempt, or renew 
     the exemption of, a light-duty automobile from the 
     requirement described in paragraph (1) if the Secretary 
     determines that unavoidable events not under the control of 
     the manufacturer prevent the manufacturer of such automobile 
     from meeting its required production volume of fuel choice-
     enabling automobiles, including--
       ``(i) a disruption in the supply of any component required 
     for compliance with the regulations;
       ``(ii) a disruption in the use and installation by the 
     manufacturer of such component; or
       ``(iii) application to plug-in electric drive vehicles 
     causing such vehicles to fail to meet State air quality 
     requirements.
       ``(C) Consolidation.--The Secretary may consolidate 
     applications received from multiple manufacturers under 
     subparagraph (A) if they are of a similar nature.
       ``(D) Conditions.--Any exemption granted under subparagraph 
     (B) shall be conditioned upon the manufacturer's commitment 
     to recall the exempted automobiles for installation of the 
     omitted components within a reasonable time proposed by the 
     manufacturer and approved by the Secretary after such 
     components become available in sufficient quantities to 
     satisfy both anticipated production and recall volume 
     requirements.
       ``(E) Notice.--The Secretary shall publish in the Federal 
     Register--
       ``(i) notice of each application received from a 
     manufacturer;
       ``(ii) notice of each decision to grant or deny a temporary 
     exemption; and
       ``(iii) the reasons for granting or denying such 
     exemptions.''.
       (2) The table of contents in chapter 329 of such title is 
     amended by adding at the end the following:

``32920. Open fuel standard for transportation.''.

     SEC. 128. DIESEL EMISSIONS REDUCTION.

       Subtitle G of title VII of the Energy Policy Act of 2005 
     (42 U.S.C. 16131 et seq.) is amended--
       (1) in the matter preceding clause (i) in section 
     791(3)(B), by inserting ``in any State'' after ``nonprofit 
     organization or institution'';
       (2) in section 791(9), by striking ``The term `State' 
     includes the District of Columbia.'' and inserting ``The term 
     `State' includes the District of Columbia, American Samoa, 
     Guam, the Commonwealth of the Northern Mariana Islands, 
     Puerto Rico, and the Virgin Islands.'':
       (3) in section 793(c)--
       (A) in paragraph (2)(A), by striking ``51 States'' and 
     inserting ``56 States'';
       (B) in paragraph (2)(A), by striking ``1.96 percent'' and 
     inserting ``1.785 percent'';
       (C) in paragraph (2)(B), by striking ``51 States'' and 
     inserting ``56 States''; and
       (D) in paragraph (2)(B), by amending clause (ii) to read as 
     follows:
       ``(ii) the amount of funds remaining after each State 
     described in paragraph (1) receives the 1.785-percent 
     allocation under this paragraph.''; and
       (4) in section 797, by striking ``2011'' and inserting 
     ``2016''.

     SEC. 129. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE 
                   FUEL PIPELINES.

       (a) Definitions.--Section 1701 of the Energy Policy Act of 
     2005 (42 U.S.C. 16511) is amended by adding at the end the 
     following:
       ``(6) Renewable fuel.--The term `renewable fuel' has the 
     meaning given the term in section 211(o)(1) of the Clean Air 
     Act (42 U.S.C. 7545(o)(1)), except that the term shall 
     include all ethanol and biodiesel.
       ``(7) Renewable fuel pipeline.--The term `renewable fuel 
     pipeline' means a common carrier pipeline for transporting 
     renewable fuel.''.
       (b) Renewable Fuel Pipeline Eligibility.--Section 1703(b) 
     of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended 
     by adding at the end the following:
       ``(11) Renewable fuel pipelines.''.

     SEC. 130. FLEET VEHICLES.

       Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 
     13258) is amended as follows:
       (1) By adding the following new paragraph at the end of 
     subsection (a):
       ``(6) Repowered or converted alternative fueled vehicles.--
     As used in this paragraph, the term `repowered or converted 
     alternative fueled vehicle' includes light-, medium- or 
     heavy-duty motor vehicles that have been modified with an EPA 
     or CARB compliant engine or vehicle or aftermarket system so 
     that the vehicle or engine is capable of operating on an 
     alternative fuel.''.
       (2) By adding the following new paragraph at the end of 
     subsection (b):
       ``(3) Repowered or converted vehicles. Not later than 
     January 1, 2010, the Secretary shall allocate credits to 
     fleets that repower or convert an existing vehicle so that it 
     is capable of operating on an alternative fuel. In the case 
     of any medium- or heavy-duty vehicle that is repowered or 
     converted so that it is capable of operating on an 
     alternative fuel, the Secretary shall allocate additional 
     credits for such vehicles if he determines that such vehicles 
     displace more petroleum than light duty alternative fueled 
     vehicles. Such rules shall also include a requirement that 
     such vehicles remain in the fleet for a period of no less 
     than 2 years in order to continue to qualify for credit. The 
     Secretary also shall extend the flexibility afforded in this 
     paragraph to Federal fleets subject to the purchase 
     provisions contained in section 303 of this Act.''.

     SEC. 130A. REPORT ON NATURAL GAS VEHICLE EMISSIONS 
                   REDUCTIONS.

       Within 360 days after the date of enactment of this Act, 
     the Administrator, in consultation with the Secretaries of 
     Energy and Transportation, and the Administrator of the 
     General Services Administration, and after an examination of 
     available scientific studies or analysis, shall submit to the 
     Congress a report on--
       (1) the contribution that light and heavy duty natural gas 
     vehicles, by category and State, have made during the last 
     decade to the reduction of greenhouse gases and criteria 
     pollutants under the Clean Air Act, and the reduced 
     consumption of petroleum-based fuels;
       (2) the contribution that light and heavy duty natural gas 
     vehicles are expected to make from 2010 to 2020 in reducing 
     greenhouse gas and criteria pollutants under the Clean Air 
     Act based, among other things, on additional Federal 
     incentives for the manufacture and deployment of natural gas 
     vehicles provided in this Act, and other Federal legislation; 
     and
       (3) additional Federal measures, including legislation, 
     that could, if implemented, maximize the potential for 
     natural gas used in both stationary and mobile sources to 
     contribute to the reduction of greenhouse gases and criteria 
     pollutants under the Clean Air Act.

     Subtitle D--State Energy and Environment Development Accounts

     SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS.

       (a) Definitions.--In this section:
       (1) SEED account.--The term ``SEED Account'' means a State 
     Energy and Environment Development Account established 
     pursuant to this section.
       (2) State energy office.--The term ``State Energy Office'' 
     means a State entity eligible for grants under part D of 
     title III of the Energy Policy and Conservation Act (42 
     U.S.C. 6321 et seq.).
       (b) Establishment of Program.--The Administrator shall 
     establish a program under which a State, through its State 
     Energy Office or other State agency designated by the State, 
     may operate a State Energy and Environment Development 
     Account.
       (c) Purpose.--The purpose of each SEED Account is to serve 
     as a common State-level repository for managing and 
     accounting for emission allowances provided to States 
     designated for renewable energy and energy efficiency 
     purposes.
       (d) Regulations.--Not later than one year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations to carry out this section, including 
     regulations--
       (1) to ensure that each State operates its SEED Account and 
     any subaccounts thereof efficiently and in accordance with 
     this Act and applicable State and Federal laws;
       (2) to prevent waste, fraud, and abuse;
       (3) to indicate the emission allowances that may be 
     deposited in a State's SEED Account pending distribution or 
     use;
       (4) to indicate the programs and objectives authorized by 
     Federal law for which emission allowances in a SEED Account 
     may be distributed or used;
       (5) to identify the forms of financial assistance and 
     incentives that States may provide through distribution or 
     use of SEED Accounts; and
       (6) to prescribe the form and content of reports that the 
     States are required to submit under this section on the use 
     of SEED Accounts.
       (e) Operation.--
       (1) Deposits.--
       (A) In general.--In the allowance tracking system 
     established pursuant to section 724(d) of the Clean Air Act, 
     the Administrator shall establish a SEED Account for each 
     State and place in it the allowances allocated pursuant to 
     section 782(g) of the Clean Air Act to be distributed to 
     States pursuant to sections 132 and 201 of this Act.
       (B) Financial account.--A State may create a financial 
     account associated with its SEED Account to deposit, retain, 
     and manage any proceeds of any sale of any allowance provided 
     pursuant to this Act pending expenditure or disbursement of 
     those proceeds for purposes permitted under this section. The 
     funds in such an account shall not be commingled with other 
     funds not derived from the sale of allowances provided to the 
     State; however, loans made by the State from such funds 
     pursuant to paragraph (2)(C)(i) may be repaid into such a 
     financial account, including any interest charged.

[[Page 16531]]

       (2) Withdrawals.--
       (A) In general.--All allowances distributed pursuant to 
     sections 132 and 201, including the proceeds of any sale of 
     such allowances, shall support renewable energy and energy 
     efficiency programs authorized or approved by the Federal 
     Government.
       (B) Dedicated allowances.--Allowances distributed pursuant 
     to sections 132 and 201 that are required by law to be used 
     for specific purposes for a specified period shall be used 
     according to those requirements during that period.
       (C) Undedicated allowances.--To the extent that allowances 
     distributed pursuant to sections 132 and 201 are not required 
     by law to be used for specific purposes for a specified 
     period as described in subparagraph (B), such allowances or 
     the proceeds of their sale may be used for any of the 
     following purposes:
       (i) Loans.--Loans of allowances, or the proceeds from the 
     sale of allowances, may be provided, interest on commercial 
     loans may be subsidized at an interest rate as low as zero, 
     and other credit support may be provided to support programs 
     authorized to use SEED Account allowance value or any other 
     renewable energy or energy efficiency purpose authorized or 
     approved by the Federal Government.
       (ii) Grants.--Grants of allowances or the proceeds of their 
     sale may be provided to support programs authorized to use 
     SEED Account allowance value or any other renewable energy or 
     energy efficiency purpose authorized or approved by the 
     Federal Government.
       (iii) Other forms of support.--Allowances or the proceeds 
     of the sale of allowances may be provided for other forms of 
     support for programs authorized to use SEED Account allowance 
     value or any other renewable energy or energy efficiency 
     purpose authorized or approved by the Federal Government.
       (iv) Administrative costs.--Except to the extent provided 
     in Federal law authorizing or allocating allowances deposited 
     in a SEED Account, not more than 5 percent of the allowance 
     value in a SEED Account in any year may be used to cover 
     administrative expenses of the SEED Account.
       (D) Subaccounts.--A State may request that the 
     Administrator establish accounts for local governments that 
     request such subaccounts to hold allowances distributed to 
     local governments for renewable energy or energy efficiency 
     programs authorized or approved by the Federal Government.
       (E) Intended use plans.--
       (i) In general.--After providing for public review and 
     comment, each State administering a SEED Account shall 
     annually prepare a plan that identifies the intended uses of 
     the allowances or proceeds from the sale of allowances in its 
     SEED Account.
       (ii) Contents.--An intended use plan shall include--

       (I) a list of the projects or programs for which 
     withdrawals from the SEED Account are intended in the next 
     fiscal year that begins after the date of the plan, including 
     a description of each project;
       (II) the relationship of each of the projects or programs 
     to an identified Federal purpose authorized by this Act, or 
     any other Federal statute;
       (III) the expected terms of use of allowance value to 
     provide assistance;
       (IV) the criteria and methods established for the 
     distribution of allowances or allowance value;
       (V) a description of the equivalent financial value and 
     status of the SEED Account; and
       (VI) a statement of the mid-term and long-term goals of the 
     State for use of its SEED Account.

       (3) Accountability and transparency.--
       (A) Controls and procedures.--Any State that has a SEED 
     Account shall establish fiscal controls and recordkeeping and 
     accounting procedures for the SEED Account sufficient to 
     ensure proper accounting during appropriate accounting 
     periods for distributions into the SEED Account, transfers 
     from the SEED Account, and SEED Account balances, including 
     any related financial accounts. Such controls and procedures 
     shall conform to generally accepted government accounting 
     principles. Any State that has a SEED Account shall retain 
     records for a period of at least 5 years.
       (B) Audits.--Any State that has a SEED Account shall have 
     an annual audit conducted of the SEED Account by an 
     independent public accountant in accordance with generally 
     accepted auditing standards, and shall transmit the results 
     of that audit to the Administrator.
       (C) State report.--Each State administering a SEED Account 
     shall make publicly available and submit to the Administrator 
     a report every 2 years on its activities related to its SEED 
     Account.
       (D) Public information.--Any--
       (i) controls and procedures established under subparagraph 
     (A); and
       (ii) information obtained through audits conducted under 
     subparagraph (B), except to the extent that it would be 
     protected from disclosure, if it were information held by the 
     Federal Government, under section 552(b) of title 5, United 
     States Code,
     shall be made publicly available.
       (E) Other protections.--The Administrator shall require 
     such additional procedures and protections as are necessary 
     to ensure that any State that has a SEED Account will operate 
     the SEED Account in an accountable and transparent manner.
       (f) Requirements for Eligibility.--A State's eligibility to 
     receive allowances in its SEED Account shall depend on that 
     State's compliance with the requirements of this Act (and the 
     amendments made by this Act).
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator such sums as may be 
     necessary for SEED Account operations.

     SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND ENERGY 
                   EFFICIENCY PROGRAMS.

       (a) Definitions.--For purposes of this section:
       (1) Allowance.--The term ``allowance'' means an emission 
     allowance established under section 721 of the Clean Air Act 
     (as added by section 311 of this Act).
       (2) Cost-effective.--The term ``cost-effective'', with 
     respect to an energy efficiency program, means that the 
     program meets the Total Resource Cost Test, which requires 
     that the net present value of economic benefits over the life 
     of the program or measure, including avoided supply and 
     delivery costs and deferred or avoided investments, is 
     greater than the net present value of the economic costs over 
     the life of the program, including program costs and 
     incremental costs borne by the energy consumer.
       (3) Renewable energy resource.--The term ``renewable energy 
     resource'' shall have the meaning given that term in section 
     610 of the Public Utility Regulatory Policies Act of 1978 (as 
     added by section 101 of this Act).
       (4) Vintage year.--The term ``vintage year'' shall the 
     meaning given that term in section 700 of the Clean Air Act 
     (as added by section 311 of this Act).
       (b) Distribution Among States.--Not later than September 30 
     of each calendar year from 2011 through 2049, the 
     Administrator shall, in accordance with this section, 
     distribute allowances allocated pursuant to section 782(g)(1) 
     of the Clean Air Act (as added by section 311 of this Act) 
     for the following vintage year. The Administrator shall 
     distribute 0.5 percent of such allowances pursuant to section 
     133 of this Act. The Administrator shall distribute the 
     remaining allowances to States for renewable energy and 
     energy efficiency programs to be deposited in and 
     administered through the State Energy and Environment 
     Development (SEED) Accounts established pursuant to section 
     131. The Administrator shall distribute allowances among the 
     States under this section each year in accordance with the 
     following formula:
       (1) One third of the allowances shall be divided equally 
     among the States.
       (2) One third of the allowances shall be distributed 
     ratably among the States based on the population of each 
     State, as contained in the most recent reliable census data 
     available from the Bureau of the Census, Department of 
     Commerce, for all States at the time the Administrator 
     calculates the formula for distribution.
       (3) One third of the allowances shall be distributed 
     ratably among the States on the basis of the energy 
     consumption of each State as contained in the most recent 
     State Energy Data Report available from the Energy 
     Information Administration (or such alternative reliable 
     source as the Administrator may designate).
       (c) Uses.--The allowances distributed to each State 
     pursuant to this section shall be used exclusively in 
     accordance with the following requirements:
       (1) Not less than 12.5 percent shall be distributed by the 
     State to units of local government within such State to be 
     used exclusively to support the energy efficiency and 
     renewable energy purposes listed in paragraphs (2) and (3).
       (2) Not less than 20 percent shall be used exclusively for 
     the following energy efficiency purposes, provided that not 
     less than 1 percent shall be used for the purpose described 
     in subparagraph (D) and not less than 5.5 percent shall be 
     used for the purpose described in subparagraph (E):
       (A) Implementation and enforcement of building codes 
     adopted in compliance with section 201.
       (B) Implementation of the energy efficient manufactured 
     homes program established pursuant to section 203.
       (C) Implementation of the building energy performance 
     labeling program established pursuant to section 204.
       (D) Low-income community energy efficiency programs that 
     are consistent with the grant program established under 
     section 264 of this Act.
       (E) Implementation of the Retrofit for Energy and 
     Environmental Performance (REEP) program established pursuant 
     to section 202.
       (3) Not less than 20 percent shall be used exclusively for 
     capital grants, tax credits, production incentives, loans, 
     loan guarantees, forgivable loans, direct provision of 
     allowances, and interest rate buy-downs for--
       (A) re-equipping, expanding, or establishing a 
     manufacturing facility that receives certification from the 
     Secretary of Energy pursuant to section 1302 of the American 
     Recovery and Reinvestment Act of 2009 for the production of--

[[Page 16532]]

       (i) property designed to be used to produce energy from 
     renewable energy sources; and
       (ii) electricity storage systems;
       (B) deployment of technologies to generate electricity from 
     renewable energy sources; and
       (C) deployment of facilities or equipment, such as solar 
     panels, to generate electricity or thermal energy from 
     renewable energy resources in and on buildings in an urban 
     environment.
       (4) The remaining 47.5 percent shall be used exclusively 
     for any of the following purposes:
       (A) Energy efficiency purposes described in paragraph (2).
       (B) Renewable energy purposes described in paragraph (3)(B) 
     and (C).
       (C) Cost-effective energy efficiency programs for end-use 
     consumers of electricity, natural gas, home heating oil, or 
     propane, including, where appropriate, programs or mechanisms 
     administered by local governments and entities other than the 
     State.
       (D) Enabling the development of a Smart Grid (as described 
     in section 1301 of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17381)) for State, local government, and 
     other public buildings and facilities, including integration 
     of renewable energy resources and distributed generation, 
     demand response, demand side management, and systems 
     analysis.
       (E) Providing the non-Federal share of support for surface 
     transportation capital projects under--
       (i) sections 5307, 5308, 5309, 5310, 5311 and 5319 of title 
     49, United States Code; and
       (ii) sections 142, 146, and 149 of title 23, United States 
     Code,
     provided that not more than 10 percent of allowances 
     distributed to each State pursuant to this section shall be 
     used for such purpose.
       (5) For any allowances used for the purpose described in 
     paragraph (4)(C), the State shall--
       (A) prioritize expansion of existing energy efficiency 
     programs approved and overseen by the State or the 
     appropriate State regulatory authority; and
       (B) demonstrate that such allowances have been used to 
     supplement, and not to supplant, existing and otherwise 
     available State, local, and ratepayer funding for such 
     purpose.
       (d) Reporting.--Each State receiving allowances under this 
     section shall include in its biennial reports required under 
     section 131, in accordance with such requirements as the 
     Administrator may prescribe
       (1) a list of entities receiving allowances or allowance 
     value under this section, including entities receiving such 
     allowances or allowance value from units of local government 
     pursuant to subsection (c)(1);
       (2) the amount and nature of allowances or allowance value 
     received by each such recipient;
       (3) the specific purposes for which such allowances or 
     allowance value was conveyed to each such recipient;
       (4) documentation of the amount of energy savings, emission 
     reductions, renewable energy deployment, and new or retooled 
     manufacturing capacity resulting from the use of such 
     allowances or allowance value; and
       (5) for any energy efficiency program supported under 
     subsection (c)(4)(C)--
       (A) an assessment demonstrating the cost-effectiveness of 
     such program; and
       (B) a demonstration that the requirements set forth in 
     subsection (c)(5) have been satisfied.
       (e) Enforcement.--If the Administrator determines that a 
     State is not in compliance with this section, the 
     Administrator may withhold up to twice the number of 
     allowances that the State failed to use in accordance with 
     the requirements of this section, that such State would 
     otherwise be eligible to receive under this section in later 
     years. Allowances withheld pursuant to this subsection shall 
     be distributed among the remaining States in accordance with 
     the requirements of subsection (b).

     SEC. 133. SUPPORT OF INDIAN RENEWABLE ENERGY AND ENERGY 
                   EFFICIENCY PROGRAMS.

       (a) Definitions.--For purposes of this section:
       (1) Allowance; cost-effective; renewable energy resource.--
     The terms ``allowance'', ``cost-effective'', and ``renewable 
     energy resource'' have the meaning given those terms in 
     section 132 of this Act.
       (2) 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).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (b) Establishment.--Not later than 18 months after the date 
     of enactment of this Act, the Secretary shall, in 
     consultation with the Administrator and the Secretary of the 
     Interior, promulgate regulations establishing a program to 
     distribute allowances to Indian tribes on a competitive basis 
     for the following purposes:
       (1) Energy efficiency.--Cost-effective energy efficiency 
     programs for end-use consumers of electricity, natural gas, 
     home heating oil, or propane.
       (2) Renewable energy.--Deployment of technologies to 
     generate electricity from renewable energy resources.
       (c) Requirements.--The regulations promulgated pursuant to 
     subsection (b) shall prescribe design elements and 
     requirements of the program established under this section, 
     including--
       (1) objective criteria for evaluating proposals submitted 
     by Indian tribes, and for selecting projects and programs to 
     receive support, under this section;
       (2) reporting requirements for Indian tribes that receive 
     allowances under this section; and
       (3) other appropriate elements and requirements.
       (d) Distribution.--The Administrator shall, at the 
     direction of the Secretary, distribute to Indian tribes 
     allowances that are set aside, pursuant to section 132, for 
     use under this section.

                   Subtitle E--Smart Grid Advancement

     SEC. 141. DEFINITIONS.

       For purposes of this subtitle:
       (1) The term ``applicable baseline'' means the average of 
     the highest three annual peak demands a load-serving entity 
     has experienced during the 5 years immediately prior to the 
     date of enactment of this Act.
       (2) The term ``Commission'' means Federal Energy Regulatory 
     Commission.
       (3) The term ``load-serving entity'' means an entity that 
     provides electricity directly to retail consumers with the 
     responsibility to assure power quality and reliability, 
     including such entities that are investor-owned, publicly 
     owned, owned by rural electric cooperatives, or other 
     entities.
       (4) The term ``peak demand'' means the highest point of 
     electricity demand, net of any distributed electricity 
     generation or storage from sources on the load-serving 
     entity's customers' premises, during any hour on the system 
     of a load serving entity during a calendar year, expressed in 
     Megawatts (MW), or more than one such high point as a 
     function of seasonal demand changes.
       (5) The term ``peak demand reduction'' means the reduction 
     in annual peak demand as compared to a previous baseline year 
     or period, expressed in Megawatts (MW), whether accomplished 
     by--
       (A) diminishing the end-use requirements for electricity;
       (B) use of locally stored energy or generated electricity 
     to meet those requirements from distributed resources on the 
     load-serving entity's customers' premises and without use of 
     high-voltage transmission; or
       (C) energy savings from efficient operation of the 
     distribution grid resulting from the use of a Smart Grid.
       (6) The term ``peak demand reduction plan'' means a plan 
     developed by or for a load-serving entity that it will 
     implement to meet its peak demand reduction goals.
       (7) The term ``peak period'' means the time period on the 
     system of a load-serving entity relative to peak demand that 
     may warrant special measures or electricity resources to 
     maintain system reliability while meeting peak demand.
       (8) The term ``Secretary'' means the Secretary of Energy.
       (9) The term ``Smart Grid'' has the meaning provided by 
     section 1301 of the Energy Independence and Security Act of 
     2007 (15 U.S.C. 17381).

     SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN 
                   PRODUCTS.

       (a) Assessment.--Within one year after the date of 
     enactment of this Act, the Secretary and the Administrator 
     shall each assess the potential for cost-effective 
     integration of Smart Grid technologies and capabilities in 
     all products that are reviewed by the Department of Energy 
     and the Environmental Protection Agency, respectively, for 
     potential designation as Energy Star products.
       (b) Analysis.--(1) Within 2 years after the date of 
     enactment of this Act, the Secretary and the Administrator 
     shall each prepare an analysis of the potential energy 
     savings, greenhouse gas emission reductions, and electricity 
     cost savings that could accrue for each of the products 
     identified by the assessment in subsection (a) in the 
     following optimal circumstances:
       (A) The products possessed Smart Grid capability and 
     interoperability that is tested and proven reliable.
       (B) The products were utilized in an electricity utility 
     service area which had Smart Grid capability and offered 
     customers rate or program incentives to use the products.
       (C) The utility's rates reflected national average costs, 
     including average peak and valley seasonal and daily 
     electricity costs.
       (D) Consumers using such products took full advantage of 
     such capability.
       (E) The utility avoided incremental investments and rate 
     increases related to such savings.
       (2) The analysis under paragraph (1) shall be considered 
     the ``best case'' Smart Grid analysis. On the basis of such 
     an analysis for each product, the Secretary and the 
     Administrator shall determine whether the installation of 
     Smart Grid capability for such a product would be cost 
     effective. For purposes of this paragraph, the term ``cost 
     effective'' means that the cumulative savings from using the 
     product under the best case Smart Grid circumstances for a 
     period of one-half of the product's expected useful life will 
     be greater than the incremental cost of the Smart Grid 
     features included in the product.

[[Page 16533]]

       (3) To the extent that including Smart Grid capability in 
     any products analyzed under paragraph (2) is found to be cost 
     effective in the best case, the Secretary and the 
     Administrator shall, not later than 3 years after the date of 
     enactment of this Act take each of the following actions:
       (A) Inform the manufacturer of such product of such finding 
     of cost effectiveness.
       (B) Assess the potential contributions the development and 
     use of products with Smart Grid technologies bring to 
     reducing peak demand and promoting grid stability.
       (C) Assess the potential national energy savings and 
     electricity cost savings that could be realized if Smart Grid 
     potential were installed in the relevant products reviewed by 
     the Energy Star program.
       (D) Assess and identify options for providing consumers 
     information on products with Smart Grid capabilities, 
     including the necessary conditions for cost-effective 
     savings.
       (E) Submit a report to Congress summarizing the results of 
     the assessment for each class of products, and presenting the 
     potential energy and greenhouse gas savings that could result 
     if Smart Grid capability were installed and utilized on such 
     products.

     SEC. 143. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE 
                   ENERGY GUIDE LABELS.

       Section 324(a)(2) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6294(a)(2)) is amended by adding the following at 
     the end:
       ``(J)(i) Not later than 1 year after the date of enactment 
     of this subparagraph, the Federal Trade Commission shall 
     initiate a rulemaking to consider making a special note in a 
     prominent manner on any ENERGY GUIDE label for any product 
     actually including Smart Grid capability that--
       ``(I) Smart Grid capability is a feature of that product;
       ``(II) the use and value of that feature depended on the 
     Smart Grid capability of the utility system in which the 
     product was installed and the active utilization of that 
     feature by the customer; and
       ``(III) on a utility system with Smart Grid capability, the 
     use of the product's Smart Grid capability could reduce the 
     customer's cost of the product's annual operation by an 
     estimated dollar amount range representing the result of 
     incremental energy and electricity cost savings that would 
     result from the customer taking full advantage of such Smart 
     Grid capability.
       ``(ii) Not later than 3 years after the date of enactment 
     of this subparagraph, the Commission shall complete the 
     rulemaking initiated under clause (i).''.

     SEC. 144. SMART GRID PEAK DEMAND REDUCTION GOALS.

       (a) Goals.--Not later than one year after the date of 
     enactment of this section, each load-serving entity, or, at 
     the option of the State, each State with respect to load-
     serving entities that the State regulates, shall determine 
     and publish peak demand reduction goals for any load-serving 
     entities that have an applicable baseline in excess of 250 
     megawatts.
       (b) Baselines.--(1) The Commission, in consultation with 
     the Secretary and the Administrator, shall develop and 
     publish, after an opportunity for public comment, but not 
     later than 180 days after enactment of this section, a 
     methodology to provide for adjustments or normalization to a 
     load-serving entity's applicable baseline over time to 
     reflect changes in the number of customers served, weather 
     conditions, general economic conditions, and any other 
     appropriate factors external to peak demand management, as 
     determined by the Commission.
       (2) The Commission shall support load-serving entities 
     (including any load-serving entities with an applicable 
     baseline of less than 250 megawatts that volunteer to 
     participate in achieving the purposes of this section) in 
     determining their applicable baselines, and in developing 
     their peak demand reduction goals.
       (3) The Secretary, in consultation with the Commission, the 
     Administrator, and the North American Electric Reliability 
     Corporation, shall develop a system and rules for measurement 
     and verification of demand reductions.
       (c) Peak Demand Reduction Goals.--(1) Peak demand reduction 
     goals may be established for an individual load-serving 
     entity, or, at the determination of a State, tribal, or 
     regional entity, by that State, tribal, or regional entity 
     for a larger region that shares a common system peak demand 
     and for which peak demand reduction measures would offer 
     regional benefit.
       (2) A State or regional entity establishing peak demand 
     reduction goals shall cooperate, as necessary and 
     appropriate, with the Commission, the Secretary, State 
     regulatory commissions, State energy offices, the North 
     American Electric Reliability Corporation, and other relevant 
     authorities.
       (3) In determining the applicable peak demand reduction 
     goals--
       (A) States and other jurisdictional entities may utilize 
     the results of the 2009 National Demand Response Potential 
     Assessment, as authorized by section 571 of the National 
     Energy Conservation Policy Act (42 U.S.C. 8279); and
       (B) the relative economics of peak demand reduction and 
     generation required to meet peak demand shall be evaluated in 
     a neutral and objective manner.
       (4) The applicable peak demand reduction goals shall 
     provide that--
       (A) load-serving entities will reduce or mitigate peak 
     demand by a minimum percentage amount from the applicable 
     baseline to a lower peak demand during calendar year 2012;
       (B) load-serving entities will reduce or mitigate peak 
     demand by a minimum percentage greater amount from the 
     applicable baseline to a lower peak demand during calendar 
     year 2015; and
       (C) the minimum percentage reductions established as peak 
     demand reduction goals shall be the maximum reductions that 
     are realistically achievable with an aggressive effort to 
     deploy Smart Grid and peak demand reduction technologies and 
     methods, including but not limited to those listed in 
     subsection (d).
       (d) Plan.--Each load-serving entity shall prepare a peak 
     demand reduction plan that demonstrates its ability to meet 
     each applicable goal by any or a combination of the following 
     options:
       (1) Direct reduction in megawatts of peak demand through--
       (A) energy efficiency measures (including efficient 
     transmission wire technologies which significantly reduce 
     line loss compared to traditional wire technology) with 
     reliable and continued application during peak demand 
     periods; or
       (B) use of a Smart Grid.
       (2) Demonstration that an amount of megawatts equal to a 
     stated portion of the applicable goal is contractually 
     committed to be available for peak reduction through one or 
     more of the following:
       (A) Megawatts enrolled in demand response programs.
       (B) Megawatts subject to the ability of a load-serving 
     entity to call on demand response programs, smart appliances, 
     smart electricity or energy storage devices, distributed 
     generation resources on the entity's customers' premises, or 
     other measures directly capable of actively, controllably, 
     reliably, and dynamically reducing peak demand (``dynamic 
     peak management control'').
       (C) Megawatts available from distributed dynamic 
     electricity or energy storage under agreement with the owner 
     of that storage.
       (D) Megawatts committed from dispatchable distributed 
     generation demonstrated to be reliable under peak period 
     conditions and in compliance with air quality regulations.
       (E) Megawatts available from smart appliances and equipment 
     with Smart Grid capability available for direct control by 
     the utility through agreement with the customer owning the 
     appliances or equipment or with a third party pursuant to 
     such agreements.
       (F) Megawatts from a demonstrated and assured minimum of 
     distributed solar electric generation capacity in instances 
     where peak period and peak demand conditions are directly 
     related to solar radiation and accompanying heat.
       (3) If any of the methods listed in subparagraph (C), (D), 
     or (E) of paragraph (2) are relied upon to meet its peak 
     demand reduction goals, the load-serving entity must 
     demonstrate this capability by operating a test during the 
     applicable calendar year.
       (4) Nothing in this section shall require the publication 
     in peak demand reduction goals or in any peak demand 
     reduction plan of any information that is confidential for 
     competitive or other reasons or that identifies individual 
     customers.
       (e) Existing Authority and Requirements.--Nothing in this 
     section diminishes or supersedes any authority of a State or 
     political subdivision of a State to adopt or enforce any law 
     or regulation respecting peak demand management, demand 
     response, distributed energy storage, use of distributed 
     generation, or the regulation of load-serving entities. The 
     Commission, in consultation with States and Indian tribes 
     having such peak management, demand response and distributed 
     energy storage programs, shall to the maximum extent 
     practicable, facilitate coordination between the Federal 
     program and such State and tribal programs.
       (f) Relief.--The Commission may, for good cause, grant 
     relief to load-serving entities from the requirements of this 
     section.
       (g) Other Laws.--Except as provided in subsections (e) and 
     (f), no law or regulation shall relieve any person of any 
     requirement otherwise applicable under this section.
       (h) Compliance.--(1) The Commission shall within one year 
     after the date of enactment of this Act establish a public 
     website where the Commission will provide information and 
     data demonstrating compliance by States, Indian tribes 
     regional entities, and load-serving entities with this 
     section, including the success of load-serving entities in 
     meeting applicable peak demand reduction goals.
       (2) The Commission shall, by April 1 of each year beginning 
     in 2012, provide a report to Congress on compliance with this 
     section and success in meeting applicable peak demand 
     reduction goals and, as appropriate, shall make 
     recommendations as to how to increase peak demand reduction 
     efforts.
       (3) The Commission shall note in each such report any 
     State, political subdivision of a State, or load-serving 
     entity that has failed to comply with this section, or is not 
     a part

[[Page 16534]]

     of any region or group of load-serving entities serving a 
     region that has complied with this section.
       (4) The Commission shall have and exercise the authority to 
     take reasonable steps to modify the process of establishing 
     peak demand reduction goals and to accept adjustments to them 
     as appropriate when sought by load-serving entities.
       (i) Assistance and Funding.--
       (1) Assistance to states and tribes.--Any costs incurred by 
     States for activities undertaken pursuant to this section 
     shall be supported by the use of emission allowances 
     allocated to the States' SEED Accounts or to the tribes 
     pursuant to section 132 of this Act. To the extent that a 
     State provides allowances to local governments within the 
     State to implement this program, that shall be deemed a 
     distribution of such allowances to units of local government 
     pursuant to subsection (c)(1) of that section.
       (2) Funding.--There are authorized to be appropriated such 
     sums as may be necessary to the Commission, the Secretary, 
     and the Administrator to carry out the provisions of this 
     section.

     SEC. 145. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC 
                   INFORMATION PROGRAM TO INCLUDE SMART GRID 
                   INFORMATION.

       (a) In General.--Section 134 of the Energy Policy Act of 
     2005 (42 U.S.C. 15832) is amended as follows:
       (1) By amending the section heading to read as follows: 
     ``ENERGY EFFICIENCY AND SMART GRID PUBLIC INFORMATION 
     INITIATIVE''.
       (2) In paragraph (1) of subsection (a) by striking ``reduce 
     energy consumption during the 4-year period beginning on the 
     date of enactment of this Act'' and inserting ``increase 
     energy efficiency and to adopt Smart Grid technology and 
     practices''.
       (3) In paragraph (2) of subsection (a) by striking 
     ``benefits to consumers of reducing'' and inserting 
     ``economic and environmental benefits to consumers and the 
     United States of optimizing''.
       (4) In subsection (a) by inserting at the beginning of 
     paragraph (3) ``the effect of energy efficiency and Smart 
     Grid capability in reducing energy and electricity prices 
     throughout the economy, together with''.
       (5) In subsection (a)(4) by redesignating subparagraph (D) 
     as (E), by striking ``and'' at the end of subparagraph (C), 
     and by inserting after subparagraph (C) the following:
       ``(D) purchasing and utilizing equipment that includes 
     Smart Grid features and capability; and''.
       (6) In subsection (c), by striking ``Not later than July 1, 
     2009,'' and inserting, ``For each year when appropriations 
     pursuant to the authorization in this section exceed 
     $10,000,000,''.
       (7) In subsection (d) by striking ``2010'' and inserting 
     ``2020''.
       (8) In subsection (e) by striking ``2010'' and inserting 
     ``2020''.
       (b) Table of Contents.--The item relating to section 134 in 
     the table of contents for the Energy Policy Act of 2005 (42 
     U.S.C. 15801 and following) is amended to read as follows:

``Sec. 134. Energy efficiency and Smart Grid public information 
              initiative.''.

     SEC. 146. INCLUSION OF SMART GRID FEATURES IN APPLIANCE 
                   REBATE PROGRAM.

       (a) Amendments.--Section 124 of the Energy Policy Act of 
     2005 (42 U.S.C. 15821) is amended as follows:
       (1) By amending the section heading to read as follows: 
     ``ENERGY EFFICIENT AND SMART APPLIANCE REBATE PROGRAM.''.
       (2) By redesignating paragraphs (4) and (5) of subsection 
     (a) as paragraphs (5) and (6), respectively, and inserting 
     after paragraph (3) the following:
       ``(4) Smart appliance.--The term `smart appliance' means a 
     product that the Administrator of the Environmental 
     Protection Agency or the Secretary of Energy has determined 
     qualifies for such a designation in the Energy Star program 
     pursuant to section 142 of the American Clean Energy and 
     Security Act of 2009, or that the Secretary or the 
     Administrator has separately determined includes the relevant 
     Smart Grid capabilities listed in section 1301 of the Energy 
     Independence and Security Act of 2007 (15 U.S.C. 17381).''.
       (3) In subsection (b)(1) by inserting ``and smart'' after 
     ``efficient'' and by inserting after ``products'' the first 
     place it appears ``, including products designated as being 
     smart appliances''.
       (4) In subsection (b)(3), by inserting ``the administration 
     of'' after ``carry out''.
       (5) In subsection (d), by inserting ``the administration 
     of'' after ``carrying out'' and by inserting ``, and up to 
     100 percent of the value of the rebates provided pursuant to 
     this section'' before the period at the end.
       (6) In subsection (e)(3), by inserting ``, with separate 
     consideration as applicable if the product is also a smart 
     appliance,'' after ``Energy Star product'' the first place it 
     appears and by inserting ``or smart appliance'' before the 
     period at the end.
       (7) In subsection (f), by striking ``$50,000,000'' through 
     the period at the end and inserting ``$100,000,000 for each 
     fiscal year from 2010 through 2015.''.
       (b) Table of Contents.--The item relating to section 124 in 
     the table of contents for the Energy Policy Act of 2005 (42 
     U.S.C. 15801 and following) is amended to read as follows:

``Sec. 124. Energy efficient and smart appliance rebate program.''.

                   Subtitle F--Transmission Planning

     SEC. 151. TRANSMISSION PLANNING AND SITING.

       (a) In General.--Section 216 of the Federal Power Act (16 
     U.S.C. 824p) is amended as follows:
       (1) In subsection (b), in paragraph (5), by striking ``; 
     and'' and inserting a semicolon, in paragraph (6) by striking 
     the period and inserting ``; and'' and by adding the 
     following at the end thereof:
       ``(7) the facility is interstate in nature or is an 
     intrastate segment integral to a proposed interstate 
     facility;''.
       (2) In subsection (k), by inserting at the end the 
     following: ``Subsections (a), (b), (c), and (h) of this 
     section shall not apply in the Western interconnection.''.
       (3) In subsections (d) and (e), by striking ``subsection 
     (b)'' in each place and inserting ``subsection (b) or section 
     216B'', and by striking ``permit'' and inserting ``permit or 
     certificate'' in each place it appears.
       (b) New Sections.--The Federal Power Act (16 U.S.C. 824p) 
     is amended by inserting the following new sections after 
     section 216:

     ``SEC. 216A TRANSMISSION PLANNING.

       ``(a) Federal Policy for Transmission Planning.--
       ``(1) Objectives.--It is the policy of the United States 
     that regional electric grid planning should facilitate the 
     deployment of renewable and other zero-carbon and low-carbon 
     energy sources for generating electricity to reduce 
     greenhouse gas emissions while ensuring reliability, reducing 
     congestion, ensuring cyber-security, minimizing environmental 
     harm, and providing for cost-effective electricity services 
     throughout the United States, in addition to serving the 
     objectives stated in section 217(b)(4).
       ``(2) Options.--In addition to the policy under paragraph 
     (1), it is the policy of the United States that regional 
     electric grid planning to meet these objectives should result 
     from an open, inclusive and transparent process, taking into 
     account all significant demand-side and supply-side options, 
     including energy efficiency, distributed generation, 
     renewable energy and zero-carbon electricity generation 
     technologies, smart-grid technologies and practices, demand 
     response, electricity storage, voltage regulation 
     technologies, high capacity conductors with at least 25 
     percent greater efficiency than traditional ACSR (aluminum 
     stranded conductors steel reinforced) conductors, 
     superconductor technologies, underground transmission 
     technologies, and new conventional electric transmission 
     capacity and corridors.
       ``(b) Planning.--
       ``(1) Planning principles.--Not later than 1 year after the 
     date of enactment of this section, the Commission shall 
     adopt, after notice and opportunity for comment, national 
     electricity grid planning principles derived from the Federal 
     policy established under subsection (a) to be applied in 
     ongoing and future transmission planning that may implicate 
     interstate transmission of electricity.
       ``(2) Regional planning entities.--Not later than 3 months 
     after the date of adoption by the Commission of national 
     electricity grid planning principles pursuant to paragraph 
     (1), entities that conduct or may conduct transmission 
     planning pursuant to State, tribal, or Federal law or 
     regulation, including States, Indian tribes, entities 
     designated by States and Indian tribes, Federal Power 
     Marketing Administrations, transmission providers, operators 
     and owners, regional organizations, and electric utilities, 
     and that are willing to incorporate the national electricity 
     grid planning principles adopted by the Commission in their 
     electric grid planning, shall identify themselves and the 
     regions for which they propose to develop plans to the 
     Commission.
       ``(3) Coordination of regional planning entities.--The 
     Commission shall encourage regional planning entities 
     described under paragraph (2) to cooperate and coordinate 
     across regions and to harmonize regional electric grid 
     planning with planning in adjacent or overlapping 
     jurisdictions to the maximum extent feasible. The Commission 
     shall work with States, Indian tribes, Federal land 
     management agencies, State energy, environment, natural 
     resources, and land management agencies and commissions, 
     Federal power marketing administrations, electric utilities, 
     transmission providers, load-serving entities, transmission 
     operators, regional transmission organizations, independent 
     system operators, and other organizations to resolve any 
     conflict or competition among proposed planning entities in 
     order to build consensus and promote the Federal policy 
     established under subsection (a). The Commission shall seek 
     to ensure that planning that is consistent with the national 
     electricity grid planning principles adopted pursuant to 
     paragraph (1) is conducted in all regions of the United 
     States and the territories, but in a manner that, to the 
     extent feasible, avoids uncoordinated planning by more than 
     one planning entity for the same area.
       ``(4) Relation to existing planning policy.--In 
     implementing the Federal policy established under subsection 
     (a), the Commission shall

[[Page 16535]]

       ``(A) incorporate and coordinate with any ongoing planning 
     efforts undertaken pursuant to section 217 and Commission 
     Order No. 890;
       ``(B) coordinate with the Secretary of Energy in providing 
     to the regional planning entities an annual summary of 
     national energy policy priorities and goals;
       ``(C) coordinate with corridor designation and planning 
     functions carried out pursuant to section 216 by the 
     Secretary of Energy, who shall provide financial support from 
     available funds to support the purposes of this section; and
       ``(D) coordinate with the Secretaries of the Interior and 
     Agriculture and Indian tribes in carrying out the 
     Secretaries' or tribal governments' existing responsibilities 
     for the planning or siting of transmission facilities on 
     Federal or tribal lands, consistent with law, policy, and 
     regulations relating to the management of federal public 
     lands .
       ``(5) Assistance.--
       ``(A) In general.--The Commission shall provide support to 
     and may participate if invited to do so in the regional grid 
     planning processes conducted by regional planning entities. 
     The Secretary of Energy and the Commission may provide 
     planning resources and assistance as required or as requested 
     by regional planning entities, including system data, cost 
     information, system analysis, technical expertise, modeling 
     support, dispute resolution services, and other assistance to 
     regional planning entities, as appropriate.
       ``(B) Authorization.--There are authorized to be 
     appropriated such sums as may be necessary to carry out this 
     paragraph.
       ``(6) Conflict resolution.--In the event that regional grid 
     plans conflict, the Commission shall assist the regional 
     planning entities in resolving such conflicts in order to 
     achieve the objectives of the Federal policy established 
     under subsection (a).
       ``(7) Submission of plans.--The Commission shall require 
     regional planning entities to submit initial regional 
     electric grid plans to the Commission not later than 18 
     months after the date the Commission promulgates national 
     electricity grid planning principles pursuant to paragraph 
     (1), with updates to such plans not less than every 3 years 
     thereafter. The Commission shall review such plans for 
     consistency with the national grid planning principles and 
     may return a plan to one or more planning entities for 
     further consideration, along with the Commission's own 
     recommendations for resolution of any conflict or for 
     improvement.
       ``(8) Integration of plans.--Regional electric grid plans 
     should, in general, be developed from sub-regional 
     requirements and plans, including planning input reflecting 
     individual utility service areas. Regional plans may then in 
     turn be combined into larger regional plans, up to 
     interconnection-wide and national plans, as appropriate and 
     necessary as determined by the Commission. In no case shall a 
     multi-regional plan impose inclusion of a facility on a 
     region that has submitted a valid plan that, after efforts to 
     resolve the conflict, does not include such facility. To the 
     extent practicable, all plans submitted to the Commission 
     shall be public documents and available on the Commission's 
     Web site.
       ``(9) Multi-regional meetings.--As regional grid plans are 
     submitted to the Commission, the Commission may convene 
     multi-regional meetings to discuss regional grid plan 
     consistency and integration, including requirements for 
     multi-regional projects, and to resolve any conflicts that 
     emerge from such multi-regional projects. The Commission 
     shall provide its recommendations for eliminating any inter-
     regional conflicts.
       ``(10) Report to congress.--Not later than 3 years after 
     the date of enactment of this section and each 3 years 
     thereafter, the Commission shall provide a report to Congress 
     containing the results of the regional grid planning process, 
     including summaries of the adopted regional plans and the 
     extent to which the Federal policy objectives in subsection 
     (a) have been successfully achieved. The Commission shall 
     provide an electronic version of its report on its website 
     with links to all regional and sub-regional plans taken into 
     account. The Commission shall note and provide its 
     recommended resolution for any conflicts not resolved during 
     the planning process. The Commission shall make any 
     recommendations to Congress on the appropriate Federal role 
     or support required to address the needs of the electric 
     grid, including recommendations for addressing any needs that 
     are beyond the reach of existing State, tribal, and Federal 
     authority.

     ``SEC. 216B. SITING AND CONSTRUCTION IN THE WESTERN 
                   INTERCONNECTION.

       ``(a) Applicability.--This section applies only to States 
     located in the Western Interconnection and does not apply to 
     States located in the Eastern Interconnection, to the States 
     of Alaska or Hawaii, or to ERCOT.
       ``(b) Certificate of Public Convenience and Necessity.--The 
     Commission may, after notice and opportunity for hearing, 
     issue a certificate of public convenience and necessity for 
     the construction or modification of a transmission facility 
     if the Commission finds that--
       ``(1) the facility was identified and included in one or 
     more relevant and final regional or interconnection-wide 
     electric grid plans submitted to the Commission pursuant to 
     subsection (b) of 216A;
       ``(2) any conflict among regional electric grid plans 
     concerning the need for the facility was resolved;
       ``(3) such relevant regional electric grid plans are 
     consistent with the national grid planning principles adopted 
     by the Commission pursuant to subsection (b);
       ``(4) the facility was identified as needed in significant 
     measure to meet demand for renewable energy in such plans;
       ``(5) the facility is a multistate facility;
       ``(6) the developer of such facility filed a complete 
     application seeking approval for the siting of the facility 
     with a state commission or other entity that has authority to 
     approve the siting of the facility;
       ``(7) a State commission or other entity that has authority 
     to approve the siting of the facility--
       ``(A) did not issue a decision on an application seeking 
     approval for the siting of the facility within 1 year after 
     the date the applicant submitted a completed application to 
     the State;
       ``(B) denied a complete application seeking approval for 
     the siting of the facility; or
       ``(C) authorized the siting of the facility subject to 
     conditions that unreasonably interfere with the development 
     of the facility; and
       ``(8) the siting of the facility can be accomplished in a 
     manner consistent with the Federal policy established in 
     subsection (a) of section 216A and the national grid planning 
     principles adopted by the Commission pursuant to subsection 
     (b) of section 216A.
       ``(c) State Recommendations on Resource Protection.--In 
     issuing a final certificate of public convenience and 
     necessity pursuant to subsection (b), the Commission shall--
       ``(1) consider any siting constraints and mitigation 
     measures based on habitat protection, health and safety 
     considerations, environmental considerations, or cultural 
     site protection identified by relevant State or local 
     authorities; and
       ``(2) incorporate those identified siting constraints or 
     mitigation measures, including recommendations related to 
     project routing, as conditions in the final certificate of 
     public convenience and necessity, or if the Commission 
     determines that a recommended siting constraint or mitigation 
     measure is infeasible, excessively costly, or inconsistent 
     with the Federal policy established in subsection (a) of 
     section 216A or the national grid planning principles adopted 
     by the Commission pursuant to subsection (b) of section 
     216A--
       ``(A) consult with State regulatory agencies to seek to 
     resolve the issue;
       ``(B) incorporate as conditions on the certificate such 
     recommended siting constraints or mitigation measures as are 
     determined to be appropriate by the Commission, based on 
     consultation by the Commission with State regulatory 
     agencies, the Federal policy established in subsection (a) of 
     section 216A and the national grid planning principles 
     adopted by the Commission pursuant to subsection (b)of 
     section 216A, and the record before the Commission; and
       ``(C) if, after consultation, the Commission does not adopt 
     in whole or in part a recommendation of an agency, publish a 
     finding that the adoption of the recommendation is 
     infeasible, not cost effective, or inconsistent with this 
     section or other applicable provisions of law.
       ``(d) Certificate Applications.--(1) An application for a 
     preliminary or final certificate of public convenience and 
     necessity under this subsection shall be made in writing to 
     the Commission.
       ``(2) The Commission shall issue rules specifying--
       ``(A) the form of the application;
       ``(B) the information to be contained in the application; 
     and
       ``(C) the manner of service of notice of the application on 
     interested persons.
       ``(e) Coordination of Federal Authorizations for 
     Transmission Facilities.--
       ``(1) In this subsection, the term `Federal authorization' 
     shall have the same meaning and include the same actions as 
     in section 216(h).
       ``(2) The Federal Energy Regulatory Commission shall act as 
     the lead agency for purposes of coordinating all applicable 
     Federal authorizations and related environmental reviews of 
     the facility, provided, however, that to the extent the 
     facility is proposed to be sited on Federal lands, the 
     Department of the Interior will assume such lead-agency 
     duties as agreed between the Commission and the Department of 
     Interior.
       ``(3) To the maximum extent practicable under applicable 
     Federal law, the Commission, and to the extent agreed, the 
     Secretary of Interior, shall coordinate the Federal 
     authorization and review process under this subsection with 
     any Indian tribes, multistate entities, and State agencies 
     that are responsible for conducting any separate permitting 
     and environmental reviews of the facility, to ensure timely 
     and efficient review and permit decisions.
       ``(4)(A) As head of the lead agency, the Chairman of the 
     Commission, in consultation with the Secretary of Interior 
     and with those entities referred to in paragraph (3) that are 
     willing to coordinate their own separate permitting and 
     environmental reviews

[[Page 16536]]

     with the Federal authorization and environmental reviews, 
     shall establish prompt and binding intermediate milestones 
     and ultimate deadlines for the review of, and Federal 
     authorization decisions relating to, the proposed facility.
       ``(B) The Chairman of the Commission, or the Secretary of 
     Interior, as agreed under paragraph (2), shall ensure that, 
     once an application has been submitted with such data as the 
     lead agency considers necessary, all permit decisions and 
     related environmental reviews under all applicable Federal 
     laws shall be completed--
       ``(i) within 1 year; or
       ``(ii) if a requirement of another provision of Federal law 
     does not permit compliance with clause (i), as soon 
     thereafter as is practicable.
       ``(C) The Commission shall provide an expeditious pre-
     application mechanism for prospective applicants to confer 
     with the agencies involved to have each such agency determine 
     and communicate to the prospective applicant not later than 
     60 days after the prospective applicant submits a request for 
     such information concerning--
       ``(i) the likelihood of approval for a potential facility; 
     and
       ``(ii) key issues of concern to the agencies and public.
       ``(5)(A) As lead agency head, the Chairman of the 
     Commission, in consultation with the affected agencies, shall 
     prepare a single environmental review document, which shall 
     be used as the basis for all decisions on the proposed 
     project under Federal law.
       ``(B) The Chairman of the Commission and the heads of other 
     agencies shall streamline the review and permitting of 
     transmission within corridors designated under section 503 of 
     the Federal Land Policy and Management Act (43 U.S.C. 1763) 
     by fully taking into account prior analyses and decisions 
     relating to the corridors.
       ``(C) The document shall include consideration by the 
     relevant agencies of any applicable criteria or other matters 
     as required under applicable law.
       ``(6)(A) If any agency has denied a Federal authorization 
     required for a transmission facility, or has failed to act by 
     the deadline established by the Commission pursuant to this 
     section for deciding whether to issue the authorization, the 
     applicant or any State in which the facility would be located 
     may file an appeal with the President, who shall, in 
     consultation with the affected agency, review the denial or 
     failure to take action on the pending application.
       ``(B) Based on the overall record and in consultation with 
     the affected agency, the President may--
       ``(i) issue the necessary authorization with any 
     appropriate conditions; or
       ``(ii) deny the application.
       ``(C) The President shall issue a decision not later than 
     90 days after the date of the filing of the appeal.
       ``(D) In making a decision under this paragraph, the 
     President shall comply with applicable requirements of 
     Federal law, including any requirements of--
       ``(i) the National Forest Management Act of 1976 (16 U.S.C. 
     472a et seq.);
       ``(ii) the Endangered Species Act of 1973 (16 U.S.C. 1531 
     et seq.);
       ``(iii) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(iv) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       ``(v) the Federal Land Policy and Management Act of 1976 
     (43 U.S.C. 1701 et seq.).
       ``(7)(A) Not later than 18 months after August 8, 2005, the 
     Commission or, as requested, the Secretary or Interior, shall 
     issue any regulations necessary to implement this subsection.
       ``(B)(i) Not later than 1 year after August 8, 2005, the 
     Commission, the Secretary of Interior, and the heads of all 
     Federal agencies with authority to issue Federal 
     authorizations shall enter into a memorandum of understanding 
     to ensure the timely and coordinated review and permitting of 
     electricity transmission facilities.
       ``(ii) Interested Indian tribes, multistate entities, and 
     State agencies may enter the memorandum of understanding.
       ``(C) The head of each Federal agency with authority to 
     issue a Federal authorization shall designate a senior 
     official responsible for, and dedicate sufficient other staff 
     and resources to ensure, full implementation of the 
     regulations and memorandum required under this paragraph.
       ``(8)(A) Each Federal land use authorization for an 
     electricity transmission facility shall be issued--
       ``(i) for a duration, as determined by the Secretary of 
     Interior, commensurate with the anticipated use of the 
     facility; and
       ``(ii) with appropriate authority to manage the right-of-
     way for reliability and environmental protection.
       ``(B) On the expiration of the authorization (including an 
     authorization issued before August 8, 2005), the 
     authorization shall be reviewed for renewal taking fully into 
     account reliance on such electricity infrastructure, 
     recognizing the importance of the authorization for public 
     health, safety, and economic welfare and as a legitimate use 
     of Federal land.
       ``(9) In exercising the responsibilities under this 
     section, the Commission shall consult regularly with--
       ``(A) electric reliability organizations (including related 
     regional entities) approved by the Commission; and
       ``(B) Transmission Organizations approved by the 
     Commission.''.

     SEC. 152. NET METERING FOR FEDERAL AGENCIES.

       (a) Standard.--Subsection (b) of section 113 of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623) is 
     amended by adding the following new paragraph at the end 
     thereof:
       ``(6) Net metering for federal agencies.--Each electric 
     utility shall offer to arrange (either directly or through a 
     third party) to make interconnection and net metering 
     available to Federal Government agencies, offices, or 
     facilities in accordance with the requirements of section 
     115(j). The standard under this paragraph shall apply only to 
     electric utilities that sold over 4,000,000 megawatt hours of 
     electricity in the preceding year to the ultimate consumers 
     thereof. In the case of a standard under this paragraph, a 
     period of 1 year after the date of the enactment of this 
     section shall be substituted for the 2-year period referred 
     to in other provisions of this section.''.
       (b) Special Rules.--Section 115 of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended 
     by adding the following new subsection at the end thereof:
       ``(j) Net Metering for Federal Agencies.--(1) The standard 
     under paragraph (6) of section 113(b) shall require that 
     rates and charges and contract terms and conditions for the 
     sale of electric energy to the Federal Government or agency 
     shall be the same as the rates and charges and contract terms 
     and conditions that would be applicable if the agency did not 
     own or operate a qualified generation unit and use a net 
     metering system.
       ``(2)(A) The standard under paragraph (6) of section 113(b) 
     shall require that each electric utility shall arrange to 
     provide to the Government office or agency that qualifies for 
     net metering an electrical energy meter capable of net 
     metering and measuring, to the maximum extent practicable, 
     the flow of electricity to or from the customer, using a 
     single meter and single register, the cost of which shall be 
     recovered from the customer.
       ``(B) In a case in which it is not practicable to provide a 
     meter under subparagraph (A), the utility (either directly or 
     through a third party) shall, at the expense of the utility 
     install 1 or more of those electric energy meters.
       ``(3)(A) The standard under paragraph (6) of section 113(b) 
     shall require that each electric utility shall calculate the 
     electric energy consumption for the Government office or 
     agency using a net metering system that meets the 
     requirements of this subsection and paragraph (6) of section 
     113(b) and shall measure the net electricity produced or 
     consumed during the billing period using the metering 
     installed in accordance with this paragraph.
       ``(B) If the electricity supplied by the retail electric 
     supplier exceeds the electricity generated by the Government 
     office or agency during the billing period, the Government 
     office or agency shall be billed for the net electric energy 
     supplied by the retail electric supplier in accordance with 
     normal billing practices.
       ``(C) If electric energy generated by the Government office 
     or agency exceeds the electric energy supplied by the retail 
     electric supplier during the billing period, the Government 
     office or agency shall be billed for the appropriate customer 
     charges for that billing period and credited for the excess 
     electric energy generated during the billing period, with the 
     credit appearing as a kilowatt-hour credit on the bill for 
     the following billing period.
       ``(D) Any kilowatt-hour credits provided to the Government 
     office or agency as provided in this subsection shall be 
     applied to the Government office or agency electric energy 
     consumption on the following billing period bill (except for 
     a billing period that ends in the next calendar year). At the 
     beginning of each calendar year, any unused kilowatt-hour 
     credits remaining from the preceding year will carry over to 
     the new year.
       ``(4) The standard under paragraph (6) of section 113(b) 
     shall require that each electric utility shall offer a meter 
     and retail billing arrangement that has time-differentiated 
     rates. The kilowatt-hour credit shall be based on the ratio 
     representing the difference in retail rates for each time-of-
     use rate, or the credits shall be reflected on the bill of 
     the Government office or agency as a monetary credit 
     reflecting retail rates at the time of generation of the 
     electric energy by the customer-generator.
       ``(5) The standard under paragraph (6) of section 113(b) 
     shall require that the qualified generation unit, 
     interconnection standards, and net metering system used by 
     the Government office or agency shall meet all applicable 
     safety and performance and reliability standards established 
     by the National Electrical Code, the Institute of Electrical 
     and Electronics Engineers, Underwriters Laboratories, and the 
     American National Standards Institute.
       ``(6) The standard under paragraph (6) of section 113(b) 
     shall require that electric utilities shall not make 
     additional charges, including standby charges, for equipment 
     or services for safety or performance that are in

[[Page 16537]]

     addition to those necessary to meet the other standards and 
     requirements of this subsection and paragraph (6) of section 
     113(b).
       ``(7) For purposes of this subsection and paragraph (6) of 
     section 113(b):
       ``(A) The term `Government' means any office, facility, or 
     agency of the Federal Government.
       ``(B) The term `customer-generator' means the owner or 
     operator of a electricity generation unit.
       ``(C) The term `electric generation unit' means any 
     renewable electric generation unit that is owned, operated, 
     or sited on a Federal Government facility.
       ``(D) The term `net metering' means the process of--
       ``(i) measuring the difference between the electricity 
     supplied to a customer-generator and the electricity 
     generated by the customer-generator that is delivered to a 
     utility at the same point of interconnection during an 
     applicable billing period; and
       ``(ii) providing an energy credit to the customer-generator 
     in the form of a kilowatt-hour credit for each kilowatt-hour 
     of electricity produced by the customer-generator from an 
     electric generation unit.''.
       (c) Savings Provision.--If this section or a portion of 
     this section is determined to be invalid or unenforceable, 
     that shall not affect the validity or enforceability of any 
     other provision of this Act.

     SEC. 153. SUPPORT FOR QUALIFIED ADVANCED ELECTRIC 
                   TRANSMISSION MANUFACTURING PLANTS, QUALIFIED 
                   HIGH EFFICIENCY TRANSMISSION PROPERTY, AND 
                   QUALIFIED ADVANCED ELECTRIC TRANSMISSION 
                   PROPERTY.

       (a) Loan Guarantees Prior to September 30, 2011.--Section 
     1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 
     16515(a)), as added by section 406 of the American Recovery 
     and Reinvestment Act of 2009 (Public Law 109-58; 119 Stat. 
     594) is amended by adding the following new paragraph at the 
     end thereof:
       ``(5) The development, construction, acquisition, 
     retrofitting, or engineering integration of a qualified 
     advanced electric transmission manufacturing plant or the 
     construction of a qualified high efficiency transmission 
     property or a qualified advanced electric transmission 
     property (whether by construction of new facilities or the 
     modification of existing facilities). For purposes of this 
     paragraph:
       ``(A) The term `qualified advanced electric transmission 
     property' means any high voltage electric transmission cable, 
     related substation, converter station, or other integrated 
     facility that--
       ``(i) utilizes advanced ultra low resistance 
     superconductive material or other advanced technology that 
     has been determined by the Secretary of Energy as--

       ``(I) reasonably likely to become commercially viable 
     within 10 years after the date of enactment of this 
     paragraph;
       ``(II) capable of reliably transmitting at least 5 
     gigawatts of high-voltage electric energy for distances 
     greater than 300 miles with energy losses not exceeding 3 
     percent of the total power transported; and
       ``(III) not creating an electromagnetic field;

       ``(ii) has been determined by an appropriate energy 
     regulatory body, upon application, to be in the public 
     interest and thereby eligible for inclusion in regulated 
     rates; and
       ``(iii) can be located safely and economically in a 
     permanent underground right of way not to exceed 25 feet in 
     width.

     The term `qualified advanced electric transmission property' 
     shall not include any property placed in service after 
     December 31, 2016.
       ``(B)(i) The term `qualified high efficiency transmission 
     property' means any high voltage overhead electric 
     transmission line, related substation, or other integrated 
     facility that--
       ``(I) utilizes advanced conductor core technology that--

       ``(aa) has been determined by the Secretary of Energy as 
     reasonably likely to become commercially viable within 10 
     years after the date of enactment of this paragraph;
       ``(bb) is suitable for use on transmission lines up to 
     765kV; and
       ``(cc) exhibits power losses at least 30 percent lower than 
     that of transmission lines using conventional `ACSR' 
     conductors;

       ``(II) has been determined by an appropriate energy 
     regulatory body, upon application, to be in the public 
     interest and thereby eligible for inclusion in regulated 
     rates; and
       ``(III) can be located safely and economically in a right 
     of way not to exceed that used by conventional `ACSR' 
     conductors; and
       ``(ii) The term `qualified high efficiency transmission 
     property' shall not include any property placed in service 
     after December 31, 2016.
       ``(C) The term `qualified advanced electric transmission 
     manufacturing plant' means any industrial facility located in 
     the United States which can be equipped, re-equipped, 
     expanded, or established to produce in whole or in part 
     qualified advanced electric transmission property.''.
       (b) Additional Loan Guarantee Authority.--Section 1703 of 
     the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by 
     adding the following new paragraph at the end of subsection 
     (b):
       ``(12) The development, construction, acquisition, 
     retrofitting, or engineering integration of a qualified 
     advanced electric transmission manufacturing plant or the 
     construction of a qualified advanced electric transmission 
     property (whether by construction of new facilities or the 
     modification of existing facilities). For purposes of this 
     paragraph, the terms `qualified advanced electric 
     transmission property' and `qualified advanced electric 
     transmission manufacturing plant' have the meanings provided 
     by section 1705(a)(5).''.
       (c) Grants.--The Secretary of Energy is authorized to 
     provide grants for up to 50 percent of costs incurred in 
     connection with the development, construction, acquisition of 
     components for, or engineering of a qualified advanced 
     electric transmission property defined in paragraph (5) of 
     section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 
     16515(a)). Such grants may only be made to the first project 
     which qualifies under that paragraph. There are authorized to 
     be appropriated for purposes of this subsection not more than 
     $100,000,000 for fiscal year 2010. The United States shall 
     take no equity or other ownership interest in the qualified 
     advanced electric transmission manufacturing plant or 
     qualified advanced electric transmission property for which 
     funding is provided under this subsection.

            Subtitle G--Technical Corrections to Energy Laws

     SEC. 161. TECHNICAL CORRECTIONS TO ENERGY INDEPENDENCE AND 
                   SECURITY ACT OF 2007.

       (a) Title III--Energy Savings Through Improved Standards 
     for Appliance and Lighting.--(1) Section 325(u) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6295(u)) (as amended 
     by section 301(c) of the Energy Independence and Security Act 
     of 2007 (121 Stat. 1550)) is amended--
       (A) by redesignating paragraph (7) as paragraph (4); and
       (B) in paragraph (4) (as so redesignated), by striking 
     ``supplies is'' and inserting ``supply is''.
       (2) Section 302 of the Energy Independence and Security Act 
     of 2007 (121 Stat. 1551)) is amended--
       (A) in subsection (a), by striking ``end of the paragraph'' 
     and inserting ``end of subparagraph (A)''; and
       (B) in subsection (b), by striking ``6313(a)'' and 
     inserting ``6314(a)''.
       (3) Section 343(a)(1) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6313(a)(1)) (as amended by section 302(b) of 
     the Energy Independence and Security Act of 2007 (121 Stat. 
     1551)) is amended--
       (A) by striking ``Test procedures'' and all that follows 
     through ``At least once'' and inserting ``Test procedures.--
     At least once''; and
       (B) by redesignating clauses (i) and (ii) as subparagraphs 
     (A) and (B), respectively (and by moving the margins of such 
     subparagraphs 2 ems to the left).
       (4) Section 342(a)(6) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6313(a)(6)) (as amended by section 305(b)(2) 
     of the Energy Independence and Security Act of 2007 (121 
     Stat. 1554)) is amended--
       (A) in subparagraph (B)--
       (i) by striking ``If the Secretary'' and inserting the 
     following:
       ``(i) In general.--If the Secretary'';
       (ii) by striking ``clause (ii)(II)'' and inserting 
     ``subparagraph (A)(ii)(II)'';
       (iii) by striking ``clause (i)'' and inserting 
     ``subparagraph (A)(i)''; and
       (iv) by adding at the end the following:
       ``(ii) Factors.--In determining whether a standard is 
     economically justified for the purposes of subparagraph 
     (A)(ii)(II), the Secretary shall, after receiving views and 
     comments furnished with respect to the proposed standard, 
     determine whether the benefits of the standard exceed the 
     burden of the proposed standard by, to the maximum extent 
     practicable, considering--

       ``(I) the economic impact of the standard on the 
     manufacturers and on the consumers of the products subject to 
     the standard;
       ``(II) the savings in operating costs throughout the 
     estimated average life of the product in the type (or class) 
     compared to any increase in the price of, or in the initial 
     charges for, or maintenance expenses of, the products that 
     are likely to result from the imposition of the standard;
       ``(III) the total projected quantity of energy savings 
     likely to result directly from the imposition of the 
     standard;
       ``(IV) any lessening of the utility or the performance of 
     the products likely to result from the imposition of the 
     standard;
       ``(V) the impact of any lessening of competition, as 
     determined in writing by the Attorney General, that is likely 
     to result from the imposition of the standard;
       ``(VI) the need for national energy conservation; and
       ``(VII) other factors the Secretary considers relevant.

       ``(iii) Administration.--

       ``(I) Energy use and efficiency.--The Secretary may not 
     prescribe any amended standard under this paragraph that 
     increases the maximum allowable energy use, or decreases the 
     minimum required energy efficiency, of a covered product.

[[Page 16538]]

       ``(II) Unavailability.--

       ``(aa) In general.--The Secretary may not prescribe an 
     amended standard under this subparagraph if the Secretary 
     finds (and publishes the finding) that interested persons 
     have established by a preponderance of the evidence that a 
     standard is likely to result in the unavailability in the 
     United States in any product type (or class) of performance 
     characteristics (including reliability, features, sizes, 
     capacities, and volumes) that are substantially the same as 
     those generally available in the United States at the time of 
     the finding of the Secretary.
       ``(bb) Other types or classes.--The failure of some types 
     (or classes) to meet the criterion established under this 
     subclause shall not affect the determination of the Secretary 
     on whether to prescribe a standard for the other types or 
     classes.''; and
       (B) in subparagraph (C)(iv), by striking ``An amendment 
     prescribed under this subsection'' and inserting 
     ``Notwithstanding subparagraph (D), an amendment prescribed 
     under this subparagraph''.
       (5) Section 342(a)(6)(B)(iii) of the Energy Policy and 
     Conservation Act (as added by section 306(c) of the Energy 
     Independence and Security Act of 2007) is transferred and 
     redesignated as clause (vi) of section 342(a)(6)(C) of the 
     Energy Policy and Conservation Act (as amended by section 
     305(b)(2) of the Energy Independence and Security Act of 
     2007).
       (6) Section 340 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6311) (as amended by sections 312(a)(2) and 314(a) 
     of the Energy Independence and Security Act of 2007 (121 
     Stat. 1564, 1569)) is amended by redesignating paragraphs 
     (22) and (23) (as added by section 314(a) of that Act) as 
     paragraphs (23) and (24), respectively.
       (7) Section 345 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6316) (as amended by section 312(e) of the Energy 
     Independence and Security Act of 2007 (121 Stat. 1567)) is 
     amended--
       (A) by striking ``subparagraphs (B) through (G)'' each 
     place it appears and inserting ``subparagraphs (B), (C), (D), 
     (I), (J), and (K)'';
       (B) by striking ``part A'' each place it appears and 
     inserting ``part B''; and
       (C) in subsection (h)(3), by striking ``section 342(f)(3)'' 
     and inserting ``section 342(f)(4)''.
       (8) Section 340(13) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6311(13)) (as amended by section 313(a) of the 
     Energy Independence and Security Act of 2007 (121 Stat. 
     1568)) is amended--
       (A) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) In general.--The term `electric motor' means any 
     motor that is--
       ``(i) a general purpose T-frame, single-speed, foot-
     mounting, polyphase squirrel-cage induction motor of the 
     National Electrical Manufacturers Association, Design A and 
     B, continuous rated, operating on 230/460 volts and constant 
     60 Hertz line power as defined in NEMA Standards Publication 
     MG1-1987; or
       ``(ii) a motor incorporating the design elements described 
     in clause (i), but is configured to incorporate one or more 
     of the following variations--

       ``(I) U-frame motor;
       ``(II) NEMA Design C motor;
       ``(III) close-coupled pump motor;
       ``(IV) footless motor;
       ``(V) vertical solid shaft normal thrust motor (as tested 
     in a horizontal configuration);
       ``(VI) 8-pole motor; or
       ``(VII) poly-phase motor with a voltage rating of not more 
     than 600 volts (other than 230 volts or 460 volts, or both, 
     or can be operated on 230 volts or 460 volts, or both).''; 
     and

       (B) by redesignating subparagraphs (C) through (I) as 
     subparagraphs (B) through (H), respectively.
       (9)(A) Section 342(b) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6313(b)) is amended--
       (i) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraph (3)'';
       (ii) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4);
       (iii) by inserting after paragraph (1) the following:
       ``(2) Standards effective beginning december 19, 2010.--
       ``(A) In general.--Except for definite purpose motors, 
     special purpose motors, and those motors exempted by the 
     Secretary under paragraph (3) and except as provided for in 
     subparagraphs (B), (C), and (D), each electric motor 
     manufactured with power ratings from 1 to 200 horsepower 
     (alone or as a component of another piece of equipment) on or 
     after December 19, 2010, shall have a nominal full load 
     efficiency of not less than the nominal full load efficiency 
     described in NEMA MG-1 (2006) Table 12-12.
       ``(B) Fire pump electric motors.--Except for those motors 
     exempted by the Secretary under paragraph (3), each fire pump 
     electric motor manufactured with power ratings from 1 to 200 
     horsepower (alone or as a component of another piece of 
     equipment) on or after December 19, 2010, shall have a 
     nominal full load efficiency that is not less than the 
     nominal full load efficiency described in NEMA MG-1 (2006) 
     Table 12-11.
       ``(C) NEMA design b electric motors.--Except for those 
     motors exempted by the Secretary under paragraph (3), each 
     NEMA Design B electric motor with power ratings of more than 
     200 horsepower, but not greater than 500 horsepower, 
     manufactured (alone or as a component of another piece of 
     equipment) on or after December 19, 2010, shall have a 
     nominal full load efficiency of not less than the nominal 
     full load efficiency described in NEMA MG-1 (2006) Table 12-
     11.
       ``(D) Motors incorporating certain design elements.--Except 
     for those motors exempted by the Secretary under paragraph 
     (3), each electric motor described in section 340(13)(A)(ii) 
     manufactured with power ratings from 1 to 200 horsepower 
     (alone or as a component of another piece of equipment) on or 
     after December 19, 2010, shall have a nominal full load 
     efficiency of not less than the nominal full load efficiency 
     described in NEMA MG-1 (2006) Table 12-11.''; and
       (iv) in paragraph (3) (as redesignated by clause (ii)), by 
     striking ``paragraph (1)'' each place it appears in 
     subparagraphs (A) and (D) and inserting ``paragraphs (1) and 
     (2)''.
       (B) Section 313 of the Energy Independence and Security Act 
     of 2007 (121 Stat. 1568) is repealed.
       (C) The amendments made by--
       (i) subparagraph (A) shall take effect on December 19, 
     2010; and
       (ii) subparagraph (B) shall take effect on December 19, 
     2007.
       (10) Section 321(30)(D)(i)(III) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291(30)(D)(i)(III)) (as amended 
     by section 321(a)(1)(A) of the Energy Independence and 
     Security Act of 2007 (121 Stat. 1574)) is amended by 
     inserting before the semicolon the following: ``or, in the 
     case of a modified spectrum lamp, not less than 232 lumens 
     and not more than 1,950 lumens''.
       (11) Section 321(30)(T) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291(30)(T) (as amended by 
     section 321(a)(1)(B) of the Energy Independence and Security 
     Act of 2007 (121 Stat. 1574)) is amended--
       (A) in clause (i)--
       (i) by striking the comma after ``household appliance'' and 
     inserting ``and''; and
       (ii) by striking ``and is sold at retail,''; and
       (B) in clause (ii), by inserting ``when sold at retail,'' 
     before ``is designated''.
       (12) Section 325 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6295) (as amended by sections 321(a)(3)(A) and 
     322(b) of the Energy Independence and Security Act of 2007 
     (121 Stat. 1577, 1588)) is amended by striking subsection (i) 
     and inserting the following:
       ``(i) General Service Fluorescent Lamps, General Service 
     Incandescent Lamps, Intermediate Base Incandescent Lamps, 
     Candelabra Base Incandescent Lamps, and Incandescent 
     Reflector Lamps.--
       ``(1) Energy efficiency standards.--
       ``(A) In general.--Each of the following general service 
     fluorescent lamps, general service incandescent lamps, 
     intermediate base incandescent lamps, candelabra base 
     incandescent lamps, and incandescent reflector lamps 
     manufactured after the effective date specified in the tables 
     listed in this subparagraph shall meet or exceed the 
     following lamp efficacy, new maximum wattage, and CRI 
     standards:

                                               ``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                                  Effective Date
           Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
                                      Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
                                       35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
                                        35 W              45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
                                       65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
                                       100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------


[[Page 16539]]


                     ``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                                          Effective Date
     Nominal Lamp Wattage         Minimum Average Lamp      (Period of
                                     Efficacy (LPW)           Months)
------------------------------------------------------------------------
 40-50.......................             10.5                  36
 51-66.......................             11.0                  36
 67-85.......................             12.5                  36
 86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------



                                      ``GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                         Minimum
                       Rated Lumen Ranges                            Maximum Rated        Rated       Effective
                                                                        Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1490-2600                                                                        72     1,000 hrs      1/1/2012
1050-1489                                                                        53     1,000 hrs      1/1/2013
750-1049                                                                         43     1,000 hrs      1/1/2014
310-749                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------



                             ``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                         Minimum
                       Rated Lumen Ranges                            Maximum Rated        Rated       Effective
                                                                        Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1118-1950                                                                        72     1,000 hrs      1/1/2012
788-1117                                                                         53     1,000 hrs      1/1/2013
563-787                                                                          43     1,000 hrs      1/1/2014
232-562                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------

       ``(B) Application.--
       ``(i) Application criteria.--This subparagraph applies to 
     each lamp that--

       ``(I) is intended for a general service or general 
     illumination application (whether incandescent or not);
       ``(II) has a medium screw base or any other screw base not 
     defined in ANSI C81.61-2006;
       ``(III) is capable of being operated at a voltage at least 
     partially within the range of 110 to 130 volts; and
       ``(IV) is manufactured or imported after December 31, 2011.

       ``(ii) Requirement.--For purposes of this paragraph, each 
     lamp described in clause (i) shall have a color rendering 
     index that is greater than or equal to--

       ``(I) 80 for nonmodified spectrum lamps; or
       ``(II) 75 for modified spectrum lamps.

       ``(C) Candelabra incandescent lamps and intermediate base 
     incandescent lamps.--
       ``(i) Candelabra base incandescent lamps.--Effective 
     beginning January 1, 2012, a candelabra base incandescent 
     lamp shall not exceed 60 rated watts.
       ``(ii) Intermediate base incandescent lamps.--Effective 
     beginning January 1, 2012, an intermediate base incandescent 
     lamp shall not exceed 40 rated watts.
       ``(D) Exemptions.--
       ``(i) Statutory exemptions.--The standards specified in 
     subparagraph (A) shall not apply to the following types of 
     incandescent reflector lamps:

       ``(I) Lamps rated at 50 watts or less that are ER30, BR30, 
     BR40, or ER40 lamps.
       ``(II) Lamps rated at 65 watts that are BR30, BR40, or ER40 
     lamps.
       ``(III) R20 incandescent reflector lamps rated 45 watts or 
     less.

       ``(ii) Administrative exemptions.--

       ``(I) Petition.--Any person may petition the Secretary for 
     an exemption for a type of general service lamp from the 
     requirements of this subsection.
       ``(II) Criteria.--The Secretary may grant an exemption 
     under subclause (I) only to the extent that the Secretary 
     finds, after a hearing and opportunity for public comment, 
     that it is not technically feasible to serve a specialized 
     lighting application (such as a military, medical, public 
     safety, or certified historic lighting application) using a 
     lamp that meets the requirements of this subsection.
       ``(III) Additional criterion.--To grant an exemption for a 
     product under this clause, the Secretary shall include, as an 
     additional criterion, that the exempted product is unlikely 
     to be used in a general service lighting application.

       ``(E) Extension of coverage.--
       ``(i) Petition.--Any person may petition the Secretary to 
     establish standards for lamp shapes or bases that are 
     excluded from the definition of general service lamps.
       ``(ii) Increased sales of exempted lamps.--The petition 
     shall include evidence that the availability or sales of 
     exempted incandescent lamps have increased significantly 
     since the date on which the standards on general service 
     incandescent lamps were established.
       ``(iii) Criteria.--The Secretary shall grant a petition 
     under clause (i) if the Secretary finds that--

       ``(I) the petition presents evidence that demonstrates that 
     commercial availability or sales of exempted incandescent 
     lamp types have increased significantly since the standards 
     on general service lamps were established and likely are 
     being widely used in general lighting applications; and
       ``(II) significant energy savings could be achieved by 
     covering exempted products, as determined by the Secretary 
     based in part on sales data provided to the Secretary from 
     manufacturers and importers.

       ``(iv) No presumption.--The grant of a petition under this 
     subparagraph shall create no presumption with respect to the 
     determination of the Secretary with respect to any criteria 
     under a rulemaking conducted under this section.
       ``(v) Expedited proceeding.--If the Secretary grants a 
     petition for a lamp shape or base under this subparagraph, 
     the Secretary shall--

       ``(I) conduct a rulemaking to determine standards for the 
     exempted lamp shape or base; and
       ``(II) complete the rulemaking not later than 18 months 
     after the date on which notice is provided granting the 
     petition.

       ``(F) Effective dates.--
       ``(i) In general.--In this paragraph, except as otherwise 
     provided in a table contained in subparagraph (A) or in 
     clause (ii), the term `effective date' means the last day of 
     the month specified in the table that follows October 24, 
     1992.
       ``(ii) Special effective dates.--

       ``(I) ER, br, and bpar lamps.--The standards specified in 
     subparagraph (A) shall apply with respect to ER incandescent 
     reflector lamps, BR incandescent reflector lamps, BPAR 
     incandescent reflector lamps, and similar bulb shapes on and 
     after January 1, 2008, or the date that is 180 days after the 
     date of enactment of the Energy Independence and Security Act 
     of 2007.
       ``(II) Lamps between 2.25-2.75 inches in diameter.--The 
     standards specified in subparagraph (A) shall apply with 
     respect to incandescent reflector lamps with a diameter of 
     more than 2.25 inches, but not more than 2.75 inches, on and 
     after the later of January 1, 2008, or the date that is 180 
     days after the date of enactment of the Energy Independence 
     and Security Act of 2007.

       ``(2) Compliance with existing law.--Notwithstanding 
     section 332(a)(5) and section 332(b), it shall not be 
     unlawful for a manufacturer to sell a lamp that is in 
     compliance with the law at the time the lamp was 
     manufactured.
       ``(3) Rulemaking before october 24, 1995.--
       ``(A) In general.--Not later than 36 months after October 
     24, 1992, the Secretary shall initiate a rulemaking procedure 
     and shall publish a final rule not later than the end of the 
     54-month period beginning on October 24, 1992, to determine 
     whether the

[[Page 16540]]

     standards established under paragraph (1) should be amended.
       ``(B) Administration.--The rule shall contain the 
     amendment, if any, and provide that the amendment shall apply 
     to products manufactured on or after the 36-month period 
     beginning on the date on which the final rule is published.
       ``(4) Rulemaking before october 24, 2000.--
       ``(A) In general.--Not later than 8 years after October 24, 
     1992, the Secretary shall initiate a rulemaking procedure and 
     shall publish a final rule not later than 9 years and 6 
     months after October 24, 1992, to determine whether the 
     standards in effect for fluorescent lamps and incandescent 
     lamps should be amended.
       ``(B) Administration.--The rule shall contain the 
     amendment, if any, and provide that the amendment shall apply 
     to products manufactured on or after the 36-month period 
     beginning on the date on which the final rule is published.
       ``(5) Rulemaking for additional general service fluorescent 
     lamps.--
       ``(A) In general.--Not later than the end of the 24-month 
     period beginning on the date labeling requirements under 
     section 324(a)(2)(C) become effective, the Secretary shall--
       ``(i) initiate a rulemaking procedure to determine whether 
     the standards in effect for fluorescent lamps and 
     incandescent lamps should be amended so that the standards 
     would be applicable to additional general service fluorescent 
     lamps; and
       ``(ii) publish, not later than 18 months after initiating 
     the rulemaking, a final rule including the amended standards, 
     if any.
       ``(B) Administration.--The rule shall provide that the 
     amendment shall apply to products manufactured after a date 
     which is 36 months after the date on which the rule is 
     published.
       ``(6) Standards for general service lamps.--
       ``(A) Rulemaking before january 1, 2014.--
       ``(i) In general.--Not later than January 1, 2014, the 
     Secretary shall initiate a rulemaking procedure to determine 
     whether--

       ``(I) standards in effect for general service lamps should 
     be amended; and
       ``(II) the exclusions for certain incandescent lamps should 
     be maintained or discontinued based, in part, on excluded 
     lamp sales collected by the Secretary from manufacturers.

       ``(ii) Scope.--The rulemaking--

       ``(I) shall not be limited to incandescent lamp 
     technologies; and
       ``(II) shall include consideration of a minimum standard of 
     45 lumens per watt for general service lamps.

       ``(iii) Amended standards.--If the Secretary determines 
     that the standards in effect for general service lamps should 
     be amended, the Secretary shall publish a final rule not 
     later than January 1, 2017, with an effective date that is 
     not earlier than 3 years after the date on which the final 
     rule is published.
       ``(iv) Phased-in effective dates.--The Secretary shall 
     consider phased-in effective dates under this subparagraph 
     after considering--

       ``(I) the impact of any amendment on manufacturers, 
     retiring and repurposing existing equipment, stranded 
     investments, labor contracts, workers, and raw materials; and
       ``(II) the time needed to work with retailers and lighting 
     designers to revise sales and marketing strategies.

       ``(v) Backstop requirement.--If the Secretary fails to 
     complete a rulemaking in accordance with clauses (i) through 
     (iv) or if the final rule does not produce savings that are 
     greater than or equal to the savings from a minimum efficacy 
     standard of 45 lumens per watt, effective beginning January 
     1, 2020, the Secretary shall prohibit the manufacture of any 
     general service lamp that does not meet a minimum efficacy 
     standard of 45 lumens per watt.
       ``(vi) State preemption.--Neither section 327(c) nor any 
     other provision of law shall preclude California or Nevada 
     from adopting, effective beginning on or after January 1, 
     2018--

       ``(I) a final rule adopted by the Secretary in accordance 
     with clauses (i) through (iv);
       ``(II) if a final rule described in subclause (I) has not 
     been adopted, the backstop requirement under clause (v); or
       ``(III) in the case of California, if a final rule 
     described in subclause (I) has not been adopted, any 
     California regulations relating to these covered products 
     adopted pursuant to State statute in effect as of the date of 
     enactment of the Energy Independence and Security Act of 
     2007.

       ``(B) Rulemaking before january 1, 2020.--
       ``(i) In general.--Not later than January 1, 2020, the 
     Secretary shall initiate a rulemaking procedure to determine 
     whether--

       ``(I) standards in effect for general service lamps should 
     be amended; and
       ``(II) the exclusions for certain incandescent lamps should 
     be maintained or discontinued based, in part, on excluded 
     lamp sales data collected by the Secretary from 
     manufacturers.

       ``(ii) Scope.--The rulemaking shall not be limited to 
     incandescent lamp technologies.
       ``(iii) Amended standards.--If the Secretary determines 
     that the standards in effect for general service lamps should 
     be amended, the Secretary shall publish a final rule not 
     later than January 1, 2022, with an effective date that is 
     not earlier than 3 years after the date on which the final 
     rule is published.
       ``(iv) Phased-in effective dates.--The Secretary shall 
     consider phased-in effective dates under this subparagraph 
     after considering--

       ``(I) the impact of any amendment on manufacturers, 
     retiring and repurposing existing equipment, stranded 
     investments, labor contracts, workers, and raw materials; and
       ``(II) the time needed to work with retailers and lighting 
     designers to revise sales and marketing strategies.

       ``(7) Federal actions.--
       ``(A) Comments of secretary.--
       ``(i) In general.--With respect to any lamp to which 
     standards are applicable under this subsection or any lamp 
     specified in section 346, the Secretary shall inform any 
     Federal entity proposing actions that would adversely impact 
     the energy consumption or energy efficiency of the lamp of 
     the energy conservation consequences of the action.
       ``(ii) Consideration.--The Federal entity shall carefully 
     consider the comments of the Secretary.
       ``(B) Amendment of standards.--Notwithstanding section 
     325(n)(1), the Secretary shall not be prohibited from 
     amending any standard, by rule, to permit increased energy 
     use or to decrease the minimum required energy efficiency of 
     any lamp to which standards are applicable under this 
     subsection if the action is warranted as a result of other 
     Federal action (including restrictions on materials or 
     processes) that would have the effect of either increasing 
     the energy use or decreasing the energy efficiency of the 
     product.
       ``(8) Compliance.--
       ``(A) In general.--Not later than the date on which 
     standards established pursuant to this subsection become 
     effective, or, with respect to high-intensity discharge lamps 
     covered under section 346, the effective date of standards 
     established pursuant to that section, each manufacturer of a 
     product to which the standards are applicable shall file with 
     the Secretary a laboratory report certifying compliance with 
     the applicable standard for each lamp type.
       ``(B) Contents.--The report shall include the lumen output 
     and wattage consumption for each lamp type as an average of 
     measurements taken over the preceding 12-month period.
       ``(C) Other lamp types.--With respect to lamp types that 
     are not manufactured during the 12-month period preceding the 
     date on which the standards become effective, the report 
     shall--
       ``(i) be filed with the Secretary not later than the date 
     that is 12 months after the date on which manufacturing is 
     commenced; and
       ``(ii) include the lumen output and wattage consumption for 
     each such lamp type as an average of measurements taken 
     during the 12-month period.''.
       (13) Section 325(l)(4)(A) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295(l)(4)(A)) (as amended by 
     section 321(a)(3)(B) of the Energy Independence and Security 
     Act of 2007 (121 Stat. 1581)) is amended by striking 
     ``only''.
       (14) Section 327(b)(1)(B) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6297(b)(1)(B)) (as amended by 
     section 321(d)(3) of the Energy Independence and Security Act 
     of 2007 (121 Stat. 1585)) is amended--
       (A) in clause (i), by inserting ``and'' after the semicolon 
     at the end;
       (B) in clause (ii), by striking ``; and'' and inserting a 
     period; and
       (C) by striking clause (iii).
       (15) Section 321(e) of the Energy Independence and Security 
     Act of 2007 (121 Stat. 1586) is amended--
       (A) in the matter preceding paragraph (1), by striking ``is 
     amended'' and inserting ``(as amended by section 306(b)) is 
     amended''; and
       (B) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) in paragraph (5), by striking `or' after the 
     semicolon at the end;
       ``(2) in paragraph (6), by striking the period at the end 
     and inserting `; or'; and''.
       (16) Section 332(a) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6302(a)) (as amended by section 321(e) of the 
     Energy Independence and Security Act of 2007 (121 Stat. 
     1586)) is amended by redesignating the second paragraph (6) 
     as paragraph (7).
       (17) Section 321(30)(C)(ii) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291(30)(C)(ii)) (as amended by 
     section 322(a)(1)(B) of the Energy Independence and Security 
     Act of 2007 (121 Stat. 1587)) is amended by inserting a 
     period after ``40 watts or higher''.
       (18) Section 322(b) of the Energy Independence and Security 
     Act of 2007 (121 Stat. 1588)) is amended by striking 
     ``6995(i)'' and inserting ``6295(i)''.
       (19) Section 327(c) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6297(c)) (as amended by sections 324(f) of the 
     Energy Independence and Security Act of 2007 (121 Stat. 
     1594)) is amended--
       (A) in paragraph (6), by striking ``or'' after the 
     semicolon at the end;
       (B) in paragraph (8)(B), by striking ``and'' after the 
     semicolon at the end;

[[Page 16541]]

       (C) in paragraph (9)--
       (i) by striking ``except that--'' and all that follows 
     through ``if the Secretary fails to issue'' and inserting 
     ``except that if the Secretary fails to issue'';
       (ii) by redesignating clauses (i) and (ii) as subparagraphs 
     (A) and (B), respectively (and by moving the margins of such 
     subparagraphs 2 ems to the left); and
       (iii) by striking the period at the end and inserting a 
     semicolon; and
       (D) by adding at the end the following:
       ``(10) is a regulation for general service lamps that 
     conforms with Federal standards and effective dates;
       ``(11) is an energy efficiency standard for general service 
     lamps enacted into law by the State of Nevada prior to 
     December 19, 2007, if the State has not adopted the Federal 
     standards and effective dates pursuant to subsection 
     (b)(1)(B)(ii); or''.
       (20) Section 325(b) of the Energy Independence and Security 
     Act of 2007 (121 Stat. 1596)) is amended by striking 
     ``6924(c)'' and inserting ``6294(c)''.
       (b) Title IV--Energy Savings in Buildings and Industry.--
     (1) Section 401 of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17061) is amended--
       (A) in paragraph (2), by striking ``484'' and inserting 
     ``494''; and
       (B) in paragraph (13), by striking ``Agency'' and inserting 
     ``Administration''.
       (2) Section 422 of the Energy Conservation and Production 
     Act (42 U.S.C. 6872) (as amended by section 411(a) of the 
     Energy Independence and Security Act of 2007 (121 Stat. 
     1600)) is amended by striking 1 of the 2 periods at the end 
     of paragraph (5).
       (3) Section 305(a)(3)(D)(i) of the Energy Conservation and 
     Production Act (42 U.S.C. 6834(a)(3)(D)(i)) (as amended by 
     section 433(a) of the Energy Independence and Security Act of 
     2007 (121 Stat. 1612)) is amended--
       (A) in subclause (I)--
       (i) by striking ``in fiscal year 2003 (as measured by 
     Commercial Buildings Energy Consumption Survey or Residential 
     Energy Consumption Survey data from the Energy Information 
     Agency'' and inserting ``as measured by the calendar year 
     2003 Commercial Buildings Energy Consumption Survey or the 
     calendar year 2005 Residential Energy Consumption Survey data 
     from the Energy Information Administration''; and
       (ii) in the table at the end, by striking ``Fiscal Year'' 
     and inserting ``Calendar Year''; and
       (B) in subclause (II)--
       (i) by striking ``(II) Upon petition'' and inserting the 
     following:

       ``(II) Downward adjustment of numeric requirement.--

       ``(aa) In general.--On petition''; and
       (ii) by striking the last sentence and inserting the 
     following:
       ``(bb) Exceptions to requirement for concurrence of 
     secretary.--
         ``(AA) In general.--The requirement to petition and 
     obtain the concurrence of the Secretary under this subclause 
     shall not apply to any Federal building with respect to which 
     the Administrator of General Services is required to transmit 
     a prospectus to Congress under section 3307 of title 40, 
     United States Code, or to any other Federal building 
     designed, constructed, or renovated by the Administrator if 
     the Administrator certifies, in writing, that meeting the 
     applicable numeric requirement under subclause (I) with 
     respect to the Federal building would be technically 
     impracticable in light of the specific functional needs for 
     the building.
         ``(BB) Adjustment.--In the case of a building described 
     in subitem (AA), the Administrator may adjust the applicable 
     numeric requirement of subclause (I) downward with respect to 
     the building.''.
       (4) Section 436(c)(3) of the Energy Independence and 
     Security Act of 2007 (42 U.S.C. 17092(c)(3)) is amended by 
     striking ``474'' and inserting ``494''.
       (5) Section 440 of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17096) is amended by striking ``and 482''.
       (6) Section 373(c) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6343(c)) (as amended by section 451(a) of the 
     Energy Independence and Security Act of 2007 (121 Stat. 
     1628)) is amended by striking ``Administrator'' and inserting 
     ``Secretary''.
       (c) Date of Enactment.--Section 1302 of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17382) is 
     amended in the first sentence by striking ``enactment'' and 
     inserting ``the date of enactment of this Act''.
       (d) Reference.--Section 1306(c)(3) of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17386(c)(3)) 
     is amended by striking ``section 1307 (paragraph (17) of 
     section 111(d) of the Public Utility Regulatory Policies Act 
     of 1978)'' and inserting ``paragraph (19) of section 111(d) 
     of the Public Utility Regulatory Policies Act of 1978 (16 
     U.S.C. 2621(d))''.
       (e) Effective Date.--This section and the amendments made 
     by this section take effect as if included in the Energy 
     Independence and Security Act of 2007 (Public Law 110-140; 
     121 Stat. 1492).

     SEC. 162. TECHNICAL CORRECTIONS TO ENERGY POLICY ACT OF 2005.

       (a) Title I--Energy Efficiency.--Section 325(g)(8)(C)(ii) 
     of the Energy Policy and Conservation Act (42 U.S.C. 
     6295(g)(8)(C)(ii)) (as added by section 135(c)(2)(B) of the 
     Energy Policy Act of 2005) is amended by striking ``20F'' 
     and inserting ``-20F''.
       (b) Effective Date.--This section and the amendments made 
     by this section take effect as if included in the Energy 
     Policy Act of 2005 (Public Law 109-58; 119 Stat. 594).

         Subtitle H--Energy and Efficiency Centers and Research

     SEC. 171. ENERGY INNOVATION HUBS.

       (a) Purpose.--The Secretary shall carry out a program to 
     establish Energy Innovation Hubs to enhance the Nation's 
     economic, environmental, and energy security by promoting 
     commercial application of clean, indigenous energy 
     alternatives to oil and other fossil fuels, reducing 
     greenhouse gas emissions, and ensuring that the United States 
     maintains a technological lead in the development and 
     commercial application of state-of-the-art energy 
     technologies. To achieve these purposes the program shall--
       (1) leverage the expertise and resources of the university 
     and private research communities, industry, venture capital, 
     national laboratories, and other participants in energy 
     innovation to support cross-disciplinary research and 
     development in areas not being served by the private sector 
     in order to develop and transfer innovative clean energy 
     technologies into the marketplace;
       (2) expand the knowledge base and human capital necessary 
     to transition to a low-carbon economy; and
       (3) promote regional economic development by cultivating 
     clusters of clean energy technology firms, private research 
     organizations, suppliers, and other complementary groups and 
     businesses.
       (b) Definitions.--For purposes of this section:
       (1) Allowance.--The term ``allowance'' means an emission 
     allowance established under section 721 of the Clean Air Act 
     (as added by section 311 of this Act).
       (2) Clean energy technology.--The term ``clean energy 
     technology'' means a technology that--
       (A) produces energy from solar, wind, geothermal, biomass, 
     tidal, wave, ocean, and other renewable energy resources (as 
     such term is defined in section 610 of the Public Utility 
     Regulatory Policies Act of 1978);
       (B) more efficiently transmits, distributes, or stores 
     energy;
       (C) enhances energy efficiency for buildings and industry, 
     including combined heat and power;
       (D) enables the development of a Smart Grid (as described 
     in section 1301 of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17381)), including integration of 
     renewable energy resources and distributed generation, demand 
     response, demand side management, and systems analysis;
       (E) produces an advanced or sustainable material with 
     energy or energy efficiency applications;
       (F) enhances water security through improved water 
     management, conservation, distribution, and end use 
     applications; or
       (G) improves energy efficiency for transportation, 
     including electric vehicles.
       (3) Cluster.--The term ``cluster'' means a network of 
     entities directly involved in the research, development, 
     finance, and commercialization of clean energy technologies 
     whose geographic proximity facilitates utilization and 
     sharing of skilled human resources, infrastructure, research 
     facilities, educational and training institutions, venture 
     capital, and input suppliers.
       (4) Hub.--The term ``Hub'' means an Energy Innovation Hub 
     established in accordance with this section.
       (5) Project.--The term ``project'' means an activity with 
     respect to which a Hub provides support under subsection (e).
       (6) Qualifying entity.--The term ``qualifying entity'' 
     means each of the following:
       (A) A research university.
       (B) A State or Federal institution with a focus on the 
     advancement of clean energy technologies.
       (C) A nongovernmental organization with research or 
     commercialization expertise in clean energy technology 
     development.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (8) Technology development focus.--The term ``technology 
     development focus'' means the unique technology development 
     areas in which a Hub will specialize, and may include solar 
     electricity, fuels from solar energy, batteries and energy 
     storage, electricity grid systems and devices, energy 
     efficient building systems and design, advanced materials, 
     modeling and simulation, and other clean energy technology 
     development areas designated by the Secretary.
       (9) Translational research.--The term ``translational 
     research'' means coordination of basic or applied research 
     with technical and commercial applications to enable 
     promising discoveries or inventions to attract investment 
     sufficient for market penetration and diffusion.
       (10) Vintage year.--The term ``vintage year'' has the 
     meaning given that term in section 700 of the Clean Air Act 
     (as added by section 312 of this Act).
       (c) Role of the Secretary.--The Secretary shall--
       (1) have ultimate responsibility for, and oversight of, all 
     aspects of the program under this section;
       (2) provide for the distribution of allowances allocated 
     under section 782(h)(1) of the Clean Air Act (as added by 
     section 321 of this

[[Page 16542]]

     Act) to support the establishment of 8 Hubs, each with a 
     unique designated technology development focus, pursuant to 
     this section;
       (3) coordinate the innovation activities of Hubs with those 
     occurring through other Department of Energy entities, 
     including the National Laboratories, the Advanced Research 
     Projects Agency--Energy, and Energy Frontier Research 
     Collaborations, and within industry, including by annually--
       (A) issuing guidance regarding national energy research and 
     development priorities and strategic objectives; and
       (B) convening a conference of staff of the Department of 
     Energy and representatives from such other entities to share 
     research results, program plans, and opportunities for 
     collaboration.
       (d) Entities Eligible for Support.--A consortium shall be 
     eligible to receive allowances to support the establishment 
     of a Hub under this section if--
       (1) it is composed of--
       (A) 2 research universities with a combined annual research 
     budget of $500,000,000; and
       (B) 1 or more additional qualifying entities;
       (2) its members have established a binding agreement that 
     documents--
       (A) the structure of the partnership agreement;
       (B) a governance and management structure to enable cost-
     effective implementation of the program;
       (C) an intellectual property management policy;
       (D) a conflicts of interest policy consistent with 
     subsection (e)(4);
       (E) an accounting structure that meets the requirements of 
     the Department of Energy and can be audited under subsection 
     (f)(5); and
       (F) that it has an Advisory Board consistent with 
     subsection (e)(3);
       (3) it receives financial contributions from States, 
     consortium participants, or other non-Federal sources, to be 
     used to support project awards pursuant to subsection (e);
       (4) it is part of an existing cluster or demonstrates high 
     potential to develop a new cluster; and
       (5) it operates as a nonprofit organization.
       (e) Energy Innovation Hubs.--
       (1) Role.--Hubs receiving allowances under this section 
     shall support translational research activities leading to 
     commercial application of clean energy technologies, in 
     accordance with the purposes of this section, through 
     issuance of awards to projects managed by qualifying entities 
     and other entities meeting the Hub's project criteria, 
     including national laboratories. Each such Hub shall--
       (A) develop and publish for public review and comment 
     proposed plans, programs, project selection criteria, and 
     terms for individual project awards under this subsection;
       (B) submit an annual report to the Secretary summarizing 
     the Hub's activities, organizational expenditures, and Board 
     members, which shall include a certification of compliance 
     with conflict of interest policies and a description of each 
     project in the research portfolio;
       (C) establish policies--
       (i) regarding intellectual property developed as a result 
     of Hub awards and other forms of technology support that 
     encourage individual ingenuity and invention while speeding 
     technology transfer and facilitating the establishment of 
     rapid commercialization pathways;
       (ii) to prevent resources provided to the Hub from being 
     used to displace private sector investment otherwise likely 
     to occur, including investment from private sector entities 
     that are members of the consortium;
       (iii) to facilitate the participation of private investment 
     firms or other private entities that invest in clean energy 
     technologies to perform due diligence on award proposals, to 
     participate in the award review process, and to provide 
     guidance to projects supported by the Hub; and
       (iv) to facilitate the participation of entrepreneurs with 
     a demonstrated history of developing and commercializing 
     clean energy technologies;
       (D) oversee project solicitations, review proposed 
     projects, and select projects for awards; and
       (E) monitor project implementation.
       (2) Distribution of awards by hubs.--A Hub shall distribute 
     awards under this subsection to support clean energy 
     technology projects conducting translational research and 
     related activities, provided that at least 50 percent of such 
     support shall be provided to projects related to the Hub's 
     technology development focus.
       (3) Advisory boards.--
       (A) In general.--Each Hub shall establish an Advisory 
     Board, the members of which shall have extensive and relevant 
     scientific, technical, industry, financial, or research 
     management expertise. The Advisory Board shall review the 
     Hub's proposed plans, programs, project selection criteria, 
     and projects and shall ensure that projects selected for 
     awards meet the conflict of interest policies of the Hub. 
     Advisory Board members other than those representing 
     consortium members shall serve for no more than 3 years. All 
     Advisory Board members shall comply with the Hub's conflict 
     of interest policies and procedures.
       (B) Members.--Each Advisory Board shall consist of--
       (i) 5 members selected by the consortium's research 
     universities;
       (ii) 2 members selected by the consortium's other 
     qualifying entities;
       (iii) 2 members selected at large by other Advisory Board 
     members to represent the entrepreneur and venture capital 
     communities; and
       (iv) 1 member appointed by the Secretary.
       (D) Compensation.--Members of an Advisory Board may receive 
     reimbursement for travel expenses and a reasonable stipend.
       (4) Conflict of interest.--
       (A) Procedures.--Hubs shall establish procedures to ensure 
     that any employee or consortia designee for Hub activities 
     who serves in a decisionmaking capacity shall--
       (i) disclose any financial interests in, or financial 
     relationships with, applicants for or recipients of awards 
     under this subsection, including those of his or her spouse 
     or minor child, unless such relationships or interests would 
     be considered to be remote or inconsequential; and
       (ii) recuse himself or herself from any funding decision 
     for projects in which he or she has a personal financial 
     interest.
       (B) Disqualification and revocation.--The Secretary may 
     disqualify an application or revoke allowances distributed to 
     the Hub or awards provided under this subsection, if 
     cognizant officials of the Hub fail to comply with procedures 
     required under subparagraph (A).
       (f) Distribution of Allowances to Energy Innovation Hubs.--
       (1) Distribution of allowances.--Not later than September 
     30 of 2011 and each calendar year thereafter through 2049, 
     the Secretary shall, in accordance with the requirements of 
     this section, distribute to eligible consortia allowances 
     allocated for the following vintage year under section 
     782(h)(1) of the Clean Air Act (as added by section 321 of 
     this Act). Not less than 10 percent and not more than 30 
     percent of the allowances available for distribution in any 
     given year shall be distributed to support any individual Hub 
     under this section.
       (2) Selection and schedule.--Allowances to support the 
     establishment of a Hub shall be distributed to eligible 
     consortia (as defined in subsection (d)) selected through a 
     competitive process. Not later than 120 days after the date 
     of enactment of this Act, the Secretary shall solicit 
     proposals from eligible consortia to establish Hubs, which 
     shall be submitted not later than 180 days after the date of 
     enactment of this Act. The Secretary shall select the program 
     consortia not later than 270 days after the date of enactment 
     of this Act. For at least 3 awards to consortia under this 
     section, the Secretary shall give special consideration to 
     applications in which 1 or more of the institutions under 
     subsection (d)(1)(A) are 1890 Land Grant Institutions (as 
     defined in section 2 of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7061)), 
     Predominantly Black Institutions (as defined in section 318 
     of the Higher Education Act of 1965 (20 U.S.C. 1059e)), 
     Tribal Colleges or Universities (as defined in section 316(b) 
     of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)), or 
     Hispanic Serving Institutions (as defined in section 318 of 
     the Higher Education Act of 1965 (20 U.S.C. 1059e)).
       (3) Amount and term of awards.--For each Hub selected to 
     receive an award under this subsection, the Secretary shall 
     define a quantity of allowances that shall be distributed to 
     such Hub each year for an initial period not to exceed 5 
     years. The Secretary may extend the term of such award by up 
     to 5 additional years, and a Hub may compete to receive an 
     increase in the quantity of allowances per year that it shall 
     receive during any such extension. A Hub shall be eligible to 
     compete for a new award after the expiration of the term of 
     any award, including any extension of such term, under this 
     subsection.
       (4) Use of allowances.--Allowances distributed under this 
     section shall be used exclusively to support project awards 
     pursuant to subsection (e)(1) and (2), provided that a Hub 
     may use not more than 10 percent of the value of such 
     allowances for its administrative expenses related to making 
     such awards. Allowances distributed under this section shall 
     not be used for construction of new buildings or facilities 
     for Hubs, and construction of new buildings or facilities 
     shall not be considered as part of the non-Federal share of a 
     cost sharing agreement under this section.
       (5) Audit.--Each Hub shall conduct, in accordance with such 
     requirements as the Secretary may prescribe, an annual audit 
     to determine the extent to which allowances distributed to 
     the Hub under this subsection, and awards under subsection 
     (e), have been utilized in a manner consistent with this 
     section. The auditor shall transmit a report of the results 
     of the audit to the Secretary and to the Government 
     Accountability Office. The Secretary shall include such 
     report in an annual report to Congress, along with a plan to 
     remedy any deficiencies cited in the report. The Government 
     Accountability Office may review such audits as appropriate 
     and shall have full access to the books, records, and 
     personnel of the Hub to ensure that allowances distributed to 
     the Hub under this

[[Page 16543]]

     subsection, and awards made under subsection (e), have been 
     utilized in a manner consistent with this section.
       (6) Revocation of allowances.--The Secretary shall have 
     authority to review awards made under this subsection and to 
     revoke such awards if the Secretary determines that a Hub has 
     used the award in a manner not consistent with the 
     requirements of this section.

     SEC. 172. ADVANCED ENERGY RESEARCH.

       (a) Definitions.--For purposes of this section:
       (1) Allowance.--The term ``allowance'' means an emission 
     allowance established under section 721 of the Clean Air Act 
     (as added by section 311 of this Act).
       (2) Director.--The term ``Director'' means Director of the 
     Advanced Research Projects Agency-Energy.
       (b) In General.--Not later than September 30 of 2011 and 
     each calendar year thereafter through 2049, the Director 
     shall distribute allowances allocated for the following 
     vintage year under section 782(h)(2) of the Clean Air Act (as 
     added by section 321 of this Act). Such allowances shall be 
     distributed on a competitive basis to institutions of higher 
     education, companies, research foundations, trade and 
     industry research collaborations, or consortia of such 
     entities, or other appropriate research and development 
     entities to achieve the goals of the Advanced Research 
     Projects Agency-Energy (as described in section 5012(c) of 
     the America COMPETES Act) through targeted acceleration of--
       (1) novel early-stage energy research with possible 
     technology applications;
       (2) development of techniques, processes, and technologies, 
     and related testing and evaluation;
       (3) development of manufacturing processes for 
     technologies; and
       (4) demonstration and coordination with nongovernmental 
     entities for commercial applications of technologies and 
     research applications.
       (c) Responsibilities.--The Director shall be responsible 
     for assessing the success of programs and terminating 
     programs carried out under this section that are not 
     achieving the goals of the programs, consistent with 
     5012(e)(2) and (4) of the America COMPETES Act. The Director 
     shall designate program managers whose responsibilities are 
     consistent with 5012(f)(1)(B) of the America COMPETES Act. 
     The Director's reporting and coordination requirements 
     established through 5012(g) and (h) of the America COMPETES 
     Act shall apply to activities funded through this section.
       (d) Supplement Not Supplant.--Assistance provided under 
     this section shall be used to supplement, and not to 
     supplant, any other Federal resources available to carry out 
     activities described in this section.

     SEC. 173. BUILDING ASSESSMENT CENTERS.

       (a) In General.--The Secretary of Energy (in this section 
     referred to as the ``Secretary'') shall provide funding to 
     institutions of higher education for Building Assessment 
     Centers to--
       (1) identify opportunities for optimizing energy efficiency 
     and environmental performance in existing buildings;
       (2) promote high-efficiency building construction 
     techniques and materials options;
       (3) promote applications of emerging concepts and 
     technologies in commercial and institutional buildings;
       (4) train engineers, architects, building scientists, and 
     building technicians in energy-efficient design and 
     operation;
       (5) assist local community colleges, trade schools, 
     registered apprenticeship programs and other accredited 
     training programs in training building technicians;
       (6) promote research and development for the use of 
     alternative energy sources to supply heat and power, for 
     buildings, particularly energy-intensive buildings; and
       (7) coordinate with and assist State-accredited technical 
     training centers and community colleges, while ensuring 
     appropriate services to all regions of the United States.
       (b) Coordination With Regional Centers for Energy and 
     Environmental Knowledge and Outreach.--A Building Assessment 
     Center may serve as a Center for Energy and Environmental 
     Knowledge and Outreach established pursuant to section 174.
       (c) Coordination and Duplication.--The Secretary shall 
     coordinate efforts under this section with other programs of 
     the Department of Energy and other Federal agencies to avoid 
     duplication of effort.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $50,000,000 for fiscal year 2010 and each fiscal year 
     thereafter.

     SEC. 174. CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND 
                   OUTREACH.

       (a) Regional Centers for Energy and Environmental Knowledge 
     and Outreach.--
       (1) Establishment.--The Secretary shall establish not more 
     than 10 regional Centers for Energy and Environmental 
     Knowledge and Outreach at institutions of higher education to 
     coordinate with and advise industrial research and assessment 
     centers, Building Assessment Centers, and Clean Energy 
     Application Centers located in the region of such Center for 
     Energy and Environmental Knowledge and Outreach.
       (2) Technical assistance programs.--Each Center for Energy 
     and Environmental Knowledge and Outreach shall consist of at 
     least one, new or existing, high performing, of the 
     following:
       (A) An industrial research and assessment center.
       (B) A Clean Energy Application Center.
       (C) A Building Assessment Center.
       (3) Selection criteria.--The Secretary shall select Centers 
     for Energy and Environmental Knowledge and Outreach through a 
     competitive process, based on the following:
       (A) Identification of the highest performing industrial 
     research and assessment centers, Clean Energy Application 
     Centers, and Building Assessment Centers.
       (B) The degree to which an institution of higher education 
     maintains credibility among regional private sector 
     organizations such as trade associations, engineering 
     associations, and environmental organizations.
       (C) The degree to which an institution of higher education 
     is providing or has provided technical assistance, academic 
     leadership, and market leadership in the energy arena in a 
     manner that is consistent with the areas of focus of 
     industrial research and assessment centers, Clean Energy 
     Application Centers, and Building Assessment Centers.
       (D) The presence of an additional industrial research and 
     assessment center, Clean Energy Application Center, or 
     Building Assessment Center at the institution of higher 
     education.
       (4) Geographic diversity.--In selecting Centers for Energy 
     and Environmental Knowledge and Outreach under this 
     subsection, the Secretary shall ensure such Centers are 
     distributed geographically in a relatively uniform manner to 
     ensure all regions of the Nation are represented.
       (5) Regional leadership.--Each Center for Energy and 
     Environmental Knowledge and Outreach shall, to the extent 
     possible, provide leadership to all other industrial research 
     and assessment centers, Clean Energy Application Centers, and 
     Building Assessment Centers located in the Center's 
     geographic region, as determined by the Secretary. Such 
     leadership shall include--
       (A) developing regional goals specific to the purview of 
     the industrial research and assessment centers, Clean Energy 
     Application Centers, and Building Assessment Centers 
     programs;
       (B) developing regionally specific technical resources; and
       (C) outreach to interested parties in the region to inform 
     them of the information, resources, and services available 
     through the associated industrial research and assessment 
     centers, Clean Energy Application Centers, and Building 
     Assessment Centers.
       (6) Further coordination.--To increase the value and 
     capabilities of the regionally associated industrial research 
     and assessment centers, Clean Energy Application Centers, and 
     Building Assessment Centers programs, Centers for Energy and 
     Environmental Knowledge and Outreach shall--
       (A) coordinate with Manufacturing Extension Partnership 
     Centers of the National Institute of Science and Technology;
       (B) coordinate with the relevant programs in the Department 
     of Energy, including the Building Technology Program and 
     Industrial Technologies Program;
       (C) increase partnerships with the National Laboratories of 
     the Department of Energy to leverage the expertise and 
     technologies of the National Laboratories to achieve the 
     goals of the industrial research and assessment centers, 
     Clean Energy Application Centers, and Building Assessment 
     Centers;
       (D) work with relevant municipal, county, and State 
     economic development entities to leverage relevant financial 
     incentives for capital investment and other policy tools for 
     the protection and growth of local business and industry;
       (E) partner with local professional and private trade 
     associations and business development interests to leverage 
     existing knowledge of local business challenges and 
     opportunities;
       (F) work with energy utilities and other administrators of 
     publicly funded energy programs to leverage existing energy 
     efficiency and clean energy programs;
       (G) identify opportunities for reducing greenhouse gas 
     emissions; and
       (H) promote sustainable business practices for those served 
     by the industrial research and assessment centers, Clean 
     Energy Application Centers, and Building Assessment Centers.
       (7) Workforce training.--
       (A) In general.--The Secretary shall require each Center 
     for Energy and Environmental Knowledge and Outreach to 
     establish or maintain an internship program for the region of 
     such Center, designed to encourage students who perform 
     energy assessments to continue working with a particular 
     company, building, or facility to help implement the 
     recommendations contained in any such assessment provided to 
     such company, building, or facility. Each Center for Energy 
     and Environmental Knowledge and Outreach shall act as 
     internship coordinator to help match students to available 
     opportunities.
       (B) Federal share.--The Federal share of the cost of 
     carrying out internship programs described under subparagraph 
     (A) shall be 50 percent.

[[Page 16544]]

       (C) Funding.--Subject to the availability of 
     appropriations, of the funds made available to carry out this 
     subsection, the Secretary shall use to carry out this 
     paragraph not less than $5,000,000 for fiscal year 2010 and 
     each fiscal year thereafter.
       (8) Small business loans.--The Administrator of the Small 
     Business Administration shall, to the maximum practicable, 
     expedite consideration of applications from eligible small 
     business concerns for loans under the Small Business Act (15 
     U.S.C. 631 et seq.) for loans to implement recommendations of 
     any industrial research and assessment center, Clean Energy 
     Application Center, or Building Assessment Center.
       (9) Definitions.--In this subsection:
       (A) Industrial research and assessment center.--The term 
     ``industrial research and assessment center'' means a center 
     established or maintained pursuant to section 452(e) of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17111(e)).
       (B) Clean energy application center.--The term ``Clean 
     Energy Application Center'' means a center redesignated and 
     described section under section 375 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6345).
       (C) Building assessment center.--The term ``Building 
     Assessment Center'' means an institution of higher education-
     based center established pursuant to section 173.
       (D) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (10) Funding.--There are authorized to be appropriated to 
     the Secretary to carry out this subsection $10,000,000 for 
     fiscal year 2010 and each fiscal year thereafter. Subject to 
     the availability of appropriations, of the funds made 
     available to carry out this subsection, the Secretary shall 
     provide to each Center for Energy and Environmental Knowledge 
     and Outreach not less than $500,000 for fiscal year 2010 and 
     each fiscal year thereafter.
       (b) Integration of Other Technical Assistance Programs.--
       (1) Clean energy application centers.--Section 375 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6345) is 
     amended--
       (A) by redesignating subsection (f) as subsection (g); and
       (B) by adding after subsection (e) the following new 
     subsection:
       ``(f) Coordination With Centers for Energy and 
     Environmental Knowledge and Outreach.--A Clean Energy 
     Application Center may serve as a Center for Energy and 
     Environmental Knowledge and Outreach established pursuant to 
     section 174 of the American Clean Energy and Security Act of 
     2009.''.
       (2) Industrial research and assessment centers.--Section 
     452(e) of the Energy Independence and Security Act of 2007 
     (42 U.S.C. 17111(e)) is amended--
       (A) by striking ``The Secretary'' and all that follows 
     through ``shall be--'' and inserting the following:
       ``(1) In general.--The Secretary shall provide funding to 
     institution of higher education-based industrial research and 
     assessment centers, whose purposes shall be--'';
       (B) by redesignating paragraphs (1) through (5) as 
     subparagraphs (A) through (E), respectively (and by moving 
     the margins of such subparagraphs 2 ems to the right); and
       (C) by adding at the end the following new paragraph:
       ``(2) Coordination with centers for energy and 
     environmental knowledge and outreach.--An industrial research 
     and assessment center may serve as a Center for Energy and 
     Environmental Knowledge and Outreach established pursuant to 
     section 174 of the American Clean Energy and Security Act of 
     2009.''.
       (c) Additional Funding for Clean Energy Application 
     Centers.--Subsection (g) of section 375 of the Energy Policy 
     and Conservation Act (42 U.S.C. 6345(f)), as redesignated by 
     subsection (b)(1) of this section, is amended by striking 
     ``$10,000,000 for each of fiscal years 2008 through 2012'' 
     and inserting ``$30,000,000 for fiscal year 2010 and each 
     fiscal year thereafter''.

     SEC. 175. HIGH EFFICIENCY GAS TURBINE RESEARCH, DEVELOPMENT, 
                   AND DEMONSTRATION.

       (a) In General.--The Secretary of Energy shall carry out a 
     multiyear, multiphase program of research, development, and 
     technology demonstration to improve the efficiency of gas 
     turbines used in combined cycle power generation systems and 
     to identify the technologies that ultimately will lead to gas 
     turbine combined cycle efficiency of 65 percent.
       (b) Program Elements.--The program under this section 
     shall--
       (1) support first-of-a-kind engineering and detailed gas 
     turbine design for utility-scale electric power generation, 
     including--
       (A) high temperature materials, including superalloys, 
     coatings, and ceramics;
       (B) improved heat transfer capability;
       (C) manufacturing technology required to construct complex 
     three-dimensional geometry parts with improved aerodynamic 
     capability;
       (D) combustion technology to produce higher firing 
     temperature while lowering nitrogen oxide and carbon monoxide 
     emissions per unit of output;
       (E) advanced controls and systems integration;
       (F) advanced high performance compressor technology; and
       (G) validation facilities for the testing of components and 
     subsystems;
       (2) include technology demonstration through component 
     testing, subscale testing, and full scale testing in existing 
     fleets;
       (3) include field demonstrations of the developed 
     technology elements so as to demonstrate technical and 
     economic feasibility; and
       (4) assess overall combined cycle system performance.
       (c) Program Goals.--The goals of the multiphase program 
     established under subsection (a) shall be--
       (1) in phase I--
       (A) to develop the conceptual design of advanced high 
     efficiency gas turbines that can achieve at least 62 percent 
     combined cycle efficiency on a lower heating value basis; and
       (B) to develop and demonstrate the technology required for 
     advanced high efficiency gas turbines that can achieve at 
     least 62 percent combined cycle efficiency on a lower heating 
     value basis; and
       (2) in phase II, to develop the conceptual design for 
     advanced high efficiency gas turbines that can achieve at 
     least 65 percent combined cycle efficiency on a lower heating 
     value basis.
       (d) Proposals.--Within 180 days after the date of enactment 
     of this section, the Secretary shall solicit proposals for 
     conducting activities under this section. In selecting 
     proposals, the Secretary shall emphasize--
       (1) the extent to which the proposal will stimulate the 
     creation or increased retention of jobs in the United States; 
     and
       (2) the extent to which the proposal will promote and 
     enhance United States technology leadership.
       (e) Cost Sharing.--Section 988 of the Energy Policy Act of 
     2005 (42 U.S.C. 16352) shall apply to an award of financial 
     assistance made under this section.
       (f) Limits on Participation.--The limits on participation 
     applicable under section 999E of the Energy Policy Act of 
     2005 (42 U.S.C. 16375) shall apply to financial assistance 
     awarded under this section.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     section $65,000,000 for each of fiscal years 2011 through 
     2014.

             Subtitle I--Nuclear and Advanced Technologies

     SEC. 181. REVISIONS TO LOAN GUARANTEE PROGRAM AUTHORITY.

       (a) Definition of Conditional Commitment.--Section 1701 of 
     the Energy Policy Act of 2005 (42 U.S.C. 16511), as amended 
     by section 130(a) of this Act, is amended by adding after 
     paragraph (7) the following:
       ``(8) Conditional commitment.--The term `conditional 
     commitment' means a final term sheet negotiated between the 
     Secretary and a project sponsor or sponsors, which term sheet 
     shall be binding on both parties and become a final loan 
     guarantee agreement if all conditions precedent established 
     in the term sheet, which shall include the acquisition of all 
     necessary permits and licenses, are satisfied.''.
       (b) Specific Appropriation or Contribution.--Section 1702 
     of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended 
     by striking subsection (b) and inserting the following:
       ``(b) Specific Appropriation or Contribution.--
       ``(1) In general.--No guarantee shall be made unless--
       ``(A) an appropriation for the cost has been made;
       ``(B) the Secretary has received from the borrower a 
     payment in full for the cost of the obligation and deposited 
     the payment into the Treasury; or
       ``(C) a combination of appropriations or payments from the 
     borrower has been made sufficient to cover the cost of the 
     obligation.
       ``(2) Limitation.--The source of payments received from a 
     borrower under paragraph (1)(B) shall not be a loan or other 
     debt obligation that is made or guaranteed by the Federal 
     Government.''.
       (c) Fees.--Section 1702(h) of the Energy Policy Act of 2005 
     (42 U.S.C. 16512(h)) is amended by striking paragraph (2) and 
     inserting the following:
       ``(2) Availability.--Fees collected under this subsection 
     shall--
       ``(A) be deposited by the Secretary into a special fund in 
     the Treasury to be known as the `Incentives For Innovative 
     Technologies Fund'; and
       ``(B) remain available to the Secretary for expenditure, 
     without further appropriation or fiscal year limitation, for 
     administrative expenses incurred in carrying out this 
     title.''.
       (d) Wage Rate Requirements.--Section 1702 of the Energy 
     Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at 
     the end the following new subsection:
       ``(k) Wage Rate Requirements.--No loan guarantee shall be 
     made under this title unless the borrower has provided to the 
     Secretary reasonable assurances that all laborers and 
     mechanics employed by contractors and subcontractors in the 
     performance of construction work financed in whole or in part 
     by the guaranteed loan will be paid wages at rates not less 
     than those prevailing

[[Page 16545]]

     on projects of a character similar to the contract work in 
     the civil subdivision of the State in which the contract work 
     is to be performed as determined by the Secretary of Labor in 
     accordance with subchapter IV of chapter 31 of part A of 
     subtitle II of title 40, United States Code. With respect to 
     the labor standards specified in this subsection, the 
     Secretary of Labor shall have the authority and functions set 
     forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 
     1267; 5 U.S.C. App.) and section 3145 of title 40, United 
     States Code.''.
       (e) Subrogation.--Section 1702(g)(2) of the Energy Policy 
     Act of 2005 (42 U.S.C. 16512(g)(2)) is amended by striking 
     subparagraphs (B) and (C) and inserting the following:
       ``(B) Superiority of rights.--Except as provided in 
     subparagraph (C), the rights of the Secretary, with respect 
     to any property acquired pursuant to a guarantee or related 
     agreements, shall be superior to the rights of any other 
     person with respect to the property.
       ``(C) Terms and conditions.--A guarantee agreement shall 
     include such detailed terms and conditions as the Secretary 
     determines appropriate to--
       ``(i) protect the financial interests of the United States 
     in the case of default;
       ``(ii) have available all the patents and technology 
     necessary for any person selected, including the Secretary, 
     to complete and operate the project;
       ``(iii) provide for sharing the proceeds received from the 
     sale of project assets with other creditors or control the 
     disposition of project assets if necessary to protect the 
     financial interests of the United States in the case of 
     default; and
       ``(iv) provide such lien priority in project assets as 
     necessary to protect the financial interests of the United 
     States in the case of a default.''.

     SEC. 182. PURPOSE.

       The purpose of sections 183 through 189 of this subtitle is 
     to promote the domestic development and deployment of clean 
     energy technologies required for the 21st century through the 
     establishment of a self-sustaining Clean Energy Deployment 
     Administration that will provide for an attractive investment 
     environment through partnership with and support of the 
     private capital market in order to promote access to 
     affordable financing for accelerated and widespread 
     deployment of--
       (1) clean energy technologies;
       (2) advanced or enabling energy infrastructure 
     technologies;
       (3) energy efficiency technologies in residential, 
     commercial, and industrial applications, including end-use 
     efficiency in buildings; and
       (4) manufacturing technologies for any of the technologies 
     or applications described in this section.

     SEC. 183. DEFINITIONS.

       In this subtitle:
       (1) Administration.--The term ``Administration'' means the 
     Clean Energy Deployment Administration established by section 
     186.
       (2) Advisory council.--The term ``Advisory Council'' means 
     the Energy Technology Advisory Council of the Administration.
       (3) Breakthrough technology.--The term ``breakthrough 
     technology'' means a clean energy technology that--
       (A) presents a significant opportunity to advance the goals 
     developed under section 185, as assessed under the 
     methodology established by the Advisory Council; but
       (B) has generally not been considered a commercially ready 
     technology as a result of high perceived technology risk or 
     other similar factors.
       (4) Clean energy technology.--The term ``clean energy 
     technology'' means a technology related to the production, 
     use, transmission, storage, control, or conservation of 
     energy--
       (A) that will contribute to a stabilization of atmospheric 
     greenhouse gas concentrations thorough reduction, avoidance, 
     or sequestration of energy-related emissions and--
       (i) reduce the need for additional energy supplies by using 
     existing energy supplies with greater efficiency or by 
     transmitting, distributing, or transporting energy with 
     greater effectiveness through the infrastructure of the 
     United States; or
       (ii) diversify the sources of energy supply of the United 
     States to strengthen energy security and to increase supplies 
     with a favorable balance of environmental effects if the 
     entire technology system is considered; and
       (B) for which, as determined by the Administrator, 
     insufficient commercial lending is available at affordable 
     rates to allow for widespread deployment.
       (5) Cost.--The term ``cost'' has the meaning given the term 
     in section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a).
       (6) Direct loan.--The term ``direct loan'' has the meaning 
     given the term in section 502 of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661a).
       (7) Fund.--The term ``Fund'' means the Clean Energy 
     Investment Fund established by section 184(a).
       (8) Green bonds.--The term ``Green Bonds'' means bonds 
     issued pursuant to section 184.
       (8) Loan guarantee.--The term ``loan guarantee'' has the 
     meaning given the term in section 502 of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661a).
       (9) National laboratory.--The term ``National Laboratory'' 
     has the meaning given the term in section 2 of the Energy 
     Policy Act of 2005 (42 U.S.C. 15801).
       (10) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (11) 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.
       (12) Technology risk.--The term ``technology risk'' means 
     the risks during construction or operation associated with 
     the design, development, and deployment of clean energy 
     technologies (including the cost, schedule, performance, 
     reliability and maintenance, and accounting for the perceived 
     risk), from the perspective of commercial lenders, that may 
     be increased as a result of the absence of adequate 
     historical construction, operating, or performance data from 
     commercial applications of the technology.

     SEC. 184. CLEAN ENERGY INVESTMENT FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a revolving fund, to be known as the 
     ``Clean Energy Investment Fund'', consisting of--
       (1) such amounts as are deposited in the Fund under this 
     subtitle; and
       (2) such sums as may be appropriated to supplement the 
     Fund.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Fund such sums as are necessary to 
     carry out this subtitle.
       (c) Expenditures From Fund.--
       (1) In general.--Amounts in the Fund shall be available to 
     the Administrator of the Administration for obligation 
     without fiscal year limitation, to remain available until 
     expended.
       (2) Administrative expenses.--
       (A) Fees.--Fees collected for administrative expenses shall 
     be available without limitation to cover applicable expenses.
       (B) Fund.--To the extent that administrative expenses are 
     not reimbursed through fees, an amount not to exceed 1.5 
     percent of the amounts in the Fund as of the beginning of 
     each fiscal year shall be available to pay the administrative 
     expenses for the fiscal year necessary to carry out this 
     subtitle.
       (d) Transfers of Amounts.--
       (1) In general.--The amounts required to be transferred to 
     the Fund under this section shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (2) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (3) Cash flows.--Cash flows associated with costs of the 
     Fund described in section 502(5)(B) of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661a(5)(B)) shall be transferred 
     to appropriate credit accounts.
       (e) Green Bonds.--
       (1) Initial capitalization.--The Secretary of the Treasury 
     shall issue Green Bonds in the amount of $7,500,000,000 on 
     the credit of the United States to acquire capital stock of 
     the Administration. Stock certificates evidencing ownership 
     in the Administration shall be issued by the Administration 
     to the Secretary of the Treasury, to the extent of payments 
     made for the capital stock of the Administration.
       (2) Denominations and maturity.--Green Bonds shall be in 
     such forms and denominations, and shall mature within such 
     periods, as determined by the Secretary of the Treasury.
       (3) Interest.--Green Bonds shall bear interest at a rate 
     not less than the current average yield on outstanding market 
     obligations of the United States of comparable maturity 
     during the month preceding the issuance of the obligation as 
     determined by the Secretary of the Treasury.
       (4) Lawful investments.--Green Bonds shall be lawful 
     investments, and may be accepted as security for all 
     fiduciary, trust, and public funds, the investment or deposit 
     of which shall be under the authority or control of the 
     United States or any officer or officers thereof.

     SEC. 185. ENERGY TECHNOLOGY DEPLOYMENT GOALS.

       (a) Goals.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, after consultation with 
     the Advisory Council, shall develop and publish for review 
     and comment in the Federal Register recommended near-, 
     medium-, and long-term goals (including numerical performance 
     targets at appropriate intervals to measure progress toward 
     those goals) for the deployment of clean energy technologies 
     through the credit support programs established by section 
     187 to promote--
       (1) sufficient electric generating capacity using clean 
     energy technologies to meet the energy needs of the United 
     States;
       (2) clean energy technologies in vehicles and fuels that 
     will substantially reduce the reliance of the United States 
     on foreign

[[Page 16546]]

     sources of energy and insulate consumers from the volatility 
     of world energy markets;
       (3) a domestic commercialization and manufacturing capacity 
     that will establish the United States as a world leader in 
     clean energy technologies across multiple sectors;
       (4) installation of sufficient infrastructure to allow for 
     the cost-effective deployment of clean energy technologies 
     appropriate to each region of the United States;
       (5) the transformation of the building stock of the United 
     States to zero net energy consumption;
       (6) the recovery, use, and prevention of waste energy;
       (7) domestic manufacturing of clean energy technologies on 
     a scale that is sufficient to achieve price parity with 
     conventional energy sources;
       (8) domestic production of commodities and materials (such 
     as steel, chemicals, polymers, and cement) using clean energy 
     technologies so that the United States will become a world 
     leader in environmentally sustainable production of the 
     commodities and materials;
       (9) a robust, efficient, and interactive electricity 
     transmission grid that will allow for the incorporation of 
     clean energy technologies, distributed generation, and 
     demand-response in each regional electric grid;
       (10) sufficient availability of financial products to allow 
     owners and users of residential, retail, commercial, and 
     industrial buildings to make energy efficiency and 
     distributed generation technology investments with reasonable 
     payback periods; and
       (11) sufficient availability of financial services and 
     support to small businesses developing and deploying clean 
     energy technologies through partnerships with private 
     entities that have relevant creidt expertise; and
       (12) such other goals as the Secretary, in consultation 
     with the Advisory Council, determines to be consistent with 
     the purpose stated in section 182.
       (b) Revisions.--The Secretary shall revise the goals 
     established under subsection (a), from time to time as 
     appropriate, to account for advances in technology and 
     changes in energy policy.

     SEC. 186. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.

       (a) Establishment.--
       (1) Establishment of corporation.--There is established a 
     corporation to be known as the Clean Energy Deployment 
     Administration that shall be wholly owned by the United 
     States.
       (2) Independent corporation.--The Administration shall be 
     an independent corporation. Neither the Administration nor 
     any of its functions, powers, or duties shall be transferred 
     to or consolidated with any other department, agency, or 
     corporation of the Government unless the Congress provides 
     otherwise.
       (3) Charter.--The Administration shall be chartered for 20 
     years from the date of enactment of this section.
       (4) Status.--
       (A) Inspector general.--Section 12 of the Inspector General 
     Act of 1978 (5 U.S.C. App.) is amended--
       (i) in paragraph (1), by inserting ``the Administrator of 
     the Clean Energy Deployment Administration;'' after ``Export-
     Import Bank;''; and
       (ii) in paragraph (2), by inserting ``the Clean Energy 
     Deployment Administration,'' after ``Export-Import Bank,''.
       (3) Offices.--
       (A) Principal office.--The Administration shall--
       (i) maintain the principal office of the Administration in 
     the national capital region; and
       (ii) for purposes of venue in civil actions, be considered 
     to be a resident of the District of Columbia.
       (B) Other offices.--The Administration may establish other 
     offices in such other places as the Administration considers 
     necessary or appropriate for the conduct of the business of 
     the Administration.
       (b) Administrator.--
       (1) In general.--The Administrator of the Administration 
     shall be--
       (A) appointed by the President, with the advice and consent 
     of the Senate, for a 5-year term; and
       (B) compensated at the prevailing rate for compensation for 
     similar positions in industry.
       (2) Duties.--The Administrator of the Administration 
     shall--
       (A) serve as the Chief Executive Officer of the 
     Administration and Chairman of the Board;
       (B) ensure that--
       (i) the Administration operates in a safe and sound manner, 
     including maintenance of adequate capital and internal 
     controls (consistent with section 404 of the Sarbanes-Oxley 
     Act of 2002 (15 U.S.C. 7262));
       (ii) the operations and activities of the Administration 
     foster liquid, efficient, competitive, and resilient energy 
     and energy efficiency finance markets;
       (iii) the Administration carries out the purpose stated in 
     section 182 only through activities that are authorized under 
     and consistent with sections 182 through 189; and
       (iv) the activities of the Administration and the manner in 
     which the Administration is operated are consistent with the 
     public interest;
       (C) develop policies and procedures for the Administration 
     that will--
       (i) promote a self-sustaining portfolio of investments that 
     will maximize the value of investments to effectively promote 
     clean energy technologies;
       (ii) promote transparency and openness in Administration 
     operations;
       (iii) afford the Administration with sufficient flexibility 
     to meet the purpose stated in section 182; and
       (iv) provide for the efficient processing of applications; 
     and
       (D) with the concurrence of the Board, set expected loss 
     reserves for the support provided by the Administration 
     consistent with section 187(c).
       (c) Board of Directors.--
       (1) In general.--The Board of Directors of the 
     Administration shall consist of--
       (A) the Secretary or the designee of the Secretary, who 
     shall serve as an ex-officio member of the Board of 
     Directors;
       (B) the Secretary of the Treasury or the designee of the 
     Secretary, who shall serve as an ex-officio member of the 
     Board of Directors;
       (C) the Secretary of the Interior or the designee of the 
     Secretary, who shall serve as an ex-officio member of the 
     Board of Directors;
       (D) the Secretary of Agriculture or the designee of the 
     Secretary, who shall serve as an ex officio member of the 
     Board of Directors;
       (E) the Administrator of the Administration, who shall 
     serve as the Chairman of the Board of Directors; and
       (F) 4 additional members who shall--
       (i) be appointed by the President, with the advice and 
     consent of the Senate, for staggered 5-year terms; and
       (ii) have experience in banking, financial services, 
     technology assessment, energy regulation, or risk management, 
     including individuals with substantial experience in the 
     development of energy projects, the electricity generation 
     sector, the transportation sector, the manufacturing sector, 
     and the energy efficiency sector.
       (2) Duties.--The Board of Directors shall--
       (A) oversee the operations of the Administration and ensure 
     industry best practices are followed in all financial 
     transactions involving the Administration;
       (B) consult with the Administrator of the Administration on 
     the general policies and procedures of the Administration to 
     ensure the interests of the taxpayers are protected;
       (C) ensure the portfolio of investments are consistent with 
     purpose stated in section 182 and with the long-term 
     financial stability of the Administration;
       (D) ensure that the operations and activities of the 
     Administration are consistent with the development of a 
     robust private sector that can provide commercial loans or 
     financing products; and
       (E) not serve on a full-time basis, except that the Board 
     of Directors shall meet at least quarterly to review, as 
     appropriate, applications for credit support and set policies 
     and procedures as necessary.
       (3) Removal.--An appointed member of the Board of Directors 
     may be removed from office by the President for good cause.
       (4) Vacancies.--An appointed seat on the Board of Directors 
     that becomes vacant shall be filled by appointment by the 
     President, but only for the unexpired portion of the term of 
     the vacating member.
       (5) Compensation of members.--An appointed member of the 
     Board of Directors shall be compensated at the prevailing 
     rate for compensation for similar positions in industry.
       (d) Energy Technology Advisory Council.--
       (1) In general.--The Administration shall have an Energy 
     Technology Advisory Council consisting of 8 members selected 
     by the Board of Directors of the Administration.
       (2) Qualifications.--The members of the Advisory Council 
     shall--
       (A) have clean energy project development, clean energy 
     finance, commercial, and/or relevant scientific expertise; 
     and
       (B) include representatives of--
       (i) the academic community;
       (ii) the private research community;
       (iii) National Laboratories;
       (iv) the technology or project development community; and
       (v) the commercial energy financing and operations sector.
       (3) Duties.--The Advisory Council shall--
       (A) develop and publish for comment in the Federal Register 
     a methodology for assessment of clean energy technologies 
     that will allow the Administration to evaluate projects based 
     on the progress likely to be achieved per-dollar invested in 
     maximizing the attributes of the definition of clean energy 
     technology, taking into account the extent to which support 
     for a clean energy technology is likely to accrue subsequent 
     benefits that are attributable to a commercial scale 
     deployment taking place earlier than that which otherwise 
     would have occurred without the support; and
       (B) advise on the technological approaches that should be 
     supported by the Administration to meet the technology 
     deployment goals established by the Secretary pursuant to 
     section 185.
       (4) Term.--
       (A) In general.--Members of the Advisory Council shall have 
     5-year staggered terms, as

[[Page 16547]]

     determined by the Administrator of the Administration.
       (B) Reappointment.--A member of the Advisory Council may be 
     reappointed.
       (5) Compensation.--A member of the Advisory Council, who is 
     not otherwise compensated as a Federal employee, 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 Advisory Council.
       (e) Staff.--
       (1) In general.--The Administrator of the Administration, 
     in consultation with the Board of Directors, may--
       (A) appoint and terminate such officers, attorneys, 
     employees, and agents as are necessary to carry out this 
     subtitle; and
       (B) vest those personnel with such powers and duties as the 
     Administrator of the Administration may determine.
       (f) Conflicts of Interest.--No director, officer, attorney, 
     agent, or employee of the Administration shall in any manner, 
     directly or indirectly, participate in the deliberation upon, 
     or the determination of, any question affecting such 
     individual's personal interests, or the interests of any 
     corporation, partnership, or association in which such 
     individual is directly or indirectly personally interested.
       (g) Sunset.--
       (1) Expiration of charter.--The Administration shall 
     continue to exercise its functions until all obligations and 
     commitments of the Administration are discharged, even after 
     its charter has expired.
       (2) Prior obligations.--No provisions of this subsection 
     shall be construed as preventing the Administration from--
       (A) undertaking obligations prior to the date of the 
     expiration of its charter which mature subsequent to such 
     date;
       (B) assuming, prior to the date of the expiration of its 
     charter, liability as guarantor, endorser, or acceptor of 
     obligations which mature subsequent to such date; or
       (C) continuing as a corporation and exercising any of its 
     functions subsequent to the date of the expiration of its 
     charter for purposes of orderly liquidation, including the 
     administration of its assets and the collection of any 
     obligations held by the Administration.

     SEC. 187. DIRECT SUPPORT.

       (a) In General.--The Administration may issue direct loans, 
     letters of credit, and loan guarantees to deploy clean energy 
     technologies if the Administrator of the Administration has 
     determined that deployment of the technologies would benefit 
     or be accelerated by the support.
       (b) Eligibility Criteria.--In carrying out this section and 
     awarding credit support to projects, the Administrator of the 
     Administration shall account for--
       (1) how the technology rates based on an evaluation 
     methodology established by the Advisory Council;
       (2) how the project fits with the goals established under 
     section 185; and
       (3) the potential for the applicant to successfully 
     complete the project.
       (c) Risk.--
       (1) Expected loan loss reserve.--The Administrator of the 
     Administration shall establish an expected loan loss reserve 
     to account for estimated losses attributable to activities 
     under this section that is consistent with the purposes of--
       (A) developing breakthrough technologies to the point at 
     which technology risk is largely mitigated;
       (B) achieving widespread deployment and advancing the 
     commercial viability of clean energy technologies; and
       (C) advancing the goals established under section 185.
       (2) Initial expected loan loss reserve.--Until such time as 
     the Administrator of the Administration determines sufficient 
     data exist to establish an expected loan loss reserve that is 
     appropriate, the Administrator of the Administration shall 
     consider establishing an initial rate of 10 percent for the 
     portfolio of investments under this subtitle.
       (3) Portfolio investment approach.--The Administration 
     shall--
       (A) use a portfolio investment approach to mitigate risk 
     and diversify investments across technologies and ensure that 
     no particular technology is provided more than 30 percent of 
     the financial support available;
       (B) to the maximum extent practicable and consistent with 
     long-term self-sufficiency, weigh the portfolio of 
     investments in projects to advance the goals established 
     under section 185;
       (C) consistent with the expected loan loss reserve 
     established under this subsection, the purpose stated in 
     section 182, and section 186(b)(2)(B), provide the maximum 
     practicable percentage of support to promote breakthrough 
     technologies; and
       (D) give the highest priority to investments that promote 
     technologies that will achieve the maximum greenhouse gas 
     emission reductions within a reasonable period of time per 
     dollar invested and the earliest reductions in greenhouse gas 
     emissions.
       (4) Loss rate review.--
       (A) In general.--The Board of Directors shall review on an 
     annual basis the loss rates of the portfolio to determine the 
     adequacy of the reserves.
       (B) Report.--Not later than 90 days after the date of the 
     initiation of the review, the Administrator of the 
     Administration shall submit to the Committee on Energy and 
     Natural Resources and the Committee on Finance of the Senate, 
     and the Committee on Energy and Commerce and the Committee on 
     Ways and Means of the House of Representatives a report 
     describing the results of the review and any recommended 
     policy changes.
       (5) Federal cost share.--Direct loans, letters of credit 
     and loan guarantees by the Administration shall not exceed an 
     amount equal to 80 percent of the project cost of the 
     facility that is the subject of the loan, letter of credit or 
     loan guarantee, as estimated at the time at which the loan, 
     letter of credit or loan guarantee is issued.
       (d) Application Review.--
       (1) In general.--To the maximum extent practicable and 
     consistent with sound business practices, the Administration 
     shall seek to consolidate reviews of applications for credit 
     support under this subtitle such that final decisions on 
     applications can generally be issued not later than 180 days 
     after the date of submission of a completed application.
       (2) Environmental review.--In carrying out this subtitle, 
     the Administration shall, to the maximum extent practicable--
       (A) avoid duplicating efforts that have already been 
     undertaken by other agencies (including State agencies acting 
     under Federal programs); and
       (B) with the advice of the Council on Environmental Quality 
     and any other applicable agencies, use the administrative 
     records of similar reviews conducted throughout the executive 
     branch to develop the most expeditious review process 
     practicable.
       (e) Wage Rate Requirements.--
       (1) In general.--No credit support shall be issued under 
     this section unless the borrower has provided to the 
     Administrator of the Administration reasonable assurances 
     that all laborers and mechanics employed by contractors and 
     subcontractors in the performance of construction work 
     financed in whole or in part by the Administration will be 
     paid wages at rates not less than those prevailing on 
     projects of a character similar to the contract work in the 
     civil subdivision of the State in which the contract work is 
     to be performed as determined by the Secretary of Labor in 
     accordance with subchapter IV of chapter 31 of part A of 
     subtitle II of title 40, United States Code.
       (2) Labor standards.--With respect to the labor standards 
     specified in this subsection, the Secretary of Labor shall 
     have the authority and functions set forth in Reorganization 
     Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.
       (f) Limitations.--(1) The Administration shall not provide 
     direct support as defined under this section or indirect 
     support as defined under section 188 to an individual clean 
     energy technology project that obtained a loan guarantee 
     under title XVII of the Energy Policy Act of 2005.
       (2) No direct or indirect support provided by the 
     Administration may be used to pay any part of the cost of an 
     obligation or a loan guarantee under Title XVII of the Energy 
     Policy Act of 2005.

     SEC. 188. INDIRECT SUPPORT.

       (a) In General.--For the purpose of enhancing the 
     availability of private financing for clean energy technology 
     deployment, the Administration may--
       (1) provide credit support to portfolios of taxable debt 
     obligations originated by state, local, and private sector 
     entities that enable owners and users of buildings and 
     industrial facilities to--
       (A) significantly increase the energy efficiency of such 
     buildings or facilities; or
       (B) install systems that individually generate electricity 
     from renewable energy resources and have a capacity of no 
     more than 2 megawatts;
       (2) facilitate financing transactions in tax equity markets 
     and long-term purchasing of clean energy by state, local, and 
     non-governmental not-for-profit entities, to the degree and 
     extent that the Administration determines such financing 
     activity is appropriate and consistent with carrying out the 
     purposes described in Section 182 of this Act; and
       (3) provide credit support to portfolios of taxable debt 
     obligations originated by state, local, and private sector 
     entities that enable the deployment of energy storage 
     applications for electric drive vehicles, stationary 
     applications, and electricity transmission and distribution.
       (b) Definitions.--For purposes of the section:
       (1) Credit support.--The term ``credit support'' means--
       (A) direct loans, letters of credit, loan guarantees, and 
     insurance products; and
       (B) the purchase or commitment to purchase, or the sale or 
     commitment to sell, debt instruments (including subordinated 
     securities).
       (2) Renewable energy resource.--The term ``renewable energy 
     resource'' shall have the meaning given that term in section 
     610 of

[[Page 16548]]

     the Public Utility Regulatory Policies Act of 1978 (as added 
     by section 101 of this Act).
       (c) Transparency.--The Administration shall seek to foster 
     through its credit support activities--
       (1) the development and consistent application of standard 
     contractual terms, transparent underwriting standards and 
     consistent measurement and verification protocols, as 
     applicable; and
       (2) the creation of performance data that promotes 
     effective underwriting and risk management to support lending 
     markets and stimulate the development of private investment 
     markets.
       (d) Exempt Securities.--All securities insured or 
     guaranteed by the Administration shall, to the same extent as 
     securities that are direct obligations of or obligations 
     guaranteed as to the principal or interest by the United 
     States, be considered to be exempt securities within the 
     meaning of the laws administered by the Securities and 
     Exchange Commission.

     SEC. 189. FEDERAL CREDIT AUTHORITY.

       (a) Payments of Liabilities.--
       (1) In general.--Any payment made to discharge liabilities 
     arising from agreements under this subtitle shall be paid 
     exclusively out of the Fund or the associated credit account, 
     as appropriate.
       (2) Security.--Subject to paragraph (1), the full faith and 
     credit of the United States is pledged to the payment of all 
     obligations entered into by the Administration pursuant to 
     this subtitle.
       (b) Fees.--
       (1) In general.--Consistent with achieving the purpose 
     stated in section 182, the Administrator of the 
     Administration shall charge fees or collect compensation 
     generally in accordance with commercial rates.
       (2) Availability of fees.--All fees collected by the 
     Administration may be retained by the Administration and 
     placed in the Fund and may remain available to the 
     Administration, without further appropriation or fiscal year 
     limitation, for use in carrying out the purpose stated in 
     section 182.
       (3) Breakthrough technologies.--The Administration shall 
     charge the minimum amount in fees or compensation practicable 
     for breakthrough technologies, consistent with the long-term 
     viability of the Administration, unless the Administration 
     first determines that a higher charge will not impede the 
     development of the technology.
       (4) Alternative fee arrangements.--The Administration may 
     use such alternative arrangements (such as profit 
     participation, contingent fees, and other valuable contingent 
     interests) as the Administration considers appropriate to 
     compensate the Administration for the expenses of the 
     Administration and the risk inherent in the support of the 
     Administration.
       (c) Cost Transfer Authority.--Amounts collected by the 
     Administration for the cost of a loan or loan guarantee shall 
     be transferred by the Administration to the respective credit 
     accounts.

     SEC. 190. GENERAL PROVISIONS.

       (a) Immunity From Impairment, Limitation, or Restriction.--
       (1) In general.--All rights and remedies of the 
     Administration (including any rights and remedies of the 
     Administration on, under, or with respect to any mortgage or 
     any obligation secured by a mortgage) shall be immune from 
     impairment, limitation, or restriction by or under--
       (A) any law (other than a law enacted by Congress expressly 
     in limitation of this paragraph) that becomes effective after 
     the acquisition by the Administration of the subject or 
     property on, under, or with respect to which the right or 
     remedy arises or exists or would so arise or exist in the 
     absence of the law; or
       (B) any administrative or other action that becomes 
     effective after the acquisition.
       (2) State law.--The Administrator of the Administration may 
     conduct the business of the Administration without regard to 
     any qualification or law of any State relating to 
     incorporation.
       (b) Use of Other Agencies.--With the consent of a 
     department, establishment, or instrumentality (including any 
     field office), the Administration may--
       (1) use and act through any department, establishment, or 
     instrumentality; and
       (2) use, and pay compensation for, information, services, 
     facilities, and personnel of the department, establishment, 
     or instrumentality.
       (c) Financial Matters.--
       (1) Investments.--Funds of the Administration may be 
     invested in such investments as the Board of Directors may 
     prescribe. Earnings from such funds, other than fees 
     collected under section 189, may be spent by the 
     Administration only to such extent or in such amounts as are 
     provided in advance by appropriation Acts.
       (2) Fiscal agents.--Any Federal Reserve bank or any bank as 
     to which at the time of the designation of the bank by the 
     Administrator of the Administration there is outstanding a 
     designation by the Secretary of the Treasury as a general or 
     other depository of public money, may be designated by the 
     Administrator of the Administration as a depositary or 
     custodian or as a fiscal or other agent of the 
     Administration.
       (d) Periodic Reports.--Not later than 1 year after 
     commencement of operation of the Administration and at least 
     biannually thereafter, the Administrator of the 
     Administration shall submit to the Committee on Energy and 
     Natural Resources and the Committee on Finance of the Senate 
     and the Committee on Energy and Commerce and the Committee on 
     Ways and Means of the House of Representatives a report that 
     includes a description of--
       (1) the technologies supported by activities of the 
     Administration and how the activities advance the purpose 
     stated in section 182; and
       (2) the performance of the Administration on meeting the 
     goals established under section 185.
       (g) Audits by the Comptroller General.--
       (1) In general.--The programs, activities, receipts, 
     expenditures, and financial transactions of the 
     Administration shall be subject to audit by the Comptroller 
     General of the United States under such rules and regulations 
     as may be prescribed by the Comptroller General.
       (2) Access.--The representatives of the Government 
     Accountability Office shall--
       (A) have access to the personnel and to all books, 
     accounts, documents, records (including electronic records), 
     reports, files, and all other papers, automated data, things, 
     or property belonging to, under the control of, or in use by 
     the Administration, or any agent, representative, attorney, 
     advisor, or consultant retained by the Administration, and 
     necessary to facilitate the audit;
       (B) be afforded full facilities for verifying transactions 
     with the balances or securities held by depositories, fiscal 
     agents, and custodians;
       (C) be authorized to obtain and duplicate any such books, 
     accounts, documents, records, working papers, automated data 
     and files, or other information relevant to the audit without 
     cost to the Comptroller General; and
       (D) have the right of access of the Comptroller General to 
     such information pursuant to section 716(c) of title 31, 
     United States Code.
       (3) Assistance and cost.--
       (A) In general.--For the purpose of conducting an audit 
     under this subsection, the Comptroller General may, in the 
     discretion of the Comptroller General, employ by contract, 
     without regard to section 3709 of the Revised Statutes (41 
     U.S.C. 5), professional services of firms and organizations 
     of certified public accountants for temporary periods or for 
     special purposes.
       (B) Reimbursement.--
       (i) In general.--On the request of the Comptroller General, 
     the Administration shall reimburse the Government 
     Accountability Office for the full cost of any audit 
     conducted by the Comptroller General under this subsection.
       (ii) Crediting.--Such reimbursements shall--

       (I) be credited to the appropriation account entitled 
     ``Salaries and Expenses, Government Accountability Office'' 
     at the time at which the payment is received; and
       (II) remain available until expended.

       (h) Annual Independent Audits.--
       (1) In general.--The Administrator of the Administration 
     shall--
       (A) have an annual independent audit made of the financial 
     statements of the Administration by an independent public 
     accountant in accordance with generally accepted auditing 
     standards; and
       (B) submit to the Secretary and to the Committee on Energy 
     and Natural Resources and the Committee on Finance of the 
     Senate and the Committee on Energy and Commerce and the 
     Committee on Ways and Means of the House the results of the 
     audit.
       (2) Content.--In conducting an audit under this subsection, 
     the independent public accountant shall determine and report 
     on whether the financial statements of the Administration--
       (A) are presented fairly in accordance with generally 
     accepted accounting principles; and
       (B) comply with any disclosure requirements imposed under 
     this subtitle.
       (i) Financial Reports.--
       (1) In general.--The Administrator of the Administration 
     shall submit to the Secretary and to the Committee on Energy 
     and Natural Resources and the Committee on Finance of the 
     Senate and the Committee on Energy and Commerce and the 
     Committee on Ways and Means of the House annual and quarterly 
     reports of the financial condition and operations of the 
     Administration, which shall be in such form, contain such 
     information, and be submitted on such dates as the Secretary 
     shall require.
       (2) Contents of annual reports.--Each annual report shall 
     include--
       (A) financial statements prepared in accordance with 
     generally accepted accounting principles;
       (B) any supplemental information or alternative 
     presentation that the Secretary may require; and
       (C) an assessment (as of the end of the most recent fiscal 
     year of the Administration), signed by the chief executive 
     officer and chief accounting or financial officer of the 
     Administration, of--
       (i) the effectiveness of the internal control structure and 
     procedures of the Administration; and

[[Page 16549]]

       (ii) the compliance of the Administration with applicable 
     safety and soundness laws.
       (3) Special reports.--The Secretary may require the 
     Administrator of the Administration to submit other reports 
     on the condition (including financial condition), management, 
     activities, or operations of the Administration, as the 
     Secretary considers appropriate.
       (4) Accuracy.--Each report of financial condition shall 
     contain a declaration by the Administrator of the 
     Administration or any other officer designated by the Board 
     of Directors of the Administration to make the declaration, 
     that the report is true and correct to the best of the 
     knowledge and belief of the officer.
       (5) Availability of reports.--Reports required under this 
     section shall be published and made publicly available as 
     soon as is practicable after receipt by the Secretary.
       (j) Spending Safeguards and Reporting.--
       (1) In general.--The Administrator--
       (A) shall require any entity receiving financing support 
     from the Administration to report quarterly, in a format 
     specified by the Administrator, on such entity's use of such 
     support and its progress fulfilling the objectives for which 
     such support was granted, and the Administrator shall make 
     these reports available to the public;
       (B) may establish additional reporting and information 
     requirements for any recipient of financing support from the 
     Administration;
       (C) shall establish appropriate mechanisms to ensure 
     appropriate use and compliance with all terms of any 
     financing support from the Administration;
       (D) shall create and maintain a fully searchable database, 
     accessible on the Internet (or successor protocol) at no cost 
     to the public, that contains at least--
       (i) a list of each entity that has applied for financing 
     support;
       (ii) a description of each application;
       (iii) the status of each such application;
       (iv) the name of each entity receiving financing support;
       (v) the purpose for which such entity is receiving such 
     financing support;
       (vi) each quarterly report submitted by the entity pursuant 
     to this section; and
       (vii) such other information sufficient to allow the public 
     to understand and monitor the financial support provided by 
     the Administration;
       (E) shall make all financing transactions available for 
     public inspection, including formal annual reviews by both a 
     private auditor and the Comptroller General; and
       (F) shall at all times be available to receive public 
     comment in writing on the activities of the Administration.
       (2) Protection of confidential business information.--To 
     the extent necessary and appropriate, the Administrator may 
     redact any information regarding applicants and borrowers to 
     protect confidential business information.

     SEC. 191. CONFORMING AMENDMENTS.

       (a) Tax Exempt Status.--Subsection (l) of section 501 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following:
       ``(4) The Clean Energy Deployment Administration 
     established under section 186 of the American Clean Energy 
     and Security Act of 2009''.
       (b) Wholly Owned Government Corporation.--Paragraph (3) of 
     section 9101 of title 31, United States Code, is amended by 
     adding at the end the following:
       ``(S) the Clean Energy Deployment Administration.''.

                       Subtitle J--Miscellaneous

     SEC. 195. INCREASED HYDROELECTRIC GENERATION AT EXISTING 
                   FEDERAL FACILITIES.

       (a) In General.--The Secretary of the Interior, the 
     Secretary of Energy, and the Secretary of the Army shall 
     jointly update the study of the potential for increasing 
     electric power production capability at federally owned or 
     operated water regulation, storage, and conveyance facilities 
     required in section 1834 of the Energy Policy Act of 2005.
       (b) Content.--The update under this section shall include 
     identification and description in detail of each facility 
     that is capable, with or without modification, of producing 
     additional hydroelectric power, including estimation of the 
     existing potential for the facility to generate hydroelectric 
     power.
       (c) Report.--The Secretaries shall submit to the Committees 
     on Energy and Commerce, Natural Resources, and Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Energy and Natural Resources of the Senate a 
     report on the findings, conclusions, and recommendations of 
     the update of the study under this section by not later than 
     12 months after the date of enactment of this Act. The report 
     shall include each of the following:
       (1) The identifications, descriptions, and estimations 
     referred to in subsection (b).
       (2) A description of activities currently conducted or 
     considered, or that could be considered, to produce 
     additional hydroelectric power from each identified facility.
       (3) A summary of prior actions taken by the Secretaries to 
     produce additional hydroelectric power from each identified 
     facility.
       (4) The costs to install, upgrade, or modify equipment or 
     take other actions to produce additional hydroelectric power 
     from each identified facility, and the level of Federal power 
     customer involvement in the determination of such costs.
       (5) The benefits that would be achieved by such 
     installation, upgrade, modification, or other action, 
     including quantified estimates of any additional energy or 
     capacity from each facility identified under subsection (b).
       (6) A description of actions that are planned, underway, or 
     might reasonably be considered to increase hydroelectric 
     power production by replacing turbine runners, by performing 
     generator upgrades or rewinds, or by construction of pumped 
     storage facilities.
       (7) The impact of increased hydroelectric power production 
     on irrigation, water supply, fish, wildlife, Indian tribes, 
     river health, water quality, navigation, recreation, fishing, 
     and flood control.
       (8) Any additional recommendations to increase 
     hydroelectric power production from, and reduce costs and 
     improve efficiency at, federally owned or operated water 
     regulation, storage, and conveyance facilities.

     SEC. 196. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT 
                   PROGRAM.

       (a) In General.--The Secretary of Energy is authorized to 
     provide grants to organizations to conduct business 
     competitions that provide incentives, training, and 
     mentorship to entrepreneurs including minority-owned and 
     woman-owned and early stage start-up companies throughout the 
     United States to meet high priority economic, environmental, 
     and energy security goals in areas to include energy 
     efficiency, renewable energy, air quality, water quality and 
     conservation, transportation, smart grid, green building, and 
     waste management. Such competitions shall have the purpose of 
     accelerating the development and deployment of clean 
     technology businesses and green jobs; stimulating green 
     economic development; providing business training and 
     mentoring to early stage clean technology companies; and 
     strengthening the competitiveness of United States clean 
     technology industry in world trade markets. Priority shall be 
     given to business competitions that are private sector led, 
     encourage regional and interregional cooperation, and can 
     demonstrate market-driven practices and show the creation of 
     cost-effective green jobs through an annual publication of 
     competition activities and directory of companies.
       (b) Eligibility.--An organization eligible for a grant 
     under subsection (a) is--
       (1) any organization described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 and exempt from tax under 
     section 501(a) of such Code; and
       (2) any sponsored entity of an organization described in 
     paragraph (1) that is operated as a nonprofit entity.
       (c) Priority.--In making grants under this section, the 
     Secretary shall give priority to those organizations that can 
     demonstrate broad funding support from private and other non-
     Federal funding sources to leverage Federal investment.
       (d) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated $20,000,000.

     SEC. 197. NATIONAL BIOENERGY PARTNERSHIP.

       (a) In General.--The Secretary of Energy shall establish a 
     National Bioenergy Partnership to provide coordination among 
     programs of State governments, the Federal Government, and 
     the private sector that support the institutional and 
     physical infrastructure necessary to promote the deployment 
     of sustainable biomass fuels and bioenergy technologies for 
     the United States.
       (b) Program.--The National Bioenergy Partnership shall 
     consist of five regions, to be administered by the CONEG 
     Policy Research Center, the Council of Great Lakes Governors, 
     the Southern States Energy Board, the Western Governors 
     Association, and the Pacific Regional Biomass Energy 
     Partnership led by the Washington State University Energy 
     Program.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for each of fiscal years 2010 through 2014 
     to carry out this section--
       (1) $5,000,000, to be allocated among the 5 regions 
     described in subsection (b) on the basis of the number of 
     States in each region, for distribution among the member 
     States of that region based on procedures developed by the 
     member States of the region; and
       (2) $2,500,000, to be allocated equally among the 5 regions 
     described in subsection (b) for region-wide activities, 
     including technical assistance and regional studies and 
     coordination.

     SEC. 198. OFFICE OF CONSUMER ADVOCACY.

       Section 319 of the Federal Power Act is amended to read as 
     follows:

     ``SEC. 319. OFFICE OF CONSUMER ADVOCACY.

       ``(a) Office.--
       ``(1) Establishment.--There is established within the 
     Commission an Office of Consumer Advocacy to serve as an 
     advocate for the public interest. The Office of 
     Administrative Litigation within the Commission shall be 
     incorporated into the Office of Consumer Advocacy.
       ``(2) Director.--The Office shall be headed by a Director 
     to be appointed by the President by and with the advice and 
     consent of the Senate from among individuals who are licensed 
     attorneys admitted to the Bar of

[[Page 16550]]

     any State or of the District of Columbia and who have 
     experience in public utility proceedings.
       ``(3) Duties.--The Office may--
       ``(A) represent the interests of energy customers--
       ``(i) on matters before the Commission concerning rates or 
     service of public utilities and natural gas companies under 
     the jurisdiction of the Commission;
       ``(ii) as amicus curiae, in the review in the courts of the 
     United States of rulings by the Commission in such matters; 
     and
       ``(iii) as amicus, in hearings and proceedings in other 
     Federal regulatory agencies and commissions related to such 
     matters;
       ``(B) monitor and review energy customer complaints and 
     grievances on matters concerning rates or service of public 
     utilities and natural gas companies under the jurisdiction of 
     the Commission;
       ``(C) investigate independently, or within the context of 
     formal proceedings, the services provided by, the rates 
     charged by, and the valuation of the properties of, public 
     utilities and natural gas companies under the jurisdiction of 
     the Commission;
       ``(D) develop means, such as public dissemination of 
     information, consultative services, and technical assistance, 
     to ensure, to the maximum extent practicable, that the 
     interests of energy consumers are adequately represented in 
     the course of any hearing or proceeding described in 
     subparagraph (A);
       ``(E) collect data concerning rates or service of public 
     utilities and natural gas companies under the jurisdiction of 
     the Commission; and
       ``(F) prepare and issue reports and recommendations.
       ``(4) Compensation and powers.--The Director shall be 
     compensated at Level IV of the Executive Schedule. The 
     Director may--
       ``(A) employ not more than 25 full-time professional 
     employees at appropriate levels in the GS Scale and such 
     additional support personnel as required; and
       ``(B) procure temporary and intermittent services as 
     needed.
       ``(5) Information from other federal agencies.--The 
     Director may request, from any department, agency, or 
     instrumentality of the United States such information as he 
     deems necessary to carry out his functions under this 
     section. Upon such request, the head of the department, 
     agency, or instrumentality concerned shall, to the extent 
     practicable and authorized by law, provide such information 
     to the Office.
       ``(b) Consumer Advocacy Advisory Committee.--
       ``(1) Establishment.--The Director shall establish an 
     advisory committee to be known as Consumer Advocacy Advisory 
     Committee (in this section referred to as the `Advisory 
     Committee') to review rates, services, and disputes and to 
     make recommendations to the Director.
       ``(2) Composition.--The Director shall appoint 5 members to 
     the Advisory Committee including--
       ``(A) 2 individuals representing State utility consumer 
     advocates; and
       ``(B) 1 individual, from a nongovernmental organization 
     representing consumers.
       ``(3) Meetings.--The Advisory Committee shall meet at such 
     frequency as may be required to carry out its duties.
       ``(4) Reports.--The Director shall provide for the 
     publication of recommendations of the Advisory Committee on 
     the public website established for the Office.
       ``(5) Duration.--Notwithstanding any other provision of 
     law, the Advisory Committee shall continue in operation 
     during the period for which the Office exists.
       ``(c) Definitions.--
       ``(1) Energy customer.--The term `energy customer' means a 
     residential customer or a small commercial customer that 
     receives products or services directly or indirectly from a 
     public utility or natural gas company under the jurisdiction 
     of the Commission.
       ``(2) Natural gas company.--The term `natural gas company' 
     has the meaning given the term in section 2 of the Natural 
     Gas Act (15 U.S.C. 717a), as modified by section 601(a) of 
     the Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a)).
       ``(3) Office.--The term `Office' means the Office of 
     Consumer Advocacy established under this section.
       ``(4) Public utility.--The term `public utility' has the 
     meaning given the term in section 201(e) of this Act.
       ``(5) Small commercial customer.--The term `small 
     commercial customer' means a commercial customer that has a 
     peak demand of not more than 1,000 kilowatts per hour.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as necessary to carry 
     out this section.
       ``(e) Savings Clause.--Nothing in this section affects the 
     rights or obligations of any State utility consumer 
     advocate.''.

     SEC. 199. DEVELOPMENT CORPORATION FOR RENEWABLE POWER 
                   BORROWING AUTHORITY

       (a) Determination.--No later than 6 months after the date 
     of enactment of this Act, the Secretary of Energy, in 
     coordination with the Secretary of Commerce, shall--
       (1) determine any geographic area within the contiguous 
     United States that lacks a Federal power marketing agency;
       (2) develop a plan or criteria for the geographic areas 
     identified in paragraph (1) regarding investment in renewable 
     energy and associated infrastructure within an area 
     identified in paragraph (1); and
       (3) identify any Federal agency within an area in paragraph 
     (1) that has, or could develop, the ability to facilitate the 
     investment in paragraph (2).
       (b) Report.--The Secretary of Energy, in coordination with 
     the Secretary of Commerce, shall provide the determinations 
     made under subsection (a) to the Committee on Energy and 
     Commerce of the House of Representatives.
       (c) Establishment.--Based upon the determinations made 
     pursuant to subsection (a), the Secretary of Energy, in 
     coordination with the Secretary of Commerce, shall recommend 
     to the Committee on Energy and Commerce of the House of 
     Representatives the establishment of any new Federal lending 
     authority, including authorization of additional lending 
     authority for existing Federal agencies, not to exceed 
     $3,500,000,000 per geographic area identified in subsection 
     (a)(1).
       (d) Authorization.--$25,000,000 is authorized to be 
     appropriated for fiscal year 2010 to carry out the provisions 
     of this section.

     SEC. 199A. STUDY.

       Not later than February 1, 2011, the Secretary of Energy 
     shall transmit to the Congress a report showing the results 
     of a study on the use of thorium-fueled nuclear reactors for 
     national energy needs. Such report shall include a response 
     to the International Atomic Energy Agency study entitled 
     ``Thorium fuel cycle - Potential benefits and challenges'' 
     (IAEA-TECDOC-1450).

                      TITLE II--ENERGY EFFICIENCY

            Subtitle A--Building Energy Efficiency Programs

     SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

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

     ``SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

       ``(a) Energy Efficiency Targets.--
       ``(1) In general.--Except as provided in paragraph (2) or 
     (3), the national building code energy efficiency target for 
     the national average percentage improvement of a building's 
     energy performance when built to a code meeting the target 
     shall be--
       ``(A) effective on the date of enactment of the American 
     Clean Energy and Security Act of 2009, 30 percent reduction 
     in energy use relative to a comparable building constructed 
     in compliance with the baseline code;
       ``(B) effective January 1, 2014, for residential buildings, 
     and January 1, 2015, for commercial buildings, 50 percent 
     reduction in energy use relative to the baseline code; and
       ``(C) effective January 1, 2017, for residential buildings, 
     and January 1, 2018, for commercial buildings, and every 3 
     years thereafter, respectively, through January 1, 2029, and 
     January 1, 2030, 5 percent additional reduction in energy use 
     relative to the baseline code.
       ``(2) Consensus-based codes.--If on any effective date 
     specified in paragraph (1)(A), (B), or (C) a successor code 
     to the baseline codes provides for greater reduction in 
     energy use than is required under paragraph (1), the overall 
     percentage reduction in energy use provided by that successor 
     code shall be the national building code energy efficiency 
     target.
       ``(3) Targets established by secretary.--The Secretary may 
     by rule establish a national building code energy efficiency 
     target for residential or commercial buildings achieving 
     greater reductions in energy use than the targets prescribed 
     in paragraph (1) or (2) if the Secretary determines that such 
     greater reductions in energy use can be achieved with a code 
     that is life cycle cost-justified and technically feasible. 
     The Secretary may by rule establish a national building code 
     energy efficiency target for residential or commercial 
     buildings achieving a reduction in energy use that is greater 
     than zero but less than the targets prescribed in paragraph 
     (1) or (2) if the Secretary determines that such lesser 
     target is the maximum reduction in energy use that can be 
     achieved through a code that is life cycle cost-justified and 
     technically feasible.
       ``(4) Additional reductions in energy use.--Effective on 
     January 1, 2033, and once every 3 years thereafter, the 
     Secretary shall determine, after notice and opportunity for 
     comment, whether further energy efficiency building code 
     improvements for residential or commercial buildings, 
     respectively, are life cycle cost-justified and technically 
     feasible, and shall establish updated national building code 
     energy efficiency targets that meet such criteria.
       ``(5) Zero-net-energy buildings.--In setting targets under 
     this subsection, the Secretary shall consider ways to support 
     the deployment of distributed renewable energy technology, 
     and shall seek to achieve the goal of zero-net-energy 
     commercial buildings established in section 422 of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17082).

[[Page 16551]]

       ``(6) Baseline code.--For purposes of this section, the 
     term `baseline code' means--
       ``(A) for residential buildings, the 2006 International 
     Energy Conservation Code (IECC) published by the 
     International Code Council (ICC); and
       ``(B) for commercial buildings, the code published in 
     ASHRAE Standard 90.1-2004.
       ``(7) Consultation.--In establishing the targets required 
     by this section, the Secretary shall consult with the 
     Director of the National Institute of Standards and 
     Technology.
       ``(b) National Energy Efficiency Building Codes.--
       ``(1) Requirement.--
       ``(A) In general.--There shall be established national 
     energy efficiency building codes under this subsection, for 
     residential and commercial buildings, sufficient to meet each 
     of the national building code energy efficiency targets 
     established under subsection (a), not later than the date 
     that is one year after the deadline for establishment of each 
     such target, except that the national energy efficiency 
     building code established to meet the target described in 
     subsection (a)(1)(A) shall be established by not later than 
     15 months after the effective date of that target.
       ``(B) Existing code.--If the Secretary finds prior to the 
     date provided in subparagraph (A) for establishing a national 
     code for any target that one or more energy efficiency 
     building codes published by a recognized developer of 
     national energy codes and standards meet or exceed the 
     established target, the Secretary shall select the code that 
     meets the target with the highest efficiency in the most 
     cost-effective manner, and such code shall be the national 
     energy efficiency building code.
       ``(C) Requirement to establish code.--If the Secretary does 
     not make a finding under subparagraph (B), the national 
     energy efficiency building code shall be established by rule 
     by the Secretary under paragraph (2).
       ``(2) Establishment by secretary.--
       ``(A) Procedure.--In order to establish a national energy 
     efficiency building code as required under paragraph (1)(C), 
     the Secretary shall--
       ``(i) not later than six months prior to the effective date 
     for each target, review existing and proposed codes published 
     or under review by recognized developers of national energy 
     codes and standards;
       ``(ii) determine the percentage of energy efficiency 
     improvements that are or would be achieved in such published 
     or proposed code versions relative to the target;
       ``(iii) propose improvements to such published or proposed 
     code versions sufficient to meet or exceed the target; and
       ``(iv) unless a finding is made under paragraph (1)(B) with 
     respect to a code published by a recognized developer of 
     national energy codes and standards, adopt a code that meets 
     or exceeds the relevant national building code energy 
     efficiency target by not later than one year after the 
     effective date of each such target, and by not later than 15 
     months after the target is established under subsection 
     (a)(1)(A).
       ``(B) Calculations.--Each national energy efficiency 
     building code established by the Secretary under this 
     paragraph shall be set at the maximum level the Secretary 
     determines is life cycle cost-justified and technically 
     feasible, in accordance with the following:
       ``(i) Savings calculations.--Calculations of energy savings 
     shall take into account the typical lifetimes of different 
     products, measures, and system configurations.
       ``(ii) Cost-effectiveness calculations.--Calculations of 
     life cycle cost-effectiveness shall be based on life cycle 
     cost methods and procedures under section 544 of the National 
     Energy Conservation Policy Act (42 U.S.C. 8254), but shall 
     incorporate to the extent feasible externalities such as 
     impacts on climate change and on peak energy demand that are 
     not already incorporated in assumed energy costs.
       ``(C) Considerations.--In developing a national energy 
     efficiency building code under this paragraph, the Secretary 
     shall consider--
       ``(i) for residential national energy efficiency building 
     codes--

       ``(I) residential building standards published or proposed 
     by ASHRAE;
       ``(II) building codes published or proposed by the 
     International Code Council (ICC);
       ``(III) data from the Residential Energy Services Network 
     (RESNET) on compliance measures utilized by consumers to 
     qualify for the residential energy efficiency tax credits 
     established under the Energy Policy Act of 2005;
       ``(IV) data and information from the Department of Energy's 
     Building America Program;
       ``(V) data and information from the Energy Star New Homes 
     program;
       ``(VI) data and information from the New Building Institute 
     and similar organizations; and
       ``(VII) standards for practices and materials to achieve 
     cool roofs in residential buildings, taking into 
     consideration reduced air conditioning energy use as a 
     function of cool roofs, the potential reduction in global 
     warming from increased solar reflectance from buildings, and 
     cool roofs criteria in State and local building codes and in 
     national and local voluntary programs, without reduction of 
     otherwise applicable ceiling insulation standards; and

       ``(ii) for commercial national energy efficiency building 
     codes--

       ``(I) commercial building standards proposed by ASHRAE;
       ``(II) building codes proposed by the International Code 
     Council (ICC);
       ``(III) the Core Performance Criteria published by the New 
     Buildings Institute;
       ``(IV) data and information developed by the Director of 
     the Commercial High-Performance Green Building Office of the 
     Department of Energy and any public-private partnerships 
     established under that Office;
       ``(V) data and information from the Energy Star for 
     Buildings program;
       ``(VI) data and information from the New Building 
     Institute, RESNET, and similar organizations; and
       ``(VII) standards for practices and materials to achieve 
     cool roofs in commercial buildings, taking into consideration 
     reduced air conditioning energy use as a function of cool 
     roofs, the potential reduction in global warming from 
     increased solar reflectance from buildings, and cool roofs 
     criteria in State and local building codes and in national 
     and local voluntary programs, without reduction of otherwise 
     applicable ceiling insulation standards.

       ``(D) Consultation.--In establishing any national energy 
     efficiency building code required by this section, the 
     Secretary shall consult with the Director of the National 
     Institute of Standards and Technology.
       ``(3) Consensus standard assistance.--(A) To support the 
     development of consensus standards that may provide the basis 
     for national energy efficiency building codes, minimize 
     duplication of effort, encourage progress through consensus, 
     and facilitate the development of greater building 
     efficiency, the Secretary shall provide assistance to 
     recognized developers of national energy codes and standards 
     to develop, and where the relevant code has been adopted as 
     the national code, disseminate consensus based energy 
     efficiency building codes as provided in this paragraph.
       ``(B) Upon a finding by the Secretary that a code developed 
     by such a developer meets a target established under 
     subsection (a), the Secretary shall--
       ``(i) send notice of the Secretary's finding to all duly 
     authorized or appointed State, tribal, and local code 
     agencies; and
       ``(ii) provide sufficient support to such a developer to 
     make the code available on the Internet, or to accomplish 
     distribution of such code to all such State, tribal, and 
     local code agencies at no cost to the State, tribal, and 
     local code agencies.
       ``(C) The Secretary may contract with such a developer and 
     with other organizations with expertise on codes to provide 
     training for State, tribal, and local code officials and 
     building inspectors in the implementation and enforcement of 
     such code.
       ``(D) The Secretary may provide grants and other support to 
     such a developer to--
       ``(i) develop appropriate refinements to such code; and
       ``(ii) support analysis of options for improvements in the 
     code to meet the next scheduled target.
       ``(4) Code developed by secretary.--If the Secretary 
     establishes a national energy efficiency building code under 
     paragraph (2), the Secretary shall--
       ``(A) to the extent that such code is based on a prior code 
     developed by a recognized developer of national energy codes 
     and standards, negotiate and provide appropriate compensation 
     to such developer for the use of the code materials that 
     remain in the code established by the Secretary; and
       ``(B) disseminate the national energy efficiency building 
     codes to State, tribal, and local code officials, and support 
     training and provide guidance and technical assistance to 
     such officials as appropriate.
       ``(c) State Adoption of Energy Efficiency Building Codes.--
       ``(1) Requirement.--Not later than 1 year after a national 
     energy efficiency building code for residential or commercial 
     buildings is established or revised under subsection (b), 
     each State--
       ``(A) shall--
       ``(i) review and update the provisions of its building code 
     regarding energy efficiency to meet or exceed the target met 
     in the new national energy efficiency building code, to 
     achieve equivalent or greater energy savings;
       ``(ii) document, where local governments establish building 
     codes, that local governments representing not less than 80 
     percent of the State's urban population have adopted the new 
     national code, or have adopted local codes that meet or 
     exceed the target met in the new national code to achieve 
     equivalent or greater energy savings; or
       ``(iii) adopt the new national code; and
       ``(B) shall provide a certification to the Secretary 
     demonstrating that energy efficiency building code provisions 
     that apply pursuant to subparagraph (A) in that State meet or 
     exceed the target met by the new national code, to achieve 
     equivalent or greater energy savings.
       ``(2) Confirmation.--
       ``(A) Requirement.--Not later than 90 days after a State 
     certification is provided under paragraph (1)(B), the 
     Secretary shall determine whether the State's energy 
     efficiency

[[Page 16552]]

     building code provisions meet the requirements of this 
     subsection.
       ``(B) Acceptance by secretary.--If the Secretary determines 
     under subparagraph (A) that the State's energy efficiency 
     building code or codes meet the requirements of this 
     subsection, the Secretary shall accept the certification.
       ``(C) Deficiency notice.--If the Secretary determines under 
     subparagraph (A) that the State's building code or codes do 
     not meet the requirements of this subsection, the Secretary 
     shall identify the deficiency in meeting the national 
     building code energy efficiency target, and, to the extent 
     possible, indicate areas where further improvement in the 
     State's code provisions would allow the deficiency to be 
     eliminated.
       ``(D) Revision of code and recertification.--A State may 
     revise its code or codes and submit a recertification under 
     paragraph (1)(B) to the Secretary at any time.
       ``(3) Compliant code.--For the purposes of meeting the 
     target described in subsection (a)(1)(A) for residential 
     buildings, a State that adopts the code represented in 
     California's Title 24-2009 by the date 27 months after the 
     date of enactment of the American Clean Energy and Security 
     Act of 2009 shall be considered to have met the requirements 
     of this subsection for the applicable period.
       ``(d) Application of National Code to State and Local 
     Jurisdictions.--
       ``(1) In general.--Upon the expiration of 18 months after a 
     national energy efficiency building code is established under 
     subsection (b), in any jurisdiction where the State has not 
     had a certification relating to that code accepted by the 
     Secretary under subsection (c)(2)(B), and the local 
     government has not had a certification relating to that code 
     accepted by the Secretary under subsection (e)(5), the 
     national energy efficiency building code shall become the 
     applicable energy efficiency building code for such 
     jurisdiction.
       ``(2) Conflicts.--In the event of a conflict between a 
     provision of the national energy efficiency building code and 
     a provision of other applicable energy codes, the national 
     energy efficiency building code shall apply. If there is a 
     conflict between a provision of the national energy 
     efficiency building code and a provision of any applicable 
     fire code, life safety code, egress code, or accessibility 
     code, the Secretary shall take appropriate actions to resolve 
     such conflict in a manner that does not compromise the 
     objectives of such codes.
       ``(3) State legislative adoption.--In a State in which the 
     relevant building energy code is adopted legislatively, the 
     deadline in paragraph (1) shall not be earlier than 1 year 
     after the first day that the legislature meets following 
     establishment of a national energy efficiency building code.
       ``(4) Notice of intent to enforce.--A State or locality 
     that enforces building codes may assume responsibility for 
     enforcing the national energy efficiency building code by 
     notifying the Secretary to that effect not later than three 
     months after the date established under paragraph (1).
       ``(5) Violations.--Violations of this section shall be 
     defined as follows:
       ``(A) If the building is subject to the requirements of a 
     State energy efficiency building code with respect to which a 
     certification has been accepted by the Secretary under 
     subsection (c)(2)(B) or a local energy efficiency building 
     code with respect to which a certification has been accepted 
     by the Secretary pursuant to subsection (e)(5), or the 
     requirements of the national energy efficiency building code 
     in a State where the State or locality has notified the 
     Secretary of its intent to enforce the provisions of the 
     national energy efficiency building code, a violation shall 
     be determined pursuant to the relevant provisions of State or 
     local law.
       ``(B) If the building is subject to the requirements of a 
     national energy efficiency building code made applicable 
     under paragraph (1) of this subsection, except as provided in 
     subparagraph (A), a violation shall be defined by the 
     Secretary pursuant to subsection (g).
       ``(e) State Enforcement of Energy Efficiency Building 
     Codes.--
       ``(1) In general.--Each State, or where applicable under 
     State law each local government, shall implement and enforce 
     applicable State or local codes with respect to which a 
     certification was accepted by the Secretary under subsection 
     (c)(2)(B) or paragraph (5) of this subsection, or the 
     national energy efficiency building codes, as provided in 
     this subsection.
       ``(2) State certification.--Not later than 2 years after 
     the date of a certification under subsection (c)(1) or the 
     application of a national energy efficiency building code 
     under subsection (d)(1), each State shall certify that it 
     has--
       ``(A) achieved compliance with--
       ``(i) State codes, or, as provided under State law, local 
     codes, with respect to which a certification was accepted by 
     the Secretary under subsection (c)(2)(B); or
       ``(ii) the national energy efficiency building code, as 
     applicable; or
       ``(B) for any certification submitted within 7 years after 
     the date of enactment of the American Clean Energy and 
     Security Act of 2009, made significant progress toward 
     achieving such compliance.
       ``(3) Achieving compliance.--A State shall be considered to 
     achieve compliance with a code described in paragraph (2)(A) 
     if at least 90 percent of new and substantially renovated 
     building space in that State in the preceding year upon 
     inspection meets the requirements of the code. A 
     certification under paragraph (2) shall include documentation 
     of the rate of compliance based on--
       ``(A) independent inspections of a random sample of the new 
     and substantially renovated buildings covered by the code in 
     the preceding year; or
       ``(B) an alternative method that yields an accurate measure 
     of compliance as determined by the Secretary.
       ``(4) Significant progress.--A State shall be considered to 
     have made significant progress toward achieving compliance 
     with a code described in paragraph (2)(A) if--
       ``(A) the State has developed a plan, including for hiring 
     enforcement staff, providing training, providing manuals and 
     checklists, and instituting enforcement programs, designed to 
     achieve full compliance within 5 years after the date of the 
     adoption of the code;
       ``(B) the State is taking significant, timely, and 
     measurable action to implement that plan;
       ``(C) the State has not reduced its expenditures for code 
     enforcement; and
       ``(D) at least 50 percent of new and substantially 
     renovated building space in the State in the preceding year 
     upon inspection meets the requirements of the code.
       ``(5) Secretary's determination.--Not later than 90 days 
     after a State certification under paragraph (2), the 
     Secretary shall determine whether the State has demonstrated 
     that it has complied with the requirements of this 
     subsection, including accurate measurement of compliance, or 
     that it has made significant progress toward compliance. If 
     such determination is positive, the Secretary shall accept 
     the certification. If the determination is negative, the 
     Secretary shall identify the areas of deficiency.
       ``(6) Out of compliance.--
       ``(A) In general.--Any State for which the Secretary has 
     not accepted a certification under paragraph (5) by the dates 
     specified in paragraph (2) is out of compliance with this 
     section.
       ``(B) Local compliance.--In any State that is out of 
     compliance with this section as provided in subparagraph (A), 
     a local government may be in compliance with this section by 
     meeting all certification requirements of this subsection.
       ``(C) Noncompliance.--Any State that is not in compliance 
     with this section, as provided in subparagraph (A), shall, 
     until the State regains such compliance, be ineligible to 
     receive--
       ``(i) emission allowances pursuant to subsection (h)(1);
       ``(ii) Federal funding in excess of that State's share 
     (calculated according to the allocation formula in section 
     363 of the Energy Policy and Conservation Act (42 U.S.C. 
     6323)) of $125,000,000 each year; and
       ``(iii) for--

       ``(I) the first year for which the State is out of 
     compliance, 25 percent of any additional funding or other 
     items of monetary value otherwise provided under the American 
     Clean Energy and Security Act of 2009;
       ``(II) the second year for which the State is out of 
     compliance, 50 percent of any additional funding or other 
     items of monetary value otherwise provided under the American 
     Clean Energy and Security Act of 2009;
       ``(III) the third year for which the State is out of 
     compliance, 75 percent of any additional funding or other 
     items of monetary value otherwise provided under the American 
     Clean Energy and Security Act of 2009; and
       ``(IV) the fourth and subsequent years for which the State 
     is out of compliance, 100 percent of any additional funding 
     or other items of monetary value otherwise provided under the 
     American Clean Energy and Security Act of 2009.

       ``(f) Federal Enforcement and Training.--Where a State 
     fails and local governments in that State also fail to 
     enforce the applicable State or national energy efficiency 
     building codes, the Secretary shall enforce such codes, as 
     follows:
       ``(1) The Secretary shall establish, by rule, within 2 
     years after the date of enactment of the American Clean 
     Energy and Security Act of 2009, an energy efficiency 
     building code enforcement capability.
       ``(2) Such enforcement capability shall be designed to 
     achieve 90 percent compliance with such code in any State 
     within 1 year after the date of the Secretary's determination 
     that such State is out of compliance with this section.
       ``(3) The Secretary may set and collect reasonable 
     inspection fees to cover the costs of inspections required 
     for such enforcement. Revenue from fees collected shall be 
     available to the Secretary to carry out the requirements of 
     this section upon appropriation.
       ``(4) In any jurisdiction to which this subsection applies, 
     the Secretary shall coordinate enforcement of the national 
     energy efficiency building code with State and local code 
     enforcement of other building codes.
       ``(5) In any jurisdiction to which this subsection applies, 
     the Secretary shall enhance

[[Page 16553]]

     compliance by conducting training and education of builders 
     and other professionals in the jurisdiction concerning the 
     national energy efficiency building code.
       ``(6) The Secretary shall coordinate with professional 
     organizations representing code officials, architects, 
     engineers, builders, and other experts to develop training 
     curricula concerning the national energy efficiency building 
     code.
       ``(7) If the Secretary enforces such codes under this 
     subsection, the Secretary may, as appropriate, redefine 
     violations of such codes.
       ``(g) Enforcement Procedures.--The Secretary shall propose 
     and, not later than three years after the date of enactment 
     of the American Clean Energy and Security Act of 2009, shall 
     define by rule violations of the energy efficiency building 
     codes to be enforced by the Secretary pursuant to this 
     section, and the penalties that shall apply to violators, in 
     any jurisdiction in which the national energy efficiency 
     building code has been made applicable under subsection 
     (d)(1). To the extent that the Secretary determines that the 
     authority to adopt and impose such violations and penalties 
     by rule requires further statutory authority, the Secretary 
     shall report such determination to Congress as soon as such 
     determination is made, but not later than one year after the 
     enactment of the American Clean Energy and Security Act of 
     2009.
       ``(h) Federal Support.--
       ``(1) Allowance allocation for state compliance.--For each 
     vintage year from 2012 through 2050, the Administrator shall 
     distribute allowances allocated pursuant to section 782(g)(2) 
     of the Clean Air Act to the SEED Account for each State. Such 
     allowances shall be distributed according to a formula 
     established by the Secretary as follows:
       ``(A) One-fifth in an equal amount to each of the 50 States 
     and United States territories.
       ``(B) Two-fifths as a function of the relative energy use 
     in all buildings in each State in the most recent year for 
     which data is available.
       ``(C) Two-fifths based on the number of building 
     construction starts recorded in each State, the number of new 
     building permits applied for in each State, or other relevant 
     available data indicating building activity in each State, in 
     the judgment of the Secretary, for the year prior to the year 
     of the distribution.
       ``(2) Allowance allocation to local governments.--In the 
     instance that the Secretary certifies that one or more local 
     governments are in compliance with this section pursuant to 
     subsection (e)(6)(B), the Administrator shall provide to each 
     such local government the portion of the emission allowances 
     that would have been provided to that State as a function of 
     the population of that locality as a proportion of the 
     population of that State as a whole.
       ``(3) Unallocated allowances.--To the extent that 
     allowances are not provided to State or local governments for 
     lack of certification in any year, those allowances shall be 
     added to the amount provided to those States and local 
     governments that are certified as eligible in that year.
       ``(4) Use of allowances.--Each State or each local 
     government shall use such emission allowances as it receives 
     pursuant to this section exclusively for the purposes of this 
     section, including covering a reasonable portion of the costs 
     of the development, adoption, implementation, and enforcement 
     of a State or local energy efficiency building code that 
     meets the national building code energy efficiency targets, 
     or the national energy efficiency building code. In a State 
     where local governments provide substantially all building 
     code enforcement, a minimum of 50 percent of the allowance 
     value received pursuant to this section shall be distributed 
     to local governments as a function of the relative 
     populations of such localities. In a State where local and 
     State governments share building code enforcement duties, the 
     State and local shares of allowance value required for 
     enforcement shall be allocated in proportion to the number of 
     building inspections performed by each level of government, 
     and the share for local governments shall be distributed as a 
     function of the relative populations of such localities. 
     States shall further ensure that the allowance value made 
     available pursuant to section 782 of the Clean Air Act and 
     section 132 of the American Clean Energy and Security Act of 
     2009 is provided to the applicable State or local 
     governmental entities as necessary to adopt and implement 
     energy efficiency building codes, provide training for 
     inspectors, ensure compliance, and provide such other 
     functions as necessary. Actions taken by local authorities 
     pursuant to this section shall constitute an acceptable use 
     of funds authorized pursuant to the Energy Efficiency and 
     Conservation Block Grant program under section 544 of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17154).
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Energy 
     $25,000,000, and such additional sums as may be necessary to 
     provide enforcement of a national energy efficiency building 
     code, for each of fiscal years 2010 through 2020, and such 
     sums thereafter as may be necessary to support the purposes 
     of this section.
       ``(j) Annual Reports by Secretary.--The Secretary shall 
     annually submit to Congress, and publish in the Federal 
     Register, a report on--
       ``(1) the status of national energy efficiency building 
     codes;
       ``(2) the status of energy efficiency building code 
     adoption and compliance in the States;
       ``(3) the implementation of this section;
       ``(4) the status of Federal enforcement of building codes, 
     including coordination with State and local enforcement, and 
     the extent and resolution of any conflicts between the 
     national energy efficiency building code and other 
     residential and commercial building codes in force in the 
     same jurisdictions; and
       ``(5) impacts of past action under this section, and 
     potential impacts of further action, on lifetime energy use 
     by buildings, including resulting energy and cost savings.''.

     SEC. 202. BUILDING RETROFIT PROGRAM.

       (a) Definitions.--For purposes of this section:
       (1) Assisted housing.--The term ``assisted housing'' means 
     those properties receiving project-based assistance pursuant 
     to section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), 
     section 811 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8013), section 8 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f), or similar programs.
       (2) Nonresidential building.--The term ``nonresidential 
     building'' means a building with a primary use or purpose 
     other than residential housing, including any building used 
     for commercial offices, schools, academic and other public 
     and private institutions, nonprofit organizations including 
     faith-based organizations, hospitals, hotels, and other 
     nonresidential purposes. Such buildings shall include mixed-
     use properties used for both residential and nonresidential 
     purposes in which more than half of building floor space is 
     nonresidential.
       (3) Performance-based building retrofit program.--The term 
     ``performance-based building retrofit program'' means a 
     program that determines building energy efficiency success 
     based on actual measured savings after a retrofit is 
     complete, as evidenced by energy invoices or evaluation 
     protocols.
       (4) Prescriptive building retrofit program.--The term 
     ``prescriptive building retrofit program'' means a program 
     that projects building retrofit energy efficiency success 
     based on the known effectiveness of measures prescribed to be 
     included in a retrofit.
       (5) Public housing.--The term ``public housing'' means 
     properties receiving assistance under section 9 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437g).
       (6) Recommissioning; retrocommissioning.--The terms 
     ``recommissioning'' and ``retrocommissioning'' have the 
     meaning given those terms in section 543(f)(1) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8253(f)(1)).
       (7) Residential building.--The term ``residential 
     building'' means a building whose primary use is residential. 
     Such buildings shall include single-family homes (both 
     attached and detached), owner-occupied units in larger 
     buildings with their own dedicated space-conditioning 
     systems, apartment buildings, multi-unit condominium 
     buildings, public housing, assisted housing, and buildings 
     used for both residential and nonresidential purposes in 
     which more than half of building floor space is residential.
       (8) State energy program.--The term ``State Energy 
     Program'' means the program under part D of title III of the 
     Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
       (b) Establishment.--The Administrator shall develop and 
     implement, in consultation with the Secretary of Energy, 
     standards for a national energy and environmental building 
     retrofit policy for single-family and multifamily residences. 
     The Administrator shall develop and implement, in 
     consultation with the Secretary of Energy and the Director of 
     Commercial High-Performance Green Buildings, standards for a 
     national energy and environmental building retrofit policy 
     for nonresidential buildings. The programs to implement the 
     residential and nonresidential policies based on the 
     standards developed under this section shall together be 
     known as the Retrofit for Energy and Environmental 
     Performance (REEP) program.
       (c) Purpose.--The purpose of the REEP program is to 
     facilitate the retrofitting of existing buildings across the 
     United States to achieve maximum cost-effective energy 
     efficiency improvements and significant improvements in water 
     use and other environmental attributes.
       (d) Federal Administration.--
       (1) Existing programs.--In creating and operating the REEP 
     program--
       (A) the Administrator shall make appropriate use of 
     existing programs, including the Energy Star program and in 
     particular the Environmental Protection Agency Energy Star 
     for Buildings program; and
       (B) the Secretary of Energy shall make appropriate use of 
     existing programs, including delegating authority to the 
     Director of Commercial High-Performance Green Buildings 
     appointed under section 421 of the Energy Independence and 
     Security Act of 2007 (42

[[Page 16554]]

     U.S.C. 17081), who shall designate and provide funding to 
     support a high-performance green building partnership 
     consortium pursuant to subsection (f) of such section to 
     support efforts under this section.
       (2) Consultation and coordination.--The Administrator and 
     the Secretary of Energy shall consult with and coordinate 
     with the Secretary of Housing and Urban Development in 
     carrying out the REEP program with regard to retrofitting of 
     public housing and assisted housing. As a result of such 
     consultation, the Administrator shall establish standards to 
     ensure that retrofits of public housing and assisted housing 
     funded pursuant to this section are cost-effective, including 
     opportunities to address the potential co-performance of 
     repair and replacement needs that may be supported with other 
     forms of Federal assistance. ``Owners of public housing or 
     assited housing receiving funding through the REEP program 
     shall agree to continue to provide affordable housing 
     consistent with the provisions of the authorizing legislation 
     governing each program for an additional period commensurate 
     with the funding received, as determined in accordance with 
     guidelines established by the Secretary of Housing and Urban 
     Development.''
       (3) Assistance.--The Administrator and the Secretary of 
     Energy shall provide consultation and assistance to State and 
     local agencies for the establishment of revolving loan funds, 
     loan guarantees, or other forms of financial assistance under 
     this section.
       (e) State and Local Administration.--
       (1) Designation and delegation.--A State may designate one 
     or more agencies or entities, including those regulated by 
     the State, to carry out the purposes of this section, but 
     shall designate one entity or individual as the principal 
     point of contact for the Administrator regarding the REEP 
     Program. The designated State agency, agencies, or entities 
     may delegate performance of appropriate elements of the REEP 
     program, upon their request and subject to State law, to 
     counties, municipalities, appropriate public agencies, and 
     other divisions of local government, as well as to entities 
     regulated by the State. In making any such designation or 
     delegation, a State shall give priority to entities that 
     administer existing comprehensive retrofit programs, 
     including those under the supervision of State utility 
     regulators. States shall maintain responsibility for meeting 
     the standards and requirements of the REEP program. In any 
     State that elects not to administer the REEP program, a unit 
     of local government may propose to do so within its 
     jurisdiction, and if the Administrator finds that such local 
     government is capable of administering the program, the 
     Administrator may provide allowances to that local 
     government, prorated according to the population of the local 
     jurisdiction relative to the population of the State, for 
     purposes of the REEP program.
       (2) Employment.--States and local government entities may 
     administer a REEP program in a manner that authorizes public 
     or regulated investor-owned utilities, building auditors and 
     inspectors, contractors, nonprofit organizations, for-profit 
     companies, and other entities to perform audits and retrofit 
     services under this section. A State may provide incentives 
     for retrofits without direct participation by the State or 
     its agents, so long as the resulting savings are measured and 
     verified. A State or local administrator of a REEP program 
     shall seek to ensure that sufficient qualified entities are 
     available to support retrofit activities so that building 
     owners have a competitive choice among qualified auditors, 
     raters, contractors, and providers of services related to 
     retrofits. Nothing in this section is intended to deny the 
     right of a building owner to choose the specific providers of 
     retrofit services to engage for a retrofit project in that 
     owner's building.
       (3) Equal incentives for equal improvement.--In general, 
     the States should strive to offer the same levels of 
     incentives for retrofits that meet the same efficiency 
     improvement goals, regardless of whether the State, its 
     agency or entity, or the building owner has conducted the 
     retrofit achieving the improvement, provided the improvement 
     is measured and verified.
       (f) Elements of Reep Program.--The Administrator, in 
     consultation with the Secretary of Energy, shall establish 
     goals, guidelines, practices, and standards for accomplishing 
     the purpose stated in subsection (c), and shall annually 
     review and, as appropriate, revise such goals, guidelines, 
     practices, and standards. The program under this section 
     shall include the following:
       (1) Residential Energy Services Network (RESNET) or 
     Building Performance Institute (BPI) analyst certification of 
     residential building energy and environment auditors, 
     inspectors, and raters, or an equivalent certification system 
     as determined by the Administrator.
       (2) BPI certification or licensing by States of residential 
     building energy and environmental retrofit contractors, or an 
     equivalent certification or licensing system as determined by 
     the Administrator.
       (3) Provision of BPI, RESNET, or other appropriate 
     information on equipment and procedures, as determined by the 
     Administrator, that contractors can use to test the energy 
     and environmental efficiency of buildings effectively (such 
     as infrared photography and pressurized testing, and tests 
     for water use and indoor air quality).
       (4) Provision of clear and effective materials to describe 
     the testing and retrofit processes for typical buildings.
       (5) Guidelines for offering and managing prescriptive 
     building retrofit programs and performance-based building 
     retrofit programs for residential and nonresidential 
     buildings.
       (6) Guidelines for applying recommissioning and 
     retrocommissioning principles to improve a building's 
     operations and maintenance procedures.
       (7) A requirement that building retrofits conducted 
     pursuant to a REEP program utilize, especially in all air-
     conditioned buildings, roofing materials with high solar 
     energy reflectance, unless inappropriate due to green roof 
     management, solar energy production, or for other reasons 
     identified by the Administrator, in order to reduce energy 
     consumption within the building, increase the albedo of the 
     building's roof, and decrease the heat island effect in the 
     area of the building, without reduction of otherwise 
     applicable ceiling insulation standards.
       (8) Determination of energy savings in a performance-based 
     building retrofit program through--
       (A) for residential buildings, comparison of before and 
     after retrofit scores on the Home Energy Rating System (HERS) 
     Index, where the final score is produced by an objective 
     third party;
       (B) for nonresidential buildings, Environmental Protection 
     Agency Portfolio Manager benchmarks; or
       (C) for either residential or nonresidential buildings, use 
     of an Administrator-approved simulation program by a 
     contractor with the appropriate certification, subject to 
     appropriate software standards and verification of at least 
     15 percent of all work done, or such other percentage as the 
     Administrator may determine.
       (9) Guidelines for utilizing the Energy Star Portfolio 
     Manager, the Home Energy Rating System (HERS) rating system, 
     Home Performance with Energy Star program approvals, and any 
     other tools associated with the retrofit program.
       (10) Requirements and guidelines for post-retrofit 
     inspection and confirmation of work and energy savings.
       (11) Detailed descriptions of funding options for the 
     benefit of State and local governments, along with model 
     forms, accounting aids, agreements, and guides to best 
     practices.
       (12) Guidance on opportunities for--
       (A) rating or certifying retrofitted buildings as Energy 
     Star buildings, or as green buildings under a recognized 
     green building rating system;
       (B) assigning Home Energy Rating System (HERS) or similar 
     ratings; and
       (C) completing any applicable building performance labels.
       (13) Sample materials for publicizing the program to 
     building owners, including public service announcements and 
     advertisements.
       (14) Processes for tracking the numbers and locations of 
     buildings retrofitted under the REEP program, with 
     information on projected and actual savings of energy and its 
     value over time.
       (g) Requirements.--As a condition of receiving allowances 
     for the REEP program pursuant to this Act, a State or 
     qualifying local government shall--
       (1) adopt the standards for training, certification of 
     contractors, certification of buildings, and post-retrofit 
     inspection as developed by the Administrator for residential 
     and nonresidential buildings, respectively, except as 
     necessary to match local conditions, needs, efficiency 
     opportunities, or other local factors, or to accord with 
     State laws or regulations, and then only after the 
     Administrator approves such a variance;
       (2) establish fiscal controls and accounting procedures 
     (which conform to generally accepted government accounting 
     principles) sufficient to ensure proper accounting during 
     appropriate accounting periods for payments received and 
     disbursements, and for fund balances; and
       (3) agree to make not less than 10 percent of allowance 
     value received pursuant to section 132(c)(2) for dedicated 
     funding of its REEP program available on a preferential basis 
     for retrofit projects proposed for public housing and 
     assisted housing, provided that--
       (A) none of such funds shall be used for demolition of such 
     housing;
       (B) such retrofits shall not be used to justify any 
     increase in rents charged to residents of such housing; and
       (C) owners of such housing shall agree to continue to 
     provide affordable housing consistent with the provisions of 
     the authorizing legislation governing each program for an 
     additional period commensurate with the funding received.

     The Administrator shall conduct or require each State to have 
     such independent financial audits of REEP-related funding as 
     the Administrator considers necessary or appropriate to carry 
     out the purposes of this section.
       (h) Options to Support Reep Program.--The emission 
     allowances provided pursuant to this Act to the States SEED 
     Accounts

[[Page 16555]]

     shall support the implementation through State REEP programs 
     of alternate means of creating incentives for, or reducing 
     financial barriers to, improved energy and environmental 
     performance in buildings, consistent with this section, 
     including--
       (1) implementing prescriptive building retrofit programs 
     and performance-based building retrofit programs;
       (2) providing credit enhancement, interest rate subsidies, 
     loan guarantees, or other credit support;
       (3) providing initial capital for public revolving fund 
     financing of retrofits, with repayments by beneficiary 
     building owners over time through their tax payments, 
     calibrated to create net positive cash flow to the building 
     owner;
       (4) providing funds to support utility-operated retrofit 
     programs with repayments over time through utility rates, 
     calibrated to create net positive cash flow to the building 
     owner, and transferable from one building owner to the next 
     with the building's utility services;
       (5) providing funds to local government programs to provide 
     REEP services and financial assistance; and
       (6) other means proposed by State and local agencies, 
     subject to the approval of the Administrator.
       (i) Support for Program.--
       (1) Use of allowances.--Direct Federal support for the REEP 
     program is provided through the emission allowances allocated 
     to the States' SEED Accounts pursuant to section 132 of this 
     Act. To the extent that a State provides allowances to local 
     governments within the State to implement elements of the 
     REEP Program, that shall be deemed a distribution of such 
     allowances to units of local government pursuant to 
     subsection (c)(1) of that section.
       (2) Initial award limits.--Except as provided in paragraph 
     (3), State and local REEP programs may make per-building 
     direct expenditures for retrofit improvements, or their 
     equivalent in indirect or other forms of financial support, 
     from funds derived from the sale of allowances received 
     directly from the Administrator in amounts not to exceed the 
     following amounts per unit:
       (A) Residential building program.--
       (i) Awards.--For residential buildings--

       (I) support for a free or low-cost detailed building energy 
     audit that prescribes measures sufficient to achieve at least 
     a 20 percent reduction in energy use, by providing an 
     incentive equal to the documented cost of such audit, but not 
     more than $200, in addition to any earned by achieving a 20 
     percent or greater efficiency improvement;
       (II) a total of $1,000 for a combination of measures, 
     prescribed in an audit conducted under subclause (I), 
     designed to reduce energy consumption by more than 10 
     percent, and $2,000 for a combination of measures prescribed 
     in such an audit, designed to reduce energy consumption by 
     more than 20 percent;
       (III) $3,000 for demonstrated savings of 20 percent, 
     pursuant to a performance-based building retrofit program; 
     and
       (IV) $1,000 for each additional 5 percentage points of 
     energy savings achieved beyond savings for which funding is 
     provided under subclause (II) or (III).

     Funding shall not be provided under clauses (II) and (III) 
     for the same energy savings.
       (ii) Maximum percentage.--Awards under clause (i) shall not 
     exceed 50 percent of retrofit costs for each building. For 
     buildings with multiple residential units, awards under 
     clause (i) shall not be greater than 50 percent of the total 
     cost of retrofitting the building, prorated among individual 
     residential units on the basis of relative costs of the 
     retrofit. In the case of public housing and assisted housing, 
     the 50 percent contribution matching the contribution from 
     REEP program funds may come from any other source, including 
     other Federal funds.
       (iii) Additional awards.--Additional awards may be provided 
     for purposes of increasing energy efficiency, for buildings 
     achieving at least 20 percent energy savings using funding 
     provided under clause (i), in the form of grants of not more 
     than $600 for measures projected or measured (using an 
     appropriate method approved by the Administrator) to achieve 
     at least 35 percent potable water savings through equipment 
     or systems with an estimated service life of not less than 
     seven years, and not more than an additional $20 may be 
     provided for each additional one percent of such savings, up 
     to a maximum total grant of $1,200.
       (B) Nonresidential building program.--
       (i) Awards.--For nonresidential buildings--

       (I) support for a free or low-cost detailed building energy 
     audit that prescribes, as part of a energy-reducing measures 
     sufficient to achieve at least a 20 percent reduction in 
     energy use, by providing an incentive equal to the documented 
     cost of such audit, but not more than $500, in addition to 
     any award earned by achieving a 20 percent or greater 
     efficiency improvement;
       (II) $0.15 per square foot of retrofit area for 
     demonstrated energy use reductions from 20 percent to 30 
     percent;
       (III) $0.75 per square foot for demonstrated energy use 
     reductions from 30 percent to 40 percent;
       (IV) $1.60 per square foot for demonstrated energy use 
     reductions from 40 percent to 50 percent; and
       (V) $2.50 per square foot for demonstrated energy use 
     reductions exceeding 50 percent.

       (ii) Maximum percentage.--Amounts provided under subclauses 
     (II) through (V) of clause (i) combined shall not exceed 50 
     percent of the total retrofit cost of a building. In 
     nonresidential buildings with multiple units, such awards 
     shall be prorated among individual units on the basis of 
     relative costs of the retrofit.
       (iii) Additional awards.--Additional awards may be 
     provided, for buildings achieving at least 20 percent energy 
     savings using funding provided under clause (i), as follows:

       (I) Water.--For purposes of increasing energy efficiency, 
     grants may be made for whole building potable water use 
     reduction (using an appropriate method approved by the 
     Administrator) for up to 50 percent of the total retrofit 
     cost, including amounts up to--

       (aa) $24.00 per thousand gallons per year of potable water 
     savings of 40 percent or more;
       (bb) $27.00 per thousand gallons per year of potable water 
     savings of 50 percent or more; and
       (cc) $30.00 per thousand gallons per year of potable water 
     savings of 60 percent or more.

       (II) Environmental improvements.--Additional awards of up 
     to $1,000 may be granted for the inclusion of other 
     environmental attributes that the Administrator, in 
     consultation with the Secretary, identifies as contributing 
     to energy efficiency. Such attributes may include, but are 
     not limited to waste diversion and the use of environmentally 
     preferable materials (including salvaged, renewable, or 
     recycled materials, and materials with no or low-VOC 
     content). The Administrator may recommend that States develop 
     such standards as are necessary to account for local or 
     regional conditions that may affect the feasibility or 
     availability of identified resources and attributes.

       (iv) Indoor air quality minimum.--Nonresidential buildings 
     receiving incentives under this section must satisfy at a 
     minimum the most recent version of ASHRAE Standard 62.1 for 
     ventilation, or the equivalent as determined by the 
     Administrator. A State may issue a waiver from this 
     requirement to a building project on a showing that such 
     compliance is infeasible due to the physical constraints of 
     the building's existing ventilation system, or such other 
     limitations as may be specified by the Administrator.
       (C) Disaster damaged buildings.--Any source of funds, 
     including Federal funds provided through the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act, shall 
     qualify as the building owner's 50 percent contribution, in 
     order to match the contribution of REEP funds, so long as the 
     REEP funds are only used to improve the energy efficiency of 
     the buildings being reconstructed. In addition, the 
     appropriate Federal agencies providing assistance to building 
     owners through the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act shall make information available, 
     following a disaster, to building owners rebuilding disaster 
     damaged buildings with assistance from the Act, that REEP 
     funds may be used for energy efficiency improvements.
       (D) Historic buildings.--Notwithstanding subparagraphs (A) 
     and (B), a building in or eligible for the National Register 
     of Historic Places shall be eligible for awards under this 
     paragraph in amounts up to 120 percent of the amounts set 
     forth in subparagraphs (A) and (B).
       (E) Supplemental support.--State and local governments may 
     supplement the per-building expenditures under this paragraph 
     with funding from other sources.
       (3) Adjustment.--The Administrator may adjust the specific 
     dollar limits funded by the sale of allowances pursuant to 
     paragraph (2) in years subsequent to the second year after 
     the date of enactment of this Act, and every 2 years 
     thereafter, as the Administrator determines necessary to 
     achieve optimum cost-effectiveness and to maximize incentives 
     to achieve energy efficiency within the total building award 
     amounts provided in that paragraph, and shall publish and 
     hold constant such revised limits for at least 2 years.
       (j) Report to Congress.--The Administrator shall conduct an 
     annual assessment of the achievements of the REEP program in 
     each State, shall prepare an annual report of such 
     achievements and any recommendations for program 
     modifications, and shall provide such report to Congress at 
     the end of each fiscal year during which funding or other 
     resources were made available to the States for the REEP 
     Program.
       (k) Other Sources of Federal Support.--
       (1) Additional state energy program funds.--Any Federal 
     funding provided to a State Energy Program that is not 
     required to be expended for a different federally designated 
     purpose may be used to support a REEP program.
       (2) Program administration.--State Energy Offices or 
     designated State agencies may expend up to 10 percent of 
     available allowance value provided under this section for 
     program administration.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated for the purposes of this section, for each 
     of fiscal years 2010, 2011, 2012, and 2013--

[[Page 16556]]

       (A) $50,000,000 to the Administrator for program 
     administration costs; and
       (B) $20,000,000 to the Secretary of Energy for program 
     administration costs.

     SEC. 203. ENERGY EFFICIENT MANUFACTURED HOMES.

       (a) Definitions.--In this section:
       (1) Manufactured home.--The term ``manufactured home'' has 
     the meaning given such term in section 603 of the National 
     Manufactured Housing Construction and Safety Standards Act of 
     1974 (42 U.S.C. 5402).
       (2) Energy star qualified manufactured home.--The term 
     ``Energy Star qualified manufactured home'' means a 
     manufactured home that has been designed, produced, and 
     installed in accordance with Energy Star's guidelines by an 
     Energy Star certified plant.
       (b) Purpose.--The purpose of this section is to assist low-
     income households residing in manufactured homes constructed 
     prior to 1976 to save energy and energy expenditures by 
     providing support toward the purchase of new Energy Star 
     qualified manufactured homes.
       (c) State Implementation of Program.--
       (1) Manufactured home replacement program.--Any State may 
     provide to the owner of a manufactured home constructed prior 
     to 1976 a rebate to use toward the purchase of a new Energy 
     Star qualified manufactured home pursuant to this section.
       (2) Use of allowances.--Direct Federal support for the 
     program established in this section is provided through the 
     emission allowances allocated to the States' SEED Accounts 
     pursuant to section 132 of this Act. To the extent that a 
     State provides allowances to local governments within the 
     State to implement this program, that shall be deemed a 
     distribution of such allowances to units of local government 
     pursuant to subsection (c)(1) of that section.
       (3) Rebates.--
       (A) Primary residence requirement.--A rebate described 
     under paragraph (1) may only be made to an owner of a 
     manufactured home constructed prior to 1976 that is used on a 
     year-round basis as a primary residence.
       (B) Dismantling and replacement.--A rebate described under 
     paragraph (1) may be made only if the manufactured home 
     constructed prior to 1976 will be--
       (i) rendered unusable for human habitation (including 
     appropriate recycling); and
       (ii) replaced, in the same general location, as determined 
     by the applicable State agency, with an Energy Star qualified 
     manufactured home.
       (C) Single rebate.--A rebate described under paragraph (1) 
     may not be provided to any owner of a manufactured home 
     constructed prior to 1976 that was or is a member of a 
     household for which any other member of the household was 
     provided a rebate pursuant to this section.
       (D) Eligible households.--To be eligible to receive a 
     rebate described under paragraph (1), an owner of a 
     manufactured home constructed prior to 1976 shall demonstrate 
     to the applicable State agency that the total income of all 
     members the owner's household does not exceed 200 percent of 
     the Federal poverty level for income in the applicable area.
       (E) Advance availability.--A rebate may be provided under 
     this section in a manner to facilitate the purchase of a new 
     Energy Star qualified manufactured home.
       (4) Rebate limitation.--Rebates provided by States under 
     this section shall not exceed $7,500 per manufactured home 
     from any value derived from the use of emission allowances 
     provided to the State pursuant to section 132.
       (5) Use of state funds.--A State providing rebates under 
     this section may supplement the amount of such rebates under 
     paragraph (4) by any additional amount is from State funds 
     and other sources, including private donations or grants from 
     charitable organizations.
       (6) Coordination with similar programs.--
       (A) State programs.--A State conducting an existing program 
     that has the purpose of replacing manufactured homes 
     constructed prior to 1976 with Energy Star qualified 
     manufactured homes, may use allowance value provided under 
     section 782 of the Clean Air Act to support such a program, 
     provided such funding does not exceed the rebate limitation 
     amount under paragraph (4).
       (B) Federal programs.--The Secretary of Energy shall 
     coordinate with and seek to achieve the purpose of this 
     section through similar Federal programs including--
       (i) the Weatherization Assistance Program under part A of 
     title IV of the Energy Conservation and Production Act (42 
     U.S.C. 6861 et seq.); and
       (ii) the program under part D of title III of the Energy 
     Policy and Conservation Act (42 U.S.C. 6321 et seq.).
       (C) Coordination with other state agencies.--A State agency 
     using allowance value to administer the program under this 
     section may coordinate its efforts, and share funds for 
     administration, with other State agencies involved in low-
     income housing programs.
       (7) Administrative expenses.--A State using allowance value 
     under this section may expend not more than 10 percent of 
     such value for administrative expenses related to this 
     program.

     SEC. 204. BUILDING ENERGY PERFORMANCE LABELING PROGRAM.

       (a) Establishment.--
       (1) Purpose.--The Administrator shall establish a building 
     energy performance labeling program with broad applicability 
     to the residential and commercial markets to enable and 
     encourage knowledge about building energy performance by 
     owners and occupants and to inform efforts to reduce energy 
     consumption nationwide.
       (2) Components.--In developing such program, the 
     Administrator shall--
       (A) consider existing programs, such as Environmental 
     Protection Agency's Energy Star program, the Home Energy 
     Rating System (HERS) Index, and programs at the Department of 
     Energy;
       (B) support the development of model performance labels for 
     residential and commercial buildings; and
       (C) utilize incentives and other means to spur use of 
     energy performance labeling of public and private sector 
     buildings nationwide.
       (b) Data Assessment for Building Energy Performance.--
       (1) Initial report.--Not later than 90 days after the date 
     of enactment of this Act, the Administrator shall provide to 
     Congress, as well as to the Secretary of Energy and the 
     Office of Management and Budget, a report identifying--
       (A) all principal building types for which statistically 
     significant energy performance data exists to serve as the 
     basis of measurement protocols and labeling requirements for 
     achieved building energy performance; and
       (B) those building types for which additional data are 
     required to enable the development of such protocols and 
     requirements.
       (2) Additional reports.--Additional updated reports shall 
     be provided under this subsection as often as The 
     Administrator considers practicable, but not less than every 
     2 years.
       (c) Building Data Acquisition.--
       (1) Resource requirements.--For all principal building 
     types identified under subsection (b), the Secretary of 
     Energy, not later than 90 days after a report by the 
     Administrator under subsection (b), shall provide to 
     Congress, the Administrator, and the Office of Management and 
     Budget a statement of additional resources needed, if any, to 
     fully develop the relevant data, as well as the anticipated 
     timeline for data development.
       (2) Consultation.--The Secretary of Energy shall consult 
     with the Administrator concerning the Administrator's ability 
     to use data series for these additional building types to 
     support the achieved performance component in the labeling 
     program.
       (3) Improvements to building energy consumption 
     databases.--
       (A) Commercial database.--The Secretary of Energy shall 
     support improvements to the Commercial Buildings Energy 
     Consumption Survey (CBECS) as authorized by section 205(k) of 
     the Department of Energy Organization Act (42 U.S.C. 
     7135(k))--
       (i) to enable complete and robust data for the actual 
     energy performance of principal building types currently 
     covered by survey;
       (ii) to cover additional building types as identified by 
     the Administrator under subsection (b)(1)(B), to enable the 
     development of achieved performance measurement protocols are 
     developed for at least 90 percent of all major commercial 
     building types within 5 years after the date of enactment of 
     this Act; and
       (iii) to include third-party audits of random data 
     samplings to ensure the quality and accuracy of survey 
     information.
       (B) Residential databases.--The Administrator, in 
     consultation with the Energy Information Administration and 
     the Secretary of Energy, shall support improvements to the 
     Residential Energy Consumption Survey (RECS) as authorized by 
     section 205(k) of the Department of Energy Organization Act 
     (42 U.S.C. 7135(k)), or such other residential energy 
     performance databases as the Administrator considers 
     appropriate, to aid the development of achieved performance 
     measurement protocols for residential building energy use for 
     at least 90 percent of the residential market within 5 years 
     after the date of enactment of this Act.
       (C) Consultation.--The Secretary of Energy and the 
     Administrator shall consult with public, private, and 
     nonprofit sector representatives from the building industry 
     and real estate industry to assist in the evaluation and 
     improvement of building energy performance databases and 
     labeling programs.
       (d) Identification of Measurement Protocols for Achieved 
     Performance.--
       (1) Proposed protocols and requirements.--At the earliest 
     practicable date, but not later than 1 year after identifying 
     a building type under subsection (b)(1)(A), the Administrator 
     shall propose a measurement protocol for that building type 
     and a requirement detailing how to use that protocol in 
     completing applicable commercial or residential performance 
     labels created pursuant to this section.
       (2) Final rule.--After providing for notice and comment, 
     the Administrator shall publish a final rule containing a 
     measurement protocol and the corresponding requirements for 
     applying that protocol. Such a rule--
       (A) shall define the minimum period for measurement of 
     energy use by buildings of

[[Page 16557]]

     that type and other details for determining achieved 
     performance, to include leased buildings or parts thereof;
       (B) shall identify necessary data collection and record 
     retention requirements; and
       (C) may specify transition rules and exemptions for classes 
     of buildings within the building type.
       (e) Procedures for Evaluating Designed Performance.--The 
     Administrator shall develop protocols for evaluating the 
     designed performance of individual building types. The 
     Administrator may conduct such feasibility studies and 
     demonstration projects as are necessary to evaluate the 
     sufficiency of proposed protocols for designed performance.
       (f) Creation of Building Energy Performance Labeling 
     Program.--
       (1) Model label.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall propose a 
     model building energy label that provides a format--
       (A) to display achieved performance and designed 
     performance data;
       (B) that may be tailored for residential and commercial 
     buildings, and for single-occupancy and multitenanted 
     buildings; and
       (C) to display other appropriate elements identified during 
     the development of measurement protocols under subsections 
     (d) and (e).
       (2) Inclusions.--Nothing in this section shall require the 
     inclusion on such a label of designed performance data where 
     impracticable or not cost effective, or to preclude the 
     display of both achieved performance and designed performance 
     data for a particular building where both such measures are 
     available, practicable, and cost effective.
       (3) Existing programs.--In developing the model label, the 
     Administrator shall consider existing programs, including--
       (A) the Environmental Protection Agency's Energy Star 
     Portfolio Manager program and the California HERS II Program 
     Custom Approach for the achieved performance component of the 
     label;
       (B) the Home Energy Rating System (HERS) Index system for 
     the designed performance component of the label; and
       (C) other Federal and State programs, including the 
     Department of Energy's related programs on building 
     technologies and those of the Federal Energy Management 
     Program.
       (4) Final rule.--After providing for notice and comment, 
     the Administrator shall publish a final rule containing the 
     label applicable to covered building types.
       (g) Demonstration Projects for Labeling Program.--
       (1) In general.--The Administrator shall conduct building 
     energy performance labeling demonstration projects for 
     different building types--
       (A) to ensure the sufficiency of the current Commercial 
     Buildings Energy Consumption Survey and other data to serve 
     as the basis for new measurement protocols for the achieved 
     performance component of the building energy performance 
     labeling program;
       (B) to inform the development of measurement protocols for 
     building types not currently covered by the Commercial 
     Buildings Energy Consumption Survey; and
       (C) to identify any additional information that needs to be 
     developed to ensure effective use of the model label.
       (2) Participation.--Such demonstration projects shall 
     include participation of--
       (A) buildings from diverse geographical and climate 
     regions;
       (B) buildings in both urban and rural areas;
       (C) single-family residential buildings;
       (D) multihousing residential buildings with more than 50 
     units, including at least one project that provides 
     affordable housing to individuals of diverse incomes;
       (E) single-occupant commercial buildings larger than 30,000 
     square feet;
       (F) multitenanted commercial buildings larger than 50,000 
     square feet; and
       (G) buildings from both the public and private sectors.
       (3) Priority.--Priority in the selection of demonstration 
     projects shall be given to projects that facilitate large-
     scale implementation of the labeling program for samples of 
     buildings across neighborhoods, geographic regions, cities, 
     or States.
       (4) Findings.--The Administrator shall report any findings 
     from demonstration projects under this subsection, including 
     an identification of any areas of needed data improvement, to 
     the Department of Energy's Energy Information Administration 
     and Building Technologies Program.
       (5) Coordination.--The Administrator and the Secretary of 
     Energy shall coordinate demonstration projects undertaken 
     pursuant to this subsection with those undertaken as part of 
     the Zero-Net-Energy Commercial Buildings Initiative adopted 
     under section 422 of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17082).
       (h) Implementation of Labeling Program.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary of Energy, shall work with all State Energy 
     Offices established pursuant to part D of title III of the 
     Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) 
     or other State authorities as necessary for the purpose of 
     implementing the labeling program established under this 
     section for commercial and residential buildings.
       (2) Outreach to local authorities.--The Administrator 
     shall, acting in consultation and coordination with the 
     respective States, encourage use of the labeling program by 
     counties and other localities to broaden access to 
     information about building energy use, for example, through 
     disclosure of building label contents in tax, title, and 
     other records those localities maintain. For this purpose, 
     the Administrator shall develop an electronic version of the 
     label and information that can be readily transmitted and 
     read in widely-available computer programs but is protected 
     from unauthorized manipulation.
       (3) Means of implementation.--In adopting the model 
     labeling program established under this section, a State 
     shall seek to ensure that labeled information be made 
     accessible to the public in a manner so that owners, lenders, 
     tenants, occupants, or other relevant parties can utilize it. 
     Such accessibility may be accomplished through--
       (A) preparation, and public disclosure of the label through 
     filing with tax and title records at the time of--
       (i) a building audit conducted with support from Federal or 
     State funds;
       (ii) a building energy-efficiency retrofit conducted in 
     response to such an audit;
       (iii) a final inspection of major renovations or additions 
     made to a building in accordance with a building permit 
     issued by a local government entity;
       (iv) a sale that is recorded for title and tax purposes 
     consistent with paragraph (8);
       (v) a new lien recorded on the property for more than a set 
     percentage of the assessed value of the property, if that 
     lien reflects public financial assistance for energy-related 
     improvements to that building; or
       (vi) a change in ownership or operation of the building for 
     purposes of utility billing; or
       (B) other appropriate means.
       (4) State implementation of program.--
       (A) Eligibility.--A State may become eligible to utilize 
     allowance value to implement this program by--
       (i) adopting by statute or regulation a requirement that 
     buildings be assessed and labeled, consistent with the 
     labeling requirements of the program established under this 
     section; or
       (ii) adopting a plan to implement a model labeling program 
     consistent with this section within one year of enactment of 
     this Act, including the establishment of that program within 
     3 years after the date of enactment of this Act, and 
     demonstrating continuous progress under that plan.
       (B) Use of allowances.--Direct Federal support for the 
     program established in this section is provided through the 
     emission allowances allocated to the States' SEED Accounts 
     pursuant to section 132 of this Act. To the extent that a 
     State provides allowances to local governments within the 
     State to implement this program, that shall be deemed a 
     distribution of such allowances to units of local government 
     pursuant to subsection (c)(1) of that section.
       (5) Guidance.--The Administrator may create or identify 
     model programs and resources to provide guidance to offer to 
     States and localities for creating labeling programs 
     consistent with the model program established under this 
     section.
       (6) Progress report.--The Administrator, in consultation 
     with the Secretary of Energy, shall provide a progress report 
     to Congress not later than 3 years after the date of 
     enactment of this Act that--
       (A) evaluates the effectiveness of efforts to advance use 
     of the model labeling program by States and localities;
       (B) recommends any legislative changes necessary to broaden 
     the use of the model labeling program; and
       (C) identifies any changes to broaden the use of the model 
     labeling program that the Administrator has made or intends 
     to make that do not require additional legislative authority.
       (7) State information.--The Administrator may require 
     States to report to the Administrator information that the 
     Administrator requires to provide the report required under 
     paragraph (6).
       (8) Prevention of disruption of sales transactions.--No 
     State shall implement a new labeling program pursuant to this 
     section in a manner that requires the labeling of a building 
     to occur after a contract has been executed for the sale of 
     that building and before the sales transaction is completed.
       (i) Implementation of Labeling Program in Federal 
     Buildings.--
       (1) Use of labeling program.--The Secretary of Energy and 
     the Administrator shall use the labeling program established 
     under this section to evaluate energy performance in the 
     facilities of the Department of Energy and the Environmental 
     Protection Agency, respectively, to the extent practicable, 
     and shall encourage and support implementation efforts in 
     other Federal agencies.
       (2) Annual progress report.--The Secretary of Energy and 
     Administrator shall provide an annual progress report to 
     Congress and the Office of Management and Budget detailing 
     efforts to implement this subsection, as well as any best 
     practices or needed resources identified as a result of such 
     efforts.

[[Page 16558]]

       (j) Public Outreach.--The Secretary of Energy and the 
     Administrator, in consultation with nonprofit and industry 
     stakeholders with specialized expertise, and in conjunction 
     with other energy efficiency public awareness efforts, shall 
     establish a business and consumer education program to 
     increase awareness about the importance of building energy 
     efficiency and to facilitate widespread use of the labeling 
     program established under this section.
       (k) Definitions.--In this section:
       (1) Building type.--The term ``building type'' means a 
     grouping of buildings as identified by their principal 
     building activities, or as grouped by their use, including 
     office buildings, laboratories, libraries, data centers, 
     retail establishments, hotels, warehouses, and educational 
     buildings.
       (2) Measurement protocol.--The term ``measurement 
     protocol'' means the methodology, prescribed by the 
     Administrator, for defining a benchmark for building energy 
     performance for a specific building type and for measuring 
     that performance against the benchmark.
       (3) Achieved performance.--The term ``achieved 
     performance'' means the actual energy consumption of a 
     building as compared to a baseline building of the same type 
     and size, determined by actual consumption data normalized 
     for appropriate variables.
       (4) Designed performance.--The term ``designed 
     performance'' means the energy consumption performance a 
     building would achieve if operated consistent with its design 
     intent for building energy use, utilizing a standardized set 
     of operational conditions informed by data collected or 
     confirmed during an energy audit.
       (l) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) to the Administrator $50,000,000 for implementation of 
     this section for each fiscal year from 2010 through 2020; and
       (2) to the Secretary of Energy $20,000,000 for 
     implementation of this section for fiscal year 2010 and 
     $10,000,000 for fiscal years 2011 through 2020.
       (m) New Construction.--This section shall apply only to 
     construction beginning after the date of enactment of this 
     Act.

     SEC. 205. TREE PLANTING PROGRAMS.

       (a) Findings.--The Congress finds that--
       (1) the utility sector is the largest single source of 
     greenhouse gas emissions in the United States today, 
     producing approximately one-third of the country's emissions;
       (2) heating and cooling homes accounts for nearly 60 
     percent of residential electricity usage in the United 
     States;
       (3) shade trees planted in strategic locations can reduce 
     residential cooling costs by as much as 30 percent;
       (4) shade trees have significant clean-air benefits 
     associated with them;
       (5) every 100 healthy large trees removes about 300 pounds 
     of air pollution (including particulate matter and ozone) and 
     about 15 tons of carbon dioxide from the air each year;
       (6) tree cover on private property and on newly-developed 
     land has declined since the 1970s, even while emissions from 
     transportation and industry have been rising; and
       (7) in over a dozen test cities across the United States, 
     increasing urban tree cover has generated between two and 
     five dollars in savings for every dollar invested in such 
     tree planting.
       (b) Definitions.--As used in this section:
       (1) The term ``Secretary'' refers to the Secretary of 
     Energy.
       (2) The term ``retail power provider'' means any entity 
     authorized under applicable State or Federal law to generate, 
     distribute, or provide retail electricity, natural gas, or 
     fuel oil service.
       (3) The term ``tree-planting organization'' means any 
     nonprofit or not-for-profit group which exists, in whole or 
     in part, to--
       (A) expand urban and residential tree cover;
       (B) distribute trees for planting;
       (C) increase awareness of the environmental and energy-
     related benefits of trees;
       (D) educate the public about proper tree planting, care, 
     and maintenance strategies; or
       (E) carry out any combination of the foregoing activities.
       (4) The term ``tree-siting guidelines'' means a 
     comprehensive list of science-based measurements outlining 
     the species and minimum distance required between trees 
     planted pursuant to this section, in addition to the minimum 
     required distance to be maintained between such trees and--
       (A) building foundations;
       (B) air conditioning units;
       (C) driveways and walkways;
       (D) property fences;
       (E) preexisting utility infrastructure;
       (F) septic systems;
       (G) swimming pools; and
       (H) other infrastructure as deemed appropriate.
       (5) The terms ``small office'', ``small office buildings'', 
     and ``small office settings'' means nonresidential buildings 
     or structures zoned for business purposes that are 20,000 
     square feet or less in total area.
       (c) Purposes.--The purpose of this section is to establish 
     a grant program to assist retail power providers with the 
     establishment and operation of targeted tree-planting 
     programs in residential and small office settings, for the 
     following purposes:
       (1) Reducing the peak-load demand for electricity from 
     residences and small office buildings during the summer 
     months through direct shading of buildings provided by 
     strategically planted trees.
       (2) Reducing wintertime demand for energy from residences 
     and small office buildings by blocking cold winds from 
     reaching such structures, which lowers interior temperatures 
     and drives heating demand.
       (3) Protecting public health by removing harmful pollution 
     from the air.
       (4) Utilizing the natural photosynthetic and transpiration 
     process of trees to lower ambient temperatures and absorb 
     carbon dioxide, thus mitigating the effects of climate 
     change.
       (5) Lowering electric bills for residential and small 
     office ratepayers by limiting electricity consumption without 
     reducing benefits.
       (6) Relieving financial and demand pressure on retail power 
     providers that stems from large peak-load energy demand.
       (7) Protecting water quality and public health by reducing 
     stormwater runoff and keeping harmful pollutants from 
     entering waterways.
       (8) Ensuring that trees are planted in locations that limit 
     the amount of public money needed to maintain public and 
     electric infrastructure.
       (d) General Authority.--
       (1) Assistance.--The Secretary is authorized to provide 
     financial, technical, and related assistance to retail power 
     providers to assist with the establishment of new, or 
     continued operation of existing, targeted tree-planting 
     programs for residences and small office buildings.
       (2) Public recognition initiative.--In carrying out the 
     authority provided under this section, the Secretary shall 
     also create a national public recognition initiative to 
     encourage participation in tree-planting programs by retail 
     power providers.
       (3) Eligibility.--Only those programs which utilize 
     targeted, strategic tree-siting guidelines to plant trees in 
     relation to building location, sunlight, and prevailing wind 
     direction shall be eligible for assistance under this 
     section.
       (4) Requirements.--In order to qualify for assistance under 
     this section, a tree-planting program shall meet each of the 
     following requirements:
       (A) The program shall provide free or discounted shade-
     providing or wind-reducing trees to residential and small 
     office consumers interested in lowering their home energy 
     costs.
       (B) The program shall optimize the electricity-consumption 
     reduction benefit of each tree by planting in strategic 
     locations around a given residence or small office.
       (C) The program shall either--
       (i) provide maximum amounts of shade during summer 
     intervals when residences and small offices are exposed to 
     the most sun intensity; or
       (ii) provide maximum amounts of wind protection during fall 
     and winter intervals when residences and small offices are 
     exposed to the most wind intensity.
       (D) The program shall use the best available science to 
     create tree siting guidelines which dictate where the optimum 
     tree species are best planted in locations that achieve 
     maximum reductions in consumer energy demand while causing 
     the least disruption to public infrastructure, considering 
     overhead and underground facilities.
       (E) The program shall receive certification from the 
     Secretary that it is designed to achieve the goals set forth 
     in subparagraphs (A) through (D). In designating criteria for 
     such certification, the Secretary shall collaborate with the 
     United States Forest Service's Urban and Community Forestry 
     Program to ensure that certification requirements are 
     consistent with such above goals.
       (5) New program funding share.--The Secretary shall ensure 
     that no less than 30 percent of the funds made available 
     under this section are distributed to retail power providers 
     which--
       (A) have not previously established or operated qualified 
     tree-planting programs; or
       (B) are operating qualified tree-planting programs which 
     were established no more than three years prior to the date 
     of enactment of this section.
       (e) Agreements Between Electricity Providers and Tree-
     planting Organizations.--
       (1) Grant authorization.--In providing assistance under 
     this section, the Secretary is authorized to award grants 
     only to retail power providers that have entered into binding 
     legal agreements with nonprofit tree-planting organizations.
       (2) Conditions of agreement.--Those agreements between 
     retail power providers and tree-planting organizations shall 
     set forth conditions under which nonprofit tree-planting 
     organizations shall provide targeted tree-planting programs 
     which may require these organizations to--
       (A) participate in local technical advisory committees 
     responsible for drafting general tree-siting guidelines and 
     choosing the most effective species of trees to plant in 
     given locations;
       (B) coordinate volunteer recruitment to assist with the 
     physical act of planting trees in residential locations;

[[Page 16559]]

       (C) undertake public awareness campaigns to educate local 
     residents about the benefits, cost savings, and availability 
     of free shade trees;
       (D) establish education and information campaigns to 
     encourage recipients to maintain their shade trees over the 
     long term;
       (E) serve as the point of contact for existing and 
     potential residential participants who have questions or 
     concerns regarding the tree-planting program;
       (F) require tree recipients to sign agreements committing 
     to voluntary stewardship and care of provided trees;
       (G) monitor and report on the survival, growth, overall 
     health, and estimated energy savings of provided trees up 
     until the end of their establishment period which shall be no 
     less than five years; and
       (H) ensure that trees planted near existing power lines 
     will not interfere with energized electricity distribution 
     lines when mature, and that no new trees will be planted 
     under or adjacent to high-voltage electric transmission lines 
     without prior consultation with the applicable retail power 
     provider receiving assistance under this section.
       (3) Lack of nonprofit organization.--If qualified nonprofit 
     or not-for-profit tree planting organizations do not exist or 
     operate within areas served by retail power providers 
     applying for assistance under this section, the requirements 
     of this section shall apply to binding legal agreements 
     entered into by such retail power providers and one of the 
     following entities:
       (A) Local municipal governments with jurisdiction over the 
     urban or suburban forest.
       (B) The State Forester for the State in which the tree 
     planting program will operate.
       (C) The United States Forest Service's Urban and Community 
     Forestry representative for the State in which the tree-
     planting program will operate.
       (D) A landscaping services company that is--
       (i) identified in consultation with a national or State 
     nonprofit or not-for-profit tree-planting organization;
       (ii) licensed to operate in the State in which the tree-
     planting program will operate; and
       (iii) a business as defined by the United States Census 
     Bureau's 2007 North American Industry Classification System 
     Code 561730.
       (f) Technical Advisory Committees.--
       (1) Description.--In order to qualify for assistance under 
     this section, the retail power provider shall establish and 
     consult with a local technical advisory committee which shall 
     provide advice and consultation to the program, and may--
       (A) design and adopt an approved plant list that emphasizes 
     the use of hardy, noninvasive tree species and, where 
     geographically appropriate, the use of native, or site-
     adapted, or low water-use shade trees;
       (B) design and adopt planting, installation, and 
     maintenance specifications and create a process for 
     inspection and quality control;
       (C) ensure that tree recipients are educated to care for 
     and maintain their trees over the long term;
       (D) help the public become more engaged and educated in the 
     planting and care of shade trees;
       (E) prioritize which sites receive trees, giving preference 
     to locations with the most potential for energy conservation 
     and secondary preference to areas where the average annual 
     income is below the regional median; and
       (F) assist with monitoring and collection of data on tree 
     health, tree survival, and energy conservation benefits 
     generated under this section.
       (2) Compensation.--Individuals serving on local technical 
     advisory committees shall not receive compensation for their 
     service.
       (3) Composition.--Local technical advisory committees shall 
     be composed of representatives from public, private, and 
     nongovernmental agencies with expertise in demand-side energy 
     efficiency management, urban forestry, or arboriculture, and 
     shall be composed of the following:
       (A) Up to 4 persons, but no less than one person, 
     representing the retail power provider receiving assistance 
     under this section.
       (B) Up to 4 persons, but no less than one person, 
     representing the local tree-planting organization which will 
     partner with the retail power provider to carry out this 
     section.
       (C) Up to 3 persons representing local nonprofit 
     conservation or environmental organizations. Preference shall 
     be given to those entities which are organized under section 
     501(c)(3) of the Internal Revenue Code of 1986, and which 
     have demonstrated expertise engaging the public in energy 
     conservation, energy efficiency, or green building practices 
     or a combination thereof, such that no single organization is 
     represented by more than one individual under this paragraph.
       (D) Up to 2 persons representing a local affordable housing 
     agency, affordable housing builder, or community development 
     corporation.
       (E) Up to 3, but no less than one, persons representing 
     local city or county government for each municipality where a 
     shade tree-planting program will take place; at least one of 
     these representatives shall be the city or county forester, 
     city or county arborist, or functional equivalent.
       (F) Up to one person representing the local government 
     agency responsible for management of roads, sewers, and 
     infrastructure, including but not limited to public works 
     departments, transportation agencies, or equivalents.
       (G) Up to 3 persons representing the nursery and 
     landscaping industry.
       (H) Up to 3 persons representing the research community or 
     academia with expertise in natural resources or energy 
     management issues.
       (4) Chairperson.--Each local technical advisory committee 
     shall elect a chairperson to preside over Committee meetings, 
     act as a liaison to governmental and other outside entities, 
     and direct the general operation of the committee; only 
     committee representatives from paragraph (3)(A) or paragraph 
     (3)(B) of this subsection shall be eligible to act as local 
     technical advisory committee chairpersons.
       (5) Credentials.--At least one of the members of each local 
     technical advisory committee shall be certified with one or 
     more of the following credentials: International Society of 
     Arboriculture; Certified Arborist, ISA; Certified Arborist 
     Municipal Specialist, ISA; Certified Arborist Utility 
     Specialist, ISA; Board Certified Master Arborist; or 
     Registered Landscape Architect recommended by the American 
     Society of Landscape Architects.
       (g) Cost-share Program.--
       (1) Federal share.--The Federal share of support for 
     projects funded under this section shall not exceed 50 
     percent of the cost of such project and shall be provided on 
     a matching basis.
       (2) Non-federal share.--The non-Federal share of such costs 
     may be paid or contributed by any governmental or 
     nongovernmental entity other than from funds derived directly 
     or indirectly from an agency or instrumentality of the United 
     States.
       (h) Rulemaking.--
       (1) Rulemaking period.--The Secretary shall be authorized 
     to solicit comments and initiate a rulemaking period that 
     shall last no more than 6 months after the date of enactment 
     of this section.
       (2) Competitive grant rule.--At the conclusion of the 
     rulemaking period under paragraph (1), the Secretary shall 
     promulgate a rule governing a public, competitive grants 
     process through which retail power providers may apply for 
     Federal support under this section.
       (i) Nonduplicity.--Nothing in this section shall be 
     construed to supersede, duplicate, cancel, or negate the 
     programs or authorities provided under section 9 of the 
     Cooperative Forestry Assistance Act of 1978 (92 Stat. 369; 
     Public Law 95-313; 16 U.S.C. 2105).
       (j) Authorization of Appropriations.--There are hereby 
     authorized to be appropriated such sums as may be necessary 
     for the implementation of this section.

     SEC. 206. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

       Section 453(c)(1) of the Energy Independence and Security 
     Act of 2007 (42 U.S.C. 17112(c)(1)) is amended by inserting 
     ``but not later than 2 years after the date of enactment of 
     this Act'' after ``described in subsection (b)''.

     SEC. 207. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

       (a) Grant Program Authorized.--
       (1) Grant authorization.--The Secretary of Housing and 
     Urban Development shall to the extent amounts are made 
     available for grants under this section provide grants to 
     local building code enforcement departments.
       (2) Competitive awards.--The Secretary shall award grants 
     under paragraph (1) on a competitive basis taking into 
     consideration the following:
       (A) The financial need of each building code enforcement 
     department.
       (B) The benefit to the jurisdiction of having an adequately 
     funded building code enforcement department.
       (C) The demonstrated ability of each building code 
     enforcement department to work cooperatively with other local 
     code enforcement offices, health departments, and local 
     prosecutorial agencies.
       (3) Maximum amount.--The maximum amount of any grant 
     awarded under this subsection shall not exceed $1,000,000.
       (4) Coordination.--The Secretary of Housing and Urban 
     Development shall coordinate with the Secretary of Energy to 
     ensure that any unnecessarily duplicative funding through 
     grants under this section of activities otherwise funded 
     through the Department of Energy is minimized or eliminated.
       (b) Required Elements in Grant Proposals.--In order to be 
     eligible for a grant under subsection (a), a building code 
     enforcement department of a jurisdiction shall submit to the 
     Secretary the following:
       (1) A demonstration of the jurisdiction's needs in 
     executing building code enforcement administration.
       (2) A plan for the use of any funds received from a grant 
     under this section that addresses the needs discussed in 
     paragraph (1) and that is consistent with the authorized uses 
     established in subsection (c).
       (3) A plan for local governmental actions to be taken to 
     establish and sustain local building code enforcement 
     administration functions, without continuing Federal support, 
     at a level at least equivalent to that proposed in the grant 
     application.

[[Page 16560]]

       (4) A plan to create and maintain a program of public 
     outreach that includes a regularly updated and readily 
     accessible means of public communication, interaction, and 
     reporting regarding the services and work of the building 
     code enforcement department to be supported by the grant.
       (5) A plan for ensuring the timely and effective 
     administrative enforcement of building safety and fire 
     prevention violations.
       (c) Use of Funds; Matching Funds.--
       (1) Authorized uses.--Amounts from grants awarded under 
     subsection (a) may be used by the grant recipient to 
     supplement existing State or local funding for administration 
     of building code enforcement, or to supplement allowance 
     value received pursuant to this Act for implementation and 
     enforcement of energy efficiency building codes. Such amounts 
     may be used to increase staffing, provide staff training, 
     increase staff competence and professional qualifications, or 
     support individual certification or departmental 
     accreditation, or for capital expenditures specifically 
     dedicated to the administration of the building code 
     enforcement department.
       (2) Additional requirement.--Each building code enforcement 
     department receiving a grant under subsection (a) shall 
     empanel a code administration and enforcement team consisting 
     of at least 1 full-time building code enforcement officer, a 
     city planner, and a health planner or similar officer.
       (3) Matching funds required.--
       (A) In general.--To be eligible to receive a grant under 
     this section, a building code enforcement department shall 
     provide matching, non-Federal funds in the following amount:
       (i) In the case of a building code enforcement department 
     serving an area with a population of more than 50,000, an 
     amount equal to not less than 50 percent of the total amount 
     of any grant to be awarded under this section.
       (ii) In the case of a building code enforcement department 
     serving an area with a population of between 20,001 and 
     50,000, an amount equal to not less than 25 percent of the 
     total amount of any grant to be awarded under this section.
       (iii) In the case of a building code enforcement department 
     serving an area with a population of less than 20,000, an 
     amount equal to not less than 12.5 percent of the total 
     amount of any grant to be awarded under this section.
       (B) Economic distress.--
       (i) In general.--The Secretary may waive the matching fund 
     requirements under subparagraph (A), and institute, by 
     regulation, new matching fund requirements based upon the 
     level of economic distress of the jurisdiction in which the 
     local building code enforcement department seeking such grant 
     is located.
       (ii) Content of regulations.--Any regulations instituted 
     under clause (i) shall include--

       (I) a method that allows for a comparison of the degree of 
     economic distress among the local jurisdictions of grant 
     applicants, as measured by the differences in the extent of 
     growth lag, the extent of poverty, and the adjusted age of 
     housing in such jurisdiction; and
       (II) any other factor determined to be relevant by the 
     Secretary in assessing the comparative degree of economic 
     distress among such jurisdictions.

       (4) In-kind contributions.--In determining the non-Federal 
     share required to be provided under paragraph (3), the 
     Secretary shall consider in-kind contributions, not to exceed 
     50 percent of the amount that the department contributes in 
     non-Federal funds.
       (5) Waiver of matching requirement.--The Secretary shall 
     waive the matching fund requirements under paragraph (3) for 
     any recipient jurisdiction that has dedicated all building 
     code permitting fees to the conduct of local building code 
     enforcement.
       (d) Evaluation and Report.--
       (1) In general.--Grant recipients under this section 
     shall--
       (A) be obligated to fully account and report for the use of 
     all grants funds; and
       (B) provide a report to the Secretary on the effectiveness 
     of the program undertaken by the grantee and any other 
     criteria requested by the Secretary for the purpose of 
     indicating the effectiveness of, and ideas for, refinement of 
     the grant program.
       (2) Report.--The report required under paragraph (1)(B) 
     shall include a discussion of--
       (A) the specific capabilities and functions in local 
     building code enforcement administration that were addressed 
     using funds received under this section;
       (B) the lessons learned in carrying out the plans supported 
     by the grant; and
       (C) the manner in which the programs supported by the grant 
     are to be maintained by the grantee.
       (3) Content of reports.--The Secretary shall--
       (A) require each recipient of a grant under this section to 
     file interim and final reports under paragraph (2) to ensure 
     that grant funds are being used as intended and to measure 
     the effectiveness and benefits of the grant program; and
       (B) develop and maintain a means whereby the public can 
     access such reports, at no cost, via the Internet.
       (e) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Building code enforcement.--The term ``building code 
     enforcement'' means the enforcement of any code, adopted by a 
     State or local government, that regulates the construction of 
     buildings and facilities to mitigate hazards to life or 
     property. Such term includes building codes, electrical 
     codes, energy codes, fire codes, fuel gas codes, mechanical 
     codes, and plumbing codes.
       (2) Building code enforcement department.--The term 
     ``building code enforcement department'' means an inspection 
     or enforcement agency of a jurisdiction that is responsible 
     for conducting building code enforcement.
       (3) Jurisdiction.--The term ``jurisdiction'' means a city, 
     county, parish, city and county authority, or city and parish 
     authority having local authority to enforce building codes 
     and regulations and to collect fees for building permits.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (f) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated 
     $20,000,000 for each of fiscal years 2010 through 2014 to the 
     Secretary of Housing and Urban Development to carry out the 
     provisions of this section.
       (2) Reservation.--From the amount made available under 
     paragraph (1), the Secretary may reserve not more than 5 
     percent for administrative costs.
       (3) Availability.--Any funds appropriated pursuant to 
     paragraph (1) shall remain available until expended.

     SEC. 208. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS 
                   FOR RECEIPT OF COMMUNITY DEVELOPMENT BLOCK 
                   GRANT FUNDS.

       Section 104 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5304) is amended by adding at the end the 
     following new subsection:
       ``(n) Requirements for Building Permits Regarding Solar 
     Energy Systems.--
       ``(1) In general.--A grant under section 106 for a fiscal 
     year may be made only if the grantee certifies to the 
     Secretary that--
       ``(A) in the case of a grant under section 106(a) for any 
     Indian tribe or insular area, during such fiscal year the 
     cost of any permit or license, for construction or 
     installation of any solar energy system for any structure, 
     that is required by the tribe or insular area or by any other 
     unit of general local government or other political 
     subdivision of such tribe or insular area, complies with 
     paragraph (2);
       ``(B) in the case of a grant under section 106(b) for any 
     metropolitan city or urban county, during such fiscal year 
     the cost of any permit or license, for construction or 
     installation of any solar energy system for any structure, 
     that is required by the metropolitan city or urban county, or 
     by any other political subdivision of such city or county, 
     complies with paragraph (2); and
       ``(C) in the case of a grant under section 106(d) for any 
     State, during such fiscal year the cost of any permit or 
     license, for construction or installation of any solar energy 
     system for any structure, that is required by the State, or 
     by any other unit of general local government within any 
     nonentitlement area of such State, or other political 
     subdivision within any nonentitlement area of such State or 
     such a unit of general local government, complies with 
     paragraph (2).
       ``(2) Limitation on cost.--The cost of permit or license 
     for construction or installation of any solar energy system 
     complies with this paragraph only if such cost does not 
     exceed the following amount:
       ``(A) Residential structures.--In the case of a structure 
     primarily for residential use, $500.
       ``(B) Nonresidential structures.--In the case of a 
     structure primarily for nonresidential use, 1.0 percent of 
     the total cost of the installation or construction of the 
     solar energy system, but not in excess of $10,000.
       ``(3) Noncompliance.--If the Secretary determines that a 
     grantee of a grant made under section 106 is not in 
     compliance with a certification under paragraph (1)--
       ``(A) the Secretary shall notify the grantee of such 
     determination; and
       ``(B) if the grantee has not corrected such noncompliance 
     before the expiration of the 6-month period beginning upon 
     notification under subparagraph (A), such grantee shall not 
     be eligible for 5 percent of any amounts awarded under a 
     grant under section 106 for the first fiscal year that 
     commences after the expiration of such 6-month period.
       ``(4) Solar energy system.--For purposes of this 
     subsection, the term `solar energy system' means, with 
     respect to a structure, equipment that uses solar energy to 
     generate electricity for, or to heat or cool (or provide hot 
     water for use in), such structure.''.

     SEC. 209. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL 
                   INSTALLATION OF SOLAR ENERGY SYSTEM.

       (a) Regulations.--Within 180 days after the enactment of 
     this Act, the Secretary of Housing and Urban Development, in 
     consultation with the Secretary of Energy, shall issue 
     regulations--

[[Page 16561]]

       (1) to prohibit any private covenant, contract provision, 
     lease provision, homeowners' association rule or bylaw, or 
     similar restriction, that impairs the ability of the owner or 
     lessee of any residential structure designed for occupancy by 
     1 family to install, construct, maintain, or use a solar 
     energy system on such residential property; and
       (2) to require that whenever any such covenant, provision, 
     rule or bylaw, or restriction requires approval for the 
     installation or use of a solar energy system, the application 
     for approval shall be processed and approved by the 
     appropriate approving entity in the same manner as an 
     application for approval of an architectural modification to 
     the property, and shall not be willfully avoided or delayed.
       (b) Contents.--The regulations required under subsection 
     (a) shall provide that--
       (1) such a covenant, provision, rule or bylaw, or 
     restriction impairs the installation, construction, 
     maintenance, or use of a solar energy system if it--
       (A) unreasonably delays or prevents installation, 
     maintenance, or use;
       (B) unreasonably increases the cost of installation, 
     maintenance, or use; or
       (C) precludes use of such a system; and
       (2) any fee or cost imposed on the owner or lessee of such 
     a residential structure by such a covenant, provision, rule 
     or bylaw, or restriction shall be considered unreasonable 
     if--
       (A) such fee or cost is not reasonable in comparison to the 
     cost of the solar energy system or the value of its use; or
       (B) treatment of solar energy systems by the covenant, 
     provision, rule or bylaw, or restriction is not reasonable in 
     comparison with treatment of comparable systems by the same 
     covenant, provision, rule or bylaw, or restriction.
       (c) Solar Energy System.--For purposes of this section, the 
     term ``solar energy system'' means, with respect to a 
     structure, equipment that uses solar energy to generate 
     electricity for, or to heat or cool (or provide hot water for 
     use in), such structure.

     Subtitle B--Lighting and Appliance Energy Efficiency Programs

     SEC. 211. LIGHTING EFFICIENCY STANDARDS.

       (a) Outdoor Lighting.--
       (1) Definitions.--
       (A) Section 340(1) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6311(1)) is amended by striking subparagraph 
     (L) and inserting the following:
       ``(L) Outdoor luminaires.
       ``(M) Outdoor high light output lamps.
       ``(N) Any other type of industrial equipment which the 
     Secretary classifies as covered equipment under section 
     341(b).''.
       (B) Section 340 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6311) is amended as adding at the end the 
     following:
       ``(25) The term `luminaire' means a complete lighting unit 
     consisting of one or more light sources and ballast(s), 
     together with parts designed to distribute the light, to 
     position and protect such lamps, and to connect such light 
     sources to the power supply.
       ``(26) The term `outdoor luminaire' means a luminaire that 
     is listed as suitable for wet locations pursuant to 
     Underwriters Laboratories Inc. standard UL 1598 and is 
     labeled as `Suitable for Wet Locations' consistent with 
     section 410.4(A) of the National Electrical Code 2005, or is 
     designed for roadway illumination and meets the requirements 
     of Addendum A for IESNA TM-15-07: Backlight, Uplight, and 
     Glare (BUG) Ratings, except for--
       ``(A) luminaires designed for outdoor video display images 
     that cannot be used in general lighting applications;
       ``(B) portable luminaires designed for use at construction 
     sites;
       ``(C) luminaires designed for continuous immersion in 
     swimming pools and other water features;
       ``(D) seasonal luminaires incorporating solely individual 
     lamps rated at 10 watts or less;
       ``(E) luminaires designed to be used in emergency 
     conditions that incorporate a means of charging a battery and 
     a device to switch the power supply to emergency lighting 
     loads automatically upon failure of the normal power supply;
       ``(F) components used for repair of installed luminaries 
     and that meet the requirements of section 342(h);
       ``(G) a luminaire utilizing an electrode-less fluorescent 
     lamp as the light source;
       ``(H) decorative gas lighting systems;
       ``(I) luminaires designed explicitly for lighting for 
     theatrical purposes, including performance, stage, film 
     production, and video production;
       ``(J) luminaires designed as theme elements in theme/
     amusement parks and that cannot be used in most general 
     lighting applications;
       ``(K) luminaires designed explicitly for vehicular roadway 
     tunnels designed to comply with ANSI/IESNA RP-22-05;
       ``(L) luminaires designed explicitly for hazardous 
     locations meeting UL Standard 844;
       ``(M) searchlights;
       ``(N) luminaires that are designed to be recessed into a 
     building, and that cannot be used in most general lighting 
     applications;
       ``(O) a luminaire rated only for residential applications 
     utilizing a light source or sources regulated under the 
     amendments made by section 321 of the Energy Independence and 
     Security Act of 2007 and with a light output no greater than 
     2,600 lumens;
       ``(P) a residential pole-mounted luminaire that is not 
     rated for commercial use utilizing a light source or sources 
     meeting the efficiency requirements of section 231 of the 
     Energy Independence and Security Act of 2007 and mounted on a 
     post or pole not taller than 10.5 feet above ground and with 
     a light output not greater than 2,600 lumens;
       ``(Q) a residential fixture with E12 (Candelabra) bases 
     that is rated for not more than 300 watts total; or
       ``(R) a residential fixture with medium screw bases that is 
     rated for not more than 145 watts.
       ``(27) The term `outdoor high light outputlamp' means a 
     lamp that--
       ``(A) has a rated lumen output not less than 2601 lumens;
       ``(B) is capable of being operated at a voltage not less 
     than 110 volts and not greater than 300 volts, or driven at a 
     constant current of 6.6 amperes;
       ``(C) is not a Parabolic Aluminized Reflector lamp; and
       ``(D) is not a J-type double-ended (T-3) halogen quartz 
     lamp, utilizing R-7S bases, that is manufactured before 
     January 1, 2015.
       ``(28) The term `outdoor lighting control' means a device 
     incorporated in a luminaire that receives a signal, from 
     either a sensor (such as an occupancy sensor, motion sensor, 
     or daylight sensor) or an input signal (including analog or 
     digital signals communicated through wired or wireless 
     technology), and can adjust the light level according to the 
     signal.''.
       (2) Standards.-- Section 342 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313) is amended by adding at the 
     end the following:
       ``(g) Outdoor Luminaires.--
       ``(1) Each outdoor luminaire manufactured on or after 
     January 1, 2011, shall--
       ``(A) have an initial luminaire efficacy of at least 50 
     lumens per watt; and
       ``(B) be designed to use a light source with a lumen 
     maintenance, calculated as mean rated lumens divided by 
     initial lumens, of at least 0.6.
     ``(2) Each outdoor luminaire manufactured on or after January 
     1, 2018, shall--
     ``(A) have an initial luminaire efficacy of at least 70 
     lumens per watt; and
     ``(B) be designed to use a light source with a lumen 
     maintenance, calculated as mean rated lumens divided by 
     initial lumens, of at least 0.6.
       ``(3) In addition to the requirements of paragraphs (1) 
     through (3), each outdoor luminaire manufactured on or after 
     January 1, 2016, shall have the capability of producing at 
     least two different light levels, including 100 percent and 
     60 percent of full lamp output as tested with the maximum 
     rated lamp per UL1598 or the manufacturer's maximum specified 
     for the luminaire under test, outdoor luminaires used for 
     roadway lighting applications shall be exempt from the 2 
     light level requirements.
       ``(4)(A) Not later than January 1, 2022, the Secretary 
     shall issue a final rule amending the applicable standards 
     established in paragraph (3) if technologically feasible and 
     economically justified.
       ``(B) A final rule issued under subparagraph (A) shall 
     establish efficiency standards at the maximum level that is 
     technically feasible and economically justified, as provided 
     in subsections (o) and (p) of section 325. The Secretary may 
     also, in such rulemaking, amend or discontinue the product 
     exclusions listed in section 340(26)(A) through (P), or amend 
     the lumen maintenance requirements in paragraph (2) if the 
     Secretary determines that such amendments are consistent with 
     the purposes of this Act.
       ``(C) If the Secretary issues a final rule under 
     subparagraph (A) establishing amended standards, the final 
     rule shall provide that the amended standards apply to 
     products manufactured on or after January 1, 2025, or one 
     year after the date on which the final amended standard is 
     published, whichever is later.
       ``(h) Outdoor High Light Output Lamps.--Each outdoor high 
     light output lamp manufactured on or after January 1, 2017, 
     shall have a lighting efficiency of at least 45 lumens per 
     watt.''.
       (3) Test procedures.-- Section 343(a) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6314(a)) is amended by adding 
     at the end the following:
       ``(10) Outdoor lighting.--
       ``(A) With respect to outdoor luminaires and outdoor high 
     light output lamps, the test procedures shall be based upon 
     the test procedures specified in illuminating engineering 
     society procedures LM-79 as of March 1, 2009, and LM-31, and/
     or other appropriate consensus test procedures developed by 
     the Illuminating Engineering Society or other appropriate 
     consensus standards bodies.
       ``(B) If illuminating engineering society procedure LM--79 
     is amended, the Secretary shall amend the test procedures 
     established in subparagraph (A) as necessary to be consistent 
     with the amended LM-79 test procedure, unless the Secretary 
     determines, by rule, published in the Federal Register and 
     supported by clear and convincing evidence,

[[Page 16562]]

     that to do so would not meet the requirements for test 
     procedures under paragraph (2).
       ``(C) The Secretary may revise the test procedures for 
     outdoor luminaires or outdoor high light output lamps by rule 
     consistent with paragraph (2), and may incorporate as 
     appropriate consensus test procedures developed by the 
     Illuminating Engineering Society or other appropriate 
     consensus standards bodies.''.
       (4) Preemption.-- Section 345 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6316) is amended by adding at the 
     end the following:
       ``(i)(1) Except as provided in paragraph (2), section 327 
     shall apply to outdoor luminaires to the same extent and in 
     the same manner as the section applies under part B.
       ``(2) Any State standard that is adopted on or before 
     January 1, 2015, pursuant to a statutory requirement to adopt 
     efficiency standards for reducing outdoor lighting energy use 
     enacted prior to January 31, 2008, shall not be preempted.''.
       (5) Energy efficiency standards for certain luminaires.--
     Not later than 1 year after the date of enactment of this 
     Act, the Secretary of Energy shall, in consultation with the 
     National Electrical Manufacturers Association, collect data 
     for United States sales of luminaires described in section 
     340(26)(H) and (M) of the Energy Policy and Conservation Act, 
     to determine the historical growth rate. If the Secretary 
     finds that the growth in market share of such luminaires 
     exceeds twice the year to year rate of the average of the 
     previous three years, then the Secretary shall within 12 
     months initiate a rulemaking to determine if such exclusion 
     should be eliminated, if substitute products exist that 
     perform more efficiently and fulfill the performance 
     functions of these luminaires.
       (b) Portable Lighting.--
       (1) Portable light fixtures.--
       (A) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) is amended by adding at the 
     end the following:
       ``(67) Art work light fixture.--The term `art work light 
     fixture' means a light fixture designed only to be mounted 
     directly to an art work and for the purpose of illuminating 
     that art work.
       ``(68) LED light engine.--The term `LED light engine' or 
     `LED light engine with integral heat sink' means a subsystem 
     of an LED light fixture that--
       ``(A) includes 1 or more LED components, including--
       ``(i) an LED driver power source with electrical and 
     mechanical interfaces; and
       ``(ii) an integral heat sink to provide thermal 
     dissipation; and
       ``(B) may be designed to accept additional components that 
     provide aesthetic, optical, and environmental control.
       ``(69) LED light fixture.--The term `LED light fixture' 
     means a complete lighting unit consisting of--
       ``(A) an LED light source with 1 or more LED lamps or LED 
     light engines; and
       ``(B) parts--
       ``(i) to distribute the light;
       ``(ii) to position and protect the light source; and
       ``(iii) to connect the light source to electrical power.
       ``(70) Light fixture.--The term `light fixture' means a 
     product designed to provide light that includes--
       ``(A) at least 1 lamp socket; and
       ``(B) parts--
       ``(i) to distribute the light;
       ``(ii) position and protect 1 or more lamps; and
       ``(iii) to connect 1 or more lamps to a power supply.
       ``(71) Portable light fixture.--
       ``(A) In general.--The term `portable light fixture' means 
     a light fixture that has a flexible cord and an attachment 
     plug for connection to a nominal 120-volt circuit that--
       ``(i) allows the user to relocate the product without any 
     rewiring; and
       ``(ii) typically can be controlled with a switch located on 
     the product or the power cord of the product.
       ``(B) Exclusions.--The term `portable light fixture' does 
     not include--
       ``(i) direct plug-in night lights, sun or heat lamps, 
     medical or dental lights, portable electric hand lamps, signs 
     or commercial advertising displays, photographic lamps, 
     germicidal lamps, or light fixtures for marine use or for use 
     in hazardous locations (as those terms are defined in ANSI/
     NFPA 70 of the National Electrical Code); or
       ``(ii) decorative lighting strings, decorative lighting 
     outfits, or electric candles or candelabra without lamp 
     shades that are covered by Underwriter Laboratories (UL) 
     standard 588, `Seasonal and Holiday Decorative Products'.''.
       (B) Coverage.--
       (i) In general.--Section 322(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6292(a)) is amended--

       (I) by redesignating paragraph (20) as paragraph (24); and
       (II) by inserting after paragraph (19) the following:

       ``(20) Portable light fixtures.''.
       (ii) Conforming amendments.--Section 325(l) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6295(l)) is amended by 
     striking ``paragraph (19)'' each place it appears in 
     paragraphs (1) and (2) and inserting ``paragraph (24)''.
       (C) Test procedures.--Section 323(b) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6293(b)) is amended by adding 
     at the end the following:
       ``(19) LED fixtures and led light engines.--Test procedures 
     for LED fixtures and LED light engines shall be based on 
     Illuminating Engineering Society of North America (IESNA) 
     test procedure LM-79, Approved Method for Electrical and 
     Photometric Testing of Solid-State Lighting Devices, and 
     IESNA-approved test procedure for testing LED light 
     engines.''.
       (D) Standards.--Section 325 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295) is amended--
       (i) by redesignating subsection (ii) as subsection (oo);
       (ii) in subsection (oo)(2), as redesignated in clause (i) 
     of this subparagraph, by striking ``(hh)'' each place it 
     appears and inserting ``(mm)''; and
       (iii) by inserting after subsection (hh) the following:
       ``(ii) Portable Light Fixtures.--
       ``(1) In general.--Subject to paragraphs (2) and (3), 
     portable light fixtures manufactured on or after January 1, 
     2012, shall meet 1 or more of the following requirements:
       ``(A) Be a fluorescent light fixture that meets the 
     requirements of the Energy Star Program for Residential Light 
     Fixtures, Version 4.2.
       ``(B) Be equipped with only 1 or more GU-24 line-voltage 
     sockets, not be rated for use with incandescent lamps of any 
     type (as defined in ANSI standards), and meet the 
     requirements of version 4.2 of the Energy Star program for 
     residential light fixtures.
       ``(C) Be an LED light fixture or a light fixture with an 
     LED light engine and comply with the following minimum 
     requirements:
       ``(i) Minimum light output: 200 lumens (initial).
       ``(ii) Minimum LED light engine efficacy: 40 lumens/watt 
     installed in fixtures that meet the minimum light fixture 
     efficacy of 29 lumens/watt or, alternatively, a minimum LED 
     light engine efficacy of 60 lumens/watt for fixtures that do 
     not meet the minimum light fixture efficacy of 29 lumens/
     watt.
       ``(iii) All portable fixtures shall have a minimum LED 
     light fixture efficacy of 29 lumens/watt and a minimum LED 
     light engine efficacy of 60 lumens/watt by January 1, 2016.
       ``(iv) Color Correlated Temperature (CCT): 2700K through 
     4000K.
       ``(v) Minimum Color Rendering Index (CRI): 75.
       ``(vi) Power factor equal to or greater than 0.70.
       ``(vii) Portable luminaries that have internal power 
     supplies shall have zero standby power when the luminaire is 
     turned off.
       ``(viii) LED light sources shall deliver at least 70 
     percent of initial lumens for at least 25,000 hours.
       ``(D)(i) Be equipped with an ANSI-designated E12, E17, or 
     E26 screw-based socket and be prepackaged and sold together 
     with 1 screw-based compact fluorescent lamp or screw-based 
     LED lamp for each screw-based socket on the portable light 
     fixture.
       ``(ii) The compact fluorescent or LED lamps prepackaged 
     with the light fixture shall be fully compatible with any 
     light fixture controls incorporated into the light fixture 
     (for example, light fixtures with dimmers shall be packed 
     with dimmable lamps).
       ``(iii) Compact fluorescent lamps prepackaged with light 
     fixtures shall meet the requirements of the Energy Star 
     Program for CFLs Version 4.0.
       ``(iv) Screw-based LED lamps shall comply with the minimum 
     requirements described in subparagraph (C).
       ``(E) Be equipped with 1 or more single-ended, non-screw 
     based halogen lamp sockets (line or low voltage), a dimmer 
     control or high-low control, and be rated for a maximum of 
     100 watts.
       ``(2) Review.--
       ``(A) Review.--The Secretary shall review the criteria and 
     standards established under paragraph (1) to determine if 
     revised standards are technologically feasible and 
     economically justified.
       ``(B) Components.--The review shall include consideration 
     of--
       ``(i) whether a separate compliance procedure is still 
     needed for halogen fixtures described in subparagraph (E) 
     and, if necessary, what an appropriate standard for halogen 
     fixtures shall be;
       ``(ii) whether the specific technical criteria described in 
     subparagraphs (A), (C), and (D)(iii) should be modified; and
       ``(iii) which fixtures should be exempted from the light 
     fixture efficacy standard as of January 1, 2016, because the 
     fixtures are primarily decorative in nature (as defined by 
     the Secretary) and, even if exempted, are likely to be sold 
     in limited quantities.
       ``(C) Timing.--
       ``(i) Determination.--Not later than January 1, 2014, the 
     Secretary shall publish amended standards, or a determination 
     that no amended standards are justified, under this 
     subsection.
       ``(ii) Standards.--Any standards under this paragraph shall 
     take effect on January 1, 2016.

[[Page 16563]]

       ``(3) Art work light fixtures.--Art work light fixtures 
     manufactured on or after January 1, 2012, shall--
       ``(A) comply with paragraph (1); or
       ``(B)(i) contain only ANSI-designated E12 screw-based line-
     voltage sockets;
       ``(ii) have not more than 3 sockets;
       ``(iii) be controlled with an integral high/low switch;
       ``(iv) be rated for not more than 25 watts if fitted with 1 
     socket; and
       ``(v) be rated for not more than 15 watts per socket if 
     fitted with 2 or 3 sockets.
       ``(4) Exception from preemption.--Notwithstanding section 
     327, Federal preemption shall not apply to a regulation 
     concerning portable light fixtures adopted by the California 
     Energy Commission on or before January 1, 2014.''.
       (2) GU-24 base lamps.--
       (A) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) (as amended by paragraph 
     (1)(A)) is amended by adding at the end the following:
       ``(72) GU-24.--The term `GU-24' means the designation of a 
     lamp socket, based on a coding system by the International 
     Electrotechnical Commission, under which--
       ``(A) `G' indicates a holder and socket type with 2 or more 
     projecting contacts, such as pins or posts;
       ``(B) `U' distinguishes between lamp and holder designs of 
     similar type that are not interchangeable due to electrical 
     or mechanical requirements; and
       ``(C) 24 indicates the distance in millimeters between the 
     electrical contact posts.
       ``(73) GU-24 adaptor.--
       ``(A) In general.--The term `GU-24 Adaptor' means a 1-piece 
     device, pig-tail, wiring harness, or other such socket or 
     base attachment that--
       ``(i) connects to a GU-24 socket on 1 end and provides a 
     different type of socket or connection on the other end; and
       ``(ii) does not alter the voltage.
       ``(B) Exclusion.--The term `GU-24 Adaptor' does not include 
     a fluorescent ballast with a GU-24 base.
       ``(74) GU-24 base lamp.--`GU-24 base lamp' means a light 
     bulb designed to fit in a GU-24 socket.''.
       (B) Standards.--Section 325 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295) (as amended by paragraph 
     (1)(D)) is amended by inserting after subsection (ii) the 
     following:
       ``(jj) GU-24 Base Lamps.--
       ``(1) In general.--A GU-24 base lamp shall not be an 
     incandescent lamp as defined by ANSI.
       ``(2) GU-24 adaptors.--GU-24 adaptors shall not adapt a GU-
     24 socket to any other line voltage socket.''.
       (3) Standards for certain incandescent reflector lamps.--
     Section 325(i) of the Energy Policy and Conservation Act (42 
     U.S.C. 6295(i)), as amended by section 161(a)(12) of this 
     Act, is amended by adding at the end the following:
       ``(9) Certain incandescent reflector lamps.--(A) No later 
     than 12 months after enactment of this paragraph, the 
     Secretary shall publish a final rule establishing standards 
     for incandescent reflector lamp types described in paragraph 
     (1)(D). Such standards shall be effective on July 1, 2013.
       ``(B) Any rulemaking for incandescent reflector lamps 
     completed after enactment of this section shall consider 
     standards for all incandescent reflector lamps, inclusive of 
     those specified in paragraph (1)(C).
       ``(10) Reflector lamps.--No later than January 1, 2015, the 
     Secretary shall publish a final rule establishing and 
     amending standards for reflector lamps, including 
     incandescent reflector lamps. Such standards shall be 
     effective no sooner than three years after publication of the 
     final rule. Such rulemaking shall consider incandescent and 
     nonincandescent technologies. Such rulemaking shall consider 
     a new metric other than lumens-per-watt based on the 
     photometric distribution of light from such lamps.''.

     SEC. 212. OTHER APPLIANCE EFFICIENCY STANDARDS.

       (a) Standards for Water Dispensers, Hot Food Holding 
     Cabinets, and Portable Electric Spas.--
       (1) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291), as amended by section 211 
     of this Act, is further amended by adding at the end the 
     following:
       ``(75) The term `water dispenser' means a factory-made 
     assembly that mechanically cools and heats potable water and 
     that dispenses the cooled or heated water by integral or 
     remote means.
       ``(76) The term `bottle-type water dispenser' means a 
     drinking water dispenser designed for dispensing both hot and 
     cold water that uses a removable bottle or container as the 
     source of potable water.
       ``(77) The term `commercial hot food holding cabinet' means 
     a heated, fully-enclosed compartment with one or more solid 
     or glass doors that is designed to maintain the temperature 
     of hot food that has been cooked in a separate appliance. 
     Such term does not include heated glass merchandizing 
     cabinets, drawer warmers, commercial hot food holding 
     cabinets with interior volumes of less than 8 cubic feet, or 
     cook-and-hold appliances.
       ``(78) The term `portable electric spa' means a factory-
     built electric spa or hot tub, supplied with equipment for 
     heating and circulating water.''.
       (2) Coverage.--Section 322(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6292(a)), as amended by section 
     211(b)(1)(B) of this Act, is further amended by inserting 
     after paragraph (20) the following new paragraphs:
       ``(21) Bottle type water dispensers.
       ``(22) Commercial hot food holding cabinets.
       ``(23) Portable electric spas.''.
       (3) Test procedures.--Section 323(b) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6293(b)), as amended by 
     section 211(b)(1)(C) of this Act, is further amended by 
     adding at the end the following:
       ``(20) Bottle type water dispensers.--Test procedures for 
     bottle type water dispensers shall be based on `Energy Star 
     Program Requirements for Bottled Water Coolers version 1.1' 
     published by the Environmental Protection Agency. Units with 
     an integral, automatic timer shall not be tested using 
     section 4D, `Timer Usage,' of the test criteria.
       ``(21) Commercial hot food holding cabinets.--Test 
     procedures for commercial hot food holding cabinets shall be 
     based on the test procedures described in ANSI/ASTM F2140-01 
     (Test for idle energy rate-dry test). Interior volume shall 
     be based on the method shown in the Environmental Protection 
     Agency's `Energy Star Program Requirements for Commercial Hot 
     Food Holding Cabinets' as in effect on August 15, 2003.
       ``(22) Portable electric spas.--Test procedures for 
     portable electric spas shall be based on the test method for 
     portable electric spas contained in section 1604, title 20, 
     California Code of Regulations as amended on December 3, 
     2008. When the American National Standards Institute 
     publishes a test procedure for portable electric spas, the 
     Secretary shall revise the Department of Energy's 
     procedure.''.
       (4) Standards.--Section 325 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6295), as amended by section 211 
     of this Act, is further amended by adding after subsection 
     (jj) the following:
       ``(kk) Bottle Type Water Dispensers.--Effective January 1, 
     2012, bottle-type water dispensers designed for dispensing 
     both hot and cold water shall not have standby energy 
     consumption greater than 1.2 kilowatt-hours per day.
       ``(ll) Commercial Hot Food Holding Cabinets.--Effective 
     January 1, 2012, commercial hot food holding cabinets with 
     interior volumes of 8 cubic feet or greater shall have a 
     maximum idle energy rate of 40 watts per cubic foot of 
     interior volume.
       ``(mm) Portable Electric Spas.--Effective January 1, 2012, 
     portable electric spas shall not have a normalized standby 
     power greater than 5(V\2/3\) Watts where V=the fill volume in 
     gallons.
       ``(nn) Revisions.--The Secretary of Energy shall consider 
     revisions to the standards in subsections (kk), (ll), and 
     (mm) in accordance with subsection (o) and publish a final 
     rule no later than January 1, 2013 establishing such revised 
     standards, or make a finding that no revisions are 
     technically feasible and economically justified. Any such 
     revised standards shall take effect January 1, 2016.''.
       (b) Commercial Furnace Efficiency Standards.--Section 
     342(a) of the Energy Policy and Conservation Act (42 U.S.C. 
     6312(a)) is amended by inserting after paragraph (10) the 
     following new paragraph:
       ``(11) Warm air furnaces.--Each warm air furnace with an 
     input rating of 225,000 Btu per hour or more and manufactured 
     after January 1, 2011, shall meet the following standard 
     levels:
       ``(A) Gas-fired units.--
       ``(i) Minimum thermal efficiency of 80 percent.
       ``(ii) Include an interrupted or intermittent ignition 
     device.
       ``(iii) Have jacket losses not exceeding 0.75 percent of 
     the input rating.
       ``(iv) Have either power venting or a flue damper.
       ``(B) Oil-fired units.--
       ``(i) Minimum thermal efficiency of 81 percent.
       ``(ii) Have jacket losses not exceeding 0.75 percent of the 
     input rating.
       ``(iii) Have either power venting or a flue damper.''.

     SEC. 213. APPLIANCE EFFICIENCY DETERMINATIONS AND PROCEDURES.

       (a) Definition of Energy Conservation Standard.--Section 
     321(6) of the Energy Policy and Conservation Act (42 U.S.C. 
     6291(6)) is amended to read as follows:
       ``(6) Energy conservation standard.--
       ``(A) In general.--The term `energy conservation standard' 
     means 1 or more performance standards that--
       ``(i) for covered products (excluding clothes washers, 
     dishwashers, showerheads, faucets, water closets, and 
     urinals), prescribe a minimum level of energy efficiency or a 
     maximum quantity of energy use, determined in accordance with 
     test procedures prescribed under section 323;
       ``(ii) for showerheads, faucets, water closets, and 
     urinals, prescribe a minimum level of water efficiency or a 
     maximum quantity of water use, determined in accordance with

[[Page 16564]]

     test procedures prescribed under section 323; and
       ``(iii) for clothes washers and dishwashers--

       ``(I) prescribe a minimum level of energy efficiency or a 
     maximum quantity of energy use, determined in accordance with 
     test procedures prescribed under section 323; and
       ``(II) may include a minimum level of water efficiency or a 
     maximum quantity of water use, determined in accordance with 
     those test procedures.

       ``(B) Inclusions.--The term `energy conservation standard' 
     includes--
       ``(i) 1 or more design requirements, if the requirements 
     were established--

       ``(I) on or before the date of enactment of this subclause;
       ``(II) as part of a direct final rule under section 
     325(p)(4); or
       ``(III) as part of a final rule published on or after 
     January 1, 2012, and

       ``(ii) any other requirements that the Secretary may 
     prescribe under section 325(r).
       ``(C) Exclusion.--The term `energy conservation standard' 
     does not include a performance standard for a component of a 
     finished covered product, unless regulation of the component 
     is specifically authorized or established pursuant to this 
     title.''.
       (b) Adopting Consensus Test Procedures and Test Procedures 
     in Use Elsewhere.--Section 323(b) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6293(b)), as amended by sections 
     211 and 212 of this Act, is further amended by adding the 
     following new paragraph after paragraph (22):
       ``(23) Consensus and alternate test procedures.--
       ``(A) Receipt of joint recommendation or alternate testing 
     procedure.--On receipt of--
       ``(i) a statement that is submitted jointly by interested 
     persons that are fairly representative of relevant points of 
     view (including representatives of manufacturers of covered 
     products, States, and efficiency advocates), as determined by 
     the Secretary, and contains recommendations with respect to 
     the testing procedure for a covered product; or
       ``(ii) a submission of a testing procedure currently in use 
     for a covered product by a State, nation, or group of 
     nations--

       ``(I) if the Secretary determines that the recommended 
     testing procedure contained in the statement or submission is 
     in accordance with subsection (b)(3), the Secretary may issue 
     a final rule that establishes an energy or water conservation 
     testing procedure that is published simultaneously with a 
     notice of proposed rulemaking that proposes a new or amended 
     energy or water conservation testing procedure that is 
     identical to the testing procedure established in the final 
     rule to establish the recommended testing procedure (referred 
     to in this paragraph as a `direct final rule'); or
       ``(II) if the Secretary determines that a direct final rule 
     cannot be issued based on the statement or submission, the 
     Secretary shall publish a notice of the determination, 
     together with an explanation of the reasons for the 
     determination.

       ``(B) Public comment.--The Secretary shall solicit public 
     comment for a period of at least 110 days with respect to 
     each direct final rule issued by the Secretary under 
     subparagraph (A)(ii)(I).
       ``(C) Withdrawal of direct final rules.--
       ``(i) In general.--Not later than 120 days after the date 
     on which a direct final rule issued under subparagraph 
     (A)(ii)(I) is published in the Federal Register, the 
     Secretary shall withdraw the direct final rule if--

       ``(I) the Secretary receives 1 or more adverse public 
     comments relating to the direct final rule under subparagraph 
     (B)or any alternative joint recommendation; and
       ``(II) based on the rulemaking record relating to the 
     direct final rule, the Secretary determines that such adverse 
     public comments or alternative joint recommendation may 
     provide a reasonable basis for withdrawing the direct final 
     rule under paragraph (3) or any other applicable law.

       ``(ii) Action on withdrawal.--On withdrawal of a direct 
     final rule under clause (i), the Secretary shall--

       ``(I) proceed with the notice of proposed rulemaking 
     published simultaneously with the direct final rule as 
     described in subparagraph (A)(ii)(I); and
       ``(II) publish in the Federal Register the reasons why the 
     direct final rule was withdrawn.

       ``(iii) Treatment of withdrawn direct final rules.--A 
     direct final rule that is withdrawn under clause (i) shall 
     not be considered to be a final rule for purposes of 
     subsection (b).
       ``(D) Effect of paragraph.--Nothing in this paragraph 
     authorizes the Secretary to issue a direct final rule based 
     solely on receipt of more than 1 statement containing 
     recommended test procedures relating to the direct final 
     rule.''.
       (c) Updating Television Test Methods.--Section 323(b) of 
     the Energy Policy and Conservation Act (42 U.S.C. 6293(b)), 
     as amended by sections 211 and 212 of this Act, and 
     subsection (b) of this section, is further amended by adding 
     at the end the following new paragraph:
       ``(24) Televisions.--(A) On the date of enactment of this 
     paragraph, Appendix H to Subpart B of Part 430 of the United 
     States Code of Federal Regulations, `Uniform Test Method for 
     Measuring the Energy Consumption of Television Sets', is 
     repealed.
       ``(B) No later than 12 months after the date of enactment 
     of this paragraph the Secretary shall publish in the Federal 
     Register a final rule prescribing a new test method for 
     televisions.''.
       (d) Criteria for Prescribing New or Amended Standards.--(1) 
     Section 325(o)(2)(B)(i) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6295(o)(2)(B)(i)) is amended as follows:
       (A) By striking ``and'' at the end of subclause (VI).
       (B) By redesignating subclause (VII) as subclause (XI).
       (C) By inserting the following new subclauses after 
     subclause (VI):
       ``(VII) the estimated value of the carbon dioxide and other 
     emission reductions that will be achieved by virtue of the 
     higher energy efficiency of the covered products resulting 
     from the imposition of the standard;
       ``(VIII) the estimated impact of standards for a particular 
     product on average consumer energy prices;
       ``(IX) the increased energy efficiency that may be 
     attributable to the installation of Smart Grid technologies 
     or capabilities in the covered products, if applicable in the 
     determination of the Secretary;
       ``(X) the availability in the United States or in other 
     nations of examples or prototypes of covered products that 
     achieve significantly higher efficiency standards for energy 
     or for water; and''.
       (2) Section 325(o)(2)(B)(iii) of such Act is amended as 
     follows:
       (A) By striking ``three'' and inserting ``5''.
       (B) By inserting after the first sentence the following 
     ``For products with an average expected useful life of less 
     than 5 years, such rebuttable presumption shall be determined 
     utilizing 75 percent of the product's average expected useful 
     life as a multiplier instead of 5.''.
       (C) By striking the last sentence and inserting the 
     following: ``Such a presumption may be rebutted only if the 
     Secretary finds, based on clear, convincing, and reliable 
     evidence, that--
       ``(I) such standard level would cause serious and 
     unavoidable hardship to the average consumer of the product, 
     or to manufacturers supplying a significant portion of the 
     market for the product, that substantially outweighs the 
     standard level's benefits;
       ``(II) the standard and implementing regulations cannot be 
     designed to avoid or mitigate the hardship identified under 
     subclause (I), through the adoption of regional standards 
     consistent with paragraph (6) of this subsection, or other 
     reasonable means consistent with this part;
       ``(III) the same or substantially similar hardship would 
     not occur under a standard adopted in the absence of the 
     presumption, but that otherwise meets the requirements of 
     this section; and
       ``(IV) the hardship cannot be avoided or mitigated pursuant 
     the procedures specified in section 504 of the Department of 
     Energy Organization Act (42 U.S.C. 7194).
     A determination by the Secretary that the criteria triggering 
     such presumption are not met, or that the criterion for 
     rebutting the presumption are met shall not be taken into 
     consideration in the Secretary's determination of whether a 
     standard is economically justified.''.
       (e) Obtaining Appliance Information From Manufacturers.--
     Section 326(d) of the Energy Policy and Conservation Act (42 
     U.S.C. 6295(d)) is amended to read as follows:
       ``(d) Information Requirements.--(1) For purposes of 
     carrying out this part, the Secretary shall publish proposed 
     regulations not later than one year after the date of 
     enactment of the American Clean Energy and Security Act of 
     2009, and after receiving public comment, final regulations 
     not later than 18 months from such date of enactment under 
     this part or other provision of law administered by the 
     Secretary, which shall require each manufacturer of a covered 
     product to submit information or reports to the Secretary on 
     an annual basis in a form adopted by the Secretary. Such 
     reports shall include information or data with respect to--
       ``(A) the manufacturers' compliance with all requirements 
     applicable pursuant to this part;
       ``(B) the economic impact of any proposed energy 
     conservation standard;
       ``(C) the manufacturers' annual shipments of each class or 
     category of covered products, organized, to the maximum 
     extent practicable, by--
       ``(i) energy efficiency, energy use, and, if applicable, 
     water use;
       ``(ii) the presence or absence of such efficiency related 
     or energy consuming operational characteristics or components 
     as the Secretary determines are relevant for the purposes of 
     carrying out this part; and
       ``(iii) the State or regional location of sale, for covered 
     products for which the Secretary may adopt regional 
     standards; and
       ``(D) such other categories of information as the Secretary 
     deems relevant to carry out this part, including such other 
     information as may be necessary to establish and revise test 
     procedures, labeling rules, and energy conservation standards 
     and to insure compliance with the requirements of this part.

[[Page 16565]]

       ``(2) In adopting regulations under this subsection, the 
     Secretary shall consider existing public sources of 
     information, including nationally recognized certification 
     programs of trade associations.
       ``(3) The Secretary shall exercise authority under this 
     section in a manner designed to minimize unnecessary burdens 
     on manufacturers of covered products.
       ``(4) To the extent that they do not conflict with the 
     duties of the Secretary in carrying out this part, the 
     provisions of section 11(d) of the Energy Supply and 
     Environmental Coordination Act of 1974 (15 U.S.C. 796(d)) 
     shall apply with respect to information obtained under this 
     subsection to the same extent and in the same manner as they 
     apply with respect to other energy information obtained under 
     such section.''.
       (f) State Waiver.--Section 327(c) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6297(c)), as amended by section 
     161(a)(19) of this Act, is further amended by adding at the 
     end the following:
       ``(12) is a regulation concerning standards for hot food 
     holding cabinets, drinking water dispensers and portable 
     electric spas adopted by the California Energy Commission on 
     or before January 1, 2013.''.
       (g) Waiver of Federal Preemption.--Paragraph (1) of section 
     327(d) of the Energy Policy and Conservation Act (42 U.S.C. 
     6297(d)) is amended as follows:
       (1) In subparagraph (A) by striking ``State regulation'' 
     each place it appears and inserting ``State statute or 
     regulation''.
       (2) In subparagraph (B) by adding at the end the following 
     new sentence: ``In making such a finding, the Secretary may 
     not reject a petition for failure of the petitioning State or 
     river basin commission to produce confidential information 
     maintained by any manufacturer or distributor, or group or 
     association of manufacturers or distributors, and which the 
     petitioning party does not have the legal right to obtain.''.
       (3) In clause (ii) of subparagraph (C) by striking 
     ``costs'' each place it appears and inserting ``estimated 
     costs''.
       (4) In subparagraph (C) by striking ``within the context of 
     the State's energy plan and forecast, and,''.
       (h) Inclusion of Carbon Output on Appliance ``Energyguide'' 
     Labels.--(1) Section 324(a)(2) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding 
     the following at the end:
       ``(I)(i) Not later than 90 days after the date of enactment 
     of this subparagraph, the Commission shall initiate a 
     rulemaking to implement the additional labeling requirements 
     specified in subsection (c)(1)(C) of this section with an 
     effective date for the revised labeling requirement not later 
     than 12 months from issuance of the final rule.
       ``(ii) Not later than 24 months after the date of enactment 
     of this subparagraph, the Commission shall complete the 
     rulemaking initiated under clause (i).
       ``(iii) Not later than 90 days after issuance of the final 
     rule as provided in this subparagraph, the Secretary shall 
     issue calculation methods required to effectuate the labeling 
     requirements specified in subsection (c)(1)(C) of this 
     section.''.
       (2) Section 324(c)(1) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6294(c)(1)) is amended--
       (A) by striking ``and'' at the end of subparagraph (A);
       (B) by striking the period at the end of subparagraph (B) 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(C) for products or groups of products providing a 
     comparable function (including the group of products 
     comprising the heating function of heat pumps and furnaces) 
     among covered products listed in paragraphs (3), (4), (5), 
     (8), (9), (10), and (11) of section 322(a) of this part, and 
     others designated by the Secretary, the estimated total 
     annual atmospheric carbon dioxide emissions (or their 
     equivalent in other greenhouse gases) associated with, or 
     caused by, the product, calculated utilizing--
       ``(i) national average energy use for the product including 
     energy consumed at the point of end use based on test 
     procedures developed under section 323 of this part;
       ``(ii) national average energy consumed or lost in the 
     production, generation, transportation, storage, and 
     distribution of energy to the point of end use; and
       ``(iii) any direct emissions of greenhouse gases from the 
     product during normal use;
       ``(D) in determining the national average energy 
     consumption and total annual atmospheric carbon dioxide 
     emissions, the Secretary shall utilize Federal Government 
     sources, including the Energy Information Administration 
     Annual Energy Review, the Environmental Protection Agency 
     eGRID data base, Environmental Protection Agency AP-42 
     Emission Factors as amended, and other sources determined to 
     be appropriate by the Secretary; and
       ``(E) information presenting, for each product (or group of 
     products providing the comparable function) identified in 
     section (c)(1)(C) of this section, the estimated annual 
     carbon dioxide emissions calculated within the range of 
     emissions calculated for all models of the product or group 
     according to its function, including those models consuming 
     fuels and those models not consuming fuels.''.
       (i) Permitting States to Seek Injunctive Enforcement.--(1) 
     Section 334 of the Energy Policy and Conservation Act (42 
     U.S.C. 6304) is amended to read as follows:

     ``SEC. 334. JURISDICTION AND VENUE.

       ``(a) Jurisdiction.--The United States district courts 
     shall have jurisdiction to restrain--
       ``(1) any violation of section 332; and
       ``(2) any person from distributing in commerce any covered 
     product which does not comply with an applicable rule under 
     section 324 or 325.
       ``(b) Authority.--Any action referred to in subsection (a) 
     shall be brought by the Commission or by the attorney general 
     of a State in the name of the State, except that--
       ``(1) any such action to restrain any violation of section 
     332(a)(3) which relates to requirements prescribed by the 
     Secretary or any violation of section 332(a)(4) which relates 
     to request of the Secretary under section 326(b)(2) shall be 
     brought by the Secretary; and
       ``(2) any violation of section 332(a)(5) or 332(a)(7) shall 
     be brought by the Secretary or by the attorney general of a 
     State in the name of the State.
       ``(c) Venue and Service of Process.--Any such action may be 
     brought in the United States district court for a district 
     wherein any act, omission, or transaction constituting the 
     violation occurred, or in such court of the district wherein 
     the defendant is found or transacts business. In any action 
     under this section, process may be served on a defendant in 
     any other district in which the defendant resides or may be 
     found.''.
       (2) The item relating to section 334 in the table of 
     contents for such Act is amended to read as follows:
``Sec. 334. Jurisdiction and venue.''.
       (j) Treatment of Appliances Within Building Codes.--(1) 
     Section 327(f)(3) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6297(f)(3)) is amended by striking subparagraphs 
     (B) through (G) and inserting the following:
       ``(B) The code meets at least one of the following 
     requirements:
       ``(i) The code does not require that the covered product 
     have an energy efficiency exceeding--
       ``(I) the applicable energy conservation standard 
     established in or prescribed under section 325;
       ``(II) the level required by a regulation of that State for 
     which the Secretary has issued a rule granting a waiver under 
     subsection (d) of this section; or
       ``(III) the required level established in the International 
     Energy Conservation Code or in a standard of the American 
     Society of Heating, Refrigerating and Air-Conditioning 
     Engineers, or by the Secretary pursuant to section 304 of the 
     Energy Conservation and Production Act.
       ``(ii) If the code uses one or more baseline building 
     designs against which all submitted building designs are to 
     be evaluated and such baseline building designs contain a 
     covered product subject to an energy conservation standard 
     established in or prescribed under section 325, the baseline 
     building designs are based on an efficiency level for such 
     covered product which meets but does not exceed one of the 
     levels specified in clause (i).
       ``(iii) If the code sets forth one or more optional 
     combinations of items which meet the energy consumption or 
     conservation objective, in at least one combination that the 
     State has found to be reasonably achievable using 
     commercially available technologies the efficiency of the 
     covered product meets but does not exceed one of the levels 
     specified in clause (i).
       ``(C) The credit to the energy consumption or conservation 
     objective allowed by the code for installing covered products 
     having energy efficiencies exceeding one of the levels 
     specified in subparagraph (B)(i) is on a one-for-one 
     equivalent energy use or equivalent energy cost basis, taking 
     into account the typical lifetime of the product.
       ``(D) The energy consumption or conservation objective is 
     specified in terms of an estimated total consumption of 
     energy (which may be calculated from energy loss- or gain-
     based codes) utilizing an equivalent amount of energy (which 
     may be specified in units of energy or its equivalent cost) 
     and equivalent lifetimes.
       ``(E) The estimated energy use of any covered product 
     permitted or required in the code, or used in calculating the 
     objective, is determined using the applicable test procedures 
     prescribed under section 323, except that the State may 
     permit the estimated energy use calculation to be adjusted to 
     reflect the conditions of the areas where the code is being 
     applied if such adjustment is based on the use of the 
     applicable test procedures prescribed under section 323 or 
     other technically accurate documented procedure.''.
       (2) Section 327(f)(4)(B) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6297(f)(4)(B)) is amended to read 
     as follows:
       ``(B) If a building code requires the installation of 
     covered products with efficiencies exceeding the levels and 
     requirements specified in paragraph (3)(B), such requirement 
     of the building code shall not be applicable unless the 
     Secretary has granted a waiver for such requirement under 
     subsection (d) of this section.''.

[[Page 16566]]



     SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PROGRAM.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Energy, in 
     consultation with the Administrator, shall establish a 
     program to be known as the ``Best-in-Class Appliances 
     Deployment Program'' to--
       (1) provide bonus payments to retailers or distributors 
     under subsection (c) for sales of best-in-class high-
     efficiency household appliance models, high-efficiency 
     installed building equipment, and high-efficiency consumer 
     electronics, with the goal of reducing life-cycle costs for 
     consumers, encouraging innovation, and maximizing energy 
     savings and public benefit;
       (2) provide bounties under subsection (d) to retailers and 
     manufacturers for the replacement, retirement, and recycling 
     of old, inefficient, and environmentally harmful products; 
     and
       (3) provide premium awards under subsection (e) to 
     manufacturers for developing and producing new Superefficient 
     Best-in-Class Products.
       (b) Designation of Best-in-Class Product Models.--
       (1) In general.--The Secretary of Energy shall designate 
     product models of appliances, equipment, or electronics as 
     Best-in-Class Product models. The Secretary shall publicly 
     announce the Best-in-Class Product models designated under 
     this subsection. The Secretary shall define product classes 
     broadly and, except as provided in paragraph (2), shall 
     designate as Best-in-Class Product models no more than the 
     most efficient 10 percent of the commercially available 
     product models in a class that demonstrate, as a group, a 
     distinctly greater energy efficiency than the average energy 
     efficiency of that class of appliances, equipment, or 
     electronics. In designating models, the Secretary shall--
       (A) identify commercially available models in the relevant 
     class of products;
       (B) identify the subgroup of those models that share the 
     distinctly higher energy-efficiency characteristics that 
     warrant designation as best-in-class; and
       (C) add other models in that class to the list of Best-in-
     Class Product models as they demonstrate their ability to 
     meet the higher-efficiency characteristics on which the 
     designation was made.
       (2) Percentage exception.--If there are fewer than 10 
     product models in a class of products, the Secretary may 
     designate one or more of such models as Best-in-Class 
     Products.
       (3) Review of best-in-class standards.--The Secretary shall 
     review annually the product-specific criteria for 
     designating, and the product models that qualify as, Best-in-
     Class Products and, after notice and a 30-day comment period, 
     make upwards adjustments in the efficiency criteria as 
     necessary to maintain an appropriate ratio of such product 
     models to the total number of product models in the product 
     class.
       (4) Smart grid energy efficiency savings.--The Secretary 
     shall include energy efficiency savings achieved by a 
     commercially available product having smart grid capability 
     in determining the efficiency level of a product for purposes 
     of a Best-In-Class Product designation pursuant to this 
     subsection. In measuring energy efficiency savings achieved 
     by smart grid capability, the Secretary shall use a metric 
     that--
       (A) is based on the time-differentiated value and amount of 
     energy consumption;
       (B) accounts for the capability of the product to respond 
     to a smart grid in which the physical capability of the 
     product to save or delay energy because of a smart grid 
     feature is weighted by the likelihood that the feature will 
     be used;
       (C) is based on the value of a unit of electric or gas 
     consumption as a function of time of day and season; and
       (D) includes a test method by which the manufacturer shall 
     determine the energy efficiency of smart grid capable 
     products.
       (c) Bonuses for Sales of Best-in-Class Products.--
       (1) In general.--The Secretary of Energy shall make bonus 
     payments to retailers or, as provided in paragraph (5)(B), 
     distributors for the sale of Best-in-Class Products.
       (2) Bonus program.--The Secretary shall--
       (A) publicly announce the availability and amount of the 
     bonus to be paid for each sale of a Best-in-Class Product of 
     a model designated under subsection (b); and
       (B) make bonus payments in at least that amount for each 
     Best-in-Class Product of that model sold during the 3-year 
     period beginning on the date the model is designated under 
     subsection (b).
       (3) Upgrade of best-in-class product eligibility.--In 
     conducting a review under subsection (b)(3), the Secretary 
     shall--
       (A) consider designating as a Best-in-Class Product model a 
     Superefficient Best-in-Class Product model that has been 
     designated pursuant to subsection (e);
       (B) announce any change in the bonus payment as necessary 
     to increase the market share of Best-in-Class Product models;
       (C) list models that will be eligible for bonuses in the 
     new amount; and
       (D) continue paying bonus payments at the original level, 
     for the sale of any models that previously qualified as Best-
     in-Class Products but do not qualify at the new level, for 
     the remainder of the 3-year period announced with the 
     original designation.
       (4) Size of individual bonus payments.--(A) The size of 
     each bonus payment under this subsection shall be the product 
     of--
       (i) an amount determined by the Secretary; and
       (ii) the difference in energy consumption between the Best-
     in-Class Product and the average product in the product 
     class.
       (B) The Secretary shall determine the amount under 
     subparagraph (A)(i) for each product type, in consultation 
     with State and utility efficiency program administrators as 
     well as the Administrator, based on estimates of the amount 
     of bonus payment that would provide significant incentive to 
     increase the market share of Best-in-Class Products.
       (5) Eligible bonus recipient.--(A) The Secretary shall 
     ensure that not more than 1 bonus payment is provided under 
     this subsection for each Best-in-Class Product.
       (B) The Secretary may make distributors eligible to receive 
     bonus payments under this subsection for sales that are not 
     to the final end-user, to the extent that the Secretary 
     determines that for a particular product category 
     distributors are well situated to increase sales of Best-in-
     Class Products.
       (d) Bounties for Replacement, Retirement, and Recycling of 
     Existing Low-Efficiency Products.--
       (1) In general.--The Secretary of Energy shall make bounty 
     payments to--
       (A) retailers for the replacement, retirement, and 
     recycling of older operating low-efficiency products that 
     might otherwise continue in operation; and
       (B) manufacturers of Superefficient Best-in-Class Products 
     for the retirement and recycling of older operating low-
     efficiency products that perform the same function and which 
     might otherwise continue in operation.
       (2) Bounties.--Bounties shall be payable--
       (A) to a retailer upon documentation that the sale of a 
     Best-in-Class Product was accompanied by the replacement, 
     retirement, and recycling of--
       (i) an inefficient but still-functioning product; or
       (ii) a nonfunctioning product containing a refrigerant, by 
     the consumer to whom the Best-in-Class Product was sold; and
       (B) to a manufacturer upon documentation of the retirement 
     and recycling of--
       (i) an inefficient but still-functioning product from a 
     consumer to whom a Superefficient Best-in-Class Product was 
     delivered; or
       (ii) a nonfunctioning product containing a refrigerant from 
     a consumer to whom a Superefficient Best-in-Class Product was 
     delivered.
       (3) Amount.--
       (A) Functioning products.--The bounty payment payable under 
     this subsection for a product described in paragraphs 
     (2)(A)(i) and (2)(B)(i) shall be based on the difference 
     between the estimated energy use of the product replaced and 
     the energy use of an average new product in the product 
     class, over the estimated remaining lifetime of the product 
     that was replaced.
       (B) Nonfunctioning products containing refrigerants.--The 
     bounty payment payable under this subsection for a product 
     described in paragraphs (2)(A)(ii) and (2)(B)(ii) shall be in 
     the amount that the Secretary of Energy, in consultation with 
     the Administrator, determines is sufficient to promote the 
     recycling of such products, up to the amount of bounty for a 
     comparable product described in paragraphs (2)(A) and (2)(B).
       (4) Retirement.--The Secretary shall ensure that no product 
     for which a bounty is paid under this subsection is returned 
     to active service, but that it is instead destroyed, and 
     recycled to the extent feasible.
       (5) Recycling appliances containing refrigerants.--
     Exclusively for the purpose of implementing the bounty 
     payment program for products containing a refrigerant under 
     this section, the Administrator shall establish standards for 
     environmentally responsible methods of recycling and disposal 
     of refrigerant-containing appliances that, at a minimum, meet 
     the requirements set by the Responsible Appliance Disposal 
     (RAD) Program for refrigerant disposal. The Secretary shall 
     ensure that such standards are met before a bounty payment is 
     made under this subsection for a product containing a 
     refrigerant. Nothing in this section shall be interpreted to 
     alter the requirements of section 608 of the Clean Air Act or 
     to relieve any person from complying with those requirements.
       (e) Premium Awards for Development and Production of 
     Superefficient Best-in-Class Products.--
       (1) In general.--(A) The Secretary of Energy shall provide 
     premium awards to manufacturers for the development and 
     production of Superefficient Best-in-Class Products. The 
     Secretary shall set and periodically revise standards for 
     eligibility of products for designation as a Superefficient 
     Best-in-Class Product.
       (B) The Secretary may establish a standard for a 
     Superefficient Best-in-Class Product even if no product 
     meeting that standard exists, if the Secretary has reasonable 
     grounds to conclude that a mass-producible product could be 
     made to meet that standard.

[[Page 16567]]

       (C) The Secretary may also establish a Superefficient Best-
     in-Class Product standard that is met by one or more existing 
     Best-in-Class Product models, if those product models have 
     distinct energy efficiency attributes and performance 
     characteristics that make them significantly better than 
     other product models qualifying as best-in-class. The 
     Secretary may not designate as Superefficient Best-in-Class 
     Products under this subparagraph models that represent more 
     than 10 percent of the currently qualifying Best-in-Class 
     Product models. This subparagraph shall not apply to products 
     designated pursuant to paragraph (4)(A).
       (D) In making its finding on the efficiency level a product 
     can achieve for purposes of a Superefficient Best-In-Class 
     Product designation pursuant to this paragraph, the Secretary 
     shall include energy efficiency savings that would be 
     achieved by a product as a result of smart grid capability 
     when a product having such capability can be produced and 
     sold commercially to mass market consumers. In measuring 
     energy efficiency savings achieved by smart grid capability, 
     the Secretary shall use a metric that--
       (i) is based on the time-differentiated value and amount of 
     energy consumption;
       (ii) accounts for the capability of the product to respond 
     to a smart grid in which the physical capability of the 
     product to save or delay energy because of a smart grid 
     feature is weighted by the likelihood that the feature will 
     be used;
       (iii) is based on the value of a unit of electric or gas 
     consumption as a function of time of day and season; and
       (iv) includes a test method by which the manufacturer shall 
     determine the energy efficiency of smart grid capable 
     products.
       (2) Premium awards.--(A) The premium award payment provided 
     to a manufacturer under this subsection shall be in addition 
     to any bonus payments made under subsection (c).
       (B) The amount of the premium award paid per unit of 
     Superefficient Best-in-Class Products sold to retailers or 
     distributors shall, except as provided by subparagraph (F), 
     be the product of--
       (i) an amount determined by the Secretary; and
       (ii) the difference in energy consumption between the 
     Superefficient Best-in-Class Product and the average product 
     in the product class.
       (C) The Secretary shall determine the amount under 
     subparagraph (B)(i) for each product type, in consultation 
     with State and utility efficiency program administrators as 
     well as the Administrator, based on consideration of the 
     present value to the Nation of the energy (and water or other 
     resources or inputs) saved over the useful life of the 
     product. The Secretary may also take into consideration the 
     methods used to increase sales of qualifying products in 
     determining such amount.
       (D) The Secretary may adjust the value described in 
     subparagraph (C) upward or downward as appropriate, including 
     based on the effect of the premium awards on the sales of 
     products in different classes that may be affected by the 
     program under this subsection.
       (E) Premium award payments shall be applied to sales of any 
     Superefficient Best-in-Class Product for the first 3 years 
     after designation as a Superefficient Best-in-Class Product.
       (F) For years 2011 through 2013, the Secretary shall make 
     bonus payments to manufacturers of the products designated in 
     paragraph (4)(A) for each product produced in the following 
     amounts:
       (i) $75 for each dishwasher.
       (ii) $250 for each clothes washer.
       (iii) $200 for each refrigerator or refrigerator-freezer.
       (iv) $250 for each clothes dryer.
       (v) $200 for each cooking product.
       (vi) $300 for each water heater.
       (3) Coordination of incentives.--No product for which 
     Federal tax credit is received under section 45M of the 
     Internal Revenue Code of 1986 shall be eligible to receive 
     premium award payments pursuant to this subsection.
       (4) Designations.--
       (A) Initial designations.--Notwithstanding any other 
     provisions of this section, the products the Secretary shall 
     designate as a Superefficient Best-In-Class Product include, 
     but are not limited to, the following products manufactured 
     in 2011 through 2013:
       (i) A dishwasher, clothes washer, refrigerator, or 
     refrigerator-freezer that meets the highest efficiency 
     performance standards in its product category as provided in 
     Section 305(b) of the Emergency Economic Stabilization Act of 
     2008 and has the smart grid capability specified in paragraph 
     (5).
       (ii) A water heater that meets an efficiency standard that 
     is the same or equivalent to the standard provided in Section 
     1333 of the Energy Policy Act of 2005 and has the smart grid 
     capability specified in paragraph (5).
       (iii) A clothes dryer or cooking product that the Secretary 
     determines meets the standards specified in subsection 
     (j)(3), which the Secretary shall promulgate no later than 
     one year after the date of enactment, and has the smart grid 
     capability specified in paragraph (5).
       (B) Extension of initial designations.--
       (i) General.--The Secretary shall in 2013 extend the 
     Superefficient Best-In-Class Product designation of each 
     product specified in subparagraph (A)(i) through (iii) 
     through 2017, provided that for each product designation 
     extended--

       (I) the extension will result in significant energy 
     efficiency savings;
       (II) the product meets the Superefficient Best-In-Class 
     Product criteria specified in paragraph (1);
       (III) the eligibility standards of the product include the 
     smart grid capability specified in paragraph (5); and
       (IV) the Secretary makes appropriate revisions to the 
     eligibility standards of the product as provided by paragraph 
     (1).

       (ii) Awards.--If a Superefficient Best-In-Class Product 
     designation for a product is extended pursuant to this 
     subparagraph, the premium award for the product shall be 
     determined in accordance with paragraph (2).
       (5) Smart grid capability.--
       (A) Until the Secretary promulgates criteria under 
     subparagraph (B), the term ``smart grid capability'' means 
     capability of receiving and interpreting time-of-use pricing 
     and peak-load-shed signals from a utility and--
       (i) in the case of a cooking product, reducing a minimum of 
     20 percent during peak demand as measured by the tested 
     average wattage over the course of a typical operating cycle 
     of the product; or
       (ii) in the case of a clothes washer, a refrigerator, a 
     dishwasher, a dryer and a water heater, reducing a minimum of 
     50 percent during peak demand as measured by the tested 
     average wattage over the course of a typical operating cycle 
     of the product, provided that the typical operating cycle of 
     a refrigerator and a water heater shall be a 24-hour period.
       (B) After completion of the analysis required under section 
     142(b) of this Act, the Secretary shall expeditiously 
     promulgate, after notice and a 30-day public comment period, 
     criteria for what constitutes ``smart grid capability.''
       (f) Reporting.--The Secretary of Energy shall require, as a 
     condition of receiving a bonus, bounty, or premium award 
     under this section, that a report containing the following 
     documentation be provided:
       (1) For retailers and distributors, the number of units 
     sold within each product type, and model-specific wholesale 
     purchase prices and retail sale prices, on a monthly basis.
       (2) For manufacturers, model-specific energy efficiency and 
     consumption data.
       (3) For manufacturers, on an immediate basis, information 
     concerning any product design or function changes that affect 
     the energy consumption of the unit.
       (4) The methods used to increase the sales of qualifying 
     products.
       (g) Monitoring and Verification Protocols.--The Secretary 
     of Energy shall establish monitoring and verification 
     protocols for energy consumption tests for each product model 
     and for sales of energy-efficient models. The Secretary shall 
     estimate actual savings of energy from the use of Smart Grid 
     capability in appliances for which premium award payments are 
     made pursuant to subsection (e) as a function of utility and 
     consumer readiness to utilize such capability.
       (h) Disclosure.--The Secretary of Energy may require that 
     manufacturers, retailers and distributors disclose publicly 
     and to consumers their participation in the program under 
     this section.
       (i) Cost-Effectiveness Requirement.--
       (1) Requirement.--The Secretary of Energy shall make cost-
     effectiveness a top priority in designing the program under, 
     and administering, this section, except that the cost-
     effectiveness of providing premium awards to manufacturers 
     under subsection (e), in aggregate, may be lower by this 
     measure than that of the bonuses and bounties to retailers 
     and distributors under subsections (c) and (d).
       (2) Definitions.--In this subsection:
       (A) Cost-effectiveness.--The term ``cost-effectiveness'' 
     means a measure of aggregate savings in the cost of energy 
     over the lifetime of a product in relation to the cost to the 
     Secretary of the bonuses, bounties, and premium awards 
     provided under this section for a product.
       (B) Savings.--The term ``savings'' means the cumulative 
     megawatt-hours of electricity or million British thermal 
     units of other fuels saved by a product during the projected 
     useful life of the product, in comparison to projected energy 
     consumption of the average product in the same class, taking 
     into consideration the impact of any documented measures to 
     replace, retire, and recycle low-efficiency products at the 
     time of purchase of highly-efficient substitutes.
       (j) Definitions.--In this section--
       (1) the term ``distributor'' mean an individual, 
     organization, or company that sells products in multiple lots 
     and not directly to end-users;
       (2) the term ``retailer'' means an individual, 
     organization, or company that sells products directly to end-
     users;
       (3) the term ``manufacturer'' means an individual, 
     organization, or company that transforms raw materials into 
     mass-producible finished goods; and
       (4) the term ``Superefficient Best-in-Class Product'' means 
     a product that--
       (A) can be mass produced; and
       (B) achieves the highest level of efficiency that the 
     Secretary of Energy finds can, given

[[Page 16568]]

     the current state of technology, be produced and sold 
     commercially to mass-market consumers.
       (k) Authorization of Appropriations.--There are authorized 
     to be appropriated $600,000,000 for each of the fiscal years 
     2011 through 2013 to the Secretary of Energy for purposes of 
     this section, and such sums as may be necessary for 
     subsequent fiscal years. Of funds appropriated, not more than 
     10 percent for any fiscal year may be expended on program 
     administration, and not less than 40 percent of any funds 
     appropriated during fiscal years 2011 through 2013 shall be 
     for purposes of subsection (e).

     SEC. 215. WATERSENSE.

       (a) In General.--There is established within the 
     Environmental Protection Agency a WaterSense program to 
     identify and promote water efficient products, buildings and 
     landscapes, and services in order--
       (1) to reduce water use;
       (2) to reduce the strain on water, wastewater, and 
     stormwater infrastructure;
       (3) to conserve energy used to pump, heat, transport, and 
     treat water; and
       (4) to preserve water resources for future generations,
     through voluntary labeling of, or other forms of 
     communications about, products, buildings and landscapes, and 
     services that meet the highest water efficiency and 
     performance standards.
       (b) Duties.--The Administrator shall--
       (1) promote WaterSense labeled products, buildings and 
     landscapes, and services in the market place as the preferred 
     technologies and services for--
       (A) reducing water use; and
       (B) ensuring product and service performance;
       (2) work to enhance public awareness of the WaterSense 
     label through public outreach, education, and other means;
       (3) establish and maintain performance standards so that 
     products, buildings and landscapes, and services labeled with 
     the WaterSense label perform as well or better than their 
     less efficient counterparts;
       (4) publicize the need for proper installation and 
     maintenance of WaterSense products by a licensed, and where 
     certification guidelines exist, WaterSense-certified 
     professional to ensure optimal performance;
       (5) preserve the integrity of the WaterSense label;
       (6) regularly review and, when appropriate, update 
     WaterSense criteria for categories of products, buildings and 
     landscapes, and services, at least once every four years;
       (7) to the extent practical, regularly estimate and make 
     available to the public the production and relative market 
     shares of WaterSense labeled products, buildings and 
     landscapes, and services, at least annually;
       (8) to the extent practical, regularly estimate and make 
     available to the public the water and energy savings 
     attributable to the use of WaterSense labeled products, 
     buildings and landscapes, and services, at least annually;
       (9) solicit comments from interested parties and the public 
     prior to establishing or revising a WaterSense category, 
     specification, installation criterion, or other criterion (or 
     prior to effective dates for any such category, 
     specification, installation criterion, or other criterion);
       (10) provide reasonable notice to interested parties and 
     the public of any changes (including effective dates), on the 
     adoption of a new or revised category, specification, 
     installation criterion, or other criterion, along with--
       (A) an explanation of changes; and
       (B) as appropriate, responses to comments submitted by 
     interested parties;
       (11) provide appropriate lead time (as determined by the 
     Administrator) prior to the applicable effective date for a 
     new or significant revision to a category, specification, 
     installation criterion, or other criterion, taking into 
     account the timing requirements of the manufacturing, 
     marketing, training, and distribution process for the 
     specific product, building and landscape, or service category 
     addressed; and
       (12) identify and, where appropriate, implement other 
     voluntary approaches in commercial, institutional, 
     residential, municipal, and industrial sectors to encourage 
     reuse and recycling technologies, improve water efficiency, 
     or lower water use while meeting, where applicable, the 
     performance standards established under paragraph (3).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated $7,500,000 for fiscal year 2010, 
     $10,000,000 for fiscal year 2011, $20,000,000 for fiscal year 
     2012, and $50,000,000 for fiscal year 2013 and each year 
     thereafter, adjusted for inflation, to carry out this 
     section.

     SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.

       (a) Definitions.--In this section:
       (1) Agency.--The term ``agency'' has the meaning given that 
     term in section 7902(a) of title 5, United States Code.
       (2) Watersense product or service.--The term ``WaterSense 
     product or service'' means a product or service that is rated 
     for water efficiency under the WaterSense program.
       (3) Watersense program.--The term ``WaterSense program'' 
     means the program established by section 215 of this Act.
       (4) FEMP designated product.--The term ``FEMP designated 
     product'' means a product that is designated under the 
     Federal Energy Management Program of the Department of Energy 
     as being among the highest 25 percent of equivalent products 
     for efficiency.
       (5) Product and service.--The terms ``product'' and 
     ``service'' do not include any water consuming product or 
     service designed or procured for combat or combat-related 
     missions. The terms also exclude products or services already 
     covered by the Federal procurement regulations established 
     under section 553 of the National Energy Conservation Policy 
     Act (42 U.S.C. 8259b).
       (b) Procurement of Water Efficient Products.--
       (1) Requirement.--To meet the requirements of an agency for 
     a water consuming product or service, the head of the agency 
     shall, except as provided in paragraph (2), procure--
       (A) a WaterSense product or service; or
       (B) a FEMP designated product.
     A WaterSense plumbing product should preferably, when 
     possible, be installed by a licensed and, when WaterSense 
     certification guidelines exist, WaterSense-certified plumber 
     or mechanical contractor, and a WaterSense irrigation system 
     should preferably, when possible, be installed, maintained, 
     and audited by a WaterSense-certified irrigation professional 
     to ensure optimal performance.
       (2) Exceptions.--The head of an agency is not required to 
     procure a WaterSense product or service or FEMP designated 
     product under paragraph (1) if the head of the agency finds 
     in writing that--
       (A) a WaterSense product or service or FEMP designated 
     product is not cost-effective over the life of the product, 
     taking energy and water cost savings into account; or
       (B) no WaterSense product or service or FEMP designated 
     product is reasonably available that meets the functional 
     requirements of the agency.
       (3) Procurement planning.--The head of an agency shall 
     incorporate into the specifications for all procurements 
     involving water consuming products and systems, including 
     guide specifications, project specifications, and 
     construction, renovation, and services contracts that include 
     provision of water consuming products and systems, and into 
     the factors for the evaluation of offers received for the 
     procurement, criteria used for rating WaterSense products and 
     services and FEMP designated products. The head of an agency 
     shall consider, to the maximum extent practicable, additional 
     measures for reducing agency water consumption, including 
     water reuse technologies, leak detection and repair, and use 
     of waterless products that perform similar functions to 
     existing water-consuming products.
       (c) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Energy, working in 
     coordination with the Administrator, shall issue guidelines 
     to carry out this section.

     SEC. 217. EARLY ADOPTER WATER EFFICIENT PRODUCT INCENTIVE 
                   PROGRAMS.

       (a) Definitions.--In this section:
       (1) Eligible state.--The term ``eligible entity'' means a 
     State government, local or county government, tribal 
     government, wastewater or sewerage utility, municipal water 
     authority, energy utility, water utility, or nonprofit 
     organization that meets the requirements of subsection (b).
       (2) Incentive program.--The term ``incentive program'' 
     means a program for administering financial incentives for 
     consumer purchase and installation of residential water 
     efficient products and services as described in subsection 
     (b)(1).
       (3) Residential water efficient product or service.--The 
     term ``residential water efficient product or service'' means 
     a product or service for a single-family or multifamily 
     residence or its landscape that is rated for water efficiency 
     and performance--
       (A) by the WaterSense program; or
       (B) where a WaterSense specification does not exist; by an 
     incentive program.
     Categories of water efficient products and services may 
     include faucets, irrigation technologies and services, point-
     of-use water treatment devices, reuse and recycling 
     technologies, toilets, and showerheads.
       (4) Watersense program.--The term ``WaterSense program'' 
     means the program established by section 215 of this Act.
       (b) Eligible Entities..--An entity shall be eligible to 
     receive an allocation under subsection (c) if the entity--
       (1) establishes (or has established) an incentive program 
     to provide rebates, vouchers, other financial incentives, or 
     direct installs to consumers for the purchase of residential 
     water efficient products or services;
       (2) submits an application for the allocation at such time, 
     in such form, and containing such information as the 
     Administrator may require; and
       (3) provides assurances satisfactory to the Administrator 
     that the entity will use the allocation to supplement, but 
     not supplant, funds made available to carry out the incentive 
     program.
       (c) Amount of Allocations.--For each fiscal year, the 
     Administrator shall determine the amount to allocate to each 
     eligible entity to carry out subsection (d) taking into 
     consideration--

[[Page 16569]]

       (1) the population served by the eligible entity in the 
     most recent calendar year for which data are available;
       (2) the targeted population of the eligible entity's 
     incentive program, such as general households, low-income 
     households, or first-time homeowners, and the probable 
     effectiveness of the incentive program for that population;
       (3) for existing programs, the effectiveness of the 
     incentive program in encouraging the adoption of water 
     efficient products and services; and
       (4) any prior year's allocation to the eligible entity that 
     remains unused.
       (d) Use of Allocated Funds.--Funds allocated to an entity 
     under subsection (c) may be used to pay up to 50 percent of 
     the cost of establishing and carrying out an incentive 
     program.
       (e) Fixture Recycling.--Entities are encouraged to promote 
     or implement fixture recycling programs to manage the 
     disposal of older fixtures replaced due to the incentive 
     program under this section.
       (f) Issuance of Incentives.--Financial incentives may be 
     provided to consumers that meet the requirements of the 
     incentive program. The entity may issue all financial 
     incentives directly to consumers or, with approval of the 
     Administrator, delegate some or all financial incentive 
     administration to other organizations including, but not 
     limited to local governments, municipal water authorities, 
     and water utilities. The amount of a financial incentive 
     shall be determined by the entity, taking into 
     consideration--
       (1) the amount of the allocation to the entity under 
     subsection (c);
       (2) the amount of any Federal, State, or other 
     organization's tax or financial incentive available for the 
     purchase of the residential water efficient product or 
     service;
       (3) the amount necessary to change consumer behavior to 
     purchase water efficient products and services; and
       (4) the consumer expenditures for onsite preparation, 
     assembly, and original installation of the product.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator to carry out this 
     section $50,000,000 for fiscal years 2010, $100,000,000 for 
     fiscal year 2011, $150,000,000 for fiscal year 2012, 
     $100,000,000 for fiscal year 2013, and $50,000,000 for fiscal 
     year 2014.

     SEC. 218. CERTIFIED STOVES PROGRAM.

       (a) Definitions.--In this section:
       (1) Agency.--The term ``Agency'' means the Environmental 
     Protection Agency.
       (2) Wood stove or pellet stove.--The term ``wood stove or 
     pellet stove'' means a wood stove, pellet stove, or fireplace 
     insert that uses wood or pellets for fuel.
       (3) Certified stove.--The term ``certified stove'' means a 
     wood stove or pellet stove that meets the standards of 
     performance for new residential wood heaters under subpart 
     AAA of part 60 of subchapter C of chapter I of title 40, Code 
     of Federal Regulations (or successor regulations), as 
     certified by the Administrator. Pellet stoves and fireplace 
     inserts using pellets for fuel that are exempt from testing 
     by the Administrator but meet the same standards of 
     performance as wood stoves are considered certified for the 
     purposes of this section.
       (4) Eligible entity.--The term ``eligible entity'' means--
       (A) a State, a local government, or a federally recognized 
     Indian tribe;
       (B) Alaskan Native villages or regional or village 
     corporations (as defined in, or established under, the 
     Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.)); and
       (C) a nonprofit organization or institution that--
       (i) represents or provides pollution reduction or 
     educational services relating to wood smoke minimization to 
     persons, organizations, or communities; or
       (ii) has, as its principal purpose, the promotion of air 
     quality or energy efficiency.
       (b) Establishment.--The Administrator shall establish and 
     carry out a program to assist in the replacement of wood 
     stoves or pellet stoves that do not meet the standards of 
     performance referred to in subsection (a)(4) by--
       (1) requiring that each wood stove or pellet stove sold in 
     the United States on and after the date of enactment of this 
     Act meet the standards of performance referred to in 
     subsection (a)(4);
       (2) requiring that no wood stove or pellet stove replaced 
     under this program is sold or returned to active service, but 
     that it is instead destroyed and recycled to the maximum 
     extent feasible;
       (3) providing funds to an eligible entity to replace a wood 
     stove or pellet stove that does not meet the standards of 
     performance in subsection (a)(4) with a certified stove, 
     including funds to pay for--
       (A) installation of a replacement certified stove; and
       (B) necessary replacement of or repairs to ventilation, 
     flues, chimneys, or other relevant items necessary for safe 
     installation of a replacement certified stove;
       (4) in addition to any funds that may be appropriated for 
     the program under this subsection, using existing Federal, 
     State, and local programs and incentives, to the greatest 
     extent practicable;
       (5) prioritizing the replacement of wood stoves or pellet 
     stoves manufactured before July 1, 1990; and
       (6) carrying out such other activities as the Administrator 
     determines appropriate to facilitate the replacement of wood 
     stoves or pellet stoves that do not meet the standards of 
     performance referred to in subsection (a)(3).
       (c) Regulations.--The Administrator may promulgate such 
     regulations as are necessary to carry out the program 
     established under subsection (b).
       (d) Funding.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out the program under this 
     section $20,000,000 for the period of fiscal years 2010 
     through 2014.
       (2) Designated use.--Of amounts appropriated pursuant to 
     this subsection--
       (A) 25 percent shall be designated for use to carry out the 
     program under this section on lands held in trust for the 
     benefit of a federally recognized Indian tribe;
       (B) 3 percent shall be designated for use to carry out the 
     program under this section in Alaskan Native villages or 
     regional or village corporations (as defined in, or 
     established under, the Alaskan Native Claims Settlement Act 
     (43 U.S.C. 1601 et seq.)); and
       (C) 72 percent shall be designated for use to carry out the 
     program under this section nationwide.
       (3) Regulatory programs.--
       (A) In general.--No grant or loan provided under this 
     section shall be used to fund the costs of emissions 
     reductions that are mandated under Federal, State, or local 
     law.
       (B) Mandated.--For purposes of subparagraph (A), voluntary 
     or elective emission reduction measures shall not be 
     considered ``mandated'', regardless of whether the reductions 
     are included in the implementation plan of a State.
       (e) EPA Authority to Accept Wood Stove or Pellet Stove 
     Replacement Supplemental Environmental Projects.--
       (1) In general.--The Administrator may accept 
     (notwithstanding sections 3302 and 1301 of title 31, United 
     States Code) wood stove or pellet stove replacement 
     Supplemental Environmental Projects if such projects, as part 
     of a settlement of any alleged violation of environmental 
     law--
       (A) protect human health or the environment;
       (B) are related to the underlying alleged violation;
       (C) do not constitute activities that the defendant would 
     otherwise be legally required to perform; and
       (D) do not provide funds for the staff of the Agency or for 
     contractors to carry out the Agency's internal operations.
       (2) Certification.--In any settlement agreement regarding 
     an alleged violation of environmental law in which a 
     defendant agrees to perform a wood stove or pellet stove 
     replacement Supplemental Environmental Project, the 
     Administrator shall require the defendant to include in the 
     settlement documents a certification under penalty of law 
     that the defendant would have agreed to perform a comparably 
     valued, alternative project other than a wood stove or pellet 
     stove replacement Supplemental Environmental Project if the 
     Administrator were precluded by law from accepting a wood 
     stove or pellet stove replacement Supplemental Environmental 
     Project. A failure by the Administrator to include this 
     language in such a settlement agreement shall not create a 
     cause of action against the United States under the Clean Air 
     Act or any other law or create a basis for overturning a 
     settlement agreement entered into by the United States.

     SEC. 219. ENERGY STAR STANDARDS.

       (a) Energy Star.--Section 324A(c) of the Energy Policy and 
     Conservation Act is amended--
       (1) in paragraph (6)(B), by striking ``and'' after the 
     semicolon at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(8) not later than 18 months after the date of enactment 
     of this paragraph, establish and implement a rating system 
     for products identified as Energy Star products pursuant to 
     this section to provide consumers with the most helpful 
     information on the relative energy efficiency, including cost 
     effectiveness from the consumer's perspective, and relative 
     length of time for consumers to recover costs attributable to 
     the energy efficient features, of those products, unless the 
     Administrator and the Secretary communicate to Congress that 
     establishing such a system would diminish the value of the 
     Energy Star brand to consumers;
       ``(9)(A) review the Energy Star product criteria for the 10 
     product models in each product category with the greatest 
     energy consumption at least once every 3 years; and
       ``(B) based on the review, update and publish the Energy 
     Star product criteria for each such category, as necessary; 
     and
       ``(10) require periodic verification of compliance with the 
     Energy Star product criteria by products identified as Energy 
     Star products pursuant to this section, including--
       ``(A) purchase and testing of products from the market; or
       ``(B) other appropriate testing and compliance 
     approaches.''.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to

[[Page 16570]]

     carry out the amendments made by this section $5,000,000 for 
     fiscal year 2010 and for each fiscal year thereafter.

                 Subtitle C--Transportation Efficiency

     SEC. 221. EMISSIONS STANDARDS.

       Title VIII of the Clean Air Act, as added by section 331 of 
     this Act, is amended by inserting after part A the following 
     new part:

                        ``PART B--MOBILE SOURCES

     ``SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR MOBILE 
                   SOURCES.

       ``(a) New Motor Vehicles and New Motor Vehicle Engines.--
     (1) Pursuant to section 202(a)(1), by December 31, 2010, the 
     Administrator shall promulgate standards applicable to 
     emissions of greenhouse gases from new heavy-duty motor 
     vehicles or new heavy-duty motor vehicle engines, excluding 
     such motor vehicles covered by the Tier II standards (as 
     established by the Administrator as of the date of the 
     enactment of this section). The Administrator may revise 
     these standards from time to time.
       ``(2) Regulations issued under section 202(a)(1) applicable 
     to emissions of greenhouse gases from new heavy-duty motor 
     vehicles or new heavy-duty motor vehicle engines, excluding 
     such motor vehicles covered by the Tier II standards (as 
     established by the Administrator as of the date of the 
     enactment of this section), shall contain standards that 
     reflect the greatest degree of emissions reduction achievable 
     through the application of technology which the Administrator 
     determines will be available for the model year to which such 
     standards apply, giving appropriate consideration to cost, 
     energy, and safety factors associated with the application of 
     such technology. Any such regulations shall take effect after 
     such period as the Administrator finds necessary to permit 
     the development and application of the requisite technology, 
     and, at a minimum, shall apply for a period no less than 3 
     model years beginning no earlier than the model year 
     commencing 4 years after such regulations are promulgated.
       ``(3) Regulations issued under section 202(a)(1) applicable 
     to emissions of greenhouse gases from new heavy-duty motor 
     vehicles or new heavy-duty motor vehicle engines, excluding 
     such motor vehicles covered by the Tier II standards (as 
     established by the Administrator as of the date of the 
     enactment of this section), shall supersede and satisfy any 
     and all of the rulemaking and compliance requirements of 
     section 32902(k) of title 49, United States Code.
       ``(4) Other than as specifically set forth in paragraph (3) 
     of this subsection, nothing in this section shall affect or 
     otherwise increase or diminish the authority of the Secretary 
     of Transportation to adopt regulations to improve the overall 
     fuel efficiency of the commercial goods movement system.
       ``(b) Nonroad Vehicles and Engines.--(1) Pursuant to 
     section 213(a)(4) and (5), the Administrator shall identify 
     those classes or categories of new nonroad vehicles or 
     engines, or combinations of such classes or categories, that, 
     in the judgment of the Administrator, both contribute 
     significantly to the total emissions of greenhouse gases from 
     nonroad engines and vehicles, and provide the greatest 
     potential for significant and cost-effective reductions in 
     emissions of greenhouse gases. The Administrator shall 
     promulgate standards applicable to emissions of greenhouse 
     gases from these new nonroad engines or vehicles by December 
     31, 2012. The Administrator shall also promulgate standards 
     applicable to emissions of greenhouse gases for such other 
     classes and categories of new nonroad vehicles and engines as 
     the Administrator determines appropriate and in the timeframe 
     the Administrator determines appropriate. The Administrator 
     shall base such determination, among other factors, on the 
     relative contribution of greenhouse gas emissions, and the 
     costs for achieving reductions, from such classes or 
     categories of new nonroad engines and vehicles. The 
     Administrator may revise these standards from time to time.
       ``(2) Standards under section 213(a)(4) and (5) applicable 
     to emissions of greenhouse gases from those classes or 
     categories of new nonroad engines or vehicles identified in 
     the first sentence of paragraph (1) of this subsection, shall 
     achieve the greatest degree of emissions reduction achievable 
     based on the application of technology which the 
     Administrator determines will be available at the time such 
     standards take effect, taking into consideration cost, 
     energy, and safety factors associated with the application of 
     such technology. Any such regulations shall take effect at 
     the earliest possible date after such period as the 
     Administrator finds necessary to permit the development and 
     application of the requisite technology, giving appropriate 
     consideration to the cost of compliance within such period, 
     the applicable compliance dates for other standards, and 
     other appropriate factors, including the period of time 
     appropriate for the transfer of applicable technology from 
     other applications, including motor vehicles, and the period 
     of time in which previously promulgated regulations have been 
     in effect.
       ``(3) For purposes of this section and standards under 
     section 213(a)(4) or (5) applicable to emissions of 
     greenhouse gases, the term `nonroad engines and vehicles' 
     shall include non-internal combustion engines and the 
     vehicles these engines power (such as electric engines and 
     electric vehicles), for those non-internal combustion engines 
     and vehicles which would be in the same category and have the 
     same uses as nonroad engines and vehicles that are powered by 
     internal combustion engines.
       ``(c) Averaging, Banking, and Trading of Emissions 
     Credits.--In establishing standards applicable to emissions 
     of greenhouse gases pursuant to this section and sections 
     202(a), 213(a)(4) and (5), and 231(a), the Administrator may 
     establish provisions for averaging, banking, and trading of 
     greenhouse gas emissions credits within or across classes or 
     categories of motor vehicles and motor vehicle engines, 
     nonroad vehicles and engines (including marine vessels), and 
     aircraft and aircraft engines, to the extent the 
     Administrator determines appropriate and considering the 
     factors appropriate in setting standards under those 
     sections. Such provisions may include reasonable and 
     appropriate provisions concerning generation, banking, 
     trading, duration, and use of credits.
       ``(d) Reports.--The Administrator shall, from time to time, 
     submit a report to Congress that projects the amount of 
     greenhouse gas emissions from the transportation sector, 
     including transportation fuels, for the years 2030 and 2050, 
     based on the standards adopted under this section.
       ``(e) Greenhouse Gases.--Notwithstanding the provisions of 
     section 711, hydrofluorocarbons shall be considered a 
     greenhouse gas for purposes of this section.''.

     SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH 
                   TRANSPORTATION EFFICIENCY.

       (a) Environmental Protection Agency.--Title VIII of the 
     Clean Air Act, as added by section 331 of this Act, is 
     further amended by inserting after part C the following new 
     part:

                   ``PART D--TRANSPORTATION EMISSIONS

     ``SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH 
                   TRANSPORTATION EFFICIENCY.

       ``(a) In General.--The Administrator, in consultation with 
     the Secretary of Transportation, shall promulgate, and update 
     from time to time, regulations to establish national 
     transportation-related greenhouse gas emissions reduction 
     goals, standardized models and methodologies for use in 
     developing surface transportation-related greenhouse gas 
     emissions reduction targets pursuant to sections 134 and 135 
     of title 23 of the United States Code and methods for 
     collection of data on transportation-related greenhouse gas 
     emissions. Such goals shall be commensurate with the 
     emissions reductions goals established under the American 
     Clean Energy and Security Act of 2009. In establishing such 
     goals, models, and methodologies, the Administrator shall 
     consult with States and metropolitan planning organizations 
     and may utilize existing models and methodologies.
       ``(b) Timing.--The Administrator shall--
       ``(1) publish proposed regulations under subsection (a) not 
     later than 12 months after the date of enactment of this 
     section; and
       ``(2) promulgate final regulations under subsection (a) not 
     later than 18 months after the date of enactment of this 
     section.
       ``(c) Assessment.--At least every 6 years after 
     promulgating final regulations under subsection (a), the 
     Administrator, jointly with the Secretary of Transportation, 
     shall assess current and projected progress in reducing 
     national transportation-related greenhouse gas emissions. The 
     assessment shall examine the contributions to emissions 
     reductions attributable to improvements in vehicle 
     efficiency, greenhouse gas performance of transportation 
     fuels, increased efficiency in utilizing transportation 
     systems and the effects of local and State planning.''.
       (b) Metropolitan Planning Organizations.--Section 134 of 
     title 23 of the United States Code is amended as follows:
       (1) In subsection (a)(1)--
       (A) by striking ``minimizing'' and inserting ``reducing''; 
     and
       (B) by inserting ``, reliance on oil, impacts on the 
     environment, transportation-related greenhouse gas 
     emissions'' after ``consumption''.
       (2) In subsection (h)(1)(E)--
       (A) by inserting ``sustainability and livability, reduce 
     surface transportation-related greenhouse gas emissions and 
     reliance on oil, adapt to the effects of climate change,'' 
     after ``energy conservation'';
       (B) by inserting ``and public health'' after ``quality of 
     life''; and
       (C) by inserting ``, including housing and land use 
     patterns'' after ``development patterns''.
       (3) In subsection (i)(4)(A) by inserting ``air quality, 
     public health, housing, transportation,'' after 
     ``conservation,''.
       (4) In subsection (k) by inserting at the end the following 
     new paragraph:
       ``(6) Emissions reduction process.--
       ``(A) In general.--Within a metropolitan planning area 
     serving a transportation management area, the transportation 
     planning process under this section shall address 
     transportation-related greenhouse gas emissions by including 
     emission reduction targets and strategies.
       ``(B) Establishment of emissions reduction targets and 
     strategies.--

[[Page 16571]]

       ``(i) In general.--Not later than one year after the 
     promulgation of the final regulations required under section 
     841 of the Clean Air Act, each metropolitan planning 
     organization shall develop surface transportation-related 
     greenhouse gas emission reduction targets, as well as 
     strategies to meet such targets, as part of the 
     transportation planning process under this section. If more 
     than one metropolitan planning organization has been 
     designated within a metropolitan planning area serving a 
     transportation management area, each such metropolitan 
     planning organization shall work cooperatively with other 
     such organization to develop the surface transportation-
     related greenhouse gas emission reduction targets required 
     under this subparagraph.
       ``(ii) Minimum requirements.--Each metropolitan planning 
     organization that develops targets and strategies required 
     under clause (i) shall demonstrate progress in stabilizing 
     and reducing transportation-related greenhouse gas emissions 
     in each metropolitan planning area serving a surface 
     transportation management area. The targets and strategies 
     shall, at a minimum--

       ``(I) be based on the models and methodologies established 
     in the final regulations required under section 841 of the 
     Clean Air Act;
       ``(II) address sources of surface transportation-related 
     greenhouse gas emissions and contribute to achievement of the 
     national transportation-related greenhouse gas emissions 
     reduction goals;
       ``(III) include efforts to increase public transportation 
     ridership; and
       ``(IV) include efforts to increase walking, bicycling, and 
     other forms of nonmotorized transportation.

       ``(C) Public notice.--Each metropolitan planning 
     organization shall make its emission reduction targets and 
     strategies, and an analysis of the anticipated effects 
     thereof, available to the public through its Web site.
       ``(D) Enforcement.--If the Secretary finds that a 
     metropolitan planning organization has failed to develop, 
     submit or publish its emission reduction targets and 
     strategies, the Secretary shall not certify that the 
     requirements of this section are met with respect to the 
     metropolitan planning process of such organization.''.
       (c) States.--Section 135 of title 23 of the United States 
     Code is amended as follows:
       (1) In subsection (d)(1)(E)--
       (A) by inserting ``sustainability and livability, reduce 
     surface transportation-related greenhouse gas emissions and 
     reliance on oil, adapt to the effects of climate change,'' 
     after ``energy conservation'';
       (B) by inserting ``and public health'' after ``quality of 
     life''; and
       (C) by inserting ``, including housing and land use 
     patterns'' after ``development patterns''.
       (2) In subsection (f)(2)(D)(i) by inserting ``air quality, 
     public health, housing, transportation,'' after 
     ``conservation,''.
       (3) In subsection (f) by inserting at the end the following 
     new paragraph:
       ``(9) Emissions reduction process.--
       ``(A) In general.--Within a State, the transportation 
     planning process under this section shall address 
     transportation-related greenhouse gas emissions by including 
     emission reduction targets and strategies.
       ``(B) Establishment of emissions reduction targets and 
     strategies.--
       ``(i) In general.--Not later than one year after the 
     promulgation of the final regulations required under section 
     841 of the Clean Air Act, each State shall develop surface 
     transportation-related greenhouse gas emission reduction 
     targets, as well as strategies to meet such targets, as part 
     of the transportation planning process under this section.
       ``(ii) Minimum requirements.--Each State that develops 
     targets and strategies required under clause (i) shall 
     demonstrate progress in stabilizing and reducing 
     transportation-related greenhouse gas emissions in such 
     State. The targets and strategies shall, at a minimum,

       ``(I) be based on the models and methodologies established 
     in the final regulations required under section 841 of the 
     Clean Air Act;
       ``(II) address sources of surface transportation-related 
     greenhouse gas emissions and contribute to achievement of the 
     national transportation-related greenhouse gas emissions 
     reduction goals;
       ``(III) include efforts to increase public transportation 
     ridership; and
       ``(IV) include efforts to increase walking, bicycling, and 
     other forms of nonmotorized transportation.

       ``(D) Public notice.--Each State shall make its emission 
     reduction targets and strategies, and an analysis of the 
     anticipated effects thereof, available to the public through 
     its Web site.
       ``(E) Enforcement.--If the Secretary finds that a State has 
     failed to develop, submit or publish its emission reduction 
     targets and strategies, the Secretary shall not certify that 
     the requirements of this section are met with respect to the 
     statewide planning process of such State.''.
       (d) Department of Transportation.--The Secretary of 
     Transportation shall establish appropriate requirements, 
     including performance measures, to ensure that transportation 
     plans developed under sections 134 and 135 of title 23 of the 
     United States Code sufficiently meet the requirements of this 
     section, including achieving progress towards national 
     transportation-related greenhouse gas emissions reduction 
     goals.

     SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

       Part B of title VIII of the Clean Air Act, as added by 
     section 221 of this Act is amended by adding after section 
     821 the following section:

     ``SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

       ``(a) In General.--There is established within the 
     Environmental Protection Agency a SmartWay Transport Program 
     to quantify, demonstrate, and promote the benefits of 
     technologies, products, fuels, and operational strategies 
     that reduce petroleum consumption, air pollution, and 
     greenhouse gas emissions from the mobile source sector.
       ``(b) General Duties.--Under the program established under 
     this section, the Administrator shall carry out each of the 
     following:
       ``(1) Development of measurement protocols to evaluate the 
     energy consumption and greenhouse gas impacts from 
     technologies and strategies in the mobile source sector, 
     including those for passenger transport and goods movement.
       ``(2) Development of qualifying thresholds for certifying, 
     verifying, or designating energy-efficient, low-greenhouse 
     gas SmartWay technologies and strategies for each mode of 
     passenger transportation and goods movement.
       ``(3) Development of partnership and recognition programs 
     to promote best practices and drive demand for energy-
     efficient, low-greenhouse gas transportation performance.
       ``(4) Promotion of the availability of, and encouragement 
     of the adoption of, SmartWay certified or verified 
     technologies and strategies, and publication of the 
     availability of financial incentives, such as assistance from 
     loan programs and other Federal and State incentives.
       ``(c) Smartway Transport Freight Partnership.--The 
     Administrator shall establish a SmartWay Transport Freight 
     Partnership program with shippers and carriers of goods to 
     promote energy-efficient, low-greenhouse gas transportation. 
     In carrying out such partnership, the Administrator shall 
     undertake each of the following:
       ``(1) Certification of the energy and greenhouse gas 
     performance of participating freight carriers, including 
     those operating rail, trucking, marine, and other goods 
     movement operations.
       ``(2) Publication of a comprehensive energy and greenhouse 
     gas performance index of freight modes (including rail, 
     trucking, marine, and other modes of transporting goods) and 
     individual freight companies so that shippers can choose to 
     deliver their goods more efficiently.
       ``(3) Development of tools for--
       ``(A) carriers to calculate their energy and greenhouse gas 
     performance; and
       ``(B) shippers to calculate the energy and greenhouse gas 
     impacts of moving their products and to evaluate the relative 
     impacts from transporting their goods by different modes and 
     corporate carriers.
       ``(4) Provision of recognition opportunities for 
     participating shipper and carrier companies demonstrating 
     advanced practices and achieving superior levels of 
     greenhouse gas performance.
       ``(d) Improving Freight Greenhouse Gas Performance 
     Databases.--The Administrator shall, in coordination with 
     other appropriate agencies, define and collect data on the 
     physical and operational characteristics of the Nation's 
     truck population, with special emphasis on data related to 
     energy efficiency and greenhouse gas performance to inform 
     the performance index published under subsection (c)(2) of 
     this section, and other means of goods transport as 
     necessary, at least every 5 years.
       ``(e) Establishment of Financing Program.--The 
     Administrator shall establish a SmartWay Financing Program to 
     competitively award funding to eligible entities identified 
     by the Administrator in accordance with the program 
     requirements in subsection (g).
       ``(f) Purpose.--Under the SmartWay Financing Program, 
     eligible entities shall--
       ``(1) use funds awarded by the Administrator to provide 
     flexible loan and lease terms that increase approval rates or 
     lower the costs of loans and leases in accordance with 
     guidance developed by the Administrator; and
       ``(2) make such loans and leases available to public and 
     private entities for the purpose of adopting low-greenhouse 
     gas technologies or strategies for the mobile source sector 
     that are designated by the Administrator.
       ``(g) Program Requirements.--The Administrator shall 
     determine program design elements and requirements, 
     including--
       ``(1) the type of financial mechanism with which to award 
     funding, in the form of grants or contracts;
       ``(2) the designation of eligible entities to receive 
     funding, including State, tribal, and local governments, 
     regional organizations comprised of governmental units, 
     nonprofit organizations, or for-profit companies;
       ``(3) criteria for evaluating applications from eligible 
     entities, including anticipated--
       ``(A) cost-effectiveness of loan or lease program on a 
     metric-ton-of-greenhouse gas-saved-per-dollar basis;

[[Page 16572]]

       ``(B) ability to promote the loan or lease program and 
     associated technologies and strategies to the target 
     audience; and
       ``(4) reporting requirements for entities that receive 
     awards, including--
       ``(A) actual cost-effectiveness and greenhouse gas savings 
     from the loan or lease program based on a methodology 
     designated by the Administrator;
       ``(B) the total number of applications and number of 
     approved applications; and
       ``(C) terms granted to loan and lease recipients compared 
     to prevailing market practices.
       ``(h) Authorization of Appropriations.--Such sums as 
     necessary are authorized to be appropriated to the 
     Administrator to carry out this section.''.

     SEC. 224. STATE VEHICLE FLEETS.

       Section 507(o) of the Energy Policy Act of 1992 (42 U.S.C. 
     13257) is amended by adding the following new paragraph at 
     the end thereof:
       ``(3) The Secretary shall revise the rules under this 
     subsection with respect to the types of alternative fueled 
     vehicles required for compliance with this subsection to 
     ensure those rules are consistent with any guidance issued 
     pursuant to section 303 of this Act.''.

           Subtitle D--Industrial Energy Efficiency Programs

     SEC. 241. INDUSTRIAL PLANT ENERGY EFFICIENCY STANDARDS.

       The Secretary of Energy shall continue to support the 
     development of the American National Standards Institute 
     (ANSI) voluntary industrial plant energy efficiency 
     certification program, pending International Standards 
     Organization (ISO) consensus standard 50001, and other 
     related ANSI/ISO standards. In addition, the Department shall 
     undertake complementary activities through the Department of 
     Energy's Industry Technologies Program that support the 
     voluntary implementation of such standards by manufacturing 
     firms. There are authorized to be appropriated to the 
     Secretary such sums as are necessary to carry out these 
     activities. The Secretary shall report to Congress on the 
     status of standards development and plans for further 
     standards development pursuant to this section by not later 
     than 18 months after the date of enactment of this Act, and 
     shall prepare a second such report 18 months thereafter.

     SEC. 242. ELECTRIC AND THERMAL WASTE ENERGY RECOVERY AWARD 
                   PROGRAM.

       (a) Electric and Thermal Waste Energy Recovery Awards.--The 
     Secretary of Energy shall establish a program to make 
     monetary awards to the owners and operators of new and 
     existing electric energy generation facilities or thermal 
     energy production facilities using fossil or nuclear fuel, to 
     encourage them to use innovative means of recovering any 
     thermal energy that is a potentially useful byproduct of 
     electric power generation or other processes to--
       (1) generate additional electric energy; or
       (2) make sales of thermal energy not used for electric 
     generation, in the form of steam, hot water, chilled water, 
     or desiccant regeneration, or for other commercially valid 
     purposes.
       (b) Amount of Awards.--
       (1) Eligibility.--Awards shall be made under subsection (a) 
     only for the use of innovative means that achieve net energy 
     efficiency at the facility concerned significantly greater 
     than the current standard technology in use at similar 
     facilities.
       (2) Amount.--The amount of an award made under subsection 
     (a) shall equal an amount up to the value of 25 percent of 
     the energy projected to be recovered or generated during the 
     first 5 years of operation of the facility using the 
     innovative energy recovery method, or such lesser amount that 
     the Secretary determines to be the minimum amount that can 
     cost-effectively stimulate such innovation.
       (3) Limitation.--No person may receive an award under this 
     section if a grant under the waste energy incentive grant 
     program under section 373 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6343) is made for the same energy 
     savings resulting from the same innovative method.
       (c) Regulatory Status.--The Secretary of Energy shall--
       (1) assist State regulatory commissions to identify and 
     make changes in State regulatory programs for electric 
     utilities to provide appropriate regulatory status for 
     thermal energy byproduct businesses of regulated electric 
     utilities to encourage those utilities to enter businesses 
     making the sales referred to in subsection (a)(2); and
       (2) encourage self-regulated utilities to enter businesses 
     making the sales referred to in subsection (a)(2).
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy such sums as 
     are necessary for the purposes of this section.

     SEC. 243. CLARIFYING ELECTION OF WASTE HEAT RECOVERY 
                   FINANCIAL INCENTIVES.

       Section 373(e) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6343(e)) is amended--
       (1) by striking ``that qualifies for'' and inserting ``who 
     elects to claim''; and
       (2) by inserting ``from that project'' after ``for waste 
     heat recovery''.

     SEC. 244. MOTOR MARKET ASSESSMENT AND COMMERCIAL AWARENESS 
                   PROGRAM.

       (a) Findings.--Congress finds that--
       (1) electric motor systems account for about half of the 
     electricity used in the United States;
       (2) electric motor energy use is determined by both the 
     efficiency of the motor and the system in which the motor 
     operates;
       (3) Federal Government research on motor end use and 
     efficiency opportunities is more than a decade old; and
       (4) the Census Bureau has discontinued collection of data 
     on motor and generator importation, manufacture, shipment, 
     and sales.
       (b) Definitions.--In this section:
       (1) Department.--The term ``Department'' means the 
     Department of Energy.
       (2) Interested parties.--The term ``interested parties'' 
     includes--
       (A) trade associations;
       (B) motor manufacturers;
       (C) motor end users;
       (D) electric utilities; and
       (E) individuals and entities that conduct energy efficiency 
     programs.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy, in consultation with interested parties.
       (c) Assessment.--The Secretary shall conduct an assessment 
     of electric motors and the electric motor market in the 
     United States that shall--
       (1) include important subsectors of the industrial and 
     commercial electric motor market (as determined by the 
     Secretary), including--
       (A) the stock of motors and motor-driven equipment;
       (B) efficiency categories of the motor population; and
       (C) motor systems that use drives, servos, and other 
     control technologies;
       (2) characterize and estimate the opportunities for 
     improvement in the energy efficiency of motor systems by 
     market segment, including opportunities for--
       (A) expanded use of drives, servos, and other control 
     technologies;
       (B) expanded use of process control, pumps, compressors, 
     fans or blowers, and material handling components; and
       (C) substitution of existing motor designs with existing 
     and future advanced motor designs, including electronically 
     commutated permanent magnet, interior permanent magnet, and 
     switched reluctance motors; and
       (3) develop an updated profile of motor system purchase and 
     maintenance practices, including surveying the number of 
     companies that have motor purchase and repair specifications, 
     by company size, number of employees, and sales.
       (d) Recommendations; Update.--Based on the assessment 
     conducted under subsection (c), the Secretary shall--
       (1) develop--
       (A) recommendations to update the detailed motor profile on 
     a periodic basis;
       (B) methods to estimate the energy savings and market 
     penetration that is attributable to the Save Energy Now 
     Program of the Department; and
       (C) recommendations for the Director of the Census Bureau 
     on market surveys that should be undertaken in support of the 
     motor system activities of the Department; and
       (2) prepare an update to the Motor Master+ program of the 
     Department.
       (e) Program.--Based on the assessment, recommendations, and 
     update required under subsections (c) and (d), the Secretary 
     shall establish a proactive, national program targeted at 
     motor end-users and delivered in cooperation with interested 
     parties to increase awareness of--
       (1) the energy and cost-saving opportunities in commercial 
     and industrial facilities using higher efficiency electric 
     motors;
       (2) improvements in motor system procurement and management 
     procedures in the selection of higher efficiency electric 
     motors and motor-system components, including drives, 
     controls, and driven equipment; and
       (3) criteria for making decisions for new, replacement, or 
     repair motor and motor system components.

     SEC. 245. MOTOR EFFICIENCY REBATE PROGRAM.

       (a) In General.--Part C of title III of the Energy Policy 
     and Conservation Act (42 U.S.C. 6311 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 347. MOTOR EFFICIENCY REBATE PROGRAM.

       ``(a) Establishment.--Not later than January 1, 2010, in 
     accordance with subsection (b), the Secretary shall establish 
     a program to provide rebates for expenditures made by 
     entities--
       ``(1) for the purchase and installation of a new electric 
     motor that has a nominal full load efficiency that is not 
     less than the nominal full load efficiency as defined in--
       ``(A) table 12-12 of NEMA Standards Publication MG 1-2006 
     for random wound motors rated 600 volts or lower; or
       ``(B) table 12-13 of NEMA Standards Publication MG 1-2006 
     for form wound motors rated 5000 volts or lower; and
       ``(2) to replace an installed motor of the entity the 
     specifications of which are established by the Secretary by a 
     date that is not later than 90 days after the date of 
     enactment of this section.
       ``(b) Requirements.--
       ``(1) Application.--To be eligible to receive a rebate 
     under this section, an entity shall

[[Page 16573]]

     submit to the Secretary an application in such form, at such 
     time, and containing such information as the Secretary may 
     require, including--
       ``(A) demonstrated evidence that the entity purchased an 
     electric motor described in subsection (a)(1) to replace an 
     installed motor described in subsection (a)(2);
       ``(B) demonstrated evidence that the entity--
       ``(i) removed the installed motor of the entity from 
     service; and
       ``(ii) properly disposed the installed motor of the entity; 
     and
       ``(C) the physical nameplate of the installed motor of the 
     entity.
       ``(2) Authorized amount of rebate.--The Secretary may 
     provide to an entity that meets each requirement under 
     paragraph (1) a rebate the amount of which shall be equal to 
     the product obtained by multiplying--
       ``(A) the nameplate horsepower of the electric motor 
     purchased by the entity in accordance with subsection (a)(1); 
     and
       ``(B) $25.00.
       ``(3) Payments to distributors of qualifying electric 
     motors.--To assist in the payment for expenses relating to 
     processing and motor core disposal costs, the Secretary shall 
     provide to the distributor of an electric motor described in 
     subsection (a)(1), the purchaser of which received a rebate 
     under this section, an amount equal to the product obtained 
     by multiplying--
       ``(A) the nameplate horsepower of the electric motor; and
       ``(B) $5.00.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, to 
     remain available until expended--
       ``(1) $80,000,000 for fiscal year 2011;
       ``(2) $75,000,000 for fiscal year 2012;
       ``(3) $70,000,000 for fiscal year 2013;
       ``(4) $65,000,000 for fiscal year 2014; and
       ``(5) $60,000,000 for fiscal year 2015.''.
       (b) Table of Contents.--The table of contents of the Energy 
     Policy and Conservation Act (42 U.S.C. prec. 6201) is amended 
     by adding at the end of the items relating to part C of title 
     III the following:

``Sec. 347. Motor efficiency rebate program.''.

     SEC. 246. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND 
                   PROGRAM.

       The National Institute of Standards and Technology Act (15 
     U.S.C. 271 et seq.) is amended by inserting after section 26 
     the following:

     ``SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND 
                   PROGRAM.

       ``(a) Purposes.--The purposes of this section are as 
     follows:
       ``(1) To develop the long-term manufacturing capacity of 
     the United States.
       ``(2) To create jobs through the retooling and expansion of 
     manufacturing facilities to produce clean energy technology 
     products and energy efficient products.
       ``(3) To improve the long-term competitiveness of domestic 
     manufacturing by increasing the energy efficiency of 
     manufacturing facilities.
       ``(4) To assist small and medium-sized manufacturers 
     diversify operations to respond to emerging clean energy 
     technology product markets.
       ``(b) Definitions.--In this section:
       ``(1) Clean energy technology product.--The term `clean 
     energy technology product' means technology products relating 
     to the following:
       ``(A) Wind turbines.
       ``(B) Solar energy.
       ``(C) Fuel cells.
       ``(D) Advanced batteries, battery systems, or storage 
     devices.
       ``(E) Biomass equipment.
       ``(F) Geothermal equipment.
       ``(G) Advanced biofuels.
       ``(H) Ocean energy equipment.
       ``(I) Carbon capture and storage.
       ``(J) Such other products as the Secretary determines--
       ``(i) relate to the production, use, transmission, storage, 
     control, or conservation of energy;
       ``(ii) reduce greenhouse gas concentrations;
       ``(iii) achieve the earliest and maximum emission 
     reductions within a reasonable period per dollar invested;
       ``(iv) result in the fewest non-greenhouse gas 
     environmental impacts; and
       ``(v) either--

       ``(I) reduce the need for additional energy supplies by--

       ``(aa) using existing energy supplies with greater 
     efficiency; or
       ``(bb) by transmitting, distributing, or transporting 
     energy with greater effectiveness through the infrastructure 
     of the United States; or

       ``(II) diversity the sources of energy supply of the United 
     States--

       ``(aa) to strengthen energy security; and
       ``(bb) to increase supplies with a favorable balance of 
     environmental effects if the entire technology system is 
     considered.
       ``(2) Energy efficient product.--The term `energy efficient 
     product' means a product that, as determined by the Secretary 
     in consultation with the Secretary of Energy--
       ``(A) consumes significantly less energy than the average 
     amount that all similar products consumed on the day before 
     the date of the enactment of this Act; or
       ``(B) is a component, system, or group of subsystems that 
     is designed, developed, and validated to optimize the energy 
     efficiency of a product.
       ``(3) Hollings manufacturing extension center.--The term 
     `Hollings Manufacturing Extension Center' means a center 
     established under section 25.
       ``(4) Hollings manufacturing partnership program.--The term 
     `Hollings Manufacturing Partnership Program' means the 
     program established under sections 25 and 26.
       ``(5) Program.--The term `Program' means the grant program 
     established pursuant to subsection (c)(1).
       ``(6) Revolving loan fund.--The term `revolving loan fund' 
     means a revolving loan fund described in subsection (d).
       ``(7) Secretary.--Except as otherwise provided, the term 
     `Secretary' means the Secretary of Commerce.
       ``(8) Small or medium-sized manufacturer.--The term `small 
     or medium-sized manufacturer' means a manufacturer that 
     employs fewer than 500 full-time equivalent employees at a 
     manufacturing facility that is not owned or controlled by an 
     automobile manufacturer.
       ``(c) Grant Program.--
       ``(1) Establishment.--Not later than 120 days after the 
     date of the enactment of this section, the Secretary shall 
     establish a program under which the Secretary shall award 
     grants to States to establish revolving loan funds to provide 
     loans to small and medium-sized manufacturers to finance the 
     cost of--
       ``(A) reequipping, expanding, or establishing (including 
     applicable engineering costs) a manufacturing facility in the 
     United States to produce--
       ``(i) clean energy technology products;
       ``(ii) energy efficient products; or
       ``(iii) integral component parts of clean energy technology 
     products or energy efficient products; or
       ``(B) reducing the energy intensity or greenhouse gas 
     production of a manufacturing facility in the United States, 
     including using energy intensive feedstocks.
       ``(2) Maximum amount.--The Secretary may not award a grant 
     under the Program in an amount that exceeds $500,000,000 in 
     any fiscal year.
       ``(d) Criteria for Awarding Grants.--
       ``(1) Matching funds.--The Secretary may make a grant to a 
     State under the Program only if the State agrees to ensure 
     that for each loan provided by the State under the Program, 
     not less than 20 percent of the amount of each loan will come 
     from a non-Federal source.
       ``(2) Administrative costs.--A State receiving a grant 
     under the Program may only use such amount of the grant for 
     the costs of administering the revolving loan fund as the 
     Secretary shall provide in regulations.
       ``(3) Application.--Each State seeking a grant under the 
     Program shall submit to the Secretary an application therefor 
     in such form and in such manner as the Secretary considers 
     appropriate.
       ``(4) Evaluation.--The Secretary shall evaluate and 
     prioritize an application submitted by a State for a grant 
     under the Program on the basis of--
       ``(A) the description of the revolving loan fund to be 
     established with the grant and how such revolving loan fund 
     will achieve the purposes described in subsection (a);
       ``(B) whether the State will be able to provide loans from 
     the revolving loan fund to small or medium-sized 
     manufacturers before the date that is 120 days after the date 
     on which the State receives the grant;
       ``(C) a description of how the State will administer the 
     revolving loan fund in coordination with other State and 
     Federal programs, including programs administered by the 
     Assistant Secretary for Economic Development;
       ``(D) a description of the actual or potential clean energy 
     manufacturing supply chains, including significant component 
     parts, in the region served by the revolving loan fund;
       ``(E) how the State will target the provision of loans 
     under the Program to manufacturers located in regions 
     characterized by high unemployment and sudden and severe 
     economic dislocation, in particular where mass layoffs have 
     resulted in a precipitous increase in unemployment;
       ``(F) the availability of a skilled manufacturing workforce 
     in the region served by the revolving loan fund and the 
     capacity of the region's workforce and education systems to 
     provide pathways for unemployed or low-income workers into 
     skilled manufacturing employment;
       ``(G) a description of how the State will target loans to 
     small or medium-sized manufacturers who are--
       ``(i) manufacturers of automobile components; and
       ``(ii) either--

       ``(I) increasing the energy efficiency of their 
     manufacturing facilities; or
       ``(II) retooling to manufacture clean energy products or 
     energy efficient products, including manufacturing components 
     to improve the compliance of an automobile with fuel economy 
     standards prescribed under section 32902 of title 49, United 
     States Code;

       ``(H) a description of how the State will use the loan fund 
     to achieve the earliest and maximum greenhouse gas emission 
     reductions within a reasonable period of time per

[[Page 16574]]

     dollar invested and with the fewest non-greenhouse gas 
     environmental impacts; and
       ``(I) such other factors as the Secretary considers 
     appropriate to ensure that grants awarded under the Program 
     effectively and efficiently achieve the purposes described in 
     subsection (a).
       ``(e) Revolving Loan Funds.--
       ``(1) In general.--A State receiving a grant under the 
     Program shall establish, maintain, and administer a revolving 
     loan fund in accordance with this subsection.
       ``(2) Deposits.--A revolving loan fund shall consist of the 
     following:
       ``(A) Amounts from grants awarded under this section.
       ``(B) All amounts held or received by the State incident to 
     the provision of loans described in subsection (f), including 
     all collections of principal and interest.
       ``(3) Expenditures.--Amounts in the revolving loan fund 
     shall be available for the provision and administration of 
     loans in accordance with subsection (f).
       ``(4) Limitation.--No funds provided pursuant to this 
     section may be leveraged through use of tax-exempt bonding 
     authority by a State or a political subdivision of a State.
       ``(f) Loans.--
       ``(1) In general.--A State receiving a grant under this 
     section shall use the amount in the revolving loan fund to 
     provide loans to small and medium-sized manufacturers as 
     described in subsection (c)(1).
       ``(2) Loan terms and conditions.--The following shall apply 
     with respect to loans provided under paragraph (1):
       ``(A) Terms.--Loans shall have a term determined by the 
     State receiving the grant as follows:
       ``(i) For fixed assets, the term of the loan shall not 
     exceed the useful life of the asset and shall be less than 15 
     years.
       ``(ii) For working capital, the term of the loan shall not 
     exceed 36 months.
       ``(B) Interest rates.--Loans shall bear an interest rate 
     determined by the State receiving the grant as follows:
       ``(i) The interest rate shall enable the loan recipient to 
     accomplish the activities described in subparagraphs (A) and 
     (B) of subsection (c)(1).
       ``(ii) The interest rate may be set below-market interest 
     rates.
       ``(iii) The interest rate may not be less than zero 
     percent.
       ``(iv) The interest rate may not exceed the current prime 
     rate plus 500 basis points.
       ``(C) Description and budget for use of loan funds.--Each 
     recipient of a loan from a State under the Program shall 
     develop and submit to the State and the Secretary a 
     description and budget for the use of loan amounts, including 
     a description of the following:
       ``(i) Any new business expected to be developed with the 
     loan.
       ``(ii) Any improvements to manufacturing operations to be 
     developed with the loan.
       ``(iii) Any technology expected to be commercialized with 
     the loan.
       ``(D) Priority in review and preference in selection for 
     certain loan applicants.--
       ``(i) Review.--In reviewing applications submitted by small 
     or medium-sized manufacturers for a loan, a recipient of a 
     grant under the Program shall give priority to small or 
     medium-sized manufacturers described in clause (iii).
       ``(ii) Selection.--In selecting small or medium-sized 
     manufacturers to receive a loan, a recipient of a grant under 
     the Program shall give preference to small or medium-sized 
     manufacturers described in clause (iii).
       ``(iii) Priority and preferred small or medium-sized 
     manufacturers.--A small or medium-sized manufacturer 
     described in this clause is a manufacturer that--

       ``(I) is certified by a Hollings Manufacturing Extension 
     Center or a manufacturing-related local intermediary 
     designated by the Secretary for purposes of providing such 
     certification; or
       ``(II) provides individuals employed at the manufacturing 
     facilities of the manufacturer--

       ``(aa) pay in amounts that are, on average, equal to or 
     more than the average wage of an individual working in a 
     manufacturing facility in the State; and
       ``(bb) health benefits.
       ``(iv) Certification by hollings manufacturing extension 
     center.--A Hollings Manufacturing Extension Center or other 
     entity designated by the Secretary for purposes of providing 
     certification under clause (iii)(I) shall only certify 
     applications for a loan after carrying out a qualitative and 
     quantitative review of the applicant's business strategy, 
     manufacturing operations, and technological ability to 
     contribute to the purposes described in subsection (a).
       ``(E) Repayment upon relocation outside united states.--
       ``(i) In general.--If a person receives a loan under 
     paragraph (1) to finance the cost of reequipping, expanding, 
     or establishing a manufacturing facility as described in 
     subsection (c)(1)(A) or to reduce the energy intensity of a 
     manufacturing facility and such person relocates the 
     production activities of such manufacturing facility outside 
     the United States during the term of the loan, the recipient 
     shall repay such loan in full with interest as described in 
     clause (ii) and for a duration described in clause (iii).
       ``(ii) Payment of interest.--Any amount owed by the 
     recipient of a loan under paragraph (1) who is required to 
     repay the loan under clause (i) shall bear interest at a 
     penalty rate determined by the Secretary to deter recipients 
     of loans under paragraph (1) from relocating production 
     activities as described in clause (i).
       ``(iii) Period of repayment.--Repayment of a loan under 
     clause (i) shall be for a duration determined by the 
     Secretary.
       ``(F) Compliance with wage rate requirements.--Each 
     recipient of a loan shall undertake and agree to incorporate 
     or cause to be incorporated into all contracts for 
     construction, alteration or repair, which are paid for in 
     whole or in part with funds obtained pursuant to such loan, a 
     requirement that all laborers and mechanics employed by 
     contractors and subcontractors performing construction, 
     alteration or repair shall be paid wages at rates not less 
     than those determined by the Secretary of Labor, in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code (known as the `Davis-Bacon Act'), to be 
     prevailing for the corresponding classes of laborers and 
     mechanics employed on projects of a character similar to the 
     contract work in the same locality in which the work is to be 
     performed. The Secretary of Labor shall have, with respect to 
     the labor standards specified in this subparagraph, the 
     authority and functions set forth in Reorganization Plan 
     Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 
     3145 of title 40, United States Code.
       ``(G) Annual reports by loan recipients.--Each recipient of 
     a loan issued by a State under paragraph (1) shall, not less 
     frequently than once each year during the term of the loan, 
     submit to such State a report containing such information as 
     the Secretary may specify for purposes of the Program, 
     including information that the Secretary can use to determine 
     whether a recipient of a loan is required to repay the loan 
     under subparagraph (E).
       ``(3) Annual reports by grant recipients.--Each recipient 
     of a grant under the Program shall, not less frequently than 
     once each year, submit to the Secretary a report on the 
     impact of each loan issued by the State under the Program and 
     the aggregate impact of all loans so issued, including the 
     following:
       ``(A) The sales increased or retained.
       ``(B) Cost savings or costs avoided.
       ``(C) Additional investment encouraged.
       ``(D) Jobs created or retained.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000,000 
     for each of fiscal years 2010 and 2011.''.

     SEC. 247. CLEAN ENERGY AND EFFICIENCY MANUFACTURING 
                   PARTNERSHIPS.

       (a) Hollings Manufacturing Partnership Program.--Section 
     25(b) of the National Institute of Standards and Technology 
     Act (15 U.S.C. 278k(b)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) the establishment of a clean energy manufacturing 
     supply chain initiative--
       ``(A) to support manufacturers in their identification of 
     and diversification to new markets, including support for 
     manufacturers transitioning to the use of clean energy supply 
     chains;
       ``(B) to assist manufacturers improve their competitiveness 
     by reducing energy intensity and greenhouse gas production, 
     including the use of energy intensive feedstocks;
       ``(C) to increase adoption and implementation of innovative 
     manufacturing technologies;
       ``(D) to coordinate and leverage the expertise of the 
     National Laboratories and Technology Centers and the 
     Industrial Assessment Centers of the Department of Energy to 
     meet the needs of manufacturers; and
       ``(E) to identify, assist, and certify manufacturers 
     seeking loans under section 27(e)(1).''.
       (b) Reduction in Cost Share Requirements.--Section 25(c) of 
     such Act (15 U.S.C. 278k(c)) is amended--
       (1) in paragraph (1), by inserting ``or as provided in 
     paragraph (5)'' after ``not to exceed six years'';
       (2) in paragraph (3)(B), by striking ``not less than 50 
     percent of the costs incurred for the first 3 years and an 
     increasing share for each of the last 3 years'' and inserting 
     ``50 percent of the costs incurred or such lesser percentage 
     of the costs incurred as determined appropriate by the 
     Secretary by rule''; and
       (3) in paragraph (5)--
       (A) by striking ``at declining levels'';
       (B) by striking ``one third'' and inserting ``50 percent''; 
     and
       (C) by inserting ``, or such lesser percentage as 
     determined appropriate by the Secretary by rule,'' after 
     ``maintenance costs''.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Commerce for the 
     Hollings Manufacturing Partnership Program authorized under 
     sections 25 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278k) and for the provision of 
     assistance under section 26 of such Act (15 U.S.C. 278l)--

[[Page 16575]]

       (1) $200,000,000 for fiscal year 2010;
       (2) $250,000,000 for fiscal year 2011;
       (3) $300,000,000 for fiscal year 2012;
       (4) $350,000,000 for fiscal year 2013; and
       (5) $400,000,000 for fiscal year 2014.

     SEC. 248. TECHNICAL AMENDMENTS.

       (a) Amendment to National Institute of Standards and 
     Technology Act.--Section 25 of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278k(b)) is amended--
       (1) in subsection (a), by striking ``(hereafter in this Act 
     referred to as the `Centers')''; and
       (2) by adding at the end the following:
       ``(g) Designation.--
       ``(1) Hollings manufacturing partnership program.--The 
     program under this section shall be known as the `Hollings 
     Manufacturing Partnership Program'.
       ``(2) Hollings manufacturing extension centers.--The 
     Regional Centers for the Transfer of Manufacturing Technology 
     created and supported under subsection (a) shall be known as 
     the `Hollings Manufacturing Extension Centers' (in this Act 
     referred to as the `Centers').''.
       (b) Amendment to Consolidated Appropriations Act, 2005.--
     Division B of title II of the Consolidated Appropriations 
     Act, 2005 (Public Law 108-09447; 118 Stat. 2879; 15 U.S.C. 
     278k note) is amended under the heading ``industrial 
     technology services'' by striking ``2007: Provided further, 
     That'' and all that follows through ``Extension Centers.'' 
     and inserting ``2007.''.

   Subtitle E--Improvements in Energy Savings Performance Contracting

     SEC. 251. ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Competition Requirements for Task or Delivery Orders 
     Under Energy Savings Performance Contracts.--
       (1) Competition requirements.--Subsection (a) of section 
     801 of the National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)) is amended by adding at the end the following 
     paragraph:
       ``(3)(A) The head of a Federal agency may issue a task or 
     delivery order under an energy savings performance contract 
     by--
       ``(i) notifying all contractors that have received an award 
     under such contract that the agency proposes to discuss 
     energy savings performance services for some or all of its 
     facilities and, following a reasonable period of time to 
     provide a proposal in response to the notice, soliciting an 
     expression of interest in performing site surveys or 
     investigations and feasibility designs and studies and the 
     submission of qualifications from such contractors, and 
     including in such notice summary information concerning 
     energy use for any facilities that the agency has specific 
     interest in including in such contract;
       ``(ii) reviewing all expressions of interest and 
     qualifications submitted pursuant to the notice under clause 
     (i);
       ``(iii) selecting two or more contractors (from among those 
     reviewed under clause (ii)) to conduct discussions concerning 
     the contractors' respective qualifications to implement 
     potential energy conservation measures, including requesting 
     references demonstrating experience on similar efforts and 
     the resulting energy savings of such similar efforts, and 
     providing an opportunity for a post-award debriefing to all 
     contractors that submitted expressions of interest and 
     qualifications under clause (ii) pursuant to the notice;
       ``(iv) selecting and authorizing--
       ``(I) more than one contractor (from among those selected 
     under clause (iii)) to conduct site surveys, investigations, 
     feasibility designs and studies or similar assessments for 
     the energy savings performance contract services (or for 
     discrete portions of such services), for the purpose of 
     allowing each such contractor to submit a firm, fixed-price 
     proposal to implement specific energy conservation measures; 
     or
       ``(II) one contractor (from among those selected under 
     clause (iii)) to conduct a site survey, investigation, a 
     feasibility design and study or similar for the purpose of 
     allowing the contractor to submit a firm, fixed-price 
     proposal to implement specific energy conservation measures;
       ``(v) negotiating a task or delivery order for energy 
     savings performance contracting services with the contractor 
     or contractors selected under clause (iv) based on the energy 
     conservation measures identified; and
       ``(vi) issuing a task or delivery order for energy savings 
     performance contracting services to such contractor or 
     contractors.
       ``(B) The issuance of a task or delivery order for energy 
     savings performance contracting services pursuant to 
     subparagraph (A) is deemed to satisfy the task and delivery 
     order competition requirements in section 2304c(d) of title 
     10, United States Code, and section 303J(d) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     253j(d)).
       ``(C) The Secretary may issue guidance as necessary to 
     agencies issuing task or delivery orders pursuant to 
     subparagraph (A).''.
       (2) Effective date.--The amendment made by paragraph (1) is 
     inapplicable to task or delivery orders issued before the 
     date of enactment of this section.
       (b) Inclusion of Thermal Renewable Energy.--Section 203 of 
     the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended--
       (1) in subsection (a), by striking ``electric''; and
       (2) in subsection (b)(2), by inserting ``or thermal'' after 
     ``means electric''.
       (c)  Credit for Renewable Energy Produced and Used on 
     Site.--Subsection (c) of section 203 of the Energy Policy Act 
     of 2005 (42 U.S.C. 15852) is amended to read as follows:
       ``(c) Calculation.--Renewable energy produced at a Federal 
     facility, on Federal lands, or on Indian lands (as defined in 
     title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 
     et seq.)) shall be calculated separately from renewable 
     energy consumed at a Federal facility, and each may be used 
     to comply with the consumption requirement under subsection 
     (a).''.
       (d) Financing Flexibility.--Section 801(a)(2)(E) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)(2)(E)) is amended by striking ``In'' and inserting 
     ``Notwithstanding any other provision of law, in''.

                    Subtitle F--Public Institutions

     SEC. 261. PUBLIC INSTITUTIONS.

       Section 399A of the Energy Policy and Conservation Act (42 
     U.S.C. 6371h-1) is amended--
       (1) in subsection (a)(5), by striking ``or a designee'' and 
     inserting ``an Indian tribe, a not-for-profit hospital or 
     not-for-profit inpatient health care facility, or a 
     designated agent'';
       (2) in subsection (c)(1), by striking subparagraph (C);
       (3) in subsection (f)(3)(A), by striking ``$1,000,000'' and 
     inserting ``$2,500,000''; and
       (4) in subsection (i)(1), by striking ``$250,000,000 for 
     each of fiscal years 2009 through 2013'' and inserting 
     ``$250,000,000 for each of fiscal years 2010 through 2015''.

     SEC. 262. COMMUNITY ENERGY EFFICIENCY FLEXIBILITY.

       Section 545(b)(3) of the Energy Independence and Security 
     Act of 2007 (42 U.S.C. 17155(b)(3)) is amended--
       (1) by striking ``Indian tribe may use'' and all that 
     follows through ``for administrative expenses'' and inserting 
     ``Indian tribe may use for administrative expenses'';
       (2) by striking subparagraphs (B) and (C);
       (3) by redesignating the remaining clauses (i) and (ii) as 
     subparagraphs (A) and (B), respectively and adjusting the 
     margin of those subparagraphs accordingly; and
       (4) by striking the semicolon at the end and inserting a 
     period.

     SEC. 263. SMALL COMMUNITY JOINT PARTICIPATION.

       (a) Section 541(3)(A) of the Energy Independence and 
     Security Act of 2007 is amended in clause (i) by striking 
     ``and'' at the end of subclause (II), in clause (ii) by 
     striking the period at the end of subclause (II) and 
     inserting ``; or'', and by inserting the following new clause 
     (iii):
       ``(iii) a group of adjacent, contiguous, or geographically 
     proximate units of local government that reach agreement to 
     act jointly for purposes of this section and that represent a 
     combined population of not less than 35,000.''.
       (b) Section 541(3)(B) of the Energy Independence and 
     Security Act of 2007 is amended in clause (i) by striking 
     ``or'', in clause (ii) by striking the period at the end and 
     inserting ``; or'', and by inserting the following new clause 
     (iii):
       ``(iii) a group of adjacent, contiguous, or geographically 
     proximate units of local government that reach agreement to 
     act jointly for purposes of this section and that represent a 
     combined population of not less than 50,000.''.

     SEC. 264. LOW INCOME COMMUNITY ENERGY EFFICIENCY PROGRAM.

       (a) In General.--The Secretary of Energy is authorized to 
     make grants to private, nonprofit, mission-driven community 
     development organizations including community development 
     corporations and community development financial institutions 
     to provide financing to businesses and projects that improve 
     energy efficiency; identify and develop alternative, 
     renewable, and distributed energy supplies; provide technical 
     assistance and promote job and business opportunities for 
     low-income residents; and increase energy conservation in low 
     income rural and urban communities.
       (b) Grants.--The purpose of such grants is to increase the 
     flow of capital and benefits to low income communities, 
     minority-owned and woman-owned businesses and entrepreneurs 
     and other projects and activities located in low income 
     communities in order to reduce environmental degradation, 
     foster energy conservation and efficiency and create job and 
     business opportunities for local residents. The Secretary may 
     make grants on a competitive basis for--
       (1) investments that develop alternative, renewable, and 
     distributed energy supplies;
       (2) capitalizing loan funds that lend to energy efficiency 
     projects and energy conservation programs;
       (3) technical assistance to plan, develop, and manage an 
     energy efficiency financing program; and
       (4) technical and financial assistance to assist small-
     scale businesses and private entities develop new renewable 
     and distributed sources of power or combined heat and power 
     generation.

[[Page 16576]]

       (c) Authorization of Appropriations.--For the purposes of 
     this section there is authorized to be appropriated 
     $50,000,000 for each of the fiscal years 2010 through 2015.

     SEC. 265. CONSUMER BEHAVIOR RESEARCH.

       (a) In General.--The Secretary of Energy is authorized to 
     establish a research program to identify the factors 
     affecting consumer actions to conserve energy and make 
     improvements in energy efficiency. Through the program the 
     Secretary will make grants to public and private institutions 
     of higher education to study the effects of consumer behavior 
     on total energy use; potential energy savings from changes in 
     consumption habits; the ability to reduce greenhouse gas 
     emissions through changes in energy consumption habits; 
     increase public awareness of Federal climate adaptation and 
     mitigation programs; and the potential for alterations in 
     consumer behavior to further American energy independence. 
     Grants may also fund projects that evaluate or inform public 
     knowledge of the effects of energy consumption habits on 
     these topics.
       (b) Grants.--The purpose of the program is to provide 
     grants to public and private institutions of higher education 
     to carry out projects which will improve understanding of the 
     effects of consumer behavior on energy consumption and 
     conservation. The Secretary shall make grants on a 
     competitive basis for--
       (1) studies of the effects of consumer habits on energy 
     consumption and conservation;
       (2) development of strategies that communicate the 
     importance of energy efficiency and conservation to 
     consumers;
       (3) identification of best practices to improve consumer 
     energy use habits;
       (4) education programs that inform consumers about the 
     implications of consumption habits on energy use and climate 
     change;
       (5) evaluation of the effectiveness of programs designed to 
     promote public awareness of Federal Government climate 
     adaptation and mitigation activities; and
       (6) other projects that advance the mission of the program.
       (c) Report.--The Secretary of Energy shall provide Congress 
     with a report on progress towards establishing the program 
     within 120 days after the date of enactment of this Act.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

                       Subtitle G--Miscellaneous

     SEC. 271. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS 
                   TECHNOLOGIES.

       Section 543 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8253) is amended to read as follows:

     ``SEC. 543. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS 
                   TECHNOLOGIES.

       ``(a) In General.--Not later than 1 year after the date of 
     enactment of the American Clean Energy and Security Act of 
     2009, each Federal agency shall collaborate with the Director 
     of the Office of Management and Budget (referred to in this 
     section as the `Director') to create an implementation 
     strategy, including best practices and measurement and 
     verification techniques, for the purchase and use of energy 
     efficient information and communications technologies and 
     practices. Wherever possible, existing standards, 
     specifications, performance metrics, and best management 
     practices that have been or are being developed in open 
     collaboration and with broad stakeholder input and review 
     should be incorporated. In addition, agency strategies shall 
     be flexible, cost-effective, and based on the specific 
     operating requirements and statutory mission of each agency.
       ``(b) Energy Efficient Information and Communications 
     Technologies.--In developing an implementation strategy, each 
     agency shall--
       ``(1) consider information and communications technologies 
     and infrastructure, including, but not limited to, advanced 
     metering infrastructure, information and communications 
     technology services and products, efficient data center 
     strategies, applications modernization and rationalization, 
     building systems energy efficiency, and telework; and
       ``(2) ensure that agencies are eligible to realize the 
     savings and rewards brought about through increased 
     efficiencies.
       ``(c) Performance Goals.--Not later than 6 months after the 
     date of enactment of the American Clean Energy and Security 
     Act of 2009, the Director shall establish performance goals 
     for evaluating the efforts of the agencies in improving the 
     maintenance, purchase and use of energy efficiency of 
     information and communications technology systems. These 
     performance goals should measure information technology costs 
     over a specific time horizon (3 to 5 years), providing a 
     complete picture of all costs, including energy.
       ``(d) Report.--Not later than 18 months after the date of 
     enactment of the American Clean Energy and Security Act of 
     2009, and annually thereafter, the Director shall submit a 
     report to Congress on--
       ``(1) the progress of each agency in reducing energy use 
     through its implementation strategy; and
       ``(2) new and emerging technologies that would help achieve 
     increased energy efficiency.''.

     SEC. 272. NATIONAL ENERGY EFFICIENCY GOALS.

       (a) Goals.--The energy efficiency goals of the United 
     States are--
       (1) to achieve an improvement in the overall energy 
     productivity of the United States (measured in gross domestic 
     product per unit of energy input) of at least 2.5 percent per 
     year by the year 2012; and
       (2) to maintain that annual rate of improvement each year 
     through 2030.
       (b) Strategic Plan.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Energy (referred to 
     in this section as the ``Secretary''), in cooperation with 
     the Administrator and the heads of other appropriate Federal 
     agencies, shall develop a strategic plan to achieve the 
     national goals for improvement in energy productivity 
     established under subsection (a).
       (2) Public input and comment.--The Secretary shall develop 
     the plan in a manner that provides appropriate opportunities 
     for public input and comment.
       (c) Plan Contents.--The strategic plan shall--
       (1) identify future regulatory, funding, and policy 
     priorities that would assist the United States in meeting the 
     national goals;
       (2) include energy savings estimates for each sector; and
       (3) include data collection methodologies and compilations 
     used to establish baseline and energy savings data.
       (d) Plan Updates.--
       (1) In general.--The Secretary shall--
       (A) update the strategic plan biennially; and
       (B) include the updated strategic plan in the national 
     energy policy plan required by section 801 of the Department 
     of Energy Organization Act (42 U.S.C. 7321).
       (2) Contents.--In updating the plan, the Secretary shall--
       (A) report on progress made toward implementing efficiency 
     policies to achieve the national goals established under 
     subsection (a); and
       (B) verify, to the maximum extent practicable, energy 
     savings resulting from the policies.
       (e) Report to Congress and the Public.--The Secretary shall 
     submit to Congress, and make available to the public, the 
     initial strategic plan developed under subsection (b) and 
     each updated plan.

     SEC. 273. AFFILIATED ISLAND ENERGY INDEPENDENCE TEAM.

       (a) Definitions.--In this section:
       (1) Affiliated island.--The term ``affiliated island'' 
     means--
       (A) the Commonwealth of Puerto Rico;
       (B) Guam;
       (C) American Samoa;
       (D) the Commonwealth of the Northern Mariana Islands;
       (E) the Federated States of Micronesia;
       (F) the Republic of the Marshall Islands;
       (G) the Republic of Palau; and
       (H) the United States Virgin Islands.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy (acting through the Assistant Secretary of Energy 
     Efficiency and Renewable Energy), in consultation with the 
     Secretary of the Interior and the Secretary of State.
       (3) Team.--The term ``team'' means the team established by 
     the Secretary under subsection (b).
       (b) Establishment.--As soon as practicable after the date 
     of enactment of this Act, the Secretary shall assemble a team 
     of technical, policy, and financial experts to address the 
     energy needs of each affiliated island--
       (1) to reduce the reliance and expenditure of each 
     affiliated island on imported fossil fuels;
       (2) to increase the use by each affiliated island of 
     indigenous, nonfossil fuel energy sources;
       (3) to improve the performance of the energy infrastructure 
     of the affiliated island through projects--
       (A) to improve the energy efficiency of power generation, 
     transmission, and distribution; and
       (B) to increase consumer energy efficiency;
       (4) to improve the performance of the energy infrastructure 
     of each affiliated island through enhanced planning, 
     education, and training;
       (5) to adopt research-based and public-private partnership-
     based approaches as appropriate;
       (6) to stimulate economic development and job creation; and
       (7) to enhance the engagement by the Federal Government in 
     international efforts to address island energy needs.
       (c) Duties of Team.--
       (1) Energy action plans.--
       (A) In general.--In accordance with subparagraph (B), the 
     team shall provide technical, programmatic, and financial 
     assistance to each utility of each affiliated island, and the 
     government of each affiliated island, as appropriate, to 
     develop and implement an energy Action Plan for each 
     affiliated island to reduce the reliance of each affiliated 
     island on imported fossil fuels through increased efficiency 
     and use of indigenous clean-energy resources.
       (B) Requirements.--Each Action Plan described in 
     subparagraph (A) for each affiliated island shall require and 
     provide for--

[[Page 16577]]

       (i) the conduct of 1 or more studies to assess 
     opportunities to reduce fossil fuel use through--

       (I) the improvement of the energy efficiency of the 
     affiliated island; and
       (II) the increased use by the affiliated island of 
     indigenous clean-energy resources;

       (ii) the identification and implementation of the most 
     cost-effective strategies and projects to reduce the 
     dependence of the affiliated island on fossil fuels;
       (iii) the promotion of education and training activities to 
     improve the capacity of the local utilities of the affiliated 
     island, and the government of the affiliated island, as 
     appropriate, to plan for, maintain, and operate the energy 
     infrastructure of the affiliated island through the use of 
     local or regional institutions, as appropriate;
       (iv) the coordination of the activities described in clause 
     (iii) to leverage the expertise and resources of 
     international entities, the Department of Energy, the 
     Department of the Interior, and the regional utilities of the 
     affiliated island;
       (v) the identification, and development, as appropriate, of 
     research-based and private-public, partnership approaches to 
     implement the Action Plan; and
       (vi) any other component that the Secretary determines to 
     be necessary to reduce successfully the use by each 
     affiliated island of fossil fuels.
       (2) Reports to secretary.--Not later than 1 year after the 
     date on which the Secretary establishes the team and 
     biennially thereafter, the team shall submit to the Secretary 
     a report that contains a description of the progress of each 
     affiliated island in--
       (A) implementing the Action Plan of the affiliated island 
     developed under paragraph (1)(A); and
       (B) reducing the reliance of the affiliated island on 
     fossil fuels.
       (d) Use of Regional Utility Organizations.--To provide 
     expertise to affiliated islands to assist the affiliated 
     islands in meeting the purposes of this section, the 
     Secretary shall consider--
       (1) including regional utility organizations in the 
     establishment of the team; and
       (2) providing assistance through regional utility 
     organizations.
       (e) Annual Reports to Congress.--Not later than 30 days 
     after the date on which the Secretary receives a report 
     submitted by the team under subsection (c)(2), the Secretary 
     shall submit to the appropriate committees of Congress a 
     report that contains a summary of the report of the team.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 274. PRODUCT CARBON DISCLOSURE PROGRAM.

       (a) EPA Study.--The Administrator shall conduct a study to 
     determine the feasibility of establishing a national program 
     for measuring, reporting, publicly disclosing, and labeling 
     products or materials sold in the United States for their 
     carbon content, and shall, not later than 18 months after the 
     date of enactment of this Act, transmit a report to Congress 
     which shall include the following:
       (1) A determination of whether a national product carbon 
     disclosure program and labeling program would be effective in 
     achieving the intended goals of achieving greenhouse gas 
     reductions and an examination of existing programs globally 
     and their strengths and weaknesses.
       (2) Criteria for identifying and prioritizing sectors and 
     products and processes that should be covered in such program 
     or programs.
       (3) An identification of products, processes, or sectors 
     whose inclusion could have a substantial carbon impact 
     (prioritizing industrial products such as iron and steel, 
     aluminum, cement, chemicals, and paper products, and also 
     including food, beverage, hygiene, cleaning, household 
     cleaners, construction, metals, clothing, semiconductor, and 
     consumer electronics).
       (4) Suggested methodology and protocols for measuring the 
     carbon content of the products across the entire carbon 
     lifecycle of such products for use in a carbon disclosure 
     program and labeling program.
       (5) A review of existing greenhouse gas product accounting 
     standards, methodologies, and practices including the 
     Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and 
     Publically Available Specification 2050, and including a 
     review of the strengths and weaknesses of each.
       (6) A survey of secondary databases including the 
     Manufacturing Energy Consumption Survey and evaluate the 
     quality of data for use in a product carbon disclosure 
     program and product carbon labeling program and an 
     identification of gaps in the data relative to the potential 
     purposes of a national product carbon disclosure program and 
     product carbon labeling program and development of 
     recommendations for addressing these data gaps.
       (7) An assessment of the utility of comparing products and 
     the appropriateness of product carbon standards.
       (8) An evaluation of the information needed on a label for 
     clear and accurate communication, including what pieces of 
     quantitative and qualitative information needs to be 
     disclosed.
       (9) An evaluation of the appropriate boundaries of the 
     carbon lifecycle analysis for different sectors and products.
       (10) An analysis of whether default values should be 
     developed for products whose producer does not participate in 
     the program or does not have data to support a disclosure or 
     label and determine best ways to develop such default values.
       (11) A recommendation of certification and verification 
     options necessary to assure the quality of the information 
     and avoid greenwashing or the use of insubstantial or 
     meaningless environmental claims to promote a product.
       (12) An assessment of options for educating consumers about 
     product carbon content and the product carbon disclosure 
     program and product carbon labeling program.
       (13) An analysis of the costs and timelines associated with 
     establishing a national product carbon disclosure program and 
     product carbon labeling program, including options for a 
     phased approach. Costs should include those for businesses 
     associated with the measurement of carbon footprints and 
     those associated with creating a product carbon label and 
     managing and operating a product carbon labeling program, and 
     options for minimizing these costs.
       (14) An evaluation of incentives (such as financial 
     incentives, brand reputation, and brand loyalty) to determine 
     whether reductions in emissions can be accelerated through 
     encouraging more efficient manufacturing or by encouraging 
     preferences for lower-emissions products to substitute for 
     higher-emissions products whose level of performance is no 
     better.
       (b) Development of National Carbon Disclosure Program.--
     Upon conclusion of the study, and not more than 36 months 
     after the date of enactment of this Act, the Administrator 
     shall establish a national product carbon disclosure program, 
     participation in which shall be voluntary, and which may 
     involve a product carbon label with broad applicability to 
     the wholesale and consumer markets to enable and encourage 
     knowledge about carbon content by producers and consumers and 
     to inform efforts to reduce energy consumption (carbon 
     dioxide equivalent emissions) nationwide. In developing such 
     a program, the Administrator shall--
       (1) consider the results of the study conducted under 
     subsection (a);
       (2) consider existing and planned programs and proposals 
     and measurement standards (including the Publicly Available 
     Specification 2050, standards to be developed by the World 
     Resource Institute/World Business Council for Sustainable 
     Development, the International Standards Organization, and 
     the bill AB19 pending in the California legislature);
       (3) consider the compatibility of a national product carbon 
     disclosure program with existing programs;
       (4) utilize incentives and other means to spur the adoption 
     of product carbon disclosure and product carbon labeling;
       (5) develop protocols and parameters for a product carbon 
     disclosure program, including a methodology and formula for 
     assessing, verifying, and potentially labeling a product's 
     greenhouse gas content, and for data quality requirements to 
     allow for product comparison;
       (6) create a means to--
       (A) document best practices;
       (B) ensure clarity and consistency;
       (C) work with suppliers, manufacturers, and retailers to 
     encourage participation;
       (D) ensure that protocols are consistent and comparable 
     across like products; and
       (E) evaluate the effectiveness of the program;
       (7) make publicly available information on product carbon 
     content to ensure transparency;
       (8) provide for public outreach, including a consumer 
     education program to increase awareness;
       (9) develop training and education programs to help 
     businesses learn how to measure and communicate their carbon 
     footprint and easy tools and templates for businesses to use 
     to reduce cost and time to measure their products' carbon 
     lifecycle;
       (10) consult with the Secretary of Energy, the Secretary of 
     Commerce, the Federal Trade Commission, and other Federal 
     agencies, as necessary;
       (11) gather input from stakeholders through consultations, 
     public workshops or hearings with representatives of consumer 
     product manufacturers, consumer groups, and environmental 
     groups;
       (12) utilize systems for verification and product 
     certification that will ensure that claims manufacturers make 
     about their products are valid;
       (13) create a process for reviewing the accuracy of product 
     carbon label information and protecting the product carbon 
     label in the case of a change in the product's energy source, 
     supply chain, ingredients, or other factors, and specify the 
     frequency to which data should be updated; and
       (14) develop a standardized, easily understandable carbon 
     label, if appropriate, and create a process for responding to 
     inaccuracies and misuses of such a label.
       (c) Report to Congress.--Not later than 5 years after the 
     program is established pursuant to subsection (b), the 
     Administrator

[[Page 16578]]

     shall report to Congress on the effectiveness and impact of 
     the program, the level of voluntary participation, and any 
     recommendations for additional measures.
       (d) Definitions.--As used in this section--
       (1) the term ``carbon content'' means the amount of 
     greenhouse gas emissions and their warming impact on the 
     atmosphere expressed in carbon dioxide equivalent associated 
     with a product's value chain;
       (2) the term ``carbon footprint'' means the level of 
     greenhouse gas emissions produced by a particular activity, 
     service, or entity; and
       (3) the term ``carbon lifecycle'' means the greenhouse gas 
     emissions that are released as part of the processes of 
     creating, producing, processing or manufacturing, modifying, 
     transporting, distributing, storing, using, recycling, or 
     disposing of goods and services.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator $5,000,000 for the 
     study required by subsection (a) and $25,000,000 for each of 
     fiscal years 2010 through 2025 for the program required under 
     subsection (b).

     SEC. 275. INDUSTRIAL ENERGY EFFICIENCY EDUCATION AND TRAINING 
                   INITIATIVE.

       (a) In General.--The Secretary of Energy shall carry out a 
     national education and awareness program for the purpose of 
     informing building, facility, and industrial plant owners and 
     managers and decisionmakers, government leaders, and industry 
     leaders about the large energy-saving potential of greater 
     use of mechanical insulation, and other benefits.
       (b) Purpose and Goals.--
       (1) Purpose.--The purpose of the initiative shall be to 
     increase the energy efficiency of the commercial and 
     industrial sectors through an ongoing program that will 
     include--
       (A) education and training sessions;
       (B) Web-based information; and
       (C) advertising.
       (2) Goals.--The goals of the initiative shall be to--
       (A) educate and motivate commercial building owners and 
     industrial facility managers to utilize mechanical insulation 
     in new and existing facilities;
       (B) preserve and create jobs while reducing energy and 
     greenhouse gas emissions;
       (C) create a safer working environment and make businesses 
     more competitive in a global economy; and
       (D) motivate and empower the industry to make better use of 
     mechanical insulation through awareness, education, and 
     training.
       (c) Report.--Not later than July 1, 2013, the Secretary 
     shall submit to Congress a report describing the extent by 
     which the initiative has been enacted and the actual and 
     projected effectiveness of the program under this section, 
     including the energy efficiency, greenhouse gas emissions 
     reductions, cost savings, and safety benefits at 
     manufacturing facilities, power plants, refineries, 
     hospitals, universities, government buildings, and other 
     commercial and industrial locations.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated $3,500,000 for each of fiscal years 2010 
     through 2014 to carry out this section.   The Secretary may 
     enter into a cooperative agreement, including grant funding, 
     with an industry association and union working 
     collaboratively and having expertise on the installation, 
     maintenance, measure of efficiencies and standards, and 
     certification of mechanical insulation in buildings and 
     facilities.
       (e) Termination of Authority.--The program carried out 
     under this section shall terminate on December 31, 2014.

     SEC. 276. SENSE OF CONGRESS.

       It is the sense of Congress that the United States should--
       (1) continue to actively promote, within the International 
     Civil Aviation Organization, the development of a global 
     framework for the regulation of greenhouse gas emissions from 
     civil aircraft that recognizes the uniquely international 
     nature of the industry and treats commercial aviation 
     industries in all countries fairly; and
       (2) work with foreign governments towards a global 
     agreement that reconciles foreign carbon emissions reduction 
     programs to minimize duplicative requirements and avoids 
     unnecessary complication for the aviation industry, while 
     still achieving the environmental goals.

     Subtitle H--Green Resources for Energy Efficient Neighborhoods

     SEC. 281. SHORT TITLE.

       This subtitle may be cited as the ``Green Resources for 
     Energy Efficient Neighborhoods Act of 2009'' or the ``GREEN 
     Act of 2009''.

     SEC. 282. DEFINITIONS.

       For purposes of this subtitle, the following definitions 
     shall apply:
       (1) Green building standards.--The term ``green building 
     standards'' means standards to require use of sustainable 
     design principles to reduce the use of nonrenewable 
     resources, encourage energy-efficient construction and 
     rehabilitation and the use of renewable energy resources, 
     minimize the impact of development on the environment, and 
     improve indoor air quality.
       (2) HUD.--The term ``HUD'' means the Department of Housing 
     and Urban Development.
       (3) HUD assistance.--The term ``HUD assistance'' means 
     financial assistance that is awarded, competitively or 
     noncompetitively, allocated by formula, or provided by HUD 
     through loan insurance or guarantee.
       (4) Nonresidential structure.--The term ``nonresidential 
     structures'' means only nonresidential structures that are 
     appurtenant to single-family or multifamily housing 
     residential structures, or those that are funded by the 
     Secretary of Housing and Urban Development through the HUD 
     Community Development Block Grant program.
       (5) Secretary.--The term ``Secretary'', unless otherwise 
     specified, means the Secretary of Housing and Urban 
     Development.

     SEC. 283. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION 
                   INCENTIVES FOR HUD PROGRAMS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary shall issue such 
     regulations as may be necessary to establish annual energy 
     efficiency participation incentives to encourage participants 
     in programs administered by the Secretary, including 
     recipients under programs for which HUD assistance is 
     provided, to achieve substantial improvements in energy 
     efficiency.
       (b) Requirement for Appropriation of Funds.--The 
     requirement under subsection (a) for the Secretary to provide 
     annual energy efficiency participation incentives pursuant to 
     the provisions of this subtitle shall be subject to the 
     annual appropriation of necessary funds.

     SEC. 284. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS 
                   FOR ADDITIONAL CREDIT.

       (a) Basic HUD Standard.--
       (1) Residential structures.--A residential single-family or 
     multifamily structure shall be considered to comply with the 
     energy efficiency standards under this subsection if--
       (A) the structure complies with an energy efficiency 
     building code that has been certified as in compliance with 
     section 304 of the Energy Conservation and Production Act (42 
     U.S.C. 6833) as amended by section 201 of this Act, or a 
     national energy efficiency building code adopted pursuant to 
     that section;
       (B) the structure complies with the applicable provisions 
     of the American Society of Heating, Refrigerating, and Air-
     Conditioning Engineers Standard 90.1-2007, as such standard 
     or successor standard is in effect for purposes of this 
     section pursuant subsection (c);
       (C) the structure complies with the applicable provisions 
     of the 2009 International Energy Conservation Code, as such 
     standard or successor standard is in effect for purposes of 
     this section pursuant subsection (c);
       (D) in the case only of an existing structure, where 
     determined cost effective, the structure has undergone 
     rehabilitation or improvements, completed after the date of 
     the enactment of this Act, and the energy consumption for the 
     structure has been reduced by at least 20 percent from the 
     previous level of consumption, as determined in accordance 
     with energy audits performed both before and after any 
     rehabilitation or improvements undertaken to reduce such 
     consumption; or
       (E) the structure complies with the applicable provisions 
     of such other energy efficiency requirements, standards, 
     checklists, or ratings systems as the Secretary may adopt and 
     apply by regulation, as may be necessary, for purposes of 
     this section for specific types of residential single-family 
     or multifamily structures or otherwise, except that the 
     Secretary shall make a determination regarding whether to 
     adopt and apply any such requirements, standards, checklists, 
     or rating system for purposes of this section not later than 
     the expiration of the 180-day period beginning upon the date 
     of receipt of any written request, made in such form as the 
     Secretary shall provide, for such adoption and application.

     In addition to compliance with any of subparagraphs (A) 
     through (E), the Secretary shall by regulation require, for 
     any newly constructed residential single-family or 
     multifamily structure to be considered to comply with the 
     energy efficiency standards under this subsection, that the 
     structure have appropriate electrical outlets with the 
     facility and capacity to recharge a standard electric 
     passenger vehicle, including an electric hybrid vehicle, 
     where such vehicle would normally be parked.
       (2) Nonresidential structures.--For purposes of this 
     section, the Secretary shall identify and adopt by 
     regulation, as may be necessary, energy efficiency 
     requirements, standards, checklists, or rating systems 
     applicable to nonresidential structures that are constructed 
     or rehabilitated with HUD assistance. A nonresidential 
     structure shall be considered to comply with the energy 
     efficiency standards under this subsection if the structure 
     complies with the applicable provisions of any such energy 
     efficiency requirements, standards, checklist, or rating 
     systems identified and adopted by the Secretary pursuant to 
     this paragraph, as such standards are in effect for purposes 
     of this section pursuant to subsection (c).
       (3) Effect.--Nothing in this subsection may be construed to 
     require any structure to

[[Page 16579]]

     comply with any standard established or adopted pursuant to 
     this subsection, or identified in this subsection, or to 
     provide any benefit or credit under any Federal program for 
     any structure that complies with any such standard, except to 
     the extent that--
       (A) any provision of law other than this subsection 
     provides a benefit or credit under a Federal program for 
     compliance with a standard established or adopted pursuant to 
     this subsection, or identified in this subsection; or
       (B) the Secretary specifically provides pursuant to 
     subsection (c) for the applicability of such standard.
       (b) Enhanced Energy Efficiency Standards for Purposes of 
     Providing Additional Credit Under Certain Federally Assisted 
     Housing Programs.--
       (1) Purpose and effect.--
       (A) Purpose.--The purpose of this subsection is to 
     establish energy efficiency and conservation standards and 
     green building standards that--
       (i) provide for greater energy efficiency and conservation 
     in structures than is required for compliance with the energy 
     efficiency standards under subsection (a) and then in effect;
       (ii) provide for green and sustainable building standards 
     not required by such standards; and
       (iii) can be used in connection with Federal housing, 
     housing finance, and development programs to provide 
     incentives for greater energy efficiency and conservation and 
     for green and sustainable building methods, elements, 
     practices, and materials.
       (B) Effect.--Nothing in this subsection may be construed to 
     require any structure to comply with any standard established 
     pursuant to this subsection or to provide any benefit or 
     credit under any Federal program for any structure, except to 
     the extent that any provision of law other than this 
     subsection provides a benefit or credit under a Federal 
     program for compliance with a standard established pursuant 
     to this subsection.
       (2) Compliance.--A residential or nonresidential structure 
     shall be considered to comply with the enhanced energy 
     efficiency and conservation standards or the green building 
     standards under this subsection, to the extent that such 
     structure complies with the applicable provisions of the 
     standards under paragraph (3) or (4), respectively (as such 
     standards are in effect for purposes of this section, 
     pursuant to paragraph (7)), in a manner that is not required 
     for compliance with the energy efficiency standards under 
     subsection (a) then in effect and subject to the Secretary's 
     determination of which standards are applicable to which 
     structures.
       (3) Energy efficiency and conservation standards.--The 
     energy efficiency and conservation standards under this 
     paragraph are as follows:
       (A) Residential structures.--With respect to residential 
     structures:
       (i) New construction.--For new construction, the Energy 
     Star standards established by the Environmental Protection 
     Agency, as such standards are in effect for purposes of this 
     subsection pursuant to paragraph (7);
       (ii) Existing structures.--For existing structures, a 
     reduction in energy consumption from the previous level of 
     consumption for the structure, as determined in accordance 
     with energy audits performed both before and after any 
     rehabilitation or improvements undertaken to reduce such 
     consumption, that exceeds the reduction necessary for 
     compliance with the energy efficiency standards under 
     subsection (a) then in effect and applicable to existing 
     structures.
       (B) Nonresidential structures.--With respect to 
     nonresidential structures, such energy efficiency and 
     conservation requirements, standards, checklists, or rating 
     systems for nonresidential structures as the Secretary shall 
     identify and adopt by regulation, as may be necessary, for 
     purposes of this paragraph.
       (4) Green building standards.--The green building standards 
     under this paragraph are as follows:
       (A) The national Green Communities criteria checklist for 
     residential construction that provides criteria for the 
     design, development, and operation of affordable housing, as 
     such checklist or successor checklist is in effect for 
     purposes of this section pursuant to paragraph (7).
       (B) The gold certification level for the LEED for New 
     Construction rating system, the LEED for Homes rating system, 
     the LEED for Core and Shell rating system, as applicable, as 
     such systems or successor systems are in effect for purposes 
     of this section pursuant to paragraph (7).
       (C) The Green Globes assessment and rating system of the 
     Green Buildings Initiative.
       (D) For manufactured housing, energy star rating with 
     respect to fixtures, appliances, and equipment in such 
     housing, as such standard or successor standard is in effect 
     for purposes of this section pursuant to paragraph (7).
       (E) The National Green Building Standard.
       (F) Any other requirements, standards, checklists, or 
     rating systems for green building or sustainability as the 
     Secretary may identify and adopt by regulation, as may be 
     necessary for purposes of this paragraph, except that the 
     Secretary shall make a determination regarding whether to 
     adopt and apply any such requirements, standards, checklist, 
     or rating system for purposes of this section not later than 
     the expiration of the 180-day period beginning upon date of 
     receipt of any written request, made in such form as the 
     Secretary shall provide, for such adoption and application.
       (5) Green building.--For purposes of this subsection, the 
     term ``green building'' means, with respect to standards for 
     structures, standards to require use of sustainable design 
     principles to reduce the use of nonrenewable resources, 
     minimize the impact of development on the environment, and to 
     improve indoor air quality.
       (6) Energy audits.--The Secretary shall establish standards 
     and requirements for energy audits for purposes of paragraph 
     (3)(A)(ii) and, in establishing such standards, may consult 
     with any advisory committees established pursuant to section 
     285(c)(2) of this subtitle.
       (7) Applicability and updating of standards.--
       (A) Applicability.--Except as provided in subparagraph (B), 
     the requirements, standards, checklists, and rating systems 
     referred to in this subsection that are in effect for 
     purposes of this subsection are such requirements, standards, 
     checklists, and systems are as in existence upon the date of 
     the enactment of this Act.
       (B) Updating.--For purposes of this section, the Secretary 
     may adopt and apply by regulation, as may be necessary, 
     future amendments and supplements to, and editions of, the 
     requirements, standards, checklists, and rating systems 
     referred to in this subsection, including applicable energy 
     efficiency building codes that are certified as in compliance 
     with section 304 of the Energy Conservation and Production 
     Act (42 U.S.C. 6833) as amended by section 201 of this Act, 
     or national energy efficiency building codes adopted pursuant 
     to that section.
       (c) Authority of Secretary To Apply Standards to Federally 
     Assisted Housing and Programs.--
       (1) HUD housing and programs.--The Secretary of Housing and 
     Urban Development may, by regulation, provide for the 
     applicability of the energy efficiency standards under 
     subsection (a) or the enhanced energy efficiency and 
     conservation standards and green building standards under 
     subsection (b), or both, with respect to any covered 
     federally assisted housing described in paragraph (3)(A) or 
     any HUD assistance, subject to minimum Federal codes or 
     standards then in effect.
       (2) Rural housing.--The Secretary of Agriculture may, by 
     regulation, provide for the applicability of the energy 
     efficiency standards under subsection (a) or the enhanced 
     energy efficiency and conservation standards and green 
     building standards under subsection (b), or both, with 
     respect to any covered federally assisted housing described 
     in paragraph (3)(B) or any assistance provided with respect 
     to rural housing by the Rural Housing Service of the 
     Department of Agriculture, subject to minimum Federal codes 
     or standards then in effect.
       (3) Covered federally assisted housing.--For purposes of 
     this subsection, the term ``covered federally assisted 
     housing'' means--
       (A) any residential or nonresidential structure for which 
     any HUD assistance is provided; and
       (B) any new construction of single-family housing (other 
     than manufactured homes) subject to mortgages insured, 
     guaranteed, or made by the Secretary of Agriculture under 
     title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.).

     SEC. 285. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION 
                   PROGRAM FOR MULTIFAMILY HOUSING PROJECTS 
                   ASSISTED WITH PROJECT-BASED RENTAL ASSISTANCE.

       (a) Authority.--For multifamily housing projects for which 
     project-based rental assistance is provided under a covered 
     multifamily assistance program, the Secretary shall, subject 
     to the availability of amounts provided in advance in 
     appropriation Acts, carry out a program to demonstrate the 
     effectiveness of funding a portion of the costs of meeting 
     the enhanced energy efficiency standards under section 
     284(b). At the discretion of the Secretary, the demonstration 
     program may include incentives for housing that is assisted 
     with Indian housing block grants provided pursuant to the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996, but only to the extent that such inclusion does not 
     violate such Act, its regulations, and the goal of such Act 
     of tribal self-determination.
       (b) Goals.--The demonstration program under this section 
     shall be carried out in a manner that--
       (1) protects the financial interests of the Federal 
     Government;
       (2) reduces the proportion of funds provided by the Federal 
     Government and by owners and residents of multifamily housing 
     projects that are used for costs of utilities for the 
     projects;
       (3) encourages energy efficiency and conservation by owners 
     and residents of multifamily housing projects and 
     installation of renewable energy improvements, such as 
     improvements providing for use of solar, wind, geothermal, or 
     biomass energy sources;
       (4) creates incentives for project owners to carry out such 
     energy efficiency renovations

[[Page 16580]]

     and improvements by allowing a portion of the savings in 
     operating costs resulting from such renovations and 
     improvements to be retained by the project owner, 
     notwithstanding otherwise applicable limitations on 
     dividends;
       (5) promotes the installation, in existing residential 
     buildings, of energy-efficient and cost-effective 
     improvements and renewable energy improvements, such as 
     improvements providing for use of solar, wind, geothermal, or 
     biomass energy sources;
       (6) tests the efficacy of a variety of energy efficiency 
     measures for multifamily housing projects of various sizes 
     and in various geographic locations;
       (7) tests methods for addressing the various, and often 
     competing, incentives that impede owners and residents of 
     multifamily housing projects from working together to achieve 
     energy efficiency or conservation; and
       (8) creates a database of energy efficiency and 
     conservation, and renewable energy, techniques, energy-
     savings management practices, and energy efficiency and 
     conservation financing vehicles.
       (c) Approaches.--In carrying out the demonstration program 
     under this section, the Secretary may--
       (1) enter into agreements with the Building America Program 
     of the Department of Energy and other consensus committees 
     under which such programs, partnerships, or committees assume 
     some or all of the functions, obligations, and benefits of 
     the Secretary with respect to energy savings;
       (2) establish advisory committees to advise the Secretary 
     and any such third-party partners on technological and other 
     developments in the area of energy efficiency and the 
     creation of an energy efficiency and conservation credit 
     facility and other financing opportunities, which committees 
     shall include representatives of homebuilders, realtors, 
     architects, nonprofit housing organizations, environmental 
     protection organizations, renewable energy organizations, and 
     advocacy organizations for the elderly and persons with 
     disabilities; any advisory committees established pursuant to 
     this paragraph shall not be subject to the Federal Advisory 
     Committee Act (5 U.S.C. App.);
       (3) approve, for a period not to exceed 10 years, 
     additional adjustments in the maximum monthly rents or 
     additional project rental assistance, or additional Indian 
     housing block grant funds under the Native American Housing 
     Assistance and Self-Determination Act of 1996, as applicable, 
     for dwelling units in multifamily housing projects that are 
     provided project-based rental assistance under a covered 
     multifamily assistance program, in such amounts as may be 
     necessary to amortize a portion of the cost of energy 
     efficiency and conservation measures for such projects;
       (4) develop a competitive process for the award of such 
     additional assistance for multifamily housing projects 
     seeking to implement energy efficiency, renewable energy 
     sources, or conservation measures; and
       (5) waive or modify any existing statutory or regulatory 
     provision that would otherwise impair the implementation or 
     effectiveness of the demonstration program under this 
     section, including provisions relating to methods for rent 
     adjustments, comparability standards, maximum rent schedules, 
     and utility allowances; notwithstanding the preceding 
     provisions of this paragraph, the Secretary may not waive any 
     statutory requirement relating to fair housing, 
     nondiscrimination, labor standards, or the environment, 
     except pursuant to existing authority to waive nonstatutory 
     environmental and other applicable requirements.
       (d) Requirement.--During the 4-year period beginning 12 
     months after the date of the enactment of this Act, the 
     Secretary shall carry out demonstration programs under this 
     section with respect to not fewer than 50,000 dwelling units.
       (e) Selection.--
       (1) Scope.--In order to provide a broad and representative 
     profile for use in designing a program which can become 
     operational and effective nationwide, the Secretary shall 
     carry out the demonstration program under this section with 
     respect to dwelling units located in a wide variety of 
     geographic areas and project types assisted by the various 
     covered multifamily assistance programs and using a variety 
     of energy efficiency and conservation and funding techniques 
     to reflect differences in climate, types of dwelling units 
     and technical and scientific methodologies, and financing 
     options. The Secretary shall ensure that the geographic areas 
     included in the demonstration program include dwelling units 
     on Indian lands (as such term is defined in section 2601 of 
     the Energy Policy Act of 1992 (25 U.S.C. 3501), to the extent 
     that dwelling units on Indian land have the type of 
     residential structures that are the focus of the 
     demonstration program.
       (2) Priority.--The Secretary shall provide priority for 
     selection for participation in the program under this section 
     based on the extent to which, as a result of assistance 
     provided, the project will comply with the energy efficiency 
     standards under subsection (a), (b), or (c) of section 284 of 
     this subtitle.
       (f) Use of Existing Partnerships.--To the extent feasible, 
     the Secretary shall--
       (1) utilize the Partnership for Advancing Technology in 
     Housing of the Department of Housing and Urban Development to 
     assist in carrying out the requirements of this section and 
     to provide education and outreach regarding the demonstration 
     program authorized under this section; and
       (2) consult with the Secretary of Energy, the Administrator 
     of the Environmental Protection Agency, and the Secretary of 
     the Army regarding utilizing the Building America Program of 
     the Department of Energy, the Energy Star Program, and the 
     Army Corps of Engineers, respectively, to determine the 
     manner in which they might assist in carrying out the goals 
     of this section and providing education and outreach 
     regarding the demonstration program authorized under this 
     section.
       (g) Limitation.--No amounts made available under the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5) may be used to carry out the demonstration program 
     under this section.
       (h) Reports.--
       (1) Annual.--Not later than the expiration of the 2-year 
     beginning upon the date of the enactment of this Act, and for 
     each year thereafter during the term of the demonstration 
     program, the Secretary shall submit a report to the Congress 
     annually that describes and assesses the demonstration 
     program under this section.
       (2) Final.--Not later than 6 months after the expiration of 
     the 4-year period described in subsection (d), the Secretary 
     shall submit a final report to the Congress assessing the 
     demonstration program, which--
       (A) shall assess the potential for expanding the 
     demonstration program on a nationwide basis; and
       (B) shall include descriptions of--
       (i) the size of each multifamily housing project for which 
     assistance was provided under the program;
       (ii) the geographic location of each project assisted, by 
     State and region;
       (iii) the criteria used to select the projects for which 
     assistance is provided under the program;
       (iv) the energy efficiency and conservation measures and 
     financing sources used for each project that is assisted 
     under the program;
       (v) the difference, before and during participation in the 
     demonstration program, in the amount of the monthly 
     assistance payments under the covered multifamily assistance 
     program for each project assisted under the program;
       (vi) the average length of the term of the such assistance 
     provided under the program for a project;
       (vii) the aggregate amount of savings generated by the 
     demonstration program and the amount of savings expected to 
     be generated by the program over time on a per-unit and 
     aggregate program basis;
       (viii) the functions performed in connection with the 
     implementation of the demonstration program that were 
     transferred or contracted out to any third parties;
       (ix) an evaluation of the overall successes and failures of 
     the demonstration program; and
       (x) recommendations for any actions to be taken as a result 
     of the such successes and failures.
       (3) Contents.--Each annual report pursuant to paragraph (1) 
     and the final report pursuant to paragraph (2) shall 
     include--
       (A) a description of the status of each multifamily housing 
     project selected for participation in the demonstration 
     program under this section; and
       (B) findings from the program and recommendations for any 
     legislative actions.
       (i) Covered Multifamily Assistance Program.--For purposes 
     of this section, the term ``covered multifamily assistance 
     program'' means--
       (1) the program under section 8 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f) for project-based 
     rental assistance;
       (2) the program under section 202 of the Housing Act of 
     1959 (12 U.S.C. 1701q) for assistance for supportive housing 
     for the elderly;
       (3) the program under section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 8013) for 
     supportive housing for persons with disabilities;
       (4) the program under section 236 of the National Housing 
     Act (12 U.S.C. 1715z-1 for assistance for rental housing 
     projects;
       (5) the program under section 515 of the Housing Act of 
     1949 (42 U.S.C. 1485) for rural rental housing; and
       (6) the program for assistance under the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4111).
       (j) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, including 
     providing rent adjustments, additional project rental 
     assistance, and incentives, $50,000,000 for each fiscal year 
     in which the demonstration program under this section is 
     carried out.
       (k) Regulations.--Not later than the expiration of the 180-
     day period beginning on the date of the enactment of this 
     Act, the Secretary shall issue any regulations necessary to 
     carry out this section.

[[Page 16581]]



     SEC. 286. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC 
                   HOUSING GOALS FOR ENERGY-EFFICIENT AND 
                   LOCATION-EFFICIENT MORTGAGES.

       Section 1336(a) of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 4566(a)), as amended by the Federal 
     Housing Finance Regulatory Reform Act of 2008 (Public Law 
     110-289; 122 Stat. 2654), is amended--
       (1) in paragraph (2), by striking ``paragraph (5)'' and 
     inserting ``paragraphs (5) and (6)''; and
       (2) by adding at the end the following new paragraph:
       ``(6) Additional credit.--
       ``(A) In general.--In assigning credit toward achievement 
     under this section of the housing goals for mortgage purchase 
     activities of the enterprises, the Director shall assign--
       ``(i) more than 125 percent credit, for any such purchase 
     that both--

       ``(I) complies with the requirements of such goals; and
       ``(II)(aa) supports housing that meets the energy 
     efficiency standards under section 284(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2009; or
       ``(bb) is a location-efficient mortgage, as such term is 
     defined in section 1335(e); and

       ``(ii) credit in addition to credit under clause (i), for 
     any such purchase that both--

       ``(I) complies with the requirements of such goals, and
       ``(II) supports housing that complies with the enhanced 
     energy efficiency and conservation standards, or the green 
     building standards, under section 284(b) of such Act, or 
     both,

     and such additional credit shall be given based on the extent 
     to which the housing supported with such purchases complies 
     with such standards.
       ``(B) Treatment of additional credit.--The availability of 
     additional credit under this paragraph shall not be used to 
     increase any housing goal, subgoal, or target established 
     under this subpart.''.

     SEC. 287. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-
                   EFFICIENT AND LOCATION-EFFICIENT MORTGAGES.

       Section 1335 of Federal Housing Enterprises Financial 
     Safety and Soundness Act of 1992 (12 U.S.C. 4565), as amended 
     by the Federal Housing Finance Regulatory Reform Act of 2008 
     (Public Law 110-289; 122 Stat. 2654), is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following new subparagraph:
       ``(D) Markets for energy-efficient and location-efficient 
     mortgages.--
       ``(i) Duty.--Subject to clause (ii), the enterprise shall 
     develop loan products and flexible underwriting guidelines to 
     facilitate a secondary market for energy-efficient and 
     location-efficient mortgages on housing for very low-, low-, 
     and moderate-income families, and for second and junior 
     mortgages made for purposes of energy efficiency or renewable 
     energy improvements, or both.
       ``(ii) Authority to suspend.--Notwithstanding any other 
     provision of this section, the Director may suspend the 
     applicability of the requirement under clause (i) with 
     respect to an enterprise, for such period as is necessary, if 
     the Director determines that exigent circumstances exist and 
     such suspension is appropriate to ensure the safety and 
     soundness of the portfolio holdings of the enterprise.'';
       (2) by adding at the end the following new subsection:
       ``(e) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Energy-efficient mortgage.--The term `energy-
     efficient mortgage' means a mortgage loan under which the 
     income of the borrower, for purposes of qualification for 
     such loan, is considered to be increased by not less than $1 
     for each $1 of savings projected to be realized by the 
     borrower as a result of cost-effective energy-saving design, 
     construction or improvements (including use of renewable 
     energy sources, such as solar, geothermal, biomass, and wind, 
     super-insulation, energy-saving windows, insulating glass and 
     film, and radiant barrier) for the home for which the loan is 
     made.
       ``(2) Location-efficient mortgage.--The term `location-
     efficient mortgage' means a mortgage loan under which--
       ``(A) the income of the borrower, for purposes of 
     qualification for such loan, is considered to be increased by 
     not less than $1 for each $1 of savings projected to be 
     realized by the borrower because the location of the home for 
     which loan is made will result in decreased transportation 
     costs for the household of the borrower; or
       ``(B) the sum of the principal, interest, taxes, and 
     insurance due under the mortgage loan is decreased by not 
     less than $1 for each $1 of savings projected to be realized 
     by the borrower because the location of the home for which 
     loan is made will result in decreased transportation costs 
     for the household of the borrower.''.

     SEC. 288. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA 
                   MORTGAGE INSURANCE PROGRAMS AND NATIVE AMERICAN 
                   AND NATIVE HAWAIIAN LOAN GUARANTEE PROGRAMS.

       (a) FHA Mortgage Insurance.--
       (1) Requirement.--Title V of the National Housing Act is 
     amended by adding after section 542 (12 U.S.C. 1735f-20) the 
     following new section:

     ``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.

       ``(a) Underwriting Standards.--The Secretary shall 
     establish a method to consider, in its underwriting standards 
     for mortgages on single-family housing meeting the energy 
     efficiency standards under section 284(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2009 that 
     are insured under this Act, the impact that savings on 
     utility costs has on the income of the mortgagor.
       ``(b) Goal.--It is the sense of the Congress that, in 
     carrying out this Act, the Secretary should endeavor to 
     insure mortgages on single-family housing meeting the energy 
     efficiency standards under section 284(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2009 such 
     that at least 50,000 such mortgages are insured during the 
     period beginning upon the date of the enactment of such Act 
     and ending on December 31, 2012.''.
       (2) Reporting on defaults.--Section 540(b) of the National 
     Housing Act (12 U.S.C. 1735f-18(b)) is amended by adding at 
     the end the following new paragraph:
       ``(3) With respect to each collection period that commences 
     after December 31, 2011, the total number of mortgages on 
     single-family housing meeting the energy efficiency standards 
     under section 284(a) of the Green Resources for Energy 
     Efficient Neighborhoods Act of 2009 that are insured by the 
     Secretary during the applicable collection period, the number 
     of defaults and foreclosures occurring on such mortgages 
     during such period, the percentage of the total of such 
     mortgages insured during such period on which defaults and 
     foreclosure occurred, and the rate for such period of 
     defaults and foreclosures on such mortgages compared to the 
     overall rate for such period of defaults and foreclosures on 
     mortgages for single-family housing insured under this Act by 
     the Secretary.''.
       (b) Indian Housing Loan Guarantees.--
       (1) Requirement.--Section 184 of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
       (A) by redesignating subsection (l) as subsection (m); and
       (B) by inserting after subsection (k) the following new 
     subsection:
       ``(l) Consideration of Energy Efficiency.--The Secretary 
     shall establish a method to consider, in its underwriting 
     standards for loans for single-family housing meeting the 
     energy efficiency standards under section 284(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2009 that 
     are guaranteed under this section, the impact that savings on 
     utility costs has on the income of the borrower.''.
       (2) Reporting on defaults.--Section 540(b) of the National 
     Housing Act (12 U.S.C. 1735f-18(b)), as amended by subsection 
     (a)(2) of this section, is further amended by adding at the 
     end the following new paragraph:
       ``(4) With respect to each collection period that commences 
     after December 31, 2011, the total number of loans guaranteed 
     under section 184 of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1715z-13a) on single-family housing 
     meeting the energy efficiency standards under section 284(a) 
     of the Green Resources for Energy Efficient Neighborhoods Act 
     of 2009 that are guaranteed by the Secretary during the 
     applicable collection period, the number of defaults and 
     foreclosures occurring on such loans during such period, the 
     percentage of the total of such loans guaranteed during such 
     period on which defaults and foreclosure occurred, and the 
     rate for such period of defaults and foreclosures on such 
     loans compared to the overall rate for such period of 
     defaults and foreclosures on loans for single-family housing 
     guaranteed under such section 184 by the Secretary.''.
       (c) Native Hawaiian Housing Loan Guarantees.--
       (1) Requirement.--Section 184A of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by 
     inserting after subsection (l) the following new subsection:
       ``(m) Energy-Efficient Housing Requirement.--The Secretary 
     shall establish a method to consider, in its underwriting 
     standards for loans for single-family housing meeting the 
     energy efficiency standards under section 284(a) of the Green 
     Resources for Energy Efficient Neighborhoods Act of 2009 that 
     are guaranteed under this section, the impact that savings on 
     utility costs has on the income of the borrower.''.
       (2) Reporting on defaults.--Section 540(b) of the National 
     Housing Act (12 U.S.C. 1735f-18(b)), as amended by the 
     preceding provisions of this section, is further amended by 
     adding at the end the following new paragraph:
       ``(5) With respect to each collection period that commences 
     after December 31, 2011, the total number of loans guaranteed 
     under section 184A of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1715z-13b) on single-family housing 
     meeting the energy efficiency standards under section 284(a) 
     of the Green Resources for Energy Efficient Neighborhoods Act 
     of 2009 that are guaranteed by the Secretary during the 
     applicable collection period, the number of defaults and 
     foreclosures occurring on such loans during such period, the 
     percentage of the total of such loans guaranteed during such 
     period on

[[Page 16582]]

     which defaults and foreclosure occurred, and the rate for 
     such period of defaults and foreclosures on such loans 
     compared to the overall rate for such period of defaults and 
     foreclosures on loans for single-family housing guaranteed 
     under such section 184A by the Secretary.''.

     SEC. 289. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT 
                   MORTGAGES EDUCATION AND OUTREACH CAMPAIGN.

       Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 
     1701z-16) is amended by adding at the end the following new 
     subsection:
       ``(g) Education and Outreach Campaign.--
       ``(1) Development of energy- and location-efficient 
     mortgages outreach program.--
       ``(A) Commission.--The Secretary, in consultation and 
     coordination with the Secretary of Energy, the Secretary of 
     Education, the Secretary of Agriculture, and the 
     Administrator of the Environmental Protection Agency, shall 
     establish a commission to develop and recommend model 
     mortgage products and underwriting guidelines that provide 
     market-based incentives to prospective home buyers, lenders, 
     and sellers to incorporate energy efficiency upgrades and 
     location efficiencies in new mortgage loan transactions.
       ``(B) Report.--Not later than 24 months after the date of 
     the enactment of this Act, the Secretary shall provide a 
     written report to the Congress on the results of work of the 
     commission established pursuant to subparagraph (A) and that 
     identifies model mortgage products and underwriting 
     guidelines that may encourage energy and location efficiency.
       ``(2) Implementation.--After submission of the report under 
     paragraph (1)(B), the Secretary, in consultation and 
     coordination with the Secretary of Energy, the Secretary of 
     Education, and the Administrator of the Environmental 
     Protection Agency, shall carry out a public awareness, 
     education, and outreach campaign based on the findings of the 
     commission established pursuant to paragraph (1) to inform 
     and educate residential lenders and prospective borrowers 
     regarding the availability, benefits, advantages, and terms 
     of energy-efficient mortgages and location-efficient 
     mortgages made available pursuant to this section, energy-
     efficient and location-efficient mortgages that meet the 
     requirements of section 1335 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 4565), and other 
     mortgages, including mortgages for multifamily housing, that 
     have energy improvement features or location efficiency 
     features and to publicize such availability, benefits, 
     advantages, and terms. Such actions may include entering into 
     a contract with an appropriate entity to publicize and market 
     such mortgages through appropriate media.
       ``(3) Renewable energy home product expos.--The Congress 
     hereby encourages the Secretary of Housing and Urban 
     Development to work with appropriate entities to organize and 
     hold renewable energy expositions that provide an opportunity 
     for the public to view and learn about renewable energy 
     products for the home that are currently on the market.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this 
     subsection $5,000,000 for each of fiscal years 2010 through 
     2014.''.

     SEC. 290. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND 
                   LOCATION-EFFICIENT MORTGAGES THROUGH HOME 
                   MORTGAGE DISCLOSURE ACT.

       (a) In General.--Section 304(b) of the Home Mortgage 
     Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(5) the number and dollar amount of mortgage loans for 
     single-family housing and for multifamily housing that are 
     energy-efficient mortgages (as such term is defined in 
     section 1335 of Housing and Community Development Act of 
     1992); and
       ``(6) the number and dollar amount of mortgage loans for 
     single-family housing and for multifamily housing that are 
     location-efficient mortgages (as such term is defined in 
     section 1335 of Housing and Community Development Act of 
     1992).''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to the first calendar year that 
     begins after the expiration of the 30-day period beginning on 
     the date of the enactment of this Act.

     SEC. 291. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR 
                   HOMES NOT CONNECTED TO ELECTRICITY GRID.

       (a) Congressional Intent.--The Congress intends that--
       (1) consumers shall not be denied homeowners insurance for 
     a dwelling (as such term is defined in subsection (c)) based 
     solely on the fact that the dwelling is not connected to or 
     able to receive electricity service from any wholesale or 
     retail electric power provider;
       (2) States should ensure that consumers are able to obtain 
     homeowners insurance for such dwellings;
       (3) States should support insurers that develop voluntary 
     incentives to provide such insurance; and
       (4) States may not prohibit insurers from offering a 
     homeowners insurance product specifically designed for such 
     dwellings.
       (b) Insuring Homes and Related Property in Indian Areas.--
     Notwithstanding any other provision of law, dwellings located 
     in Indian areas (as such term is defined in section 4 of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4103)) and constructed or maintained using 
     assistance, loan guarantees, or other authority under the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 may be insured by any tribally owned self-insurance 
     risk pool approved by the Secretary of Housing and Urban 
     Development.
       (c) Dwelling.--For purposes of this section, the term 
     ``dwelling'' means a residential structure that--
       (1) consists of one to four dwelling units;
       (2) is provided electricity from renewable energy sources; 
     and
       (3) is not connected to any wholesale or retail electrical 
     power grid.

     SEC. 292. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT 
                   MULTIFAMILY HOUSING.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall establish incentives for increasing the 
     energy efficiency of multifamily housing that is subject to a 
     mortgage to be insured under title II of the National Housing 
     Act (12 U.S.C. 1707 et seq.) so that the housing meets the 
     energy efficiency standards under section 284(a) of this 
     subtitle and incentives to encourage compliance of such 
     housing with the energy efficiency and conservation 
     standards, and the green building standards, under section 
     284(b) of this subtitle, to the extent that such incentives 
     are based on the impact that savings on utility costs has on 
     the operating costs of the housing, as determined by the 
     Secretary.
       (b) Incentives.--Such incentives may include, for any such 
     multifamily housing that complies with the energy efficiency 
     standards under section 284(a)--
       (1) providing a discount on the chargeable premiums for the 
     mortgage insurance for such housing from the amount otherwise 
     chargeable for such mortgage insurance;
       (2) allowing mortgages to exceed the dollar amount limits 
     otherwise applicable under law to the extent such additional 
     amounts are used to finance improvements or measures designed 
     to meet the standards referred to in subsection (a); and
       (3) reducing the amount that the owner of such multifamily 
     housing meeting the standards referred to in subsection (a) 
     is required to contribute.

     SEC. 293. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED 
                   HOUSING WITH MORTGAGES.

       Section 526 of the National Housing Act (12 U.S.C. 1735f-
     4(a)) is amended--
       (1) in subsection (a)--
       (A) by striking ``, other than manufactured homes,'' each 
     place such term appears;
       (B) by inserting after the period at the end the following: 
     ``The energy performance requirements developed and 
     established by the Secretary under this section for 
     manufactured homes shall require energy star rating for wall 
     fixtures, appliances, and equipment in such housing.'';
       (C) by inserting ``(1)'' after ``(a)''; and
       (D) by adding at the end the following new paragraphs:
       ``(2) The Secretary shall require, with respect to any 
     single- or multi-family residential housing subject to a 
     mortgage insured under this Act, that any approval or 
     certification of the housing for meeting any energy 
     efficiency or conservation criteria, standards, or 
     requirements pursuant to this title and any approval or 
     certification required pursuant to this title with respect to 
     energy-conserving improvements or any renewable energy 
     sources, such as wind, solar energy geothermal, or biomass, 
     shall be conducted only by an individual certified by a home 
     energy rating system provider who has been accredited to 
     conduct such ratings by the Home Energy Ratings System 
     Council, the Residential Energy Services Network, or such 
     other appropriate national organization, as the Secretary may 
     provide, or by licensed professional architect or engineer. 
     If any organization makes a request to the Secretary for 
     approval to accredit individuals to conduct energy efficiency 
     or conservation ratings, the Secretary shall review and 
     approve or disapprove such request not later than the 
     expiration of the 6-month period beginning upon receipt of 
     such request.
       ``(3) The Secretary shall periodically examine the method 
     used to conduct inspections for compliance with the 
     requirements under this section, analyze various other 
     approaches for conducting such inspections, and review the 
     costs and benefits of the current method compared with other 
     methods.''; and
       (2) in subsection (b), by striking ``, other than a 
     manufactured home,''.

     SEC. 294. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.

       (a) Authority.--Not later than the expiration of the 12-
     month period beginning on the

[[Page 16583]]

     date of the enactment of this Act, the Secretary shall 
     develop and implement a pilot program under this section to 
     facilitate the financing of cost-effective capital 
     improvements for covered assisted housing projects to improve 
     the energy efficiency and conservation of such projects.
       (b) Loans.--The pilot program under this section shall 
     involve not less than three and not more than five lenders, 
     and shall provide for a privately financed loan to be made 
     for a covered assisted housing project, which shall--
       (1) finance capital improvements for the project that meet 
     such requirements as the Secretary shall establish, and may 
     involve contracts with third parties to perform such capital 
     improvements, including the design of such improvements by 
     licensed professional architects or engineers;
       (2) have a term to maturity of not more than 20 years, 
     which shall be based upon the duration necessary to realize 
     cost savings sufficient to repay the loan;
       (3) be secured by a mortgage subordinate to the mortgage 
     for the project that is insured under the National Housing 
     Act; and
       (4) provide for a reduction in the remaining principal 
     obligation under the loan based on the actual resulting cost 
     savings realized from the capital improvements financed with 
     the loan.
       (c) Underwriting Standards.--The Secretary shall establish 
     underwriting requirements for loans made under the pilot 
     program under this section, which shall--
       (1) require the cost savings projected to be realized from 
     the capital improvements financed with the loan, during the 
     term of the loan, to exceed the costs of repaying the loan;
       (2) allow the designer or contractor involved in designing 
     capital improvements to be financed with a loan under the 
     program to carry out such capital improvements; and
       (3) include such energy, audit, property, financial, 
     ownership, and approval requirements as the Secretary 
     considers appropriate.
       (d) Treatment of Savings.--The pilot program under this 
     section shall provide that the project owner shall receive 
     the full financial benefit from any reduction in the cost of 
     utilities resulting from capital improvements financed with a 
     loan made under the program.
       (e) Covered Assisted Housing Projects.--For purposes of 
     this section, the term ``covered assisted housing project'' 
     means a housing project that--
       (1) is financed by a loan or mortgage that is--
       (A) insured by the Secretary under--
       (i) subsection (d)(3) of section 221 of the National 
     Housing Act (12 U.S.C. 1715l), and bears interest at a rate 
     determined under the proviso of section 221(d)(5) of such 
     Act; or
       (ii) subsection (d)(4) of such section 221.
       (B) insured or assisted under section 236 of the National 
     Housing Act (12 U.S.C. 1715z-1);
       (2) at the time a loan under this section is made, is 
     provided project-based rental assistance under section 8 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437f) for 
     50 percent or more of the dwelling units in the project; and
       (3) is not a housing project owned or held by the 
     Secretary, or subject to a mortgage held by the Secretary.

     SEC. 295. MAKING IT GREEN.

       (a) Partnerships With Tree-Planting Organizations.--The 
     Secretary shall establish and provide incentives for 
     developers of housing for which any HUD financial assistance, 
     as determined by the Secretary, is provided for development, 
     maintenance, operation, or other costs, to enter into 
     agreements and partnerships with tree-planting organizations, 
     nurseries, and landscapers to certify that trees, shrubs, 
     grasses, and other plants are planted in the proper manner, 
     are provided adequate maintenance, and survive for at least 3 
     years after planting or are replaced. The financial 
     assistance determined by the Secretary as eligible under this 
     section shall take into consideration such factors as cost 
     effectiveness and affordability.
       (b) Making It Green Plan.--In the case of any new or 
     substantially rehabilitated housing for which HUD financial 
     assistance, as determined in accordance with subsection (a), 
     is provided by the Secretary for the development, 
     construction, maintenance, rehabilitation, improvement, 
     operation, or costs of the housing, including financial 
     assistance provided through the Community Development Block 
     Grant program under title I of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5301 et seq.), the 
     Secretary shall require the development of a plan that 
     provides for--
       (1) in the case of new construction and improvements, 
     siting of such housing and improvements in a manner that 
     provides for energy efficiency and conservation to the extent 
     feasible, taking into consideration location and project 
     type;
       (2) minimization of the effects of construction, 
     rehabilitation, or other development on the condition of 
     existing trees;
       (3) selection and installation of indigenous trees, shrubs, 
     grasses, and other plants based upon applicable design 
     guidelines and standards of the International Society for 
     Arboriculture;
       (4) post-planting care and maintenance of the landscaping 
     relating to or affected by the housing in accordance with 
     best management practices; and
       (5) establishment of a goal for minimum greenspace or tree 
     canopy cover for the housing site for which such financial 
     assistance is provided, including guidelines and timetables 
     within which to achieve compliance with such minimum 
     requirements.
       (c) Partnerships.--In carrying out this section, the 
     Secretary is encouraged to consult, as appropriate, with 
     national organizations dedicated to providing housing 
     assistance and related services to low-income families, such 
     as the Alliance for Community Trees and its affiliates, the 
     American Nursery and Landscape Association, the American 
     Society of Landscape Architects, and the National Arbor Day 
     Foundation.

     SEC. 296. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

       Title I of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT 
                   PROGRAM.

       ``(a) In General.--To the extent amounts are made available 
     for grants under this section, the Secretary shall make 
     grants under this section to States, metropolitan cities and 
     urban counties, Indian tribes, and insular areas to carry out 
     energy efficiency improvements in new and existing single-
     family and multifamily housing.
       ``(b) Allocations.--
       ``(1) In general.--Of the total amount made available for 
     each fiscal year for grants under this section that remains 
     after reserving amounts pursuant to paragraph (2), the 
     Secretary shall allocate for insular areas, for metropolitan 
     cities and urban counties, and for States, an amount that 
     bears the same ratio to such total amount as the amount 
     allocated for such fiscal year under section 106 for Indian 
     tribes, for insular areas, for metropolitan cities and urban 
     counties, and for States, respectively, bears to the total 
     amount made available for such fiscal year for grants under 
     section 106.
       ``(2) Set aside for indian tribes.--Of the total amount 
     made available for each fiscal year for grants under this 
     section, the Secretary shall allocate not less than 1 percent 
     to Indian tribes.
       ``(c) Grant Amounts.--
       ``(1) Entitlement communities.--From the amounts allocated 
     pursuant to subsection (b) for metropolitan cities and urban 
     counties for each fiscal year, the Secretary shall make a 
     grant for such fiscal year to each metropolitan city and 
     urban county that complies with the requirement under 
     subsection (d), in the amount that bears the same ratio such 
     total amount so allocated as the amount of the grant for such 
     fiscal year under section 106 for such metropolitan city or 
     urban county bears to the aggregate amount of all grants for 
     such fiscal year under section 106 for all metropolitan 
     cities and urban counties.
       ``(2) States.--From the amounts allocated pursuant to 
     subsection (b) for States for each fiscal year, the Secretary 
     shall make a grant for such fiscal year to each State that 
     complies with the requirement under subsection (d), in the 
     amount that bears the same ratio such total amount so 
     allocated as the amount of the grant for such fiscal year 
     under section 106 for such State bears to the aggregate 
     amount of all grants for such fiscal year under section 106 
     for all States. Grant amounts received by a State shall be 
     used only for eligible activities under subsection (e) 
     carried out in nonentitlement areas of the State.
       ``(3) Indian tribes.--From the amounts allocated pursuant 
     to subsection (b) for Indian tribes, the Secretary shall make 
     grants to Indian tribes that comply with the requirement 
     under subsection (d) on the basis of a competition conducted 
     pursuant to specific criteria, as the Secretary shall 
     establish by regulation, for the selection of Indian tribes 
     to receive such amount.
       ``(4) Insular areas.--From the amounts allocated pursuant 
     to subsection (b) for insular areas, the Secretary shall make 
     a grant to each insular area that complies with the 
     requirement under subsection (d) on the basis of the ratio of 
     the population of the insular area to the aggregate 
     population of all insular areas. In determining the 
     distribution of amounts to insular areas, the Secretary may 
     also include other statistical criteria as data become 
     available from the Bureau of Census of the Department of 
     Labor, but only if such criteria are set forth by regulation 
     issued after notice and an opportunity for comment.
       ``(d) Statement of Activities.--
       ``(1) Requirement.--Before receipt the receipt in any 
     fiscal year of a grant under subsection (c) by any grantee, 
     the grantee shall have prepared a final statement of housing 
     energy efficiency objectives and projected use of funds as 
     the Secretary shall require and shall have provided the 
     Secretary with such certifications regarding such objectives 
     and use as the Secretary may require. In the case of 
     metropolitan cities, urban counties, units of general local 
     government, and insular areas receiving grants, the statement 
     of projected use of funds shall consist of proposed housing 
     energy efficiency activities. In the case of States receiving 
     grants, the

[[Page 16584]]

     statement of projected use of funds shall consist of the 
     method by which the States will distribute funds to units of 
     general local government.
       ``(2) Public participation.--The Secretary may establish 
     requirements to ensure the public availability of information 
     regarding projected use of grant amounts and public 
     participation in determining such projected use.
       ``(e) Eligible Activities.--
       ``(1) Requirement.--Amounts from a grant under this section 
     may be used only to carry out activities for single-family or 
     multifamily housing that are designed to improve the energy 
     efficiency of the housing so that the housing complies with 
     the energy efficiency standards under section 284(a) of the 
     Green Resources for Energy Efficient Neighborhoods Act of 
     2009, including such activities to provide energy for such 
     housing from renewable sources, such as wind, waves, solar, 
     biomass, and geothermal sources.
       ``(2) Preference for compliance beyond basic 
     requirements.--In selecting activities to be funded with 
     amounts from a grant under this section, a grantee shall give 
     more preference to activities based on the extent to which 
     the activities will result in compliance by the housing with 
     the enhanced energy efficiency and conservation standards, 
     and the green building standards, under section 284(b) of 
     such Act.
       ``(f) Reports.--Each grantee of a grant under this section 
     for a fiscal year shall submit to the Secretary, at a time 
     determined by the Secretary, a performance and evaluation 
     report concerning the use of grant amounts, which shall 
     contain an assessment by the grantee of the relationship of 
     such use to the objectives identified in the grantees 
     statement under subsection (d).
       ``(g) Applicability of CDBG Provisions.--Sections 109, 110, 
     and 111 of the Housing and Community Development Act of 1974 
     (42 U.S.C. 5309, 5310, 5311) shall apply to assistance 
     received under this section to the same extent and in the 
     same manner that such sections apply to assistance received 
     under title I of such Act.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated for grants under this section 
     $2,500,000,000 for fiscal year 2010 and such sums as may be 
     necessary for each fiscal year thereafter.''.

     SEC. 297. INCLUDING SUSTAINABLE DEVELOPMENT AND 
                   TRANSPORTATION STRATEGIES IN COMPREHENSIVE 
                   HOUSING AFFORDABILITY STRATEGIES.

       Section 105(b) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12705(b)) is amended--
       (1) by striking ``and'' at the end of paragraph (19);
       (2) by striking the period at the end of paragraph (20) and 
     inserting ``; and'';
       (3) and by inserting after paragraph (20) the following new 
     paragraphs:
       ``(21) describe the jurisdiction's strategies to encourage 
     sustainable development for affordable housing, including 
     single-family and multifamily housing, as measured by--
       ``(A) greater energy efficiency and use of renewable energy 
     sources, including any strategies regarding compliance with 
     the energy efficiency standards under section 284(a) of the 
     Green Resources for Energy Efficient Neighborhoods Act of 
     2009 and with the enhanced energy efficiency and conservation 
     standards, and the green building standards, under section 
     284(b) of such Act;
       ``(B) increased conservation, recycling, and reuse of 
     resources;
       ``(C) more effective use of existing infrastructure;
       ``(D) use of building materials and methods that are 
     healthier for residents of the housing, including use of 
     building materials that are free of added known carcinogens 
     that are classified as Group 1 Known Carcinogens by the 
     International Agency for Research on Cancer; and
       ``(E) such other criteria as the Secretary determines, in 
     consultation with the Secretary of Energy, the Secretary of 
     Agriculture, and the Administrator of the Environmental 
     Protection Agency, are in accordance with the purposes of 
     this paragraph; and
       ``(22) describe the jurisdiction's efforts to coordinate 
     its housing strategy with its transportation planning 
     strategies to ensure to the extent practicable that residents 
     of affordable housing have access to public 
     transportation.''.

     SEC. 298. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME 
                   COMMUNITY DEVELOPMENT CAPACITY.

       (a) In General.--The Secretary may make grants to nonprofit 
     organizations to use for any of the following purposes:
       (1) Training, educating, supporting, or advising an 
     eligible community development organization or qualified 
     youth service and conservation corps in improving energy 
     efficiency, resource conservation and reuse, design 
     strategies to maximize energy efficiency, installing or 
     constructing renewable energy improvements (such as wind, 
     wave, solar, biomass, and geothermal energy sources), and 
     effective use of existing infrastructure in affordable 
     housing and economic development activities in low-income 
     communities, taking into consideration energy efficiency 
     standards under section 284(a) of this subtitle and with the 
     enhanced energy efficiency and conservation standards, and 
     the green building standards, under section 284(b) of this 
     subtitle.
       (2) Providing loans, grants, or predevelopment assistance 
     to eligible community development organizations or qualified 
     youth service and conservation corps to carry out energy 
     efficiency improvements that comply with the energy 
     efficiency standards under section 284(a) of this subtitle, 
     resource conservation and reuse, and effective use of 
     existing infrastructure in affordable housing and economic 
     development activities in low-income communities. In 
     providing assistance under this paragraph, the Secretary 
     shall give more preference to activities based on the extent 
     to which the activities will result in compliance with the 
     enhanced energy efficiency and conservation standards, and 
     the green building standards, under section 284(b) of this 
     subtitle.
       (3) Such other purposes as the Secretary determines are in 
     accordance with the purposes of this subsection.
       (b) Application Requirement.--To be eligible for a grant 
     under this section, a nonprofit organization shall prepare 
     and submit to the Secretary an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       (c) Award of Contracts.--Contracts for architectural or 
     engineering services funded with amounts from grants made 
     under this section shall be awarded in accordance with 
     chapter 11 of title 40, United States Code (relating to 
     selection of architects and engineers).
       (d) Matching Requirement.--A grant made under this section 
     may not exceed the amount that the nonprofit organization 
     receiving the grant certifies, to the Secretary, will be 
     provided (in cash or in-kind) from nongovernmental sources to 
     carry out the purposes for which the grant is made.
       (e) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) The term ``nonprofit organization'' has the meaning 
     given such term in section 104 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12704).
       (2) The term ``eligible community development 
     organization'' means--
       (A) a unit of general local government (as defined in 
     section 104 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12704));
       (B) a community housing development organization (as 
     defined in section 104 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12704));
       (C) an Indian tribe or tribally designated housing entity 
     (as such terms are defined in section 4 of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4103)); or
       (D) a public housing agency, as such term is defined in 
     section 3(b) of the United States Housing Act of 1937 (42 
     U.S.C. 1437(b)).
       (3) The term ``low-income community'' means a census tract 
     in which 50 percent or more of the households have an income 
     which is less than 80 percent of the greater of--
       (A) the median gross income for such year for the area in 
     which such census tract is located; or
       (B) the median gross income for such year for the State in 
     which such census tract is located.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $10,000,000 for each of fiscal years 2010 through 2014.

     SEC. 299. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.

       (a) Mandatory Component.--Section 24(e) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by 
     adding at the end the following new paragraph:
       ``(4) Green developments requirement.--
       ``(A) Requirement.--The Secretary may not make a grant 
     under this section to an applicant unless the proposed 
     revitalization plan of the applicant to be carried out with 
     such grant amounts meets the following requirements:
       ``(i) Green communities criteria checklist.--All 
     residential construction under the proposed plan complies 
     with the national Green Communities criteria checklist for 
     residential construction that provides criteria for the 
     design, development, and operation of affordable housing, as 
     such checklist is in effect for purposes of this paragraph 
     pursuant to subparagraph (D) at the date of the application 
     for the grant, or any substantially equivalent standard or 
     standards as determined by the Secretary, as follows:

       ``(I) The proposed plan shall comply with all items of the 
     national Green Communities criteria checklist for residential 
     construction that are identified as mandatory.
       ``(II) The proposed plan shall comply with such other 
     nonmandatory items of such national Green Communities 
     criteria checklist so as to result in a cumulative number of 
     points attributable to such nonmandatory items under such 
     checklist of not less than--

       ``(aa) 25 points, in the case of any proposed plan (or 
     portion thereof) consisting of new construction; and
       ``(bb) 20 points, in the case of any proposed plan (or 
     portion thereof) consisting of rehabilitation.
       ``(ii) Green buildings certification system.--All 
     nonresidential construction under the proposed plan complies 
     with all minimum required levels of the green building

[[Page 16585]]

     rating systems and levels identified by the Secretary 
     pursuant to subparagraph (C), as such systems and levels are 
     in effect for purposes of this paragraph pursuant to 
     subparagraph (D) at the time of the application for the 
     grant.
       ``(B) Verification.--
       ``(i) In general.--The Secretary shall verify, or provide 
     for verification, sufficient to ensure that each proposed 
     revitalization plan carried out with amounts from a grant 
     under this section complies with the requirements under 
     subparagraph (A) and that the revitalization plan is carried 
     out in accordance with such requirements and plan.
       ``(ii) Timing.--In providing for such verification, the 
     Secretary shall establish procedures to ensure such 
     compliance with respect to each grantee, and shall report to 
     the Congress with respect to the compliance of each grantee, 
     at each of the following times:

       ``(I) Not later than 6 months after execution of the grant 
     agreement under this section for the grantee.
       ``(II) Upon completion of the revitalization plan of the 
     grantee.

       ``(C) Identification of green buildings rating systems and 
     levels.--
       ``(i) In general.--For purposes of this paragraph, the 
     Secretary shall identify rating systems and levels for green 
     buildings that the Secretary determines to be the most likely 
     to encourage a comprehensive and environmentally sound 
     approach to ratings and standards for green buildings. The 
     identification of the ratings systems and levels shall be 
     based on the criteria specified in clause (ii), shall 
     identify the highest levels the Secretary determines are 
     appropriate above the minimum levels required under the 
     systems selected. Within 90 days of the completion of each 
     study required by clause (iii), the Secretary shall review 
     and update the rating systems and levels, or identify 
     alternative systems and levels for purposes of this 
     paragraph, taking into account the conclusions of such study.
       ``(ii) Criteria.--In identifying the green rating systems 
     and levels, the Secretary shall take into consideration--

       ``(I) the ability and availability of assessors and 
     auditors to independently verify the criteria and measurement 
     of metrics at the scale necessary to implement this 
     paragraph;
       ``(II) the ability of the applicable ratings system 
     organizations to collect and reflect public comment;
       ``(III) the ability of the standards to be developed and 
     revised through a consensus-based process;
       ``(IV) An evaluation of the robustness of the criteria for 
     a high-performance green building, which shall give credit 
     for promoting--

       ``(aa) efficient and sustainable use of water, energy, and 
     other natural resources;
       ``(bb) use of renewable energy sources;
       ``(cc) improved indoor and outdoor environmental quality 
     through enhanced indoor and outdoor air quality, thermal 
     comfort, acoustics, outdoor noise pollution, day lighting, 
     pollutant source control, sustainable landscaping, and use of 
     building system controls and low- or no-emission materials, 
     including preference for materials with no added carcinogens 
     that are classified as Group 1 Known Carcinogens by the 
     International Agency for Research on Cancer; and
       ``(dd) such other criteria as the Secretary determines to 
     be appropriate; and

       ``(V) national recognition within the building industry.

       ``(iii) 5-year evaluation.--At least once every 5 years, 
     the Secretary shall conduct a study to evaluate and compare 
     available third-party green building rating systems and 
     levels, taking into account the criteria listed in clause 
     (ii).
       ``(D) Applicability and updating of standards.--
       ``(i) Applicability.--Except as provided in clause (ii) of 
     this subparagraph, the national Green Communities criteria 
     checklist and green building rating systems and levels 
     referred to in clauses (i) and (ii) of subparagraph (A) that 
     are in effect for purposes of this paragraph are such 
     checklist systems, and levels as in existence upon the date 
     of the enactment of the Green Resources for Energy Efficient 
     Neighborhoods Act of 2009.
       ``(ii) Updating.--The Secretary may, by regulation, adopt 
     and apply, for purposes of this paragraph, future amendments 
     and supplements to, and editions of, the national Green 
     Communities criteria checklist, any standard or standards 
     that the Secretary has determined to be substantially 
     equivalent to such checklist, and the green building ratings 
     systems and levels identified by the Secretary pursuant to 
     subparagraph (C).''.
       (b) Selection Criteria; Graded Component.--Section 24(e)(2) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437v(e)(2)) is amended--
       (1) in subparagraph (K), by striking ``and'' at the end;
       (2) by redesignating subparagraph (L) as subparagraph (M); 
     and
       (3) by inserting after subparagraph (K) the following new 
     subparagraph:
       ``(L) the extent to which the proposed revitalization 
     plan--
       ``(i) in the case of residential construction, complies 
     with the nonmandatory items of the national Green Communities 
     criteria checklist identified in paragraph (4)(A)(i), or any 
     substantially equivalent standard or standards as determined 
     by the Secretary, but only to the extent such compliance 
     exceeds the compliance necessary to accumulate the number of 
     points required under such paragraph; and
       ``(ii) in the case of nonresidential construction, complies 
     with the components of the green building rating systems and 
     levels identified by the Secretary pursuant to paragraph 
     (4)(C), but only to the extent such compliance exceeds the 
     minimum level required under such systems and levels; and''.

     SEC. 299A. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS IN 
                   APPRAISALS.

       (a) Appraisals in Connection With Federally Related 
     Transactions.--
       (1) Requirement.--Section 1110 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3339) is amended--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) that such appraisals be performed in accordance with 
     appraisal standards that require, in determining the value of 
     a property, consideration of any renewable energy sources 
     for, or energy efficiency or energy-conserving improvements 
     or features of, the property; and''.
       (2) Revision of appraisal standards.--Each Federal 
     financial institutions regulatory agency shall, not later 
     than 6 months after the date of the enactment of this Act, 
     revise its standards for the performance of real estate 
     appraisals in connection with federally related transactions 
     under the jurisdiction of the agency to comply with the 
     requirement under the amendments made by paragraph (1) of 
     this subsection.
       (b) Appraiser Certification and Licensing Requirements.--
     Section 1116 of the Financial Institutions Reform, Recovery, 
     and Enforcement Act of 1989 (12 U.S.C. 3345) is amended--
       (1) in subsection (a), by inserting before the period at 
     the end the following: ``, and meets the requirements 
     established pursuant to subsection (f) for qualifications 
     regarding consideration of any renewable energy sources for, 
     or energy efficiency or energy-conserving improvements or 
     features of, the property'';
       (2) in subsection (c), by inserting before the period at 
     the end the following: ``, which shall include compliance 
     with the requirements established pursuant to subsection (f) 
     regarding consideration of any renewable energy sources for, 
     or energy efficiency or energy-conserving improvements or 
     features of, the property'';
       (3) in subsection (e), by striking ``The'' and inserting 
     ``Except as provided in subsection (f), the''; and
       (4) by adding at the end the following new subsection:
       ``(f) Requirements for Appraisers Regarding Energy 
     Efficiency Features.--The Appraisal Subcommittee shall 
     establish requirements for State certification of State 
     certified real estate appraisers and for State licensing of 
     State licensed appraisers, to ensure that appraisers consider 
     and are qualified to consider, in determining the value of a 
     property, any renewable energy sources for, or energy 
     efficiency or energy-conserving improvements or features of, 
     the property.''.
       (c) Guidelines for Appraising Photovoltaic Measures and 
     Training of Appraisers.--Section 1122 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3351) is amended by adding at the end the 
     following new subsection:
       ``(g) Guidelines for Appraising Photovoltaic Measures and 
     Training of Appraisers.--The Appraisal Subcommittee shall, in 
     consultation with the Secretary of Housing and Urban 
     Development, the Federal National Mortgage Association, and 
     the Federal Home Loan Mortgage Corporation, establish 
     specific guidelines for--
       ``(1) appraising off- and on-grid photovoltaic measures for 
     compliance with the appraisal standards prescribed pursuant 
     to section 1110(2);
       ``(2) requirements under section 1116(f) for certification 
     of State certified real estate appraisers and for State 
     licensing of State licensed appraisers, to ensure that 
     appraisers consider, and are qualified to consider, such 
     photovoltaic measures in determining the value of a property; 
     and
       ``(3) training of appraisers to meet the requirements 
     established pursuant to paragraph (2) of this subsection.''.

     SEC. 299B. HOUSING ASSISTANCE COUNCIL.

       The Secretary shall require the Housing Assistance 
     Council--
       (1) to encourage each organization that receives assistance 
     from the Council with any amounts made available from the 
     Secretary to provide that any structures and buildings 
     developed or assisted under projects, programs, and 
     activities funded with such amounts complies with the energy 
     efficiency standards under section 284(a) of this subtitle; 
     and
       (2) to establish incentives to encourage each such 
     organization to provide that any

[[Page 16586]]

     such structures and buildings comply with the energy 
     efficiency and conservation standards, and the green building 
     standards, under section 284(b) of such Act.

     SEC. 299C. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.

       The Secretary shall--
       (1) require each tribe, agency, organization, corporation, 
     and other entity that receives any assistance from the Office 
     of Rural Housing and Economic Development of the Department 
     of Housing and Urban Development to provide that any 
     structures and buildings developed or assisted under 
     activities funded with such amounts complies with the energy 
     efficiency standards under section 284(a) of this subtitle; 
     and
       (2) establish incentives to encourage each such tribe, 
     agency, organization, corporation, and other entity to 
     provide that any such structures and buildings comply with 
     the enhanced energy efficiency and conservation standards, 
     and the green building standards, under section 284(b) of 
     such Act.

     SEC. 299D. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT 
                   RENEWABLE ENERGY SOURCES ACTIVITIES.

       (a) Establishment of Fund.--There is established in the 
     Treasury of the United States a fund, to be known as the 
     ``Alternative Energy Sources State Loan Fund''.
       (b) Expenditures.--
       (1) In general.--Subject to paragraph (2), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary such amounts as the Secretary 
     determines are necessary to provide loans under subsection 
     (c)(1).
       (2) Administrative expenses.--Of the amounts in the Fund, 
     not more than 5 percent shall be available for each fiscal 
     year to pay the administrative expenses of the Department of 
     Housing and Urban Development to carry out this section.
       (c) Loans to States and Indian Tribes.--
       (1) In general.--The Secretary shall use amounts in the 
     Fund to provide loans to States and Indian tribes to provide 
     incentives to owners of single-family and multifamily 
     housing, commercial properties, and public buildings to 
     provide--
       (A) renewable energy sources for such structures, such as 
     wind, wave, solar, biomass, or geothermal energy sources, 
     including incentives to companies and business to change 
     their source of energy to such renewable energy sources and 
     for changing the sources of energy for public buildings to 
     such renewable energy sources;
       (B) energy efficiency and energy conserving improvements 
     and features for such structures; or
       (C) infrastructure related to the delivery of electricity 
     and hot water for structures lacking such amenities.
       (2) Eligibility.--To be eligible to receive a loan under 
     this subsection, a State or Indian tribe, directly or through 
     an appropriate State or tribal agency, shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       (3) Criteria for approval.--The Secretary may approve an 
     application of a State or Indian tribe under paragraph (2) 
     only if the Secretary determines that the State or tribe will 
     use the funds from the loan under this subsection to carry 
     out a program to provide incentives described in paragraph 
     (1) that--
       (A) requires that any such renewable energy sources, and 
     energy efficiency and energy conserving improvements and 
     features, developed pursuant to assistance under the program 
     result in compliance of the structure so improved with energy 
     efficiency requirements determined by the Secretary; and
       (B) includes such compliance and audit requirements as the 
     Secretary determines are necessary to ensure that the program 
     is operated in a sound and effective manner.
       (4) Preference.--In making loans during each fiscal year, 
     the Secretary shall give preference to States and Indian 
     tribes that have not previously received a loan under this 
     subsection.
       (5) Maximum amount.--The aggregate outstanding principal 
     amount from loans under this subsection to any single State 
     or Indian tribe may not exceed $500,000,000.
       (6) Loan terms.--Each loan under this subsection shall have 
     a term to maturity of not more than 10 years and shall bear 
     interest at annual rate, determined by the Secretary, that 
     shall not exceed interest rate charged by the Federal Reserve 
     Bank of New York to commercial banks and other depository 
     institutions for very short-term loans under the primary 
     credit program, as most recently published in the Federal 
     Reserve Statistical Release on selected interest rates (daily 
     or weekly), and commonly referred to as the H.15 release, 
     preceding the date of a determination for purposes of 
     applying this paragraph.
       (7) Loan repayment.--The Secretary shall require full 
     repayment of each loan made under this section.
       (d) Investment of Amounts.--
       (1) In general.--The Secretary of the Treasury shall invest 
     such amounts in the Fund that are not, in the judgment of the 
     Secretary of the Treasury, required to meet needs for current 
     withdrawals.
       (2) Obligations of united states.--Investments may be made 
     only in interest-bearing obligations of the United States.
       (e) Reports.--
       (1) Reports to secretary.--For each year during the term of 
     a loan made under subsection (c), the State or Indian tribe 
     that received the loan shall submit to the Secretary a report 
     describing the State or tribal alternative energy sources 
     program for which the loan was made and the activities 
     conducted under the program using the loan funds during that 
     year.
       (2) Report to congress.--Not later than September 30 of 
     each year that loans made under subsection (c) are 
     outstanding, the Secretary shall submit a report to the 
     Congress describing the total amount of such loans provided 
     under subsection (c) to each eligible State and Indian tribe 
     during the fiscal year ending on such date, and an evaluation 
     on effectiveness of the Fund.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Fund $5,000,000,000.
       (g) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given such term in section 4 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4103).
       (2) State.--The term ``State'' means each of the several 
     States, the Commonwealth of Puerto Rico, the District of 
     Columbia, the Commonwealth of the Northern Mariana Islands, 
     Guam, the Virgin Islands, American Samoa, the Trust 
     Territories of the Pacific, or any other possession of the 
     United States.

     SEC. 299E. GREEN BANKING CENTERS.

       (a) Insured Depository Institutions.--Section 8 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by 
     adding at the end the following new subsection:
       ``(x) `Green Banking' Centers.--
       ``(1) In general.--The Federal banking agencies shall 
     prescribe guidelines encouraging the establishment and 
     maintenance of `green banking' centers by insured depository 
     institutions to provide any consumer who seeks information on 
     obtaining a mortgage, home improvement loan, home equity 
     loan, or renewable energy lease with additional information 
     on--
       ``(A) obtaining an home energy rating or audit for the 
     residence for which such mortgage or loan is sought;
       ``(B) obtaining financing for cost-effective energy-saving 
     improvements to such property; and
       ``(C) obtaining beneficial terms for any mortgage or loan, 
     or qualifying for a larger mortgage or loan, secured by a 
     residence which meets or will meet energy efficiency 
     standards.
       ``(2) Information and referrals.--The information made 
     available to consumers under paragraph (1) may include--
       ``(A) information on obtaining a home energy rating and 
     contact information on qualified energy raters in the area of 
     the residence;
       ``(B) information on the secondary market guidelines that 
     permit lenders to provide more favorable terms by allowing 
     lenders to increase the ratio on debt-to-income requirements 
     or to use the projected utility savings as a compensating 
     factor;
       ``(C) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered by the Secretary of 
     Housing and Urban Development, including the Energy Efficient 
     Mortgage Program;
       ``(D) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered for qualified 
     military personal, reservists, and veterans by the Secretary 
     of Veterans Affairs;
       ``(E) information about, and contact information for, the 
     Office of Efficiency and Renewable Energy at the Department 
     of Energy, including the weatherization assistance program;
       ``(F) information about, and contact information for, the 
     Energy Star Program of the Environmental Protection Agency;
       ``(G) information from, and contact information for, the 
     Federal Citizen Information Center of the General Services 
     Administration on energy-efficient mortgages and loans, home 
     energy rating systems, and the availability of energy-
     efficient mortgage information from a variety of Federal 
     agencies; and
       ``(H) such other information as the agencies or the insured 
     depository institution may determine to be appropriate or 
     useful.''.
       (b) Insured Credit Unions.--Section 206 of the Federal 
     Credit Union Act (12 U.S.C. 1786) is amended by adding at the 
     end the following new subsection:
       ``(x) `Green Banking' Centers.--
       ``(1) In general.--The Board shall prescribe guidelines 
     encouraging the establishment and maintenance of `green 
     banking' centers by insured credit unions to provide any 
     member who seeks information on obtaining a mortgage, home 
     improvement loan, home equity loan, or renewable energy lease 
     with additional information on--
       ``(A) obtaining an home energy rating or audit for the 
     residence for which such mortgage or loan is sought;
       ``(B) obtaining financing for cost-effective energy-saving 
     improvements to such property; and

[[Page 16587]]

       ``(C) obtaining beneficial terms for any mortgage or loan, 
     or qualifying for a larger mortgage or loan, secured by a 
     residence which meets or will meet energy efficiency 
     standards.
       ``(2) Information and referrals.--The information made 
     available to members under paragraph (1) may include--
       ``(A) information on obtaining a home energy rating and 
     contact information on qualified energy raters in the area of 
     the residence;
       ``(B) information on the secondary market guidelines that 
     permit lenders to provide more favorable terms by allowing 
     lenders to increase the ratio on debt-to-income requirements 
     or to use the projected utility savings as a compensating 
     factor;
       ``(C) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered by the Secretary of 
     Housing and Urban Development, including the Energy Efficient 
     Mortgage Program;
       ``(D) information including eligibility information about, 
     and contact information for, any conservation or renewable 
     energy programs, grants, or loans offered for qualified 
     military personal, reservists, and veterans by the Secretary 
     of Veterans Affairs;
       ``(E) information about, and contact information for, the 
     Office of Efficiency and Renewable Energy at the Department 
     of Energy, including the weatherization assistance program;
       ``(F) information from, and contact information for, the 
     Federal Citizen Information Center of the General Services 
     Administration on energy-efficient mortgages and loans, home 
     energy rating systems, and the availability of energy-
     efficient mortgage information from a variety of Federal 
     agencies; and
       ``(G) such other information as the Board or the insured 
     credit union may determine to be appropriate or useful.''.

     SEC. 299F. GAO REPORTS ON AVAILABILITY OF AFFORDABLE 
                   MORTGAGES.

       (a) Study.--The Comptroller General of the United States 
     shall periodically, as necessary to comply with subsection 
     (b), examine the impact of this subtitle and the amendments 
     made by this subtitle on the availability of affordable 
     mortgages in various areas throughout the United States, 
     including cities having older infrastructure and limited 
     space for the development of new housing.
       (b) Triennial Reports.--The Comptroller General shall 
     submit a report once every 3 years to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate that shall include--
       (1) a detailed statement of the most recent findings 
     pursuant to subsection (a); and
       (2) if the Comptroller General finds that this subtitle or 
     the amendments made by this subtitle have directly or 
     indirectly resulted in consequences that limit the 
     availability or affordability of mortgages in any area or 
     areas within the United States, including any city having 
     older infrastructure and limited space for the development of 
     new housing, any recommendations for any additional actions 
     at the Federal, State, or local levels that the Comptroller 
     General considers necessary or appropriate to mitigate such 
     effects.

     The first report under this subsection shall be submitted not 
     later than the expiration of the 3-year period beginning on 
     the date of the enactment of this Act.

     SEC. 299G. PUBLIC HOUSING ENERGY COST REPORT.

       (a) Collection of Information by HUD.--The Secretary of 
     Housing and Urban Development shall obtain from each public 
     housing agency, by such time as may be necessary to comply 
     with the reporting requirement under subsection (b), 
     information regarding the energy costs for public housing 
     administered or operated by the agency. For each public 
     housing agency, such information shall include the monthly 
     energy costs associated with each separate building and 
     development of the agency, for the most recently completed 
     12-month period for which such information is available, and 
     such other information as the Secretary determines is 
     appropriate in determining which public housing buildings and 
     developments are most in need of repairs and improvements to 
     reduce energy needs and costs and become more energy 
     efficient.
       (b) Report.--Not later than the expiration of the 12-month 
     period beginning on the date of the enactment of this Act, 
     the Secretary of Housing and Urban Development shall submit a 
     report to the Congress setting forth the information 
     collected pursuant to subsection (a).

     SEC. 299H. SECONDARY MARKET FOR RESIDENTIAL RENEWABLE ENERGY 
                   LEASE INSTRUMENTS.

       (a) Purposes.--The purposes of this section are--
       (1) to encourage residential use of renewable energy 
     systems by minimizing up-front costs and providing immediate 
     utility cost savings to consumers through leasing of such 
     systems to homeowners;
       (2) to reduce carbon emissions and the use of nonrenewable 
     resources;
       (3) to encourage energy-efficient residential construction 
     and rehabilitation;
       (4) to encourage the use of renewable resources by 
     homeowners;
       (5) to minimize the impact of development on the 
     environment;
       (6) to reduce consumer utility costs; and
       (7) to encourage private investment in the green economy.
       (b) Residual Value of Renewable Energy Asset.--The 
     Secretary of Housing and Urban Development shall establish a 
     means of determining the residual value of a renewable energy 
     asset such that a secondary market for residential renewable 
     energy lease instruments may be facilitated. Such means may 
     include, without limitation, the calculation of residual 
     value based on the net present value of projected future 
     energy production of the renewable energy asset.

     SEC. 299I. GREEN GUARANTEES.

       (a) Authority To Guarantee ``Green Portion'' of Eligible 
     Mortgages.--
       (1) In general.--The Secretary of Housing and Urban 
     Development may make commitments to guarantee under this 
     section and may guarantee, the repayment of the portions of 
     the principal obligations of eligible mortgages that are used 
     to finance eligible sustainable building elements for the 
     housing that is subject to the mortgage.
       (2) Amount of guarantee.--A guarantee under this section by 
     the Secretary in connection with an eligible mortgage shall 
     not exceed a percentage of the green portion (as such term is 
     defined in subsection (g)) of the mortgage, as shall be 
     established by the Secretary and may be established on a 
     regional basis as the Secretary determines appropriate.
       (b) Eligible Mortgages.--To be considered an eligible 
     mortgage for purposes of this section, a mortgage shall 
     comply with all of the following requirements:
       (1) Acquisition or construction of housing.--The mortgage 
     shall be made for the acquisition or construction of single- 
     or multifamily housing and repayment of the mortgage shall be 
     secured by an interest in such housing.
       (2) Financing of eligible sustainable building elements 
     through green portion of mortgage.--A portion of the 
     principal obligation of the mortgage, which meets the 
     requirements under subsection (c), shall be used only for 
     financing the provision of eligible sustainable building 
     elements for the housing for which the mortgage was made.
       (3) Maximum mortgage amount.--The principal obligation of 
     the mortgage (including the eligible portion of such 
     mortgage, and such initial service charges, appraisal, 
     inspection, and other fees as the Secretary shall approve) 
     may not exceed the following amounts:
       (A) Single-family housing.--Such dollar amounts for single-
     family housing as the Secretary shall establish, which may be 
     established on the basis of the number of dwelling units in 
     the housing, as the Secretary considers appropriate.
       (B) Multifamily housing.--Such dollar amounts for 
     multifamily housing as the Secretary shall establish, which 
     may be established on the basis of the number of dwelling 
     units in the housing and the number of bedrooms in such 
     dwelling units, as the Secretary considers appropriate.
       (4) Repayment.--The mortgage meets such requirements as the 
     Secretary shall establish to ensure that there is a 
     reasonable prospect of repayment of the principal and 
     interest on the obligation by the mortgagor.
       (5) Mortgage terms.--The mortgage shall meet such 
     requirements with respect to loan-to-value ratio, mortgagor 
     credit scores, debt-to-income ratio, and other underwriting 
     standards, term to maturity, interest rates and amortization, 
     including amortization of the green portion of the mortgage, 
     and other mortgage terms as the Secretary shall establish.
       (c) Limitations on Green Portion of Mortgage.--The 
     requirements under this subsection with respect to the green 
     portion of an eligible mortgage are as follows:
       (1) Percentage limitation.--Such portion shall not exceed, 
     in the case of single-family or multifamily housing, 10 
     percent of the total principal obligation of the mortgage.
       (2) Dollar amount limitation.--Such portion shall not 
     exceed--
       (A) in the case of single-family housing, such maximum 
     dollar amount limitation as the Secretary shall establish, 
     which may be established on the basis of the number of 
     dwelling units in the housing, as the Secretary considers 
     appropriate; and
       (B) in the case of multifamily housing, such maximum dollar 
     amount limitation as the Secretary shall establish, which 
     limitation may be established on the basis of the number of 
     dwelling units in the housing and the number of bedrooms in 
     such dwelling units, as the Secretary considers appropriate.
       (3) Cost-effectiveness limitation.--Such portion shall not 
     exceed the total present value of the savings (as determined 
     in accordance with subsection (d)) attributable to the 
     incorporation of the eligible sustainable building elements 
     to be financed with the green portion of the mortgage that 
     are to be realized over the useful life of such elements.
       (d) Eligible Sustainable Building Elements.--The Secretary 
     may not guarantee

[[Page 16588]]

     any eligible mortgage under this section unless the mortgagor 
     has demonstrated, in accordance with such requirements as the 
     Secretary shall establish, the amount of savings attributable 
     to incorporation of the sustainable building elements to be 
     financed with the green portion of the mortgage, as measured 
     by the National Green Building Standard for all residential 
     construction developed by the National Association of Home 
     Builders and the U.S. Green Building Council, and approved by 
     the American National Standards Institute, as updated and in 
     effect at the time of such demonstration.
       (e) Guarantee Fee.--
       (1) Assessment and collection.--The Secretary shall assess 
     and collect fees for guarantees under this section in amounts 
     that the Secretary determines are sufficient to cover the 
     costs (as such term is defined in section 502 of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a)) of such 
     guarantees.
       (2) Availability.--Fees collected under this subsection 
     shall be deposited by the Secretary in the Treasury of the 
     United States and shall remain available until expended, 
     subject to such other conditions as are contained in annual 
     appropriations Acts.
       (f) Payment of Guarantee.--
       (1) Default.--
       (A) Right to payment.--If a mortgagor under a mortgage 
     guaranteed under this section defaults (as defined in 
     regulations issued by the Secretary and specified in the 
     guarantee contract) on the obligation under the mortgage--
       (i) the holder of the guarantee shall have the right to 
     demand payment of the unpaid amount of the guaranteed portion 
     of the mortgage, to the extent provided under subsection 
     (a)(2), from the Secretary; and
       (ii) within such period as may be specified in the 
     guarantee or related agreements, the Secretary shall pay to 
     the holder of the guarantee, to the extent provided under 
     subsection (a)(2), the unpaid interest on, and unpaid 
     principal of the portion of guaranteed portion of the 
     mortgage with respect to which the borrower has defaulted, 
     unless the Secretary finds that there was no default by the 
     borrower in the payment of interest or principal or that the 
     default has been remedied.
       (B) Forbearance.--Nothing in this paragraph precludes any 
     forbearance by the holder of an eligible mortgage for the 
     benefit of the mortgagor which may be agreed upon by the 
     parties to the mortgage and approved by the Secretary.
       (2) Subrogation.--
       (A) In general.--If the Secretary makes a payment under 
     paragraph (1), the Secretary shall be subrogated to the 
     rights of the recipient of the payment as specified in the 
     guarantee or related agreements including, if appropriate, 
     the authority (notwithstanding any other provision of law)--
       (i) to complete, maintain, operate, lease, or otherwise 
     dispose of any property acquired pursuant to such guarantee 
     or related agreements; or
       (ii) to permit the mortgagor, pursuant to an agreement with 
     the Secretary, to continue to occupy the property subject to 
     the mortgage, if the Secretary determines such occupancy to 
     be appropriate.
       (B) Superiority of rights.--The rights of the Secretary, 
     with respect to any property acquired pursuant to a guarantee 
     or related agreements, shall be superior to the rights of any 
     other person with respect to the property.
       (C) Terms and conditions.--A guarantee agreement shall 
     include such detailed terms and conditions as the Secretary 
     determines appropriate to protect the interests of the United 
     States in the case of default.
       (3) Full faith and credit.--The full faith and credit of 
     the United States is pledged to the payment of all guarantees 
     issued under this section with respect to principal and 
     interest.
       (g) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Eligible mortgage.--The term ``eligible mortgage'' 
     means a mortgage that meets the requirements under subsection 
     (b).
       (2) Green portion.--The term ``green portion'' means, with 
     respect to an eligible mortgage, the portion of the mortgage 
     principal referred to in subsection (b)(2) that is 
     attributable, as determined in accordance with regulations 
     issued by the Secretary, to the increased costs incurred in 
     financing provision of sustainable building elements for the 
     housing for which the mortgage was made, as compared to the 
     costs that would have been incurred in financing the 
     provision of other building elements for the housing for the 
     same purposes that are commonly or conventionally used but 
     are not sustainable building elements.
       (3) Guaranteed portion.--The term ``guaranteed portion'' 
     means, with respect to an eligible mortgage guaranteed under 
     this section, the green portion of the mortgage that is so 
     guaranteed.
       (4) Mortgage.--The term ``mortgage'' has the meaning given 
     such term in section 201 of the National Housing Act (12 
     U.S.C. 1707).
       (5) Multifamily housing.--The term ``multifamily housing'' 
     means a residential property consisting of five or more 
     dwelling units.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (7) Single-family housing.--The term ``single-family 
     housing'' means a residential property consisting of one to 
     four dwelling units.
       (8) Sustainable building element.--The term ``sustainable 
     building element'' means such building elements, as the 
     Secretary shall define, that have energy efficiency or 
     environmental sustainability qualities that are superior to 
     such qualities for other building elements for the same 
     purposes that are commonly or conventionally used.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated for costs (as such term is defined in 
     section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a) of guarantees under this section $500,000,000 
     for each of fiscal years 2010 through 2014.
       (i) Regulations.--The Secretary shall issue any regulations 
     necessary to carry out this section.

              TITLE III--REDUCING GLOBAL WARMING POLLUTION

     SEC. 301. SHORT TITLE.

       This title, and sections 112, 116, 221, 222, 223, and 401 
     of this Act, and the amendments made by this title and those 
     sections, may be cited as the ``Safe Climate Act''.

             Subtitle A--Reducing Global Warming Pollution

     SEC. 311. REDUCING GLOBAL WARMING POLLUTION.

       The Clean Air Act (42 U.S.C. and following) is amended by 
     adding after title VI the following new title:

        ``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

     ``PART A--GLOBAL WARMING POLLUTION REDUCTION GOALS AND TARGETS

     ``SEC. 701. FINDINGS AND PURPOSE.

       ``(a) Findings.--The Congress finds as follows:
       ``(1) Global warming poses a significant threat to the 
     national security, economy, public health and welfare, and 
     environment of the United States, as well as of other 
     nations.
       ``(2) Reviews of scientific studies, including by the 
     Intergovernmental Panel on Climate Change and the National 
     Academy of Sciences, demonstrate that global warming is the 
     result of the combined anthropogenic greenhouse gas emissions 
     from numerous sources of all types and sizes. Each increment 
     of emission, when combined with other emissions, causes or 
     contributes materially to the acceleration and extent of 
     global warming and its adverse effects for the lifetime of 
     such gas in the atmosphere. Accordingly, controlling 
     emissions in small as well as large amounts is essential to 
     prevent, slow the pace of, reduce the threats from, and 
     mitigate global warming and its adverse effects.
       ``(3) Because they induce global warming, greenhouse gas 
     emissions cause or contribute to injuries to persons in the 
     United States, including--
       ``(A) adverse health effects such as disease and loss of 
     life;
       ``(B) displacement of human populations;
       ``(C) damage to property and other interests related to 
     ocean levels, acidification, and ice changes;
       ``(D) severe weather and seasonal changes;
       ``(E) disruption, costs, and losses to business, trade, 
     employment, farms, subsistence, aesthetic enjoyment of the 
     environment, recreation, culture, and tourism;
       ``(F) damage to plants, forests, lands, and waters;
       ``(G) harm to wildlife and habitat;
       ``(H) scarcity of water and the decreased abundance of 
     other natural resources;
       ``(I) worsening of tropospheric air pollution;
       ``(J) substantial threats of similar damage; and
       ``(K) other harm.
       ``(4) That many of these effects and risks of future 
     effects of global warming are widely shared does not minimize 
     the adverse effects individual persons have suffered, will 
     suffer, and are at risk of suffering because of global 
     warming.
       ``(5) That some of the adverse and potentially catastrophic 
     effects of global warming are at risk of occurring and not a 
     certainty does not negate the harm persons suffer from 
     actions that increase the likelihood, extent, and severity of 
     such future impacts.
       ``(6) Nations of the world look to the United States for 
     leadership in addressing the threat of and harm from global 
     warming. Full implementation of the Safe Climate Act is 
     critical to engage other nations in an international effort 
     to mitigate the threat of and harm from global warming.
       ``(7) Global warming and its adverse effects are occurring 
     and are likely to continue and increase in magnitude, and to 
     do so at a greater and more harmful rate, unless the Safe 
     Climate Act is fully implemented and enforced in an 
     expeditious manner.
       ``(b) Purpose.--It is the general purpose of the Safe 
     Climate Act to help prevent, reduce the pace of, mitigate, 
     and remedy global warming and its adverse effects. To fulfill 
     such purpose, it is necessary to--

[[Page 16589]]

       ``(1) require the timely fulfillment of all governmental 
     acts and duties, both substantive and procedural, and the 
     prompt compliance of covered entities with the requirements 
     of the Safe Climate Act;
       ``(2) establish and maintain an effective, transparent, and 
     fair market for emission allowances and preserve the 
     integrity of the cap on emissions and of offset credits;
       ``(3) advance the production and deployment of clean energy 
     and energy efficiency technologies; and
       ``(4) ensure effective enforcement of the Safe Climate Act 
     by citizens, States, Indian tribes, and all levels of 
     government because each violation of the Safe Climate Act is 
     likely to result in an additional increment of greenhouse gas 
     emission and will slow the pace of implementation of the Safe 
     Climate Act and delay the achievement of the goals set forth 
     in section 702, and cause or contribute to global warming and 
     its adverse effects.

     ``SEC. 702. ECONOMY-WIDE REDUCTION GOALS.

       ``The goals of the Safe Climate Act are to reduce steadily 
     the quantity of United States greenhouse gas emissions such 
     that--
       ``(1) in 2012, the quantity of United States greenhouse gas 
     emissions does not exceed 97 percent of the quantity of 
     United States greenhouse gas emissions in 2005;
       ``(2) in 2020, the quantity of United States greenhouse gas 
     emissions does not exceed 80 percent of the quantity of 
     United States greenhouse gas emissions in 2005;
       ``(3) in 2030, the quantity of United States greenhouse gas 
     emissions does not exceed 58 percent of the quantity of 
     United States greenhouse gas emissions in 2005; and
       ``(4) in 2050, the quantity of United States greenhouse gas 
     emissions does not exceed 17 percent of the quantity of 
     United States greenhouse gas emissions in 2005.

     ``SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES.

       ``(a) In General.--The regulations issued under section 721 
     shall cap and reduce annually the greenhouse gas emissions of 
     capped sources each calendar year beginning in 2012 such 
     that--
       ``(1) in 2012, the quantity of greenhouse gas emissions 
     from capped sources does not exceed 97 percent of the 
     quantity of greenhouse gas emissions from such sources in 
     2005;
       ``(2) in 2020, the quantity of greenhouse gas emissions 
     from capped sources does not exceed 83 percent of the 
     quantity of greenhouse gas emissions from such sources in 
     2005;
       ``(3) in 2030, the quantity of greenhouse gas emissions 
     from capped sources does not exceed 58 percent of the 
     quantity of greenhouse gas emissions from such sources in 
     2005; and
       ``(4) in 2050, the quantity of greenhouse gas emissions 
     from capped sources does not exceed 17 percent of the 
     quantity of greenhouse gas emissions from such sources in 
     2005.
       ``(b) Definition.--For purposes of this section, the term 
     `greenhouse gas emissions from such sources in 2005' means 
     emissions to which section 722 would have applied if the 
     requirements of this title for the specified year had been in 
     effect for 2005.

     ``SEC. 704. SUPPLEMENTAL POLLUTION REDUCTIONS.

       ``For the purposes of decreasing the likelihood of 
     catastrophic climate change, preserving tropical forests, 
     building capacity to generate offset credits, and 
     facilitating international action on global warming, the 
     Administrator shall set aside the percentage specified in 
     section 781 of the quantity of emission allowances 
     established under section 721(a) for each year, to be used to 
     achieve a reduction of greenhouse gas emissions from 
     deforestation in developing countries in accordance with part 
     E. In 2020, activities supported under part E shall provide 
     greenhouse gas reductions in an amount equal to an additional 
     10 percentage points of reductions from United States 
     greenhouse gas emissions in 2005. The Administrator shall 
     distribute these allowances with respect to activities in 
     countries that enter into and implement agreements or 
     arrangements relating to reduced deforestation as described 
     in section 754(a)(2).

     ``SEC. 705. REVIEW AND PROGRAM RECOMMENDATIONS.

       ``(a) In General.--The Administrator shall, in consultation 
     with appropriate Federal agencies, submit to Congress a 
     report not later than July 1, 2013, and every 4 years 
     thereafter, that includes--
       ``(1) an analysis of key findings based on the latest 
     scientific information and data relevant to global climate 
     change;
       ``(2) an analysis of capabilities to monitor and verify 
     greenhouse gas reductions on a worldwide basis, including for 
     the United States, as required under the Safe Climate Act; 
     and
       ``(3) an analysis of the status of worldwide greenhouse gas 
     reduction efforts, including implementation of the Safe 
     Climate Act and other policies, both domestic and 
     international, for reducing greenhouse gas emissions, 
     preventing dangerous atmospheric concentrations of greenhouse 
     gases, preventing significant irreversible consequences of 
     climate change, and reducing vulnerability to the impacts of 
     climate change.
       ``(b) Exception.--Paragraph (3) of subsection (a) shall not 
     apply to the first report submitted under such subsection.
       ``(c) Latest Scientific Information.--The analysis required 
     under subsection (a)(1) shall--
       ``(1) address existing scientific information and reports, 
     considering, to the greatest extent possible, the most recent 
     assessment report of the Intergovernmental Panel on Climate 
     Change, reports by the United States Global Change Research 
     Program, the Natural Resources Climate Change Adaptation 
     Panel established under section 475 of the American Clean 
     Energy and Security Act of 2009, and Federal agencies, and 
     the European Union's global temperature data assessment; and
       ``(2) review trends and projections for--
       ``(A) global and country-specific annual emissions of 
     greenhouse gases, and cumulative greenhouse gas emissions 
     produced between 1850 and the present, including--
       ``(i) global cumulative emissions of anthropogenic 
     greenhouse gases;
       ``(ii) global annual emissions of anthropogenic greenhouse 
     gases; and
       ``(iii) by country, annual total, annual per capita, and 
     cumulative anthropogenic emissions of greenhouse gases for 
     the top 50 emitting nations;
       ``(B) significant changes, both globally and by region, in 
     annual net non-anthropogenic greenhouse gas emissions from 
     natural sources, including permafrost, forests, or oceans;
       ``(C) global atmospheric concentrations of greenhouse 
     gases, expressed in annual concentration units as well as 
     carbon dioxide equivalents based on 100-year global warming 
     potentials;
       ``(D) major climate forcing factors, such as aerosols;
       ``(E) global average temperature, expressed as seasonal and 
     annual averages in land, ocean, and land-plus-ocean averages; 
     and
       ``(F) sea level rise;
       ``(3) assess the current and potential impacts of global 
     climate change on--
       ``(A) human populations, including impacts on public 
     health, economic livelihoods, subsistence, human 
     infrastructure, and displacement or permanent relocation due 
     to flooding, severe weather, extended drought, erosion, or 
     other ecosystem changes;
       ``(B) freshwater systems, including water resources for 
     human consumption and agriculture and natural and managed 
     ecosystems, flood and drought risks, and relative humidity;
       ``(C) the carbon cycle, including impacts related to the 
     thawing of permafrost, the frequency and intensity of 
     wildfire, and terrestrial and ocean carbon sinks;
       ``(D) ecosystems and animal and plant populations, 
     including impacts on species abundance, phenology, and 
     distribution;
       ``(E) oceans and ocean ecosystems, including effects on sea 
     level, ocean acidity, ocean temperatures, coral reefs, ocean 
     circulation, fisheries, and other indicators of ocean 
     ecosystem health;
       ``(F) the cryosphere, including effects on ice sheet mass 
     balance, mountain glacier mass balance, and sea-ice extent 
     and volume;
       ``(G) changes in the intensity, frequency, or distribution 
     of severe weather events, including precipitation, tropical 
     cyclones, tornadoes, and severe heat waves;
       ``(H) agriculture and forest systems; and
       ``(I) any other indicators the Administrator deems 
     appropriate;
       ``(4) summarize any significant socio-economic impacts of 
     climate change in the United States, including the 
     territories of the United States, drawing on work by Federal 
     agencies and the academic literature, including impacts on--
       ``(A) public health;
       ``(B) economic livelihoods and subsistence;
       ``(C) displacement or permanent relocation due to flooding, 
     severe weather, extended drought, erosion, or other ecosystem 
     changes;
       ``(D) human infrastructure, including coastal 
     infrastructure vulnerability to extreme events and sea level 
     rise, river floodplain infrastructure, and sewer and water 
     management systems;
       ``(E) agriculture and forests, including effects on 
     potential growing season, distribution, and yield;
       ``(F) water resources for human consumption, agriculture 
     and natural and managed ecosystems, flood and drought risks, 
     and relative humidity;
       ``(G) energy supply and use; and
       ``(H) transportation;
       ``(5) in assessing risks and impacts, use a risk management 
     framework, including both qualitative and quantitative 
     measures, to assess the observed and projected impacts of 
     current and future climate change, accounting for--
       ``(A) both monetized and non-monetized losses;
       ``(B) potential nonlinear, abrupt, or essentially 
     irreversible changes in the climate system;
       ``(C) potential nonlinear increases in the cost of impacts;
       ``(D) potential low-probability, high impact events; and
       ``(E) whether impacts are transitory or essentially 
     permanent; and
       ``(6) based on the findings of the Administrator under this 
     section, as well as assessments produced by the 
     Intergovernmental Panel on Climate Change, the United States 
     Global Change Research program, and other relevant scientific 
     entities--

[[Page 16590]]

       ``(A) describe increased risks to natural systems and 
     society that would result from an increase in global average 
     temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above 
     the pre-industrial average or an increase in atmospheric 
     greenhouse gas concentrations above 450 parts per million 
     carbon dioxide equivalent; and
       ``(B) identify and assess--
       ``(i) significant residual risks not avoided by the 
     thresholds described in subparagraph (A);
       ``(ii) alternative thresholds or targets that may more 
     effectively limit the risks identified pursuant to clause 
     (i); and
       ``(iii) thresholds above those described in subparagraph 
     (A) which significantly increase the risk of certain impacts 
     or render them essentially permanent.
       ``(d) Status of Monitoring and Verification Capabilities To 
     Evaluate Greenhouse Gas Reduction Efforts.--The analysis 
     required under subsection (a)(2) shall evaluate the 
     capabilities of the monitoring, reporting, and verification 
     systems used to quantify progress in achieving reductions in 
     greenhouse gas emissions both globally and in the United 
     States (as described in section 702), including--
       ``(1) quantification of emissions and emission reductions 
     by entities participating in the cap and trade program under 
     this title;
       ``(2) quantification of emissions and emission reductions 
     by entities participating in the offset program under this 
     title;
       ``(3) quantification of emission and emissions reductions 
     by entities regulated by performance standards;
       ``(4) quantification of aggregate net emissions and 
     emissions reductions by the United States; and
       ``(5) quantification of global changes in net emissions and 
     in sources and sinks of greenhouse gases.
       ``(e) Status of Greenhouse Gas Reduction Efforts.--The 
     analysis required under subsection (a)(3) shall address--
       ``(1) whether the programs under Safe Climate Act and other 
     Federal statutes are resulting in sufficient United States 
     greenhouse gas emissions reductions to meet the emissions 
     reduction goals described in section 702, taking into account 
     the use of offsets; and
       ``(2) whether United States actions, taking into account 
     international actions, commitments, and trends, and 
     considering the range of plausible emissions scenarios, are 
     sufficient to avoid--
       ``(A) atmospheric greenhouse gas concentrations above 450 
     parts per million carbon dioxide equivalent;
       ``(B) global average surface temperature 3.6 degrees 
     Fahrenheit (2 degrees Celsius) above the pre-industrial 
     average, or such other temperature thresholds as the 
     Administrator deems appropriate; and
       ``(C) other temperature or greenhouse gas thresholds 
     identified pursuant to subsection (c)(6)(B).
       ``(f) Recommendations.--
       ``(1) Latest scientific information.--Based on the analysis 
     described in subsection (a)(1), each report under subsection 
     (a) shall identify actions that could be taken to--
       ``(A) improve the characterization of changes in the earth-
     climate system and impacts of global climate change;
       ``(B) better inform decision making and actions related to 
     global climate change;
       ``(C) mitigate risks to natural and social systems; and
       ``(D) design policies to better account for climate risks.
       ``(2) Monitoring, reporting and verification.--Based on the 
     analysis described in subsection (a)(2), each report under 
     subsection (a) shall identify key gaps in measurement, 
     reporting, and verification capabilities and make 
     recommendations to improve the accuracy and reliability of 
     those capabilities.
       ``(3) Status of greenhouse gas reduction efforts.--Based on 
     the analysis described in subsection (a)(3), taking into 
     account international actions, commitments, and trends, and 
     considering the range of plausible emissions scenarios, each 
     report under subsection (a) shall identify--
       ``(A) the quantity of additional reductions required to 
     meet the emissions reduction goals in section 702;
       ``(B) the quantity of additional reductions in global 
     greenhouse gas emissions needed to avoid the concentration 
     and temperature thresholds identified in subsection (e); and
       ``(C) possible strategies and approaches for achieving 
     additional reductions.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary.

     ``SEC. 706. NATIONAL ACADEMY REVIEW.

       ``(a) In General.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall offer to 
     enter into a contract with the National Academy of Sciences 
     (in this section referred to as the `Academy') under which 
     the Academy shall, not later than July 1, 2014, and every 4 
     years thereafter, submit to Congress and the Administrator a 
     report that includes--
       ``(1) a review of the most recent report and 
     recommendations issued under section 705; and
       ``(2) an analysis of technologies to achieve reductions in 
     greenhouse gas emissions.
       ``(b) Failure to Issue a Report.--In the event that the 
     Administrator has not issued all or part of the most recent 
     report required under section 705, the Academy shall conduct 
     its own review and analysis of the required information.
       ``(c) Technological Information.--The analysis required 
     under subsection (a)(2) shall--
       ``(1) review existing technological information and 
     reports, including the most recent reports by the Department 
     of Energy, the United States Global Change Research Program, 
     the Intergovernmental Panel on Climate Change, and the 
     International Energy Agency and any other relevant 
     information on technologies or practices that reduce or limit 
     greenhouse gas emissions;
       ``(2) include the participation of technical experts from 
     relevant private industry sectors;
       ``(3) review the current and future projected deployment of 
     technologies and practices in the United States that reduce 
     or limit greenhouse gas emissions, including--
       ``(A) technologies for capture and sequestration of 
     greenhouse gases;
       ``(B) technologies to improve energy efficiency;
       ``(C) low- or zero-greenhouse gas emitting energy 
     technologies;
       ``(D) low- or zero-greenhouse gas emitting fuels;
       ``(E) biological sequestration practices and technologies; 
     and
       ``(F) any other technologies the Academy deems relevant; 
     and
       ``(4) review and compare the emissions reduction potential, 
     commercial viability, market penetration, investment trends, 
     and deployment of the technologies described in paragraph 
     (3), including--
       ``(A) the need for additional research and development, 
     including publicly funded research and development;
       ``(B) the extent of commercial deployment, including, where 
     appropriate, a comparison to the cost and level of deployment 
     of conventional fossil fuel-fired energy technologies and 
     devices; and
       ``(C) an evaluation of any substantial technological, 
     legal, or market-based barriers to commercial deployment.
       ``(d) Recommendations.--
       ``(1) Latest scientific information.--Based on the review 
     described in subsection (a)(1), the Academy shall identify 
     actions that could be taken to--
       ``(A) improve the characterization of changes in the earth-
     climate system and impacts of global climate change;
       ``(B) better inform decision making and actions related to 
     global climate change;
       ``(C) mitigate risks to natural and social systems;
       ``(D) design policies to better account for climate risks; 
     and
       ``(E) improve the accuracy and reliability of capabilities 
     to monitor, report, and verify greenhouse gas emissions 
     reduction efforts.
       ``(2) Technological information.--Based on the analysis 
     described in subsection (a)(2), the Academy shall identify--
       ``(A) additional emissions reductions that may be possible 
     as a result of technologies described in the analysis;
       ``(B) barriers to the deployment of such technologies; and
       ``(C) actions that could be taken to speed deployment of 
     such technologies.
       ``(3) Status of greenhouse gas reduction efforts.--Based on 
     the review described in subsection (a)(1), the Academy shall 
     identify--
       ``(A) the quantity of additional reductions required to 
     meet the emissions reduction goals described in section 702; 
     and
       ``(B) the quantity of additional reductions in global 
     greenhouse gas emissions needed to avoid the concentration 
     and temperature thresholds described in section 705(c)(6)(A) 
     or identified pursuant to section 705(c)(6)(B).
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary.

     ``SEC. 707. PRESIDENTIAL RESPONSE AND RECOMMENDATIONS.

       ``(a) Agency Actions.--The President shall direct relevant 
     Federal agencies to use existing statutory authority to take 
     appropriate actions identified in the reports submitted under 
     sections 705 and 706, and to address any shortfalls 
     identified in such reports, not later than July 1, 2015, and 
     every 4 years thereafter.
       ``(b) Plan.--In the event that the Administrator or the 
     National Academy of Sciences has concluded, in the most 
     recent report submitted under section 705 or 706 
     respectively, that the United States will not achieve the 
     necessary domestic greenhouse gas emissions reductions, or 
     that global actions will not maintain safe global average 
     surface temperature and atmospheric greenhouse gas 
     concentration thresholds, the President shall, not later than 
     July 1, 2015, and every 4 years thereafter, submit to 
     Congress a plan identifying domestic and international 
     actions that will achieve necessary additional greenhouse gas 
     reductions, including any recommendations for legislative 
     action.

[[Page 16591]]



       ``PART B--DESIGNATION AND REGISTRATION OF GREENHOUSE GASES

     ``SEC. 711. DESIGNATION OF GREENHOUSE GASES.

       ``(a) Greenhouse Gases.--For purposes of this title, the 
     following are greenhouse gases:
       ``(1) Carbon dioxide.
       ``(2) Methane.
       ``(3) Nitrous oxide.
       ``(4) Sulfur hexafluoride.
       ``(5) Hydrofluorocarbons emitted from a chemical 
     manufacturing process at an industrial stationary source.
       ``(6) Any perfluorocarbon.
       ``(7) Nitrogen trifluoride.
       ``(8) Any other anthropogenic gas designated as a 
     greenhouse gas by the Administrator under this section.
       ``(b) Determination on Administrator's Initiative.--The 
     Administrator shall, by rule--
       ``(1) determine whether 1 metric ton of another 
     anthropogenic gas makes the same or greater contribution to 
     global warming over 100 years as 1 metric ton of carbon 
     dioxide;
       ``(2) determine the carbon dioxide equivalent value for 
     each gas with respect to which the Administrator makes an 
     affirmative determination under paragraph (1);
       ``(3) for each gas with respect to which the Administrator 
     makes an affirmative determination under paragraph (1) and 
     that is used as a substitute for a class I or class II 
     substance under title VI, determine the extent to which to 
     regulate that gas under section 619 and specify appropriate 
     compliance obligations under section 619;
       ``(4) designate as a greenhouse gas for purposes of this 
     title each gas for which the Administrator makes an 
     affirmative determination under paragraph (1), to the extent 
     that it is not regulated under section 619; and
       ``(5) specify the appropriate compliance obligations under 
     this title for each gas designated as a greenhouse gas under 
     paragraph (4).
       ``(c) Petitions to Designate a Greenhouse Gas.--
       ``(1) In general.--Any person may petition the 
     Administrator to designate as a greenhouse gas any 
     anthropogenic gas 1 metric ton of which makes the same or 
     greater contribution to global warming over 100 years as 1 
     metric ton of carbon dioxide.
       ``(2) Contents of petition.--The petitioner shall provide 
     sufficient data, as specified by rule by the Administrator, 
     to demonstrate that the gas is likely to be designated as a 
     greenhouse gas and is likely to be produced, imported, used, 
     or emitted in the United States. To the extent practicable, 
     the petitioner shall also identify producers, importers, 
     distributors, users, and emitters of the gas in the United 
     States.
       ``(3) Review and action by the administrator.--Not later 
     than 90 days after receipt of a petition under paragraph (2), 
     the Administrator shall determine whether the petition is 
     complete and notify the petitioner and the public of the 
     decision.
       ``(4) Additional information.--The Administrator may 
     require producers, importers, distributors, users, or 
     emitters of the gas to provide information on the 
     contribution of the gas to global warming over 100 years 
     compared to carbon dioxide.
       ``(5) Treatment of petition.--For any substance used as a 
     substitute for a class I or class II substance under title 
     VI, the Administrator may elect to treat a petition under 
     this subsection as a petition to list the substance as a 
     class II, group II substance under section 619, and may 
     require the petition to be amended to address listing 
     criteria promulgated under that section.
       ``(6) Determination.--Not later than 2 years after receipt 
     of a complete petition, the Administrator shall, after notice 
     and an opportunity for comment--
       ``(A) issue and publish in the Federal Register--
       ``(i) a determination that 1 metric ton of the gas does not 
     make a contribution to global warming over 100 years that is 
     equal to or greater than that made by 1 metric ton of carbon 
     dioxide; and
       ``(ii) an explanation of the decision; or
       ``(B) determine that 1 metric ton of the gas makes a 
     contribution to global warming over 100 years that is equal 
     to or greater than that made by 1 metric ton of carbon 
     dioxide, and take the actions described in subsection (b) 
     with respect to such gas.
       ``(7) Grounds for denial.--The Administrator may not deny a 
     petition under this subsection solely on the basis of 
     inadequate Environmental Protection Agency resources or time 
     for review.
       ``(d) Science Advisory Board Consultation.--
       ``(1) Consultation.--The Administrator shall--
       ``(A) give notice to the Science Advisory Board prior to 
     making a determination under subsection (b)(1), (c)(6), or 
     (e)(2)(B);
       ``(B) consider the written recommendations of the Science 
     Advisory Board under paragraph (2) regarding the 
     determination; and
       ``(C) consult with the Science Advisory Board regarding 
     such determination, including consultation subsequent to 
     receipt of such written recommendations.
       ``(2) Formulation of recommendations.--Upon receipt of 
     notice under paragraph (1)(A) regarding a pending 
     determination under subsection (b)(1), (c)(6), or (e)(2)(B), 
     the Science Advisory Board shall--
       ``(A) formulate recommendations regarding such 
     determination, subject to a peer review process; and
       ``(B) submit such recommendations in writing to the 
     Administrator.
       ``(e) Manufacturing and Emission Notices.--
       ``(1) Notice requirement.--
       ``(A) In general.--Effective 24 months after the date of 
     enactment of this title, no person may manufacture or 
     introduce into interstate commerce a fluorinated gas, or emit 
     a significant quantity, as determined by the Administrator, 
     of any fluorinated gas that is generated as a byproduct 
     during the production or use of another fluorinated gas, 
     unless--
       ``(i) the gas is designated as a greenhouse gas under this 
     section or is an ozone-depleting substance listed as a class 
     I or class II substance under title VI;
       ``(ii) the Administrator has determined that 1 metric ton 
     of such gas does not make a contribution to global warming 
     over 100 years that is equal to or greater than that made by 
     1 metric ton of carbon dioxide; or
       ``(iii) the person manufacturing or importing the gas for 
     distribution into interstate commerce, or emitting the gas, 
     has submitted to the Administrator, at least 90 days before 
     the start of such manufacture, introduction into commerce, or 
     emission, a notice of such person's manufacture, introduction 
     into commerce, or emission of such gas, and the Administrator 
     has not determined that that notice or a substantially 
     similar notice submitted by that person is incomplete.
       ``(B) Alternative compliance.--For a gas that is a 
     substitute for a class I or class II substance under title VI 
     and either has been listed as acceptable for use under 
     section 612 or is currently subject to evaluation under 
     section 612, the Administrator may accept the notice and 
     information provided pursuant to that section as fulfilling 
     the obligation under clause (iii) of subparagraph (A).
       ``(2) Review and action by the administrator.--
       ``(A) Completeness.--Not later than 90 days after receipt 
     of notice under paragraph (1)(A)(iii) or (B), the 
     Administrator shall determine whether the notice is complete.
       ``(B) Determination.--If the Administrator determines that 
     the notice is complete, the Administrator shall, after notice 
     and an opportunity for comment, not later than 12 months 
     after receipt of the notice--
       ``(i) issue and publish in the Federal Register--

       ``(I) a determination that 1 metric ton of the gas does not 
     make a contribution to global warming over 100 years that is 
     equal to or greater than that made by 1 metric ton of carbon 
     dioxide; and
       ``(II) an explanation of the decision; or

       ``(ii) determine that 1 metric ton of the gas makes a 
     contribution to global warming over 100 years that is equal 
     to or greater than that made by 1 metric ton of carbon 
     dioxide, and take the actions described in subsection (b) 
     with respect to such gas.
       ``(f) Regulations.--Not later than one year after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations to carry out this section. Such 
     regulations shall include--
       ``(1) requirements for the contents of a petition submitted 
     under subsection (c);
       ``(2) requirements for the contents of a notice required 
     under subsection (e); and
       ``(3) methods and standards for evaluating the carbon 
     dioxide equivalent value of a gas.
       ``(g) Gases Regulated Under Title VI.--The Administrator 
     shall not designate a gas as a greenhouse gas under this 
     section to the extent that the gas is regulated under title 
     VI.
       ``(h) Savings Clause.--Nothing in this section shall be 
     interpreted to relieve any person from complying with the 
     requirements of section 612.

     ``SEC. 712. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE 
                   GASES.

       ``(a) Measure of Quantity of Greenhouse Gases.--Any 
     provision of this title or title VIII that refers to a 
     quantity or percentage of a quantity of greenhouse gases 
     shall mean the quantity or percentage of the greenhouse gases 
     expressed in carbon dioxide equivalents.
       ``(b) Initial Value.--Except as provided by the 
     Administrator under this section or section 711--
       ``(1) the carbon dioxide equivalent value of greenhouse 
     gases for purposes of this Act shall be as follows:

     ``CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASES
------------------------------------------------------------------------
                                                        Carbon dioxide
            Greenhouse gas (1 metric ton)             equivalent (metric
                                                             tons)
------------------------------------------------------------------------
Carbon dioxide......................................                  1
------------------------------------------------------------------------
Methane.............................................                 25
------------------------------------------------------------------------
Nitrous oxide.......................................                298
------------------------------------------------------------------------
HFC-23..............................................             14,800
------------------------------------------------------------------------
HFC-125.............................................              3,500
------------------------------------------------------------------------

[[Page 16592]]

 
HFC-134a............................................              1,430
------------------------------------------------------------------------
HFC-143a............................................              4,470
------------------------------------------------------------------------
HFC-152a............................................                124
------------------------------------------------------------------------
HFC-227ea...........................................              3,220
------------------------------------------------------------------------
HFC-236fa...........................................              9,810
------------------------------------------------------------------------
HFC-4310mee.........................................              1,640
------------------------------------------------------------------------
CF4.................................................              7,390
------------------------------------------------------------------------
C2F6................................................             12,200
------------------------------------------------------------------------
C4F10...............................................              8,860
------------------------------------------------------------------------
C6F14...............................................              9,300
------------------------------------------------------------------------
SF6.................................................             22,800
------------------------------------------------------------------------
NF3.................................................             17,200
------------------------------------------------------------------------

     ; and
       ``(2) the carbon dioxide equivalent value for purposes of 
     this Act for any greenhouse gas not listed in the table under 
     paragraph (1) shall be the 100-year Global Warming Potentials 
     provided in the Intergovernmental Panel on Climate Change 
     Fourth Assessment Report.
       ``(c) Periodic Review.--
       ``(1) Not later than February 1, 2017, and (except as 
     provided in paragraph (3)) not less than every 5 years 
     thereafter, the Administrator shall--
       ``(A) review and, if appropriate, revise the carbon dioxide 
     equivalent values established under this section or section 
     711(b)(2), based on a determination of the number of metric 
     tons of carbon dioxide that makes the same contribution to 
     global warming over 100 years as 1 metric ton of each 
     greenhouse gas; and
       ``(B) publish in the Federal Register the results of that 
     review and any revisions.
       ``(2) A revised determination published in the Federal 
     Register under paragraph (1)(B) shall take effect for 
     greenhouse gas emissions starting on January 1 of the first 
     calendar year starting at least 9 months after the date on 
     which the revised determination was published.
       ``(3) The Administrator may decrease the frequency of 
     review and revision under paragraph (1) if the Administrator 
     determines that such decrease is appropriate in order to 
     synchronize such review and revision with any similar review 
     process carried out pursuant to the United Nations Framework 
     Convention on Climate Change, done at New York on May 9, 
     1992, or to an agreement negotiated under that convention, 
     except that in no event shall the Administrator carry out 
     such review and revision any less frequently than every 10 
     years.
       ``(d) Methodology.--In setting carbon dioxide equivalent 
     values, for purposes of this section or section 711, the 
     Administrator shall take into account publications by the 
     Intergovernmental Panel on Climate Change or a successor 
     organization under the auspices of the United Nations 
     Environmental Programme and the World Meteorological 
     Organization.

     ``SEC. 713. GREENHOUSE GAS REGISTRY.

       ``(a) Definitions.--For purposes of this section:
       ``(1) Climate registry.--The term `Climate Registry' means 
     the greenhouse gas emissions registry jointly established and 
     managed by more than 40 States and Indian tribes in 2007 to 
     collect high-quality greenhouse gas emission data from 
     facilities, corporations, and other organizations to support 
     various greenhouse gas emission reporting and reduction 
     policies for the member States and Indian tribes.
       ``(2) Reporting entity.--The term `reporting entity' 
     means--
       ``(A) a covered entity;
       ``(B) an entity that--
       ``(i) would be a covered entity if it had emitted, 
     produced, imported, manufactured, or delivered in 2008 or any 
     subsequent year more than the applicable threshold level in 
     the definition of covered entity in paragraph (13) of section 
     700; and
       ``(ii) has emitted, produced, imported, manufactured, or 
     delivered in 2008 or any subsequent year more than the 
     applicable threshold level in the definition of covered 
     entity in paragraph (13) of section 700, provided that the 
     figure of 25,000 tons of carbon dioxide equivalent is read 
     instead as 10,000 tons of carbon dioxide equivalent and the 
     figure of 460,000,000 cubic feet is read instead as 
     184,000,000 cubic feet;
       ``(C) any other entity that emits a greenhouse gas, or 
     produces, imports, manufactures, or delivers material whose 
     use results or may result in greenhouse gas emissions if the 
     Administrator determines that reporting under this section by 
     such entity will help achieve the purposes of this title or 
     title VIII;
       ``(D) any vehicle fleet with emissions of more than 25,000 
     tons of carbon dioxide equivalent on an annual basis, if the 
     Administrator determines that the inclusion of such fleet 
     will help achieve the purposes of this title or title VIII; 
     or
       ``(E) any entity that delivers electricity to a facility in 
     an energy-intensive industrial sector that meets the energy 
     or greenhouse gas intensity criteria in section 
     764(b)(2)(A)(i).
       ``(b) Regulations.--
       ``(1) In general.--Not later than 6 months after the date 
     of enactment of this title, the Administrator shall issue 
     regulations establishing a Federal greenhouse gas registry. 
     Such regulations shall--
       ``(A) require reporting entities to submit to the 
     Administrator data on--
       ``(i) greenhouse gas emissions in the United States;
       ``(ii) the production and manufacture in the United States, 
     importation into the United States, and, at the discretion of 
     the Administrator, exportation from the United States, of 
     fuels and industrial gases the uses of which result or may 
     result in greenhouse gas emissions;
       ``(iii) deliveries in the United States of natural gas, and 
     any other gas meeting the specifications for commingling with 
     natural gas for purposes of delivery, the combustion of which 
     result or may result in greenhouse gas emissions; and
       ``(iv) the capture and sequestration of greenhouse gases;
       ``(B) require covered entities and, where appropriate, 
     other reporting entities to submit to the Administrator data 
     sufficient to ensure compliance with or implementation of the 
     requirements of this title;
       ``(C) require reporting of electricity delivered to 
     facilities in an energy-intensive industrial sector that 
     meets the energy or greenhouse gas intensity criteria in 
     section 764(b)(2)(A)(i);
       ``(D) ensure the completeness, consistency, transparency, 
     accuracy, precision, and reliability of such data;
       ``(E) take into account 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 protocols from the 
     Climate Registry and other mandatory State or multistate 
     authorized programs;
       ``(F) take into account the latest scientific research;
       ``(G) require that, for covered entities with respect to 
     greenhouse gases to which section 722 applies, and, to the 
     extent determined to be appropriate by the Administrator, for 
     covered entities with respect to other greenhouse gases and 
     for other reporting entities, submitted data are based on--
       ``(i) continuous monitoring systems for fuel flow or 
     emissions, such as continuous emission monitoring systems;
       ``(ii) alternative systems that are demonstrated as 
     providing data with the same precision, reliability, 
     accessibility, and timeliness, or, to the extent the 
     Administrator determines is appropriate for reporting small 
     amounts of emissions, the same precision, reliability, and 
     accessibility and similar timeliness, as data provided by 
     continuous monitoring systems for fuel flow or emissions; or
       ``(iii) alternative methodologies that are demonstrated to 
     provide data with precision, reliability, accessibility, and 
     timeliness, or, to the extent the Administrator determines is 
     appropriate for reporting small amounts of emissions, 
     precision, reliability, and accessibility, as similar as is 
     technically feasible to that of data generally provided by 
     continuous monitoring systems for fuel flow or emissions, if 
     the Administrator determines that, with respect to a 
     reporting entity, there is no continuous monitoring system or 
     alternative system described in clause (i) or (ii) that is 
     technically feasible;
       ``(H) require that the Administrator, in determining the 
     extent to which the requirement to use systems or 
     methodologies in accordance with subparagraph (G) is 
     appropriate for reporting entities other than covered 
     entities or for greenhouse gases to which section 722 does 
     not apply, consider the cost of using such systems and 
     methodologies, and of using other systems and methodologies 
     that are available and suitable, for quantifying the 
     emissions involved in light of the purposes of this title, 
     including the goal of collecting consistent entity-wide data;
       ``(I) include methods for minimizing double reporting and 
     avoiding irreconcilable double reporting of greenhouse gas 
     emissions;
       ``(J) establish measurement protocols for carbon capture 
     and sequestration systems, taking into consideration the 
     regulations promulgated under section 813;
       ``(K) require that reporting entities provide the data 
     required under this paragraph in reports submitted 
     electronically to the Administrator, in such form and 
     containing such information as may be required by the 
     Administrator;
       ``(L) include requirements for keeping records supporting 
     or related to, and protocols for auditing, submitted data;
       ``(M) establish consistent policies for calculating carbon 
     content and greenhouse gas emissions for each type of fossil 
     fuel with respect to which reporting is required;

[[Page 16593]]

       ``(N) subsequent to implementation of policies developed 
     under subparagraph (M), provide for immediate dissemination, 
     to States, Indian tribes, and on the Internet, of all data 
     reported under this section as soon as practicable after 
     electronic audit by the Administrator and any resulting 
     correction of data, except that data shall not be 
     disseminated under this subparagraph if--
       ``(i) its nondissemination is vital to the national 
     security of the United States, as determined by the 
     President; or
       ``(ii) it is 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--

       ``(I) data relating to greenhouse gas emissions, including 
     any upstream or verification data from reporting entities, 
     shall not be considered to be confidential business 
     information; and
       ``(II) data that is confidential business information shall 
     be provided to a State or Indian tribe within whose 
     jurisdiction the reporting entity is located, if the 
     Administrator determines that such State or Indian tribe has 
     in effect protections for confidential business information 
     that are at least as protective as protections applicable to 
     the Federal Government;

       ``(O) prescribe methods by which the Administrator shall, 
     in cases in which satisfactory data are not submitted to the 
     Administrator for any period of time, estimate emission, 
     production, importation, manufacture, or delivery levels--
       ``(i) for covered entities with respect to greenhouse gas 
     emissions, production, importation, manufacture, or delivery 
     regulated under this title to ensure that emissions, 
     production, importation, manufacture, or deliveries are not 
     underreported, and to create a strong incentive for meeting 
     data monitoring and reporting requirements--

       ``(I) with a conservative estimate of the highest emission, 
     production, importation, manufacture, or delivery levels that 
     may have occurred during the period for which data are 
     missing; or
       ``(II) to the extent the Administrator considers 
     appropriate, with an estimate of such levels assuming the 
     unit is emitting, producing, importing, manufacturing, or 
     delivering at a maximum potential level during the period, in 
     order to ensure that such levels are not underreported and to 
     create a strong incentive for meeting data monitoring and 
     reporting requirements; and

       ``(ii) for covered entities with respect to greenhouse gas 
     emissions to which section 722 does not apply and for other 
     reporting entities, with a reasonable estimate of the 
     emission, production, importation, manufacture, or delivery 
     levels that may have occurred during the period for which 
     data are missing;
       ``(P) require the designation of a designated 
     representative for each reporting entity;
       ``(Q) require an appropriate certification, by the 
     designated representative for the reporting entity, of 
     accurate and complete accounting of greenhouse gas emissions, 
     as determined by the Administrator; and
       ``(R) include requirements for other data necessary for 
     accurate and complete accounting of greenhouse gas emissions, 
     as determined by the Administrator, including data for 
     quality assurance of monitoring systems, monitors and other 
     measurement devices, and other data needed to verify reported 
     emissions, production, importation, manufacture, or delivery.
       ``(2) Timing.--
       ``(A) Calendar years 2007 through 2010.--For a base period 
     of calendar years 2007 through 2010, each reporting entity 
     shall submit annual data required under this section to the 
     Administrator not later than March 31, 2011. The 
     Administrator may waive or modify reporting requirements for 
     calendar years 2007 through 2010 for categories of reporting 
     entities to the extent that the Administrator determines that 
     the reporting entities did not keep data or records necessary 
     to meet reporting requirements. The Administrator may, in 
     addition to or in lieu of such requirements, collect 
     information on energy consumption and production.
       ``(B) Subsequent calendar years.--For calendar year 2011 
     and each subsequent calendar year, each reporting entity 
     shall submit quarterly data required under this section to 
     the Administrator not later than 60 days after the end of the 
     applicable quarter, except when the data is already being 
     reported to the Administrator on an earlier timeframe for 
     another program.
       ``(3) Waiver of reporting requirements.--The Administrator 
     may waive reporting requirements under this section for 
     specific entities to the extent that the Administrator 
     determines that sufficient and equally or more reliable 
     verified and timely data are available to the Administrator 
     and the public on the Internet under other mandatory 
     statutory requirements.
       ``(4) Alternative threshold.--The Administrator may, by 
     rule, establish applicability thresholds for reporting under 
     this section using alternative metrics and levels, provided 
     that such metrics and levels are easier to administer and 
     cover the same size and type of sources as the threshold 
     defined in this section.
       ``(c) Interrelationship With Other Systems.--In developing 
     the regulations issued under subsection (b), the 
     Administrator shall take into account the work done by the 
     Climate Registry and other mandatory State or multistate 
     programs. Such regulations shall include an explanation of 
     any major differences in approach between the system 
     established under the regulations and such registries and 
     programs.

                        ``PART C--PROGRAM RULES

     ``SEC. 721. EMISSION ALLOWANCES.

       ``(a) In General.--The Administrator shall establish a 
     separate quantity of emission allowances for each calendar 
     year starting in 2012, in the amounts prescribed under 
     subsection (e).
       ``(b) Identification Numbers.--The Administrator shall 
     assign to each emission allowance established under 
     subsection (a) a unique identification number that includes 
     the vintage year for that emission allowance.
       ``(c) Legal Status of Emission Allowances.--
       ``(1) In general.--An allowance established by the 
     Administrator under this title does not constitute a property 
     right, nor does any offset credit or other instrument 
     established or issued under the American Clean Energy and 
     Security Act of 2009, and the amendments made thereby, for 
     the purpose of demonstrating compliance with this title.
       ``(2) Termination or limitation.--Nothing in this Act or 
     any other provision of law shall be construed to limit or 
     alter the authority of the United States, including the 
     Administrator acting pursuant to statutory authority, to 
     terminate or limit allowances, offset credits, or term offset 
     credits.''
       ``(3) Other provisions unaffected.--Except as otherwise 
     specified in this Act, nothing in this Act relating to 
     allowances, offset credits, or term offset credits, 
     established or issued under this title shall affect the 
     application of any other provision of law to a covered 
     entity, or the responsibility for a covered entity to comply 
     with any such provision of law.
       ``(d) Savings Provision.--Nothing in this part shall be 
     construed as requiring a change of any kind in any State law 
     regulating electric utility rates and charges, or as 
     affecting any State law regarding such State regulation, or 
     as limiting State regulation (including any prudency review) 
     under such a State law. Nothing in this part shall be 
     construed as modifying the Federal Power Act or as affecting 
     the authority of the Federal Energy Regulatory Commission 
     under that Act. Nothing in this part shall be construed to 
     interfere with or impair any program for competitive bidding 
     for power supply in a State in which such program is 
     established.
       ``(e) Allowances for Each Calendar Year.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     number of emission allowances established by the 
     Administrator under subsection (a) for each calendar year 
     shall be as provided in the following table:


------------------------------------------------------------------------
          ``Calendar year             Emission allowances (in millions)
------------------------------------------------------------------------
                      2012                                4,627
------------------------------------------------------------------------
                      2013                                4,544
------------------------------------------------------------------------
                      2014                                5,099
------------------------------------------------------------------------
                      2015                                5,003
------------------------------------------------------------------------
                      2016                                5,482
------------------------------------------------------------------------
                      2017                                5,375
------------------------------------------------------------------------
                      2018                                5,269
------------------------------------------------------------------------
                      2019                                5,162
------------------------------------------------------------------------
                      2020                                5,056
------------------------------------------------------------------------
                      2021                                4,903
------------------------------------------------------------------------
                      2022                                4,751
------------------------------------------------------------------------
                      2023                                4,599
------------------------------------------------------------------------


------------------------------------------------------------------------
          ``Calendar year             Emission allowances (in millions)
------------------------------------------------------------------------
                      2024                                4,446
------------------------------------------------------------------------
                      2025                                4,294
------------------------------------------------------------------------
                      2026                                4,142
------------------------------------------------------------------------
                      2027                                3,990
------------------------------------------------------------------------
                      2028                                3,837
------------------------------------------------------------------------
                      2029                                3,685
------------------------------------------------------------------------
                      2030                                3,533
------------------------------------------------------------------------
                      2031                                3,408
------------------------------------------------------------------------
                      2032                                3,283
------------------------------------------------------------------------
                      2033                                3,158
------------------------------------------------------------------------
                      2034                                3,033
------------------------------------------------------------------------
                      2035                                2,908
------------------------------------------------------------------------

[[Page 16594]]

 
                      2036                                2,784
------------------------------------------------------------------------
                      2037                                2,659
------------------------------------------------------------------------
                      2038                                2,534
------------------------------------------------------------------------
                      2039                                2,409
------------------------------------------------------------------------
                      2040                                2,284
------------------------------------------------------------------------
                      2041                                2,159
------------------------------------------------------------------------
                      2042                                2,034
------------------------------------------------------------------------
                      2043                                1,910
------------------------------------------------------------------------
                      2044                                1,785
------------------------------------------------------------------------
                      2045                                1,660
------------------------------------------------------------------------
                      2046                                1,535
------------------------------------------------------------------------
                      2047                                1,410
------------------------------------------------------------------------
                      2048                                1,285
------------------------------------------------------------------------
                      2049                                1,160
------------------------------------------------------------------------
2050 and each year thereafter                             1,035
------------------------------------------------------------------------

       ``(2) Revision.--
       ``(A) In general.--The Administrator may adjust, in 
     accordance with subparagraph (B), the number of emission 
     allowances established pursuant to paragraph (1) if, after 
     notice and an opportunity for public comment, the 
     Administrator determines that--
       ``(i) United States greenhouse gas emissions in 2005 were 
     other than 7,206 million metric tons carbon dioxide 
     equivalent;
       ``(ii) if the requirements of this title for 2012 had been 
     in effect in 2005, section 722 would have required emission 
     allowances to be held for other than 66.2 percent of United 
     States greenhouse gas emissions in 2005;
       ``(iii) if the requirements of this title for 2014 had been 
     in effect in 2005, section 722 would have required emission 
     allowances to be held for other than 75.7 percent of United 
     States greenhouse gas emissions in 2005; or
       ``(iv) if the requirements of this title for 2016 had been 
     in effect in 2005, section 722 would have required emission 
     allowances to be held for other than 84.5 percent United 
     States greenhouse gas emissions in 2005.
       ``(B) Adjustment formula.--
       ``(i) In general.--If the Administrator adjusts under this 
     paragraph the number of emission allowances established 
     pursuant to paragraph (1), the number of emission allowances 
     the Administrator establishes for any given calendar year 
     shall equal the product of--

       ``(I) United States greenhouse gas emissions in 2005, 
     expressed in tons of carbon dioxide equivalent;
       ``(II) the percent of United States greenhouse gas 
     emissions in 2005, expressed in tons of carbon dioxide 
     equivalent, that would have been subject to section 722 if 
     the requirements of this title for the given calendar year 
     had been in effect in 2005; and
       ``(III) the percentage set forth for that calendar year in 
     section 703(a), or determined under clause (ii) of this 
     subparagraph.

       ``(ii) Targets.--In applying the portion of the formula in 
     clause (i)(III) of this subparagraph, for calendar years for 
     which a percentage is not listed in section 703(a), the 
     Administrator shall use a uniform annual decline in the 
     amount of emissions between the years that are specified.
       ``(iii) Carbon dioxide equivalent value.--If the 
     Administrator adjusts under this paragraph the number of 
     emission allowances established pursuant to paragraph (1), 
     the Administrator shall use the carbon dioxide equivalent 
     values established pursuant to section 712.
       ``(iv) Limitation on adjustment timing.--Once a calendar 
     year has started, the Administrator may not adjust the number 
     of emission allowances to be established for that calendar 
     year.
       ``(C) Limitation on adjustment authority.--The 
     Administrator may adjust under this paragraph the number of 
     emission allowances to be established pursuant to paragraph 
     (1) only once.
       ``(f) Compensatory Allowance.--
       ``(1) In general.--The regulations promulgated under 
     subsection (h) shall provide for the establishment and 
     distribution of compensatory allowances for--
       ``(A) the destruction, in 2012 or later, of fluorinated 
     gases that are greenhouse gases if--
       ``(i) allowances or offset credits were retired for their 
     production or importation; and
       ``(ii) such gases are not required to be destroyed under 
     any other provision of law;
       ``(B) the nonemissive use, in 2012 or later, of petroleum-
     based or coal-based liquid or gaseous fuel, petroleum coke, 
     natural gas liquid, or natural gas as a feedstock, if 
     allowances or offset credits were retired for the greenhouse 
     gases that would have been emitted from their combustion; and
       ``(C) the conversionary use, in 2012 or later, of 
     fluorinated gases in a manufacturing process, including 
     semiconductor research or manufacturing, if allowances or 
     offset credits were retired for the production or importation 
     of such gas.
       ``(2) Establishment and distribution.--
       ``(A) In general.--Not later than 90 days after the end of 
     each calendar year, the Administrator shall establish and 
     distribute to the entity taking the actions described in 
     subparagraph (A), (B), or (C) of paragraph (1) a quantity of 
     compensatory allowances equivalent to the number of tons of 
     carbon dioxide equivalent of avoided emissions achieved 
     through such actions. In establishing the quantity of 
     compensatory allowances, the Administrator shall take into 
     account the carbon dioxide equivalent value of any greenhouse 
     gas resulting from such action.
       ``(B) Source of allowances.--Compensatory allowances 
     established under this subsection shall not be emission 
     allowances established under subsection (a).
       ``(C) Identification numbers.--The Administrator shall 
     assign to each compensatory allowance established under 
     subparagraph (A) a unique identification number.
       ``(3) Definitions.--For purposes of this subsection--
       ``(A) the term `destruction' means the conversion of a 
     greenhouse gas by thermal, chemical, or other means to 
     another gas or set of gases with little or no carbon dioxide 
     equivalent value;
       ``(B) the term `nonemissive use' means the use of fossil 
     fuel as a feedstock in an industrial or manufacturing process 
     to the extent that greenhouse gases are not emitted from such 
     process, and to the extent that the products of such process 
     are not intended for use as, or to be contained in, a fuel; 
     and
       ``(C) the term `conversionary use' means the conversion 
     during research or manufacturing of a fluorinated gas into 
     another greenhouse gas or set of gases with a lower carbon 
     dioxide equivalent value.
       ``(4) Feedstock emissions study.--
       ``(A) The Administrator may conduct a study to determine 
     the extent to which petroleum-based or coal-based liquid or 
     gaseous fuel, petroleum coke, natural gas liquid, or natural 
     gas are used as feedstocks in manufacturing processes to 
     produce products and the greenhouse gas emissions resulting 
     from such uses.
       ``(B) If as a result of such a study, the Administrator 
     determines that the use of such products by noncovered 
     sources results in substantial emissions of greenhouse gases 
     and that such emissions have not been adequately addressed 
     under other requirements of this Act, the Administrator may, 
     after notice and comment rulemaking, promulgate a regulation 
     reducing compensatory allowances commensurately if doing so 
     will not result in shifting such emissions to noncovered 
     sources.
       ``(g) Fluorinated Gases Assessment.--No later than March 
     31, 2014, the Administrator shall complete an assessment of 
     the regulation of non-HFC fluorinated gases under this title 
     to determine whether the most appropriate point of regulation 
     is at the gas manufacturer or importer level, or at the 
     source of emissions downstream. If the Administrator 
     determines, based on consideration of environmental 
     effectiveness, cost effectiveness, administrative 
     feasibility, extent of coverage of emissions, competitiveness 
     and other relevant considerations consistent with the 
     purposes of this title, that emissions of non-HFC fluorinated 
     gases can best be regulated by designating downstream 
     emission sources as covered entities with compliance 
     obligations under section 722, the Administrator shall, after 
     notice and comment rulemaking, change the definition of 
     covered entity and the compliance obligations under section 
     722 with respect to non-HFC fluorinated gases accordingly, 
     consistent with the purposes of this title, and establish 
     such other requirements as are necessary to ensure compliance 
     for such entities with the requirements of this title.
       ``(h) Regulations.--Not later than 24 months after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations to carry out the provisions of this 
     title.

     ``SEC. 722. PROHIBITION OF EXCESS EMISSIONS.

       ``(a) Prohibition.--Except as provided in subsection (c), 
     effective January 1, 2012, each covered entity is prohibited 
     from emitting greenhouse gases and having attributable 
     greenhouse gas emissions, in combination, in excess of its 
     allowable emissions level. A covered entity's allowable 
     emissions level for each calendar year is the number of 
     emission allowances (or offset credits or other allowances as 
     provided in subsection (d)) it holds as of 12:01 a.m. on 
     April 1 (or a later date established by the Administrator 
     under subsection (j)) of the following calendar year.
       ``(b) Methods of Demonstrating Compliance.--Except as 
     otherwise provided in this section, the owner or operator of 
     a covered entity shall not be considered to be in compliance 
     with the prohibition in subsection (a) unless, as of 12:01 
     a.m. on April 1 (or a later date established by the 
     Administrator under subsection (j)) of each calendar year 
     starting in 2013, the owner or operator holds a quantity of 
     emission allowances (or offset credits or other allowances as 
     provided in subsection (d)) at least as great as the quantity 
     calculated as follows:

[[Page 16595]]

       ``(1) Electricity sources.--For a covered entity described 
     in section 700(13)(A), 1 emission allowance for each ton of 
     carbon dioxide equivalent of greenhouse gas that such covered 
     entity emitted in the previous calendar year, excluding 
     emissions resulting from the combustion of--
       ``(A) petroleum-based or coal-based liquid fuel;
       ``(B) natural gas liquid;
       ``(C) renewable biomass or gas derived from renewable 
     biomass; or
       ``(D) petroleum coke or gas derived from petroleum coke.
       ``(2) Fuel producers and importers.--For a covered entity 
     described in section 700(13)(B), 1 emission allowance for 
     each ton of carbon dioxide equivalent of greenhouse gas that 
     would be emitted from the combustion of any petroleum-based 
     or coal-based liquid fuel, petroleum coke, or natural gas 
     liquid, produced or imported by such covered entity during 
     the previous calendar year for sale or distribution in 
     interstate commerce, assuming no capture and sequestration of 
     any greenhouse gas emissions.
       ``(3) Industrial gas producers and importers.--For a 
     covered entity described in section 700(13)(C), 1 emission 
     allowance for each ton of carbon dioxide equivalent of fossil 
     fuel-based carbon dioxide, nitrous oxide, or any other 
     fluorinated gas that is a greenhouse gas (except for nitrogen 
     trifluoride), or any combination thereof, produced or 
     imported by such covered entity during the previous calendar 
     year for sale or distribution in interstate commerce.
       ``(4) Nitrogen trifluoride sources.--For a covered entity 
     described in section 700(13)(D), 1 emission allowance for 
     each ton of carbon dioxide equivalent of nitrogen trifluoride 
     that such covered entity emitted in the previous calendar 
     year.
       ``(5) Geological sequestration sites.--For a covered entity 
     described in section 700(13)(E), 1 emission allowance for 
     each ton of carbon dioxide equivalent of greenhouse gas that 
     such covered entity emitted in the previous calendar year.
       ``(6) Industrial stationary sources.--For a covered entity 
     described in section 700(13)(F), (G), or (H), 1 emission 
     allowance for each ton of carbon dioxide equivalent of 
     greenhouse gas that such covered entity emitted in the 
     previous calendar year, excluding emissions resulting from--
       ``(A) the combustion of petroleum-based or coal-based 
     liquid fuel;
       ``(B) the combustion of natural gas liquid;
       ``(C) the combustion of renewable biomass or gas derived 
     from renewable biomass;
       ``(D) the combustion of petroleum coke or gas derived from 
     petroleum coke; or
       ``(E) the use of any fluorinated gas that is a greenhouse 
     gas purchased for use at that covered entity, except for 
     nitrogen trifluoride.
       ``(7) Industrial fossil fuel-fired combustion devices.--For 
     a covered entity described in section 700(13)(I), 1 emission 
     allowance for each ton of carbon dioxide equivalent of 
     greenhouse gas that the devices emitted in the previous 
     calendar year, excluding emissions resulting from the 
     combustion of--
       ``(A) petroleum-based or coal-based liquid fuel;
       ``(B) natural gas liquid;
       ``(C) renewable biomass or gas derived from renewable 
     biomass; or
       ``(D) petroleum coke or gas derived from petroleum coke.
       ``(8) Natural gas local distribution companies.--For a 
     covered entity described in section 700(13)(J), 1 emission 
     allowance for each ton of carbon dioxide equivalent of 
     greenhouse gas that would be emitted from the combustion of 
     the natural gas, and any other gas meeting the specifications 
     for commingling with natural gas for purposes of delivery, 
     that such entity delivered during the previous calendar year 
     to customers that are not covered entities, assuming no 
     capture and sequestration of that greenhouse gas.
       ``(9) Algae-based fuels.--Where carbon dioxide (or another 
     greenhouse gas) generated by a covered entity is used as an 
     input in the production of algae-based fuels, the 
     Administrator shall ensure that emission allowances are 
     required to be held either for the carbon dioxide generated 
     by a covered entity that is used to grow the algae or for the 
     portion of the carbon dioxide emitted from combustion of the 
     fuel produced from such algae that is attributable to carbon 
     dioxide generated by a covered entity, but not for both.
       ``(10) Fugitive emissions.--The greenhouse gas emissions to 
     which paragraphs (1), (4), (6), and (7) apply shall not 
     include fugitive emissions of greenhouse gas, except to the 
     extent the Administrator determines that data on the carbon 
     dioxide equivalent value of greenhouse gas in the fugitive 
     emissions can be provided with sufficient precision, 
     reliability, accessibility, and timeliness to ensure the 
     integrity of emission allowances, the allowance tracking 
     system, and the cap on emissions.
       ``(11) Export exemption.--This section shall not apply to 
     any petroleum-based or coal-based liquid fuel, petroleum 
     coke, natural gas liquid, fossil fuel-based carbon dioxide, 
     nitrous oxide, or fluorinated gas that is exported for sale 
     or use.
       ``(12) Natural gas liquids.--For natural gas liquids, the 
     covered entity subject to the requirement stated in paragraph 
     (2) shall be the owner of the natural gas liquids at the 
     point the natural gas liquids are separated into merchantable 
     products.
       ``(13) Application of multiple paragraphs.--For a covered 
     entity to which more than 1 of paragraphs (1) through (8) 
     apply, all applicable paragraphs shall apply, except that not 
     more than 1 emission allowance shall be required for the same 
     emission.
       ``(14) Application to fractions of tons.--In applying 
     paragraphs (1) through (8), any amount less than 1 ton of 
     carbon dioxide equivalent of emissions or attributable 
     greenhouse gas emissions shall be treated as 1 ton of such 
     carbon dioxide equivalent.
       ``(c) Phase-in of Prohibition.--
       ``(1) Industrial stationary sources.--The prohibition under 
     subsection (a) shall first apply to a covered entity 
     described in section 700(13)(D), (F), (G), (H), or (I), with 
     respect to emissions occurring during calendar year 2014.
       ``(2) Natural gas local distribution companies.--The 
     prohibition under subsection (a) shall first apply to a 
     covered entity described in section 700(13)(J) with respect 
     to deliveries occurring during calendar year 2016.
       ``(d) Additional Methods.--In addition to using the method 
     of compliance described in subsection (b), a covered entity 
     may do the following:
       ``(1) Offset credits.--
       ``(A) In general.--Covered entities collectively may, in 
     accordance with this paragraph, use offset credits to 
     demonstrate compliance for up to a maximum of 2 billion tons 
     of greenhouse gas emissions annually. The ability to 
     demonstrate compliance with offset credits shall be divided 
     pro rata among covered entities by allowing each covered 
     entity to satisfy a percentage of the number of allowances 
     required to be held under subsection (b) to demonstrate 
     compliance by holding 1 domestic offset credit or 1.25 
     international offset credits in lieu of an emission 
     allowance, except as provided in subparagraph (D).
       ``(B) Applicable percentage.--The percentage referred to in 
     subparagraph (A) for a given calendar year shall be 
     determined by dividing 2 billion by the sum of 2 billion plus 
     the number of emission allowances established under section 
     721(a) for the previous year, and multiplying that number by 
     100. Not more than one half of the applicable percentage 
     under this paragraph may be used by holding domestic offset 
     credits, and not more than one half of the applicable 
     percentage under this paragraph may be used by holding 
     international offset credits, except as provided in 
     subparagraph (C).
       ``(C) Modified percentages.--If the Administrator 
     determines that domestic offset credits available for use in 
     demonstrating compliance in any calendar year at domestic 
     offset prices generally equal to or less than emission 
     allowance prices, are likely to offset less than 0.9 billion 
     tons of greenhouse gas emissions (measured in tons of carbon 
     dioxide equivalents), for purposes of compliance 
     demonstration in that year the Administrator shall--
       ``(i) increase the percentage of emissions that can be 
     offset through the use of international offset credits to 
     reflect the amount that 1.0 billion exceeds the number of 
     domestic offset credits the Administrator determines is 
     available, at prices generally equal to or less than emission 
     allowance prices, for that year, up to a maximum of 0.5 
     billion tons of greenhouse gas emissions; and
       ``(ii) decrease the percentage of emissions that can be 
     offset through the use of domestic offset credits by the same 
     amount.
       ``(D) International offset credits.--Notwithstanding 
     subparagraph (A), to demonstrate compliance prior to calendar 
     year 2018, a covered entity may use 1 international offset 
     credit in lieu of an emission allowance up to the amount 
     permitted under this paragraph.
       ``(E) President's recommendation.--The President may make a 
     recommendation to Congress as to whether the number 2 billion 
     specified in subparagraphs (A) and (B) should be increased or 
     decreased.
       ``(2) Term offsett credits.--
       ``(A) In general.--Covered entities may, in accordance with 
     this paragraph, use non-expired term offset credits instead 
     of domestic offset credits for purposes of temporarily 
     demonstrating compliance with this section.
       ``(B) Amount.--The combined quantity of term offset credits 
     and domestic offset credits used by a covered entity to 
     demonstrate compliance for its emissions or attributable 
     greenhouse gas emissions in any given year shall not exceed 
     the quantity of domestic offset credits that a covered entity 
     is entitled to use for that year to demonstrate compliance in 
     accordance with paragraph (1).
       ``(C) Expiration.--A term offset credit shall expire in the 
     year after its term ends. The term of a term offset credit 
     shall be calculated by adding to the year of issuance the 
     number of years equal to the length of the crediting period 
     for the practice or project for which the term offset credit 
     was issued, but in no case shall be later than the date 5 
     years from the date of issuance.
       ``(D) Demonstrating compliance upon expiration of term 
     offset credit.--With respect to the emissions for which a 
     covered entity is using term offset credits to demonstrate 
     compliance temporarily with this

[[Page 16596]]

     section, the owner or operator of a covered entity shall not 
     be considered to be in compliance with the prohibition in 
     subsection (a) unless, as of 12:01 a.m. on April 1 (or a 
     later date established by the Administrator under subsection 
     (j)) of the calendar year in which a term offset credit 
     expires, the owner or operator holds--
       ``(i) for purposes of finally demonstrating compliance, an 
     allowance or a domestic offset credit; or
       ``(ii) for purposes of temporarily demonstrating 
     compliance, a non-expired term offset credit.

     Domestic offset credits used for purposes of finally 
     demonstrating compliance under this subparagraph shall not be 
     subject to the percentage limitations in subparagraph (B).
       ``(E) Financial assurance.--A covered entity may not use a 
     term offset credit to demonstrate compliance temporarily 
     unless it simultaneously provides to the Administrator 
     financial assurance that, at the end of the term offset 
     credit's crediting term, the covered entity will have 
     sufficient resources to obtain the quantity of allowances or 
     credits necessary to demonstrate final compliance. The 
     Administrator shall issue regulations establishing 
     requirements for such financial assurance, which shall take 
     into account the increased risk associated with longer 
     crediting terms. These regulations shall take into account 
     the total number of tons of carbon dioxide equivalent of 
     greenhouse gas emissions for which a covered entity is 
     demonstrating compliance temporarily, and may set a limit on 
     this amount. In the event that a covered entity that used 
     term offset credits to demonstrate compliance temporarily 
     fails to meet the requirements of subparagraph (D) at the end 
     of the term offset credits' crediting term, if the financial 
     assurance mechanism fails to provide to the Administrator the 
     number of allowances or offset credits for which the 
     crediting term has expired, then the Administrator shall 
     retire that number of allowances with the vintage year 2 
     years after the year in which the term offset credit expires 
     in the same amount. Allowances so retired shall not be 
     counted as emission allowances established for that calendar 
     year under section 721(a).
       ``(3) International emission allowances.--To demonstrate 
     compliance, a covered entity may hold an international 
     emission allowance in lieu of an emission allowance, except 
     as modified under section 728(d).
       ``(4) Compensatory allowances.--To demonstrate compliance, 
     a covered entity may hold a compensatory allowance obtained 
     under section 721(f) in lieu of an emission allowance.
       ``(e) Retirement of Allowances and Credits.--As soon as 
     practicable after a deadline established for covered entities 
     to demonstrate compliance with this title, the Administrator 
     shall retire the quantity of allowances or credits required 
     to be held under this title.
       ``(f) Alternative Metrics.--For categories of covered 
     entities described in subparagraph (B), (C), (D), (G), (H), 
     or (I) of section 700(13), the Administrator may, by rule, 
     establish an applicability threshold for inclusion under 
     those subparagraphs using an alternative metric and level, 
     provided that such metric and level are easier to administer 
     and cover the same size and type of sources as the threshold 
     defined in such subparagraphs.
       ``(g) Threshold Review.--For each category of covered 
     entities described in subparagraph (B), (C), (D), (G), (H), 
     or (I) of section 700(13), the Administrator shall, in 2020 
     and once every 8 years thereafter, review the carbon dioxide 
     equivalent emission threshold that is used to define covered 
     entities in such category. After consideration of--
       ``(1) emissions from covered entities in such category, and 
     from other entities of the same type that emit less than the 
     threshold amount for the category (including emission sources 
     that commence operation after the date of enactment of this 
     title that are not covered entities); and
       ``(2) whether greater greenhouse gas emission reductions 
     can be cost-effectively achieved by lowering the applicable 
     threshold,

     the Administrator may by rule lower such threshold to not 
     less than 10,000 tons of carbon dioxide equivalent emissions. 
     In determining the cost effectiveness of potential reductions 
     from lowering the threshold for covered entities, the 
     Administrator shall consider alternative regulatory 
     greenhouse gas programs, including setting standards under 
     other titles of this Act.
       ``(h) Designated Representatives.--The regulations 
     promulgated under section 721(h) shall require that each 
     covered entity, and each entity holding allowances or offset 
     credits or receiving allowances or offset credits from the 
     Administrator under this title, submit to the Administrator a 
     certificate of representation designating a designated 
     representative.
       ``(i) Education and Outreach.--
       ``(1) In general.--The Administrator shall establish and 
     carry out a program of education and outreach to assist 
     covered entities, especially entities having little 
     experience with environmental regulatory requirements similar 
     or comparable to those under this title, in preparing to meet 
     the compliance obligations of this title. Such program shall 
     include education with respect to using markets to 
     effectively achieve such compliance.
       ``(2) Failure to receive information.--A failure to receive 
     information or assistance under this subsection may not be 
     used as a defense against an allegation of any violation of 
     this title.
       ``(j) Adjustment of Deadline.--The Administrator may, by 
     rule, establish a deadline for demonstrating compliance, for 
     a calendar year, later than the date provided in subsection 
     (a), as necessary to ensure the availability of emissions 
     data, but in no event shall the deadline be later than June 
     1.
       ``(k) Notice Requirement for Covered Entities Receiving 
     Natural Gas From Natural Gas Local Distribution Companies.--
     The owner or operator of a covered entity that takes delivery 
     of natural gas from a natural gas local distribution company 
     shall, not later than September 1 of each calendar year, 
     notify such natural gas local distribution company in writing 
     that such entity will qualify as a covered entity under this 
     title for that calendar year.
       ``(l) Compliance Obligation.--For purposes of this title, 
     the year of a compliance obligation is the year in which 
     compliance is determined, not the year in which the 
     greenhouse gas emissions occur or the covered entity has 
     attributable greenhouse gas emissions.

     ``SEC. 723. PENALTY FOR NONCOMPLIANCE.

       ``(a) Enforcement.--A violation of any prohibition of, 
     requirement of, or regulation promulgated pursuant to this 
     title shall be a violation of this Act. It shall be a 
     violation of this Act for a covered entity to emit greenhouse 
     gases and have attributable greenhouse gas emissions, in 
     combination, in excess of its allowable emissions level as 
     provided in section 722(a). Each ton of carbon dioxide 
     equivalent for which a covered entity fails to demonstrate 
     compliance under section 722 shall be a separate violation. 
     In the event that a covered entity fails to demonstrates 
     compliance at the expiration of a term offset credit's 
     crediting term as required by section 722(d)(2)(D), the year 
     of the violation shall be the year in which the term offset 
     credit expires.
       ``(b) Excess Emissions Penalty.--
       ``(1) In general.--The owner or operator of any covered 
     entity that fails for any year to comply, on the deadline 
     described in section 722(a), (d)(2) or (j), shall be liable 
     for payment to the Administrator of an excess emissions 
     penalty in the amount described in paragraph (2).
       ``(2) Amount.--The amount of an excess emissions penalty 
     required to be paid under paragraph (1) shall be equal to the 
     product obtained by multiplying--
       ``(A) the tons of carbon dioxide equivalent of greenhouse 
     gas emissions or attributable greenhouse gas emissions for 
     which the owner or operator of a covered entity failed to 
     demonstrate compliance under section 722 on the deadline; by
       ``(B) twice the auction clearing price for the earliest 
     vintage year emission allowances in the last auction carried 
     out pursuant to section 791 before such deadline.
       ``(3) Timing.--An excess emissions penalty required under 
     this subsection shall be immediately due and payable to the 
     Administrator, without demand, in accordance with regulations 
     promulgated by the Administrator, which shall be issued not 
     later than 2 years after the date of enactment of this title.
       ``(4) No effect on liability.--An excess emissions penalty 
     due and payable by the owners or operators of a covered 
     entity under this subsection shall not diminish the liability 
     of the owners or operators for any fine, penalty, or 
     assessment against the owners or operators for the same 
     violation under any other provision of this Act or any other 
     law.
       ``(c) Excess Emissions Allowances.--The owner or operator 
     of a covered entity that fails for any year to comply on the 
     deadline described in section 722(a), (d)(2) or (j) shall be 
     liable to offset the covered entity's excess combination of 
     greenhouse gases emitted and attributable greenhouse gas 
     emissions by an equal quantity of emission allowances during 
     the following calendar year, or such longer period as the 
     Administrator may prescribe. During the year in which the 
     covered entity failed to comply, or any year thereafter, the 
     Administrator may deduct the emission allowances required 
     under this subsection to offset the covered entity's excess 
     greenhouse gas emissions or attributable greenhouse gas 
     emissions.

     ``SEC. 724. TRADING.

       ``(a) Permitted Transactions.--Except as otherwise provided 
     in this title, the lawful holder of an emission allowance, 
     compensatory allowance, or offset credit may, without 
     restriction, sell, exchange, transfer, hold for compliance in 
     accordance with section 722, or request that the 
     Administrator retire the emission allowance, compensatory 
     allowance, or offset credit.
       ``(b) No Restriction on Transactions.--The privilege of 
     purchasing, holding, selling, exchanging, transferring, and 
     requesting retirement of emission allowances, compensatory 
     allowances, or offset credits shall not be restricted to the 
     owners and operators of covered entities, except as otherwise 
     provided in this title.
       ``(c) Effectiveness of Allowance Transfers.--No transfer of 
     an allowance, offset

[[Page 16597]]

     credit or term offset credit shall be effective for purposes 
     of this title until a certification of the transfer, signed 
     by the designated representative of the transferor, is 
     received and recorded by the Administrator in accordance with 
     regulations promulgated under section 721(h).
       ``(d) Allowance Tracking System.--The regulations 
     promulgated under section 721(h) shall include a system for 
     issuing, recording, holding, and tracking allowances, offset 
     credits, and term offset credits that shall specify all 
     necessary procedures and requirements for an orderly and 
     competitive functioning of the allowance and offset credit 
     markets. Such regulations shall provide for appropriate 
     publication of the information in the system on the Internet.

     ``SEC. 725. BANKING AND BORROWING.

       ``(a) Banking.--An emission allowance may be used to comply 
     with section 722 or section 723 for emissions in--
       ``(1) the vintage year for the allowance; or
       ``(2) any calendar year subsequent to the vintage year for 
     the allowance.
       ``(b) Expiration.--
       ``(1) Regulations.--The Administrator may establish by 
     regulation criteria and procedures for determining whether, 
     and for implementing a determination that, the expiration of 
     an allowance offset credit, or term offset credit, 
     established or issued under the American Clean Energy and 
     Security Act of 2009 or the amendments made thereby or 
     expiration of the ability to use an international emission 
     allowance to comply with section 722, is necessary to ensure 
     the authenticity and integrity of allowances, offset credits, 
     or term offset credits or the allowance tracking system.
       ``(2) General rule.--Allowance, offset credit, or term 
     offset credit, established or issued under the American Clean 
     Energy and Security Act of 2009 or the amendments made 
     thereby, shall not expire unless--
       ``(A) it is retired by the Administrator pursuant to this 
     title; or
       ``(B) it is determined to expire or to have expired by a 
     specific date by the Administrator in accordance with 
     regulations promulgated under paragraph (1).
       ``(3) International emission allowances.--The ability to 
     use an international emission allowance to comply with 
     section 722 shall not expire unless--
       ``(A) the allowance is retired by the Administrator 
     pursuant to this title; or
       ``(B) the ability to use such allowance to meet such 
     compliance obligation requirements is determined to expire or 
     to have expired by a specific date by the Administrator in 
     accordance with regulations promulgated under paragraph (1).
       ``(c) Borrowing Future Vintage Year Allowances.--
       ``(1) Borrowing without interest.--In addition to the uses 
     described in subsection (a), an emission allowance may be 
     used to demonstrate compliance under section 722 or comply 
     with section 723 for emissions, production, importation, 
     manufacture, or deliveries in the calendar year immediately 
     preceding the vintage year for the allowance.
       ``(2) Borrowing with interest.--
       ``(A) In general.--A covered entity may demonstrate 
     compliance under section 722 in a specific calendar year for 
     up to 15 percent of its emissions by holding emission 
     allowances with a vintage year 1 to 5 years later than that 
     calendar year.
       ``(B) Limitations.--An emission allowance borrowed pursuant 
     to this paragraph shall be an emission allowance that is 
     established by the Administrator for a specific future 
     calendar year under section 721(a) and that is held by the 
     borrower.
       ``(C) Prepayment of interest.--For each emission allowance 
     that an owner or operator of a covered entity borrows 
     pursuant to this paragraph, such owner or operator shall, at 
     the time it borrows the allowance, hold for retirement by the 
     Administrator, and the Administrator shall retire, a quantity 
     of emission allowances that is equal to the product obtained 
     by multiplying--
       ``(i) 0.08; by
       ``(ii) the number of years between the calendar year in 
     which the allowance is being used to satisfy a compliance 
     obligation and the vintage year of the allowance.

     ``SEC. 726. STRATEGIC RESERVE.

       ``(a) Strategic Reserve Auctions.--
       ``(1) In general.--Once each quarter of each calendar year 
     for which allowances are established under section 721(a), 
     the Administrator shall auction strategic reserve allowances.
       ``(2) Restriction to covered entities.--In each auction 
     conducted under paragraph (1), only covered entities that the 
     Administrator expects will be required to comply with section 
     722 in the following calendar year shall be eligible to make 
     purchases.
       ``(b) Pool of Emission Allowances for Strategic Reserve 
     Auctions.--
       ``(1) Filling the strategic reserve initially.--
       ``(A) In general.--The Administrator shall, not later than 
     2 years after the date of enactment of this title, establish 
     a strategic reserve account, and shall place in that account 
     an amount of emission allowances established under section 
     721(a) for each calendar year from 2012 through 2050 in the 
     amounts specified in subparagraph (B) of this paragraph.
       ``(B) Amount.--The amount referred to in subparagraph (A) 
     shall be--
       ``(i) for each of calendar years 2012 through 2019, 1 
     percent of the quantity of emission allowances established 
     for that year pursuant to section 721(e)(1);
       ``(ii) for each of calendar years 2020 through 2029, 2 
     percent of the quantity of emission allowances established 
     for that year pursuant to section 721(e)(1); and
       ``(iii) for each of calendar years 2030 through 2050, 3 
     percent of the quantity of emission allowances established 
     for that year pursuant to section 721(e)(1).
       ``(C) Effect on other provisions.--Any provision in this 
     title (except for subparagraph (B) of this paragraph) that 
     refers to a quantity or percentage of the emission allowances 
     established for a calendar year under section 721(a) shall be 
     considered to refer to the amount of emission allowances as 
     determined pursuant to section 721(e), less any emission 
     allowances established for that year that are placed in the 
     strategic reserve account under this paragraph.
       ``(2) Supplementing the strategic reserve.--The 
     Administrator shall also--
       ``(A) at the end of each calendar year, transfer to the 
     strategic reserve account each emission allowance that was 
     offered for sale but not sold at any auction conducted under 
     section 791; and
       ``(B) deposit emission allowances established under 
     subsection (g) from auction proceeds into the strategic 
     reserve, to the extent necessary to maintain the reserve at 
     its original size.
       ``(c) Minimum Strategic Reserve Auction Price.--
       ``(1) In general.--At each strategic reserve auction, the 
     Administrator shall offer emission allowances for sale 
     beginning at a minimum price per emission allowance, which 
     shall be known as the `minimum strategic reserve auction 
     price'.
       ``(2) Initial minimum strategic reserve auction prices.--
     The minimum strategic reserve auction price shall be $28 (in 
     constant 2009 dollars) for the strategic reserve auctions 
     held in 2012. For the strategic reserve auctions held in 2013 
     and 2014, the minimum strategic reserve auction price shall 
     be the strategic reserve auction price for the previous year 
     increased by 5 percent plus the rate of inflation (as 
     measured by the Consumer Price Index for All Urban 
     Consumers).
       ``(3) Minimum strategic reserve auction price in subsequent 
     years.--For each strategic reserve auction held in 2015 and 
     each year thereafter, the minimum strategic reserve auction 
     price shall be 60 percent above a rolling 36-month average of 
     the daily closing price for that year's emission allowance 
     vintage as reported on registered carbon trading facilities, 
     calculated using constant dollars.
       ``(d) Quantity of Emission Allowances Released From the 
     Strategic Reserve.--
       ``(1) Initial limits.--For each of calendar years 2012 
     through 2016, the annual limit on the number of emission 
     allowances from the strategic reserve account that may be 
     auctioned is an amount equal to 5 percent of the emission 
     allowances established for that calendar year under section 
     721(a). This limit does not apply to international offset 
     credits sold on consignment pursuant to subsection (h).
       ``(2) Limits in subsequent years.--For calendar year 2017 
     and each year thereafter, the annual limit on the number of 
     emission allowances from the strategic reserve account that 
     may be auctioned is an amount equal to 10 percent of the 
     emission allowances established for that calendar year under 
     section 721(a). This limit does not apply to international 
     offset credits sold on consignment pursuant to subsection 
     (h).
       ``(3) Allocation of limitation.--One-fourth of each year's 
     annual strategic reserve auction limit under this subsection 
     shall be made available for auction in each quarter. Any 
     allowances from the strategic reserve account that are made 
     available for sale in a quarterly auction and not sold shall 
     be rolled over and added to the quantity available for sale 
     in the following quarter, except that allowances not sold at 
     auction in the fourth quarter of a year shall not be rolled 
     over to the following calendar year's auctions, but shall be 
     returned to the strategic reserve account.
       ``(e) Purchase Limit.--
       ``(1) In general.--Except as provided in paragraph (2) or 
     (3), the annual number of emission allowances that a covered 
     entity may purchase at the strategic reserve auctions in each 
     calendar year shall not exceed 20 percent of the covered 
     entity's combined greenhouse gas emissions and attributable 
     greenhouse gas emissions during the most recent year for 
     which allowances or offset credits were retired under section 
     722.
       ``(2) 2012 limit.--For calendar year 2012, the maximum 
     aggregate number of emission allowances that a covered entity 
     may purchase from that year's strategic reserve auctions 
     shall be 20 percent of the covered entity's combined 
     greenhouse gas emissions and attributable greenhouse gas 
     emissions that the covered entity reported to the registry 
     established under section 713 for 2011 and that would be 
     subject to section 722(a) if occurring in later calendar 
     years.
       ``(3) New entrants.--The Administrator shall, by 
     regulation, establish a separate

[[Page 16598]]

     purchase limit applicable to entities that expect to become a 
     covered entity in the year of the auction, permitting them to 
     purchase emission allowances at the strategic reserve 
     auctions in their first calendar year of operation in an 
     amount of at least 20 percent of their expected combined 
     greenhouse gas emissions and attributable greenhouse gas 
     emissions for that year.
       ``(f) Delegation or Contract.--Pursuant to regulations 
     under this section, the Administrator may, by delegation or 
     contract, provide for the conduct of strategic reserve 
     auctions under the Administrator's supervision by other 
     departments or agencies of the Federal Government or by 
     nongovernmental agencies, groups, or organizations.
       ``(g) Use of Auction Proceeds.--
       ``(1) Deposit in strategic reserve fund.--The proceeds from 
     strategic reserve auctions shall be placed in the Strategic 
     Reserve Fund established under section 793(1), and shall be 
     available without further appropriation or fiscal year 
     limitation for the purposes described in this subsection.
       ``(2) International offset credits for reduced 
     deforestation.--The Administrator shall use the proceeds from 
     each strategic reserve auction to purchase international 
     offset credits issued for reduced deforestation activities 
     pursuant to section 743(e). The Administrator shall retire 
     those international offset credits and establish a number of 
     emission allowances equal to 80 percent of the number of 
     international offset credits so retired. Emission allowances 
     established under this paragraph shall be in addition to 
     those established under section 721(a).
       ``(3) Emission allowances.--The Administrator shall deposit 
     emission allowances established under paragraph (2) in the 
     strategic reserve, except that, with respect to any such 
     emission allowances in excess of the amount necessary to fill 
     the strategic reserve to its original size, the Administrator 
     shall--
       ``(A) except as provided in subparagraph (B), assign a 
     vintage year to the emission allowance, which shall be no 
     earlier than the year in which the allowance is established 
     under paragraph (2), and shall treat such allowances as ones 
     that are not designated for distribution or auction for 
     purposes of section 782(q) and (r); and
       ``(B) to the extent any such allowances cannot be assigned 
     a vintage year because of the limitation in paragraph (4), 
     retire the allowances.
       ``(4) Limitation.--In no case may the Administrator assign 
     under paragraph (3)(A) more emission allowances to a vintage 
     year than the number of emission allowances from that vintage 
     year that were placed in the strategic reserve account under 
     subsection (b)(1).
       ``(h) Availability of International Offset Credits for 
     Auction.--
       ``(1) In general.--The regulations promulgated under 
     section 721(h) shall allow any entity holding international 
     offset credits from reduced deforestation issued under 
     section 743(e) to request that the Administrator include such 
     offset credits in an upcoming strategic reserve auction. The 
     regulations shall provide that--
       ``(A) such international offset credits will be used to 
     fill bid orders only after the supply of strategic reserve 
     allowances available for sale at that auction has been 
     depleted;
       ``(B) international offset credits may be sold at a 
     strategic reserve auction under this subsection only if the 
     Administrator determines that it is highly likely that 
     covered entities will, to cover emissions occurring in the 
     year the auction is held, use offset credits to demonstrate 
     compliance under section 722 for emissions equal to or 
     greater than 80 percent of 2 billion tons of carbon dioxide 
     equivalent;
       ``(C) upon sale of such international offset credits, the 
     Administrator shall retire those international offset 
     credits, and establish and provide to the purchasers a number 
     of emission allowances equal to 80 percent of the number of 
     international offset credits so retired, which allowances 
     shall be in addition to those established under section 
     721(a); and
       ``(D) for international offset credits sold pursuant to 
     this subsection, the proceeds for the entity that offered the 
     international offset credits for sale shall be the lesser 
     of--
       ``(i) the average daily closing price for international 
     offset credits sold on registered exchanges (or if such price 
     is unavailable, the average price as determined by the 
     Administrator) during the six months prior to the strategic 
     reserve auction at which they were auctioned, with the 
     remaining funds collected upon the sale of the international 
     offset credits deposited in the Treasury; and
       ``(ii) the amount received for the international offset 
     credits at the auction.
       ``(2) Proceeds.--For international offset credits sold 
     pursuant to this subsection, notwithstanding section 3302 of 
     title 31, United States Code, or any other provision of law, 
     within 90 days of receipt, the United States shall transfer 
     the proceeds from the auction, as defined in paragraph 
     (1)(D), to the entity that offered the international offset 
     credits for sale. No funds transferred from a purchaser to a 
     seller of international offset credits under this paragraph 
     shall be held by any officer or employee of the United States 
     or treated for any purpose as public monies.
       ``(3) Pricing.--When the Administrator acts under this 
     subsection as the agent of an entity in possession of 
     international offset credits, the Administrator is not 
     obligated to obtain the highest price possible for the 
     international offset credits, and instead shall auction such 
     international offset credits in the same manner and pursuant 
     to the same rules (except as modified in paragraph (1)) as 
     set forth for auctioning strategic reserve allowances. 
     Entities requesting that such international offset credits be 
     offered for sale at a strategic reserve auction may not set a 
     minimum reserve price for their international offset credits 
     that is different than the minimum strategic reserve auction 
     price set pursuant to subsection (c).
       ``(i) Initial Regulations.--Not later than 24 months after 
     the date of enactment of this title, the Administrator shall 
     promulgate regulations, in consultation with other 
     appropriate agencies, governing the auction of allowances 
     under this section. Such regulations shall include the 
     following requirements:
       ``(1) Frequency; first auction.--Auctions shall be held 
     four times per year at regular intervals, with the first 
     auction to be held no later than March 31, 2012.
       ``(2) Auction format.--Auctions shall follow a single-
     round, sealed-bid, uniform price format.
       ``(3) Participation; financial assurance.--Auctions shall 
     be open to any covered entity eligible to purchase emission 
     allowances at the auction under subsection (a)(2), except 
     that the Administrator may establish financial assurance 
     requirements to ensure that auction participants can and will 
     perform on their bids.
       ``(4) Disclosure of beneficial ownership.--Each bidder in 
     an auction shall be required to disclose the person or entity 
     sponsoring or benefitting from the bidder's participation in 
     the auction if such person or entity is, in whole or in part, 
     other than the bidder.
       ``(5) Purchase limits.--No person may, directly or in 
     concert with another participant, purchase more than 20 
     percent of the allowances offered for sale at any quarterly 
     auction.
       ``(6) Publication of information.--After the auction, the 
     Administrator shall, in a timely fashion, publish the 
     identities of winning bidders, the quantity of allowances 
     obtained by each winning bidder, and the auction clearing 
     price.
       ``(7) Other requirements.--The Administrator may include in 
     the regulations such other requirements or provisions as the 
     Administrator, in consultation with other agencies as 
     appropriate, considers appropriate to promote effective, 
     efficient, transparent, and fair administration of auctions 
     under this section.
       ``(j) Revision of Regulations.--The Administrator may, at 
     any time, in consultation with other agencies as appropriate, 
     revise the initial regulations promulgated under subsection 
     (i). Such revised regulations need not meet the requirements 
     identified in subsection (i) by promulgating new regulations 
     if the Administrator determines that an alternative auction 
     design would be more effective, taking into account factors 
     including costs of administration, transparency, fairness, 
     and risks of collusion or manipulation. In determining 
     whether and how to revise the initial regulations under this 
     subsection, the Administrator shall not consider maximization 
     of revenues to the Federal Government.

     ``SEC. 727. PERMITS.

       ``(a) Permit Program.--For stationary sources subject to 
     title V of this Act that are covered entities, the provisions 
     of this title shall be implemented by permits issued to such 
     covered entities (and enforced) in accordance with the 
     provisions of title V, as modified by this title. Any such 
     permit issued by the Administrator, or by a State or Indian 
     tribe with an approved permit program, shall require the 
     owner or operator of a covered entity to hold allowances or 
     offset credits at least equal to the total annual amount of 
     carbon dioxide equivalents for its combined emissions and 
     attributable greenhouse gas emissions to which section 722 
     applies. No such permit shall be issued that is inconsistent 
     with the requirements of this title, and title V as 
     applicable. Nothing in this section regarding compliance 
     plans or in title V shall be construed as affecting 
     allowances or offset credits. Submission of a statement by 
     the owner or operator, or the designated representative of 
     the owners and operators, of a covered entity that the owners 
     and operators will hold allowances or offset credits for the 
     entity's combined emissions and attributable greenhouse gas 
     emissions to which section 722 applies shall be deemed to 
     meet the proposed and approved planning requirements of title 
     V. Recordation by the Administrator of transfers of 
     allowances and offset credits shall amend automatically all 
     applicable proposed or approved permit applications, 
     compliance plans, and permits.
       ``(b) Multiple Owners.--No permit shall be issued under 
     this section and no allowances or offset credits shall be 
     disbursed under this title to a covered entity or any other 
     person until the designated representative of the owners or 
     operators has filed a certificate of representation with 
     regard to

[[Page 16599]]

     matters under this title, including the holding and 
     distribution of emission allowances and the proceeds of 
     transactions involving emission allowances. Where there are 
     multiple holders of a legal or equitable title to, or a 
     leasehold interest in, such a covered entity or other entity 
     or where a utility or industrial customer purchases power 
     under a long-term power purchase contract from an independent 
     power production facility that is a covered entity, the 
     certificate shall state--
       ``(1) that emission allowances and the proceeds of 
     transactions involving emission allowances will be deemed to 
     be held or distributed in proportion to each holder's legal, 
     equitable, leasehold, or contractual reservation or 
     entitlement; or
       ``(2) if such multiple holders have expressly provided for 
     a different distribution of emission allowances by contract, 
     that emission allowances and the proceeds of transactions 
     involving emission allowances will be deemed to be held or 
     distributed in accordance with the contract.

     A passive lessor, or a person who has an equitable interest 
     through such lessor, whose rental payments are not based, 
     either directly or indirectly, upon the revenues or income 
     from the covered entity or other entity shall not be deemed 
     to be a holder of a legal, equitable, leasehold, or 
     contractual interest for the purpose of holding or 
     distributing emission allowances as provided in this 
     subsection, during either the term of such leasehold or 
     thereafter, unless expressly provided for in the leasehold 
     agreement. Except as otherwise provided in this subsection, 
     where all legal or equitable title to or interest in a 
     covered entity, or other entity, is held by a single person, 
     the certificate shall state that all emission allowances 
     received by the entity are deemed to be held for that person.
       ``(c) Prohibition.--It shall be unlawful for any person to 
     operate any stationary source subject to the requirements of 
     this section except in compliance with the terms and 
     requirements of a permit issued by the Administrator or a 
     State or Indian tribe with an approved permit program in 
     accordance with this section. For purposes of this 
     subsection, compliance, as provided in section 504(f), with a 
     permit issued under title V which complies with this title 
     for covered entities shall be deemed compliance with this 
     subsection as well as section 502(a).
       ``(d) Reliability.--Nothing in this section or title V 
     shall be construed as requiring termination of operations of 
     a stationary source that is a covered entity for failure to 
     have an approved permit, or compliance plan, that is 
     consistent with the requirements in the second and fifth 
     sentences of subsection (a) concerning the holding of 
     allowances or offset credits, except that any such covered 
     entity may be subject to the applicable enforcement provision 
     of section 113.
       ``(e) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations to implement this section. To provide 
     for permits required under this section, each State in which 
     one or more stationary sources that are covered entities are 
     located shall submit, in accordance with this section and 
     title V, revised permit programs for approval.

     ``SEC. 728. INTERNATIONAL EMISSION ALLOWANCES.

       ``(a) Qualifying Programs.--The Administrator, in 
     consultation with the Secretary of State, may by rule 
     designate an international climate change program as a 
     qualifying international program if--
       ``(1) the program is run by a national or supranational 
     foreign government, and imposes a mandatory absolute tonnage 
     limit on greenhouse gas emissions from 1 or more foreign 
     countries, or from 1 or more economic sectors in such a 
     country or countries; and
       ``(2) the program is at least as stringent as the program 
     established by this title, including provisions to ensure at 
     least comparable monitoring, compliance, enforcement, quality 
     of offsets, and restrictions on the use of offsets.
       ``(b) Disqualified Allowances.--An international emission 
     allowance may not be held under section 722(d)(2) if it is in 
     the nature of an offset instrument or allowance awarded based 
     on the achievement of greenhouse gas emission reductions or 
     avoidance, or greenhouse gas sequestration, that are not 
     subject to the mandatory absolute tonnage limits referred to 
     in subsection (a)(1).
       ``(c) Retirement.--
       ``(1) Entity certification.--The owner or operator of an 
     entity that holds an international emission allowance under 
     section 722(d)(2) shall certify to the Administrator that 
     such international emission allowance has not previously been 
     used to comply with any foreign, international, or domestic 
     greenhouse gas regulatory program.
       ``(2) Retirement.--
       ``(A) Foreign and international regulatory entities.--The 
     Administrator, in consultation with the Secretary of State, 
     shall seek, by whatever means appropriate, including 
     agreements and technical cooperation on allowance tracking, 
     to ensure that any relevant foreign, international, and 
     domestic regulatory entities--
       ``(i) are notified of the use, for purposes of compliance 
     with this title, of any international emission allowance; and
       ``(ii) provide for the disqualification of such 
     international emission allowance for any subsequent use under 
     the relevant foreign, international, or domestic greenhouse 
     gas regulatory program, regardless of whether such use is a 
     sale, exchange, or submission to satisfy a compliance 
     obligation.
       ``(B) Disqualification from further use.--The Administrator 
     shall ensure that, once an international emission allowance 
     has been disqualified or otherwise used for purposes of 
     compliance with this title, such allowance shall be 
     disqualified from any further use under this title.
       ``(d) Use Limitations.--The Administrator may, by rule, 
     apply a limit to the percentage of the combined greenhouse 
     gas emissions and attributable greenhouse gas emissions of a 
     covered entity with respect to which compliance may be 
     demonstrated by holding international emission allowances 
     under section 722(d)(2), consistent with the purposes of the 
     Safe Climate Act.

                           ``PART D--OFFSETS

     ``SEC. 731. OFFSETS INTEGRITY ADVISORY BOARD.

       ``(a) Establishment.--Not later than 30 days after the date 
     of enactment of this title, the Administrator shall establish 
     an independent Offsets Integrity Advisory Board. The Advisory 
     Board shall make recommendations to the Administrator for use 
     in promulgating and revising regulations under this part and 
     part E, and for ensuring the overall environmental integrity 
     of the programs established pursuant to those regulations.
       ``(b) Membership.--The Advisory Board shall be comprised of 
     at least nine members. Each member shall be qualified by 
     education, training, and experience to evaluate scientific 
     and technical information on matters referred to the Board 
     under this section. The Administrator shall appoint Advisory 
     Board members, including a chair and vice-chair of the 
     Advisory Board. Terms shall be 3 years in length, except for 
     initial terms, which may be up to 5 years in length to allow 
     staggering. Members may be reappointed only once for an 
     additional 3-year term, and such second term may follow 
     directly after a first term.
       ``(c) Activities.--The Advisory Board established pursuant 
     to subsection (a) shall--
       ``(1) provide recommendations, not later than 90 days after 
     the Advisory Board's establishment and periodically 
     thereafter, to the Administrator regarding offset project 
     types that should be considered for eligibility under section 
     733, taking into consideration relevant scientific and other 
     issues, including--
       ``(A) the availability of a representative data set for use 
     in developing the activity baseline;
       ``(B) the potential for accurate quantification of 
     greenhouse gas reduction, avoidance, or sequestration for an 
     offset project type;
       ``(C) the potential level of scientific and measurement 
     uncertainty associated with an offset project type; and
       ``(D) any beneficial or adverse environmental, public 
     health, welfare, social, economic, or energy effects 
     associated with an offset project type;
       ``(2) make available to the Administrator its advice and 
     comments on offset methodologies that should be considered 
     under regulations promulgated with respect to section 734, 
     including methodologies to address the issues of 
     additionality, activity baselines, quantification methods, 
     leakage, uncertainty, permanence, and environmental 
     integrity;
       ``(3) make available to the Administrator, and other 
     relevant Federal agencies, its advice and comments regarding 
     scientific, technical, and methodological issues specific to 
     the issuance of international offset credits under section 
     743;
       ``(4) make available to the Administrator, and other 
     relevant Federal agencies, its advice and comments regarding 
     scientific, technical, and methodological issues associated 
     with the implementation of part E;
       ``(5) make available to the Administrator its advice and 
     comments on areas in which further knowledge is required to 
     appraise the adequacy of existing, revised, or proposed 
     methodologies for use under this part and part E, and 
     describe the research efforts necessary to provide the 
     required information; and
       ``(6) make available to the Administrator its advice and 
     comments on other ways to improve or safeguard the 
     environmental integrity of programs established under this 
     part and part E.
       ``(d) Scientific Review of Offset and Deforestation 
     Reduction Programs.--Not later than January 1, 2017, and at 
     five-year intervals thereafter, the Advisory Board shall 
     submit to the Administrator and make available to the public 
     an analysis of relevant scientific and technical information 
     related to this part and part E. The Advisory Board shall 
     review approved and potential methodologies, scientific 
     studies, offset project monitoring, offset project 
     verification reports, and audits related to this part and 
     part E, and evaluate the net emissions effects of implemented 
     offset projects. The Advisory Board shall recommend changes 
     to offset methodologies, protocols, or project types, or to 
     the overall offset program under this part, to ensure

[[Page 16600]]

     that offset credits issued by the Administrator do not 
     compromise the integrity of the annual emission reductions 
     established under section 703, and to avoid or minimize 
     adverse effects to human health or the environment.

     ``SEC. 732. ESTABLISHMENT OF OFFSETS PROGRAM.

       ``(a) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator, in 
     consultation with appropriate Federal agencies and taking 
     into consideration the recommendations of the Advisory Board, 
     shall promulgate regulations establishing a program for the 
     issuance of offset credits in accordance with the 
     requirements of this part. The Administrator shall 
     periodically revise these regulations as necessary to meet 
     the requirements of this part.
       ``(b) Requirements.--The regulations described in 
     subsection (a) shall--
       ``(1) authorize the issuance of offset credits with respect 
     to qualifying offset projects that result in reductions or 
     avoidance of greenhouse gas emissions, or sequestration of 
     greenhouse gases;
       ``(2) ensure that such offset credits represent verifiable 
     and additional greenhouse gas emission reductions or 
     avoidance, or increases in sequestration;
       ``(3) ensure that offset credits issued for sequestration 
     offset projects are only issued for greenhouse gas reductions 
     that are permanent;
       ``(4) provide for the implementation of the requirements of 
     this part; and
       ``(5) include as reductions in greenhouse gases reductions 
     achieved through the destruction of methane and its 
     conversion to carbon dioxide, and reductions achieved through 
     destruction of chlorofluorocarbons or other ozone depleting 
     substances, if permitted by the Administrator under section 
     619(b)(9) and subject to the conditions specified in section 
     619(b)(9), based on the carbon dioxide equivalent value of 
     the substance destroyed.
       ``(c) Coordination to Minimize Negative Effects.--In 
     promulgating and implementing regulations under this part, 
     the Administrator 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 part.
       ``(d) Offset Registry.--The Administrator shall establish 
     within the allowance tracking system established under 
     section 724(d) an Offset Registry for qualifying offset 
     projects and offset credits issued with respect thereto under 
     this part.
       ``(e) Legal Status of Offset Credit.--An offset credit does 
     not constitute a property right.
       ``(f) Fees.--The Administrator shall assess fees payable by 
     offset project developers in an amount necessary to cover the 
     administrative costs to the Environmental Protection Agency 
     of carrying out the activities under this part. Amounts 
     collected for such fees shall be available to the 
     Administrator for carrying out the activities under this part 
     to the extent provided in advance in appropriations Acts.

     ``SEC. 733. ELIGIBLE PROJECT TYPES.

       ``(a) List of Eligible Project Types.--
       ``(1) In general.--As part of the regulations promulgated 
     under section 732(a), the Administrator shall establish, and 
     may periodically revise, a list of types of projects eligible 
     to generate offset credits, including international offset 
     credits, under this part.
       ``(2) Advisory board recommendations.--In determining the 
     eligibility of project types, the Administrator shall take 
     into consideration the recommendations of the Advisory Board. 
     If a list established under this section differs from the 
     recommendations of the Advisory Board, the regulations 
     promulgated under section 732(a) shall include a 
     justification for the discrepancy.
       ``(3) Initial determination.--The Administrator shall 
     establish the initial eligibility list under paragraph (1) 
     not later than one year after the date of enactment of this 
     title. The Administrator shall add additional project types 
     to the list not later than 2 years after the date of 
     enactment of this title. In determining the initial list, the 
     Administrator shall give priority to consideration of offset 
     project types that are recommended by the Advisory Board and 
     for which there are well developed methodologies that the 
     Administrator determines would meet the criteria of section 
     734, with such modifications as the Administrator deems 
     appropriate. In establishing methodologies pursuant to 
     section 734, the Administrator shall give priority to 
     methodologies for offset project types included on the 
     initial eligibility list.
       ``(b) Modification of List.--The Administrator--
       ``(1) may at any time, by rule, add a project type to the 
     list established under subsection (a) if the Administrator, 
     in consultation with appropriate Federal agencies and taking 
     into consideration the recommendations of the Advisory Board, 
     determines that the project type can generate additional 
     reductions or avoidance of greenhouse gas emissions, or 
     sequestration of greenhouse gases, subject to the 
     requirements of this part;
       ``(2) may at any time, by rule, determine that a project 
     type on the list does not meet the requirements of this part, 
     and remove the project type from the list established under 
     subsection (a), in consultation with appropriate Federal 
     agencies and taking into consideration any recommendations of 
     the Advisory Board; and
       ``(3) shall consider adding to or removing from the list 
     established under subsection (a), at a minimum, project types 
     proposed to the Administrator--
       ``(A) by petition pursuant to subsection (c); or
       ``(B) by the Advisory Board.
       ``(c) Petition Process.--Any person may petition the 
     Administrator to modify the list established under subsection 
     (a) by adding or removing a project type pursuant to 
     subsection (b). Any such petition shall include a showing by 
     the petitioner that there is adequate data to establish that 
     the project type does or does not meet the requirements of 
     this part. Not later than 12 months after receipt of such a 
     petition, the Administrator shall either grant or deny the 
     petition and publish a written explanation of the reasons for 
     the Administrator's decision. The Administrator may not deny 
     a petition under this subsection on the basis of inadequate 
     Environmental Protection Agency resources or time for review.

     ``SEC. 734. REQUIREMENTS FOR OFFSET PROJECTS.

       ``(a) Methodologies.--As part of the regulations 
     promulgated under section 732(a), the Administrator shall 
     establish, for each type of offset project listed as eligible 
     under section 733, the following:
       ``(1) Additionality.--A standardized methodology for 
     determining the additionality of greenhouse gas emission 
     reductions or avoidance, or greenhouse gas sequestration, 
     achieved by an offset project of that type. Such methodology 
     shall ensure, at a minimum, that any greenhouse gas emission 
     reduction or avoidance, or any greenhouse gas sequestration, 
     is considered additional only to the extent that it results 
     from activities that--
       ``(A) are not required by or undertaken to comply with any 
     law, including any regulation or consent order;
       ``(B) were not commenced prior to January 1, 2009, except 
     in the case of--
       ``(i) offset project activities that commenced after 
     January 1, 2001, and were registered as of the date of 
     enactment of this title under an offset program with respect 
     to which the Administrator has made an affirmative 
     determination under section 740(a)(2); or
       ``(ii) activities that are readily reversible, with respect 
     to which the Administrator may set an alternative earlier 
     date under this subparagraph that is not earlier than January 
     1, 2001, where the Administrator determines that setting such 
     an alternative date may produce an environmental benefit by 
     removing an incentive to cease and then reinitiate activities 
     that began prior to January 1, 2009; and
       ``(C) exceed the activity baseline established under 
     paragraph (2).
       ``(2) Activity baselines.--A standardized methodology for 
     establishing activity baselines for offset projects of that 
     type. The Administrator shall set activity baselines to 
     reflect a conservative estimate of business-as-usual 
     performance or practices for the relevant type of activity 
     such that the baseline provides an adequate margin of safety 
     to ensure the environmental integrity of offsets calculated 
     in reference to such baseline.
       ``(3) Quantification methods.--A standardized methodology 
     for determining the extent to which greenhouse gas emission 
     reductions or avoidance, or greenhouse gas sequestration, 
     achieved by an offset project of that type exceed a relevant 
     activity baseline, including protocols for monitoring and 
     accounting for uncertainty.
       ``(4) Leakage.--A standardized methodology for accounting 
     for and mitigating potential leakage, if any, from an offset 
     project of that type, taking uncertainty into account.
       ``(b) Accounting for Reversals.--
       ``(1) In general.--For each type of sequestration project 
     listed under section 733, the Administrator shall establish 
     requirements to account for and address reversals, 
     including--
       ``(A) a requirement to report any reversal with respect to 
     an offset project for which offset credits have been issued 
     under this part;
       ``(B) provisions to require emission allowances to be held 
     in amounts to fully compensate for greenhouse gas emissions 
     attributable to reversals, and to assign responsibility for 
     holding such emission allowances; and
       ``(C) any other provisions the Administrator determines 
     necessary to account for and address reversals.
       ``(2) Mechanisms.--The Administrator shall prescribe 
     mechanisms to ensure that any sequestration with respect to 
     which an offset credit is issued under this part results in a 
     permanent net increase in sequestration, and that full 
     account is taken of any actual or potential reversal of such 
     sequestration, with an adequate margin of safety. The 
     Administrator shall prescribe at least one of the following 
     mechanisms to meet the requirements of this paragraph:
       ``(A) An offsets reserve, pursuant to paragraph (3).

[[Page 16601]]

       ``(B) Insurance that provides for purchase and provision to 
     the Administrator for retirement of an amount of offset 
     credits or emission allowances equal in number to the tons of 
     carbon dioxide equivalents of greenhouse gas emissions 
     released due to reversal.
       ``(C) Another mechanism that the Administrator determines 
     satisfies the requirements of this part.
       ``(3) Offsets reserve.--
       ``(A) In general.--An offsets reserve referred to in 
     paragraph (2)(A) is a program under which, before issuance of 
     offset credits under this part, the Administrator shall 
     subtract and reserve from the quantity to be issued a 
     quantity of offset credits based on the risk of reversal. The 
     Administrator shall--
       ``(i) hold these reserved offset credits in the offsets 
     reserve; and
       ``(ii) register the holding of the reserved offset credits 
     in the Offset Registry established under section 732(d).
       ``(B) Project reversal.--
       ``(i) In general.--If a reversal has occurred with respect 
     to an offset project for which offset credits are reserved 
     under this paragraph, the Administrator shall retire offset 
     credits or emission allowances from the offsets reserve to 
     fully account for the tons of carbon dioxide equivalent that 
     are no longer sequestered.
       ``(ii) Intentional reversals.--If the Administrator 
     determines that a reversal was intentional, the offset 
     project developer for the relevant offset project shall place 
     into the offsets reserve a quantity of offset credits, or 
     combination of offset credits and emission allowances, equal 
     in number to the number of reserve offset credits that were 
     canceled due to the reversal pursuant to clause (i).
       ``(iii) Unintentional reversals.--If the Administrator 
     determines that a reversal was unintentional, the offset 
     project developer for the relevant offset project shall place 
     into the offsets reserve a quantity of offset credits, or 
     combination of offset credits and emission allowances, equal 
     in number to half the number of offset credits that were 
     reserved for that offset project, or half the number of 
     reserve offset credits that were canceled due to the reversal 
     pursuant to clause (i), whichever is less.
       ``(C) Use of reserved offset credits.--Offset credits 
     placed into the offsets reserve under this paragraph may not 
     be used to comply with section 722.
       ``(c) Crediting Periods.--
       ``(1) In general.--For each offset project type, the 
     Administrator shall specify a crediting period, and establish 
     provisions for petitions for new crediting periods, in 
     accordance with this subsection.
       ``(2) Duration.--The crediting period shall be no less than 
     5 and no greater than 10 years for any project type other 
     than those involving sequestration.
       ``(3) Eligibility.--An offset project shall be eligible to 
     generate offset credits under this part only during the 
     project's crediting period. During such crediting period, the 
     project shall remain eligible to generate offset credits, 
     subject to the methodologies and project type eligibility 
     list that applied as of the date of project approval under 
     section 735, except as provided in paragraph (4) of this 
     subsection.
       ``(4) Petition for new crediting period.--An offset project 
     developer may petition for a new crediting period to commence 
     after termination of a crediting period, subject to the 
     methodologies and project type eligibility list in effect at 
     the time when such petition is submitted. A petition may not 
     be submitted under this paragraph more than 18 months before 
     the end of the pending crediting period. The Administrator 
     may limit the number of new crediting periods available for 
     projects of particular project types.
       ``(d) Environmental Integrity.--In establishing the 
     requirements under this section, the Administrator shall 
     apply conservative assumptions or methods to maximize the 
     certainty that the environmental integrity of the cap 
     established under section 703 is not compromised.
       ``(e) Pre-existing Methodologies.--In promulgating 
     requirements under this section, the Administrator shall give 
     due consideration to methodologies for offset projects 
     existing as of the date of enactment of this title.
       ``(f) Added Project Types.--The Administrator shall 
     establish methodologies described in subsection (a), and, as 
     applicable, requirements and mechanisms for reversals as 
     described in subsection (b), for any project type that is 
     added to the list pursuant to section 733.

     ``SEC. 735. APPROVAL OF OFFSET PROJECTS.

       ``(a) Approval Petition.--An offset project developer shall 
     submit an offset project approval petition providing such 
     information as the Administrator requires to determine 
     whether the offset project is eligible for issuance of offset 
     credits under rules promulgated pursuant to this part.
       ``(b) Timing.--An approval petition shall be submitted to 
     the Administrator under subsection (a) no later than the time 
     at which an offset project's first verification report is 
     submitted under section 736.
       ``(c) Approval Petition Requirements.--As part of the 
     regulations promulgated under section 732, the Administrator 
     shall include provisions for, and shall specify, the required 
     components of an offset project approval petition required 
     under subsection (a), which shall include--
       ``(1) designation of an offset project developer; and
       ``(2) any other information that the Administrator 
     considers to be necessary to achieve the purposes of this 
     part.
       ``(d) Approval and Notification.--Not later than 90 days 
     after receiving a complete approval petition under subsection 
     (a), the Administrator shall make the approval petition 
     publicly available, approve or deny the petition in writing 
     and if the petition is denied, provide the reasons for 
     denial, and make the Administrator's written decision 
     publicly available. After an offset project is approved, the 
     offset project developer shall not be required to resubmit an 
     approval petition during the offset project's crediting 
     period, except as provided in section 734(c)(4).
       ``(e) Appeal.--The Administrator shall establish procedures 
     for appeal and review of determinations made under subsection 
     (d).
       ``(f) Voluntary Preapproval Review.--The Administrator may 
     establish a voluntary preapproval review procedure, to allow 
     an offset project developer to request the Administrator to 
     conduct a preliminary eligibility review for an offset 
     project. Findings of such reviews shall not be binding upon 
     the Administrator. The voluntary preapproval review 
     procedure--
       ``(1) shall require the offset project developer to submit 
     such basic project information as the Administrator requires 
     to provide a meaningful review; and
       ``(2) shall require a response from the Administrator not 
     later than 6 weeks after receiving a request for review under 
     this subsection.

     ``SEC. 736. VERIFICATION OF OFFSET PROJECTS.

       ``(a) In General.--As part of the regulations promulgated 
     under section 732(a), the Administrator shall establish 
     requirements, including protocols, for verification of the 
     quantity of greenhouse gas emission reductions or avoidance, 
     or sequestration of greenhouse gases, resulting from an 
     offset project. The regulations shall require that an offset 
     project developer shall submit a report, prepared by a third-
     party verifier accredited under subsection (d), providing 
     such information as the Administrator requires to determine 
     the quantity of greenhouse gas emission reductions or 
     avoidance, or sequestration of greenhouse gases, resulting 
     from the offset project.
       ``(b) Schedule.--The Administrator shall prescribe a 
     schedule for the submission of verification reports under 
     subsection (a).
       ``(c) Verification Report Requirements.--The Administrator 
     shall specify the required components of a verification 
     report required under subsection (a), which shall include--
       ``(1) the name and contact information for a designated 
     representative for the offset project developer;
       ``(2) the quantity of greenhouse gases reduced, avoided, or 
     sequestered;
       ``(3) the methodologies applicable to the project pursuant 
     to section 734;
       ``(4) a certification that the project meets the applicable 
     requirements;
       ``(5) a certification establishing that the conflict of 
     interest requirements in the regulations promulgated under 
     subsection (d)(1) have been complied with; and
       ``(6) any other information that the Administrator 
     considers to be necessary to achieve the purposes of this 
     part.
       ``(d) Verifier Accreditation.--
       ``(1) In general.--As part of the regulations promulgated 
     under section 732(a), the Administrator shall establish a 
     process and requirements for periodic accreditation of third-
     party verifiers to ensure that such verifiers are 
     professionally qualified and have no conflicts of interest.
       ``(2) Standards.--
       ``(A) American national standards institute 
     accreditation.--The Administrator may accredit, or accept for 
     purposes of accreditation under this subsection, verifiers 
     accredited under the American National Standards Institute 
     (ANSI) accreditation program in accordance with ISO 14065. 
     The Administrator shall accredit, or accept for 
     accreditation, verifiers under this subparagraph only if the 
     Administrator finds that the American National Standards 
     Institute accreditation program provides sufficient assurance 
     that the requirements of this part will be met.
       ``(B) EPA accreditation.--As part of the regulations 
     promulgated under section 732(a), the Administrator may 
     establish accreditation standards for verifiers under this 
     subsection, and may establish related training and testing 
     programs and requirements.
       ``(3) Public accessibility.--Each verifier meeting the 
     requirements for accreditation in accordance with this 
     subsection shall be listed in a publicly accessible database, 
     which shall be maintained and updated by the Administrator.

     ``SEC. 737. ISSUANCE OF OFFSET CREDITS.

       ``(a) Determination and Notification.--Not later than 90 
     days after receiving a complete verification report under 
     section 736, the Administrator shall--
       ``(1) make the report publicly available;
       ``(2) make a determination of the quantity of greenhouse 
     gas emissions that have been

[[Page 16602]]

     reduced or avoided, or greenhouse gases that have been 
     sequestered, by the offset project; and
       ``(3) notify the offset project developer in writing of 
     such determination and make such determination publicly 
     available.
       ``(b) Issuance Of Offset Credits.--The Administrator shall 
     issue one offset credit to an offset project developer for 
     each ton of carbon dioxide equivalent that the Administrator 
     has determined has been reduced, avoided, or sequestered 
     during the period covered by a verification report submitted 
     in accordance with section 736, only if--
       ``(1) the Administrator has approved the offset project 
     pursuant to section 735; and
       ``(2) the relevant emissions reduction, avoidance, or 
     sequestration has--
       ``(A) already occurred, during the offset project's 
     crediting period; and
       ``(B) occurred after January 1, 2009.
       ``(c) Appeal.--The Administrator shall establish procedures 
     for appeal and review of determinations made under subsection 
     (a).
       ``(d) Timing.--Offset credits meeting the criteria 
     established in subsection (b) shall be issued not later than 
     2 weeks following the verification determination made by the 
     Administrator under subsection (a).
       ``(e) Registration.--The Administrator shall assign a 
     unique serial number to and register each offset credit to be 
     issued in the Offset Registry established under section 
     732(d).

     ``SEC. 738. AUDITS.

       ``(a) In General.--The Administrator shall, on an ongoing 
     basis, conduct random audits of offset projects, offset 
     credits, and practices of third-party verifiers. In each 
     year, the Administrator shall conduct audits, at minimum, for 
     a representative sample of project types and geographic 
     areas.
       ``(b) Delegation.--The Administrator may delegate to a 
     State or tribal government the responsibility for conducting 
     audits under this section if the Administrator finds that the 
     program proposed by the State or tribal government provides 
     assurances equivalent to those provided by the auditing 
     program of the Administrator, and that the integrity of the 
     offset program under this part will be maintained. Nothing in 
     this subsection shall prevent the Administrator from 
     conducting any audit the Administrator considers necessary 
     and appropriate.

     ``SEC. 739. PROGRAM REVIEW AND REVISION.

       ``At least once every 5 years, the Administrator shall 
     review and, based on new or updated information and taking 
     into consideration the recommendations of the Advisory Board, 
     update and revise--
       ``(1) the list of eligible project types established under 
     section 733;
       ``(2) the methodologies established, including specific 
     activity baselines, under section 734(a);
       ``(3) the reversal requirements and mechanisms established 
     or prescribed under section 734(b);
       ``(4) measures to improve the accountability of the offsets 
     program; and
       ``(5) any other requirements established under this part to 
     ensure the environmental integrity and effective operation of 
     this part.

     ``SEC. 740. EARLY OFFSET SUPPLY.

       ``(a) Projects Registered Under Other Government-recognized 
     Programs.--Except as provided in subsection (b) or (c), the 
     Administrator shall issue one offset credit for each ton of 
     carbon dioxide equivalent emissions reduced, avoided, or 
     sequestered--
       ``(1) under an offset project that was started after 
     January 1, 2001;
       ``(2) for which a credit was issued under any regulatory or 
     voluntary greenhouse gas emission offset program that the 
     Administrator determines--
       ``(A) was established under State or tribal law or 
     regulation prior to January 1, 2009, or has been approved by 
     the Administrator pursuant to subsection (e);
       ``(B) has developed offset project type standards, 
     methodologies, and protocols through a public consultation 
     process or a peer review process;
       ``(C) has made available to the public standards, 
     methodologies, and protocols that require that credited 
     emission reductions, avoidance, or sequestration are 
     permanent, additional, verifiable, and enforceable;
       ``(D) requires that all emission reductions, avoidance, or 
     sequestration be verified by a State or tribal regulatory 
     agency or an accredited third-party independent verification 
     body;
       ``(E) requires that all credits issued are registered in a 
     publicly accessible registry, with individual serial numbers 
     assigned for each ton of carbon dioxide equivalent emission 
     reductions, avoidance, or sequestration; and
       ``(F) ensures that no credits are issued for an activity if 
     the entity administering the program, or a program 
     administrator or representative, has funded, solicited, or 
     served as a fund administrator for the development of the 
     activity; and
       ``(3) for which the credit described in paragraph (2) is 
     transferred to the Administrator.
       ``(b) Ineligible Credits.--Subsection (a) shall not apply 
     to offset credits that have expired or have been retired, 
     canceled, or used for compliance under a program established 
     under State or tribal law or regulation.
       ``(c) Limitation.--Notwithstanding subsection (a)(1), 
     offset credits shall be issued under this section--
       ``(1) only for reductions or avoidance of greenhouse gas 
     emissions, sequestration of greenhouse gases, or destruction 
     of chlorofluorocarbons (subject to the conditions specified 
     in section 619(b)(9) and based on the carbon dioxide 
     equivalent value of the substance destroyed), that occur 
     after January 1, 2009; and
       ``(2) only until the date that is 3 years after the date of 
     enactment of this title, or the date that regulations 
     promulgated under section 732(a) take effect, whichever 
     occurs sooner.
       ``(d) Retirement of Credits.--The Administrator shall seek 
     to ensure that offset credits described in subsection (a)(2) 
     are retired for purposes of use under a program described in 
     subsection (b).
       ``(e) Other Programs.--(1) Offset programs that either--
       ``(A) were not established under State or tribal law or 
     regulation; or
       ``(B) were not established prior to January 1, 2009,

     but that otherwise meet all of the criteria of subsection 
     (a)(2) may apply to the Administrator to be approved under 
     this subsection as an eligible program for early offset 
     credits under this section.
       ``(2) The Administrator shall approve any such program that 
     the Administrator determines has criteria and methodologies 
     of at least equal stringency to the criteria and 
     methodologies of the programs established under State or 
     tribal law or regulation that the Administrator determines 
     meet the criteria of subsection (a)(2). The Administrator may 
     approve types of offsets under any such program that are 
     subject to criteria and methodologies of at least equal 
     stringency to the criteria and methodologies for such types 
     of offsets applied under the programs established under State 
     or tribal law or regulation that the Administrator determines 
     meet the criteria of subsection (a)(2). The Administrator 
     shall make a determination on any application received under 
     this section by no later than 180 days from the date of 
     receipt of the application.

     ``SEC. 741. ENVIRONMENTAL CONSIDERATIONS.

       ``If the Administrator lists forestry or other relevant 
     land management-related offset projects as eligible offset 
     project types under section 733, the Administrator, in 
     consultation with appropriate Federal agencies, shall 
     promulgate regulations for the selection and use of species 
     in such offset projects--
       ``(1) to ensure that native species are given primary 
     consideration in such projects;
       ``(2) to enhance biological diversity in such projects;
       ``(3) to prohibit the use of federally designated or State-
     designated noxious weeds;
       ``(4) to prohibit the use of a species listed by a regional 
     or State invasive plant authority within the applicable 
     region or State; and
       ``(5) in the case of forestry offset projects, in 
     accordance with widely accepted, environmentally sustainable 
     forestry practices.

     ``SEC. 742. TRADING.

       ``Section 724 shall apply to the trading of offset credits.

     ``SEC. 743. INTERNATIONAL OFFSET CREDITS.

       ``(a) In General.--The Administrator, in consultation with 
     the Secretary of State and the Administrator of the United 
     States Agency for International Development, may issue, in 
     accordance with this section, international offset credits 
     based on activities that reduce or avoid greenhouse gas 
     emissions, or increase sequestration of greenhouse gases, in 
     a developing country. Such credits may be issued for projects 
     eligible under section 733 or as provided in subsection (c), 
     (d), or (e) of this section.
       ``(b) Issuance.--
       ``(1) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator, in 
     consultation with the Secretary of State, the Administrator 
     of the United States Agency for International Development, 
     and any other appropriate Federal agency, and taking into 
     consideration the recommendations of the Advisory Board, 
     shall promulgate regulations for implementing this section. 
     Except as otherwise provided in this section, the issuance of 
     international offset credits under this section shall be 
     subject to the requirements of this part.
       ``(2) Requirements for international offset credits.--The 
     Administrator may issue international offset credits only 
     if--
       ``(A) the United States is a party to a bilateral or 
     multilateral agreement or arrangement that includes the 
     country in which the project or measure achieving the 
     relevant greenhouse gas emission reduction or avoidance, or 
     greenhouse gas sequestration, has occurred;
       ``(B) such country is a developing country; and
       ``(C) such agreement or arrangement--
       ``(i) ensures that the requirements of this part apply to 
     the issuance of international offset credits under this 
     section; and
       ``(ii) provides for the appropriate distribution of 
     international offset credits issued.
       ``(c) Sector-based Credits.--
       ``(1) In general.--In order to minimize the potential for 
     leakage and to encourage countries to take nationally 
     appropriate mitigation actions to reduce or avoid greenhouse 
     gas emissions, or sequester greenhouse gases,

[[Page 16603]]

     the Administrator, in consultation with the Secretary of 
     State and the Administrator of the United States Agency for 
     International Development, shall--
       ``(A) identify sectors of specific countries with respect 
     to which the issuance of international offset credits on a 
     sectoral basis is appropriate; and
       ``(B) issue international offset credits for such sectors 
     only on a sectoral basis.
       ``(2) Identification of sectors.--
       ``(A) General rule.--For purposes of paragraph (1)(A), a 
     sectoral basis shall be appropriate for activities--
       ``(i) in countries that have comparatively high greenhouse 
     gas emissions, or comparatively greater levels of economic 
     development; and
       ``(ii) that, if located in the United States, would be 
     within a sector subject to the compliance obligation under 
     section 722.
       ``(B) Factors.--In determining the sectors and countries 
     for which international offset credits should be awarded only 
     on a sectoral basis, the Administrator, in consultation with 
     the Secretary of State and the Administrator of the United 
     States Agency for International Development, shall consider 
     the following factors:
       ``(i) The country's gross domestic product.
       ``(ii) The country's total greenhouse gas emissions.
       ``(iii) Whether the comparable sector of the United States 
     economy is covered by the compliance obligation under section 
     722.
       ``(iv) The heterogeneity or homogeneity of sources within 
     the relevant sector.
       ``(v) Whether the relevant sector provides products or 
     services that are sold in internationally competitive 
     markets.
       ``(vi) The risk of leakage if international offset credits 
     were issued on a project-level basis, instead of on a 
     sectoral basis, for activities within the relevant sector.
       ``(vii) The capability of accurately measuring, monitoring, 
     reporting, and verifying the performance of sources across 
     the relevant sector.
       ``(viii) Such other factors as the Administrator, in 
     consultation with the Secretary of State and the 
     Administrator of the United States Agency for International 
     Development, determines are appropriate to--

       ``(I) ensure the integrity of the United States greenhouse 
     gas emissions cap established under section 703; and
       ``(II) encourage countries to take nationally appropriate 
     mitigation actions to reduce or avoid greenhouse gas 
     emissions, or sequester greenhouse gases.

       ``(3) Sectoral basis.--
       ``(A) Definition.--In this subsection, the term `sectoral 
     basis' means the issuance of international offset credits 
     only for the quantity of sector-wide reductions or avoidance 
     of greenhouse gas emissions, or sector-wide increases in 
     sequestration of greenhouse gases, achieved across the 
     relevant sector of the economy relative to a domestically 
     enforceable baseline level of absolute emissions established 
     in an agreement or arrangement described in subsection 
     (b)(2)(A) for the sector.
       ``(B) Baseline.--The baseline for a sector shall be 
     established on an absolute basis and at levels of greenhouse 
     gas emissions consistent with the thresholds identified in 
     section 705(e)(2) and lower than would occur under a 
     business-as-usual scenario taking into account relevant 
     domestic or international policies or incentives to reduce 
     greenhouse gas emissions, among other factors, and 
     additionality and performance shall be determined on the 
     basis of such baseline.
       ``(d) Credits Issued by an International Body.--
       ``(1) In general.--The Administrator, in consultation with 
     the Secretary of State, may issue international offset 
     credits in exchange for instruments in the nature of offset 
     credits that are issued by an international body established 
     pursuant to the United Nations Framework Convention on 
     Climate Change, to a protocol to such Convention, or to a 
     treaty that succeeds such Convention. The Administrator may 
     issue international offset credits under this subsection only 
     if, in addition to the requirements of subsection (b), the 
     Administrator has determined that the international body that 
     issued the instruments has implemented substantive and 
     procedural requirements for the relevant project type that 
     provide equal or greater assurance of the integrity of such 
     instruments as is provided by the requirements of this part. 
     Starting January 1, 2016, the Administrator shall issue no 
     offset credit pursuant to this subsection if the activity 
     generating the greenhouse gas emissions reductions or 
     avoidance, or greenhouse gas sequestration, occurs in a 
     country and sector identified by the Administrator under 
     subsection (c).
       ``(2) Retirement.--The Administrator, in consultation with 
     the Secretary of State, shall seek, by whatever means 
     appropriate, including agreements, arrangements, or technical 
     cooperation with the international issuing body described in 
     paragraph (1), to ensure that such body--
       ``(A) is notified of the Administrator's issuance, under 
     this subsection, of an international offset credit in 
     exchange for an instrument issued by such international body; 
     and
       ``(B) provides, to the extent feasible, for the 
     disqualification of the instrument issued by such 
     international body for subsequent use under any relevant 
     foreign or international greenhouse gas regulatory program, 
     regardless of whether such use is a sale, exchange, or 
     submission to satisfy a compliance obligation.
       ``(e) Offsets From Reduced Deforestation.--
       ``(1) Requirements.--The Administrator, in accordance with 
     the regulations promulgated under subsection (b)(1) and an 
     agreement or arrangement described in subsection (b)(2)(A), 
     shall issue international offset credits for greenhouse gas 
     emission reductions achieved through activities to reduce 
     deforestation only if, in addition to the requirements of 
     subsection (b)--
       ``(A) the activity occurs in--
       ``(i) a country listed by the Administrator pursuant to 
     paragraph (2);
       ``(ii) a state or province listed by the Administrator 
     pursuant to paragraph (5); or
       ``(iii) a country listed by the Administrator pursuant to 
     paragraph (6);
       ``(B) except as provided in paragraph (5) or (6), the 
     quantity of the international offset credits is determined by 
     comparing the national emissions from deforestation relative 
     to a national deforestation baseline for that country 
     established, in accordance with an agreement or arrangement 
     described in subsection (b)(2)(A), pursuant to paragraph (4);
       ``(C) the reduction in emissions from deforestation has 
     occurred before the issuance of the international offset 
     credit and, taking into consideration relevant international 
     standards, has been demonstrated using ground-based 
     inventories, remote sensing technology, and other 
     methodologies to ensure that all relevant carbon stocks are 
     accounted;
       ``(D) the Administrator has made appropriate adjustments, 
     such as discounting for any additional uncertainty, to 
     account for circumstances specific to the country, including 
     its technical capacity described in paragraph (2)(A);
       ``(E) the activity is designed, carried out, and managed--
       ``(i) in accordance with widely accepted, environmentally 
     sustainable forest management practices;
       ``(ii) to promote or restore native forest species and 
     ecosystems where practicable, and to avoid the introduction 
     of invasive nonnative species;
       ``(iii) in a manner that gives due regard to the rights and 
     interests of local communities, indigenous peoples, forest-
     dependent communities, and vulnerable social groups;
       ``(iv) with consultations with, and full participation of, 
     local communities, indigenous peoples, and forest-dependent 
     communities, in affected areas, as partners and primary 
     stakeholders, prior to and during the design, planning, 
     implementation, and monitoring and evaluation of activities; 
     and
       ``(v) with equitable sharing of profits and benefits 
     derived from offset credits with local communities, 
     indigenous peoples, and forest-dependent communities; and
       ``(F) the reduction otherwise satisfies and is consistent 
     with any relevant requirements established by an agreement 
     reached under the auspices of the United Nations Framework 
     Convention on Climate Change.
       ``(2) Eligible countries.--The Administrator, in 
     consultation with the Secretary of State and the 
     Administrator of the United States Agency for International 
     Development, and in accordance with an agreement or 
     arrangement described in subsection (b)(2)(A), shall 
     establish, and periodically review and update, a list of the 
     developing countries that have the capacity to participate in 
     deforestation reduction activities at a national level, 
     including--
       ``(A) the technical capacity to monitor, measure, report, 
     and verify forest carbon fluxes for all significant sources 
     of greenhouse gas emissions from deforestation with an 
     acceptable level of uncertainty, as determined taking into 
     account relevant internationally accepted methodologies, such 
     as those established by the Intergovernmental Panel on 
     Climate Change;
       ``(B) the institutional capacity to reduce emissions from 
     deforestation, including strong forest governance and 
     mechanisms to equitably distribute deforestation resources 
     for local actions; and
       ``(C) a land use or forest sector strategic plan that--
       ``(i) assesses national and local drivers of deforestation 
     and forest degradation and identifies reforms to national 
     policies needed to address them;
       ``(ii) estimates the country's emissions from deforestation 
     and forest degradation;
       ``(iii) identifies improvements in data collection, 
     monitoring, and institutional capacity necessary to implement 
     a national deforestation reduction program; and
       ``(iv) establishes a timeline for implementing the program 
     and transitioning to low-emissions development with respect 
     to emissions from forest and land use activities.
       ``(3) Protection of interests.--With respect to an 
     agreement or arrangement described in subsection (b)(2)(A) 
     that addresses international offset credits under this 
     subsection, the Administrator, in consultation with the 
     Secretary of State and the Administrator of the United States 
     Agency for International Development, shall seek to ensure

[[Page 16604]]

     the establishment and enforcement by such country of legal 
     regimes, processes, standards, and safeguards that--
       ``(A) give due regard to the rights and interests of local 
     communities, indigenous peoples, forest-dependent 
     communities, and vulnerable social groups;
       ``(B) promote consultations with, and full participation 
     of, forest-dependent communities and indigenous peoples in 
     affected areas, as partners and primary stakeholders, prior 
     to and during the design, planning, implementation, and 
     monitoring and evaluation of activities; and
       ``(C) encourage equitable sharing of profits and benefits 
     derived from international offset credits with local 
     communities, indigenous peoples, and forest-dependent 
     communities.
       ``(4) National deforestation baseline.--A national 
     deforestation baseline established under this subsection 
     shall--
       ``(A) be national in scope;
       ``(B) be consistent with nationally appropriate mitigation 
     commitments or actions with respect to deforestation, taking 
     into consideration the average annual historical 
     deforestation rates of the country during a period of at 
     least 5 years, the applicable drivers of deforestation, and 
     other factors to ensure additionality;
       ``(C) establish a trajectory that would result in zero net 
     deforestation by not later than 20 years after the national 
     deforestation baseline has been established;
       ``(D) be adjusted over time to take account of changing 
     national circumstances;
       ``(E) be designed to account for all significant sources of 
     greenhouse gas emissions from deforestation in the country; 
     and
       ``(F) be consistent with the national deforestation 
     baseline, if any, established for such country under section 
     754(d)(1) and (2).
       ``(5) State-level or province-level activities.--
       ``(A) Eligible states or provinces.--The Administrator, in 
     consultation with the Secretary of State and the 
     Administrator of the United States Agency for International 
     Development, shall establish within 2 years after the date of 
     enactment of this title, and periodically review and update, 
     a list of states or provinces in developing countries where--
       ``(i) the developing country is not included on the list of 
     countries established pursuant to paragraph (6)(A);
       ``(ii) the state or province by itself is a major emitter 
     of greenhouse gases from tropical deforestation on a scale 
     commensurate to the emissions of other countries; and
       ``(iii) the state or province meets the eligibility 
     criteria in paragraphs (2) and (3) for the geographic area 
     under its jurisdiction.
       ``(B) Activities.--The Administrator may issue 
     international offset credits for greenhouse gas emission 
     reductions achieved through activities to reduce 
     deforestation at a state or provincial level that meet the 
     requirements of this section. Such credits shall be 
     determined by comparing the emissions from deforestation 
     within that state or province relative to the state or 
     province deforestation baseline for that state or province 
     established, in accordance with an agreement or arrangement 
     described in subsection (b)(2)(A), pursuant to subparagraph 
     (C) of this paragraph.
       ``(C) State or province deforestation baseline.--A state or 
     province deforestation baseline shall--
       ``(i) be consistent with any existing nationally 
     appropriate mitigation commitments or actions for the country 
     in which the activity is occurring, taking into consideration 
     the average annual historical deforestation rates of the 
     state or province during a period of at least 5 years, 
     relevant drivers of deforestation, and other factors to 
     ensure additionality;
       ``(ii) establish a trajectory that would result in zero net 
     deforestation by not later than 20 years after the state or 
     province deforestation baseline has been established; and
       ``(iii) be designed to account for all significant sources 
     of greenhouse gas emissions from deforestation in the state 
     or province and adjusted to fully account for emissions 
     leakage outside the state or province.
       ``(D) Phase out.--Beginning 5 years after the first 
     calendar year for which a covered entity must demonstrate 
     compliance with section 722(a), the Administrator shall issue 
     no further international offset credits for eligible state-
     level or province-level activities to reduce deforestation 
     pursuant to this paragraph.
       ``(6) Projects and programs to reduce deforestation.--
       ``(A) Eligible countries.--The Administrator, in 
     consultation with the Secretary of State and the 
     Administrator of the United States Agency for International 
     Development, shall establish within 2 years after the date of 
     enactment of this title, and periodically review and update, 
     a list of developing countries each of which--
       ``(i) the Administrator determines, based on recent, 
     credible, and reliable emissions data, accounts for less than 
     1 percent of global greenhouse gas emissions and less than 3 
     percent of global forest-sector and land use change 
     greenhouse gas emissions; and
       ``(ii) has, or in the determination of the Administrator is 
     making a good faith effort to develop, a land use or forest 
     sector strategic plan that meets the criteria described in 
     paragraph (2)(C).
       ``(B) Activities.--The Administrator may issue 
     international offset credits for greenhouse gas emission 
     reductions achieved through project or program level 
     activities to reduce deforestation in countries listed under 
     subparagraph (A) that meet the requirements of this section. 
     The quantity of international offset credits shall be 
     determined by comparing the project-level or program-level 
     emissions from deforestation to a deforestation baseline for 
     such project or program established pursuant to subparagraph 
     (C).
       ``(C) Project-level or program-level baseline.--A project-
     level or program-level deforestation baseline shall--
       ``(i) be consistent with any existing nationally 
     appropriate mitigation commitments or actions for the country 
     in which the project or program is occurring, taking into 
     consideration the average annual historical deforestation 
     rates relevant to the specific project or program during a 
     period of at least 5 years, applicable drivers of 
     deforestation, and other factors to ensure additionality;
       ``(ii) be designed to account for all significant sources 
     of greenhouse gas emissions from deforestation in the project 
     or program boundary; and
       ``(iii) be adjusted to fully account for emissions leakage 
     outside the project or program boundary.
       ``(D) Phase out.--(i) Beginning 5 years after the first 
     calendar year for which a covered entity must demonstrate 
     compliance with section 722(a), the Administrator shall issue 
     no further international offset credits for project-level or 
     program-level activities pursuant to this paragraph, except 
     as provided in clause (ii).
       ``(ii) The Administrator may extend the phase out deadline 
     for the issuance of international offset credits under this 
     paragraph by up to 8 years with respect to eligible 
     activities taking place in a least developed country, which 
     for purposes of this paragraph is defined as a foreign 
     country that the United Nations has identified as among the 
     least developed of developing countries at the time that the 
     Administrator determines to provide an extension, if the 
     Administrator, in consultation with the Secretary of State 
     and the Administrator of the United States Agency for 
     International Development, determines the country--
       ``(I) lacks sufficient capacity to adopt and implement 
     effective programs to achieve reductions in deforestation 
     measured against national baselines;
       ``(II) is receiving support under part E to develop such 
     capacity; and
       ``(III) has developed and is working to implement a 
     credible national strategy or plan to reduce deforestation.
       ``(7) Deforestation.--In implementing this subsection, the 
     Administrator, taking into consideration the recommendations 
     of the Advisory Board, may include forest degradation, or 
     soil carbon losses associated with forested wetlands or 
     peatlands, within the meaning of deforestation.
       ``(8) Consultation.--In implementing this subsection, the 
     Administrator shall consult with the Secretary of Agriculture 
     on relevant matters within such Secretary's area of 
     expertise.
       ``(f) Modification of Requirements.--In promulgating 
     regulations under subsection (b)(1) with respect to the 
     issuance of international offset credits under subsection 
     (c), (d), or (e), the Administrator, in consultation with the 
     Secretary of State and the Administrator of the United States 
     Agency for International Development, may modify or omit a 
     requirement of this part (excluding the requirements of this 
     section) if the Administrator determines that the application 
     of that requirement to such subsection is not feasible. In 
     modifying or omitting such a requirement on the basis of 
     infeasibility, the Administrator, in consultation with the 
     Secretary of State and the Administrator of the United States 
     Agency for International Development, shall ensure, with an 
     adequate margin of safety, the integrity of international 
     offset credits issued under this section and of the 
     greenhouse gas emissions cap established pursuant to section 
     703.
       ``(g) Avoiding Double Counting.--The Administrator, in 
     consultation with the Secretary of State, shall seek, by 
     whatever means appropriate, including agreements, 
     arrangements, or technical cooperation, to ensure that 
     activities on the basis of which international offset credits 
     are issued under this section are not used for compliance 
     with an obligation to reduce or avoid greenhouse gas 
     emissions, or increase greenhouse gas sequestration, under a 
     foreign or international regulatory system. In addition, no 
     international offset credits shall be issued for emission 
     reductions from activities with respect to which emission 
     allowances were allocated under section 781 for distribution 
     under part E.
       ``(h) Limitation.--The Administrator shall not issue 
     international offset credits generated by projects based on 
     the destruction of hydrofluorocarbons.

[[Page 16605]]



 ``PART E--SUPPLEMENTAL EMISSIONS REDUCTIONS FROM REDUCED DEFORESTATION

     ``SEC. 751. DEFINITIONS.

       ``In this part:
       ``(1) Leakage prevention activities.--The term `leakage 
     prevention activities' means activities in developing 
     countries that are directed at preserving existing forest 
     carbon stocks, including forested wetlands and peatlands, 
     that might, absent such activities, be lost through leakage.
       ``(2) National deforestation reduction activities.--The 
     term `national deforestation reduction activities' means 
     activities in developing countries that reduce a quantity of 
     greenhouse gas emissions from deforestation that is 
     calculated by measuring actual emissions against a national 
     deforestation baseline established pursuant to section 
     754(d)(1) and (2).
       ``(3) Subnational deforestation reduction activities.--The 
     term `subnational deforestation reduction activities' means 
     activities in developing countries that reduce a quantity of 
     greenhouse gas emissions from deforestation that are 
     calculated by measuring actual emissions using an appropriate 
     baseline established by the Administrator that is less than 
     national in scope.
       ``(4) Supplemental emissions reductions.--The term 
     `supplemental emissions reductions' means greenhouse gas 
     emissions reductions achieved from reduced or avoided 
     deforestation under this part.
       ``(5) USAID.--The term `USAID' means the United States 
     Agency for International Development.

     ``SEC. 752. FINDINGS.

       ``Congress finds that--
       ``(1) as part of a global effort to mitigate climate 
     change, it is in the national interest of the United States 
     to assist developing countries to reduce and ultimately halt 
     emissions from deforestation;
       ``(2) deforestation is one of the largest sources of 
     greenhouse gas emissions in developing countries, amounting 
     to roughly 20 percent of overall emissions globally;
       ``(3) recent scientific analysis shows that it will be 
     substantially more difficult to limit the increase in global 
     temperatures to less than 2 degrees centigrade above 
     preindustrial levels without reducing and ultimately halting 
     net emissions from deforestation;
       ``(4) reducing emissions from deforestation is highly cost-
     effective, compared to many other sources of emissions 
     reductions;
       ``(5) in addition to contributing significantly to 
     worldwide efforts to address global warming, assistance under 
     this part will generate significant environmental and social 
     cobenefits, including protection of biodiversity, ecosystem 
     services, and forest-related livelihoods; and
       ``(6) under the Bali Action Plan, developed country parties 
     to the United Nations Framework Convention on Climate Change, 
     including the United States, committed to `enhanced action on 
     the provision of financial resources and investment to 
     support action on mitigation and adaptation and technology 
     cooperation,' including, inter alia, consideration of 
     `improved access to adequate, predictable, and sustainable 
     financial resources and financial and technical support, and 
     the provision of new and additional resources, including 
     official and concessional funding for developing country 
     parties' .

     ``SEC. 753. SUPPLEMENTAL EMISSIONS REDUCTIONS THROUGH REDUCED 
                   DEFORESTATION.

       ``(a) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator, in 
     consultation with the Administrator of USAID and any other 
     appropriate agencies, shall promulgate regulations 
     establishing a program to use emission allowances set aside 
     for this purpose under section 781 to reduce greenhouse gas 
     emissions from deforestation in developing countries in 
     accordance with the requirements of this part.
       ``(b) Objectives.--The objectives of the program 
     established under this section shall be to--
       ``(1) achieve supplemental emissions reductions of at least 
     720,000,000 tons of carbon dioxide equivalent in 2020, a 
     cumulative amount of at least 6,000,000,000 tons of carbon 
     dioxide equivalent by December 31, 2025, and additional 
     supplemental emissions reductions in subsequent years;
       ``(2) build capacity to reduce deforestation in developing 
     countries experiencing deforestation, including preparing 
     developing countries to participate in international markets 
     for international offset credits for reduced emissions from 
     deforestation; and
       ``(3) preserve existing forest carbon stocks in countries 
     where such forest carbon may be vulnerable to international 
     leakage, particularly in developing countries with largely 
     intact native forests.

     ``SEC. 754. REQUIREMENTS FOR INTERNATIONAL DEFORESTATION 
                   REDUCTION PROGRAM.

       ``(a) Eligible Countries.--The Administrator may support 
     activities under this part only with respect to a developing 
     country that--
       ``(1) the Administrator, in consultation with the 
     Administrator of USAID, determines is experiencing 
     deforestation or forest degradation or has standing forest 
     carbon stocks that may be at risk of deforestation or 
     degradation; and
       ``(2) has entered into a bilateral or multilateral 
     agreement or arrangement with the United States establishing 
     the conditions of its participation in the program 
     established under this part, which shall include an agreement 
     to meet the standards established under subsection (d) for 
     the activities to which those standards apply.
       ``(b) Activities.--
       ``(1) Authorized activities.--Subject to the requirements 
     of this part, the Administrator, in consultation with the 
     Administrator of USAID, may support activities to achieve the 
     objectives identified in section 753(b), including--
       ``(A) national deforestation reduction activities;
       ``(B) subnational deforestation reduction activities, 
     including pilot activities that reduce greenhouse gas 
     emissions but are subject to significant uncertainty;
       ``(C) activities to measure, monitor, and verify 
     deforestation, avoided deforestation, and deforestation 
     rates;
       ``(D) leakage prevention activities;
       ``(E) development of measurement, monitoring, and 
     verification capacities to enable a country to quantify 
     supplemental emissions reductions and to generate for sale 
     offset credits from reduced or avoided deforestation;
       ``(F) development of governance structures to reduce 
     deforestation and illegal logging;
       ``(G) enforcement of requirements for reduced deforestation 
     or forest conservation;
       ``(H) efforts to combat illegal logging and increase 
     enforcement cooperation;
       ``(I) providing incentives for policy reforms to achieve 
     the objectives identified in section 753(b); and
       ``(J) monitoring and evaluation of the results of the 
     activities conducted under this section.
       ``(2) Activities selected by usaid.--
       ``(A) The Administrator of USAID, in consultation with the 
     Administrator, may select for support and implementation 
     pursuant to subsection (c) any of the activities described in 
     paragraph (1), consistent with this part and the regulations 
     promulgated under subsection (d), and subject to the 
     requirement to achieve the objectives listed in section 
     753(b)(1).
       ``(B) With respect to the activities listed in 
     subparagraphs (D) through (J) of paragraph (1), the 
     Administrator of USAID, in consultation with the 
     Administrator, shall have primary but not exclusive 
     responsibility for selecting the activities to be supported 
     and implemented.
       ``(3) Interagency coordination.--The Administrator and the 
     Administrator of USAID shall jointly develop and biennially 
     update a strategic plan for meeting the objectives listed in 
     section 753(b) and shall execute a memorandum of 
     understanding delineating the agencies' respective roles in 
     implementing this part.
       ``(c) Mechanisms.--
       ``(1) In general.--The Administrator may support activities 
     to achieve the objectives identified in section 753(b) by--
       ``(A) developing and implementing programs and projects 
     that achieve such objectives; and
       ``(B) distributing emission allowances to a country that is 
     eligible under subsection (a), to a private or public group 
     (including international organizations), or to an 
     international fund established by an international agreement 
     to which the United States is a party, to carry out 
     activities to achieve such objectives.
       ``(2) USAID activities.--With respect to activities 
     selected and implemented by the Administrator of USAID 
     pursuant to subsection (b)(2), the Administrator shall 
     distribute emission allowances as provided in paragraph (1) 
     of this subsection based upon the direction of the 
     Administrator of USAID, subject to the availability of 
     allowances for such activities.
       ``(3) Implementation through international organizations.--
     If support is distributed through an international 
     organization, the agency responsible for selecting activities 
     in accordance with subsection (b)(1) or (2), in consultation 
     with the Secretary of State, shall ensure the establishment 
     and implementation of adequate mechanisms to apply and 
     enforce the eligibility requirements and other requirements 
     of this section.
       ``(4) Role of the secretary of state.--The Administrator 
     may not distribute emission allowances under this part to the 
     government of another country or to an international 
     organization or international fund unless the Secretary of 
     State has concurred with such distribution.
       ``(d) Standards.--The Administrator, in consultation with 
     the Administrator of USAID, shall promulgate regulations 
     establishing standards to ensure that supplemental emissions 
     reductions achieved through supported activities are 
     additional, measurable, verifiable, permanent, and monitored, 
     and account for leakage and uncertainty. In addition, such 
     standards shall--

[[Page 16606]]

       ``(1) require the establishment of a national deforestation 
     baseline for each country with national deforestation 
     reduction activities that is used to account for reductions 
     achieved from such activities;
       ``(2) provide that a national deforestation baseline 
     established under paragraph (1) shall--
       ``(A) be national in scope;
       ``(B) be consistent with nationally appropriate mitigation 
     commitments or actions with respect to deforestation, taking 
     into consideration the average annual historical 
     deforestation rates of the country during a period of at 
     least 5 years, the applicable drivers of deforestation, and 
     other factors to ensure additionality;
       ``(C) establish a trajectory that would result in zero net 
     deforestation by not later than 20 years from the date the 
     baseline is established;
       ``(D) be adjusted over time to take account of changing 
     national circumstances;
       ``(E) be designed to account for all significant sources of 
     greenhouse gas emissions from deforestation in the country; 
     and
       ``(F) be consistent with the national deforestation 
     baseline, if any, established for such country under section 
     743(e)(4);
       ``(3) with respect to support provided pursuant to 
     subsection (b)(1)(A) or (B), require supplemental emissions 
     reductions to be achieved and verified prior to compensation 
     through the distribution of emission allowances under this 
     part;
       ``(4) with respect to accounting for subnational 
     deforestation reduction activities that lack the standardized 
     or precise measurement and monitoring techniques needed for a 
     full accounting of changes in emissions or baselines, or are 
     subject to other sources of uncertainty, apply a conservative 
     discount factor to reflect the uncertainty regarding the 
     levels of reductions achieved;
       ``(5) ensure that activities under this part shall be 
     designed, carried out, and managed--
       ``(A) in accordance with widely accepted, environmentally 
     sustainable forest management practices;
       ``(B) to promote or restore native forest species and 
     ecosystems where practicable, and to avoid the introduction 
     of invasive nonnative species;
       ``(C) in a manner that gives due regard to the rights and 
     interests of local communities, indigenous peoples, forest-
     dependent communities, and vulnerable social groups;
       ``(D) with consultations with, and full participation of, 
     local communities, indigenous peoples, and forest-dependent 
     communities in affected areas, as partners and primary 
     stakeholders, prior to and during the design, planning, 
     implementation, and monitoring and evaluation of activities; 
     and
       ``(E) with equitable sharing of profits and benefits 
     derived from the activities with local communities, 
     indigenous peoples, and forest-dependent communities; and
       ``(6) with respect to support for all activities under this 
     part, seek to ensure the establishment and enforcement, by 
     the country in which the activities occur, of legal regimes, 
     standards, processes, and safeguards that--
       ``(A) give due regard to the rights and interests of local 
     communities, indigenous peoples, forest-dependent 
     communities, and vulnerable social groups;
       ``(B) promote consultations with local communities and 
     indigenous peoples and forest-dependent communities in 
     affected areas, as partners and primary stakeholders, prior 
     to and during the design, planning, implementation, 
     monitoring, and evaluation of activities under this part; and
       ``(C) encourage equitable sharing of profits and benefits 
     from incentives for emissions reductions or leakage 
     prevention with local communities, indigenous peoples, and 
     forest-dependent communities.
       ``(e) Scope.--(1) The Administrator shall include within 
     the scope of activities under this part reduced emissions 
     from forest degradation.
       ``(2) The Administrator, in consultation with the 
     Administrator of USAID, may decide, taking into account any 
     advice from the Advisory Board, to expand, where appropriate, 
     the scope of activities under this part to include reduced 
     soil carbon-derived emissions associated with deforestation 
     and degradation of forested wetlands and peatlands.
       ``(f) Accounting.--The Administrator shall establish a 
     publicly accessible registry of the supplemental emissions 
     reductions achieved through support provided under this part 
     each year, after appropriately discounting for uncertainty 
     and other relevant factors as required by the standards 
     established under subsection (d).
       ``(g) Transition to National Reductions.--Beginning 5 years 
     after the date that a country entered into the agreement or 
     arrangement required under subsection (a)(2), the 
     Administrator shall provide no further compensation through 
     emission allowances to that country under this part for any 
     subnational deforestation reduction activities, except that 
     the Administrator may extend this period by an additional 5 
     years if the Administrator, in consultation with the 
     Administrator of USAID, determines that--
       ``(1) the country is making substantial progress towards 
     adopting and implementing a program to achieve reductions in 
     deforestation measured against a national baseline;
       ``(2) the greenhouse gas emissions reductions achieved are 
     not resulting in significant leakage; and
       ``(3) the greenhouse gas emissions reductions achieved are 
     being appropriately discounted to account for any leakage 
     that is occurring.

     The limitation under this subsection shall not apply to 
     support for activities to further the objectives listed in 
     section 753(b)(2) or (3).
       ``(h) Coordination With U.S. Foreign Assistance.--Subject 
     to the direction of the President, the Administrator and the 
     Administrator of USAID shall, to the extent practicable and 
     consistent with the objectives of this program, seek to align 
     activities under this section with broader development, 
     poverty alleviation, or natural resource management 
     objectives and initiatives in the recipient country.
       ``(i) Support as Supplement.--The provision of support for 
     activities under this part shall be used to supplement, and 
     not to supplant, any other Federal, State, or local support 
     available to carry out such qualifying activities under this 
     part.
       ``(j) Not Eligible for Offset Credit.--Activities that 
     receive support under this part shall not be issued offset 
     credits for the greenhouse gas emissions reductions or 
     avoidance, or greenhouse gas sequestration, produced by such 
     activities.

     ``SEC. 755. REPORTS AND REVIEWS.

       ``(a) Reports.--Not later than January 1, 2014, and 
     annually thereafter, the Administrator and the Administrator 
     of USAID shall submit to the Committee on Energy and Commerce 
     and the Committee on Foreign Affairs of the House of 
     Representatives, and the Committee on Environment and Public 
     Works and the Committee on Foreign Relations of the Senate, 
     and make available to the public, a report on the support 
     provided under this part during the prior fiscal year. The 
     report shall include--
       ``(1) a statement of the quantity of supplemental emissions 
     reductions for which compensation in the form of emission 
     allowances was provided under this part during the prior 
     fiscal year, as registered by the Administrator under section 
     754(f); and
       ``(2) a description of the national and subnational 
     deforestation reduction activities, capacity-building 
     activities, and leakage prevention activities supported under 
     this part, including a statement of the quantity of emission 
     allowances distributed to each recipient for each activity 
     during the prior fiscal year, and a description of what was 
     accomplished through each of the activities.
       ``(b) Reviews.--Not later than 4 years after the date of 
     enactment of this title and every 5 years thereafter, the 
     Administrator and the Administrator of USAID, taking into 
     consideration any evaluation by or recommendations from the 
     Advisory Board established under section 731, shall conduct a 
     review of the activities undertaken pursuant to this part and 
     make any appropriate changes in the program established under 
     this part, consistent with the requirements of this part, 
     based on the findings of the review. The review shall include 
     the effects of the activities on--
       ``(1) total documented carbon stocks of each country that 
     directly or indirectly received support under this part 
     compared with such country's national deforestation baseline 
     established under section 754(d)(1) and (2);
       ``(2) the number of countries with the capacity to generate 
     for sale instruments in the nature of offset credits from 
     forest-related activities, and the amount of such activities;
       ``(3) forest governance in each country that directly or 
     indirectly received support under this part;
       ``(4) indigenous peoples and forest-dependent communities 
     residing in areas affected by such activities;
       ``(5) biodiversity and ecosystem services within forested 
     areas associated with the activities;
       ``(6) subnational and international leakage; and
       ``(7) any program or mechanism established under the United 
     Nations Framework Convention on Climate Change related to 
     greenhouse gas emissions from deforestation.

     ``SEC. 756. LEGAL EFFECT OF PART.

       ``(1) In general.--Nothing in this part 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.
       ``(2) Role of the secretary of state.--Nothing in this part 
     shall be construed as affecting the role of the Secretary of 
     State or the responsibilities of the Secretary under section 
     622(c) of the Foreign Assistance Act of 1961.''.

     SEC. 312. DEFINITIONS.

       Title VII of the Clean Air Act, as added by section 311 of 
     this Act, is amended by inserting before part A the following 
     new section:

     ``SEC. 700. DEFINITIONS.

       ``In this title:
       ``(1) Additional.--The term `additional', when used with 
     respect to reductions or avoidance of greenhouse gas 
     emissions, or to sequestration of greenhouse gases, means 
     reductions, avoidance, or sequestration that

[[Page 16607]]

     result in a lower level of net greenhouse gas emissions or 
     atmospheric concentrations than would occur in the absence of 
     an offset project.
       ``(2) Additionality.--The term `additionality' means the 
     extent to which reductions or avoidance of greenhouse gas 
     emissions, or sequestration of greenhouse gases, are 
     additional.
       ``(3) Advisory board.--The term `Advisory Board' means the 
     Offsets Integrity Advisory Board established under section 
     731.
       ``(4) Affiliated.--The term `affiliated'--
       ``(A) when used in relation to an entity means owned or 
     controlled by, or under common ownership or control with, 
     another entity, as determined by the Administrator; and
       ``(B) when used in relation to a natural gas local 
     distribution company, means owned or controlled by, or under 
     common ownership or control with, another natural gas local 
     distribution company, as determined by the Administrator.
       ``(5) Allowance.--The term `allowance' means a limited 
     authorization to emit, or have attributable greenhouse gas 
     emissions in an amount of, 1 ton of carbon dioxide equivalent 
     of a greenhouse gas in accordance with this title. Such term 
     includes an emission allowance, a compensatory allowance, and 
     an international emission allowance, but does not include an 
     international reserve allowance established under section 
     766.
       ``(6) Attributable greenhouse gas emissions.--The term 
     `attributable greenhouse gas emissions', for a given calendar 
     year, means--
       ``(A) for a covered entity that is a fuel producer or 
     importer described in paragraph (13)(B), greenhouse gases 
     that would be emitted from the combustion of any petroleum-
     based or coal-based liquid fuel, petroleum coke, or natural 
     gas liquid, produced or imported by that covered entity 
     during that calendar year for sale or distribution in 
     interstate commerce, assuming no capture and sequestration of 
     any greenhouse gas emissions;
       ``(B) for a covered entity that is an industrial gas 
     producer or importer described in paragraph (13)(C), the tons 
     of carbon dioxide equivalent of any gas described in clauses 
     (i) through (vi) of paragraph (13)(C)--
       ``(i) produced or imported by such covered entity during 
     that calendar year for sale or distribution in interstate 
     commerce; or
       ``(ii) released as fugitive emissions in the production of 
     fluorinated gas; and
       ``(C) for a natural gas local distribution company 
     described in paragraph (13)(J), greenhouse gases that would 
     be emitted from the combustion of the natural gas, and any 
     other gas meeting the specifications for commingling with 
     natural gas for purposes of delivery, that such entity 
     delivered during that calendar year to customers that are not 
     covered entities, assuming no capture and sequestration of 
     that greenhouse gas.
       ``(7) Biological sequestration; biologically sequestered.--
     The terms `biological sequestration' and `biologically 
     sequestered' mean the removal of greenhouse gases from the 
     atmosphere by terrestrial biological means, such as by 
     growing plants, and the storage of those greenhouse gases in 
     plants or soils.
       ``(8) Capped emissions.--The term `capped emissions' means 
     greenhouse gas emissions to which section 722 applies, 
     including emissions from the combustion of natural gas, 
     petroleum-based or coal-based liquid fuel, petroleum coke, or 
     natural gas liquid to which section 722(b)(2) or (8) applies.
       ``(9) Capped source.--The term `capped source' means a 
     source that directly emits capped emissions.
       ``(10) Carbon dioxide equivalent.--The term `carbon dioxide 
     equivalent' means the unit of measure, expressed in metric 
     tons, of greenhouse gases as provided under section 711 or 
     712.
       ``(11) Carbon stock.--The term `carbon stock' means the 
     quantity of carbon contained in a biological reservoir or 
     system which has the capacity to accumulate or release 
     carbon.
       ``(12) Compensatory allowance.--The term `compensatory 
     allowance' means an allowance issued under section 721(f).
       ``(13) Covered entity.--The term `covered entity' means 
     each of the following:
       ``(A) Any electricity source.
       ``(B) Any stationary source that produces, and any entity 
     that (or any group of two or more affiliated entities that, 
     in the aggregate) imports, for sale or distribution in 
     interstate commerce in 2008 or any subsequent year, 
     petroleum-based or coal-based liquid fuel, petroleum coke, or 
     natural gas liquid, the combustion of which would emit 25,000 
     or more tons of carbon dioxide equivalent, as determined by 
     the Administrator.
       ``(C) Any stationary source that produces, and any entity 
     that (or any group of two or more affiliated entities that, 
     in the aggregate) imports, for sale or distribution in 
     interstate commerce, in bulk, or in products designated by 
     the Administrator, in 2008 or any subsequent year 25,000 or 
     more tons of carbon dioxide equivalent of--
       ``(i) fossil fuel-based carbon dioxide;
       ``(ii) nitrous oxide;
       ``(iii) perfluorocarbons;
       ``(iv) sulfur hexafluoride;
       ``(v) any other fluorinated gas, except for nitrogen 
     trifluoride, that is a greenhouse gas, as designated by the 
     Administrator under section 711; or
       ``(vi) any combination of greenhouse gases described in 
     clauses (i) through (v).
       ``(D) Any stationary source that has emitted 25,000 or more 
     tons of carbon dioxide equivalent of nitrogen trifluoride in 
     2008 or any subsequent year.
       ``(E) Any geologic sequestration site.
       ``(F) Any stationary source in the following industrial 
     sectors:
       ``(i) Adipic acid production.
       ``(ii) Primary aluminum production.
       ``(iii) Ammonia manufacturing.
       ``(iv) Cement production, excluding grinding-only 
     operations.
       ``(v) Hydrochlorofluorocarbon production.
       ``(vi) Lime manufacturing.
       ``(vii) Nitric acid production.
       ``(viii) Petroleum refining.
       ``(ix) Phosphoric acid production.
       ``(x) Silicon carbide production.
       ``(xi) Soda ash production.
       ``(xii) Titanium dioxide production.
       ``(xiii) Coal-based liquid or gaseous fuel production.
       ``(G) Any stationary source in the chemical or 
     petrochemical sector that, in 2008 or any subsequent year--
       ``(i) produces acrylonitrile, carbon black, ethylene, 
     ethylene dichloride, ethylene oxide, or methanol; or
       ``(ii) produces a chemical or petrochemical product if 
     producing that product results in annual combustion plus 
     process emissions of 25,000 or more tons of carbon dioxide 
     equivalent.
       ``(H) Any stationary source that--
       ``(i) is in one of the following industrial sectors: 
     ethanol production; ferroalloy production; fluorinated gas 
     production; food processing; glass production; hydrogen 
     production; iron and steel production; lead production; pulp 
     and paper manufacturing; and zinc production; and
       ``(ii) has emitted 25,000 or more tons of carbon dioxide 
     equivalent in 2008 or any subsequent year.
       ``(I) Any fossil fuel-fired combustion device (such as a 
     boiler) or grouping of such devices that--
       ``(i) is all or part of an industrial source not specified 
     in subparagraph (D), (F), (G), or (H); and
       ``(ii) has emitted 25,000 or more tons of carbon dioxide 
     equivalent in 2008 or any subsequent year.
       ``(J) Any natural gas local distribution company that (or 
     any group of 2 or more affiliated natural gas local 
     distribution companies that, in the aggregate), in 2008 or 
     any subsequent year, delivers 460,000,000 cubic feet or more 
     of natural gas, and any other gas meeting the specifications 
     for commingling with natural gas for purposes of delivery, to 
     customers that are not covered entities.
       ``(14) Crediting period.--The term `crediting period' means 
     the period with respect to which an offset project is 
     eligible to earn offset credits under part D, as determined 
     under section 734(c).
       ``(15) Designated representative.--The term `designated 
     representative' means, with respect to a covered entity, a 
     reporting entity (as defined in section 713), an offset 
     project developer, or any other entity receiving or holding 
     allowances, offset credits, or term offset credits under this 
     title, an individual authorized, through a certificate of 
     representation submitted to the Administrator by the owners 
     and operators or similar entity official, to represent the 
     owners and operators or similar entity official in all 
     matters pertaining to this title (including the holding, 
     transfer, or disposition of allowances or offset credits), 
     and to make all submissions to the Administrator under this 
     title.
       ``(16) Developing country.--The term `developing country' 
     means a country eligible to receive official development 
     assistance according to the income guidelines of the 
     Development Assistance Committee of the Organization for 
     Economic Cooperation and Development.
       ``(17) Domestic offset credit.--For purposes of part D, the 
     term `domestic offset credit' means an offset credit issued 
     under part D, other than an international offset credit. For 
     purposes of part C, the term means any offset credit issued 
     under the American Clean Energy and Security Act of 2009, or 
     the amendments made thereby. The term does not include a term 
     offset credit.
       ``(18) Electricity source.--The term `electricity source' 
     means a stationary source that includes one or more utility 
     units.
       ``(19) Emission.--The term `emission' means the release of 
     a greenhouse gas into the ambient air. Such term does not 
     include gases that are captured and geologically sequestered, 
     except to the extent that they are later released into the 
     atmosphere, in which case compliance must be demonstrated 
     pursuant to section 722(b)(5).
       ``(20) Emission allowance.--The term `emission allowance' 
     means an allowance established under section 721(a) or 
     section 726(g)(2) or (h)(1)(C).
       ``(21) Fair market value.--The term `fair market value' 
     means the average daily closing price on registered exchanges 
     or, if such a price is unavailable, the average price as 
     determined by the Administrator, during a

[[Page 16608]]

     specified time period, of an emission allowance.
       ``(22) Federal land.--The term `Federal land' means land 
     that is owned by the United States, other than land held in 
     trust for an Indian or Indian tribe.
       ``(23) Fossil fuel.--The term `fossil fuel' means natural 
     gas, petroleum, or coal, or any form of solid, liquid, or 
     gaseous fuel derived from such material, including consumer 
     products that are derived from such materials and are 
     combusted.
       ``(24) Fossil fuel-fired.--The term `fossil fuel-fired' 
     means powered by combustion of fossil fuel, alone or in 
     combination with any other fuel, regardless of the percentage 
     of fossil fuel consumed.
       ``(25) Fugitive emissions.--The term `fugitive emissions' 
     means emissions from leaks, valves, joints, or other small 
     openings in pipes, ducts, or other equipment, or from vents.
       ``(26) Geologic sequestration; geologically sequestered.--
     The terms `geologic sequestration' and `geologically 
     sequestered' mean the sequestration of greenhouse gases in 
     subsurface geologic formations for purposes of permanent 
     storage.
       ``(27) Geologic sequestration site.--The term `geologic 
     sequestration site' means a site where carbon dioxide is 
     geologically sequestered.
       ``(28) Greenhouse gas.--The term `greenhouse gas' means any 
     gas described in section 711(a) or designated under section 
     711, except to the extent that it is regulated under title 
     VI.
       ``(30) Hold.--The term `hold' means, with respect to an 
     allowance, offsets credit, or term offset credit, to have in 
     the appropriate account in the allowance tracking system 
     established under section 724(d), or submit to the 
     Administrator for recording in such account.
       ``(31) Industrial source.--The term `industrial source' 
     means any stationary source that--
       ``(A) is not an electricity source; and
       ``(B) is in--
       ``(i) the manufacturing sector (as defined in North 
     American Industrial Classification System codes 31, 32, and 
     33); or
       ``(ii) the natural gas processing or natural gas pipeline 
     transportation sector (as defined in North American 
     Industrial Classification System codes 211112 and 486210).
       ``(32) International emission allowance.--The term 
     `international emission allowance' means a tradable 
     authorization to emit 1 ton of carbon dioxide equivalent of 
     greenhouse gas that is issued by a national or supranational 
     foreign government pursuant to a qualifying international 
     program designated by the Administrator pursuant to section 
     728(a).
       ``(33) International offset credit.--The term 
     `international offset credit' means an offset credit issued 
     by the Administrator under section 743.
       ``(34) Leakage.--Except as provided in part F, the term 
     `leakage' means a significant increase in greenhouse gas 
     emissions, or significant decrease in sequestration, which is 
     caused by an offset project or activities under part E and 
     occurs outside the boundaries of the offset project or the 
     relevant program or project under part E.
       ``(35) Mineral sequestration.--The term `mineral 
     sequestration' means sequestration of carbon dioxide from the 
     atmosphere by capturing carbon dioxide into a permanent 
     mineral, such as the aqueous precipitation of carbonate 
     minerals that results in the storage of carbon dioxide in a 
     mineral form.
       ``(36) Natural gas liquid.--The term `natural gas liquid' 
     means ethane, butane, isobutane, natural gasoline, and 
     propane.
       ``(37) Natural gas local distribution company.--The term 
     `natural gas local distribution company' has the meaning 
     given the term `local distribution company' in section 2(17) 
     of the Natural Gas Policy Act of 1978 (15 U.S.C. 3301(17)).
       ``(38) Offset credit.--For purposes of this section and 
     part D, the term `offset credit' means an offset credit 
     issued under part D. For purposes of part C, the term means 
     any offset credit issued under the American Clean Energy and 
     Security Act of 2009, or the amendments made thereby. The 
     term does not include a term offset credit.
       ``(39) Offset project.--The term `offset project' means a 
     project or activity that reduces or avoids greenhouse gas 
     emissions, or sequesters greenhouse gases, and for which 
     offset credits are or may be issued under part D.
       ``(40) Offset project developer.--The term `offset project 
     developer' means the individual or entity designated as the 
     offset project developer in an offset project approval 
     petition under section 735(c)(1).
       ``(41) Petroleum.--The term `petroleum' includes crude oil, 
     tar sands, oil shale, and heavy oils.
       ``(42) Renewable biomass.--The term `renewable biomass' 
     means any of the following:
       ``(A) Materials, pre-commercial thinnings, or removed 
     invasive species from National Forest System land and public 
     lands (as defined in section 103 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1702)), including those 
     that are byproducts of preventive treatments (such as trees, 
     wood, brush, thinnings, chips, and slash), that are removed 
     as part of a federally recognized timber sale, or that are 
     removed to reduce hazardous fuels, to reduce or contain 
     disease or insect infestation, or to restore ecosystem 
     health, and that are--
       ``(i) not from components of the National Wilderness 
     Preservation System, Wilderness Study Areas, Inventoried 
     Roadless Areas, old growth stands, late-successional stands 
     (except for dead, severely damaged, or badly infested trees), 
     components of the National Landscape Conservation System, 
     National Monuments, National Conservation Areas, Designated 
     Primitive Areas, or Wild and Scenic Rivers corridors;
       ``(ii) harvested in environmentally sustainable quantities, 
     as determined by the appropriate Federal land manager; and
       ``(iii) harvested in accordance with Federal and State law, 
     and applicable land management plans.
       ``(B) Any organic matter that is available on a renewable 
     or recurring basis from non-Federal land or land belonging to 
     an Indian or Indian tribe that is held in trust by the United 
     States or subject to a restriction against alienation imposed 
     by the United States, including--
       ``(i) renewable plant material, including--

       ``(I) feed grains;
       ``(II) other agricultural commodities;
       ``(III) other plants and trees; and
       ``(IV) algae; and

       ``(ii) waste material, including--

       ``(I) crop residue;
       ``(II) other vegetative waste material (including wood 
     waste and wood residues);
       ``(III) animal waste and byproducts (including fats, oils, 
     greases, and manure);
       ``(IV) construction waste; and
       ``(V) food waste and yard waste.

       ``(C) Residues and byproducts from wood, pulp, or paper 
     products facilities.''.
       ``(43) Retire.--The term `retire', with respect to an 
     ``allowance, offset credit, or term offset credit, 
     established or issued under the American Clean Energy and 
     Security Act of 2009 or the amendments made thereby, means to 
     disqualify such allowance or offset credit for any subsequent 
     use under this title, regardless of whether the use is a 
     sale, exchange, or submission of the allowance, offset 
     credit, or term offset credit to satisfy a compliance 
     obligation.
       ``(44) Reversal.--The term `reversal' means an intentional 
     or unintentional loss of sequestered greenhouse gases to the 
     atmosphere.
       ``(45) Sequestered and sequestration.--The terms 
     `sequestered' and `sequestration' mean the separation, 
     isolation, or removal of greenhouse gases from the 
     atmosphere, as determined by the Administrator. The terms 
     include biological, geologic, and mineral sequestration, but 
     do not include ocean fertilization techniques.
       ``(46) Stationary source.--The term `stationary source' 
     means any integrated operation comprising any plant, 
     building, structure, or stationary equipment, including 
     support buildings and equipment, that is located within one 
     or more contiguous or adjacent properties, is under common 
     control of the same person or persons, and emits or may emit 
     a greenhouse gas.
       ``(47) Strategic reserve allowance.--The term `strategic 
     reserve allowance' means an emission allowance reserved for, 
     transferred to, or deposited in the strategic reserve under 
     section 726.
       ``(48) Ton.--The term `ton' means metric ton.
       ``(49) Uncapped emissions.--The term `uncapped emissions' 
     means emissions of greenhouse gases emitted after December 
     31, 2011, that are not capped emissions.
       ``(50) United states greenhouse gas emissions.--The term 
     `United States greenhouse gas emissions' means the total 
     quantity of annual greenhouse gas emissions from the United 
     States, as calculated by the Administrator and reported to 
     the United Nations Framework Convention on Climate Change 
     Secretariat.
       ``(51) Utility unit.--The term `utility unit' means a 
     combustion device that, on January 1, 2009, or any date 
     thereafter, is fossil fuel-fired and serves a generator that 
     produces electricity for sale, unless such combustion device, 
     during the 12-month period starting the later of January 1, 
     2009, or the commencement of commercial operation and each 
     calendar year starting after such later date--
       ``(A) is part of an integrated cycle system that 
     cogenerates steam and electricity during normal operation and 
     that supplies one-third or less of its potential electric 
     output capacity and 25 MW or less of electrical output for 
     sale; or
       ``(B) combusts materials of which more than 95 percent is 
     municipal solid waste on a heat input basis.
       ``(52) Vintage year.--The term `vintage year' means the 
     calendar year for which an emission allowance is established 
     under section 721(a) or which is assigned to an emission 
     allowance under section 726(g)(3)(A), except that the vintage 
     year for a strategic reserve allowance shall be the year in 
     which such allowance is purchased at auction.''.

[[Page 16609]]



                 Subtitle B--Disposition of Allowances

     SEC. 321. DISPOSITION OF ALLOWANCES FOR GLOBAL WARMING 
                   POLLUTION REDUCTION PROGRAM.

       Title VII of the Clean Air Act, as added by section 311 of 
     this Act, is amended by adding at the end the following part:

                  ``PART H--DISPOSITION OF ALLOWANCES

     ``SEC. 781. ALLOCATION OF ALLOWANCES FOR SUPPLEMENTAL 
                   REDUCTIONS.

       ``(a) In General.--The Administrator shall allocate for 
     each vintage year the following percentage of the emission 
     allowances established under section 721(a), for distribution 
     in accordance with part E:
       ``(1) For vintage years 2012 through 2025, 5 percent.
       ``(2) For vintage years 2026 through 2030, 3 percent.
       ``(3) For vintage years 2031 through 2050, 2 percent.
       ``(b) Adjustment.--The Administrator shall modify the 
     percentages set forth in subsection (a) as necessary to 
     ensure the achievement of the annual supplemental emission 
     reduction objective for 2020, and the cumulative reduction 
     objective through 2025, set forth in section 753(b)(1).
       ``(c) Carryover.--If the Administrator has not distributed 
     all of the allowances allocated pursuant to this section for 
     a given vintage year by the end of that year, all such 
     undistributed emission allowances shall, in accordance with 
     section 782(s), be exchanged for allowances from the 
     following vintage year and treated as part of the allocation 
     for supplemental reductions under this section for that later 
     vintage year.

     ``SEC. 782. ALLOCATION OF EMISSION ALLOWANCES.

       ``(a) Electricity Consumers.--(1) The Administrator shall 
     allocate emission allowances for the benefit of electricity 
     consumers, to be distributed in accordance with section 
     783(b), (c), and (d) in the following amounts:
       ``(A) For vintage years 2012 and 2013: 43.75 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(B) For vintage years 2014 and 2015: 38.89 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(C) For vintage years 2016 through 2025: 35.00 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(D) For vintage year 2026: 28 percent of the emission 
     allowances established for that year under section 721(a).
       ``(E) For vintage year 2027: 21 percent of the emission 
     allowances established for that year under section 721(a).
       ``(F) For vintage year 2028: 14 percent of the emission 
     allowances established for that year under section 721(a).
       ``(G) For vintage year 2029: 7 percent of the emission 
     allowances established for that year under section 721(a).
       ``(2) The Administrator shall allocate emission allowances 
     for energy efficiency, renewable electricity, and low income 
     ratepayer assistance programs administered by small 
     electricity local distribution companies, to be distributed 
     in accordance with section 783(e) in the following amounts:
       ``(A) For vintage years 2012 through 2025: 0.5 percent of 
     the emission allowances established each year under section 
     721(a).
       ``(B) For vintage year 2026: 0.4 percent of the emission 
     allowances established for that year under section 721(a).
       ``(C) For vintage year 2027: 0.3 percent of the emission 
     allowances established for that year under section 721(a).
       ``(D) For vintage year 2028: 0.2 percent of the emission 
     allowances established for that year under section 721(a).
       ``(E) For vintage year 2029: 0.1 percent of the emission 
     allowances established for that year under section 721(a).
       ``(3) For vintage year 2012, the Administrator shall 
     allocate 0.35 percent of emission allowances established for 
     such year under section 721(a) to avoid disincentives to the 
     continued use of existing energy-efficient cogeneration 
     facilities at industrial parks, to be distributed in 
     accordance with section 783(f).
       ``(b) Natural Gas Consumers.--The Administrator shall 
     allocate emission allowances for the benefit of natural gas 
     consumers to be distributed in accordance with section 784 in 
     the following amounts:
       ``(1) For vintage years 2016 through 2025, 9 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(2) For vintage year 2026, 7.2 percent of the emission 
     allowances established for that year under section 721(a).
       ``(3) For vintage year 2027, 5.4 percent of the emission 
     allowances established for that year under section 721(a).
       ``(4) For vintage year 2028, 3.6 percent of the emission 
     allowances established for that year under section 721(a).
       ``(5) For vintage year 2029, 1.8 percent of the emission 
     allowances established for that year under section 721(a).
       ``(c) Home Heating Oil and Propane Consumers.--The 
     Administrator shall allocate emission allowances for the 
     benefit of home heating oil and propane consumers to be 
     distributed in accordance with section 785 in the following 
     amounts:
       ``(1) For vintage years 2012 and 2013, 1.875 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(2) For vintage years 2014 and 2015, 1.67 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(3) For vintage years 2016 through 2025, 1.5 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(4) For vintage year 2026, 1.2 percent of the emission 
     allowances established for that year under section 721(a).
       ``(5) For vintage year 2027, 0.9 percent of the emission 
     allowances established for that year under section 721(a).
       ``(6) For vintage year 2028, 0.6 percent of the emission 
     allowances established for that year under section 721(a).
       ``(7) For vintage year 2029, 0.3 percent of the emission 
     allowances established for that year under section 721(a).
       ``(d) Low Income Consumers.--For each vintage year starting 
     in 2012, the Administrator shall auction, pursuant to section 
     791, 15 percent of the emission allowances established for 
     each year under section 721(a), with the proceeds used for 
     the benefit of low income consumers to fund the program set 
     forth in subtitle C of title IV of American Clean Energy and 
     Security Act of 2009 and the amendments made thereby.
       ``(e) Trade-vulnerable Industries.--
       ``(1) In general.--The Administrator shall allocate 
     emission allowances to energy-intensive, trade-exposed 
     entities, to be distributed in accordance with section 765, 
     in the following amounts:
       ``(A) For vintage years 2012 and 2013, up to 2.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage year 2014, up to 15 percent of the 
     emission allowances established for that year under section 
     721(a).
       ``(C) For vintage year 2015, up to the product of--
       ``(i) the amount specified in paragraph (2); multiplied by
       ``(ii) the quantity of emission allowances established for 
     2015 under section 721(a) divided by the quantity of emission 
     allowances established for 2014 under section 721(a).
       ``(D) For vintage year 2016, up to the product of--
       ``(i) the amount specified in paragraph (3); multiplied by
       ``(ii) the quantity of emission allowances established for 
     2015 under section 721(a) divided by the quantity of emission 
     allowances established for 2014 under section 721(a).
       ``(E) For vintage years 2017 through 2025, up to the 
     product of--
       ``(i) the amount specified in paragraph (4); multiplied by
       ``(ii) the quantity of emission allowances established for 
     that year under section 721(a) divided by the quantity of 
     emission allowances established for 2016 under section 
     721(a).
       ``(F) For vintage years 2026 through 2050, up to the 
     product of the amount specified in paragraph (4)--
       ``(i) multiplied by the quantity of emission allowances 
     established for the applicable year during 2026 through 2050 
     under section 721(a) divided by the quantity of emission 
     allowances established for 2016 under section 721(a); and
       ``(ii) multiplied by a factor that shall equal 90 percent 
     for 2026 and decline 10 percent for each year thereafter 
     until reaching zero, except that, if the President modifies a 
     percentage for a year under subparagraph (A) of section 
     767(c)(3), the highest percentage the President applies for 
     any sector under that subparagraph for that year (not 
     exceeding 100 percent) shall be used for that year instead of 
     the factor otherwise specified in this clause.
       ``(2) Carryover.--After the Administrator distributes 
     emission allowances pursuant to section 765 for any given 
     vintage year, any emission allowances allocated to energy-
     intensive, trade-exposed entities pursuant to this subsection 
     that have not been so distributed shall, in accordance with 
     subsection (s), be exchanged for allowances from the 
     following vintage year and treated as part of the allocation 
     to such entities for that later vintage year.
       ``(f) Deployment of Carbon Capture and Sequestration 
     Technology.--
       ``(1) Annual allocation.--The Administrator shall allocate 
     emission allowances for the deployment of carbon capture and 
     sequestration technology to be distributed in accordance with 
     section 786 in the following amounts:
       ``(A) For vintage years 2014 through 2017, 1.75 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage years 2018 and 2019, 4.75 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(C) For vintage years 2020 through 2050, 5 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(2) Carryover.--If the Administrator has not distributed 
     all of the allowances allocated pursuant to this subsection 
     for a given vintage year by the end of that year, all such 
     undistributed emission allowances shall, in accordance with 
     subsection (s), be exchanged for allowances from the 
     following vintage year and treated as part of the allocation 
     for the deployment of carbon capture and sequestration 
     technology under this subsection for that later vintage year.
       ``(g) Investment in Energy Efficiency and Renewable 
     Energy.--The Administrator shall allocate emission allowances 
     to

[[Page 16610]]

     invest in energy efficiency and renewable energy as follows:
       ``(1) To be distributed in accordance with section 132 of 
     the American Clean Energy and Security Act of 2009 in the 
     following amounts:
       ``(A) For vintage years 2012 through 2015, 9.5 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage years 2016 through 2017, 6.5 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(C) For vintage years 2018 through 2021, 5.5 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(D) For vintage years 2022 through 2025, 1.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(E) For vintage years 2026 through 2050, 4.5 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(F) At the same time allowances are distributed under 
     subparagraph (D) for each of the vintage years 2022 through 
     2025, 3.55 percent of emission allowances established under 
     section 721(a) for the vintage year four years after that 
     vintage year shall also be distributed (which shall be in 
     addition to the emission allowances distributed under 
     subparagraph (E)).
       ``(2) To be distributed in accordance with section 304 of 
     the Energy Conservation and Production Act, as amended by 
     section 201 of the American Clean Energy and Security Act of 
     2009, for each vintage year from 2012 through 2050, 0.5 
     percent of emission allowances established for that year 
     under section 721(a).
       ``(3) To be distributed among the States in accordance with 
     the formula in section 132(b) of the American Clean Energy 
     and Security Act of 2009 and to be used exclusively for the 
     purposes of section 202 of the American Clean Energy and 
     Security Act of 2009 in the following amounts:
       ``(A) For vintage years 2012 through 2017, 0.05 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage years 2018 through 2050, 0.03 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(h) Energy Research and Development.--
       ``(1) Energy innovation hubs.--For vintage years 2012 
     through 2050, the Administrator shall allocate 0.45 percent 
     of the emission allowances established under section 721(a) 
     to be distributed to Energy Innovation Hubs in accordance 
     with section 171 of the American Clean Energy and Security 
     Act of 2009.
       ``(2) Advanced energy research.--For vintage years 2012 
     through 2050, the Administrator shall allocate 1.05 percent 
     of the emission allowances established under section 721(a) 
     for the Advanced Research Project Agency-Energy to be 
     distributed in accordance with section 172 of the American 
     Clean Energy and Security Act of 2009.
       ``(i) Investment in Clean Vehicle Technology.--The 
     Administrator shall allocate emission allowances to invest in 
     the development and deployment of clean vehicles, to be 
     distributed in accordance with section 124 of the American 
     Clean Energy and Security Act of 2009 in the following 
     amounts:
       ``(1) For vintage years 2012 through 2017, 3 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(2) For vintage years 2018 through 2025, 1 percent of the 
     emission allowances established for each year under section 
     721(a).
       ``(j) Domestic Fuel Production.--For vintage years 2014 
     through 2026, the Administrator shall allocate and distribute 
     according to section 787--
       ``(1) 2 percent of the emission allowances established for 
     each year under section 721(a) to domestic petroleum 
     refineries that are covered entities pursuant to section 
     700(13)(F)(viii), including small business refiners; and
       ``(2) an additional 0.25 percent of the emissions 
     allowances established for each year under section 721(a) to 
     small business refiners that are covered entities pursuant to 
     section 700(13)(F)(viii).
       ``(k) Investment in Workers.--The Administrator shall 
     auction pursuant to section 791 emission allowances for the 
     benefit of workers pursuant to part 2 of subtitle B of the 
     American Clean Energy and Security Act of 2009 in the 
     following amounts, and shall deposit into the Climate Change 
     Worker Adjustment Assistance Fund established pursuant to 
     section 793, and report to the Secretary of Labor on, the 
     proceeds from the sale of these allowances:
       ``(A) For vintage years 2012 through 2021, 0.5 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage years 2022 through 2050, 1.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
     All amounts deposited into the fund shall be available to the 
     Secretary of Labor until expended to carry out part 2 of 
     subtitle B of title IV of the American Clean Energy and 
     Security Act of 2009. Of the amounts deposited, not more than 
     $10,000,000 shall be available to the Secretary of Labor for 
     Federal administration costs of such part 2 each fiscal year.
       ``(2) The Administrator shall auction, pursuant to section 
     791, 0.75 percent of the emission allowances established for 
     each of vintage years 2012 and 2013 under section 721(a), and 
     shall deposit the proceeds in the Energy Efficiency and 
     Renewable Energy Worker Training Fund established by section 
     422 of the American Clean Energy and Security Act of 2009.
       ``(l) Domestic Adaptation.--The Administrator shall 
     allocate emission allowances for domestic adaptation as 
     follows:
       ``(1) To be distributed in accordance with section 453 of 
     the American Clean Energy and Security Act of 2009 in the 
     following amounts:
       ``(A) For vintage years 2012 through 2021, 0.9 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage years 2022 through 2026, 1.9 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(C) For vintage years 2027 through 2050, 3.9 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(2) For vintage year 2012 and thereafter, the 
     Administrator shall auction, pursuant to section 791, 0.1 
     percent of the emission allowances established for each year 
     under section 721(a), and shall deposit the proceeds in the 
     Climate Change Health Protection and Promotion Fund 
     established by section 467 of the American Clean Energy and 
     Security Act of 2009.
       ``(m) Wildlife and Natural Resource Adaptation.--The 
     Administrator shall allocate emission allowances for wildlife 
     and natural resource adaptation as follows:
       ``(1) To be distributed to State agencies in accordance 
     with section 480(a) of the American Clean Energy and Security 
     Act of 2009 in the following amounts:
       ``(A) For vintage years 2012 through 2021, 0.385 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage years 2022 through 2026, 0.77 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(C) For vintage years 2027 through 2050, 1.54 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(2) To be auctioned pursuant to section 791, with the 
     proceeds to be deposited in the Natural Resources Climate 
     Change Adaptation Fund established pursuant to section 
     480(b), in the following amounts:
       ``(A) For vintage years 2012 through 2021, 0.615 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(B) For vintage years 2022 through 2026, 1.23 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(C) For vintage years 2027 through 2050, 2.46 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(n) International Adaptation.--The Administrator shall 
     allocate emission allowances for international adaptation to 
     be distributed in accordance with part 2 of subtitle E of 
     title IV of the American Clean Energy and Security Act of 
     2009 in the following amounts:
       ``(1) For vintage years 2012 through 2021, 1.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(2) For vintage years 2022 through 2026, 2.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(3) For vintage years 2027 through 2050, 4.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(o) International Clean Technology Deployment.--The 
     Administrator shall allocate emission allowances for 
     international clean technology deployment for distribution in 
     accordance with subtitle D of title IV of the American Clean 
     Energy and Security Act of 2009 in the following amounts:
       ``(1) For vintage years 2012 through 2021, 1.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(2) For vintage years 2022 through 2026, 2.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(3) For vintage years 2027 through 2050, 4.0 percent of 
     the emission allowances established for each year under 
     section 721(a).
       ``(p) Release of Future Allowances.--The Administrator 
     shall make future year allowances available by auctioning 
     allowances, pursuant to section 791, in the following 
     amounts:
       ``(1) In each of calendar years 2014 through 2019, a string 
     of 0.70 billion allowances with vintage years 12 to 17 years 
     after the year of the auction, with an equal number of 
     allowances from each vintage year in the string.
       ``(2) In each of calendar years 2020 through 2025, a string 
     of 0.50 billion allowances with vintage years 12 to 17 years 
     after the year of the auction, with an equal number of 
     allowances from each vintage year in the string.
       ``(3) In each of calendar years 2026 through 2030, a string 
     of 0.3 billion allowances with vintage years 12 to 17 years 
     after the year of the auction, with an equal number of 
     allowances from each vintage year in the string.
       ``(q) Deficit Reduction.--
       ``(1) For each of vintage years 2012 through 2025, any 
     allowances not allocated for distribution or auction pursuant 
     to section 781 or subsections (s) and (t) of this section, or 
     disbursed pursuant to section 790, shall be auctioned by the 
     Administrator pursuant to section 791 and the proceeds shall 
     be deposited into the Treasury.
       ``(2) Unless otherwise specified, any allowances allocated 
     pursuant to subsections (s) and (t) and not distributed by 
     March 31 of the calendar year following the allowance's 
     vintage year, shall be auctioned by the Administrator and the 
     proceeds shall be deposited into the Treasury.

[[Page 16611]]

       ``(3) For auctions conducted through calendar year 2020 
     pursuant to subsection (p), the auction proceeds shall be 
     deposited into the Treasury.
       ``(r) Climate Change Consumer Refund.--
       ``(1) For each of vintage years 2026 through 2050, the 
     Administrator shall auction the following allowances 
     established under section 721(a) and deposit the proceeds 
     into the Climate Change Consumer Refund Account:
       ``(A) Any allowances not allocated for distribution or 
     auction pursuant to section 781 or subsections (a) through 
     (p) of this section, or disbursed pursuant to section 790.
       ``(B) Unless otherwise specified, any allowances allocated 
     pursuant to subsections (a) through (o) and not distributed 
     by March 31 of the calendar year following the allowance's 
     vintage year.
       ``(2) For auctions conducted pursuant to subsection (p) in 
     calendar years 2021 and thereafter, the Administrator shall 
     place the proceeds from the sales of the these allowances 
     into the Climate Change Consumer Refund Account.
       ``(3) Funds deposited into the Climate Change Consumer 
     Refund Account shall be used as specified in section 789 and 
     shall be available for expenditure, without further 
     appropriation or fiscal year limitation.
       ``(s) Treatment of Carryover Allowances.--
       ``(1) In general.--If there are undistributed allowances 
     from a vintage year for supplemental reductions pursuant to 
     section 781(c), energy-intensive, trade-exposed industries 
     pursuant to subsection (e)(2) of this section, deployment of 
     carbon capture and sequestration technology pursuant to 
     subsection (f)(2) of this section, or supplemental 
     agriculture and renewable energy pursuant to subsection 
     (u)(2) of this section, the Administrator shall--
       ``(A) use the undistributed allowances to increase for the 
     same vintage year--
       ``(i) the allocation of allowances to be auctioned for 
     deficit reduction pursuant to subsection (q) or for consumer 
     refunds pursuant to subsection (r);
       ``(ii) the allocation of allowances to be auctioned for low 
     income consumers pursuant to subsection (d); or
       ``(iii) a combination of both; and
       ``(B) except as provided in paragraph (2)--
       ``(i) decrease by the same amount for the following vintage 
     year the allocation for the purpose for which the allocation 
     was increased pursuant to subparagraph (A); and
       ``(ii) increase by the same amount for the following 
     vintage year the allocation for the purpose for which the 
     undistributed allowances were originally allocated.
       ``(2) Excess undistributed allowances.--(A) For each 
     vintage year for which this subsection applies, the 
     Administrator shall determine whether--
       ``(i) the total quantity of undistributed allowances for 
     that vintage year that were allocated pursuant to section 
     781(c), and subsections (e)(2), (f)(2), and (u)(2) of this 
     section, exceeds
       ``(ii) the total quantity of allowances allocated pursuant 
     to subsection (d), (q) and (r) for the following vintage 
     year, decreased by the quantity of allowances for that 
     following vintage year set aside for the reserve established 
     by section 791(f).
       ``(B) If the Administrator determines under subparagraph 
     (A) that the quantity described in subparagraph (A)(i) 
     exceeds the quantity described in subparagraph (A)(ii), 
     paragraph (1)(B)(ii) of this subsection shall not apply. 
     Instead, for each purpose described in section 781(c), or 
     subsections (e)(2), (f)(2), and (u)(2) of this section for 
     which undistributed allowances for a given vintage year were 
     allocated, the Administrator shall increase the allocation 
     for the following vintage year by the amount that is the 
     product of--
       ``(i) the number of undistributed allowances for that 
     purpose, times
       ``(ii) the quantity described in subparagraph (A)(ii) 
     divided by the quantity described in subparagraph (A)(i).
       ``(t) Compensation for Early Actors.--For vintage year 
     2012, the Administrator shall allocate for compensation for 
     early actors 1 percent of emission allowances established 
     under section 721(a), to be distributed in accordance with 
     section 795 of the American Clean Energy and Security Act of 
     2009.
       ``(u) Supplemental Agriculture and Renewable Energy.--
       ``(1) In general.--For vintage years 2012 through 2016, the 
     Administrator shall allocate 0.28 percent of emission 
     allowances established under section 721(a), to be 
     distributed in accordance with section 788 of the American 
     Clean Energy and Security Act of 2009.
       ``(2) Carryover.--After the Administrator distributes 
     emission allowances pursuant to section 788 for any given 
     vintage year, any emission allowances allocated to 
     supplemental agriculture and renewable energy pursuant to 
     this subsection that have not been so distributed shall, in 
     accordance with subsection (s), be exchanged for allowances 
     from the following vintage year and treated as part of the 
     allocation to such entities for that later vintage year.

     ``SEC. 783. ELECTRICITY CONSUMERS.

       ``(a) Definitions.--For purposes of this section:
       ``(1) Coal-fueled unit.--The term `coal-fueled unit' means 
     a utility unit that derives at least 85 percent of its heat 
     input from coal, petroleum coke, or any combination of these 
     2 fuels.
       ``(2) Electricity local distribution company.--The term 
     `electricity local distribution company' means an electric 
     utility--
       ``(A) that has a legal, regulatory, or contractual 
     obligation to deliver electricity directly to retail 
     consumers in the United States, regardless of whether that 
     entity or another entity sells the electricity as a commodity 
     to those retail consumers; and
       ``(B) the retail rates of which, except in the case of an 
     electric cooperative, are regulated or set by--
       ``(i) a State regulatory authority;
       ``(ii) a State or political subdivision thereof (or an 
     agency or instrumentality of, or corporation wholly owned by, 
     either of the foregoing); or
       ``(iii) an Indian tribe pursuant to tribal law.
       ``(3) Electricity savings; renewable energy resource.--The 
     terms `electricity savings' and `renewable energy resource' 
     shall have the meaning given those terms in section 610 of 
     the Public Utility Regulatory Policies Act of 1978 (as added 
     by section 101 of the American Clean Energy and Security Act 
     of 2009).
       ``(4) Independent power production facility.--The term 
     `independent power production facility' means a facility--
       ``(A) that is used for the generation of electric energy, 
     at least 80 percent of which is sold at wholesale; and
       ``(B) the sales of the output of which are not subject to 
     retail rate regulation or setting of retail rates by--
       ``(i) a State regulatory authority;
       ``(ii) a State or political subdivision thereof (or an 
     agency or instrumentality of, or corporation wholly owned by, 
     either of the foregoing);
       ``(iii) an electric cooperative; or
       ``(iv) an Indian tribe pursuant to tribal law.
       ``(5) Long-term contract generator.--The term `long-term 
     contract generator' means a qualifying small power production 
     facility, a qualifying cogeneration facility ), an 
     independent power production facility, or a facility for the 
     production of electric energy for sale to others that is 
     owned and operated by an electric cooperative that is--
       ``(A) a covered entity; and
       ``(B) as of the date of enactment of this title--
       ``(i) a facility with 1 or more sales or tolling agreements 
     executed before March 1, 2007, that govern the facility's 
     electricity sales and provide for sales at a price (whether a 
     fixed price or a price formula) for electricity that does not 
     allow for recovery of the costs of compliance with the 
     limitation on greenhouse gas emissions under this title, 
     provided that such agreements are not between entities that 
     are affiliates of one another; or
       ``(ii) a facility consisting of 1 or more cogeneration 
     units that makes useful thermal energy available to an 
     industrial or commercial process with 1 or more sales 
     agreements executed before March 1, 2007, that govern the 
     facility's useful thermal energy sales and provide for sales 
     at a price (whether a fixed price or price formula) for 
     useful thermal energy that does not allow for recovery of the 
     costs of compliance with the limitation on greenhouse gas 
     emissions under this title, provided that such agreements are 
     not between entities that are affiliates of one another.
       ``(6) Merchant coal unit.--The term `merchant coal unit' 
     means a coal-fueled unit that--
       ``(A) is or is part of a covered entity;
       ``(B) is not owned by a Federal, State, or regional agency 
     or power authority; and
       ``(C) generates electricity solely for sale to others, 
     provided that all or a portion of such sales are made by a 
     separate legal entity that--
       ``(i) has a full or partial ownership or leasehold interest 
     in the unit, as certified in accordance with such 
     requirements as the Administrator shall prescribe; and
       ``(ii) is not subject to retail rate regulation or setting 
     of retail rates by--

       ``(I) a State regulatory authority;
       ``(II) a State or political subdivision thereof (or an 
     agency or instrumentality of, or corporation wholly owned by, 
     either of the foregoing);
       ``(III) an electric cooperative; or
       ``(IV) an Indian tribe pursuant to tribal law.

       ``(7) Merchant coal unit sales.--The term `merchant coal 
     unit sales' means sales to others of electricity generated by 
     a merchant coal unit that are made by the owner or 
     leaseholder described in paragraph (6)(C).
       ``(8) New coal-fueled unit.--The term `new coal-fueled 
     unit' means a coal-fueled unit that commenced operation on or 
     after January 1, 2009 and before January 1, 2013.
       ``(9) New merchant coal unit.--The term `new merchant coal 
     unit' means a merchant coal unit--
       ``(A) that commenced operation on or after January 1, 2009 
     and before January 1, 2013; and
       ``(B) the actual, on-site construction of which commenced 
     prior to January 1, 2009.

[[Page 16612]]

       ``(10) Qualifying small power production facility; 
     qualifying cogeneration facility.--The terms `qualifying 
     small power production facility' and `qualifying cogeneration 
     facility' have the meanings given those terms in section 
     3(17)(C) and 3(18)(B) of the Federal Power Act (16 U.S.C. 
     796(17)(C) and 796(18)(B)).
       ``(11) Small ldc.--The term `small LDC' means, for any 
     given year, an electricity local distribution company that 
     delivered less than 4,000,000 megawatt hours of electric 
     energy directly to retail consumers in the preceding year.
       ``(12) State regulatory authority.--The term `State 
     regulatory authority' has the meaning given that term in 
     section 3(17) of the Public Utility Regulatory Policies Act 
     of 1978 (16 U.S.C. 2602(17)).
       ``(13) Useful thermal energy.--The term `useful thermal 
     energy'has the meaning given that term in section 371(7) of 
     the Energy Policy and Conservation Act (42 U.S.C. 6341(7)).
       ``(b) Electricity Local Distribution Companies.--
       ``(1) Distribution of allowances.--Not later than September 
     30 of 2011 and each calendar year thereafter through 2028, 
     the Administrator shall distribute to electricity local 
     distribution companies for the benefit of retail ratepayers 
     the quantity of emission allowances allocated for the 
     following vintage year pursuant to section 782(a)(1). 
     Notwithstanding the preceding sentence, the Administrator 
     shall withhold from distribution under this subsection a 
     quantity of emission allowances equal to the lesser of 14.3 
     percent of the quantity of emission allowances allocated 
     under section 782(a)(1) for the relevant vintage year, or 105 
     percent of the emission allowances for the relevant vintage 
     year that the Administrator anticipates will be distributed 
     to merchant coal units and to long-term contract generators, 
     respectively, under subsections (c) and (d). If not required 
     by subsections (c) and (d) to distribute all of these 
     reserved allowances, the Administrator shall distribute any 
     remaining emission allowances to electricity local 
     distribution companies in accordance with this subsection.
       ``(2) Distribution based on emissions.--
       ``(A) In general.--For each vintage year, 50 percent of the 
     emission allowances available for distribution under 
     paragraph (1), after reserving allowances for distribution 
     under subsections (c) and (d), shall be distributed by the 
     Administrator among individual electricity local distribution 
     companies ratably based on the annual average carbon dioxide 
     emissions attributable to generation of electricity delivered 
     at retail by each such company during the base period 
     determined under subparagraph (B).
       ``(B) Base period.--
       ``(i) Vintage years 2012 and 2013.--For vintage years 2012 
     and 2013, an electricity local distribution company's base 
     period shall be--

       ``(I) calendar years 2006 through 2008; or
       ``(II) any 3 consecutive calendar years between 1999 and 
     2008, inclusive, that such company selects, provided that the 
     company timely informs the Administrator of such selection.

       ``(ii) Vintage years 2014 and thereafter.--For vintage 
     years 2014 and thereafter, the base period shall be--

       ``(I) the base period selected under clause (i); or
       ``(II) calendar year 2012, in the case of an electricity 
     local distribution company that owns, co-owns, or purchases 
     through a power purchase agreement (whether directly or 
     through a cooperative arrangement) a substantial portion of 
     the electricity generated by a new coal-fueled unit, provided 
     that such company timely informs the Administrator of its 
     election to use 2012 as its base period.

       ``(C) Determination of emissions.--
       ``(i) Determination for 1999-2008.--As part of the 
     regulations promulgated pursuant to subsection, the 
     Administrator, after consultation with the Energy Information 
     Administration, shall determine the average amount of carbon 
     dioxide emissions attributable to generation of electricity 
     delivered at retail by each electricity local distribution 
     company for each of the years 1999 through 2008, taking into 
     account entities' electricity generation, electricity 
     purchases, and electricity sales. In the case of any 
     electricity local distribution company that owns, co-owns, or 
     purchases through a power purchase agreement (whether 
     directly or through a cooperative arrangement) a substantial 
     portion of the electricity generated by, a coal-fueled unit 
     that commenced operation after January 1, 2006 and before 
     December 31, 2008, the Administrator shall adjust the 
     emissions attributable to such company's retail deliveries in 
     calendar years 2006 through 2008 to reflect the emissions 
     that would have occurred if the relevant unit were in 
     operation during the entirety of such 3-year period.
       ``(ii) Adjustments for new coal-fueled units.--

       ``(I) Vintage years 2012 and 2013.--For purposes of 
     emission allowance distributions for vintage years 2012 and 
     2013, in the case of any electricity local distribution 
     company that owns, co-owns, or purchases through a power 
     purchase agreement (whether directly or through a cooperative 
     arrangement) a substantial portion of the electricity 
     generated by, a new coal-fueled unit, the Administrator shall 
     adjust the emissions attributable to such company's retail 
     deliveries in the applicable base period to reflect the 
     emissions that would have occurred if the new coal-fueled 
     unit were in operation during such period.
       ``(II) Vintage year 2014 and thereafter.--Not later than 
     necessary for use in making emission allowance distributions 
     under this subsection for vintage year 2014, the 
     Administrator shall, for any electricity local distribution 
     company that owns, co-owns, or purchases through a power 
     purchase agreement (whether directly or through a cooperative 
     arrangement) a substantial portion of the electricity 
     generated by a new coal-fueled unit and has selected calendar 
     year 2012 as its base period pursuant to subparagraph 
     (B)(ii)(II), determine the amount of carbon dioxide emissions 
     attributable to generation of electricity delivered at retail 
     by such company in calendar year 2012. If the relevant new 
     coal-fueled unit was not yet operational by January 1, 2012, 
     the Administrator shall adjust such determination to reflect 
     the emissions that would have occurred if such unit were in 
     operation for all of calendar year 2012.

       ``(iii) Requirements.--Determinations under this paragraph 
     shall be as precise as practicable, taking into account the 
     nature of data currently available and the nature of markets 
     and regulation in effect in various regions of the country. 
     The following requirements shall apply to such 
     determinations:

       ``(I) The Administrator shall determine the amount of 
     fossil fuel-based electricity delivered at retail by each 
     electricity local distribution company, and shall use 
     appropriate emission factors to calculate carbon dioxide 
     emissions associated with the generation of such electricity.
       ``(II) Where it is not practical to determine the precise 
     fuel mix for the electricity delivered at retail by an 
     individual electricity local distribution company, the 
     Administrator may use the best available data, including 
     average data on a regional basis with reference to Regional 
     Transmission Organizations or regional entities (as that term 
     is defined in section 215(a)(7) of the Federal Power Act (16 
     U.S.C. 824o(a)(7)), to estimate fuel mix and emissions. 
     Different methodologies may be applied in different regions 
     if appropriate to obtain the most accurate estimate.

       ``(3) Distribution based on deliveries.--
       ``(A) Initial formula.--Except as provided in subparagraph 
     (B), for each vintage year, the Administrator shall 
     distribute 50 percent of the emission allowances available 
     for distribution under paragraph (1), after reserving 
     allowances for distribution under subsections (c) and (d), 
     among individual electricity local distribution companies 
     ratably based on each electricity local distribution 
     company's annual average retail electricity deliveries for 
     calendar years 2006 through 2008, unless the owner or 
     operator of the company selects 3 other consecutive years 
     between 1999 and 2008, inclusive, and timely notifies the 
     Administrator of its selection.
       ``(B) Updating.--Prior to distributing 2015 vintage year 
     emission allowances under this paragraph and at 3-year 
     intervals thereafter, the Administrator shall update the 
     distribution formula under this paragraph to reflect changes 
     in each electricity local distribution company's service 
     territory since the most recent formula was established. For 
     each successive 3-year period, the Administrator shall 
     distribute allowances ratably among individual electricity 
     local distribution companies based on the product of--
       ``(i) each electricity local distribution company's average 
     annual deliveries per customer during calendar years 2006 
     through 2008, or during the 3 alternative consecutive years 
     selected by such company under subparagraph (A); and
       ``(ii) the number of customers of such electricity local 
     distribution company in the most recent year in which the 
     formula is updated under this subparagraph.
       ``(4) Prohibition against excess distributions.--The 
     regulations promulgated under subsection shall ensure that, 
     notwithstanding paragraphs (2) and (3), no electricity local 
     distribution company shall receive a greater quantity of 
     allowances under this subsection than is necessary to offset 
     any increased electricity costs to such company's retail 
     ratepayers, including increased costs attributable to 
     purchased power costs, due to enactment of this title. Any 
     emission allowances withheld from distribution to an 
     electricity local distribution company pursuant to this 
     paragraph shall be distributed among all remaining 
     electricity local distribution companies ratably based on 
     emissions pursuant to paragraph (2).
       ``(5) Use of allowances.--
       ``(A) Ratepayer benefit.--Emission allowances distributed 
     to an electricity local distribution company under this 
     subsection shall be used exclusively for the benefit of 
     retail ratepayers of such electricity local distribution 
     company and may not be used to support electricity sales or 
     deliveries to entities or persons other than such ratepayers.

[[Page 16613]]

       ``(B) Ratepayer classes.--In using emission allowances 
     distributed under this subsection for the benefit of 
     ratepayers, an electricity local distribution company shall 
     ensure that ratepayer benefits are distributed--
       ``(i) among ratepayer classes ratably based on electricity 
     deliveries to each class; and
       ``(ii) equitably among individual ratepayers within each 
     ratepayer class, including entities that receive emission 
     allowances pursuant to part F.
       ``(C) Limitation.--In general, an electricity local 
     distribution company shall not use the value of emission 
     allowances distributed under this subsection to provide to 
     any ratepayer a rebate that is based solely on the quantity 
     of electricity delivered to such ratepayer. To the extent an 
     electricity local distribution company uses the value of 
     emission allowances distributed under this subsection to 
     provide rebates, it shall, to the maximum extent practicable, 
     provide such rebates with regard to the fixed portion of 
     ratepayers' bills or as a fixed credit or rebate on 
     electricity bills.
       ``(D) Industrial ratepayers.--Notwithstanding subparagraph 
     (C), if compliance with the requirements of this title 
     results (or would otherwise result) in an increase in 
     electricity costs for industrial retail ratepayers of any 
     given electricity local distribution company (including 
     entities that receive emission allowances pursuant to part 
     F), such electricity local distribution company--
       ``(i) shall pass through to industrial retail ratepayers 
     their ratable share (based on deliveries to each ratepayer 
     class) of the value of the emission allowances distributed to 
     such company under this subsection, to reduce electricity 
     cost impacts on such ratepayers; and
       ``(ii) may do so based on the quantity of electricity 
     delivered to individual industrial retail ratepayers.
       ``(E) Guidelines.--As part of the regulations promulgated 
     under subsection, the Administrator shall, after consultation 
     with State regulatory authorities, prescribe guidelines for 
     the implementation of the requirements of this paragraph. 
     Such guidelines shall include requirements to ensure that 
     industrial retail ratepayers (including entities that receive 
     emission allowances under part F) receive their ratable share 
     of the value of the allowances distributed to each 
     electricity local distribution company pursuant to this 
     subsection.
       ``(6) Regulatory proceedings.--
       ``(A) Requirement.--No electricity local distribution 
     company shall be eligible to receive emission allowances 
     under this subsection or subsection (e) unless the State 
     regulatory authority with authority over such company's 
     retail rates, or the entity with authority to regulate or set 
     retail electricity rates of an electricity local distribution 
     company not regulated by a State regulatory authority, has--
       ``(i) after public notice and an opportunity for comment, 
     promulgated a regulation or completed a rate proceeding (or 
     the equivalent, in the case of a ratemaking entity other than 
     a State regulatory authority) that provides for the full 
     implementation of the requirements of paragraph (5) of this 
     subsection and the requirements of subsection (e); and
       ``(ii) made available to the Administrator and the public a 
     report describing, in adequate detail, the manner in which 
     the requirements of paragraph (5) and the requirements of 
     subsection (e) will be implemented.
       ``(B) Updating.--The Administrator shall require, as a 
     condition of continued receipt of emission allowances under 
     this subsection by an electricity local distribution company, 
     that a new regulation be promulgated or rate proceeding be 
     completed , after public notice and an opportunity for 
     comment, and a new report be made available to the 
     Administrator and the public, pursuant to subparagraph (A), 
     not less frequently than every 5 years.
       ``(7) Plans and reporting.--
       ``(A) Regulations.--As part of the regulations promulgated 
     under subsection, the Administrator shall prescribe 
     requirements governing plans and reports to be submitted in 
     accordance with this paragraph.
       ``(B) Plans.--Not later than April 30 of 2011 and every 5 
     years thereafter through 2026, each electricity local 
     distribution company shall submit to the Administrator a 
     plan, approved by the State regulatory authority or other 
     entity charged with regulating tor setting the retail rates 
     of such company, describing such company's plans for the 
     disposition of the value of emission allowances to be 
     received pursuant to this subsection and subsection (e), in 
     accordance with the requirements of this subsection and 
     subsection (e). Such plan shall include a description of the 
     manner in which the company will provide to industrial retail 
     ratepayers (including entities that receive emission 
     allowances under part F) their ratable share of the value of 
     such allowances.
       ``(C) Reports.--Not later than June 30 of 2013 and each 
     calendar year thereafter through 2031, each electricity local 
     distribution company shall submit a report to the 
     Administrator, and to the relevant State regulatory authority 
     or other entity charged with regulating or setting the retail 
     electricity rates of such company, describing the disposition 
     of the value of any emission allowances received by such 
     company in the prior calendar year pursuant to this 
     subsection and subsection (e), including--
       ``(i) a description of sales, transfer, exchange, or use by 
     the company for compliance with obligations under this title, 
     of any such emission allowances;
       ``(ii) the monetary value received by the company, whether 
     in money or in some other form, from the sale, transfer, or 
     exchange of any such emission allowances;
       ``(iii) the manner in which the company's disposition of 
     any such emission allowances complies with the requirements 
     of this subsection and of subsection (e), including each of 
     the requirements of paragraph (5) of this subsection, 
     including the requirement that industrial retail ratepayers 
     (including entities that receive emission allowances under 
     part F) receive their ratable share of the value of such 
     allowances; and
       ``(iv) such other information as the Administrator may 
     require pursuant to subparagraph (A).
       ``(D) Publication.--The Administrator shall make available 
     to the public all plans and reports submitted under this 
     subsection, including by publishing such plans and reports on 
     the Internet.
       ``(8) Audits.--Each year, the Administrator shall audit a 
     representative sample of electricity local distribution 
     companies to ensure that emission allowances distributed 
     under this subsection have been used exclusively for the 
     benefit of retail ratepayers and that such companies are 
     complying with the requirements of this subsection and of 
     subsection (e), including the requirement that industrial 
     retail ratepayers (including entities that receive emission 
     allowances under part F) receive their ratable share of the 
     value of such allowances. In selecting companies for audit, 
     the Administrator shall take into account any credible 
     evidence of noncompliance with such requirements. The 
     Administrator shall make available to the public a report 
     describing the results of each such audit, including by 
     publishing such report on the Internet.
       ``(9) Enforcement.--A violation of any requirement of this 
     subsection or of subsection (e) shall be a violation of this 
     Act. Each emission allowance the value of which is used in 
     violation of the requirements of this subsection or of 
     subsection (e) shall be a separate violation.
       ``(c) Merchant Coal Units.--
       ``(1) Qualifying emissions.--The qualifying emissions for a 
     merchant coal unit for a given calendar year shall be the 
     product of the number of megawatt hours of merchant coal unit 
     sales generated by such unit in such calendar year and the 
     average carbon dioxide emissions per megawatt hour generated 
     by such unit during the base period under paragraph (2), 
     provided that the number of megawatt hours in a given 
     calendar year for purposes of such calculation shall be 
     reduced in proportion to the portion of such unit's carbon 
     dioxide emissions that are either--
       ``(A) captured and sequestered in such calendar year; or
       ``(B) attributable to the combustion or gasification of 
     biomass, to the extent that the owner or operator of the unit 
     is not required to hold emission allowances for such 
     emissions.
       ``(2) Base period.--For purposes of this subsection, the 
     base period for a merchant coal unit shall be--
       ``(A) calendar years 2006 through 2008; or
       ``(B) in the case of a new merchant coal unit--
       ``(i) the first full calendar year of operation of such 
     unit, if such unit commences operation before January 1, 
     2012;
       ``(ii) calendar year 2012, if such unit commences operation 
     on or after January 1, 2012.
       ``(iii) calendar year 2013, if such unit commences 
     operation on or after October 1, 2012, and before January 1, 
     2013.
       ``(3) Phase-down schedule.--The Administrator shall 
     identify an annual phase-down factor, applicable to 
     distributions to merchant coal units for each of vintage 
     years 2012 through 2029, that corresponds to the overall 
     decline in the amount of emission allowances allocated to the 
     electricity sector in such years pursuant to section 
     782(a)(1). Such factor shall--
       ``(A) for vintage year 2012, be equal to 1.0;
       ``(B) for each of vintage years 2013 through 2029, 
     correspond to the quotient of--
       ``(i) the quantity of emission allowances allocated under 
     section 782(a)(1) for such vintage year; divided by
       ``(ii) the quantity of emission allowances allocated under 
     section 782(a)(1) for vintage year 2012.
       ``(4) Distribution of emission allowances.--Not later than 
     March 1 of 2013 and each calendar year through 2030, the 
     Administrator shall distribute emission allowances of the 
     preceding vintage year to the owner or operator of each 
     merchant coal unit described in subsection (a)(6)(C) in an 
     amount equal to the product of--
       ``(A) 0.5;
       ``(B) the qualifying emissions for such merchant coal unit 
     for the preceding year, as determined under paragraph (1); 
     and
       ``(C) the phase-down factor for the preceding calendar 
     year, as identified under paragraph (3).

[[Page 16614]]

       ``(5) Adjustment.--
       ``(A) Study.--Not later than July 1, 2014, the 
     Administrator, in consultation with the Federal Energy 
     Regulatory Commission, shall complete a study to determine 
     whether the allocation formula under paragraph (3) is 
     resulting in, or is likely to result in, windfall profits to 
     merchant coal generators or substantially disparate treatment 
     of merchant coal generators operating in different markets or 
     regions.
       ``(B) Regulation.--If the Administrator, in consultation 
     with the Federal Energy Regulatory Commission, makes an 
     affirmative finding of windfall profits or disparate 
     treatment under subparagraph (A), the Administrator shall, 
     not later than 18 months after the completion of the study 
     described in subparagraph (A), promulgate regulations 
     providing for the adjustment of the allocation formula under 
     paragraph (3) to mitigate, to the extent practicable, such 
     windfall profits, if any, and such disparate treatment, if 
     any.
       ``(6) Limitation on allowances.--Notwithstanding paragraph 
     (4) or (5), for each vintage year the Administrator shall 
     distribute under this subsection no more than 10 percent of 
     the total quantity of emission allowances available for such 
     vintage year for distribution to the electricity sector under 
     section 782(a)(1). If the quantity of emission allowances 
     that would otherwise be distributed pursuant to paragraph (4) 
     or (5) for any vintage year would exceed such limit, the 
     Administrator shall distribute 10 percent of the total 
     emission allowances available for distribution under section 
     782(a)(1) for such vintage year ratably among merchant coal 
     generators based on the applicable formula under paragraph 
     (4) or (5).
       ``(7) Eligibility.--The owner or operator of a merchant 
     coal unit shall not be eligible to receive emission 
     allowances under this subsection for any vintage year for 
     which such owner or operator has elected to receive emission 
     allowances for the same unit under subsection (d).
       ``(d) Long-term Contract Generators.--
       ``(1) Distribution.--Not later than March 1 of 2013 and 
     each calendar year through 2030, the Administrator shall 
     distribute to the owner or operator of each long-term 
     contract generator a quantity of emission allowances of the 
     preceding vintage year that is equal to the sum of--
       ``(A) the number of tons of carbon dioxide emitted as a 
     result of a qualifying electricity sales agreement referred 
     to in subsection (a)(5)(B)(i); and
       ``(B) the incremental number of tons of carbon dioxide 
     emitted solely as a result of a qualifying thermal sales 
     agreement referred to in subsection (a)(5)(B)(ii), provided 
     that in no event shall the Administrator distribute more than 
     1 emission allowance for the same ton of emissions.
       ``(2) Limitation on allowances.-- Notwithstanding paragraph 
     (1), for each vintage year the Administrator shall distribute 
     under this subsection no more than 4.3 percent of the total 
     quantity of emission allowances available for such vintage 
     year for distribution to the electricity sector under section 
     782(a)(1). If the quantity of emission allowances that would 
     otherwise be distributed pursuant to paragraph (1) for any 
     vintage year would exceed such limit, the Administrator shall 
     distribute 4.3 percent of the total emission allowances 
     available for distribution under section 782(a)(1) for such 
     vintage year ratably among long-term contract generators 
     based on paragraph (1).
       ``(3) Eligibility.--
       ``(A) Facility eligibility.--The owner or operator of a 
     facility shall cease to be eligible to receive emission 
     allowances under this subsection upon the earliest date on 
     which the facility no longer meets each and every element of 
     the definition of a long-term contract generator under 
     subsection (a)(5).
       ``(B) Contract eligibility.--The owner or operator of a 
     facility shall cease to be eligible to receive emission 
     allowances under this subsection based on an electricity or 
     thermal sales agreement referred to in subsection (a)(5)(B) 
     upon the earliest date that such agreement--
       ``(i) expires;
       ``(ii) is terminated; or
       ``(iii) is amended in any way that changes the location of 
     the facility, the price (whether a fixed price or price 
     formula) for electricity or thermal energy sold under such 
     agreement, the quantity of electricity or thermal energy sold 
     under the agreement, or the expiration or termination date of 
     the agreement.
       ``(4) Demonstration of eligibility.--To be eligible to 
     receive allowance distributions under this subsection, the 
     owner or operator of a long-term contract generator shall 
     submit each of the following in writing to the Administrator 
     within 180 days after the date of enactment of this title, 
     and not later than September 30 of each vintage year for 
     which such generator wishes to receive emission allowances:
       ``(A) A certificate of representation described in section 
     700(15).
       ``(B) An identification of each owner and each operator of 
     the facility.
       ``(C) An identification of the units at the facility and 
     the location of the facility.
       ``(D) A written certification by the designated 
     representative that the facility meets all the requirements 
     of the definition of a long-term contract generator.
       ``(E) The expiration date of each qualifying electricity or 
     thermal sales agreement referred to in subsection (a)(5)(B).
       ``(F) A copy of each qualifying electricity or thermal 
     sales agreement referred to in subsection (a)(5)(B).
       ``(5) Notification.--Not later than 30 days after, in 
     accordance with paragraph (3), a facility or an agreement 
     ceases to meet the eligibility requirements for distribution 
     of emission allowances pursuant to this subsection, the 
     designated representative of such facility shall notify the 
     Administrator in writing when, and on what basis, such 
     facility or agreement ceased to meet such requirements.
       ``(e) Small LDCs.--
       ``(1) Distribution.--Not later than September 30 of each 
     calendar year from 2011 through 2028, the Administrator 
     shall, in accordance with this subsection, distribute 
     emission allowances allocated pursuant to section 782(a)(2) 
     for the following vintage year. Such allowances shall be 
     distributed ratably among small LDCs based on historic 
     emissions in accordance with the same measure of such 
     emissions applied to each such small LDC for the relevant 
     vintage year under subsection (b)(2) of this section.
       ``(2) Uses.--A small LDC receiving allowances under this 
     section shall use such allowances exclusively for the 
     following purposes:
       ``(A) Cost-effective programs to achieve electricity 
     savings, provided that such savings shall not be transferred 
     or used for compliance with section 610 of the Public Utility 
     Regulatory Policies Act of 1978.
       ``(B) Deployment of technologies to generate electricity 
     from renewable energy resources, provided that any Federal 
     renewable electricity credits issued based on generation 
     supported under this section shall be submitted to the 
     Federal Energy Regulatory Commission for voluntary retirement 
     and shall not be used for compliance with section 610 of the 
     Public Utility Regulatory Policies Act of 1978.
       ``(C) Assistance programs to reduce electricity costs for 
     low-income residential ratepayers of such small LDC, provided 
     that such assistance is made available equitably to all 
     residential ratepayers below a certain income level, which 
     shall not be higher than 200 percent of the poverty line (as 
     that term is defined in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)).
       ``(3) Requirements.--As part of the regulations promulgated 
     under subsection, the Administrator shall prescribe--
       ``(A) after consultation with the Federal Energy Regulatory 
     Commission, requirements to ensure that programs and projects 
     under paragraph (2)(A) and (B) are consistent with the 
     standards established by, and effectively supplement 
     electricity savings and generation of electricity from 
     renewable energy resources achieved by, the Combined 
     Efficiency and Renewable Electricity Standard established 
     under section 610 of the Public Utility Regulatory Policies 
     Act of 1978;
       ``(B) eligibility criteria and guidelines for consumer 
     assistance programs for low-income residential ratepayers 
     under paragraph (2)(C); and
       ``(C) such other requirements as the Administrator 
     determines appropriate to ensure compliance with the 
     requirements of this subsection.
       ``(4) Reporting.--Reports submitted under subsection (b)(7) 
     shall include, in accordance with such requirements as the 
     Administrator may prescribe--
       ``(A) a description of any facilities deployed under 
     paragraph (2)(A), the quantity of resulting electricity 
     generation from renewable energy resources;
       ``(B) an assessment demonstrating the cost-effectiveness 
     of, and electricity savings achieved by, programs supported 
     under paragraph (2)(B); and
       ``(C) a description of assistance provided to low-income 
     retail ratepayers under paragraph (2)(C).
       (f) Certain Cogeneration Facilities.--
       (1) Eligible cogeneration facilities.--For purposes of this 
     subsection, an ``eligible cogeneration facility'' is a 
     facility that--
       (A) is a qualifying co-generation facility (as that term is 
     defined in section 3(18)(B) of the Federal Power Act (16 
     U.S.C. 796(18)(B));
       (B) derives 80 percent or more of its heat input from coal, 
     petroleum coke, or any combination of these 2 fuels;
       (C) has a nameplate capacity of 100 megawatts or greater;
       (D) was in operation as of January 1, 2009, and remains in 
     operation as of the date of any distribution of emission 
     allowances under this subsection;
       (E) in calendar years 2006 through 2008 sold, and as of the 
     date of any distribution of emission allowances under this 
     section sells, steam or electricity directly and solely to 
     multiple, separately-owned industrial or commercial 
     facilities co-located at the same site with the cogeneration 
     facility; and
       (F) is not eligible to receive allowances under any other 
     subsection of this section or under part F of this title.
       (2) Distribution.--The Administrator shall distribute the 
     emission allowances allocated pursuant to section 782(a)(3) 
     to owners or operators of eligible cogeneration facilities 
     ratably based on the carbon dioxide emissions of each such 
     facility in calendar years 2006 through 2008. The 
     Administrator--

[[Page 16615]]

       (A) shall not, in any year, distribute emission allowances 
     under this subsection to the owner or operator of any 
     eligible cogeneration facility in excess of the amount 
     necessary to offset such facility's cost of compliance with 
     the requirements of this title in that year; and
       (B) may distribute such allowances over a period of years 
     if annual distributions under this subsection would otherwise 
     exceed the limitation in subparagraph (A), provided that in 
     no event shall distributions be made under this subsection 
     after calendar year 2025.
       (3) Requirements.--The Administrator shall, by regulation, 
     establish requirements to ensure that the value of any 
     emission allowances distributed pursuant to this subsection 
     are passed through, on an equitable basis, to the facilities 
     to which the relevant cogeneration facility provides 
     electricity or steam deliveries, including any facility owned 
     or operated by the owner or operator of the cogeneration 
     facility.
       ``(g) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator, in 
     consultation with the Federal Energy Regulatory Commission, 
     shall promulgate regulations to implement the requirements of 
     this section.

     ``SEC. 784. NATURAL GAS CONSUMERS.

       ``(a) Definitions.--For purposes of this section:
       ``(1) Cost-effective.--The term `cost-effective', with 
     respect to an energy efficiency program, means that the 
     program meets the Total Resource Cost Test, which requires 
     that the net present value of economic benefits over the life 
     of the program, including avoided supply and delivery costs 
     and deferred or avoided investments, is greater than the net 
     present value of the economic costs over the life of the 
     program, including program costs and incremental costs borne 
     by the energy consumer.
       ``(2) Natural gas local distribution company.--The term 
     `natural gas local distribution company' means a natural gas 
     local distribution company that is a covered entity.
       ``(3) Non-covered entity.--The term `non-covered entity' 
     means, when used in reference to a date or period prior to 
     the enactment of this title, an entity that would not have 
     been a covered entity if this title had been in effect during 
     such date or period.
       ``(4) State regulatory authority.--The term `State 
     regulatory authority' has the meaning given the term `State 
     commission' in section 2(8) of the Natural Gas Act (15 U.S.C. 
     717a(8)).
       ``(b) Distribution.--Not later than June 30 of 2015 and 
     each calendar year thereafter through 2028, the Administrator 
     shall distribute to natural gas local distribution companies 
     for the benefit of retail ratepayers the quantity of emission 
     allowances allocated for the following vintage year pursuant 
     to section 782(b). Such allowances shall be distributed among 
     local natural gas distribution companies based on the 
     following formula:
       ``(1) Initial formula.--Except as provided in paragraph 
     (2), for each vintage year, the Administrator shall 
     distribute emission allowances among natural gas local 
     distribution companies ratably based on each such company's 
     annual average retail natural gas deliveries for 2006 through 
     2008 to customers that were non-covered entities, unless the 
     owner or operator of the company selects 3 other consecutive 
     years between 1999 and 2008, inclusive, and timely notifies 
     the Administrator of its selection.
       ``(2) Updating.--Prior to distributing 2019 vintage year 
     emission allowances and at 3-year intervals thereafter, the 
     Administrator shall update the distribution formula under 
     this subsection to reflect changes in each natural gas local 
     distribution company's service territory since the most 
     recent formula was established. For each successive 3-year 
     period, the Administrator shall distribute allowances ratably 
     among natural gas local distribution companies based on the 
     product of--
       ``(A) each natural gas local distribution company's average 
     annual natural gas deliveries per customer to customers that 
     were non-covered entities during calendar years 2006 through 
     2008, or during the 3 alternative consecutive years selected 
     by such company under paragraph (1); and
       ``(B) the number of customers of such natural gas local 
     distribution company that are not covered entities in the 
     most recent year in which the formula is updated under this 
     paragraph.
       ``(c) Use of Allowances.--
       ``(1) Ratepayer benefit.--Emission allowances distributed 
     to a natural gas local distribution company under this 
     section shall be used exclusively for the benefit of retail 
     ratepayers of such natural gas local distribution company 
     other than covered entities and may not be used to support 
     natural gas sales or deliveries to entities or persons other 
     than such ratepayers.
       ``(2) Ratepayer classes.--In using emission allowances 
     distributed under this section for the benefit of ratepayers, 
     a natural gas local distribution company shall ensure that 
     ratepayer benefits are distributed--
       ``(A) among ratepayer classes ratably based on natural gas 
     deliveries to each class, excluding deliveries to covered 
     entities; and
       ``(B) equitably among individual ratepayers other than 
     covered entities within each ratepayer class.
       ``(3) Limitation.--In general, a natural gas local 
     distribution company shall not use the value of emission 
     allowances distributed under this section to provide to any 
     ratepayer a rebate that is based solely on the quantity of 
     natural gas delivered to such ratepayer. To the extent a 
     natural gas local distribution company uses the value of 
     emission allowances distributed under this section to provide 
     rebates, it shall, to the maximum extent practicable, provide 
     such rebates with regard to the fixed portion of ratepayers' 
     bills or as a fixed creditor rebate on natural gas bills.
       ``(4) Industrial ratepayers.--Notwithstanding paragraph 
     (3), if compliance with the requirements of this title 
     results (or would otherwise result) in an increase in natural 
     gas costs for industrial retail ratepayers of any given 
     natural gas local distribution company that are not covered 
     entities (including entities that receive emission allowances 
     pursuant to part F), such natural gas local distribution 
     company--
       ``(A) shall pass through to industrial retail ratepayers 
     that are not covered entities their ratable share (based on 
     deliveries to each ratepayer class) of the value of the 
     emission allowances distributed to such company under this 
     subsection, to reduce natural gas cost impacts on such 
     ratepayers; and
       ``(B) may do so based on the quantity of natural gas 
     delivered to individual industrial retail ratepayers.
       ``(5) Energy efficiency programs.--The value of no less 
     than one third of the emission allowances distributed to 
     natural gas local distribution companies pursuant to this 
     section in any calendar year shall be used for cost-effective 
     energy efficiency programs for natural gas consumers. Such 
     programs must be authorized and overseen by the State 
     regulatory authority, or by the entity with authority to 
     regulate or set retail natural gas rates in the case of a 
     natural gas local distribution company that is not regulated 
     by a State regulatory authority.
       ``(6) Certain intracompany deliveries.--If a natural gas 
     local distribution company makes an intracompany delivery of 
     natural gas to a customer that is not a covered entity, for 
     which such company is required to hold emission allowances 
     under section 722, such customer shall, for purposes of this 
     section, be considered a retail ratepayer and a member of a 
     ratepayer class to be determined by the relevant State 
     regulatory authority, or other entity with authority to 
     regulate or set natural gas rates in the case of a company 
     not regulated by a State regulatory authority.
       ``(7) Guidelines.--As part of the regulations promulgated 
     under subsection (h), the Administrator shall, after 
     consultation with State regulatory authorities, prescribe 
     guidelines for the implementation of the requirements of this 
     subsection. Such guidelines shall include requirements to 
     ensure that industrial retail ratepayers that are not covered 
     entities (including entities that receive emission allowances 
     under part F) receive their ratable share of the value of the 
     allowances distributed to each natural gas local distribution 
     company pursuant to this section.
       ``(d) Regulatory Proceedings.--
       ``(1) Requirement.--No natural gas local distribution 
     company shall be eligible to receive emission allowances 
     under this section unless the State regulatory authority with 
     authority over the retail rates of such company, or the 
     entity with authority to regulate or set retail rates of a 
     natural gas local distribution company not regulated by a 
     State regulatory authority, has--
       ``(A) after public notice and an opportunity for comment, 
     promulgated a regulation or completed a public rate 
     proceeding (or the equivalent, in the case of a ratemaking 
     entity other than a State regulatory authority) that provides 
     for the full implementation of the requirements of subsection 
     (c); and
       ``(B) made available to the Administrator and the public a 
     report describing, in adequate detail, the manner in which 
     the requirements of subsection (c) will be implemented.
       ``(2) Updating.--The Administrator shall require, as a 
     condition of continued receipt of emission allowances under 
     this section, that a new regulation be promulgated or rate 
     proceeding be completed, after public notice and an 
     opportunity for comment, and a new report be made available 
     to the Administrator and the public, pursuant to paragraph 
     (1), not less frequently than every 5 years.
       ``(e) Plans and Reporting.--
       ``(1) Regulations.--As part of the regulations promulgated 
     under subsection (h), the Administrator shall prescribe 
     requirements governing plans and reports to be submitted in 
     accordance with this subsection.
       ``(2) Plans.--Not later than April 30 of 2015 and every 5 
     years thereafter through 2025, each natural gas local 
     distribution company shall submit to the Administrator a 
     plan, approved by the State regulatory authority or other 
     entity charged with regulating or setting the retail rates of 
     such company, describing such company's plans for the 
     disposition of the value of emission allowances to be 
     received pursuant to this section, in accordance with the 
     requirements of this section.

[[Page 16616]]

       ``(3) Reports.--Not later than June 30 of 2017 and each 
     calendar year thereafter through 2031, each natural gas local 
     distribution company shall submit a report to the 
     Administrator, approved by the relevant State regulatory 
     authority or other entity charged with regulating or setting 
     the retail natural gas rates of such company, describing the 
     disposition of the value of any emission allowances received 
     by such company in the prior calendar year pursuant to this 
     section, including--
       ``(A) a description of sales, transfer, exchange, or use by 
     the company for compliance with obligations under this title, 
     of any such emission allowances;
       ``(B) the monetary value received by the company, whether 
     in money or in some other form, from the sale, transfer, or 
     exchange of emission allowances received by the company under 
     this section;
       ``(C) the manner in which the company's disposition of 
     emission allowances received under this section complies with 
     the requirements of this section, including each of the 
     requirements of subsection (c);
       ``(D) the cost-effectiveness of, and energy savings 
     achieved by, energy efficiency programs supported through 
     such emission allowances; and
       ``(E) such other information as the Administrator may 
     require pursuant to paragraph (1).
       ``(4) Publication.--The Administrator shall make available 
     to the public all plans and reports submitted by natural gas 
     local distribution companies under this subsection, including 
     by publishing such plans and reports on the Internet.
       ``(f) Audits.--Each year, the Administrator shall audit a 
     representative sample of natural gas local distribution 
     companies to ensure that emission allowances distributed 
     under this section have been used exclusively for the benefit 
     of retail ratepayers and that such companies are complying 
     with the requirements of this section. In selecting companies 
     for audit, the Administrator shall take into account any 
     credible evidence of noncompliance with such requirements. 
     The Administrator shall make available to the public a report 
     describing the results of each such audit, including by 
     publishing such report on the Internet.
       ``(g) Enforcement.--A violation of any requirement of this 
     section shall be a violation of this Act. Each emission 
     allowance the value of which is used in violation of the 
     requirements of this section shall be a separate violation.
       ``(h) Regulations.--Not later than January 1, 2014, the 
     Administrator, in consultation with the Federal Energy 
     Regulatory Commission, shall promulgate regulations to 
     implement the requirements of this section.

     ``SEC. 785. HOME HEATING OIL, PROPANE, AND KEROSENE 
                   CONSUMERS.

       ``(a) Definitions.--For purposes of this section:
       ``(1) Carbon content.--The term `carbon content' means the 
     amount of carbon dioxide that would be emitted as a result of 
     the combustion of a fuel.
       ``(2) Cost-effective.--The term `cost-effective' has the 
     meaning given that term in section 784(a)(1).
       ``(3) Oilheat fuel.--The term `oilheat fuel' means fuel 
     that--
       ``(A) is--
       ``(i) No. 1 distillate;
       ``(ii) No. 2 dyed distillate;
       ``(iii) a liquid blended with No. 1 distillate or No. 2 
     dyed distillate; or
       ``(iv) a biobased liquid; and
       ``(B) is used as a fuel for nonindustrial commercial or 
     residential space or hot water heating.
       ``(b) Distribution Among States.--Not later than September 
     30 of each of calendar years 2011 through 2028, the 
     Administrator shall distribute among the States, in 
     accordance with this section, the quantity of emission 
     allowances allocated for the following vintage year pursuant 
     to section 782(c). The Administrator shall distribute 
     emission allowances among the States under this section each 
     year ratably based on the ratio of--
       ``(1) the carbon content of oilheat fuel, propane, and 
     kerosene sold to consumers within each State in the preceding 
     year for residential or commercial uses; to
       ``(2) the carbon content of oilheat fuel, propane, and 
     kerosene sold to consumers within the United States in the 
     preceding year for residential or commercial uses.
       ``(c) Use of Allowances.--
       ``(1) In general.--States shall use emission allowances 
     distributed under this section exclusively for the benefit of 
     consumers of oilheat fuel, propane, or kerosene for 
     residential or commercial purposes. Such proceeds shall be 
     used exclusively for--
       ``(A) cost-effective energy efficiency programs for 
     consumers that use oilheat fuel, propane, or kerosene for 
     residential or commercial purposes; or
       ``(B) rebates or other direct financial assistance programs 
     for consumers of oilheat fuel, propane, or kerosene used for 
     residential or commercial purposes.
       ``(2) Administration and delivery mechanisms.--In 
     administering programs supported by this section, States 
     shall
       ``(A) use no less than 50 percent of the value of emission 
     allowances received under this section for cost-effective 
     energy efficiency programs to reduce consumers' overall fuel 
     costs;
       ``(B) to the extent practicable, deliver consumer support 
     under this section through existing energy efficiency and 
     consumer energy assistance programs or delivery mechanisms, 
     including, where appropriate, programs or mechanisms 
     administered by parties other than the State; and
       ``(C) seek to coordinate the administration and delivery of 
     energy efficiency and consumer energy assistance programs 
     supported under this section, with one another and with 
     existing programs for various fuel types, so as to deliver 
     comprehensive, fuel-blind, coordinated programs to consumers.
       ``(d) Reporting.--Each State receiving emission allowances 
     under this section shall submit to the Administrator, within 
     12 months of each receipt of such allowances, a report, in 
     accordance with such requirements as the Administrator may 
     prescribe, that--
       ``(1) describes the State's use of emission allowances 
     distributed under this section, including a description of 
     the energy efficiency and consumer assistance programs 
     supported with such allowances;
       ``(2) demonstrates the cost-effectiveness of, and the 
     energy savings and greenhouse gas emissions reductions 
     achieved by, energy efficiency programs supported under this 
     section; and
       ``(3) includes a report prepared by an independent third 
     party, in accordance with such regulations as the 
     Administrator may promulgate, evaluating the performance of 
     the energy efficiency and consumer assistance programs 
     supported under this section.
       ``(e) Enforcement.--If the Administrator determines that a 
     State is not in compliance with this section, the 
     Administrator may withhold a portion of the emission 
     allowances, the quantity of which is equal to up to twice the 
     quantity of the allowances that the State failed to use in 
     accordance with the requirements of this section, that such 
     State would otherwise be eligible to receive under this 
     section in later years. Allowances withheld pursuant to this 
     subsection shall be distributed among the remaining States 
     ratably in accordance with the formula in subsection (b).

     ``SEC. 787. ALLOCATIONS TO REFINERIES.

       ``(a) Purpose.--The purpose of this section is to provide 
     emission allowance rebates to petroleum refineries in the 
     United States in a manner that promotes energy efficiency and 
     a reduction in greenhouse gas emissions at such facilities.
       ``(b) Definitions.--In this section:
       ``(1) Emissions.--The term `emissions' includes direct 
     emissions from fuel combustion, process emissions, and 
     indirect emissions from the generation of electricity, steam, 
     and hydrogen used to produce the output of a petroleum 
     refinery or the petroleum refinery sector.
       ``(2) Petroleum refinery.--The term `petroleum refinery' 
     means a facility classified under code 324110 of the North 
     American Industrial Classification System of 2002.
       ``(3) Small business refiner.--The term `small business 
     refiner' means a refiner that meets the applicable Federal 
     refinery capacity and employee limitations criteria described 
     in section 45H(c)(1) of the Internal Revenue Code of 1986 (as 
     in effect on the date of enactment of this section and 
     without regard to section 45H(d)). Eligibility of a small 
     business refiner under this paragraph shall not be 
     recalculated or disallowed on account of (i) its merger with 
     another small business refiner or refiners after December 31, 
     2002 or (ii) its acquisition of another small business 
     refiner (or refinery of such refiner) after December 31, 
     2002.
       ``(c) In General.--For each vintage year between 2014 and 
     2026, the Administrator shall distribute allowances pursuant 
     to this section to owners and operators of petroleum 
     refineries, including small business refiners, in the United 
     States.
       ``(d) Distribution Schedule.--The Administrator shall 
     distribute emission allowances pursuant to the regulations 
     issued under subsection (e) for each vintage year no later 
     than October 31 of the preceding calendar year.
       ``(e) Regulations.--Not later than 3 years after the date 
     of enactment of this title, the Administrator, in 
     consultation with the Administrator of the Energy Information 
     Administration, shall promulgate regulations that establish a 
     formula for distributing emission allowances consistent with 
     the purpose of this section. In establishing such formula, 
     the Administrator shall consider the relative complexity of 
     refinery processes and appropriate mechanisms to take energy 
     efficiency and greenhouse gas reductions into account. If a 
     petroleum refinery's electricity provider received a free 
     allocation of emission allowances pursuant to section 782(a), 
     the Administrator shall take this free allocation into 
     account when establishing such formula to avoid rebates to a 
     petroleum refinery for costs that the Administrator 
     determines were not incurred by the petroleum refinery 
     because the allowances were freely allocated to the petroleum 
     refinery's electricity provider and used for the benefit of 
     the petroleum refinery. This formula shall apply separately 
     to the distribution of allowances allocated pursuant to 
     section 782(j)(1) and to those allocated under section 
     782(j)(2).

[[Page 16617]]



     ``SEC. 788. SUPPLEMENTAL AGRICULTURE AND RENEWABLE ENERGY 
                   INCENTIVES PROGRAMS.

       ``(a) In General.--Emission allowances allocated pursuant 
     to section 782(u) shall be distributed by the Administrator 
     at the direction of the Secretary of Energy and the Secretary 
     of Agriculture in accordance with this section. Not less than 
     50 percent of the allowances shall be available for the 
     program established pursuant to subsection (b).
       ``(b) Agriculture Incentives Program.--
       ``(1) Establishment.--The Secretary of Agriculture shall 
     establish by rule a program to provide incentives in the form 
     of emission allowances for activities undertaken in the 
     agriculture sector that reduce greenhouse gas emissions or 
     sequester carbon. Under this program, the Secretary of 
     Agriculture shall provide incentives for projects and 
     activities that--
       ``(A) reduce or avoid greenhouse gas emissions, or 
     sequester greenhouse gases, but do not meet the criteria for 
     offset credits established under the American Clean Energy 
     and Security Act of 2009;
       ``(B) support actions to adapt to climate change; or
       ``(C) prevent conversion of land that would increase 
     greenhouse gas emissions (including projects and activities 
     that complement or supplement conservation programs 
     administered by the Secretary).
       ``(2) Considerations.--In designing this program, the 
     Secretary shall ensure that it provides support for--
       ``(A) development and demonstration of practices to reduce 
     greenhouse gas emissions or sequester carbon in agricultural 
     operations where there are limited recognized opportunities 
     to achieve such emissions reductions or sequestration; and
       ``(B) projects that reduce greenhouse gas emissions or 
     increase sequestration of greenhouse gases and also achieve 
     other significant environmental benefits, such as the 
     improvement of water or air quality.
       ``(3) Research.--The Secretary shall establish by rule a 
     program to conduct research to develop additional projects 
     and activities for crops to find additional techniques and 
     methods to reduce greenhouse gas emissions or sequester 
     greenhouse gases that may or may not meet the criteria for 
     offset credits established under the American Clean Energy 
     and Security Act of 2009.
       ``(4) Use of information.--Information and data generated 
     by this program should, where relevant, be used to inform the 
     development of additional offset practices and methodologies.
       ``(c) Renewable Energy Incentives Program.--The Secretary 
     of Energy and the Administrator shall establish by rule a 
     program to provide allowances to State and local governments 
     to support the deployment of renewable energy 
     infrastructure.''.

     ``SEC. 789. CLIMATE CHANGE CONSUMER REFUNDS.

       ``(a) Refund.--In each year after deposits are made to the 
     Climate Change Consumer Refund Account, the Secretary of the 
     Treasury shall provide tax refunds on a per capita basis to 
     each household in the United States that shall collectively 
     equal the amount deposited into the Climate Change Consumer 
     Refund Account.
       ``(b) Limitations.--The Secretary of the Treasury shall 
     establish procedures to ensure that individuals who are not--
       ``(1) citizens or nationals of the United States; or
       ``(2) immigrants lawfully residing in the United States,
     are excluded for the purpose of calculating and distributing 
     refunds under this section.

     ``SEC. 790. EXCHANGE FOR STATE-ISSUED ALLOWANCES.

       ``(a) In General.--Not later than one year after the date 
     of enactment of this title, the Administrator shall issue 
     regulations allowing any person in the United States to 
     exchange greenhouse gas emission allowances issued before 
     December 31, 2011, by the State of California or for the 
     Regional Greenhouse Gas Initiative, or the Western Climate 
     Initiative (in this section referred to as `State 
     allowances') for emission allowances established by the 
     Administrator under section 721(a).
       ``(b) Regulations.--Regulations issued under subsection (a) 
     shall--
       ``(1) provide that a person exchanging State allowances 
     under this section receive emission allowances established 
     under section 721(a) in the amount that is sufficient to 
     compensate for the cost of obtaining and holding such State 
     allowances;
       ``(2) establish a deadline by which persons must exchange 
     the State allowances;
       ``(4) require that, once exchanged, the credit or other 
     instrument be retired for purposes of use under the program 
     by or for which it was originally issued.
       ``(5) provide that the Federal emission allowances 
     disbursed pursuant to this section shall be deducted from the 
     allowances to be auctioned pursuant to section 782(d); and
       ``(c) Cost of Obtaining State Allowance.--For purposes of 
     this section, the cost of obtaining a State allowance shall 
     be the average auction price, for emission allowances issued 
     in the year in which the State allowance was issued, under 
     the program under which the State allowance was issued.

     ``SEC. 791. AUCTION PROCEDURES.

       ``(a) In General.--To the extent that auctions of emission 
     allowances by the Administrator are authorized by this part, 
     such auctions shall be carried out pursuant to this section 
     and the regulations established hereunder.
       ``(b) Initial Regulations.--Not later than 12 months after 
     the date of enactment of this title, the Administrator, in 
     consultation with other agencies, as appropriate, shall 
     promulgate regulations governing the auction of allowances 
     under this section. Such regulations shall include the 
     following requirements:
       ``(1) Frequency; first auction.--Auctions shall be held 
     four times per year at regular intervals, with the first 
     auction to be held no later than March 31, 2011.
       ``(2) Auction schedule; current and future vintages.--The 
     Administrator shall, at each quarterly auction under this 
     section, offer for sale both a portion of the allowances with 
     the same vintage year as the year in which the auction is 
     being conducted and a portion of the allowances with vintage 
     years from future years. The preceding sentence shall not 
     apply to auctions held before 2012, during which period, by 
     necessity, the Administrator shall auction only allowances 
     with a vintage year that is later than the year in which the 
     auction is held. Beginning with the first auction and at each 
     quarterly auction held thereafter, the Administrator may 
     offer for sale allowances with vintage years of up to four 
     years after the year in which the auction is being conducted, 
     except as provided in section 782(p).
       ``(3) Auction format.--Auctions shall follow a single-
     round, sealed-bid, uniform price format.
       ``(4) Participation; financial assurance.--Auctions shall 
     be open to any person, except that the Administrator may 
     establish financial assurance requirements to ensure that 
     auction participants can and will perform on their bids.
       ``(5) Disclosure of beneficial ownership.--Each bidder in 
     the auction shall be required to disclose the person or 
     entity sponsoring or benefitting from the bidder's 
     participation in the auction if such person or entity is, in 
     whole or in part, other than the bidder.
       ``(6) Purchase limits.--No person may, directly or in 
     concert with another participant, purchase more than 5 
     percent of the allowances offered for sale at any quarterly 
     auction.
       ``(7) Publication of information.--After the auction, the 
     Administrator shall, in a timely fashion, publish the 
     identities of winning bidders, the quantity of allowances 
     obtained by each winning bidder, and the auction clearing 
     price.
       ``(8) Other requirements.--The Administrator may include in 
     the regulations such other requirements or provisions as the 
     Administrator, in consultation with other agencies, as 
     appropriate, considers appropriate to promote effective, 
     efficient, transparent, and fair administration of auctions 
     under this section.
       ``(c) Revision of Regulations.--The Administrator may, in 
     consultation with other agencies, as appropriate, at any 
     time, revise the initial regulations promulgated under 
     subsection (b) by promulgating new regulations. Such revised 
     regulations need not meet the requirements identified in 
     subsection (b) if the Administrator determines that an 
     alternative auction design would be more effective, taking 
     into account factors including costs of administration, 
     transparency, fairness, and risks of collusion or 
     manipulation. In determining whether and how to revise the 
     initial regulations under this subsection, the Administrator 
     shall not consider maximization of revenues to the Federal 
     Government.
       ``(d) Reserve Auction Price.--The minimum reserve auction 
     price shall be $10 (in constant 2009 dollars) for auctions 
     occurring in 2012. The minimum reserve price for auctions 
     occurring in years after 2012 shall be the minimum reserve 
     auction price for the previous year increased by 5 percent 
     plus the rate of inflation (as measured by the Consumer Price 
     Index for all urban consumers).
       ``(e) Delegation or Contract.--Pursuant to regulations 
     under this section, the Administrator may by delegation or 
     contract provide for the conduct of auctions under the 
     Administrator's supervision by other departments or agencies 
     of the Federal Government or by nongovernmental agencies, 
     groups, or organizations.
       ``(f) Small Business Refiner Reserve.--The Administrator 
     shall, in accordance with this subsection, issue regulations 
     setting aside a specified number of allowances that small 
     business refiners may purchase at the average auction price 
     and may use to demonstrate compliance pursuant to section 
     722. These regulations shall provide the following:
       ``(1) Amount.--The Administrator shall place in the small 
     business refiner reserve account allowances that are to be 
     sold at auction pursuant to the allocations in section 782 in 
     an amount equal to--
       ``(A) 6.2 percent of the emission allowances established 
     under section 721(a) for each vintage year from 2012 through 
     2013;
       ``(B) 5.4 percent of the emission allowances established 
     under section 721(a) for each vintage year from 2014 through 
     2015; and
       ``(C) 4.9 percent of the emission allowances established 
     under section 721(a) for each vintage year from 2016 through 
     2024.

[[Page 16618]]

       ``(2) Allowed purchases.--From January 1 of the calendar 
     year that matches the vintage year for which allowances have 
     been placed in the reserve, through January 14 of the 
     following year, small business refiners (as defined in 
     section 787(b)) may purchase allowances from this reserve at 
     the price determined pursuant to paragraph (3).
       ``(3) Price.--The price for allowances purchased from this 
     reserve shall be the average auction price for allowances of 
     the same vintage year purchased at auctions conducted 
     pursuant to this section during the 12 months preceding the 
     purchase of the allowances.
       ``(4) Use of allowances.--Allowances purchased from this 
     reserve shall only be used by the purchaser to demonstrate 
     compliance pursuant to section 722 for attributable 
     greenhouse gas emissions in the calendar year that matches 
     the vintage year of the purchased allowance. Allowances 
     purchased from this reserve may not be banked, traded or 
     borrowed.
       ``(5) Limitations on purchase amount.--The Administrator, 
     by regulation adopted after public notice and an opportunity 
     for comment, shall establish procedures to distribute the 
     ability to purchase allowances from the reserve fairly among 
     all small business refiners interested in purchasing 
     allowances from this reserve so as to address the potential 
     that requests to purchase allowances exceed the number of 
     allowances available in the reserve. This regulation may 
     place limits on the number of allowances a small business 
     refiner may purchase from the reserve.
       ``(6) Unsold allowances.--Vintage year allowances not sold 
     from the reserve on or before January 15 of the calendar year 
     following the vintage year shall be sold at an auction 
     conducted pursuant to this section no later than March 31 of 
     the calendar year following the vintage year. If 
     significantly more allowances are being placed in the reserve 
     than are being purchased from the reserve several years in a 
     row, the Administrator may adjust either the percent of 
     allowances placed in the reserve or the date by which 
     allowances may be purchased from the reserve.

     ``SEC. 792. AUCTIONING ALLOWANCES FOR OTHER ENTITIES.

       ``(a) Consignment.--Any entity holding emission allowances 
     or compensatory allowances may request that the Administrator 
     auction, pursuant to section 791, the allowances on 
     consignment.
       ``(b) Pricing.--When the Administrator acts under this 
     section as the agent of an entity in possession of emission 
     allowances or compensatory allowances, the Administrator is 
     not obligated to obtain the highest price possible for the 
     allowances, and instead shall auction consignment allowances 
     in the same manner and pursuant to the same rules as auctions 
     of other allowances under section 791. The Administrator may 
     permit the entity offering the allowance for sale to 
     condition the sale of its allowances pursuant to this section 
     on a minimum reserve price that is different than the reserve 
     auction price set pursuant to section 791(d).
       ``(c) Proceeds.--For emission allowances and compensatory 
     allowances auctioned pursuant to this section, 
     notwithstanding section 3302 of title 31, United States Code, 
     or any other provision of law, within 90 days of receipt, the 
     United States shall transfer the proceeds from the auction to 
     the entity which held the allowances auctioned. No funds 
     transferred from a purchaser to a seller of emission 
     allowances or compensatory allowances under this subsection 
     shall be held by any officer or employee of the United States 
     or treated for any purpose as public monies.
       ``(d) Unsold Allowances.--Allowances offered for sale under 
     this section that are not sold shall be returned to the 
     entity in possession of the allowance, notwithstanding 
     section 726(b)(2)(A).
       ``(e) Regulations.--The Administrator shall issue 
     regulations within 24 months after the date of enactment of 
     this title to implement this section.

     ``SEC. 793. ESTABLISHMENT OF FUNDS.

       ``There is hereby established in the Treasury of the United 
     States the following separate accounts:
       ``(1) The Strategic Reserve Fund.
       ``(2) The Climate Change Consumer Refund Account.
       ``(3) The Climate Change Worker Adjustment Assistance Fund.

     ``SEC. 794. OVERSIGHT OF ALLOCATIONS.

       ``(a) In General.--Not later than January 1, 2014, and 
     every 2 years thereafter, the Comptroller General of the 
     United States shall carry out and report to Congress on the 
     results of a review of programs administered by the Federal 
     Government that distribute emission allowances or funds from 
     any Federal auction of allowances.
       ``(b) Contents.--Each such report shall include a 
     comprehensive evaluation of the administration and 
     effectiveness of each program, including--
       ``(1) the efficiency, transparency, and soundness of the 
     administration of each program;
       ``(2) the performance of activities receiving assistance 
     under each program;
       ``(3) the cost-effectiveness of each program in achieving 
     the stated purposes of the program; and
       ``(4) recommendations, if any, for legislative, regulatory, 
     or administrative changes to each program to improve its 
     effectiveness.
       ``(c) Focus.--In evaluating program performance, each 
     review under this section review shall address the 
     effectiveness of such programs in--
       ``(1) creating and preserving jobs;
       ``(2) ensuring a manageable transition for working families 
     and workers;
       ``(3) reducing the emissions, or enhancing sequestration, 
     of greenhouse gases;
       ``(4) developing clean technologies; and
       ``(5) building resilience to the impacts of climate change.

     ``SEC. 795. EXCHANGE FOR EARLY ACTION OFFSET CREDITS.

       ``(a) In General.--Emission allowances allocated pursuant 
     to section 782(t) shall be distributed by the Administrator 
     in accordance with this section. Not later than one year 
     after the date of enactment of this title, the Administrator 
     shall issue regulations allowing--
       ``(1) any person in the United States to exchange 
     instruments in the nature of offset credits issued before 
     January 1, 2009, by a State or voluntary offset program with 
     respect to which the Administrator has made an affirmative 
     determination under section 740(a)(2), for emissions 
     allowances established by the Administrator under section 
     721(a); and
       ``(2) the Administrator to provide compensation in the form 
     of emission allowances to entities that do not meet the 
     criteria of paragraph (1) and meet the criteria of this 
     paragraph for documented early reductions or avoidance of 
     greenhouse gas emissions or greenhouse gases sequestered 
     before January 1, 2009, from projects begun before January 1, 
     2009, where--
       ``(A) the entity publicly stated greenhouse gas reduction 
     goals and publicly reported against those goals;
       ``(B) the entity demonstrated entity-wide net greenhouse 
     gas reductions; and
       ``(C) the entity demonstrates the actual projects 
     undertaken to make reductions and documents the reductions 
     (e.g., through documentation of engineering projects).
       ``(b) Regulations.--Regulations issued under subsection (a) 
     shall--
       ``(1) provide that a person exchanging credits under 
     subsection (a)(1) receive emission allowances established 
     under section 721(a) in an amount for which the monetary 
     value is equivalent to the average monetary value of the 
     credits during the period from January 1, 2006, to January 1, 
     2009, as adjusted for inflation to reflect current dollar 
     values at the time of the exchange;
       ``(2) provide that a person receiving compensation for 
     documented early action under subsection (a)(2) shall receive 
     emission allowances established under section 721(a) in an 
     amount that is approximately equivalent in value to the 
     carbon dioxide equivalent per ton value received by entities 
     in exchange for credits under paragraph (1) (as adjusted for 
     inflation to reflect current dollar values at the time of the 
     exchange), as determined by the Administrator;
       ``(3) provide that only reductions or avoidance of 
     greenhouse gas emissions, or sequestration of greenhouse 
     gases, achieved by activities in the United States between 
     January 1, 2001, and January 1, 2009, may be compensated 
     under this section, and only credits issued for such 
     activities may be exchanged under this section;
       ``(4) provide that only credits that have not been retired 
     or otherwise used to meet a voluntary or mandatory 
     commitment, and have not expired, may be exchanged under 
     subsection (a)(1);
       ``(5) require that, once exchanged, the credit be retired 
     for purposes of use under the program by or for which it was 
     originally issued; and
       ``(6) establish a deadline by which persons must exchange 
     the credits or request compensation for early action under 
     this section.
       ``(c) Participation.--Participation in an exchange of 
     credits for allowances or compensation for early action 
     authorized by this section shall not preclude any person from 
     participation in an offset credit program established under 
     the American Clean Energy and Security Act of 2009.
       ``(d) Distribution.--Of the emission allowances distributed 
     under this section, a quantity equal to 0.75 percent of 
     vintage year 2012 emission allowances established under 
     section 721(a) shall be distributed pursuant to subsection 
     (a)(1), and a quantity equal to 0.25 percent of vintage year 
     2012 emission allowances established under section 721(a) 
     shall be distributed pursuant to subsection (a)(2).''.

            Subtitle C--Additional Greenhouse Gas Standards

     SEC. 331. GREENHOUSE GAS STANDARDS.

       The Clean Air Act (42 U.S.C. 7401 and following), as 
     amended by subtitles A and B of this title, is further 
     amended by adding the following new title after title VII:

           ``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

     ``SEC. 801. DEFINITIONS.

       ``For purposes of this title, terms that are defined in 
     title VII, except for the term `stationary source', shall 
     have the meaning given those terms in title VII.

[[Page 16619]]



                 ``PART A--STATIONARY SOURCE STANDARDS

     ``SEC. 811. STANDARDS OF PERFORMANCE.

       ``(a) Uncapped Stationary Sources.--
       ``(1) Inventory of source categories.--(A) Within 12 months 
     after the date of enactment of this title, the Administrator 
     shall publish under section 111(b)(1)(A) an inventory of 
     categories of stationary sources that consist of those 
     categories that contain sources that individually had 
     uncapped greenhouse gas emissions greater than 10,000 tons of 
     carbon dioxide equivalent and that, in the aggregate, were 
     responsible for emitting at least 20 percent annually of the 
     uncapped greenhouse gas emissions.
       ``(B) The Administrator shall include in the inventory 
     under this paragraph each source category that is responsible 
     for at least 10 percent of the uncapped methane emissions in 
     2005. Notwithstanding any other provision, the inventory 
     required by this section shall not include sources of enteric 
     fermentation. The list under this paragraph shall include 
     industrial sources, the emissions from which, when added to 
     the capped emissions from industrial sources, constitute at 
     least 95 percent of the greenhouse gas emissions of the 
     industrial sector.
       ``(C) For purposes of this subsection, emissions shall be 
     calculated using tons of carbon dioxide equivalents. In 
     promulgating the inventory required by this paragraph and the 
     schedule required under by paragraph (2)(C), the 
     Administrator shall use the most current emissions data 
     available at the time of promulgation, except as provided in 
     subparagraph (B).
       ``(D) Notwithstanding any other provisions, the 
     Administrator may list under 111(b) any source category 
     identified in the inventory required by this subsection 
     without making a finding that the source category causes or 
     contributes significantly to, air pollution with may be 
     reasonably anticipated to endanger public health or welfare.
       ``(2) Standards and schedule.--(A) For each category 
     identified as provided in paragraph (1), the Administrator 
     shall promulgate standards of performance under section 111 
     for the uncapped emissions of greenhouse gases from 
     stationary sources in that category and shall promulgate 
     corresponding regulations under section 111(d).
       ``(B) The Administrator shall promulgate standards as 
     required by this subsection for stationary sources in 
     categories identified as provided in paragraph (1) as 
     expeditiously as practicable, assuring that--
       ``(i) standards for identified source categories that, 
     combined, emitted 80 percent or more of the greenhouse gas 
     emissions of the identified source categories shall be 
     promulgated not later than 3 years after the date of 
     enactment of this title and shall include standards for 
     natural gas extraction; and
       ``(ii) for all other identified source categories--
       ``(I) standards for not less than an additional 25 percent 
     of the identified categories shall be promulgated not later 
     than 5 years after the date of enactment of this title;
       ``(II) standards for not less than an additional 25 percent 
     of the identified categories shall be promulgated not later 
     than 7 years after the date of enactment of this title; and
       ``(III) standards for all the identified categories shall 
     be promulgated not later than 10 years after the date of 
     enactment of this title.
       ``(C) Not later than 24 months after the date of enactment 
     of this title and after notice and opportunity for comment, 
     the Administrator shall publish a schedule establishing a 
     date for the promulgation of standards for each category of 
     sources identified pursuant to paragraph (1). The date for 
     each category shall be consistent with the requirements of 
     subparagraph (B). The determination of priorities for the 
     promulgation of standards pursuant to this paragraph is not a 
     rulemaking and shall not be subject to judicial review, 
     except that failure to promulgate any standard pursuant to 
     the schedule established by this paragraph shall be subject 
     to review under section 304(a)(2).
       ``(D) Notwithstanding section 307, no action of the 
     Administrator listing a source category under paragraph (1) 
     shall be a final agency action subject to judicial review, 
     except that any such action may be reviewed under section 307 
     when the Administrator issues performance standards for such 
     category.
       ``(b) Capped Sources.--No standard of performance shall be 
     established under section 111 for capped greenhouse gas 
     emissions from a capped source unless the Administrator 
     determines that such standards are appropriate because of 
     effects that do not include climate change effects. In 
     promulgating a standard of performance under section 111 for 
     the emission from capped sources of any air pollutant that is 
     not a greenhouse gas, the Administrator shall treat the 
     emission of any greenhouse gas by those entities as a nonair 
     quality public health and environmental impact within the 
     meaning of section 111(a)(1).
       ``(c) Performance Standards.--For purposes of setting a 
     performance standard for source categories identified 
     pursuant to subsection (a)--
       ``(1) The Administrator shall take into account the goal of 
     reducing total United States greenhouse gas emissions as set 
     forth in section 702.
       ``(2) The Administrator may promulgate a design, equipment, 
     work practice, or operational standard, or any combination 
     thereof, under section 111 in lieu of a standard of 
     performance under that section without regard to any 
     determination of feasibility that would otherwise be required 
     under section 111(h).
       ``(3) Notwithstanding any other provision, in setting the 
     level of each standard required by this section, the 
     Administrator shall take into account projections of 
     allowance prices, such that the marginal cost of compliance 
     (expressed as dollars per ton of carbon dioxide equivalent 
     reduced) imposed by the standard would not, in the judgement 
     of the Administrator, be expected to exceed the 
     Administrator's projected allowance prices over the time 
     period spanning from the date of initial compliance to the 
     date that the next revisions of the standard would come into 
     effect pursuant to the schedule under section 111(b)(1)(B).
       ``(d) Definitions.--In this section, the terms `uncapped 
     greenhouse gas emissions' and `uncapped methane emissions' 
     mean those greenhouse gas or methane emissions, respectively, 
     to which section 722 would not have applied if the 
     requirements of this title had been in effect for the same 
     year as the emissions data upon which the list is based.
       ``(e) Study of the Effects of Performance Standards.--
       ``(1) Study.--The Administrator shall conduct a study of 
     the impacts of performance standards required under this 
     section, which shall evaluate the effect of such standards on 
     the--
       ``(A) costs of achieving compliance with the economy-wide 
     reduction goals specified in section 702 and the reduction 
     targets specified in section 703;
       ``(B) available supply of offset credits; and
       ``(C) ability to achieve the economy-wide reduction goals 
     specified in section 702 and any other benefits of such 
     standards.
       ``(2) Report.--The Administrator shall submit to the House 
     Energy and Commerce Committee a report that describes the 
     results of the study not later than 18 months after the 
     publication of the standards required under subsection 
     (a)(2)(B)(i).

                ``PART C--EXEMPTIONS FROM OTHER PROGRAMS

     ``SEC. 831. CRITERIA POLLUTANTS.

       ``As of the date of the enactment of the Safe Climate Act, 
     no greenhouse gas may be added to the list under section 
     108(a) on the basis of its effect on global climate change.

     ``SEC. 832. INTERNATIONAL AIR POLLUTION.

       ``Section 115 shall not apply to an air pollutant with 
     respect to that pollutant's contribution to global warming.

     ``SEC. 833. HAZARDOUS AIR POLLUTANTS.

       ``No greenhouse gas may be added to the list of hazardous 
     air pollutants under section 112 unless such greenhouse gas 
     meets the listing criteria of section 112(b) independent of 
     its effects on global climate change.

     ``SEC. 834. NEW SOURCE REVIEW.

       ``The provisions of part C of title I shall not apply to a 
     major emitting facility that is initially permitted or 
     modified after January 1, 2009, on the basis of its emissions 
     of any greenhouse gas.

     ``SEC. 835. TITLE V PERMITS.

       ``Notwithstanding any provision of title III or V, no 
     stationary source shall be required to apply for, or operate 
     pursuant to, a permit under title V, solely because the 
     source emits any greenhouse gases that are regulated solely 
     because of their effect on global climate change.''.

     SEC. 332. HFC REGULATION.

       (a) In General.--Title VI of the Clean Air Act (42 U.S.C. 
     7671 et seq.) (relating to stratospheric ozone protection) is 
     amended by adding at the end the following:

     ``SEC. 619. HYDROFLUOROCARBONS (HFCS).

       ``(a) Treatment as Class II, Group II Substances.--Except 
     as otherwise provided in this section, hydrofluorocarbons 
     shall be treated as class II substances for purposes of 
     applying the provisions of this title. The Administrator 
     shall establish two groups of class II substances. Class II, 
     group I substances shall include all hydrochlorofluorocarbons 
     (HCFCs) listed pursuant to section 602(b). Class II, group II 
     substances shall include each of the following:
       ``(1) Hydrofluorocarbon-23 (HFC-23).
       ``(2) Hydrofluorocarbon-32 (HFC-32).
       ``(3) Hydrofluorocarbon-41 (HFC-41).
       ``(4) Hydrofluorocarbon-125 (HFC-125).
       ``(5) Hydrofluorocarbon-134 (HFC-134).
       ``(6) Hydrofluorocarbon-134a (HFC-134a).
       ``(7) Hydrofluorocarbon-143 (HFC-143).
       ``(8) Hydrofluorocarbon-143a (HFC-143a).
       ``(9) Hydrofluorocarbon-152 (HFC-152).
       ``(10) Hydrofluorocarbon-152a (HFC-152a).
       ``(11) Hydrofluorocarbon-227ea (HFC-227ea).
       ``(12) Hydrofluorocarbon-236cb (HFC-236cb).
       ``(13) Hydrofluorocarbon-236ea (HFC-236ea).
       ``(14) Hydrofluorocarbon-236fa (HFC-236fa).
       ``(15) Hydrofluorocarbon-245ca (HFC-245ca).
       ``(16) Hydrofluorocarbon-245fa (HFC-245fa).
       ``(17) Hydrofluorocarbon-365mfc (HFC-365mfc).
       ``(18) Hydrofluorocarbon-43-10mee (HFC-43-10mee).
       ``(19) Hydrofluoroolefin-1234yf (HFO-1234yf).
       ``(20) Hydrofluoroolefin-1234ze (HFO-1234ze).
     Not later than 6 months after the date of enactment of this 
     title, the Administrator

[[Page 16620]]

     shall publish an initial list of class II, group II 
     substances, which shall include the substances listed in this 
     subsection. The Administrator may add to the list of class 
     II, group II substances any other substance used as a 
     substitute for a class I or II substance if the Administrator 
     determines that 1 metric ton of the substance makes the same 
     or greater contribution to global warming over 100 years as 1 
     metric ton of carbon dioxide. Within 24 months after the date 
     of enactment of this section, the Administrator shall amend 
     the regulations under this title (including the regulations 
     referred to in sections 603, 608, 609, 610, 611, 612, and 
     613) to apply to class II, group II substances.
       ``(b) Consumption and Production of Class II, Group II 
     Substances.--
       ``(1) In general.--
       ``(A) Consumption phase down.--In the case of class II, 
     group II substances, in lieu of applying section 605 and the 
     regulations thereunder, the Administrator shall promulgate 
     regulations phasing down the consumption of class II, group 
     II substances in the United States, and the importation of 
     products containing any class II, group II substance, in 
     accordance with this subsection within 18 months after the 
     date of enactment of this section. Effective January 1, 2012, 
     it shall be unlawful for any person to produce any class II, 
     group II substance, import any class II, group II substance, 
     or import any product containing any class II, group II 
     substance without holding one consumption allowance or one 
     destruction offset credit for each carbon dioxide equivalent 
     ton of the class II, group II substance. Any person who 
     exports a class II, group II substance for which a 
     consumption allowance was retired may receive a refund of 
     that allowance from the Administrator following the export.
       ``(B) Production.--If the United States becomes a party or 
     otherwise adheres to a multilateral agreement, including any 
     amendment to the Montreal Protocol on Substances That Deplete 
     the Ozone Layer, that restricts the production of class II, 
     group II substances, the Administrator shall promulgate 
     regulations establishing a baseline for the production of 
     class II, group II substances in the United States and 
     phasing down the production of class II, group II substances 
     in the United States, in accordance with such multilateral 
     agreement and subject to the same exceptions and other 
     provisions as are applicable to the phase down of consumption 
     of class II, group II substances under this section (except 
     that the Administrator shall not require a person who obtains 
     production allowances from the Administrator to make payment 
     for such allowances if the person is making payment for a 
     corresponding quantity of consumption allowances of the same 
     vintage year). Upon the effective date of such regulations, 
     it shall be unlawful for any person to produce any class II, 
     group II substance without holding one consumption allowance 
     and one production allowance, or one destruction offset 
     credit, for each carbon dioxide equivalent ton of the class 
     II, group II substance.
       ``(C) Integrity of cap.--To maintain the integrity of the 
     class II, group II cap, the Administrator may, through 
     rulemaking, limit the percentage of each person's compliance 
     obligation that may be met through the use of destruction 
     offset credits or banked allowances.
       ``(D) Counting of violations.--Each consumption allowance, 
     production allowance, or destruction offset credit not held 
     as required by this section shall be a separate violation of 
     this section.
       ``(2) Schedule.--Pursuant to the regulations promulgated 
     pursuant to paragraph (1)(A), the number of class II, group 
     II consumption allowances established by the Administrator 
     for each calendar year beginning in 2012 shall be the 
     following percentage of the baseline, as established by the 
     Administrator pursuant to paragraph (3):


------------------------------------------------------------------------
          ``Calendar Year                    Percent of Baseline
------------------------------------------------------------------------
                      2012                                   90
------------------------------------------------------------------------
                      2013                                 87.5
------------------------------------------------------------------------
                      2014                                   85
------------------------------------------------------------------------
                      2015                                 82.5
------------------------------------------------------------------------
                      2016                                   80
------------------------------------------------------------------------
                      2017                                 77.5
------------------------------------------------------------------------
                      2018                                   75
------------------------------------------------------------------------
                      2019                                   71
------------------------------------------------------------------------
                      2020                                   67
------------------------------------------------------------------------
                      2021                                   63
------------------------------------------------------------------------
                      2022                                   59
------------------------------------------------------------------------
                      2023                                   54
------------------------------------------------------------------------
                      2024                                   50
------------------------------------------------------------------------
                      2025                                   46
------------------------------------------------------------------------
                      2026                                   42
------------------------------------------------------------------------
                      2027                                   38
------------------------------------------------------------------------
                      2028                                   34
------------------------------------------------------------------------
                      2029                                   30
------------------------------------------------------------------------
                      2030                                   25
------------------------------------------------------------------------
                      2031                                   21
------------------------------------------------------------------------
                      2032                                   17
------------------------------------------------------------------------
                after 2032                                   15
------------------------------------------------------------------------

       ``(3) Baseline.--(A) Within 12 months after the date of 
     enactment of this section, the Administrator shall promulgate 
     regulations to establish the baseline for purposes of 
     paragraph (2). The baseline shall be the sum, expressed in 
     metric tons of carbon dioxide equivalents, of--
       ``(i) the annual average consumption of all class II 
     substances in calendar years 2004, 2005, and 2006; plus
       ``(ii) the annual average quantity of all class II 
     substances contained in imported products in calendar years 
     2004, 2005, and 2006.
       ``(B) Notwithstanding subparagraph (A), if the 
     Administrator determines that the baseline is higher than 370 
     million metric tons of carbon dioxide equivalents, then the 
     Administrator shall establish the baseline at 370 million 
     metric tons of carbon dioxide equivalents.
       ``(C) Notwithstanding subparagraph (A), if the 
     Administrator determines that the baseline is lower than 280 
     million metric tons of carbon dioxide equivalents, then the 
     Administrator shall establish the baseline at 280 million 
     metric tons of carbon dioxide equivalents.
       ``(4) Distribution of allowances.--
       ``(A) In general.--Pursuant to the regulations promulgated 
     under paragraph (1)(A), for each calendar year beginning in 
     2012, the Administrator shall sell consumption allowances in 
     accordance with this paragraph.
       ``(B) Establishment of pools.--The Administrator shall 
     establish two allowance pools. Eighty percent of the 
     consumption allowances available for a calendar year shall be 
     placed in the producer-importer pool, and 20 percent of the 
     consumption allowances available for a calendar year shall be 
     placed in the secondary pool.
       ``(C) Producer-importer pool.--
       ``(i) Auction.--(I) For each calendar year, the 
     Administrator shall offer for sale at auction the following 
     percentage of the consumption allowances in the producer-
     importer pool:


------------------------------------------------------------------------
          ``Calendar Year               Percent Available for Auction
------------------------------------------------------------------------
                      2012                                   10
------------------------------------------------------------------------
                      2013                                   20
------------------------------------------------------------------------
                      2014                                   30
------------------------------------------------------------------------
                      2015                                   40
------------------------------------------------------------------------
                      2016                                   50
------------------------------------------------------------------------
                      2017                                   60
------------------------------------------------------------------------
                      2018                                   70
------------------------------------------------------------------------
                      2019                                   80
------------------------------------------------------------------------
       2020 and thereafter                                   90
------------------------------------------------------------------------

       ``(II) Any person who produced or imported any class II 
     substance during calendar year 2004, 2005, or 2006 may 
     participate in the auction. No other persons may participate 
     in the auction unless permitted to do so pursuant to 
     subclause (III).
       ``(III) Not later than three years after the date of the 
     initial auction and from time to time thereafter, the 
     Administrator shall determine through rulemaking whether any 
     persons who did not produce or import a class II substance 
     during calendar year 2004, 2005, or 2006 will be permitted to 
     participate in future auctions. The Administrator shall base 
     this determination on the duration, consistency, and scale of 
     such person's purchases of consumption allowances in the 
     secondary pool under subparagraph (D)(ii)(III), as well as 
     economic or technical hardship and other factors deemed 
     relevant by the Administrator.
       ``(IV) The Administrator shall set a minimum bid per 
     consumption allowance of the following:

       ``(aa) For vintage year 2012, $1.00.
       ``(bb) For vintage year 2013, $1.20.
       ``(cc) For vintage year 2014, $1.40.
       ``(dd) For vintage year 2015, $1.60.
       ``(ee) For vintage year 2016, $1.80.
       ``(ff) For vintage year 2017, $2.00.
       ``(gg) For vintage year 2018 and thereafter, $2.00 adjusted 
     for inflation after vintage year 2017 based upon the producer 
     price index as published by the Department of Commerce.

       ``(ii) Non-auction sale.--(I) For each calendar year, as 
     soon as practicable after auction, the Administrator shall 
     offer for sale the remaining consumption allowances in the 
     producer-importer pool at the following prices:

       ``(aa) A fee of $1.00 per vintage year 2012 allowance.
       ``(bb) A fee of $1.20 per vintage year 2013 allowance.

[[Page 16621]]

       ``(cc) A fee of $1.40 per vintage year 2014 allowance.
       ``(dd) For each vintage year 2015 allowance, a fee equal to 
     the average of $1.10 and the auction clearing price for 
     vintage year 2014 allowances.
       ``(ee) For each vintage year 2016 allowance, a fee equal to 
     the average of $1.30 and the auction clearing price for 
     vintage year 2015 allowances.
       ``(ff) For each vintage year 2017 allowance, a fee equal to 
     the average of $1.40 and the auction clearing price for 
     vintage year 2016 allowances.
       ``(gg) For each allowance of vintage year 2018 and 
     subsequent vintage years, a fee equal to the auction clearing 
     price for that vintage year.

       ``(II) The Administrator shall offer to sell the remaining 
     consumption allowances in the producer-importer pool to 
     producers of class II, group II substances and importers of 
     class II, group II substances in proportion to their relative 
     allocation share.
       ``(III) Such allocation share for such sale shall be 
     determined by the Administrator using such producer's or 
     importer's annual average data on class II substances from 
     calendar years 2004, 2005, and 2006, on a carbon dioxide 
     equivalent basis, and--

       ``(aa) shall be based on a producer's production, plus 
     importation, plus acquisitions and purchases from persons who 
     produced class II substances in the United States during 
     calendar years 2004, 2005, or 2006, less exportation, less 
     transfers and sales to persons who produced class II 
     substances in the United States during calendar years 2004, 
     2005, or 2006; and
       ``(bb) for an importer of class II substances that did not 
     produce in the United States any class II substance during 
     calendar years 2004, 2005, and 2006, shall be based on the 
     importer's importation less exportation.

     For purposes of item (aa), the Administrator shall account 
     for 100 percent of class II, group II substances and 60 
     percent of class II, group I substances. For purposes of item 
     (bb), the Administrator shall account for 100 percent of 
     class II, group II substances and 100 percent of class II, 
     group I substances.
       ``(IV) Any consumption allowances made available for 
     nonauction sale to a specific producer or importer of class 
     II, group II substances but not purchased by the specific 
     producer or importer shall be made available for sale to any 
     producer or importer of class II substances during calendar 
     years 2004, 2005, or 2006. If demand for such consumption 
     allowances exceeds supply of such consumption allowances, the 
     Administrator shall develop and utilize criteria for the sale 
     of such consumption allowances that may include pro rata 
     shares, historic production and importation, economic or 
     technical hardship, or other factors deemed relevant by the 
     Administrator. If the supply of such consumption allowances 
     exceeds demand, the Administrator may offer such consumption 
     allowances for sale in the secondary pool as set forth in 
     subparagraph (D).
       ``(D) Secondary pool.--(i) For each calendar year, as soon 
     as practicable after the auction required in subparagraph 
     (C), the Administrator shall offer for sale the consumption 
     allowances in the secondary pool at the prices listed in 
     subparagraph (C)(ii).
       ``(ii) The Administrator shall accept applications for 
     purchase of secondary pool consumption allowances from--
       ``(I) importers of products containing class II, group II 
     substances;
       ``(II) persons who purchased any class II, group II 
     substance directly from a producer or importer of class II, 
     group II substances for use in a product containing a class 
     II, group II substance, a manufacturing process, or a 
     reclamation process;
       ``(III) persons who did not produce or import a class II 
     substance during calendar year 2004, 2005, or 2006, but who 
     the Administrator determines have subsequently taken 
     significant steps to produce or import a substantial quantity 
     of any class II, group II substance; and
       ``(IV) persons who produced or imported any class II 
     substance during calendar year 2004, 2005, or 2006.
       ``(iii) If the supply of consumption allowances in the 
     secondary pool equals or exceeds the demand for consumption 
     allowances in the secondary pool as presented in the 
     applications for purchase, the Administrator shall sell the 
     consumption allowances in the secondary pool to the 
     applicants in the amounts requested in the applications for 
     purchase. Any consumption allowances in the secondary pool 
     not purchased in a calendar year may be rolled over and added 
     to the quantity available in the secondary pool in the 
     following year.
       ``(iv) If the demand for consumption allowances in the 
     secondary pool as presented in the applications for purchase 
     exceeds the supply of consumption allowances in the secondary 
     pool, the Administrator shall sell the consumption allowances 
     as follows:
       ``(I) The Administrator shall first sell the consumption 
     allowances in the secondary pool to any importers of products 
     containing class II, group II substances in the amounts 
     requested in their applications for purchase. If the demand 
     for such consumption allowances exceeds supply of such 
     consumption allowances, the Administrator shall develop and 
     utilize criteria for the sale of such consumption allowances 
     among importers of products containing class II, group II 
     substances that may include pro rata shares, historic 
     importation, economic or technical hardship, or other factors 
     deemed relevant by the Administrator.
       ``(II) The Administrator shall next sell any remaining 
     consumption allowances to persons identified in subclauses 
     (II) and (III) of clause (ii) in the amounts requested in 
     their applications for purchase. If the demand for such 
     consumption allowances exceeds remaining supply of such 
     consumption allowances, the Administrator shall develop and 
     utilize criteria for the sale of such consumption allowances 
     among subclauses (II) and (III) applicants that may include 
     pro rata shares, historic use, economic or technical 
     hardship, or other factors deemed relevant by the 
     Administrator.
       ``(III) The Administrator shall then sell any remaining 
     consumption allowances to persons who produced or imported 
     any class II substance during calendar year 2004, 2005, or 
     2006 in the amounts requested in their applications for 
     purchase. If demand for such consumption allowances exceeds 
     remaining supply of such consumption allowances, the 
     Administrator shall develop and utilize criteria for the sale 
     of such consumption allowances that may include pro rata 
     shares, historic production and importation, economic or 
     technical hardship, or other factors deemed relevant by the 
     Administrator.
       ``(IV) Each person who purchases consumption allowances in 
     a non-auction sale under this subparagraph shall be required 
     to disclose the person or entity sponsoring or benefitting 
     from the purchases if such person or entity is, in whole or 
     in part, other than the purchaser or the purchaser's 
     employer.
       ``(E) Discretion to withhold allowances.--Nothing in this 
     paragraph prevents the Administrator from exercising 
     discretion to withhold and retire consumption allowances that 
     would otherwise be available for auction or nonauction sale. 
     Not later than 18 months after the date of enactment of this 
     section, the Administrator shall promulgate regulations 
     establishing criteria for withholding and retiring 
     consumption allowances.
       ``(5) Banking.--A consumption allowance or destruction 
     offset credit may be used to meet the compliance obligation 
     requirements of paragraph (1) in--
       ``(A) the vintage year for the allowance or destruction 
     offset credit; or
       ``(B) any calendar year subsequent to the vintage year for 
     the allowance or destruction offset credit.
       ``(6) Auctions.--
       ``(A) Initial regulations.--Not later than 18 months after 
     the date of enactment of this section, the Administrator 
     shall promulgate regulations governing the auction of 
     allowances under this section. Such regulations shall include 
     the following requirements:
       ``(i) Frequency; first auction.--Auctions shall be held one 
     time per year at regular intervals, with the first auction to 
     be held no later than October 31, 2011.
       ``(ii) Auction format.--Auctions shall follow a single-
     round, sealed-bid, uniform price format.
       ``(iii) Financial assurance.--The Administrator may 
     establish financial assurance requirements to ensure that 
     auction participants can and will perform on their bids.
       ``(iv) Disclosure of beneficial ownership.--Each bidder in 
     the auction shall be required to disclose the person or 
     entity sponsoring or benefitting from the bidder's 
     participation in the auction if such person or entity is, in 
     whole or in part, other than the bidder.
       ``(v) Publication of information.--After the auction, the 
     Administrator shall, in a timely fashion, publish the number 
     of bidders, number of winning bidders, the quantity of 
     allowances sold, and the auction clearing price.
       ``(vi) Bidding limits in 2012.--In the vintage year 2012 
     auction, no auction participant may, directly or in concert 
     with another participant, bid for or purchase more allowances 
     offered for sale at the auction than the greater of--

       ``(I) the number of allowances which, when added to the 
     number of allowances available for purchase by the 
     participant in the producer-importer pool non-auction sale, 
     would equal the participant's annual average consumption of 
     class II, group II substances in calendar years 2004, 2005, 
     and 2006; or
       ``(II) the number of allowances equal to the product of--

       ``(aa) 1.20 multiplied by the participant's allocation 
     share of the producer-importer pool non-auction sale as 
     determined under paragraph (4)(C)(ii); and
       ``(bb) the number of vintage year 2012 allowances offered 
     at auction.
       ``(vii) Bidding limits in 2013.--In the vintage year 2013 
     auction, no auction participant may, directly or in concert 
     with another participant, bid for or purchase more allowances 
     offered for sale at the auction than the product of--

       ``(I) 1.15 multiplied by the ratio of the total number of 
     vintage year 2012 allowances purchased by the participant 
     from the auction and from the producer-importer pool non-
     auction sale to the total number of vintage year 2012 
     allowances in the producer-importer pool; and
       ``(II) the number of vintage year 2013 allowances offered 
     at auction.

[[Page 16622]]

       ``(viii) Bidding limits in subsequent years.--In the 
     auctions for vintage year 2014 and subsequent vintage years, 
     no auction participant may, directly or in concert with 
     another participant, bid for or purchase more allowances 
     offered for sale at the auction than the product of--

       ``(I) 1.15 multiplied by the ratio of the highest number of 
     allowances required to be held by the participant in any of 
     the three prior vintage years to meet its compliance 
     obligation under paragraph (1) to the total number of 
     allowances in the producer-importer pool for such vintage 
     year; and
       ``(II) the number of allowances offered at auction for that 
     vintage year.

       ``(ix) Other requirements.--The Administrator may include 
     in the regulations such other requirements or provisions as 
     the Administrator considers necessary to promote effective, 
     efficient, transparent, and fair administration of auctions 
     under this section.
       ``(B) Revision of regulations.--The Administrator may, at 
     any time, revise the initial regulations promulgated under 
     subparagraph (A) based on the Administrator's experience in 
     administering allowance auctions by promulgating new 
     regulations. Such revised regulations need not meet the 
     requirements identified in subparagraph (A) if the 
     Administrator determines that an alternative auction design 
     would be more effective, taking into account factors 
     including costs of administration, transparency, fairness, 
     and risks of collusion or manipulation. In determining 
     whether and how to revise the initial regulations under this 
     paragraph, the Administrator shall not consider maximization 
     of revenues to the Federal Government.
       ``(C) Delegation or contract.--Pursuant to regulations 
     under this section, the Administrator may, by delegation or 
     contract, provide for the conduct of auctions under the 
     Administrator's supervision by other departments or agencies 
     of the Federal Government or by nongovernmental agencies, 
     groups, or organizations.
       ``(7) Payments for allowances.--
       ``(A) Initial regulations.--Not later than 18 months after 
     the date of enactment of this section, the Administrator 
     shall promulgate regulations governing the payment for 
     allowances purchased in auction and non-auction sales under 
     this section. Such regulations shall include the requirement 
     that, in the event that full payment for purchased allowances 
     is not made on the date of purchase, equal payments shall be 
     made one time per calendar quarter with all payments for 
     allowances of a vintage year made by the end of that vintage 
     year.
       ``(B) Revision of regulations.-- The Administrator may, at 
     any time, revise the initial regulations promulgated under 
     subparagraph (A) based on the Administrator's experience in 
     administering collection of payments by promulgating new 
     regulations. Such revised regulations need not meet the 
     requirements identified in subparagraph (A) if the 
     Administrator determines that an alternative payment 
     structure or frequency would be more effective, taking into 
     account factors including cost of administration, 
     transparency, and fairness. In determining whether and how to 
     revise the initial regulations under this paragraph, the 
     Administrator shall not consider maximization of revenues to 
     the Federal Government.
       ``(C) Penalties for non-payment.--Failure to pay for 
     purchased allowances in accordance with the regulations 
     promulgated pursuant to this paragraph shall be a violation 
     of the requirements of subsection (b). Section 113(c)(3) 
     shall apply in the case of any person who knowingly fails to 
     pay for purchased allowances in accordance with the 
     regulations promulgated pursuant to this paragraph.
       ``(8) Imported products.--If the United States becomes a 
     party or otherwise adheres to a multilateral agreement, 
     including any amendment to the Montreal Protocol on 
     Substances That Deplete the Ozone Layer, which restricts the 
     production or consumption of class II, group II substances--
       ``(A) as of the date on which such agreement or amendment 
     enters into force, it shall no longer be unlawful for any 
     person to import from a party to such agreement or amendment 
     any product containing any class II, group II substance whose 
     production or consumption is regulated by such agreement or 
     amendment without holding one consumption allowance or one 
     destruction offset credit for each carbon dioxide equivalent 
     ton of the class II, group II substance;
       ``(B) the Administrator shall promulgate regulations within 
     12 months of the date the United States becomes a party or 
     otherwise adheres to such agreement or amendment, or the date 
     on which such agreement or amendment enters into force, 
     whichever is later, to establish a new baseline for purposes 
     of paragraph (2), which new baseline shall be the original 
     baseline less the carbon dioxide equivalent of the annual 
     average quantity of any class II substances regulated by such 
     agreement or amendment contained in products imported from 
     parties to such agreement or amendment in calendar years 
     2004, 2005, and 2006;
       ``(C) as of the date on which such agreement or amendment 
     enters into force, no person importing any product containing 
     any class II, group II substance may, directly or in concert 
     with another person, purchase any consumption allowances for 
     sale by the Administrator for the importation of products 
     from a party to such agreement or amendment that contain any 
     class II, group II substance restricted by such agreement or 
     amendment; and
       ``(D) the Administrator may adjust the two allowance pools 
     established in paragraph (4) such that up to 90 percent of 
     the consumption allowances available for a calendar year are 
     placed in the producer-importer pool with the remaining 
     consumption allowances placed in the secondary pool.
       ``(9) Offsets.--
       ``(A) Chlorofluorocarbon destruction.--Within 18 months 
     after the date of enactment of this section, the 
     Administrator shall promulgate regulations to provide for the 
     issuance of offset credits for the destruction, in the 
     calendar year 2012 or later, of chlorofluorocarbons in the 
     United States. The Administrator shall establish and 
     distribute to the destroying entity a quantity of destruction 
     offset credits equal to 0.8 times the number of metric tons 
     of carbon dioxide equivalents of reduction achieved through 
     the destruction. No destruction offset credits shall be 
     established for the destruction of a class II, group II 
     substance.
       ``(B) Definition.--For purposes of this paragraph, the term 
     `destruction' means the conversion of a substance by thermal, 
     chemical, or other means to another substance with little or 
     no carbon dioxide equivalent value and no ozone depletion 
     potential.
       ``(C) Regulations.--The regulations promulgated under this 
     paragraph shall include standards and protocols for project 
     eligibility, certification of destroyers, monitoring, 
     tracking, destruction efficiency, quantification of project 
     and baseline emissions and carbon dioxide equivalent value, 
     and verification. The Administrator shall ensure that 
     destruction offset credits represent real and verifiable 
     destruction of chlorofluorocarbons or other class I or class 
     II, group I, substances authorized under subparagraph (D).
       ``(D) Other substances.--The Administrator may promulgate 
     regulations to add to the list of class I and class II, group 
     I, substances that may be destroyed for destruction offset 
     credits, taking into account a candidate substance's carbon 
     dioxide equivalent value, ozone depletion potential, 
     prevalence in banks in the United States, and emission rates, 
     as well as the need for additional cost containment under the 
     class II, group II cap and the integrity of the class II, 
     group II cap. The Administrator shall not add a class I or 
     class II, group I substance to the list if the consumption of 
     the substance has not been completely phased-out 
     internationally (except for essential use exemptions or other 
     similar exemptions) pursuant to the Montreal Protocol.
       ``(E) Extension of offsets.--(i) At any time after the 
     Administrator promulgates regulations pursuant to 
     subparagraph (A), the Administrator may, pursuant to the 
     requirements of part D of title VII and based on the carbon 
     dioxide equivalent value of the substance destroyed, add the 
     types of destruction projects authorized to receive 
     destruction offset credits under this paragraph to the list 
     of types of projects eligible for offset credits under 
     section 733. If such projects are added to the list under 
     section 733, the issuance of offset credits for such projects 
     under part D of title VII shall be governed by the 
     requirements of such part D, while the issuance of offset 
     credits for such projects under this paragraph shall be 
     governed by the requirements of this paragraph. Nothing in 
     this paragraph shall affect the issuance of offset credits 
     under section 740.
       ``(ii) The Administrator shall not make the addition under 
     clause (i) unless the Administrator finds that insufficient 
     destruction is occurring or is projected to occur under this 
     paragraph and that the addition would increase destruction.
       ``(iii) In no event shall more than one destruction offset 
     credit be issued under title VII and this section for the 
     destruction of the same quantity of a substance.
       ``(10) Legal status of allowances and credits.--None of the 
     following constitutes a property right:
       ``(A) A production or consumption allowance.
       ``(B) A destruction offset credit.
       ``(c) Deadlines for Compliance.--Notwithstanding the 
     deadlines specified for class II substances in sections 608, 
     609, 610, 612, and 613 that occur prior to January 1, 2009, 
     the deadline for promulgating regulations under those 
     sections for class II, group II substances shall be January 
     1, 2012.
       ``(d) Exceptions for Essential Uses.--Notwithstanding any 
     phase down of production and consumption required by this 
     section, to the extent consistent with any applicable 
     multilateral agreement to which the United States is a party 
     or otherwise adheres, the Administrator may provide the 
     following exceptions for essential uses:
       ``(1) Medical devices.--The Administrator, after notice and 
     opportunity for public comment, and in consultation with the 
     Commissioner of the Food and Drug Administration, may provide 
     an exception for the production and consumption of class II, 
     group II substances solely for use in medical devices.

[[Page 16623]]

       ``(2) Aviation and space vehicle safety.--The 
     Administrator, after notice and opportunity for public 
     comment, may authorize the production and consumption of 
     limited quantities of class II, group II substances solely 
     for the purposes of aviation or space vehicle safety if 
     either the Administrator of the Federal Aviation 
     Administration or the Administrator of the National 
     Aeronautics and Space Administration, in consultation with 
     the Administrator, determines that no safe and effective 
     substitute has been developed and that such authorization is 
     necessary for aviation or space flight safety purposes.
       ``(e) Developing Countries.--Notwithstanding any phase down 
     of production required by this section, the Administrator, 
     after notice and opportunity for public comment, may 
     authorize the production of limited quantities of class II, 
     group II substances in excess of the amounts otherwise 
     allowable under this section solely for export to, and use 
     in, developing countries. Any production authorized under 
     this subsection shall be solely for purposes of satisfying 
     the basic domestic needs of such countries as provided in 
     applicable international agreements, if any, to which the 
     United States is a party or otherwise adheres.
       ``(f) National Security; Fire Suppression, etc.--The 
     provisions of subsection (f) and paragraphs (1) and (2) of 
     subsection (g) of section 604 shall apply to any consumption 
     and production phase down of class II, group II substances in 
     the same manner and to the same extent, consistent with any 
     applicable international agreement to which the United States 
     is a party or otherwise adheres, as such provisions apply to 
     the substances specified in such subsection.
       ``(g) Accelerated Schedule.--In lieu of section 606, the 
     provisions of paragraphs (1), (2), and (3) of this subsection 
     shall apply in the case of class II, group II substances.
       ``(1) In general.--The Administrator shall promulgate 
     initial regulations not later than 18 months after the date 
     of enactment of this section, and revised regulations any 
     time thereafter, which establish a schedule for phasing down 
     the consumption (and, if the condition in subsection 
     (b)(1)(B) is met, the production) of class II, group II 
     substances that is more stringent than the schedule set forth 
     in this section if, based on the availability of substitutes, 
     the Administrator determines that such more stringent 
     schedule is practicable, taking into account technological 
     achievability, safety, and other factors the Administrator 
     deems relevant, or if the Montreal Protocol, or any 
     applicable international agreement to which the United States 
     is a party or otherwise adheres, is modified or established 
     to include a schedule or other requirements to control or 
     reduce production, consumption, or use of any class II, group 
     II substance more rapidly than the applicable schedule under 
     this section.
       ``(2) Petition.--Any person may submit a petition to 
     promulgate regulations under this subsection in the same 
     manner and subject to the same procedures as are provided in 
     section 606(b).
       ``(3) Inconsistency.--If the Administrator determines that 
     the provisions of this section regarding banking, allowance 
     rollover, or destruction offset credits create a significant 
     potential for inconsistency with the requirements of any 
     applicable international agreement to which the United States 
     is a party or otherwise adheres, the Administrator may 
     promulgate regulations restricting the availability of 
     banking, allowance rollover, or destruction offset credits to 
     the extent necessary to avoid such inconsistency.
       ``(h) Exchange.--Section 607 shall not apply in the case of 
     class II, group II substances. Production and consumption 
     allowances for class II, group II substances may be freely 
     exchanged or sold but may not be converted into allowances 
     for class II, group I substances.
       ``(i) Labeling.--(1) In applying section 611 to products 
     containing or manufactured with class II, group II 
     substances, in lieu of the words `destroying ozone in the 
     upper atmosphere' on labels required under section 611 there 
     shall be substituted the words `contributing to global 
     warming'.
       ``(2) The Administrator may, through rulemaking, exempt 
     from the requirements of section 611 products containing or 
     manufactured with class II, group II substances determined to 
     have little or no carbon dioxide equivalent value compared to 
     other substances used in similar products.
       ``(j) Nonessential Products.--For the purposes of section 
     610, class II, group II substances shall be regulated under 
     section 610(b), except that in applying section 610(b) the 
     word `hydrofluorocarbon' shall be substituted for the word 
     `chlorofluorocarbon' and the term `class II, group II' shall 
     be substituted for the term `class I'. Class II, group II 
     substances shall not be subject to the provisions of section 
     610(d).
       ``(k) International Transfers.--In the case of class II, 
     group II substances, in lieu of section 616, this subsection 
     shall apply. To the extent consistent with any applicable 
     international agreement to which the United States is a party 
     or otherwise adheres, including any amendment to the Montreal 
     Protocol, the United States may engage in transfers with 
     other parties to such agreement or amendment under the 
     following conditions:
       ``(1) The United States may transfer production allowances 
     to another party to such agreement or amendment if, at the 
     time of the transfer, the Administrator establishes revised 
     production limits for the United States accounting for the 
     transfer in accordance with regulations promulgated pursuant 
     to this subsection.
       ``(2) The United States may acquire production allowances 
     from another party to such agreement or amendment if, at the 
     time of the transfer, the Administrator finds that the other 
     party has revised its domestic production limits in the same 
     manner as provided with respect to transfers by the United 
     States in the regulations promulgated pursuant to this 
     subsection.
       ``(l) Relationship to Other Laws.--
       ``(1) State laws.--For purposes of section 116, the 
     requirements of this section for class II, group II 
     substances shall be treated as requirements for the control 
     and abatement of air pollution.
       ``(2) Multilateral agreements.--Section 614 shall apply to 
     the provisions of this section concerning class II, group II 
     substances, except that for the words `Montreal Protocol' 
     there shall be substituted the words `Montreal Protocol, or 
     any applicable multilateral agreement to which the United 
     States is a party or otherwise adheres that restricts the 
     production or consumption of class II, group II substances,' 
     and for the words `Article 4 of the Montreal Protocol' there 
     shall be substituted `any provision of such multilateral 
     agreement regarding trade with non-parties'.
       ``(3) Federal facilities.--For purposes of section 118, the 
     requirements of this section for class II, group II 
     substances and corresponding State, interstate, and local 
     requirements, administrative authority, and process and 
     sanctions shall be treated as requirements for the control 
     and abatement of air pollution within the meaning of section 
     118.
       ``(m) Carbon Dioxide Equivalent Value.--(1) In lieu of 
     section 602(e), the provisions of this subsection shall apply 
     in the case of class II, group II substances. Simultaneously 
     with establishing the list of class II, group II substances, 
     and simultaneously with any addition to that list, the 
     Administrator shall publish the carbon dioxide equivalent 
     value of each listed class II, group II substance, based on a 
     determination of the number of metric tons of carbon dioxide 
     that makes the same contribution to global warming over 100 
     years as 1 metric ton of each class II, group II substance.
       ``(2) Not later than February 1, 2017, and not less than 
     every 5 years thereafter, the Administrator shall--
       ``(A) review, and if appropriate, revise the carbon dioxide 
     equivalent values established for class II, group II 
     substances based on a determination of the number of metric 
     tons of carbon dioxide that makes the same contributions to 
     global warming over 100 years as 1 metric ton of each class 
     II, group II substance; and
       ``(B) publish in the Federal Register the results of that 
     review and any revisions.
       ``(3) A revised determination published in the Federal 
     Register under paragraph (2)(B) shall take effect for 
     production of class II, group II substances, consumption of 
     class II, group II substances, and importation of products 
     containing class II, group II substances starting on January 
     1 of the first calendar year starting at least 9 months after 
     the date on which the revised determination was published.
       ``(4) The Administrator may decrease the frequency of 
     review and revision under paragraph (2) if the Administrator 
     determines that such decrease is appropriate in order to 
     synchronize such review and revisions with any similar review 
     process carried out pursuant to the United Nations Framework 
     Convention on Climate Change, an agreement negotiated under 
     that convention, The Vienna Convention for the Protection of 
     the Ozone Layer, or an agreement negotiated under that 
     convention, except that in no event shall the Administrator 
     carry out such review and revision any less frequently than 
     every 10 years.
       ``(n) Reporting Requirements.--In lieu of subsections (b) 
     and (c) of section 603, paragraphs (1) and (2) of this 
     subsection shall apply in the case of class II, group II 
     substances:
       ``(1) In general.--On a quarterly basis, or such other 
     basis (not less than annually) as determined by the 
     Administrator, each person who produced, imported, or 
     exported a class II, group II substance, or who imported a 
     product containing a class II, group II substance, shall file 
     a report with the Administrator setting forth the carbon 
     dioxide equivalent amount of the substance that such person 
     produced, imported, or exported, as well as the amount that 
     was contained in products imported by that person, during the 
     preceding reporting period. Each such report shall be signed 
     and attested by a responsible officer. If all other reporting 
     is complete, no such report shall be required from a person 
     after April 1 of the calendar year after such person 
     permanently ceases production, importation, and exportation 
     of the substance, as well as importation of products 
     containing the substance, and so notifies the

[[Page 16624]]

     Administrator in writing. If the United States becomes a 
     party or otherwise adheres to a multilateral agreement, 
     including any amendment to the Montreal Protocol on 
     Substances That Deplete the Ozone Layer, that restricts the 
     production or consumption of class II, group II substances, 
     then, if all other reporting is complete, no such report 
     shall be required from a person with respect to importation 
     from parties to such agreement or amendment of products 
     containing any class II, group II substance restricted by 
     such agreement or amendment, after April 1 of the calendar 
     year following the year during which such agreement or 
     amendment enters into force.
       ``(2) Baseline reports for class ii, group ii substances.--
       ``(A) In general.--Unless such information has been 
     previously reported to the Administrator, on the date on 
     which the first report under paragraph (1) of this subsection 
     is required to be filed, each person who produced, imported, 
     or exported a class II, group II substance, or who imported a 
     product containing a class II substance, (other than a 
     substance added to the list of class II, group II substances 
     after the publication of the initial list of such substances 
     under this section), shall file a report with the 
     Administrator setting forth the amount of such substance that 
     such person produced, imported, exported, or that was 
     contained in products imported by that person, during each of 
     calendar years 2004, 2005, and 2006.
       ``(B) Producers.--In reporting under subparagraph (A), each 
     person who produced in the United States a class II substance 
     during calendar years 2004, 2005, or 2006 shall--
       ``(i) report all acquisitions or purchases of class II 
     substances during each of calendar years 2004, 2005, and 2006 
     from all other persons who produced in the United States a 
     class II substance during calendar years 2004, 2005, or 2006, 
     and supply evidence of such acquisitions and purchases as 
     deemed necessary by the Administrator; and
       ``(ii) report all transfers or sales of class II substances 
     during each of calendar years 2004, 2005, and 2006 to all 
     other persons who produced in the United States a class II 
     substance during calendar years 2004, 2005, or 2006, and 
     supply evidence of such transfers and sales as deemed 
     necessary by the Administrator.
       ``(C) Added substances.--In the case of a substance added 
     to the list of class II, group II substances after 
     publication of the initial list of such substances under this 
     section, each person who produced, imported, exported, or 
     imported products containing such substance in calendar year 
     2004, 2005, or 2006 shall file a report with the 
     Administrator within 180 days after the date on which such 
     substance is added to the list, setting forth the amount of 
     the substance that such person produced, imported, and 
     exported, as well as the amount that was contained in 
     products imported by that person, in calendar years 2004, 
     2005, and 2006.
       ``(o) Stratospheric Ozone and Climate Protection Fund.--
       ``(1) In general.--There is established in the Treasury of 
     the United States a Stratospheric Ozone and Climate 
     Protection Fund.
       ``(2) Deposits.--The Administrator shall deposit all 
     proceeds from the auction and non-auction sale of allowances 
     under this section into the Stratospheric Ozone and Climate 
     Protection Fund.
       ``(3) Use.--Amounts deposited into the Stratospheric Ozone 
     and Climate Protection Fund shall be available, subject to 
     appropriations, exclusively for the following purposes:
       ``(A) Recovery, recycling, and reclamation.--The 
     Administrator may utilize funds to establish a program to 
     incentivize the recovery, recycling, and reclamation of any 
     Class II substances in order to reduce emissions of such 
     substances.
       ``(B) Multilateral fund.--If the United States becomes a 
     party or otherwise adheres to a multilateral agreement, 
     including any amendment to the Montreal Protocol on 
     Substances That Deplete the Ozone Layer, which restricts the 
     production or consumption of class II, group II substances, 
     the Administrator may utilize funds to meet any related 
     contribution obligation of the United States to the 
     Multilateral Fund for the Implementation of the Montreal 
     Protocol or similar multilateral fund established under such 
     multilateral agreement.
       ``(C) Best-in-class appliances deployment program.--The 
     Secretary of Energy is authorized to utilize funds to carry 
     out the purposes of section 214 of the American Clean Energy 
     and Security Act of 2009.
       ``(D) Low global warming product transition assistance 
     program.--
       ``(i) In general.--The Administrator, in consultation with 
     the Secretary of Energy, may utilize funds in fiscal years 
     2012 through 2022 to establish a program to provide financial 
     assistance to manufacturers of products containing class II, 
     group II substances to facilitate the transition to products 
     that contain or utilize alternative substances with no or low 
     carbon dioxide equivalent value and no ozone depletion 
     potential.
       ``(ii) Definition.--In this subparagraph, the term 
     `products' means refrigerators, freezers, dehumidifiers, air 
     conditioners, foam insulation, technical aerosols, fire 
     protection systems, and semiconductors.
       ``(iii) Financial assistance.--The Administrator may 
     provide financial assistance to manufacturers pursuant to 
     clause (i) for--

       ``(I) the design and configuration of new products that use 
     alternative substances with no or low carbon dioxide 
     equivalent value and no ozone depletion potential; and
       ``(II) the redesign and retooling of facilities for the 
     manufacture of products in the United States that use 
     alternative substances with no or low carbon dioxide 
     equivalent value and no ozone depletion potential.

       ``(iv) Reports.--For any fiscal year during which the 
     Administrator provides financial assistance pursuant to this 
     subparagraph, the Administrator shall submit a report to the 
     Congress within 3 months of the end of such fiscal year 
     detailing the amounts, recipients, specific purposes, and 
     results of the financial assistance provided.''.
       (b) Table of Contents.--The table of contents of title VI 
     of the Clean Air Act (42 U.S.C. 7671 et seq.) is amended by 
     adding the following new item at the end thereof:

``Sec. 619. Hydrofluorocarbons (HFCs).''.
       (c) Fire Suppression Agents.--Section 605(a) of the Clean 
     Air Act (42 U.S.C. 7671(a)) is amended--
       (1) by striking ``or'' at the end of paragraph (2);
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``; or''; and
       (3) by adding the following new paragraph after paragraph 
     (3):
       ``(4) is listed as acceptable for use as a fire suppression 
     agent for nonresidential applications in accordance with 
     section 612(c).''.
       (d) Motor Vehicle Air Conditioners.--
       (1) Section 609(e) of the Clean Air Act (42 U.S.C. 
     7671h(e)) is amended by inserting ``, group I'' after each 
     reference to ``class II'' in the text and heading.
       (2) Section 609 of the Clean Air Act (42 U.S.C. 7671h) is 
     amended by adding the following new subsection after 
     subsection (e):
       ``(f) Class II, Group II Substances.--
       ``(1) Repair.--The Administrator may promulgate regulations 
     establishing requirements for repair of motor vehicle air 
     conditioners prior to adding a class II, group II substance.
       ``(2) Small containers.--(A) The Administrator may 
     promulgate regulations establishing servicing practices and 
     procedures for recovery of class II, group II substances from 
     containers which contain less than 20 pounds of such class 
     II, group II substances.
       ``(B) Not later than 18 months after enactment of this 
     subsection, the Administrator shall either promulgate 
     regulations requiring that containers which contain less than 
     20 pounds of a class II, group II substance be equipped with 
     a device or technology that limits refrigerant emissions and 
     leaks from the container and limits refrigerant emissions and 
     leaks during the transfer of refrigerant from the container 
     to the motor vehicle air conditioner or issue a determination 
     that such requirements are not necessary or appropriate.
       ``(C) Not later than 18 months after enactment of this 
     subsection, the Administrator shall promulgate regulations 
     establishing requirements for consumer education materials on 
     best practices associated with the use of containers which 
     contain less than 20 pounds of a class II, group II substance 
     and prohibiting the sale or distribution, or offer for sale 
     or distribution, of any class II, group II substance in any 
     container which contains less than 20 pounds of such class 
     II, group II substance, unless consumer education materials 
     consistent with such requirements are displayed and available 
     at point-of-sale locations, provided to the consumer, or 
     included in or on the packaging of the container which 
     contain less than 20 pounds of a class II, group II 
     substance.
       ``(D) The Administrator may, through rulemaking, extend the 
     requirements established under this paragraph to containers 
     which contain 30 pounds or less of a class II, group II 
     substance if the Administrator determines that such action 
     would produce significant environmental benefits.
       ``(3) Restriction of sales.--Effective January 1, 2014, no 
     person may sell or distribute or offer to sell or distribute 
     or otherwise introduce into interstate commerce any motor 
     vehicle air conditioner refrigerant in any size container 
     unless the substance has been found acceptable for use in a 
     motor vehicle air conditioner under section 612.''.
       (e) Safe Alternatives Policy.--Section 612(e) of the Clean 
     Air Act (42 U.S.C. 7671k(e)) is amended by inserting ``or 
     class II'' after each reference to ``class I''.

     SEC. 333. BLACK CARBON.

       (a) Definition.--As used in this section, the term ``black 
     carbon'' means primary light absorbing aerosols, as defined 
     by the Administrator, based on the best available science.
       (b) Black Carbon Abatement Report.--Not later than one year 
     after the date of enactment of this section, the 
     Administrator shall, in consultation with other appropriate 
     Federal agencies, submit to Congress a report regarding black 
     carbon emissions. The report shall include the following:
       (1) A summary of the current information and research that 
     identifies--
       (A) an inventory of the major sources of black carbon 
     emissions in the United States and throughout the world, 
     including--
       (i) an estimate of the quantity of current and projected 
     future emissions; and

[[Page 16625]]

       (ii) the net climate forcing of the emissions from such 
     sources, including consideration of co-emissions of other 
     pollutants;
       (B) effective and cost-effective control technologies, 
     operations, and strategies for additional domestic and 
     international black carbon emissions reductions, such as 
     diesel retrofit technologies on existing on-road, non-road, 
     and stationary engines and programs to address residential 
     cookstoves, and forest and agriculture-based burning;
       (C) potential metrics and approaches for quantifying the 
     climatic effects of black carbon emissions, including its 
     radiative forcing and warming effects, that may be used to 
     compare the climate benefits of different mitigation 
     strategies, including an assessment of the uncertainty in 
     such metrics and approaches; and
       (D) the public health and environmental benefits associated 
     with additional controls for black carbon emissions.
       (2) Recommendations regarding--
       (A) development of additional emissions monitoring 
     techniques and capabilities, modeling, and other black 
     carbon-related areas of study;
       (B) areas of focus for additional study of technologies, 
     operations, and strategies with the greatest potential to 
     reduce emissions of black carbon and associated public 
     health, economic, and environmental impacts associated with 
     these emissions; and
       (C) actions, in addition to those identified by the 
     Administrator under section 851 of the Clean Air Act (as 
     added by subsection (c)), the Federal Government may take to 
     encourage or require reductions in black carbon emissions.
       (c) Black Carbon Mitigation.--Title VIII of the Clean Air 
     Act, as added by section 331 of this Act, and amended by 
     section 222 of this Act, is further amended by adding after 
     part D the following new part:

                         ``PART E--BLACK CARBON

     ``SEC. 851. BLACK CARBON.

       ``(a) Domestic Black Carbon Mitigation.--Not later than 18 
     months after the date of enactment of this section, the 
     Administrator, taking into consideration the public health 
     and environmental impacts of black carbon emissions, 
     including the effects on global and regional warming, the 
     Arctic, and other snow and ice-covered surfaces, shall 
     propose regulations under the existing authorities of this 
     Act to reduce emissions of black carbon or propose a finding 
     that existing regulations promulgated pursuant to this Act 
     adequately regulate black carbon emissions. Not later than 
     two years after the date of enactment of this section, the 
     Administrator shall promulgate final regulations under the 
     existing authorities of this Act or finalize the proposed 
     finding. Such regulations shall not apply to specific types, 
     classes, categories, or other suitable groupings of emissions 
     sources that the Administrator finds are subject to adequate 
     regulation.
       ``(b) International Black Carbon Mitigation.--
       ``(1) Report.--Not later than one year after the date of 
     enactment of this section, the Administrator, in coordination 
     with the Secretary of State and other appropriate Federal 
     agencies, shall transmit a report to Congress on the amount, 
     type, and direction of all present United States financial, 
     technical, and related assistance to foreign countries to 
     reduce, mitigate, and otherwise abate black carbon emissions.
       ``(2) Other opportunities.--The report required under 
     paragraph (1) shall also identify opportunities and 
     recommendations, including action under existing authorities, 
     to achieve significant black carbon emission reductions in 
     foreign countries through technical assistance or other 
     approaches to--
       ``(A) promote sustainable solutions to bring clean, 
     efficient, safe, and affordable stoves, fuels, or both stoves 
     and fuels to residents of developing countries that are 
     reliant on solid fuels such as wood, dung, charcoal, coal, or 
     crop residues for home cooking and heating, so as to help 
     reduce the public health, environmental, and economic impacts 
     of black carbon emissions from these sources by--
       ``(i) identifying key regions for large-scale demonstration 
     efforts, and key partners in each such region; and
       ``(ii) developing for each such region a large-scale 
     implementation strategy with a goal of collectively reaching 
     20,000,000 homes over 5 years with interventions that will--

       ``(I) increase stove efficiency by over 50 percent (or such 
     other goal as determined by the Administrator);
       ``(II) reduce emissions of black carbon by over 60 percent 
     (or such other goal as determined by the Administrator); and
       ``(III) reduce the incidence of severe pneumonia in 
     children under 5 years old by over 30 percent (or such other 
     goal as determined by the Administrator);

       ``(B) make technological improvements to diesel engines and 
     provide greater access to fuels that emit less or no black 
     carbon;
       ``(C) reduce unnecessary agricultural or other biomass 
     burning where feasible alternatives exist;
       ``(D) reduce unnecessary fossil fuel burning that produces 
     black carbon where feasible alternatives exist;
       ``(E) reduce other sources of black carbon emissions; and
       ``(F) improve capacity to achieve greater compliance with 
     existing laws to address black carbon emissions.''.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 334. STATES.

       Section 116 of the Clean Air Act (42 U.S.C. 7416) is 
     amended by adding the following at the end thereof: ``For the 
     purposes of this section, the phrases `standard or limitation 
     respecting emissions of air pollutants' and `requirements 
     respecting control or abatement of air pollution' shall 
     include any provision to: cap greenhouse gas emissions, 
     require surrender to the State or a political subdivision 
     thereof of emission allowances or offset credits established 
     or issued under this Act, and require the use of such 
     allowances or credits as a means of demonstrating compliance 
     with requirements established by a State or political 
     subdivision thereof.''.

     SEC. 335. STATE PROGRAMS.

       Title VIII of the Clean Air Act, as added by section 331 of 
     this Act and amended by several sections of this Act, is 
     further amended by adding after part E (as added by section 
     333(c) of this Act) the following new part:

                        ``PART F--MISCELLANEOUS

     ``SEC. 861. STATE PROGRAMS.

       ``Notwithstanding section 116, no State or political 
     subdivision thereof shall implement or enforce a cap and 
     trade program that covers any capped emissions emitted during 
     the years 2012 through 2017. For purposes of this section, 
     the term `cap and trade program' means a system of greenhouse 
     gas regulation under which a State or political subdivision 
     issues a limited number of tradable instruments in the nature 
     of emission allowances and requires that sources within its 
     jurisdiction surrender such tradeable instruments for each 
     unit of greenhouse gases emitted during a compliance period. 
     For purposes of this section, a `cap-and-trade program' does 
     not include a target or limit on greenhouse gas emissions 
     adopted by a State or political subdivision that is 
     implemented other than through the issuance and surrender of 
     a limited number of tradable instruments in the nature of 
     emission allowances, nor does it include any other standard, 
     limit, regulation, or program to reduce greenhouse gas 
     emissions that is not implemented through the issuance and 
     surrender of a limited number of tradeable instruments in the 
     nature of emission allowances. For purposes of this section, 
     the term `cap and trade program' does not include, among 
     other things, fleet-wide motor vehicle emission requirements 
     that allow greater emissions with increased vehicle 
     production, or requirements that fuels, or other products, 
     meet an average pollution emission rate or lifecycle 
     greenhouse gas standard.

     ``SEC. 862. GRANTS FOR SUPPORT OF AIR POLLUTION CONTROL 
                   PROGRAMS.

       ``The Administrator is authorized to make grants to air 
     pollution control agencies pursuant to section 105 for 
     purposes of assisting in the implementation of programs to 
     address global warming established under the Safe Climate 
     Act.''.

     SEC. 336. ENFORCEMENT.

       (a) Remand.--Section 307(b) of the Clean Air Act (42 U.S.C. 
     7607(b)) is amended by adding the following new paragraphs at 
     the end thereof:
       ``(3) If the court determines that any action of the 
     Administrator is arbitrary, capricious, or otherwise 
     unlawful, the court may remand such action, without vacatur, 
     if vacatur would impair or delay protection of the 
     environment or public health or otherwise undermine the 
     timely achievement of the purposes of this Act.
       ``(4) If the court determines that any action of the 
     Administrator is arbitrary, capricious, or otherwise 
     unlawful, and remands the matter to the Administrator, the 
     Administrator shall complete final action on remand within an 
     expeditious time period no longer than the time originally 
     allowed for the action or one year, whichever is less, unless 
     the court on motion determines that a shorter or longer 
     period is necessary, appropriate, and consistent with the 
     purposes of this Act. The court of appeals shall have 
     jurisdiction to enforce a deadline for action on remand under 
     this subparagraph.''.
       (b) Petition for Reconsideration.--Section 307(d)(7)(B) of 
     the Clean Air Act (42 U.S.C. 7607(d)(7)(B)) is amended as 
     follows:
       (1) By inserting after the second sentence ``If a petition 
     for reconsideration is filed, the Administrator shall take 
     final action on such petition, including promulgation of 
     final action either revising or determining not to revise the 
     action for which reconsideration is sought, within 150 days 
     after the petition is received by the Administrator or the 
     petition shall be deemed denied for the purpose of judicial 
     review.''.
       (2) By amending the third sentence to read as follows: 
     ``Such person may seek judicial review of such denial, or of 
     any other final action, by the Administrator, in response to 
     a petition for reconsideration, in the United States court of 
     appeals for the appropriate circuit (as provided in 
     subsection (b)).''.

     SEC. 337. CONFORMING AMENDMENTS.

       (a) Federal Enforcement.--Section 113 of the Clean Air Act 
     (42 U.S.C. 7413) is amended as follows:

[[Page 16626]]

       (1) In subsection (a)(3), by striking ``or title VI,'' and 
     inserting ``title VI, title VII, or title VIII''.
       (2) In subsection (b), by striking ``or a major stationary 
     source'' and inserting ``a major stationary source, or a 
     covered EGU under title VIII'' in the material preceding 
     paragraph (1).
       (3) In paragraph (2) of subsection (b), by striking ``or 
     title VI'' and inserting ``title VI, title VII, or title 
     VIII''.
       (4) In subsection (c)--
       (A) in the first sentence of paragraph (1), by striking 
     ``or title VI (relating to stratospheric ozone control),'' 
     and inserting ``title VI, title VII, or title VIII,''; and
       (B) in the first sentence of paragraph (3), by striking 
     ``or VI'' and inserting ``VI, VII, or VIII''.
       (5) In subsection (d)(1)(B), by striking ``or VI'' and 
     inserting ``VI, VII, or VIII''.
       (6) In subsection (f), in the first sentence, by striking 
     ``or VI'' and inserting ``VI, VII, or VIII''.
       (b) Retention of State Authority.--Section 116 of the Clean 
     Air Act (42 U.S.C. 7416) is amended as follows:
       (1) By striking ``and 233'' and inserting ``233''.
       (2) By striking ``of moving sources)'' and inserting ``of 
     moving sources), and 861 (preempting certain State greenhouse 
     gas programs for a limited time)''.
       (c) Inspections, Monitoring, and Entry.--Section 114(a) of 
     the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking 
     ``section 112,'' and all that follows through ``(ii)'' and 
     inserting the following: ``section 112, or any regulation of 
     greenhouse gas emissions under title VII or VIII, (ii)''.
       (d) Enforcement.--Subsection (f) of section 304 of the 
     Clean Air Act (42 U.S.C. 7604(f)) is amended as follows:
       (1) By striking ``; or'' at the end of paragraph (3) 
     thereof and inserting a comma.
       (2) By striking the period at the end of paragraph (4) 
     thereof and inserting ``, or''.
       (3) By adding the following after paragraph (4) thereof:
       ``(5) any requirement of title VII or VIII.''.
       (e) Administrative Proceedings and Judicial Review.--
     Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended 
     as follows:
       (1) In subsection (a), by striking ``, or section 306'' and 
     inserting ``section 306, or title VII or VIII''.
       (2) In subsection (b)(1)--
       (A) by striking ``,,'' and inserting ``,'' in each place 
     such punctuation appears; and
       (B) by striking ``section 120,'' in the first sentence and 
     inserting ``section 120, any final action under title VII or 
     VIII,''.
       (3) In subsection (d)(1) by amending subparagraph (S) to 
     read as follows:
       ``(S) the promulgation or revision of any regulation under 
     title VII or VIII,''.

     SEC. 338. DAVIS-BACON COMPLIANCE.

       (a) In General.--Notwithstanding any other provision of law 
     and in a manner consistent with other provisions in this Act, 
     to receive emission allowances or funding under this Act, or 
     the amendments made by this Act, the recipient shall provide 
     reasonable assurances that all laborers and mechanics 
     employed by contractors and subcontractors on projects funded 
     directly by or assisted in whole or in part by and through 
     the Federal Government pursuant to this Act, or the 
     amendments made by this Act, or by any entity established in 
     accordance with this Act, or the amendments made by this Act, 
     including the Carbon Storage Research Corporation, will be 
     paid wages at rates not less than those prevailing on 
     projects of a character similar in the locality as determined 
     by the Secretary of Labor in accordance with subchapter IV of 
     chapter 31 of title 40, United States Code (commonly known as 
     the ``Davis-Bacon Act''). With respect to the labor standards 
     specified in this section, the Secretary of Labor shall have 
     the authority and functions set forth in Reorganization Plan 
     Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.
       (b) Exemption.--Neither subsection (a) nor the requirements 
     of subchapter IV of chapter 31 of title 40, United States 
     Code, shall apply to retrofitting of the following:
       (1) Single family homes (both attached and detached) under 
     section 202.
       (2) Owner-occupied residential units in larger buildings 
     that have their own dedicated space-conditioning systems 
     under section 202.
       (3) Residential buildings (as defined in section 202(a)(5)) 
     if designed for residential use by less than 4 families.
       (4) Nonresidential buildings (as defined in section 
     202(a)(1)) if the net interior space of such nonresidential 
     building is less than 6,500 square feet.

     SEC. 339. NATIONAL STRATEGY FOR DOMESTIC BIOLOGICAL CARBON 
                   SEQUESTRATION.

       Not later than 1 year after the date of enactment of this 
     Act, the Administrator of the Environmental Protection 
     Agency, in consultation with the Secretary of Energy, the 
     Secretary of Agriculture, the Secretary of the Interior, and 
     the heads of such other relevant Federal agencies as the 
     President may designate, shall submit to Congress a report 
     setting forth a unified and comprehensive strategy to address 
     the key legal, regulatory, technological, and other barriers 
     to maximizing the potential for sustainable biological 
     sequestration of carbon within the United States.

     SEC. 340. REDUCING ACID RAIN AND MERCURY POLLUTION.

       Not later than 18 months after the date of enactment of 
     this Act, the Administrator shall submit to Congress a report 
     that analyzes the effects of different carbon dioxide 
     reduction strategies and technologies on the emissions of 
     mercury, sulfur dioxide, and nitrogen oxide, which cause acid 
     rain, particulate matter, ground level ozone, mercury 
     contamination, and other environmental problems. The report 
     shall assess a variety of carbon reduction technologies, 
     including the application of various carbon capture and 
     sequestration technologies for both new and existing power 
     plants. The report shall assess the current scientific and 
     technical understanding of the interplay between the various 
     technologies and emissions of air pollutants, identify 
     hurdles to strategies that could cost-effectively reduce 
     emissions of multiple pollutants, and make appropriate 
     recommendations.

                  Subtitle D--Carbon Market Assurance

     SEC. 341. CARBON MARKET ASSURANCE.

       (a) Amendment.--The Federal Power Act (16 U.S.C. 791a and 
     following) is amended by adding at the end the following:

                   ``PART IV--CARBON MARKET ASSURANCE

     ``SEC. 401. OVERSIGHT AND ASSURANCE OF CARBON MARKETS.

       ``(a) Definitions.--In this section:
       ``(1) Contract of sale.--The term `contract of sale' 
     includes sales, agreements of sale, and agreements to sell.
       ``(1) Covered entity.--The term `covered entity' shall have 
     the meaning given in section 700 of the Clean Air Act.
       ``(2) Regulated allowance.--The term `regulated allowance' 
     means any emission allowance, compensatory allowance, offset 
     credit, or Federal renewable electricity credit established 
     or issued under the American Clean Energy and Security Act of 
     2009.
       ``(3) Regulated instrument.--The term `regulated 
     instrument' means a regulated allowance or a regulated 
     allowance derivative.
       ``(b) Regulated Allowance Market.--
       ``(1) Authority.--The Commission shall promulgate 
     regulations for the establishment, operation, and oversight 
     of markets for regulated allowances not later than 18 months 
     after the date of the enactment of this section, and from 
     time to time thereafter as may be appropriate.
       ``(2) Regulations.--The regulations promulgated pursuant to 
     paragraph (1) shall--
       ``(A) provide for effective and comprehensive market 
     oversight;
       ``(B) prohibit fraud, market manipulation, and excess 
     speculation, and provide measures to limit unreasonable 
     fluctuation in the prices of regulated allowances;
       ``(C) facilitate compliance with title VII of the Clean Air 
     Act by covered entities;
       ``(D) ensure market transparency and recordkeeping deemed 
     necessary and appropriate by the Commission to provide for 
     efficient price discovery; prevention of fraud, market 
     manipulation, and excess speculation; and compliance with 
     title VII of the Clean Air Act and section 610 of the Public 
     Utility Regulatory Policies Act of 1978;
       ``(E) as necessary, ensure that position limitations for 
     individual market participants are established with respect 
     to each class of regulated allowances;
       ``(F) as necessary, ensure that margin requirements are 
     established for each class of regulated allowances;
       ``(G) provide for the formation and operation of a fair, 
     orderly and liquid national market system that allows for the 
     best execution in the trading of regulated allowances;
       ``(H) limit or eliminate counterparty risks, market power 
     concentration risks, and other risks associated with trading 
     regulated allowances outside of trading facilities
       ``(I) establish standards for qualification as, and 
     operation of, trading facilities for regulated allowances;
       ``(J) establish standards for qualification as, and 
     operation of, clearing organizations for trading facilities 
     for regulated allowances; and
       ``(K) include such other requirements as necessary to 
     preserve market integrity and facilitate compliance with 
     title VII of the Clean Air Act and section 610 of the Public 
     Utility Regulatory Policies Act of 1978 and the regulations 
     promulgated under such title and such section.
       ``(3) Enforcement.--
       ``(A) In general.--If the Commission determines, after 
     notice and an opportunity for a hearing on the record, that 
     any entity has violated any rule or order issued by the 
     Commission under this subsection, the Commission may issue an 
     order--
       ``(i) prohibiting the entity from trading on a trading 
     facility for regulated allowances registered with the 
     Commission, and requiring all such facilities to refuse the 
     entity all privileges for such period as may be specified in 
     the order;
       ``(ii) if the entity is registered with the Commission in 
     any capacity, suspending for a period of not more than 6 
     months, or revoking, the registration of the entity;
       ``(iii) assessing the entity a civil penalty of not more 
     than $1,000,000 per day per violation

[[Page 16627]]

     for as long as the violation continues (and in determining 
     the amount of a civil penalty, the Commission shall take into 
     account the nature and seriousness of the violation and the 
     efforts to remedy the violation); and
       ``(iv) requiring disgorgement of unjust profits, 
     restitution to entities harmed by the violation as determined 
     by the Commission, or both.
       ``(B) Authority to suspend or revoke registration.--The 
     Commission may suspend for a period of not more than 6 
     months, or revoke, the registration of a trading facility for 
     regulated allowances or of a clearing organization registered 
     by the Commission if, after notice and opportunity for a 
     hearing on the record, the Commission finds that--
       ``(i) the entity violated any rule or order issued by the 
     Commission under this subsection; or
       ``(ii) a director, officer, employee, or agent of the 
     entity has violated any rule or order issued by the 
     Commission under this subsection.
       ``(C) Cease and desist proceedings.--
       ``(i) In general.--If the Commission determines that any 
     entity may be violating, may have violated, or may be about 
     to violate any provision of this part, or any regulation 
     promulgated by, or any restriction, condition, or order made 
     or imposed by, the Commission under this Act, and if the 
     Commission finds that the alleged violation or threatened 
     violation, or the continuation of the violation, is likely to 
     result in significant harm to covered entities or market 
     participants, or significant harm to the public interest, the 
     Commission may issue a temporary order requiring the entity--

       ``(I) to cease and desist from the violation or threatened 
     violation;
       ``(II) to take such action as is necessary to prevent the 
     violation or threatened violation; and
       ``(III) to prevent, as the Commission determines to be 
     appropriate--

       ``(aa) significant harm to covered entities or market 
     participants;
       ``(bb) significant harm to the public interest; and
       ``(cc) frustration of the ability of the Commission to 
     conduct the proceedings or to redress the violation at the 
     conclusion of the proceedings.
       ``(ii) Timing of entry.--An order issued under clause (i) 
     shall be entered only after notice and opportunity for a 
     hearing, unless the Commission determines that notice and 
     hearing before entry would be impracticable or contrary to 
     the public interest.
       ``(iii) Effective date.--A temporary order issued under 
     clause (i) shall--

       ``(I) become effective upon service upon the entity; and
       ``(II) unless set aside, limited, or suspended by the 
     Commission or a court of competent jurisdiction, remain 
     effective and enforceable pending the completion of the 
     proceedings.

       ``(D) Proceedings regarding dissipation or conversion of 
     assets.--
       ``(i) In general.--In a proceeding involving an alleged 
     violation of a regulation or order promulgated or issued by 
     the Commission, if the Commission determines that the alleged 
     violation or related circumstances are likely to result in 
     significant dissipation or conversion of assets, the 
     Commission may issue a temporary order requiring the 
     respondent to take such action as is necessary to prevent the 
     dissipation or conversion of assets.
       ``(ii) Timing of entry.--An order issued under clause (i) 
     shall be entered only after notice and opportunity for a 
     hearing, unless the Commission determines that notice and 
     hearing before entry would be impracticable or contrary to 
     the public interest.
       ``(iii) Effective date.--A temporary order issued under 
     clause (i) shall--

       ``(I) become effective upon service upon the respondent; 
     and
       ``(II) unless set aside, limited, or suspended by the 
     Commission or a court of competent jurisdiction, remain 
     effective and enforceable pending the completion of the 
     proceedings.

       ``(E) Review of temporary orders.--
       ``(i) Application for review.--At any time after a 
     respondent has been served with a temporary cease-and-desist 
     order pursuant to subparagraph (C) or order regarding the 
     dissipation or conversion of assets pursuant to subparagraph 
     (D), the respondent may apply to the Commission to have the 
     order set aside, limited, or suspended.
       ``(ii) No prior hearing.--If a respondent has been served 
     with a temporary order entered without a prior hearing of the 
     Commission--

       ``(I) the respondent may, not later than 10 days after the 
     date on which the order was served, request a hearing on the 
     application; and
       ``(II) the Commission shall hold a hearing and render a 
     decision on the application at the earliest practicable time.

       ``(iii) Judicial review.--

       ``(I) In general.--An entity shall not be required to 
     submit a request for rehearing of a temporary order before 
     seeking judicial review in accordance with this subparagraph.
       ``(II) Timing of review.--Not later than 10 days after the 
     date on which a respondent is served with a temporary cease-
     and-desist order entered with a prior hearing of the 
     Commission, or 10 days after the date on which the Commission 
     renders a decision on an application and hearing under clause 
     (i) with respect to any temporary order entered without such 
     a prior hearing--

       ``(aa) the respondent may obtain a review of the order in a 
     United States circuit court having jurisdiction over the 
     circuit in which the respondent resides or has a principal 
     place of business, or in the United States Court of Appeals 
     for the District of Columbia Circuit, for an order setting 
     aside, limiting, or suspending the effectiveness or 
     enforcement of the order; and
       ``(bb) the court shall have jurisdiction to enter such an 
     order.

       ``(III) No prior hearing.--A respondent served with a 
     temporary order entered without a prior hearing of the 
     Commission may not apply to the applicable court described in 
     subclause (II) except after a hearing and decision by the 
     Commission on the application of the respondent under clauses 
     (i) and (ii).

       ``(iv) Procedures.--Section 222 and Part III shall apply 
     to--

       ``(I) an application for review of an order under clause 
     (i); and
       ``(II) an order subject to review under clause (iii).

       ``(v) No automatic stay of temporary order.--The 
     commencement of proceedings under clause (iii) shall not, 
     unless specifically ordered by the court, operate as a stay 
     of the order of the Commission.
       ``(F) Actions to collect civil penalties.--If any person 
     fails to pay a civil penalty assessed under this subsection 
     after an order assessing the penalty has become final and 
     unappealable, the Commission shall bring an action to recover 
     the amount of the penalty in any appropriate United States 
     district court.
       ``(4) Transaction fees.--
       ``(A) In general.--The Commission shall, in accordance with 
     this paragraph, establish and collect transaction fees 
     designed to recover the costs to the Federal Government of 
     the supervision and regulation of regulated allowance markets 
     and market participants, including related costs for 
     enforcement activities, policy and rulemaking activities, 
     administration, legal services, and international regulatory 
     activities.
       ``(B) Initial fee rate.--Each trading facility on or 
     through which regulated allowances are transacted shall pay 
     to the Commission a fee at a rate of not more than $15 per 
     $1,000,000 of the aggregate dollar amount of sales of 
     regulated allowances transacted through the facility.
       ``(C) Annual adjustment of fee rate.--The Commission shall, 
     on an annual basis--
       ``(i) assess the rate at which fees are to be collected as 
     necessary to meet the cost recovery requirement in 
     subparagraph (A); and
       ``(ii) consistent with subparagraph (B), adjust the rate as 
     necessary in order to meet the requirement.
       ``(D) Report on adequacy of fees in recovering costs.--The 
     Commission, shall, on an annual basis, report to the 
     Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate on the adequacy of the transaction 
     fees in providing funding for the Commission to regulate the 
     regulated allowance markets.
       ``(5) Judicial review.--Judicial review of actions taken by 
     the Commission under this subsection shall be pursuant to 
     part III.
       ``(6) Additional employees report and appointment.--Within 
     18 months after the date of the enactment of this section, 
     the Commission shall submit to the President, the Committee 
     on Energy and Commerce of the House of Representatives, and 
     the Committee on Energy and Natural Resources of the Senate, 
     a report that contains recommendations as to how many 
     additional employees would be necessary to provide robust 
     oversight and enforcement of the regulations promulgated 
     under this subsection. As soon as practicable after the 
     completion of the report, subject to appropriations, the 
     Commission shall appoint the recommended number of additional 
     employees for such purposes.
       ``(e) Working Group.--
       ``(1) Establishment.--Not later than 30 days after the date 
     of the enactment of this section, the President shall 
     establish an interagency working group on carbon market 
     oversight, which shall include the Administrator of the 
     Environmental Protection Agency and representatives of other 
     relevant agencies, to make recommendations to the Commodity 
     Futures Trading Commission regarding proposed regulations for 
     the establishment, operation, and oversight of markets for 
     regulated allowance derivatives.
       ``(2) Report.--Not later than 180 days after the date of 
     the enactment of this section, and biennially thereafter, the 
     interagency working group shall submit a written report to 
     the President and Congress that includes its recommendations 
     to the Commodity Futures Trading Commission regarding 
     proposed regulations for the establishment, operation, and 
     oversight of markets for regulated allowance derivatives and 
     any recommendations to Congress for statutory changes needed 
     to ensure the establishment, operation, and oversight of 
     transparent, fair, stable, and efficient markets for 
     regulated allowance derivatives.

[[Page 16628]]

       ``(d) Penalty for Fraud and False or Misleading 
     Statements.--A person convicted under section 1041 of title 
     18, United States Code, may be prohibited from holding or 
     trading regulated allowances for a period of not more than 5 
     years pursuant to the regulations promulgated under this 
     section, except that, if the person is a covered entity, the 
     person shall be allowed to hold sufficient regulated 
     allowances to meet its compliance obligations.
       ``(e) Relation to State Law.--Nothing in this section shall 
     preclude, diminish or qualify any authority of a State or 
     political subdivision thereof to adopt or enforce any unfair 
     competition, antitrust, consumer protection, securities, 
     commodities or any other law or regulation, except that no 
     such State law or regulation may relieve any person of any 
     requirement otherwise applicable under this section.
       ``(f) Market Reports.--
       ``(1) Collection and analysis of information.--The 
     Commission, in conjunction with the Commodity Futures Trading 
     Commission shall, on a continuous basis, analyze the 
     following information on the functioning of the markets for 
     regulated instruments established under this part:
       ``(A) The status of, and trends in, the markets, including 
     prices, trading volumes, transaction types, and trading 
     channels and mechanisms.
       ``(B) Spikes, collapses, and volatility in prices of 
     regulated instruments, and the causes therefor.
       ``(C) The relationship between the market for regulated 
     allowances and allowance derivatives, and the spot and 
     futures markets for energy commodities, including 
     electricity.
       ``(D) The economic effects of the markets, including to 
     macro- and micro-economic effects of unexpected significant 
     increases and decreases in the price of regulated 
     instruments.
       ``(E) Any changes in the roles, activities, or strategies 
     of various market participants.
       ``(F) Regional, industrial, and consumer responses to the 
     markets, and energy investment responses to the markets.
       ``(G) Any other issue related to the markets that the 
     Commission, Commodity Futures Trading Commission, deems 
     appropriate.
       ``(2) Annual reports to the congress.-- Not later than 1 
     month after the end of each calendar year, the Commission, in 
     conjunction with the Federal agency, shall submit to the 
     President, the Committee on Agriculture and Committee on 
     Energy and Commerce of the House of Representatives, and the 
     Committee on Agriculture, Nutrition, and Forestry and 
     Committee on Energy and Natural Resources of the Senate, and 
     make available to the public, a report on the matters 
     described in paragraph (1) with respect to the year, 
     including recommendations for any administrative or statutory 
     measures the Commission, and the Commodity Futures Trading 
     Commission consider necessary to address any threats to the 
     transparency, fairness, or integrity of the markets in 
     regulated instruments.

     ``SEC. 402. APPLICABILITY OF PART III PROVISIONS.

       ``(a) Sections 301, 304, and 306.--Sections 301, 304, and 
     306 shall not apply to this part.
       ``(b) Section 315.--In applying section 315(a) to this 
     part, the words ``person or entity'' shall be substituted for 
     the words ``licensee or public utility''. In applying section 
     315(b) to this part, the words ``an entity'' shall be 
     substituted for the words ``a licensee or public utility'' 
     and the words ``such entity'' shall be substituted for the 
     words ``such licensee or public utility.''
       ``(c) Section 316.--Section 316(a) shall not apply to 
     section 401(d).''.
       (b) Criminal Prohibition Against Fraud and False or 
     Misleading Statements.--
       (1) Chapter 47 of title 18, United States Code, is amended 
     by adding at the end the following:

     ``Sec. 1041. Fraud and false statements in connection with 
       regulated allowances

       ``Whoever in connection with a transaction involving a 
     regulated allowance (as defined in section 401(a) of the 
     Federal Power Act, as added by section 341 of the American 
     Clean Energy and Security Act of 2009), knowingly--
       ``(1) makes or uses a materially false or misleading 
     statement, writing, representation, scheme, or device; or
       ``(2) falsifies, conceals, or covers up by any trick, 
     scheme, or device any material fact,
     shall be fined not more than $5,000,000 (or $25,000,000 in 
     the case of an organization) or imprisoned not more than 20 
     years, or both.''.
       (2) The table of sections at the beginning of chapter 47 of 
     title 18, United States Code, is amended by adding at the end 
     the following new item:

``1041. Fraud and false statements in connection with regulated 
              allowances.''.

     SEC. 342. CARBON DERIVATIVE MARKETS.

       (a) Section 1a(14) of the Commodity Exchange Act (7 U.S.C. 
     1a(14)) is amended by striking ``or an agricultural 
     commodity'' and inserting ``, an agricultural commodity, or 
     any emission allowance, compensatory allowance, offset 
     credit, or Federal renewable electricity credit established 
     or issued under the American Clean Energy and Security Act of 
     2009''.
       (b) Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by 
     adding at the end the following:
       ``(6) This subsection does not apply to any agreement, 
     contract, or transaction for any emission allowance, 
     compensatory allowance, offset credit, or Federal renewable 
     electricity credit established or issued under the American 
     Clean Energy and Security Act of 2009.''.

                Subtitle E--Additional Market Assurance

     SEC. 351. REGULATION OF CERTAIN TRANSACTIONS IN DERIVATIVES 
                   INVOLVING ENERGY COMMODITIES.

       (a) Energy Commodity Defined.--Section 1a of the Commodity 
     Exchange Act (7 U.S.C. 1a) is amended--
       (1) in paragraph (14), by inserting ``, an energy 
     commodity,'' after ``excluded commodity'';
       (2) by redesignating paragraphs (13) through (21) and 
     paragraphs (22) through (34) as paragraphs (14) through (22) 
     and paragraphs (24) through (36), respectively;
       (3) by inserting after paragraph (12) the following:
       ``(13) Energy commodity.--The term `energy commodity' 
     means--
       ``(A) coal;
       ``(B) crude oil, gasoline, diesel fuel, jet fuel, heating 
     oil, and propane;
       ``(C) electricity (excluding financial transmission rights 
     which are subject to regulation and oversight by the Federal 
     Energy Regulatory Commission);
       ``(D) natural gas; and
       ``(E) any other substance (other than an excluded 
     commodity, a metal, or an agricultural commodity) that is 
     used as a source of energy, as the Commission, in its 
     discretion, deems appropriate.''; and
       (4) by inserting after paragraph (22) (as so redesignated 
     by paragraph (2) of this subsection) the following:
       ``(23) Included energy transaction.--The term `included 
     energy transaction' means a contract, agreement, or 
     transaction in an energy commodity for future delivery that 
     provides for a delivery point of the energy commodity in the 
     United States or a territory or possession of the United 
     States, or that is offered or transacted on or through a 
     computer terminal located in the United States.''.
       (b) Extension of Regulatory Authority to Swaps Involving 
     Energy Transactions.--Section 2(g) of such Act (7 U.S.C. 
     2(g)) is amended by inserting ``or an energy commodity'' 
     after ``agricultural commodity''.
       (c) Elimination of Exemption for Over-the-counter Swaps 
     Involving Energy Commodities.--Section 2(h)(1) of such Act (7 
     U.S.C. 2(h)(1)) is amended by inserting ``(other than an 
     energy commodity)'' after ``exempt commodity''.
       (d) Extension of Regulatory Authority to Included Energy 
     Transactions on Foreign Boards of Trade.--Section 4 of such 
     Act (7 U.S.C. 6) is amended--
       (1) in subsection (a), by inserting ``, and which is not an 
     included energy transaction'' after ``territories or 
     possessions'' the 2nd place it appears; and
       (2) in subsection (b), by adding at the end the following: 
     ``The preceding sentence shall not apply with respect to 
     included energy transactions.''.
       (e) Limitation of General Exemptive Authority of the CFTC 
     With Respect to Included Energy Transactions.--
       (1) In general.--Section 4(c) of such Act (7 U.S.C. 6(c)) 
     is amended by adding at the end the following:
       ``(6) The Commission may not exempt any included energy 
     transaction from the requirements of subsection (a), unless 
     the Commission provides 60 days advance notice to the 
     Congress and the Position Limit Energy Advisory Group and 
     solicits public comment about the exemption request and any 
     proposed Commission action.''.
       (2) Nullification of no-action letter exemptions to certain 
     requirements applicable to included energy transactions.--
     Beginning 180 days after the date of the enactment of this 
     Act, any exemption provided by the Commodity Futures Trading 
     Commission that has allowed included energy transactions (as 
     defined in section 1a(13) of the Commodity Exchange Act) to 
     be conducted without regard to the requirements of section 
     4(a) of such Act shall be null and void.
       (f) Requirement to Establish Uniform Speculative Position 
     Limits for Energy Transactions.--
       (1) In general.--Section 4a(a) of such Act (7 U.S.C. 6a(a)) 
     is amended--
       (A) by inserting ``(1)'' after ``(a)'';
       (B) by inserting after the 2nd sentence the following: 
     ``With respect to energy transactions, the Commission shall 
     fix limits on the aggregate number of positions which may be 
     held by any person for each month across all markets subject 
     to the jurisdiction of the Commission.'';
       (C) in the 4th sentence by inserting ``, consistent with 
     the 3rd sentence,'' after ``Commission''; and
       (D) by adding after and below the end the following:
       ``(2)(A) Not later than 60 days after the date of the 
     enactment of this paragraph, the Commission shall convene a 
     Position Limit Energy Advisory Group consisting of 
     representatives from--

[[Page 16629]]

       ``(i) 7 predominantly commercial short hedgers of the 
     actual energy commodity for future delivery;
       ``(ii) 7 predominantly commercial long hedgers of the 
     actual energy commodity for future delivery;
       ``(iii) 4 non-commercial participants in markets for energy 
     commodities for future delivery; and
       ``(iv) each designated contract market or derivatives 
     transaction execution facility upon which a contract in the 
     energy commodity for future delivery is traded, and each 
     electronic trading facility that has a significant price 
     discovery contract in the energy commodity.
       ``(B) Not later than 60 days after the date on which the 
     advisory group is convened under subparagraph (A), and 
     annually thereafter, the advisory group shall submit to the 
     Commission advisory recommendations regarding the position 
     limits to be established in paragraph (1).
       ``(C) The Commission shall have exclusive authority to 
     grant exemptions for bona fide hedging transactions and 
     positions from position limits imposed under this Act on 
     energy transactions.''.
       (2) Conforming amendments.--
       (A) Significant price discovery contracts.--Section 2(h)(7) 
     of such Act (7 U.S.C. 2(h)(7)) is amended--
       (i) in subparagraph (A)--

       (I) by inserting ``of this paragraph and section 4a(a)'' 
     after ``(B) through (D)''; and
       (II) by inserting ``of this paragraph'' before the period; 
     and

       (ii) in subparagraph (C)(ii)(IV)--

       (I) in the heading, by striking ``limitations or''; and
       (II) by striking ``position limitations or''.

       (B) Contracts traded on or through designated contract 
     markets.--Section 5(d)(5) of such Act (7 U.S.C. 7(d)(5)) is 
     amended--
       (i) in the heading by striking ``limitations or''; and
       (ii) by striking ``position limitations or''.
       (C) Contracts traded on or through derivatives transaction 
     execution facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 
     7a(d)(4)) is amended--
       (i) in the heading by striking ``limitations or''; and
       (ii) by striking ``position limits or''.
       (g) Elimination of the Swaps Loophole.--Section 4a(c) of 
     such Act (7 U.S.C. 6a(c)) is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding after and below the end the following:
       ``(2) For the purposes of contracts of sale for future 
     delivery and options on such contracts or commodities, the 
     Commission shall define what constitutes a bona fide hedging 
     transaction or position as a transaction or position that--
       ``(A)(i) represents a substitute for transactions made or 
     to be made or positions taken or to be taken at a later time 
     in a physical marketing channel;
       ``(ii) is economically appropriate to the reduction of 
     risks in the conduct and management of a commercial 
     enterprise; and
       ``(iii) arises from the potential change in the value of--
       ``(I) assets that a person owns, produces, manufactures, 
     processes, or merchandises or anticipates owning, producing, 
     manufacturing, processing, or merchandising;
       ``(II) liabilities that a person owns or anticipates 
     incurring; or
       ``(III) services that a person provides, purchases, or 
     anticipates providing or purchasing; or
       ``(B) reduces risks attendant to a position resulting from 
     a transaction that--
       ``(i) was executed pursuant to subsection (d), (g), (h)(1), 
     or (h)(2) of section 2, or an exemption issued by the 
     Commission by rule, regulation or order; and
       ``(ii) was executed opposite a counterparty for which the 
     transaction would qualify as a bona fide hedging transaction 
     pursuant to paragraph (2)(A) of this subsection.''.
       (h) Detailed Reporting and Disaggregation of Market Data.--
     Section 4 of such Act (7 U.S.C. 6) is amended by adding at 
     the end the following:
       ``(e) Detailed Reporting and Disaggregation of Market 
     Data.--
       ``(1) Index traders and swap dealers reporting.--The 
     Commission shall issue a proposed rule defining and 
     classifying index traders and swap dealers (as those terms 
     are defined by the Commission) for purposes of data reporting 
     requirements and setting routine detailed reporting 
     requirements for any positions of such entities in contracts 
     traded on designated contract markets, over-the-counter 
     markets, derivatives transaction execution facilities, 
     foreign boards of trade subject to section 4(f), and 
     electronic trading facilities with respect to significant 
     price discovery contracts not later than 120 days after the 
     date of the enactment of this subsection, and issue a final 
     rule within 180 days after such date of enactment.
       ``(2) Disaggregation of index funds and other data in 
     markets.--Subject to section 8 and beginning within 60 days 
     of the issuance of the final rule required by paragraph (1), 
     the Commission shall disaggregate and make public weekly--
       ``(A) the number of positions and total notional value of 
     index funds and other passive, long-only and short-only 
     positions (as defined by the Commission) in all markets to 
     the extent such information is available; and
       ``(B) data on speculative positions relative to bona fide 
     physical hedgers in those markets to the extent such 
     information is available.
       ``(3) Disclosure of identity of holders of positions in 
     indexes in excess of position limits.--The Commission shall 
     include in its weekly Commitment of Trader reports the 
     identity of each person who holds a position in an index in 
     excess of a limit imposed under section 4i.''.
       (i) Authority to Set Limits to Prevent Excessive 
     Speculation in Indexes.--
       (1) In general.--Section 4a of such Act (7 U.S.C. 6a) is 
     amended by adding at the end the following:
       ``(f) The provisions of this section shall apply to the 
     amounts of trading which may be done or positions which may 
     be held by any person under contracts of sale of an index for 
     future delivery on or subject to the rules of any contract 
     market, derivatives transaction execution facility, or over-
     the-counter market, or on an electronic trading facility with 
     respect to a significant price discovery contract, in the 
     same manner in which this section applies to contracts of 
     sale of a commodity for future delivery.''.
       (2) Regulations.--The Commodity Futures Trading Commission 
     shall issue regulations under section 4a(f) of the Commodity 
     Exchange Act within 180 days after the date of the enactment 
     of this Act.

     SEC. 352. NO EFFECT ON AUTHORITY OF THE FEDERAL ENERGY 
                   REGULATORY COMMISSION.

       Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
     amended by adding at the end the following:.
       ``(j) This Act shall not be interpreted to affect the 
     jurisdiction of the Federal Energy Regulatory Commission with 
     respect to the authority of the Federal Energy Regulatory 
     Commission under the Federal Power Act (16 U.S.C. 791a et 
     seq.), the Natural Gas Act (15 U.S.C. 717 et seq.), or other 
     law to obtain information, carry out enforcement actions, or 
     otherwise carry out the responsibilities of the Federal 
     Energy Regulatory Commission.''.

     SEC. 353. INSPECTOR GENERAL OF THE COMMODITY FUTURES TRADING 
                   COMMISSION.

       (a) Elevation of Office.--
       (1) Inclusion of cftc in definition of establishment.--
       (A) Section 12(1) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended by striking ``or the Federal 
     Cochairpersons of the Commissions established under section 
     15301 of title 40, United States Code;'' and inserting ``the 
     Federal Cochairpersons of the Commissions established under 
     section 15301 of title 40, United States Code; or the 
     Chairman of the Commodity Futures Trading Commission;''.
       (B) Section 12(2) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended by striking ``or the Commissions 
     established under section 15301 of title 40, United States 
     Code,'' and inserting ``the Commissions established under 
     section 15301 of title 40, United States Code, or the 
     Commodity Futures Trading Commission,''.
       (2) Exclusion of cftc from definition of designated federal 
     entity.--Section 8G(a)(2) of the Inspector General Act of 
     1978 (5 U.S.C. App.) is amended by striking ``the Commodity 
     Futures Trading Commission,''.
       (b) Provisions Relating to Pay and Personnel Authority.--
       (1) Provision relating to the position of inspector general 
     of the cftc.--In the case of the Inspector General of the 
     Commodities Futures Trading Commission, subsections (b) and 
     (c) of section 4 of the Inspector General Reform Act of 2008 
     (Public Law 110-409) shall apply in the same manner as if the 
     Commission was a designated Federal entity under section 8G. 
     The Inspector General of the Commodities Futures Trading 
     Commission shall not be subject to section 3(e) of such Act.
       (2) Provision relating to other personnel.--Notwithstanding 
     paragraphs (7) and (8) of section 6(a) of the Inspector 
     General Act of 1978 (5 U.S.C. App.), the Inspector General of 
     the Commodities Futures Trading Commission may select, 
     appoint, and employ such officers and employees as may be 
     necessary for carrying out the functions, powers, and duties 
     of the Office of Inspector General and to obtain the 
     temporary or intermittent services of experts or consultants 
     or an organization of experts or consultants, subject to the 
     applicable laws and regulations that govern such selections, 
     appointments, and employment, and the obtaining of such 
     services, within the Commodities Futures Trading Commission.
       (c) Effective Date; Transition Rule.--
       (1) Effective date.--The amendments made by this section 
     shall take effect 30 days after the date of the enactment of 
     this Act.
       (2) Transition rule.--An individual serving as Inspector 
     General of the Commodity Futures Trading Commission on the 
     effective date of this section pursuant to an appointment 
     made under section 8G of the Inspector General Act of 1978 (5 
     U.S.C. App.)--
       (A) may continue so serving until the President makes an 
     appointment under section 3(a) of such Act consistent with 
     the amendments made by this section; and

[[Page 16630]]

       (B) shall, while serving under subparagraph (A), remain 
     subject to the provisions of section 8G of such Act which 
     apply with respect to the Commodity Futures Trading 
     Commission.

     SEC. 354. SETTLEMENT AND CLEARING THROUGH REGISTERED 
                   DERIVATIVES CLEARING ORGANIZATIONS.

       (a) In General.--
       (1) Application to excluded derivative transactions.--
       (A) Section 2(d)(1) of the Commodity Exchange Act (7 U.S.C. 
     2(d)(1)) is amended--
       (i) by striking ``and'' at the end of subparagraph (A);
       (ii) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) except as provided in section 4(f), the agreement, 
     contract, or transaction is settled and cleared through a 
     derivatives clearing organization registered with the 
     Commission.''.
       (B) Section 2(d)(2) of such Act (7 U.S.C. 2(d)(2)) is 
     amended--
       (i) by striking ``and'' at the end of subparagraph (B);
       (ii) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(D) except as provided in section 4(f), the agreement, 
     contract, or transaction is settled and cleared through a 
     derivatives clearing organization registered with the 
     Commission.''.
       (2) Application to certain swap transactions.--Section 2(g) 
     of such Act (7 U.S.C. 2(g)) is amended--
       (A) by striking ``and'' at the end of paragraph (2);
       (B) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(4) except as provided in section 4(f), settled and 
     cleared through a derivatives clearing organization 
     registered with the Commission.''.
       (3) Application to certain transactions in exempt 
     commodities.--
       (A) Section 2(h)(1) of such Act ( 7 U.S.C. 2(h)(1)) is 
     amended--
       (i) by striking ``and'' at the end of subparagraph (A);
       (ii) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) except as provided in section 4(f), is settled and 
     cleared through a derivatives clearing organization 
     registered with the Commission.''.
       (B) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is 
     amended--
       (i) by striking ``and'' at the end of subparagraph (A);
       (ii) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) except as provided in section 4(f), settled and 
     cleared through a derivatives clearing organization 
     registered with the Commission.''.
       (4) General exemptive authority.--Section 4(c)(1) of such 
     Act (7 U.S.C. 6(c)(1)) is amended by inserting ``the 
     agreement, contract, or transaction, except as provided in 
     section 4(h), will be settled and cleared through a 
     derivatives clearing organization registered with the 
     Commission and'' before ``the Commission determines''.
       (5) Conforming amendment relating to significant price 
     discovery contracts.--Section 2(h)(7)(D) of such Act (7 
     U.S.C. 2(h)(7)(D)) is amended by striking the designation and 
     heading for the subparagraph and all that follows through 
     ``As part of'' and inserting the following:
       ``(D) Review of implementation.--As part of''.
       (b) Alternatives to Clearing Through Designated Clearing 
     Organizations.--Section 4 of such Act (7 U.S.C. 6), as 
     amended by section 351(h) of this Act, is amended by adding 
     at the end the following:
       ``(f) Alternatives to Clearing Through Designated Clearing 
     Organizations.--
       ``(1) Settlement and clearing through certain other 
     regulated entities.--An agreement, contract, or transaction, 
     or class thereof, relating to an excluded commodity, that 
     would otherwise be required to be settled and cleared by 
     section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 
     2(h)(3)(C) of this Act, or subsection (c)(1) of this section 
     may be settled and cleared through an entity listed in 
     subsections (a) or (b) of section 409 of the Federal Deposit 
     Insurance Corporation Improvement Act of 1991.
       ``(2) Waiver of clearing requirement.--
       ``(A) The Commission, in its discretion, may exempt an 
     agreement, contract, or transaction, or class thereof, that 
     would otherwise be required by section 2(d)(1)(C), 
     2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 2(h)(3)(C) of this Act, 
     or subsection (c)(1) of this section to be settled and 
     cleared through a derivatives clearing organization 
     registered with the Commission from such requirement.
       ``(B) In granting exemptions pursuant to subparagraph (A), 
     the Commission shall consult with the Securities and Exchange 
     Commission and the Board of Governors of the Federal Reserve 
     System regarding exemptions that relate to excluded 
     commodities or entities for which the Securities Exchange 
     Commission or the Board of Governors of the Federal Reserve 
     System serve as the primary regulator.
       ``(C) Before granting an exemption pursuant to subparagraph 
     (A), the Commission shall find that the agreement, contract, 
     or transaction, or class thereof--
       ``(i) is highly customized as to its material terms and 
     conditions;
       ``(ii) is transacted infrequently;
       ``(iii) does not serve a significant price-discovery 
     function in the marketplace; and
       ``(iv) is being entered into by parties who can demonstrate 
     the financial integrity of the agreement, contract, or 
     transaction and their own financial integrity, as such terms 
     and standards are determined by the Commission. The standards 
     may include, with respect to any federally regulated 
     financial entity for which net capital requirements are 
     imposed, a net capital requirement associated with any 
     agreement, contract, or transaction subject to an exemption 
     from the clearing requirement that is higher than the net 
     capital requirement that would be associated with such a 
     transaction were it cleared
       ``(D) Any agreement, contract, or transaction, or class 
     thereof, which is exempted pursuant to subparagraph (A) shall 
     be reported to the Commission in a manner designated by the 
     Commission, or to such other entity the Commission deems 
     appropriate.
       ``(E) The Commission, the Securities and Exchange 
     Commission and the Board of Governors of the Federal Reserve 
     System shall enter into a memorandum of understanding by 
     which the information reported to the Commission pursuant to 
     subparagraph (D) with regard to excluded commodities or 
     entities for which the Securities Exchange Commission or the 
     Board of Governors of the Federal Reserve System serve as the 
     primary regulator may be provided to the other agencies.
       ``(g) Spot and Forward Exclusion.--The settlement and 
     clearing requirements of section 2(d)(1)(C), 2(d)(2)(D), 
     2(g)(4), 2(h)(1)(C), 2(h)(3)(C), or 4(c)(1) shall not apply 
     to an agreement, contract, or transaction of any cash 
     commodity for immediate or deferred shipment or delivery, as 
     defined by the Commission.''.
       (c) Additional Requirements Applicable to Applicants for 
     Registration as a Derivative Clearing Organization.--Section 
     5b(c)(2) of such Act (7 U.S.C. 7a-1(c)(2)) is amended by 
     adding at the end the following:
       ``(O) Disclosure of general information.--The applicant 
     shall disclose publicly and to the Commission information 
     concerning--
       ``(i) the terms and conditions of contracts, agreements, 
     and transactions cleared and settled by the applicant;
       ``(ii) the conventions, mechanisms, and practices 
     applicable to the contracts, agreements, and transactions;
       ``(iii) the margin-setting methodology and the size and 
     composition of the financial resource package of the 
     applicant; and
       ``(iv) other information relevant to participation in the 
     settlement and clearing activities of the applicant.
       ``(P) Daily publication of trading information.--The 
     applicant shall make public daily information on settlement 
     prices, volume, and open interest for contracts settled or 
     cleared pursuant to the requirements of section 2(d)(1)(C), 
     2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C) or 4(c)(1) of 
     this Act by the applicant if the Commission determines that 
     the contracts perform a significant price discovery function 
     for transactions in the cash market for the commodity 
     underlying the contracts.
       ``(Q) Fitness standards.--The applicant shall establish and 
     enforce appropriate fitness standards for directors, members 
     of any disciplinary committee, and members of the applicant, 
     and any other persons with direct access to the settlement or 
     clearing activities of the applicant, including any parties 
     affiliated with any of the persons described in this 
     subparagraph.''.
       (d) Amendments.--
       (1) Section 409 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991 (12 U.S.C. 4422) is 
     amended by adding at the end the following:
       ``(c) Clearing Requirement.--A multilateral clearing 
     organization described in subsections (a) or (b) of this 
     section shall comply with requirements similar to the 
     requirements of sections 5b and 5c of the Commodity Exchange 
     Act.''.
       (2) Section 407 of the Legal Certainty for Bank Products 
     Act of 2000 (7 U.S.C. 27e) is amended by inserting ``and the 
     settlement and clearing requirements of sections 2(d)(1)(C), 
     2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C), and 4(c)(1) of 
     such Act'' after ``the clearing of covered swap agreements''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect 150 days after the date of the enactment of 
     this Act.
       (f) Transition Rule.--Any agreement, contract, or 
     transaction entered into before the date of the enactment of 
     this Act or within 150 days after such date of enactment, in 
     reliance on subsection (d), (g), (h)(1), or (h)(3) of section 
     2 of the Commodity Exchange Act or any other exemption issued 
     by the Commission Futures Trading Commission by rule, 
     regulation, or order shall, within 90 days after such date of 
     enactment, unless settled and cleared through an entity 
     registered with the Commission as a derivatives

[[Page 16631]]

     clearing organization or another clearing entity pursuant to 
     section 4(f) of such Act, be reported to the Commission in a 
     manner designated by the Commission, or to such other entity 
     as the Commission deems appropriate.

     SEC. 355. LIMITATION ON ELIGIBILITY TO PURCHASE A CREDIT 
                   DEFAULT SWAP.

       (a) In General.--Section 4c of the Commodity Exchange Act 
     (7 U.S.C. 6c) is amended by adding at the end the following:
       ``(h) Limitation on Eligibility to Purchase a Credit 
     Default Swap.--It shall be unlawful for any person to enter 
     into a credit default swap unless the person--
       ``(1) owns a credit instrument which is insured by the 
     credit default swap;
       ``(2) would experience financial loss if an event that is 
     the subject of the credit default swap occurs with respect to 
     the credit instrument; and
       ``(3) meets such minimum capital adequacy standards as may 
     be established by the Commission, in consultation with the 
     Board of Governors of the Federal Reserve System, or such 
     more stringent minimum capital adequacy standards as may be 
     established by or under the law of any State in which the 
     swap is originated or entered into, or in which possession of 
     the contract involved takes place.''.
       (b) Elimination of Preemption of State Bucketing Laws 
     Regarding Naked Credit Default Swaps.--Section 12(e)(2)(B) of 
     such Act (7 U.S.C. 16(e)(2)(B)) is amended by inserting 
     ``(other than a credit default swap in which the purchaser of 
     the swap would not experience financial loss if an event that 
     is the subject of the swap occurred)'' before ``that is 
     excluded''.
       (c) Definition of Credit Default Swap.--Section 1a of such 
     Act (7 U.S.C. 1a), as amended by section 351(a) of this Act, 
     is amended by adding at the end the following:
       ``(37) Credit default swap.--The term `credit default swap' 
     means a contract which insures a party to the contract 
     against the risk that an entity may experience a loss of 
     value as a result of an event specified in the contract, such 
     as a default or credit downgrade. A credit default swap that 
     is traded on or cleared by a registered entity shall be 
     excluded from the definition of a security as defined in this 
     Act and in section 2(a)(1) of the Securities Act of 1933 or 
     section 3(a)(10) of the Securities Exchange Act of 1934, 
     except it shall be deemed a security solely for purpose of 
     enforcing prohibitions against insider trading in sections 10 
     and 16 of the Securities Exchange Act of 1934.''.
       (d) Effective Date.--The amendments made by this section 
     shall be effective for credit default swaps (as defined in 
     section 1a(37) of the Commodity Exchange Act) entered into 
     after 60 days after the date of the enactment of this 
     section.

     SEC. 356. TRANSACTION FEES.

       (a) In General.--Section 12 of the Commodity Exchange Act 
     (7 U.S.C. 16) is amended by redesignating subsections (e), 
     (f), and (g) as subsections (f), (g), and (h), respectively, 
     and inserting after subsection (d) the following:
       ``(e) Clearing Fees.--
       ``(1) In general.--The Commission shall, in accordance with 
     this subsection, charge and collect from each registered 
     clearing organization, and each such organization shall pay 
     to the Commission, transaction fees at a rate calculated to 
     recover the costs to the Federal Government of the 
     supervision and regulation of futures markets, except those 
     directly related to enforcement.
       ``(2) Fees assessed per side of cleared contracts.--
       ``(A) In general.--The Commission shall determine the fee 
     rate referred to in paragraph (1), and shall apply the fee 
     rate per side of any transaction cleared.
       ``(B) Authority to delegate.-- The Commission may determine 
     the procedures by which the fee rate is to be applied on the 
     transactions subject to the fee, or delegate the authority to 
     make the determination to any appropriate derivatives 
     clearing organization.
       ``(3) Exemptions.--The Commission may not impose a fee 
     under paragraph (1) on--
       ``(A) a class of contracts or transactions if the 
     Commission finds that it is in the public interest to exempt 
     the class from the fee; or
       ``(B) a contract or transaction cleared by a registered 
     derivatives clearing organization that is--
       ``(i) subject to fees under section 31 of the Securities 
     Exchange Act of 1934; or
       ``(ii) a security as defined in the Securities Act of 1933 
     or the Securities Exchange Act of 1934.
       ``(4) Dates for payment of fees.--The fees imposed under 
     paragraph (1) shall be paid on or before--
       ``(A) March 15 of each year, with respect to transactions 
     occurring on or after the preceding September 1 and on or 
     before the preceding December 31; and
       ``(B) September 15 of each year, with respect to 
     transactions occurring on or after the preceding January 1 
     and on or before the preceding August 31.
       ``(5) Annual adjustment of fee rates.--
       ``(A) In general.--Not later than April 30 of each fiscal 
     year , the Commission shall, by order, adjust each fee rate 
     determined under paragraph (2) for the fiscal year to a 
     uniform adjusted rate that, when applied to the estimated 
     aggregate number of cleared sides of transactions for the 
     fiscal year, is reasonably likely to produce aggregate fee 
     receipts under this subsection for the fiscal year equal to 
     the target offsetting receipt amount for the fiscal year.
       ``(B) Definitions.--In subparagraph (A):
       ``(i) Estimated aggregate number of cleared sides of 
     transactions.--The term `estimated aggregate number of 
     cleared sides of transactions' means, with respect to a 
     fiscal year, the aggregate number of cleared sides of 
     transactions to be cleared by registered derivatives clearing 
     organizations during the fiscal year, as estimated by the 
     Commission, after consultation with the Office of Management 
     and Budget, using the methodology required for making 
     projections pursuant to section 257 of the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       ``(ii) Target offsetting receipt amount.--The term `target 
     offsetting receipt amount' means, with respect to a fiscal 
     year, the total level of Commission budget authority for all 
     non-enforcement activities of the Commission, as contained in 
     the regular appropriations Acts for the fiscal year.
       ``(C) No judicial review.--An adjusted fee rate prescribed 
     under subparagraph (A) shall not be subject to judicial 
     review.
       ``(6) Publication.--Not later than April 30 of each fiscal 
     year, the Commission shall cause to be published in the 
     Federal Register notices of the fee rates applicable under 
     this subsection for the succeeding fiscal year, and any 
     estimate or projection on which the fee rates are based.
       ``(7) Establishment of futures and options transaction fee 
     account; deposit of fees.--There is established in the 
     Treasury of the United States an account which shall be known 
     as the `Futures and Options Transaction Fee Account'. All 
     fees collected under this subsection for a fiscal year shall 
     be deposited in the account. Amounts in the account are 
     authorized to be appropriated to fund the expenditures of the 
     Commission.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to fiscal years beginning 30 or more days after 
     the date of the enactment of this Act.
       (c) Transition Rule.--If this section becomes law after 
     March 31 and before September 1 of a fiscal year, then 
     paragraphs (5)(A) and (6) of section 12(e) of the Commodity 
     Exchange Act shall be applied, in the case of the 1st fiscal 
     year beginning after the date of the enactment of this Act, 
     by substituting ``August 31'' for ``April 30''.

     SEC. 357. NO EFFECT ON ANTITRUST LAW OR AUTHORITY OF THE 
                   FEDERAL TRADE COMMISSION.

       (a) Nothing in this subtitle shall be construed to modify, 
     impair, or supersede the operation of any of the antitrust 
     laws. For purposes of this subsection, the term ``antitrust 
     laws'' has the meaning given it in subsection (a) of the 1st 
     section of the Clayton Act (15 U.S.C. 12(a)), except that 
     such term includes section 5 of the Federal Trade Commission 
     Act (15 U.S.C. 45) to the extent that such term applies to 
     unfair methods of competition.
       (b) Nothing in this subtitle shall be construed to affect 
     or diminish the jurisdiction or authority of the Federal 
     Trade Commission with respect to its authorities under the 
     Federal Trade Commission Act (15 U.S.C. 41 et seq.) or the 
     Energy Independence and Security Act of 2007 (Public Law 110-
     140) to obtain information, to carry out enforcement 
     activities, or otherwise to carry out the responsibilities of 
     the Federal Trade Commission.

     SEC. 358. EFFECT OF DERIVATIVES REGULATORY REFORM 
                   LEGISLATION.

       (a) Statutes.--Upon the passage of legislation that 
     includes derivatives regulatory reform, sections 351, 352, 
     354, 355, 356, and 357 shall be repealed.
       (b) Regulations.--Upon the passage of legislation that 
     includes derivatives regulatory reform, any regulations 
     promulgated under section 351, 352, 354, 355, 356, or 357 
     shall be considered null and void.

     SEC. 359. CEASE-AND-DESIST AUTHORITY.

       (a) Natural Gas Act.--Section 20 of the Natural Gas Act (15 
     U.S.C. 717s) is amended by adding the following at the end:
       ``(e) Cease-and-desist Proceedings; Temporary Orders; 
     Authority of the Commission.--
       ``(1) In general.--If the Commission finds, after notice 
     and opportunity for hearing, that any entity may be 
     violating, may have violated, or may be about to violate any 
     provision of this Act, or any rule, regulation, restriction, 
     condition, or order made or imposed by the Commission under 
     the authority of this Act, the Commission may publish its 
     findings and issue an order requiring such entity, and any 
     other entity that is, was, or would be a cause of the 
     violation, due to an act or omission the entity knew or 
     should have known would contribute to such violation, to 
     cease and desist from committing or causing such violation 
     and any future violation of the same provision, rule, or 
     regulation. Such order may, in addition to requiring an 
     entity to cease and desist from committing or causing a 
     violation, require such entity to comply, to provide an 
     accounting and disgorgement, or to take steps to effect 
     compliance, with such provision, rule, or regulation, upon 
     such terms and conditions and within such time as the 
     Commission may

[[Page 16632]]

     specify in such order. Any such order may, as the Commission 
     deems appropriate, require future compliance or steps to 
     effect future compliance, either permanently or for such 
     period of time as the Commission may specify.
       ``(2) Timing of entry.--An order issued under this 
     subsection shall be entered only after notice and opportunity 
     for a hearing, unless the Commission determines that notice 
     and hearing prior to entry would be impracticable or contrary 
     to the public interest.
       ``(f) Hearing.--The notice instituting proceedings pursuant 
     to subsection (e) shall fix a hearing date not earlier than 
     30 days nor later than 60 days after service of the notice 
     unless an earlier or a later date is set by the Commission 
     with the consent of any respondent so served.
       ``(g) Temporary Order.--Whenever the Commission determines 
     that---
       ``(1) a respondent may take actions to dissipate or convert 
     assets prior to the completion of the proceedings referred to 
     in subsection (e), and such assets would be necessary to 
     comply with or otherwise satisfy a final enforcement order of 
     the Commission pursuant to alleged violations or threatened 
     violations specified in the notice instituting proceedings; 
     or
       ``(2) a respondent is engaged in actual or threatened 
     violations of this Act or a Commission rule, regulation, 
     restriction or order referred to in subsection (e),

     the Commission may issue a temporary order requiring the 
     respondent to take such action to prevent dissipation or 
     conversion of assets, significant harm to energy consumers, 
     or substantial harm to the public interest, frustration of 
     the Commission's ability to conduct the proceedings, or 
     frustration of the Commission's ability to redress said 
     violation at the conclusion of the proceedings, as the 
     Commission deems appropriate pending completion of such 
     proceedings.
       ``(h) Review of Temporary Orders.--
       ``(1) Commission review.--At any time after the respondent 
     has been served with a temporary cease-and-desist order 
     pursuant to subsection (g), the respondent may apply to the 
     Commission to have the order set aside, limited, or 
     suspended. If the respondent has been served with a temporary 
     cease-and-desist order entered without a prior Commission 
     hearing, the respondent may, within 10 days after the date on 
     which the order was served, request a hearing on such 
     application and the Commission shall hold a hearing and 
     render a decision on such application at the earliest 
     possible time.
       ``(2) Judicial review.--Within--
       ``(A) 10 days after the date the respondent was served with 
     a temporary cease-and-desist order entered with a prior 
     Commission hearing; or
       ``(B) 10 days after the Commission renders a decision on an 
     application and hearing under paragraph (1),

     with respect to any temporary cease-and-desist order entered 
     without a prior Commission hearing, the respondent may apply 
     to the United States circuit court having jurisdiction over 
     the circuit in which the respondent resides or has its 
     principal place of business, or to the United States Court of 
     Appeals for the District of Columbia Circuit, for an order 
     setting aside, limiting, or suspending the effectiveness or 
     enforcement of the order, and the court shall have 
     jurisdiction to enter such an order. A respondent served with 
     a temporary cease-and-desist order entered without a prior 
     Commission hearing may not apply to the court except after 
     hearing and decision by the Commission on the respondent's 
     application under paragraph (1) of this subsection.
       ``(3) No automatic stay of temporary order.--The 
     commencement of proceedings under paragraph (2) of this 
     subsection shall not, unless specifically ordered by the 
     court, operate as a stay of the Commission's order.
       ``(4) Exclusive review.--Sections 19(d) and 24 shall not 
     apply to a temporary order entered pursuant to this section.
       ``(i) Implementation.--The Commission is authorized to 
     adopt rules, regulations, and orders as it deems appropriate 
     to implement this section.''.
       (c) Natural Gas Policy Act of 1978.--Section 504 of the 
     Natural Gas Policy Act of 1978 (15 U.S.C. 3414) is amended by 
     adding the following at the end:
       ``(d) Cease-and-desist Proceedings; Temporary Orders; 
     Authority of the Commission.--
       ``(1) In general.--If the Commission finds, after notice 
     and opportunity for hearing, that any entity may be 
     violating, may have violated, or may be about to violate any 
     provision of this Act, or any rule, regulation, restriction, 
     condition, or order made or imposed by the Commission under 
     the authority of this Act, the Commission may publish its 
     findings and issue an order requiring such entity, and any 
     other entity that is, was, or would be a cause of the 
     violation, due to an act or omission the entity knew or 
     should have known would contribute to such violation, to 
     cease and desist from committing or causing such violation 
     and any future violation of the same provision, rule, or 
     regulation. Such order may, in addition to requiring an 
     entity to cease and desist from committing or causing a 
     violation, require such entity to comply, to provide an 
     accounting and disgorgement, or to take steps to effect 
     compliance, with such provision, rule, or regulation, upon 
     such terms and conditions and within such time as the 
     Commission may specify in such order. Any such order may, as 
     the Commission deems appropriate, require future compliance 
     or steps to effect future compliance, either permanently or 
     for such period of time as the Commission may specify.
       ``(2) Timing of entry.--An order issued under this 
     subsection shall be entered only after notice and opportunity 
     for a hearing, unless the Commission determines that notice 
     and hearing prior to entry would be impracticable or contrary 
     to the public interest.
       ``(3) Hearing.--The notice instituting proceedings pursuant 
     to paragraph (1) shall fix a hearing date not earlier than 30 
     days nor later than 60 days after service of the notice 
     unless an earlier or a later date is set by the Commission 
     with the consent of any respondent so served.
       ``(4) Temporary order.--Whenever the Commission determines 
     that--
       ``(A) a respondent may take actions to dissipate or convert 
     assets prior to the completion of the proceedings referred to 
     in paragraph (1) and such assets would be necessary to comply 
     with or otherwise satisfy a final enforcement order of the 
     Commission pursuant to alleged violations or threatened 
     violations specified in the notice instituting proceedings; 
     or
       ``(B) a respondent is engaged in actual or threatened 
     violations of this Act or a Commission rule, regulation, 
     restriction or order referred to in paragraph (1),

     the Commission may issue a temporary order requiring the 
     respondent to take such action to prevent dissipation or 
     conversion of assets, significant harm to energy consumers, 
     or substantial harm to the public interest, frustration of 
     the Commission's ability to conduct the proceedings, or 
     frustration of the Commission's ability to redress said 
     violation at the conclusion of the proceedings, as the 
     Commission deems appropriate pending completion of such 
     proceedings.
       ``(5) Review of temporary orders.--
       ``(A) Commission review.--At any time after the respondent 
     has been served with a temporary cease-and-desist order 
     pursuant to paragraph (4), the respondent may apply to the 
     Commission to have the order set aside, limited, or 
     suspended. If the respondent has been served with a temporary 
     cease-and-desist order entered without a prior Commission 
     hearing, the respondent may, within 10 days after the date on 
     which the order was served, request a hearing on such 
     application and the Commission shall hold a hearing and 
     render a decision on such application at the earliest 
     possible time.
       ``(B) Judicial review.--Within--
       ``(i) 10 days after the date the respondent was served with 
     a temporary cease-and-desist order entered with a prior 
     Commission hearing; or
       ``(ii) 10 days after the Commission renders a decision on 
     an application and hearing under subparagraph (A), with 
     respect to any temporary cease-and-desist order entered 
     without a prior Commission hearing, the respondent may apply 
     to the United States circuit court having jurisdiction over 
     the circuit in which the respondent resides or has its 
     principal place of business, or to the United States Court of 
     Appeals for the District of Columbia Circuit, for an order 
     setting aside, limiting, or suspending the effectiveness or 
     enforcement of the order, and the court shall have 
     jurisdiction to enter such an order. A respondent served with 
     a temporary cease-and-desist order entered without a prior 
     Commission hearing may not apply to the court except after 
     hearing and decision by the Commission on the respondent's 
     application under paragraph (1) of this subsection.
       ``(C) No automatic stay of temporary order.--The 
     commencement of proceedings under subparagraph (B) of this 
     paragraph shall not, unless specifically ordered by the 
     court, operate as a stay of the Commission's order.
       ``(6) Implementation.--The Commission is authorized to 
     adopt rules, regulations, and orders as it deems appropriate 
     to implement this subsection.''.

     SEC. 360. PRESIDENTIAL REVIEW OF REGULATIONS.

       Not later than 24 months after the date of enactment of 
     this Act, the President shall review the offset regulations 
     and derivatives regulations promulgated pursuant to the 
     American Clean Energy and Security Act of 2009. The President 
     shall determine whether such regulations adequately protect 
     the United States financial system from systemic risk.

           TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

      Subtitle A--Ensuring Real Reductions in Industrial Emissions

     SEC. 401. ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS.

       Title VII of the Clean Air Act is amended by inserting 
     after part E the following new part:

[[Page 16633]]



       ``PART F--ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS

     ``SEC. 761. PURPOSES.

       ``(a) Purposes of Part.--The purposes of this part are--
       ``(1) to promote a strong global effort to significantly 
     reduce greenhouse gas emissions, and, through this global 
     effort, stabilize greenhouse gas concentrations in the 
     atmosphere at a level that will prevent dangerous 
     anthropogenic interference with the climate system; and
       ``(2) to prevent an increase in greenhouse gas emissions in 
     countries other than the United States as a result of direct 
     and indirect compliance costs incurred under this title.
       ``(b) Purposes of Subpart 1.--The purposes of subpart 1 are 
     additionally--
       ``(1) to provide a rebate to the owners and operators of 
     entities in domestic eligible industrial sectors for their 
     greenhouse gas emission costs incurred under this title, but 
     not for costs associated with other related or unrelated 
     market dynamics;
       ``(2) to design such rebates in a way that will prevent 
     carbon leakage while also rewarding innovation and facility-
     level investments in energy efficiency performance 
     improvements; and
       ``(3) to eliminate or reduce distribution of emission 
     allowances under subpart 1 when such distribution is no 
     longer necessary to prevent carbon leakage from eligible 
     industrial sectors.
       ``(c) Purposes of Subpart 2.--The purposes of subpart 2 are 
     additionally--
       ``(1) to induce foreign countries, and, in particular, 
     fast-growing developing countries, to take substantial action 
     with respect to their greenhouse gas emissions consistent 
     with the Bali Action Plan developed under the United Nations 
     Framework Convention on Climate Change; and
       ``(2) to ensure that the measures described in subpart 2 
     are designed and implemented in a manner consistent with 
     applicable international agreements to which the United 
     States is a party.

     ``SEC. 762. DEFINITIONS.

       ``In this part:
       ``(1) Carbon leakage.--The term `carbon leakage' means any 
     substantial increase (as determined by the Administrator) in 
     greenhouse gas emissions by industrial entities located in 
     other countries if such increase is caused by an incremental 
     cost of production increase in the United States resulting 
     from the implementation of this title.
       ``(2) Covered good.--The term `covered good' means a good 
     that, as identified by the Administrator by regulation, is 
     either--
       ``(A) entered under a heading or subheading of the 
     Harmonized Tariff Schedule of the United States that 
     corresponds to the NAICS code for an eligible industrial 
     sector, as established in the concordance between NAICS codes 
     and the Harmonized Tariff Schedule of the United States 
     prepared by the United States Census Bureau; or
       ``(B) a manufactured item for consumption.
       ``(3) Eligible industrial sector.--The term `eligible 
     industrial sector' means an industrial sector determined by 
     the Administrator under section 763(b) to be eligible to 
     receive emission allowance rebates under subpart 1.
       ``(4) Industrial sector.--The term `industrial sector' 
     means any sector that is in the manufacturing sector (as 
     defined in NAICS codes 31, 32, and 33) or that beneficiates 
     or otherwise processes (including agglomeration) metal ores, 
     including iron and copper ores, soda ash, or phosphate. The 
     extraction of metal ores, soda ash, or phosphate shall not be 
     considered to be an industrial sector.
       ``(5) Manufactured item for consumption.--
       ``(A) In general.--The term `manufactured item for 
     consumption' means any good--
       ``(i) that includes in substantial amounts one or more 
     goods like the goods produced by an eligible industrial 
     sector;
       ``(ii) with respect to which an international reserve 
     allowance program pursuant to subpart 2 is in effect with 
     regard to the eligible industrial sector and the quantity of 
     international reserve allowances is not zero pursuant to 
     section 768(b);
       ``(iii) with respect to which the trade intensity of the 
     industrial sector that produces the good, as measured 
     consistent with section 763(b)(2)(A)(iii), is at least 15 
     percent; and
       ``(iv) for which the domestic producers of the good have 
     demonstrated, and the Administrator has determined, that the 
     application of the international reserve allowance program 
     pursuant to subpart 2 is technically and administratively 
     feasible and appropriate to achieve the purposes of this 
     part, taking into account the energy and greenhouse gas 
     intensity of the industrial sector that produces the good, as 
     measured consistent with section 763(b)(2)(A)(ii), and the 
     ability of such producers to pass on cost increases and other 
     appropriate factors.
       ``(B) Rule of construction.--A determination of the 
     Administrator under subparagraph (A)(iv) shall not be 
     considered to be a determination of the President under 
     section 767(b).
       ``(6) NAICS.--The term `NAICS' means the North American 
     Industrial Classification System of 2002.
       ``(7) Output.--The term `output' means the total tonnage or 
     other standard unit of production (as determined by the 
     Administrator) produced by an entity in an industrial sector. 
     The output of the cement sector is hydraulic cement, and not 
     clinker.

             ``Subpart 1--Emission Allowance Rebate Program

     ``SEC. 763. ELIGIBLE INDUSTRIAL SECTORS.

       ``(a) List.--
       ``(1) Initial list.--Not later than June 30, 2011, the 
     Administrator shall publish in the Federal Register a list of 
     eligible industrial sectors pursuant to subsection (b). Such 
     list shall include the amount of the emission allowance 
     rebate per unit of production that shall be provided to 
     entities in each eligible industrial sector in the following 
     two calendar years pursuant to section 764.
       ``(2) Subsequent lists.--Not later than February 1, 2013, 
     and every four years thereafter, the Administrator shall 
     publish in the Federal Register an updated version of the 
     list published under paragraph (1).
       ``(b) Eligible Industrial Sectors.--
       ``(1) In general.--Not later than June 30, 2011, the 
     Administrator shall promulgate a rule designating, based on 
     the criteria under paragraph (2), the industrial sectors 
     eligible for emission allowance rebates under this subpart.
       ``(2) Presumptively eligible industrial sectors.--
       ``(A) Eligibility criteria.--
       ``(i) In general.--An owner or operator of an entity shall 
     be eligible to receive emission allowance rebates under this 
     subpart if such entity is in an industrial sector that is 
     included in a six-digit classification of the NAICS that 
     meets the criteria in both clauses (ii) and (iii), or the 
     criteria in clause (iv).
       ``(ii) Energy or greenhouse gas intensity.--As determined 
     by the Administrator, the industrial sector had--

       ``(I) an energy intensity of at least 5 percent, calculated 
     by dividing the cost of purchased electricity and fuel costs 
     of the sector by the value of the shipments of the sector, 
     based on data described in subparagraph (D); or
       ``(II) a greenhouse gas intensity of at least 5 percent, 
     calculated by dividing--

       ``(aa) the number 20 multiplied by the number of tons of 
     carbon dioxide equivalent greenhouse gas emissions (including 
     direct emissions from fuel combustion, process emissions, and 
     indirect emissions from the generation of electricity used to 
     produce the output of the sector) of the sector based on data 
     described in subparagraph (D); by
       ``(bb) the value of the shipments of the sector, based on 
     data described in subparagraph (D).
       ``(iii) Trade intensity.--As determined by the 
     Administrator, the industrial sector had a trade intensity of 
     at least 15 percent, calculated by dividing the value of the 
     total imports and exports of such sector by the value of the 
     shipments plus the value of imports of such sector, based on 
     data described in subparagraph (D).
       ``(iv) Very high energy or greenhouse gas intensity.--As 
     determined by the Administrator, the industrial sector had an 
     energy or greenhouse gas intensity, as calculated under 
     clause (ii)(I) or (II), of at least 20 percent.
       ``(B) Metal and phosphate production classified under more 
     than one naics code.--For purposes of this section, the 
     Administrator shall--
       ``(i) aggregate data for the beneficiation or other 
     processing (including agglomeration) of metal ores, including 
     iron and copper ores, soda ash, or phosphate with subsequent 
     steps in the process of metal and phosphate manufacturing, 
     regardless of the NAICS code under which such activity is 
     classified; and
       ``(ii) aggregate data for the manufacturing of steel with 
     the manufacturing of steel pipe and tube made from purchased 
     steel in a nonintegrated process.
       ``(C) Exclusion.--The petroleum refining sector shall not 
     be an eligible industrial sector.
       ``(D) Data sources.--
       ``(i) Electricity and fuel costs, value of shipments.--The 
     Administrator shall determine electricity and fuel costs and 
     the value of shipments under this subsection from data from 
     the United States Census Annual Survey of Manufacturers. The 
     Administrator shall take the average of data from as many of 
     the years of 2004, 2005, and 2006 for which such data are 
     available. If such data are unavailable, the Administrator 
     shall make a determination based upon 2002 or 2006 data from 
     the most detailed industrial classification level of Energy 
     Information Agency's Manufacturing Energy Consumption Survey 
     (using 2006 data if it is available) and the 2002 or 2007 
     Economic Census of the United States (using 2007 data if it 
     is available). If data from the Manufacturing Energy 
     Consumption Survey or Economic Census are unavailable for any 
     sector at the six-digit classification level in the NAICS, 
     then the Administrator may extrapolate the information 
     necessary to determine the eligibility of a sector under this 
     paragraph from available Manufacturing Energy Consumption 
     Survey or Economic Census data pertaining to a broader 
     industrial category classified in the NAICS. If data relating 
     to the beneficiation

[[Page 16634]]

     or other processing (including agglomeration) of metal ores, 
     including iron and copper ores, soda ash, or phosphate are 
     not available from the specified data sources, the 
     Administrator shall use the best available Federal or State 
     government data and may use, to the extent necessary, 
     representative data submitted by entities that perform such 
     beneficiation or other processing (including agglomeration), 
     in making a determination. Fuel cost data shall not include 
     the cost of fuel used as feedstock by an industrial sector.
       ``(ii) Imports and exports.--The Administrator shall base 
     the value of imports and exports under this subsection on 
     United States International Trade Commission data. The 
     Administrator shall take the average of data from as many of 
     the years of 2004, 2005, and 2006 for which such data are 
     available. If data from the United States International Trade 
     Commission are unavailable for any sector at the six-digit 
     classification level in the NAICS, then the Administrator may 
     extrapolate the information necessary to determine the 
     eligibility of a sector under this paragraph from available 
     United States International Trade Commission data pertaining 
     to a broader industrial category classified in the NAICS.
       ``(iii) Percentages.--The Administrator shall round the 
     energy intensity, greenhouse gas intensity, and trade 
     intensity percentages under subparagraph (A) to the nearest 
     whole number.
       ``(iv) Greenhouse gas emission calculations.--When 
     calculating the tons of carbon dioxide equivalent greenhouse 
     gas emissions for each sector under subparagraph 
     (A)(ii)(II)(aa), the Administrator--

       ``(I) shall use the best available data from as many of the 
     years 2004, 2005, and 2006 for which such data is available; 
     and
       ``(II) may, to the extent necessary with respect to a 
     sector, use economic and engineering models and the best 
     available information on technology performance levels for 
     such sector.

       ``(3) Administrative determination of additional eligible 
     industrial sectors.--
       ``(A) Updated trade intensity data.--The Administrator 
     shall designate as eligible to receive emission allowance 
     rebates under this subpart an industrial sector that--
       ``(i) met the energy or greenhouse gas intensity criteria 
     in paragraph (2)(A)(ii) as of the date of promulgation of the 
     rule under paragraph (1); and
       ``(ii) meets the trade intensity criteria in paragraph 
     (2)(A)(iii), using data from any year after 2006.
       ``(B) Individual showing petition.--
       ``(i) Petition.--In addition to designation under paragraph 
     (2) or subparagraph (A) of this paragraph, the owner or 
     operator of an entity in an industrial sector may petition 
     the Administrator to designate as eligible industrial sectors 
     under this subpart an entity or a group of entities that--

       ``(I) represent a subsector of a six-digit section of the 
     NAICS code; and
       ``(II) meet the eligibility criteria in both clauses (ii) 
     and (iii) of paragraph (2)(A), or the eligibility criteria in 
     clause (iv) of paragraph (2)(A).

       ``(ii) Data.--In making a determination under this 
     subparagraph, the Administrator shall consider data submitted 
     by the petitioner that is specific to the entity, data 
     solicited by the Administrator from other entities in the 
     subsector, if such other entities exist, and data specified 
     in paragraph (2)(D).
       ``(iii) Basis of subsector determination.--The 
     Administrator shall determine an entity or group of entities 
     to be a subsector of a six-digit section of the NAICS code 
     based only upon the products manufactured and not the 
     industrial process by which the products are manufactured, 
     except that the Administrator may determine an entity or 
     group of entities that manufacture a product from primarily 
     virgin material to be a separate subsector from another 
     entity or group of entities that manufacture the same product 
     primarily from recycled material.
       ``(iv) Use of most recent data.--In determining whether to 
     designate a sector or subsector as an eligible industrial 
     sector under this subparagraph, the Administrator shall use 
     the most recent data available from the sources described in 
     paragraph (2)(D), rather than the data from the years 
     specified in paragraph (2)(D), to determine the trade 
     intensity of such sector or subsector, but only for 
     determining such trade intensity.
       ``(v) Final action.--The Administrator shall take final 
     action on such petition no later than 6 months after the 
     petition is received by the Administrator.

     ``SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE REBATES.

       ``(a) Distribution Schedule.--
       ``(1) In general.--For each vintage year, the Administrator 
     shall distribute pursuant to this section emission allowances 
     made available under section 782(e), no later than October 31 
     of the preceding calendar year. The Administrator shall make 
     such annual distributions to the owners and operators of each 
     entity in an eligible industrial sector in the amount of 
     emission allowances calculated under subsection (b), except 
     that--
       ``(A) for vintage years 2012 and 2013, the distribution for 
     a covered entity shall be pursuant to the entity's indirect 
     carbon factor as calculated under subsection (b)(3);
       ``(B) for vintage year 2026 and thereafter, the 
     distribution shall be pursuant to the amount calculated under 
     subsection (b) multiplied by, except as modified by the 
     President pursuant to section 767(d)(1)(C) for a sector--
       ``(i) 90 percent for vintage year 2026;
       ``(ii) 80 percent for vintage year 2027;
       ``(iii) 70 percent for vintage year 2028;
       ``(iv) 60 percent for vintage year 2029;
       ``(v) 50 percent for vintage year 2030;
       ``(vi) 40 percent for vintage year 2031;
       ``(vii) 30 percent for vintage year 2032;
       ``(viii) 20 percent for vintage year 2033;
       ``(ix) 10 percent for vintage year 2034; and
       ``(x) 0 percent for vintage year 2035 and thereafter.
       ``(2) Resumption of reduction.--If the President has 
     modified the percentage stated in paragraph (1)(B) under 
     section 767(d)(1)(C), and the President subsequently makes a 
     determination under section 767(c) for an eligible industrial 
     sector that more than 85 percent of United States imports for 
     that sector are produced or manufactured in countries that 
     have met at least one of the criteria in that section, then 
     the 10-year reduction schedule set forth in paragraph (1)(B) 
     of this subsection shall begin in the next vintage year, with 
     the percentage reduction based on the amount of the 
     distribution of emission allowances under this section in the 
     previous year.
       ``(3) Newly eligible sectors.--In addition to receiving a 
     distribution of emission allowances under this section in the 
     first distribution occurring after an industrial sector is 
     designated as eligible under section 763(b)(3), the owner or 
     operator of an entity in that eligible industrial sector may 
     receive a prorated share of any emission allowances made 
     available for distribution under this section that were not 
     distributed for the year in which the petition for 
     eligibility was granted under section 763(b)(3)(A).
       ``(4) Cessation of qualifying activities.--If, as 
     determined by the Administrator, a facility is no longer in 
     an eligible industrial sector designated under section 763--
       ``(A) the Administrator shall not distribute emission 
     allowances to the owner or operator of such facility under 
     this section; and
       ``(B) the owner or operator of such facility shall return 
     to the Administrator all allowances that have been 
     distributed to it for future vintage years and a pro-rated 
     amount of allowances distributed to the facility under this 
     section for the vintage year in which the facility ceases to 
     be in an eligible industrial sector designated under section 
     763.
       ``(b) Calculation of Direct and Indirect Carbon Factors.--
       ``(1) In general.--
       ``(A) Covered entities.--Except as provided in subsection 
     (a), for covered entities that are in eligible industrial 
     sectors, the amount of emission allowance rebates shall be 
     based on the sum of the covered entity's direct and indirect 
     carbon factors.
       ``(B) Other eligible entities.--For entities that are in 
     eligible industrial sectors but are not covered entities, the 
     amount of emission allowance rebates shall be based on the 
     entity's indirect carbon factor.
       ``(C) New entities.--Not later than 2 years after the date 
     of enactment of this title, the Administrator shall issue 
     regulations governing the distribution of emission allowance 
     rebates for the first and second years of operation of a new 
     entity in an eligible industrial sector. These regulations 
     shall provide for--
       ``(i) the distribution of emission allowance rebates to 
     such entities based on comparable entities in the same 
     sector; and
       ``(ii) an adjustment in the third and fourth years of 
     operation to reconcile the total amount of emission allowance 
     rebates received during the first and second years of 
     operation to the amount the entity would have received during 
     the first and second years of operation had the appropriate 
     data been available.
       ``(2) Direct carbon factor.--The direct carbon factor for a 
     covered entity for a vintage year is the product of--
       ``(A) the average annual output of the covered entity for 
     the two years preceding the year of the distribution; and
       ``(B) the most recent calculation of the average direct 
     greenhouse gas emissions (expressed in tons of carbon dioxide 
     equivalent) per unit of output for all covered entities in 
     the sector, as determined by the Administrator under 
     paragraph (4).
       ``(3) Indirect carbon factor.--
       ``(A) In general.--The indirect carbon factor for an entity 
     for a vintage year is the product obtained by multiplying the 
     average annual output of the entity for the two years 
     preceding the year of the distribution by both the 
     electricity emissions intensity factor determined pursuant to 
     subparagraph (B) and the electricity efficiency factor 
     determined pursuant to subparagraph (C) for the year 
     concerned.
       ``(B) Electricity emissions intensity factor.--
       ``(i) In general.--Each person selling electricity to the 
     owner or operator of an entity in any sector designated as an 
     eligible industrial sector under section 763(b) shall provide 
     the owner or operator of the entity and the

[[Page 16635]]

     Administrator, on an annual basis, the electricity emissions 
     intensity factor for the entity. The electricity emissions 
     intensity factor for the entity, expressed in tons of carbon 
     dioxide equivalents per kilowatt hour, is determined by 
     dividing--

       ``(I) the annual sum of the hourly product of--

       ``(aa) the electricity purchased by the entity from that 
     person in each hour (expressed in kilowatt hours); multiplied 
     by
       ``(bb) the marginal or weighted average tons of carbon 
     dioxide equivalent per kilowatt hour that are reflected in 
     the electricity charges to the entity, as determined by the 
     entity's retail rate arrangements; by

       ``(II) the total kilowatt hours of electricity purchased by 
     the entity from that person during that year.

       ``(ii) Use of other data to determine factor.--Where it is 
     not possible to determine the precise electricity emissions 
     intensity factor for an entity using the methodology in 
     clause (i), the person selling electricity shall use the 
     monthly average data reported by the Energy Information 
     Administration or collected and reported by the Administrator 
     for the utility serving the entity to determine the 
     electricity emissions intensity factor.
       ``(C) Electricity efficiency factor.--The electricity 
     efficiency factor is the average amount of electricity (in 
     kilowatt hours) used per unit of output for all entities in 
     the relevant sector, as determined by the Administrator based 
     on the best available data, including data provided under 
     paragraph (6).
       ``(D) Indirect carbon factor reduction.--If an electricity 
     provider received a free allocation of emission allowances 
     pursuant to section 782(a), the Administrator shall adjust 
     the indirect carbon factor to avoid rebates to the eligible 
     entity for costs that the Administrator determines were not 
     incurred by the eligible entity because the allowances were 
     freely allocated to the eligible entity's electricity 
     provider and used for the benefit of industrial consumers.
       ``(4) Greenhouse gas intensity calculations.--The 
     Administrator shall calculate the average direct greenhouse 
     gas emissions (expressed in tons of carbon dioxide 
     equivalent) per unit of output and the electricity efficiency 
     factor for all covered entities in each eligible industrial 
     sector every four years, using an average of the four most 
     recent years of the best available data. For purposes of the 
     lists required to be published no later than February 1, 
     2013, the Administrator shall use the best available data for 
     the maximum number of years, up to 4 years, for which data 
     are available.
       ``(5) Ensuring efficiency improvements.--When making 
     greenhouse gas calculations, the Administrator shall--
       ``(A) limit the average direct greenhouse gas emissions per 
     unit of output, calculated under paragraph (4), for any 
     eligible industrial sector to an amount that is not greater 
     than it was in any previous calculation under this 
     subsection;
       ``(B) limit the electricity emissions intensity factor, 
     calculated under paragraph (3)(B) and resulting from a change 
     in electricity supply, for any entity to an amount that is 
     not greater than it was during any previous year; and
       ``(C) limit the electricity efficiency factor, calculated 
     under paragraph (3)(C), for any eligible industrial sector to 
     an amount that is not greater than it was in any previous 
     calculation under this subsection.
       ``(6) Data sources.--For the purposes of this subsection--
       ``(A) the Administrator shall use data from the greenhouse 
     gas registry established under section 713, where it is 
     available; and
       ``(B) each owner or operator of an entity in an eligible 
     industrial sector and each department, agency, and 
     instrumentality of the United States shall provide the 
     Administrator with such information as the Administrator 
     finds necessary to determine the direct carbon factor and the 
     indirect carbon factor for each entity subject to this 
     section.
       ``(c) Total Maximum Distribution.--Notwithstanding 
     subsections (a) and (b), the Administrator shall not 
     distribute more allowances for any vintage year pursuant to 
     this section than are allocated for use under this subpart 
     pursuant to section 782(e) for that vintage year. For any 
     vintage year for which the total emission allowance rebates 
     calculated pursuant to this section exceed the number of 
     allowances allocated pursuant to section 782(e), the 
     Administrator shall reduce each entity's distribution on a 
     pro rata basis so that the total distribution under this 
     section equals the number of allowances allocated under 
     section 782(e).
       ``(d) Iron and Steel Sector.--For purposes of this section, 
     the Administrator shall consider as in different industrial 
     sectors--
       ``(1) entities using integrated iron and steelmaking 
     technologies (including coke ovens, blast furnaces, and other 
     iron-making technologies); and
       ``(2) entities using electric arc furnace technologies.
       ``(e) Metal, Soda Ash, or Phosphate Production Classified 
     Under More Than One NAICS Code.--For purposes of this 
     section, the Administrator shall not aggregate data for the 
     beneficiation or other processing (including agglomeration) 
     of metal ores, soda ash, or phosphate with subsequent steps 
     in the process of metal, soda ash, or phosphate 
     manufacturing. The Administrator shall consider the 
     beneficiation or other processing (including agglomeration) 
     of metal ores, soda ash, or phosphate to be in separate 
     industrial sectors from the metal, soda ash, or phosphate 
     manufacturing sectors. Industrial sectors that beneficiate or 
     otherwise process (including agglomeration) metal ores, soda 
     ash, or phosphate shall not receive emission allowance 
     rebates under this section related to the activity of 
     extracting metal ores, soda ash, or phosphate.
       ``(f) Combined Heat and Power.--For purposes of this 
     section, and to achieve the purpose set forth in section 
     761(b)(2), the Administrator may consider entities to be in 
     different industrial sectors or otherwise take into account 
     the differences among entities in the same industrial sector, 
     based upon the extent to which such entities use combined 
     heat and power technologies.

``Subpart 2--Promoting International Reductions in Industrial Emissions

     ``SEC. 765. INTERNATIONAL NEGOTIATIONS.

       ``(a) Finding.--Congress finds that the purposes of this 
     subpart, as set forth in section 761(c), can be most 
     effectively addressed and achieved through agreements 
     negotiated between the United States and foreign countries.
       ``(b) 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 fora, 
     to establish binding agreements, including sectoral 
     agreements, committing all major greenhouse gas-emitting 
     nations to contribute equitably to the reduction of global 
     greenhouse gas emissions.
       ``(c) Notification of Foreign Countries.--
       ``(1) In general.--As soon as practicable after the date of 
     the enactment of this title, the President shall provide a 
     notification on climate change described in paragraph (2) to 
     each foreign country the products of which are not exempted 
     under section 768(a)(1)(E).
       ``(2) Notification described.--A notification described in 
     this paragraph is a notification that consists of--
       ``(A) a statement of the policy of the United States 
     described in subsection (b); and
       ``(B) a declaration--
       ``(i) requesting the foreign country to take appropriate 
     measures to limit the greenhouse gas emissions of the foreign 
     country; and
       ``(ii) indicating that, beginning on January 1, 2020, the 
     international reserve requirements of this subpart may apply 
     to a covered good.

     ``SEC. 766. UNITED STATES NEGOTIATING OBJECTIVES WITH RESPECT 
                   TO MULTILATERAL ENVIRONMENTAL NEGOTIATIONS.

       ``(a) In General.--The negotiating objectives of the United 
     States with respect to multilateral environmental 
     negotiations described in this subpart are--
       ``(1) to reach an internationally binding agreement in 
     which all major greenhouse gas-emitting countries contribute 
     equitably to the reduction of global greenhouse gas 
     emissions;
       ``(2)(A) to include in such international agreement 
     provisions that recognize and address the competitive 
     imbalances that lead to carbon leakage and may be created 
     between parties and non-parties to the agreement in domestic 
     and export markets; and
       ``(B) not to prevent parties to such agreement from 
     addressing the competitive imbalances that lead to carbon 
     leakage and may be created by the agreement among parties to 
     the agreement in domestic and export markets ; and
       ``(3) to include in such international agreement agreed 
     remedies for any party to the agreement that fails to meet 
     its greenhouse gas reduction obligations in the agreement.
       ``(b) Rule of Construction.--Nothing in subsection (a)(2) 
     shall be construed to require the United States to alter the 
     provisions of section 764 .

     ``SEC. 767. PRESIDENTIAL REPORTS AND DETERMINATIONS.

       ``(a) Report.--Not later than January 1, 2017, and every 2 
     years thereafter, the President shall submit a report to 
     Congress on the effectiveness of the distribution of emission 
     allowance rebates under subpart 1 in mitigating carbon 
     leakage in eligible industrial sectors. Such report shall 
     also include--
       ``(1) an assessment, for each eligible industrial sector 
     receiving emission allowance rebates, as to whether, and by 
     how much, the per unit cost of production has increased for 
     that sector as a result of compliance with section 722 (as 
     determined in a manner consistent with section 764(b)), 
     taking into account the provision of the emission allowance 
     rebates to that industrial sector and the benefit received by 
     that industrial sector from the provision of free allowances 
     to electricity providers pursuant to section 782(a);
       ``(2) recommendations on how to better achieve the purposes 
     of this subpart, including an assessment of the feasibility 
     and usefulness of an international reserve allowance program 
     for the eligible industrial sector under section 768;
       ``(3) to the extent the President determines that an 
     international reserve allowance program would not be useful 
     for the eligible industrial sector because its exposure to 
     carbon leakage is the result of competition in

[[Page 16636]]

     export markets with goods produced in countries not 
     implementing similar greenhouse gas emission reduction 
     policies, an identification of, and to the extent appropriate 
     a description of how the President will implement, 
     alternative actions or programs consistent with the purposes 
     of this subpart (and, in such case, the President may 
     determine not to apply an international reserve allowance 
     program to the eligible industrial sector under subsection 
     (b)); and
       ``(4) an assessment of the amount and duration of 
     assistance, including distribution of free allowances, being 
     provided to industrial sectors in other developed countries 
     to mitigate costs of compliance with domestic greenhouse gas 
     reduction programs in such countries.
       ``(b) Presidential Determination.--
       ``(1) In general.--If, by January 1, 2018, a multilateral 
     agreement consistent with the negotiating objectives set 
     forth in section 766 has not entered into force with respect 
     to the United States, the President shall establish an 
     international reserve allowance program for each eligible 
     industrial sector to the extent provided under section 768 
     unless--
       ``(A) the President determines and certifies to the 
     Congress with respect to such eligible industrial sector that 
     such program would not be in the national economic interest 
     or environmental interest of the United States; and
       ``(B) not later than 90 days after the President transmits 
     the certification described in subparagraph (A), a joint 
     resolution is enacted into law that approves the 
     determination of the President described in subparagraph (A).
       ``(2) Contents of joint resolution.--For purposes of this 
     subsection, the term `joint resolution' means only a joint 
     resolution of the two Houses of Congress, the matter after 
     the resolving clause of which is as follows: `That the 
     Congress approves the determination of the President under 
     section 768(b)(1)(A) of the Clean Air Act transmitted to the 
     Congress on ______.', the blank space being filled with the 
     appropriate date.
       ``(3) Congressional procedures.--Subsections (c), (d), (e), 
     and (f) of section 152 of the Trade Act of 1974 (19 U.S.C. 
     2192 (c), (d), (e), and (f)) shall apply to a joint 
     resolution under this subsection to the same extent as such 
     subsections apply to a joint resolution under section 152 of 
     such Act.
       ``(4) Rule of construction.--For purposes of this section 
     and section 768, if the President transmits a multilateral 
     agreement to Congress (regardless of whether it is 
     transmitted as a treaty for ratification by the Senate or 
     another international agreement for implementation by law 
     enacted by the Congress) indicating that the agreement is 
     consistent with the negotiating objectives set forth in 
     section 766, such agreement will be considered to be 
     consistent with such negotiating objectives as of the date on 
     which the Senate ratifies the treaty, or legislation is 
     enacted implementing such other agreement, unless the Senate 
     (in the case of ratification) or the implementing legislation 
     expressly provides that the multilateral agreement shall not 
     be treated as consistent with such negotiating objectives for 
     purposes of this section and section 768.
       ``(c) Determinations With Respect to Eligible Industrial 
     Sectors.--If the President establishes an international 
     reserve allowance program pursuant to subsection (b), then 
     not later than June 30, 2018, and every four years 
     thereafter, the President, in consultation with the 
     Administrator and other appropriate agencies, shall 
     determine, for each eligible industrial sector, whether or 
     not more than 85 percent of United States imports of covered 
     goods with respect to that sector are produced or 
     manufactured in countries that have met at least one of the 
     following criteria:
       ``(1) The country is a party to an international agreement 
     to which the United States is a party that includes a 
     nationally enforceable and economy-wide greenhouse gas 
     emissions reduction commitment for that country that is at 
     least as stringent as that of the United States.
       ``(2) The country is a party to a multilateral or bilateral 
     emission reduction agreement for that sector to the which the 
     United States is a party.
       ``(3) The country has an annual energy or greenhouse gas 
     intensity, as described in section 763(b)(2)(A)(ii), for the 
     sector that is equal to or less than the energy or greenhouse 
     gas intensity for such industrial sector in the United States 
     in the most recent calendar year for which data are 
     available.
       ``(d) Effect of Presidential Determination.--
       ``(1) Required actions.--If the President makes a 
     determination under subsection (c) with respect to an 
     eligible industrial sector that 85 percent or less of United 
     States imports of covered goods with respect to the sector 
     are produced or manufactured in countries that have met one 
     or more of the criteria in subsection (c), then the President 
     shall, not later than June 30, 2018, and every four years 
     thereafter--
       ``(A) assess the extent to which the emission allowance 
     rebates provided pursuant to subpart 1 and the benefit 
     received by that industrial sector from the provision of free 
     allowances to electricity providers pursuant to section 
     782(a) have mitigated or addressed, or could mitigate or 
     address, carbon leakage in that sector;
       ``(B) assess the extent to which an international reserve 
     allowance program has mitigated or addressed, or could 
     mitigate or address, carbon leakage in that sector; and
       ``(C) with respect to that sector--
       ``(i) modify the percentage by which direct and indirect 
     carbon factors will be multiplied under section 764(a)(1)(B); 
     and
       ``(ii) apply or continue to apply an international reserve 
     allowance program under section 768 with respect to imports 
     of covered goods with respect to that sector.
       ``(2) Prohibited actions.--If the President makes a 
     determination under subsection (c) with respect to an 
     eligible industrial sector that more than 85 percent of 
     United States imports of covered goods with respect to the 
     sector are produced or manufactured in countries that have 
     met one or more of the criteria in subsection (c), then the 
     President may not apply or continue to apply an international 
     reserve allowance program under section 768 with respect to 
     imports of covered goods with respect to that sector.
       ``(e) Report to Congress.--Not later than June 30, 2018, 
     and every four years thereafter, the President shall transmit 
     to the Congress a report providing notice of any 
     determination made under subsection (c), explaining the 
     reasons for such determination, and identifying the actions 
     taken by the President under subsection (d).

     ``SEC. 768. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Administrator, with the concurrence 
     of Commissioner responsible for U.S. Customs and Border 
     Protection, shall issue regulations--
       ``(A) establishing an international reserve allowance 
     program for the sale, exchange, purchase, transfer, and 
     banking of international reserve allowances for covered goods 
     with respect to the eligible industrial sector;
       ``(B) ensuring that the price for purchasing the 
     international reserve allowances from the United States on a 
     particular day is equivalent to the auction clearing price 
     for emission allowances under section 722 for the most recent 
     emission allowance auction;
       ``(C) establishing a general methodology for calculating 
     the quantity of international reserve allowances that a 
     United States importer of any covered good must submit;
       ``(D) requiring the submission of appropriate amounts of 
     such allowances for covered goods with respect to the 
     eligible industrial sector that enter the customs territory 
     of the United States;
       ``(E) exempting from the requirements of subparagraph (D) 
     such products that are the origin of--
       ``(i) any country determined to meet any of the standards 
     provided in section 767(c);
       ``(ii) any foreign country that the United Nations has 
     identified as among the least developed of developing 
     countries; or
       ``(iii) any foreign country that the President has 
     determined to be responsible for less than 0.5 percent of 
     total global greenhouse gas emissions and less than 5 percent 
     of United States imports of covered goods with respect to the 
     eligible industrial sector;
       ``(F) specifying the procedures that U.S. Customs and 
     Border Protection will apply for the declaration and entry of 
     covered goods with respect to the eligible industrial sector 
     into the customs territory of the United States; and
       ``(G) establishing procedures that prevent circumvention of 
     the international reserve allowance requirement for covered 
     goods with respect to the eligible industrial sector that are 
     manufactured or processed in more than one foreign country.
       ``(2) Purpose of program.--The Administrator shall 
     establish the program under paragraph (1) consistent with 
     international agreements to which the United States is a 
     party, in a manner that minimizes the likelihood of carbon 
     leakage as a result of differences between--
       ``(A) the direct and indirect costs of complying with 
     section 722; and
       ``(B) the direct and indirect costs, if any, of complying 
     in other countries with greenhouse gas regulatory programs, 
     requirements, export tariffs, or other measures adopted or 
     imposed to reduce greenhouse gas emissions.
       ``(b) Emission Allowance Rebates.--In establishing a 
     general methodology for purposes of subsection (a)(1)(C), the 
     Administrator shall include an adjustment to the quantity of 
     international reserve allowances based on the value of 
     emission allowance rebates distributed under subpart 1 and 
     the benefit received by the eligible industrial sector 
     concerned from the provision of free allowances to 
     electricity providers pursuant to section 782(a) and may, if 
     appropriate, determine that the quantity of international 
     reserve allowances should be reduced as low as to zero.
       ``(c) Effective Date.--The international reserve allowance 
     program may not apply to imports of covered goods entering 
     the customs territory of the United States before January 1, 
     2020.
       ``(d) Covered Entities.--International reserve allowances 
     may not be used by covered entities to comply with section 
     722.

[[Page 16637]]



     ``SEC. 769. IRON AND STEEL SECTOR.

       ``For purposes of this subpart, the Administrator shall 
     consider to be in the same eligible industrial sector--
       ``(1) entities using integrated iron and steelmaking 
     technologies (including coke ovens, blast furnaces, and other 
     iron-making technologies); and
       ``(2) entities using electric arc furnace technologies.''.

              Subtitle B--Green Jobs and Worker Transition

                           PART 1--GREEN JOBS

     SEC. 421. CLEAN ENERGY CURRICULUM DEVELOPMENT GRANTS.

       (a) Authorization.--The Secretary of Education is 
     authorized to award grants, on a competitive basis, to 
     eligible partnerships to develop programs of study 
     (containing the information described in section 122(c)(1)(A) 
     of the Carl D. Perkins Career and Technical Education Act of 
     2006 (20 U.S.C. 2342)), that are focused on emerging careers 
     and jobs in the fields of clean energy, renewable energy, 
     energy efficiency, climate change mitigation, and climate 
     change adaptation. The Secretary of Education shall consult 
     with the Secretary of Labor and the Secretary of Energy prior 
     to the issuance of a solicitation for grant applications.
       (b) Eligible Partnerships.--For purposes of this section, 
     an eligible partnership shall include--
       (1) at least 1 local educational agency eligible for 
     funding under section 131 of the Carl D. Perkins Career and 
     Technical Education Act of 2006 (20 U.S.C. 2351) or an area 
     career and technical education school or education service 
     agency described in such section;
       (2) at least 1 postsecondary institution eligible for 
     funding under section 132 of such Act (20 U.S.C. 2352); and
       (3) representatives of the community including business, 
     labor organizations, and industry that have experience in 
     fields as described in subsection (a).
       (c) Application.--An eligible partnership seeking a grant 
     under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require. Applications shall include--
       (1) a description of the eligible partners and partnership, 
     the roles and responsibilities of each partner, and a 
     demonstration of each partner's capacity to support the 
     program;
       (2) a description of the career area or areas within the 
     fields as described in subsection (a) to be developed, the 
     reason for the choice, and evidence of the labor market need 
     to prepare students in that area;
       (3) a description of the new or existing program of study 
     and both secondary and postsecondary components;
       (4) a description of the students to be served by the new 
     program of study;
       (5) a description of how the program of study funded by the 
     grant will be replicable and disseminated to schools outside 
     of the partnership, including urban and rural areas;
       (6) a description of applied learning that will be 
     incorporated into the program of study and how it will 
     incorporate or reinforce academic learning;
       (7) a description of how the program of study will be 
     delivered;
       (8) a description of how the program will provide 
     accessibility to students, especially economically 
     disadvantaged, low performing, and urban and rural students;
       (9) a description of how the program will address placement 
     of students in nontraditional fields as described in section 
     3(20) of the Carl D. Perkins Career and Technical Education 
     Act of 2006 (20 U.S.C. 2302(20)); and
       (10) a description of how the applicant proposes to consult 
     or has consulted with a labor organization, labor management 
     partnership, apprenticeship program, or joint apprenticeship 
     and training program that provides education and training in 
     the field of study for which the applicant proposes to 
     develop a curriculum.
       (d) Priority.--The Secretary shall give priority to 
     applications that--
       (1) use online learning or other innovative means to 
     deliver the program of study to students, educators, and 
     instructors outside of the partnership; and
       (2) focus on low performing students and special 
     populations as defined in section 3(29) of the Carl D. 
     Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
     2302(29)).
       (e) Peer Review.--The Secretary shall convene a peer review 
     process to review applications for grants under this section 
     and to make recommendations regarding the selection of 
     grantees. Members of the peer review committee shall 
     include--
       (1) educators who have experience implementing curricula 
     with comparable purposes; and
       (2) business and industry experts in fields as described in 
     subsection (a).
       (f) Uses of Funds.--Grants awarded under this section shall 
     be used for the development, implementation, and 
     dissemination of programs of study (as described in section 
     122(c)(1)(A) of the Carl D. Perkins Career and Technical 
     Education Act (20 U.S.C. 2342(c)(1)(A))) in career areas 
     related to clean energy, renewable energy, energy efficiency, 
     climate change mitigation, and climate change adaptation.

     SEC. 422. INCREASED FUNDING FOR ENERGY WORKER TRAINING 
                   PROGRAM.

       (a) Authorization.--Section 171(e)(8) of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2916(e)(8)) is amended by 
     striking ``$125,000,000'' and inserting ``$150,000,000''.
       (b) Establishment of Fund.--There is hereby established in 
     the Treasury a separate account that shall be known as the 
     Energy Efficiency and Renewable Energy Worker Training Fund.
       (c) Availability of Amounts.--Subject to subtitle F of 
     title IV, all amounts deposited into the Energy Efficiency 
     and Renewable Energy Worker Training Fund shall be available 
     to the Secretary to carry out section 171(e)(8) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2916(e)(8)) 
     subject to further appropriation.

     SEC. 423. DEVELOPMENT OF INFORMATION AND RESOURCES 
                   CLEARINGHOUSE FOR VOCATIONAL EDUCATION AND JOB 
                   TRAINING IN RENEWABLE ENERGY SECTORS.

       (a) Development of Clearinghouse.--Not later than 18 months 
     after the date of enactment of this Act, the Secretary of 
     Labor, in collaboration with the Secretary of Energy and the 
     Secretary of Education, shall develop an internet based 
     information and resources clearinghouse to aid career and 
     technical education and job training programs for the 
     renewable energy sectors. In establishing the clearinghouse, 
     the Secretary shall--
       (1) collect and provide information that addresses the 
     consequences of rapid changes in technology and regional 
     disparities for renewable energy training programs and 
     provides best practices for training and education in light 
     of such changes and disparities;
       (2) place an emphasis on facilitating collaboration between 
     the renewable energy industry and job training programs and 
     on identifying industry and technological trends and best 
     practices, to better help job training programs maintain 
     quality and relevance; and
       (3) place an emphasis on assisting programs that cater to 
     high-demand middle-skill, trades, manufacturing, contracting, 
     and consulting careers.
       (b) Solicitation and Consultation.--In developing the 
     clearinghouse pursuant to subsection (a), the Secretary shall 
     solicit information and expertise from businesses and 
     organizations in the renewable energy sector and from 
     institutions of higher education, career and technical 
     schools, and community colleges that provide training in the 
     renewable energy sectors. The Secretary shall solicit a 
     comprehensive peer review of the clearinghouse by such 
     entities not less than once every 2 years. Nothing in this 
     subsection should be interpreted to require the divulgence of 
     proprietary or competitive information.
       (c) Contents of Clearinghouse.--
       (1) Separate section for each renewable energy sector.--The 
     clearinghouse shall contain separate sections developed for 
     each of the following renewable energy sectors:
       (A) Solar energy systems.
       (B) Wind energy systems.
       (C) Energy transmission systems.
       (D) Geothermal systems of energy and heating.
       (E) Energy efficiency technical training.
       (2) Additional requirements.--In addition to the 
     information required in subsection (a), each section of the 
     clearinghouse shall include information on basic 
     environmental science and processes needed to understand 
     renewable energy systems, Federal government and industry 
     resources, and points of contact to aid institutions in the 
     development of placement programs for apprenticeships and 
     post graduation opportunities, and information and tips about 
     a green workplace, energy efficiency, and relevant 
     environmental topics and information on available industry 
     recognized certifications in each area.
       (d) Dissemination.--The clearinghouse shall be made 
     available via the Internet to the general public. Notice of 
     the completed clearinghouse and any major revisions thereto 
     shall also be provided--
       (1) to each Member of Congress; and
       (2) on the websites of the Departments of Education, 
     Energy, and Labor.
       (e) Revision.--The Secretary of Labor shall revise and 
     update the clearinghouse on a regular basis to ensure its 
     relevance.

     SEC. 424. MONITORING PROGRAM EFFECTIVENESS.

       The Secretary of Labor shall monitor the potential growth 
     of affected and displaced workers to ensure that the 
     necessary funding continues to support the number of workers 
     affected.

     SEC. 424A. GREEN CONSTRUCTION CAREERS DEMONSTRATION PROJECT.

       (a) Establishment and Authority.--The Secretary of Labor, 
     in consultation with the Secretary of Energy, shall, not 
     later than 180 days after the enactment of this Act, 
     establish a Green Construction Careers demonstration project 
     by rules, regulations, and guidance in accordance with the 
     provisions of this section. The purpose of the demonstration 
     project shall be to promote middle class careers and quality 
     employment practices in the green construction sector among 
     targeted workers and to advance efficiency and performance on 
     construction projects related to this Act. In order to 
     advance these purposes, the Secretary shall

[[Page 16638]]

     identify projects, including residential retrofitting 
     projects, funded directly by or assisted in whole or in part 
     by or through the Federal Government pursuant to this Act or 
     by any other entity established in accordance with this Act, 
     to which all of the following shall apply.
       (b) Requirements.--The Secretaries may establish such terms 
     and conditions for the demonstration projects as the 
     Secretaries determine are necessary to meet the purposes of 
     subsection (a), including establishing minimum proportions of 
     hours to be worked by targeted workers on such projects. The 
     Secretaries may require the contractors and subcontractors 
     performing construction services on the project to comply 
     with the terms and conditions as a condition of receiving 
     funding or assistance from the Federal Government under this 
     Act.
       (c) Evaluation.--The Secretaries shall evaluate the 
     demonstration projects against the purposes of this section 
     at the end of 3 years from initiation of the demonstration 
     project. If the Secretaries determine that the demonstration 
     projects have been successful, the Secretaries may identify 
     further projects to which of the provisions of this section 
     shall apply.
       (d) GAO Report.--The Comptroller General shall prepare and 
     submit a report to the Committee on Health, Education, Labor 
     and Pensions and the Committee on Energy and Natural 
     Resources of the Senate and the Committee on Education and 
     Labor and the Committee on Energy and Commerce of the House 
     of Representatives not later than 5 years after the date of 
     enactment of this Act, which shall advise the committees of 
     the results of the demonstration projects and make 
     appropriate recommendations.
       (e) Definition and Designation of Targeted Workers.--As 
     used in this section, the term ``targeted worker'' means an 
     individual who resides in the same labor market area (as 
     defined in section 101(18) of the Workforce Investment Act of 
     1998 (29 U.S.C. 2801(18))) as the project and who--
       (1) is a member of a targeted group, within the meaning of 
     section 51 of the Internal Revenue Code of 1986, other than 
     an individual described in subsection (d)(1)(C) of such 
     section;
       (2)(A) resides in a census tract in which not less than 20 
     percent of the households have incomes below the Federal 
     poverty guidelines; or
       (B) is a member of a family that received a total family 
     income that, during the 2-year period prior to employment on 
     the project or admission to the pre-apprenticeship program, 
     did not exceed 200 percent of the Federal poverty guidelines 
     (exclusive of unemployment compensation, child support 
     payments, payments described in section 101(25)(A) of the 
     Workforce Investment Act (29 U.S.C. 2801(25)(A)), and old-age 
     and survivors insurance benefits received under section 202 
     of the Social Security Act (42 U.S.C. 402); or
       (3) is a displaced homemaker, as such term is defined in 
     section 3(10) of the Carl D. Perkins Career and Technical 
     Education Act of 2006 (20 U.S.C. 2302(10)).
       (f) Qualified Pre-Apprenticeship Program.--A qualified pre-
     apprenticeship program is a pre-apprenticeship program that 
     has demonstrated an ability to recruit, train, and prepare 
     for admission to apprenticeship programs individuals who are 
     targeted workers.
       (g) Qualified Apprenticeship and Other Training Programs.--
       (1) Participation by each contractor required.--Each 
     contractor and subcontractor that seeks to provide 
     construction services on projects identified by the 
     Secretaries pursuant to subsection (a) shall submit adequate 
     assurances with its bid or proposal that it participates in a 
     qualified apprenticeship or other training program, with a 
     written arrangement with a qualified pre-apprenticeship 
     program, for each craft or trade classification of worker 
     that it intends to employ to perform work on the project.
       (2) Definition of qualified apprenticeship or other 
     training program.--
       (A) In general.--For purposes of this section, the term 
     ``qualified apprenticeship or other training program'' means 
     an apprenticeship or other training program that qualifies as 
     an employee welfare benefit plan, as defined in section 3(1) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1002(1)).
       (B) Certification of other programs in certain 
     localities.--In the event that the Secretary of Labor 
     certifies that a qualified apprenticeship or other training 
     program (as defined in subparagraph (A)) for a craft or trade 
     classification of workers that a prospective contractor or 
     subcontractor intends to employ, is not operated in the 
     locality where the project will be performed, an 
     apprenticeship or other training program that is not an 
     employee welfare benefit plan (as defined in such section) 
     may be certified by the Secretary as a qualified 
     apprenticeship or other training program provided it is 
     registered with the Office of Apprenticeship of the 
     Department of Labor, or a State apprenticeship agency 
     recognized by the Office of Apprenticeship for Federal 
     purposes.
       (h) Facilitating Compliance.--The Secretary may require 
     Federal contracting agencies, recipients of Federal 
     assistance, and any other entity established in accordance 
     with this Act to require contractors to enter into an 
     agreement in a manner comparable with the standards set forth 
     in sections 3 and 4 of Executive Order 13502 in order to 
     achieve the purposes of this section, including any 
     requirements established by subsection (b).
       (i) Limitation.--The requirements of this section shall not 
     apply to any project funded under this Act in American Samoa, 
     Guam, the Commonwealth of the Northern Mariana Islands, the 
     Commonwealth of Puerto Rico, or the United States Virgin 
     Islands, unless participation is requested by the governor of 
     such territories within 1 year of the promulgation of rules 
     under this Act.

          PART 2--CLIMATE CHANGE WORKER ADJUSTMENT ASSISTANCE

     SEC. 425. PETITIONS, ELIGIBILITY REQUIREMENTS, AND 
                   DETERMINATIONS.

       (a) Petitions.--
       (1) Filing.--A petition for certification of eligibility to 
     apply for adjustment assistance for a group of workers under 
     this part may be filed by any of the following:
       (A) The group of workers.
       (B) The certified or recognized union or other duly 
     authorized representative of such workers.
       (C) Employers of such workers, one-stop operators or one-
     stop partners (as defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801)), including State 
     employment security agencies, or the State dislocated worker 
     unit established under title I of such Act, on behalf of such 
     workers.

     The petition shall be filed simultaneously with the Secretary 
     of Labor and with the Governor of the State in which such 
     workers' employment site is located.
       (2) Action by governors.--Upon receipt of a petition filed 
     under paragraph (1), the Governor shall--
       (A) ensure that rapid response activities and appropriate 
     core and intensive services (as described in section 134 of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2864)) 
     authorized under other Federal laws are made available to the 
     workers covered by the petition to the extent authorized 
     under such laws; and
       (B) assist the Secretary in the review of the petition by 
     verifying such information and providing such other 
     assistance as the Secretary may request.
       (3) Action by the secretary.--Upon receipt of the petition, 
     the Secretary shall promptly publish notice in the Federal 
     Register and on the website of the Department of Labor that 
     the Secretary has received the petition and initiated an 
     investigation.
       (4) Hearings.--If the petitioner, or any other person found 
     by the Secretary to have a substantial interest in the 
     proceedings, submits not later than 10 days after the date of 
     the Secretary's publication under paragraph (3) a request for 
     a hearing, the Secretary shall provide for a public hearing 
     and afford such interested persons an opportunity to be 
     present, to produce evidence, and to be heard.
       (b) Eligibility.--
       (1) In general.--A group of workers shall be certified by 
     the Secretary as eligible to apply for adjustment assistance 
     under this part pursuant to a petition filed under subsection 
     (a) if--
       (A) the group of workers is employed in--
       (i) energy producing and transforming industries;
       (ii) industries dependent upon energy industries;
       (iii) energy-intensive manufacturing industries;
       (iv) consumer goods manufacturing; or
       (v) other industries whose employment the Secretary 
     determines has been adversely affected by any requirement of 
     title VII of the Clean Air Act;
       (B) the Secretary determines that a significant number or 
     proportion of the workers in such workers' employment site 
     have become totally or partially separated, or are threatened 
     to become totally or partially separated from employment; and
       (C) the sales, production, or delivery of goods or services 
     have decreased as a result of any requirement of title VII of 
     the Clean Air Act, including--
       (i) the shift from reliance upon fossil fuels to other 
     sources of energy, including renewable energy, that results 
     in the closing of a facility or layoff of employees at a 
     facility that mines, produces, processes, or utilizes fossil 
     fuels to generate electricity;
       (ii) a substantial increase in the cost of energy required 
     for a manufacturing facility to produce items whose prices 
     are competitive in the marketplace, to the extent the cost is 
     not offset by allowance allocation to the facility pursuant 
     to title VII of the Clean Air Act; or
       (iii) other documented occurrences that the Secretary 
     determines are indicators of an adverse impact on an industry 
     described in subparagraph (A) as a result of any requirement 
     of title VII of the Clean Air Act.
       (2) Workers in public agencies.--A group of workers in a 
     public agency shall be certified by the Secretary as eligible 
     to apply for climate change adjustment assistance pursuant to 
     a petition filed if the Secretary determines that a 
     significant number or proportion of the workers in the public 
     agency

[[Page 16639]]

     have become totally or partially separated from employment, 
     or are threatened to become totally or partially separated as 
     a result of any requirement of title VII of the Clean Air 
     Act.
       (3) Adversely affected service workers.--A group of workers 
     shall be certified as eligible to apply for climate change 
     adjustment assistance pursuant to a petition filed if the 
     Secretary determines that--
       (A) a significant number or proportion of the service 
     workers at an employment site where a group of workers has 
     been certified by the Secretary as eligible to apply for 
     adjustment assistance under this part pursuant to paragraph 
     (1) have become totally or partially separated from 
     employment, or are threatened to become totally or partially 
     separated; and
       (B) a loss of business in the firm providing service 
     workers to an employment site is directly attributable to one 
     or more of the documented occurrences listed in paragraph 
     (1)(C).
       (c) Authority to Investigate and Collect Information.--
       (1) In general.--The Secretary shall, in determining 
     whether to certify a group of workers under subsection (d), 
     obtain information the Secretary determines to be necessary 
     to make the certification, through questionnaires and in such 
     other manner as the Secretary determines appropriate from--
       (A) the workers' employer;
       (B) officials of certified or recognized unions or other 
     duly authorized representatives of the group of workers; or
       (C) one-stop operators or one-stop partners (as defined in 
     section 101 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801)); or
       (2) Verification of information.--The Secretary shall 
     require an employer, union, or one-stop operator or partner 
     to certify all information obtained under paragraph (1) from 
     the employer, union, or one-stop operator or partner (as the 
     case may be) on which the Secretary relies in making a 
     determination under subsection (d), unless the Secretary has 
     a reasonable basis for determining that such information is 
     accurate and complete without being certified.
       (3) Protection of confidential information.--The Secretary 
     may not release information obtained under paragraph (1) that 
     the Secretary considers to be confidential business 
     information unless the employer submitting the confidential 
     business information had notice, at the time of submission, 
     that the information would be released by the Secretary, or 
     the employer subsequently consents to the release of the 
     information. Nothing in this paragraph shall be construed to 
     prohibit the Secretary from providing such confidential 
     business information to a court in camera or to another party 
     under a protective order issued by a court.
       (d) Determination by the Secretary of Labor.--
       (1) In general.--As soon as possible after the date on 
     which a petition is filed under subsection (a), but in any 
     event not later than 40 days after that date, the Secretary, 
     in consultation with the Secretary of Energy and the 
     Administrator, as necessary, shall determine whether the 
     petitioning group meets the requirements of subsection (b) 
     and shall issue a certification of eligibility to apply for 
     assistance under this part covering workers in any group 
     which meets such requirements. Each certification shall 
     specify the date on which the total or partial separation 
     began or threatened to begin. Upon reaching a determination 
     on a petition, the Secretary shall promptly publish a summary 
     of the determination in the Federal Register and on the 
     website of the Department of Labor, together with the 
     Secretary's reasons for making such determination.
       (2) One year limitation.--A certification under this 
     section shall not apply to any worker whose last total or 
     partial separation from the employment site before the 
     worker's application under section 426(a) occurred more than 
     1 year before the date of the petition on which such 
     certification was granted.
       (3) Revocation of certification.--Whenever the Secretary 
     determines, with respect to any certification of eligibility 
     of the workers of an employment site, that total or partial 
     separations from such site are no longer a result of the 
     factors specified in subsection (b)(1), the Secretary shall 
     terminate such certification and promptly have notice of such 
     termination published in the Federal Register and on the 
     website of the Department of Labor, together with the 
     Secretary's reasons for making such determination. Such 
     termination shall apply only with respect to total or partial 
     separations occurring after the termination date specified by 
     the Secretary.
       (e) Industry Notification of Assistance.--Upon receiving a 
     notification of a determination under subsection (d) with 
     respect to a domestic industry the Secretary of Labor shall 
     notify the representatives of the domestic industry affected 
     by the determination, employers publicly identified by name 
     during the course of the proceeding relating to the 
     determination, and any certified or recognized union or, to 
     the extent practicable, other duly authorized representative 
     of workers employed by such representatives of the domestic 
     industry, of--
       (1) the adjustment allowances, training, and other benefits 
     available under this part;
       (2) the manner in which to file a petition and apply for 
     such benefits; and
       (3) the availability of assistance in filing such 
     petitions;
       (4) notify the Governor of each State in which one or more 
     employers in such industry are located of the Secretary's 
     determination and the identity of the employers; and
       (5) upon request, provide any assistance that is necessary 
     to file a petition under subsection (a).
       (f) Benefit Information to Workers, Providers of 
     Training.--
       (1) In general.--The Secretary shall provide full 
     information to workers about the adjustment allowances, 
     training, and other benefits available under this part and 
     about the petition and application procedures, and the 
     appropriate filing dates, for such allowances, training and 
     services. The Secretary shall provide whatever assistance is 
     necessary to enable groups of workers to prepare petitions or 
     applications for program benefits. The Secretary shall make 
     every effort to insure that cooperating State agencies fully 
     comply with the agreements entered into under section 426(a) 
     and shall periodically review such compliance. The Secretary 
     shall inform the State Board for Vocational Education or 
     equivalent agency, the one-stop operators or one-stop 
     partners (as defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801), and other public or 
     private agencies, institutions, and employers, as 
     appropriate, of each certification issued under subsection 
     (d) and of projections, if available, of the needs for 
     training under as a result of such certification.
       (2) Notice by mail.--The Secretary shall provide written 
     notice through the mail of the benefits available under this 
     part to each worker whom the Secretary has reason to believe 
     is covered by a certification made under subsection (d)--
       (A) at the time such certification is made, if the worker 
     was partially or totally separated from the adversely 
     affected employment before such certification, or--
       (B) at the time of the total or partial separation of the 
     worker from the adversely affected employment, if 
     subparagraph (A) does not apply.
       (3) Newspapers; website.--The Secretary shall publish 
     notice of the benefits available under this part to workers 
     covered by each certification made under subsection (d) in 
     newspapers of general circulation in the areas in which such 
     workers reside and shall make such information available on 
     the website of the Department of Labor.

     SEC. 426. PROGRAM BENEFITS.

       (a) Climate Change Adjustment Allowance.--
       (1) Eligibility.--Payment of a climate change adjustment 
     allowance shall be made to an adversely affected worker 
     covered by a certification under section 425(b) who files an 
     application for such allowance for any week of unemployment 
     which begins on or after the date of such certification, if 
     the following conditions are met:
       (A) Such worker's total or partial separation before the 
     worker's application under this part occurred--
       (i) on or after the date, as specified in the certification 
     under which the worker is covered, on which total or partial 
     separation began or threatened to begin in the adversely 
     affected employment;
       (ii) before the expiration of the 2-year period beginning 
     on the date on which the determination under section 425(d) 
     was made; and
       (iii) before the termination date, if any, determined 
     pursuant to section 425(d)(3).
       (B) Such worker had, in the 52-week period ending with the 
     week in which such total or partial separation occurred, at 
     least 26 weeks of full-time employment or 1,040 hours of part 
     time employment in adversely affected employment, or, if data 
     with respect to weeks of employment are not available, 
     equivalent amounts of employment computed under regulations 
     prescribed by the Secretary. For the purposes of this 
     paragraph, any week in which such worker--
       (i) is on employer-authorized leave for purposes of 
     vacation, sickness, injury, maternity, or inactive duty or 
     active duty military service for training;
       (ii) does not work because of a disability that is 
     compensable under a workmen's compensation law or plan of a 
     State or the United States;
       (iii) had his employment interrupted in order to serve as a 
     full-time representative of a labor organization in such 
     firm; or
       (iv) is on call-up for purposes of active duty in a reserve 
     status in the Armed Forces of the United States, provided 
     such active duty is ``Federal service'' as defined in section 
     8521(a)(1) of title 5, United States Code,

     shall be treated as a week of employment.
       (C) Such worker is enrolled in a training program approved 
     by the Secretary under subsection (b)(2).
       (2) Ineligibility for certain other benefits.--An adversely 
     affected worker receiving a payment under this section shall 
     be ineligible to receive any other form of unemployment 
     insurance for the period in which such worker is receiving a 
     climate change adjustment allowance under this section.
       (3) Revocation.--If--

[[Page 16640]]

       (A) the Secretary determines that--
       (i) the adversely affected worker--

       (I) has failed to begin participation in the training 
     program the enrollment in which meets the requirement of 
     paragraph (1)(C); or
       (II) has ceased to participate in such training program 
     before completing such training program; and

       (ii) there is no justifiable cause for such failure or 
     cessation; or
       (B) the certification made with respect to such worker 
     under section 425(d) is revoked under paragraph (3) of such 
     section,

     no adjustment allowance may be paid to the adversely affected 
     worker under this part for the week in which such failure, 
     cessation, or revocation occurred, or any succeeding week, 
     until the adversely affected worker begins or resumes 
     participation in a training program approved by the Secretary 
     under section (b)(2).
       (4) Waivers of training requirements.--The Secretary may 
     issue a written statement to an adversely affected worker 
     waiving the requirement to be enrolled in training described 
     in subsection (b)(2) if the Secretary determines that it is 
     not feasible or appropriate for the worker, because of 1 or 
     more of the following reasons:
       (A) Recall.--The worker has been notified that the worker 
     will be recalled by the employer from which the separation 
     occurred.
       (B) Marketable skills.--
       (i) In general.--The worker possesses marketable skills for 
     suitable employment (as determined pursuant to an assessment 
     of the worker, which may include the profiling system under 
     section 303(j) of the Social Security Act (42 U.S.C. 503(j)), 
     carried out in accordance with guidelines issued by the 
     Secretary) and there is a reasonable expectation of 
     employment at equivalent wages in the foreseeable future.
       (ii) Marketable skills defined.--For purposes of clause 
     (i), the term ``marketable skills'' may include the 
     possession of a postgraduate degree from an institution of 
     higher education (as defined in section 102 of the Higher 
     Education Act of 1965 (20 U.S.C. 1002)) or an equivalent 
     institution, or the possession of an equivalent postgraduate 
     certification in a specialized field.
       (C) Retirement.--The worker is within 2 years of meeting 
     all requirements for entitlement to either--
       (i) old-age insurance benefits under title II of the Social 
     Security Act (42 U.S.C. 401 et seq.) (except for application 
     therefor); or
       (ii) a private pension sponsored by an employer or labor 
     organization.
       (D) Health.--The worker is unable to participate in 
     training due to the health of the worker, except that a 
     waiver under this subparagraph shall not be construed to 
     exempt a worker from requirements relating to the 
     availability for work, active search for work, or refusal to 
     accept work under Federal or State unemployment compensation 
     laws.
       (E) Enrollment unavailable.--The first available enrollment 
     date for the training of the worker is within 60 days after 
     the date of the determination made under this paragraph, or, 
     if later, there are extenuating circumstances for the delay 
     in enrollment, as determined pursuant to guidelines issued by 
     the Secretary.
       (F) Training not available.--Training described in 
     subsection (b)(2) is not reasonably available to the worker 
     from either governmental agencies or private sources (which 
     may include area career and technical education schools, as 
     defined in section 3 of the Carl D. Perkins Career and 
     Technical Education Act of 2006 (20 U.S.C. 2302), and 
     employers), no training that is suitable for the worker is 
     available at a reasonable cost, or no training funds are 
     available.
       (5) Weekly amounts.--The climate change adjustment 
     allowance payable to an adversely affected worker for a week 
     of unemployment shall be an amount equal to 70 percent of the 
     average weekly wage of such worker, but in no case shall such 
     amount exceed the average weekly wage for all workers in the 
     State where the adversely affected worker resides.
       (6) Maximum duration of benefits.--An eligible worker may 
     receive a climate change adjustment allowance under this 
     subsection for a period of not longer than 156 weeks.
       (b) Employment Services and Training.--
       (1) Information and employment services.--The Secretary 
     shall make available, directly or through agreements with the 
     States under section 427(a) to adversely affected workers 
     covered by a certification under section 425(a) the following 
     information and employment 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 training available in local and regional 
     areas, information on individual counseling to determine 
     which training is suitable training, and information on how 
     to apply for such training.
       (D) Information on training programs and other services 
     provided by a State pursuant to title I of the Workforce 
     Investment Act of 1998 and available in local and regional 
     areas, information on individual counseling to determine 
     which training is suitable training, and information on how 
     to apply for such training.
       (E) Information on how to apply for financial aid, 
     including referring workers to educational opportunity 
     centers described in section 402F of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a-16), where applicable, and notifying 
     workers that the workers may request financial aid 
     administrators at institutions of higher education (as 
     defined in section 102 of such Act (20 U.S.C. 1002)) to use 
     the administrators' discretion under section 479A of such Act 
     (20 U.S.C. 1087tt) to use current year income data, rather 
     than preceding year income data, for determining the amount 
     of need of the workers for Federal financial assistance under 
     title IV of such Act (20 U.S.C. 1070 et seq.).
       (F) Short-term prevocational services, including 
     development of learning skills, communications skills, 
     interviewing skills, punctuality, personal maintenance 
     skills, and professional conduct to prepare individuals for 
     employment or training.
       (G) Individual career counseling, including job search and 
     placement counseling, during the period in which the 
     individual is receiving a climate change adjustment allowance 
     or training under this part, and after receiving such 
     training for purposes of job placement.
       (H) 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 such labor market areas;
       (ii) information on jobs skills necessary to obtain jobs 
     identified in job vacancy listings described in subparagraph 
     (A);
       (iii) information relating to local occupations that are in 
     demand and earnings potential of such occupations; and
       (iv) skills requirements for local occupations described in 
     subparagraph (C).
       (I) Information relating to the availability of 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.
       (2) Training.--
       (A) Approval of and payment for training.--If the Secretary 
     determines, with respect to an adversely affected worker 
     that--
       (i) there is no suitable employment (which may include 
     technical and professional employment) available for an 
     adversely affected worker;
       (ii) the worker would benefit from appropriate training;
       (iii) there is a reasonable expectation of employment 
     following completion of such training;
       (iv) training approved by the Secretary is reasonably 
     available to the worker from either governmental agencies or 
     private sources (including area career and technical 
     education schools, as defined in section 3 of the Carl D. 
     Perkins Career and Technical Education Act of 2006, and 
     employers);
       (v) the worker is qualified to undertake and complete such 
     training; and
       (vi) such training is suitable for the worker and available 
     at a reasonable cost,

     the Secretary shall approve such training for the worker. 
     Upon such approval, the worker shall be entitled to have 
     payment of the costs of such training (subject to the 
     limitations imposed by this section) paid on the worker's 
     behalf by the Secretary directly or through a voucher system.
       (B) Distribution.--The Secretary shall establish procedures 
     for the distribution of the funds to States to carry out the 
     training programs approved under this paragraph, and shall 
     make an initial distribution of the funds made available as 
     soon as practicable after the beginning of each fiscal year.
       (C) Additional rules regarding approval of and payment for 
     training.--
       (i) For purposes of applying subparagraph (A)(iii), a 
     reasonable expectation of employment does not require that 
     employment opportunities for a worker be available, or 
     offered, immediately upon the completion of training approved 
     under such subparagraph.
       (ii) If the costs of training an adversely affected worker 
     are paid by the Secretary under subparagraph (A), no other 
     payment for such costs may be made under any other provision 
     of Federal law. No payment may be made under subparagraph (A) 
     of the costs of training an adversely affected worker or an 
     adversely affected incumbent worker if such costs--

       (I) have already been paid under any other provision of 
     Federal law; or
       (II) are reimbursable under any other provision of Federal 
     law and a portion of such costs have already been paid under 
     such other provision of Federal law.

     The provisions of this clause shall not apply to, or take 
     into account, any funds provided under any other provision of 
     Federal law which are used for any purpose other than the 
     direct payment of the costs incurred in training a particular 
     adversely affected worker, even if such use has the effect of 
     indirectly paying or reducing any portion of

[[Page 16641]]

     the costs involved in training the adversely affected worker.
       (D) Training programs.--The training programs that may be 
     approved under subparagraph (A) include--
       (i) employer-based training, including--

       (I) on-the-job training if approved by the Secretary under 
     subsection (c); and
       (II) joint labor-management apprenticeship programs;

       (ii) any training program provided by a State pursuant to 
     title I of the Workforce Investment Act of 1998;
       (iii) any training program approved by a private industry 
     council established under section 102 of such Act;
       (iv) any programs in career and technical education 
     described in section 3(5) of the Carl D. Perkins Career and 
     Technical Education Act of 2006;
       (v) any program of remedial education;
       (vi) any program of prerequisite education or coursework 
     required to enroll in training that may be approved under 
     this paragraph;
       (vii) any training program for which all, or any portion, 
     of the costs of training the worker are paid--

       (I) under any Federal or State program other than this 
     part; or
       (II) from any source other than this part;

       (viii) any training program or coursework at an accredited 
     institution of higher education (described in section 102 of 
     the Higher Education Act of 1965 (20 U.S.C. 1002)), including 
     a training program or coursework for the purpose of--

       (I) obtaining a degree or certification; or
       (II) completing a degree or certification that the worker 
     had previously begun at an accredited institution of higher 
     education; and

       (ix) any other training program approved by the Secretary.
       (3) 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.
       (c) On-the-Job Training Requirements.--
       (1) In general.--The Secretary may approve on-the-job 
     training for any adversely affected worker if--
       (A) the Secretary determines that on-the-job training--
       (i) can reasonably be expected to lead to suitable 
     employment with the employer offering the on-the-job 
     training;
       (ii) is compatible with the skills of the worker;
       (iii) includes a curriculum through which the worker will 
     gain the knowledge or skills to become proficient in the job 
     for which the worker is being trained; and
       (iv) can be measured by benchmarks that indicate that the 
     worker is gaining such knowledge or skills; and
       (B) the State determines that the on-the-job training 
     program meets the requirements of clauses (iii) and (iv) of 
     subparagraph (A).
       (2) Monthly payments.--The Secretary shall pay the costs of 
     on-the-job training approved under paragraph (1) in monthly 
     installments.
       (3) Contracts for on-the-job training.--
       (A) In general.--The Secretary shall ensure, in entering 
     into a contract with an employer to provide on-the-job 
     training to a worker under this subsection, that the skill 
     requirements of the job for which the worker is being 
     trained, the academic and occupational skill level of the 
     worker, and the work experience of the worker are taken into 
     consideration.
       (B) Term of contract.--Training under any such contract 
     shall be limited to the period of time required for the 
     worker receiving on-the-job training to become proficient in 
     the job for which the worker is being trained, but may not 
     exceed 156 weeks in any case.
       (4) Exclusion of certain employers.--The Secretary shall 
     not enter into a contract for on-the-job training with an 
     employer that exhibits a pattern of failing to provide 
     workers receiving on-the-job training from the employer 
     with--
       (A) continued, long-term employment as regular employees; 
     and
       (B) wages, benefits, and working conditions that are 
     equivalent to the wages, benefits, and working conditions 
     provided to regular employees who have worked a similar 
     period of time and are doing the same type of work as workers 
     receiving on-the-job training from the employer.
       (d) Administrative and Employment Services Funding.--
       (1) Administrative funding.--In addition to any funds made 
     available to a State to carry out this section for a fiscal 
     year, the State shall receive for the fiscal year a payment 
     in an amount that is equal to 15 percent of the amount of 
     such funds and shall--
       (A) use not more than \2/3\ of such payment for the 
     administration of the climate change adjustment assistance 
     for workers program under this part, including for--
       (i) processing waivers of training requirements under 
     subsection (a)(4);
       (ii) collecting, validating, and reporting data required 
     under this part; and
       (iii) administering the Climate Change Adjustment 
     Assistance Allowance payments; and
       (B) use not less than \1/3\ of such payment for information 
     and employment services under subsection (b)(1).
       (2) Employment services funding.--
       (A) In general.--In addition to any funds made available to 
     a State to carry out subsection (b)(2) and the payment under 
     paragraph (1) for a fiscal year, the Secretary shall provide 
     to the State for the fiscal year a reasonable payment for the 
     purpose of providing employment and services under subsection 
     (b)(1).
       (B) Voluntary return of funds.--A State that receives a 
     payment under subparagraph (A) may decline or otherwise 
     return such payment to the Secretary.
       (e) Job Search Allowances.--The Secretary of Labor may 
     provide adversely affected workers a one-time job search 
     allowance in accordance with regulations prescribed by the 
     Secretary. Any job search allowance provided shall be 
     available only under the following circumstances and 
     conditions:
       (1) The worker is no longer eligible for the climate change 
     adjustment allowance under subsection (a) and has completed 
     the training program required by subsection (a)(1)(E).
       (2) The Secretary determines that the worker cannot 
     reasonably be expected to secure suitable employment in the 
     commuting area in which the worker resides.
       (3) An allowance granted shall provide reimbursement to the 
     worker of all necessary job search expenses as prescribed by 
     the Secretary in regulations. Such reimbursement under this 
     subsection may not exceed $1,500 for any worker.
       (f) Relocation Allowance Authorized.--
       (1) In general.--Any adversely affected worker covered by a 
     certification issued under section 425 may file an 
     application for a relocation allowance with the Secretary, 
     and the Secretary may grant the relocation allowance, subject 
     to the terms and conditions of this subsection.
       (2) Conditions for granting allowance.--A relocation 
     allowance may be granted if all of the following terms and 
     conditions are met:
       (A) Assist an adversely affected worker.--The relocation 
     allowance will assist an adversely affected worker in 
     relocating within the United States.
       (B) Local employment not available.--The Secretary 
     determines that the worker cannot reasonably be expected to 
     secure suitable employment in the commuting area in which the 
     worker resides.
       (C) Total separation.--The worker is totally separated from 
     employment at the time relocation commences.
       (D) Suitable employment obtained.--The worker--
       (i) has obtained suitable employment affording a reasonable 
     expectation of long-term duration in the area in which the 
     worker wishes to relocate; or
       (ii) has obtained a bona fide offer of such employment.
       (E) Application.--The worker filed an application with the 
     Secretary at such time and in such manner as the Secretary 
     shall specify by regulation.
       (3) Amount of allowance.--The relocation allowance granted 
     to a worker under paragraph (1) includes--
       (A) all reasonable and necessary expenses (including, 
     subsistence and transportation expenses at levels not 
     exceeding amounts prescribed by the Secretary in regulations) 
     incurred in transporting the worker, the worker's family, and 
     household effects; and
       (B) a lump sum equivalent to 3 times the worker's average 
     weekly wage, up to a maximum payment of $1,500.
       (4) Limitations.--A relocation allowance may not be granted 
     to a worker unless--
       (A) the relocation occurs within 182 days after the filing 
     of the application for relocation assistance; or
       (B) the relocation occurs within 182 days after the 
     conclusion of training, if the worker entered a training 
     program approved by the Secretary under subsection (b)(2).
       (g) Health Insurance Continuation.--Not later than 1 year 
     after the date of enactment of this part, the Secretary of 
     Labor shall prescribe regulations to provide, for the period 
     in which an adversely affected worker is participating in a 
     training program described in subsection (b)(2), 80 percent 
     of the monthly premium of any health insurance coverage that 
     an adversely affected worker was receiving from such worker's 
     employer prior to the separation from employment described in 
     section 425(b), to be paid to any health care insurance plan 
     designated by the adversely affected worker receiving an 
     allowance under this section.

     SEC. 427. GENERAL PROVISIONS.

       (a) Agreements With States.--
       (1) In general.--The Secretary is authorized on behalf of 
     the United States to enter into an agreement with any State, 
     or with any State agency (referred to in this section as 
     ``cooperating States'' and ``cooperating States agencies'' 
     respectively). Under such an agreement, the cooperating State 
     agency--
       (A) as agent of the United States, shall receive 
     applications for, and shall provide, payments on the basis 
     provided in this part;
       (B) in accordance with paragraph (6), shall make available 
     to adversely affected workers

[[Page 16642]]

     covered by a certification under section 425(d) the 
     employment services described in section 426(b)(1);
       (C) shall make any certifications required under section 
     425(d);
       (D) shall otherwise cooperate with the Secretary and with 
     other State and Federal agencies in providing payments and 
     services under this part.

     Each agreement under this section shall provide the terms and 
     conditions upon which the agreement may be amended, 
     suspended, or terminated.
       (2) Form and manner of data.--Each agreement under this 
     section shall--
       (A) provide the Secretary with the authority to collect any 
     data the Secretary determines necessary to meet the 
     requirements of this part; and
       (B) specify the form and manner in which any such data 
     requested by the Secretary shall be reported.
       (3) Relationship to unemployment insurance.--Each agreement 
     under this section shall provide that an adversely affected 
     worker receiving a climate change adjustment allowance under 
     this part shall not be eligible for unemployment insurance 
     otherwise payable to such worker under the laws of the State.
       (4) Review.--A determination by a cooperating State agency 
     with respect to entitlement to program benefits under an 
     agreement is subject to review in the same manner and to the 
     same extent as determinations under the applicable State law 
     and only in that manner and to that extent.
       (5) Coordination.--Any agreement entered into under this 
     section shall provide for the coordination of the 
     administration of the provisions for employment services, 
     training, and supplemental assistance under section 426 and 
     under title I of the Workforce Investment Act of 1998 upon 
     such terms and conditions as are established by the Secretary 
     in consultation with the States and set forth in such 
     agreement. Any agency of the State jointly administering such 
     provisions under such agreement shall be considered to be a 
     cooperating State agency for purposes of this part.
       (6) Responsibilities of cooperating agencies.--Each 
     cooperating State agency shall, in carrying out paragraph 
     (1)(B)--
       (A) advise each worker who applies for unemployment 
     insurance of the benefits under this part and the procedures 
     and deadlines for applying for such benefits;
       (B) facilitate the early filing of petitions under section 
     425(a) for any workers that the agency considers are likely 
     to be eligible for benefits under this part;
       (C) advise each adversely affected worker to apply for 
     training under section 426(b) before, or at the same time, 
     the worker applies for climate change adjustment allowances 
     under section 426(a);
       (D) perform outreach to, intake of, and orientation for 
     adversely affected workers and adversely affected incumbent 
     workers covered by a certification under section 426(a) with 
     respect to assistance and benefits available under this part;
       (E) make employment services described in section 426(b)(1) 
     available to adversely affected workers and adversely 
     affected incumbent workers covered by a certification under 
     section 425(d) and, if funds provided to carry out this part 
     are insufficient to make such services available, make 
     arrangements to make such services available through other 
     Federal programs; and
       (F) provide the benefits and reemployment services under 
     this part in a manner that is necessary for the proper and 
     efficient administration of this part, including the use of 
     state agency personnel employed in accordance with a merit 
     system of personnel administration standards, including--
       (i) making determinations of eligibility for, and payment 
     of, climate change readjustment allowances and health care 
     benefit replacement amounts;
       (ii) developing recommendations regarding payments as a 
     bridge to retirement and lump sum payments to pension plans 
     in accordance with this subsection; and
       (iii) the provision of reemployment services to eligible 
     workers, including referral to training services.
       (7) In order to promote the coordination of workforce 
     investment activities in each State with activities carried 
     out under this part, any agreement entered into under this 
     section shall provide that the State shall submit to the 
     Secretary, in such form as the Secretary may require, the 
     description and information described in paragraphs (8) and 
     (14) of section 112(b) of the Workforce Investment Act of 
     1998 (29 U.S.C. 2822(b)) and a description of the State's 
     rapid response activities under section 221(a)(2)(A).
       (8) Control measures.--
       (A) In general.--The Secretary shall require each 
     cooperating State and cooperating State agency to implement 
     effective control measures and to effectively oversee the 
     operation and administration of the climate change adjustment 
     assistance program under this part, including by means of 
     monitoring the operation of control measures to improve the 
     accuracy and timeliness of the data being collected and 
     reported.
       (B) Definition.--For purposes of subparagraph (A), the term 
     ``control measures'' means measures that--
       (i) are internal to a system used by a State to collect 
     data; and
       (ii) are designed to ensure the accuracy and verifiability 
     of such data.
       (9) Data reporting.--
       (A) In general.--Any agreement entered into under this 
     section shall require the cooperating State or cooperating 
     State agency to report to the Secretary on a quarterly basis 
     comprehensive performance accountability data, to consist 
     of--
       (i) the core indicators of performance described in 
     subparagraph (B)(i);
       (ii) the additional indicators of performance described in 
     subparagraph (B)(ii), if any; and
       (iii) a description of efforts made to improve outcomes for 
     workers under the climate change adjustment assistance 
     program.
       (B) Core indicators described.--
       (i) In general.--The core indicators of performance 
     described in this subparagraph are--

       (I) the percentage of workers receiving benefits under this 
     part who are employed during the second calendar quarter 
     following the calendar quarter in which the workers cease 
     receiving such benefits;
       (II) the percentage of such workers who are employed in 
     each of the third and fourth calendar quarters following the 
     calendar quarter in which the workers cease receiving such 
     benefits; and
       (III) the earnings of such workers in each of the third and 
     fourth calendar quarters following the calendar quarter in 
     which the workers cease receiving such benefits.

       (ii) Additional indicators.--The Secretary and a 
     cooperating State or cooperating State agency may agree upon 
     additional indicators of performance for the climate change 
     adjustment assistance program under this part, as 
     appropriate.
       (C) Standards with respect to reliability of data.--In 
     preparing the quarterly report required by subparagraph (A), 
     each cooperating State or cooperating State agency shall 
     establish procedures that are consistent with guidelines to 
     be issued by the Secretary to ensure that the data reported 
     are valid and reliable.
       (10) Verification of eligibility for program benefits.--
       (A) In general.--An agreement under this section shall 
     provide that the State shall periodically redetermine that a 
     worker receiving benefits under this part who is not a 
     citizen or national of the United States remains in a 
     satisfactory immigration status. Once satisfactory 
     immigration status has been initially verified through the 
     immigration status verification system described in section 
     1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)) for 
     purposes of establishing a worker's eligibility for 
     unemployment compensation, the State shall reverify the 
     worker's immigration status if the documentation provided 
     during initial verification will expire during the period in 
     which that worker is potentially eligible to receive benefits 
     under this part. The State shall conduct such redetermination 
     in a timely manner, utilizing the immigration status 
     verification system described in section 1137(d) of the 
     Social Security Act (42 U.S.C. 1320b-7(d)).
       (B) Procedures.--The Secretary shall establish procedures 
     to ensure the uniform application by the States of the 
     requirements of this paragraph.
       (b) Administration Absent State Agreement.--
       (1) In any State where there is no agreement in force 
     between a State or its agency under subsection (a), the 
     Secretary shall promulgate regulations for the performance of 
     all necessary functions under section 426, including 
     provision for a fair hearing for any worker whose application 
     for payments is denied.
       (2) A final determination under paragraph (1) with respect 
     to entitlement to program benefits under section 426 is 
     subject to review by the courts in the same manner and to the 
     same extent as is provided by section 205(g) of the Social 
     Security Act (42 U.S.C. 405(g)).
       (c) Prohibition on Contracting With Private Entities.--
     Neither the Secretary nor a State may contract with any 
     private for-profit or nonprofit entity for the administration 
     of the climate change adjustment assistance program under 
     this part.
       (d) Payment to the States.--
       (1) In general.--The Secretary shall from time to time 
     certify to the Secretary of the Treasury for payment to each 
     cooperating State the sums necessary to enable such State as 
     agent of the United States to make payments provided for by 
     this part.
       (2) Restriction.--All money paid a State under this 
     subsection shall be used solely for the purposes for which it 
     is paid; and money so paid which is not used for such 
     purposes shall be returned, at the time specified in the 
     agreement under this section, to the Secretary of the 
     Treasury.
       (3) Bonds.--Any agreement under this section may require 
     any officer or employee of the State certifying payments or 
     disbursing funds under the agreement or otherwise 
     participating in the performance of the agreement, to give a 
     surety bond to the United States in such amount as the 
     Secretary may deem necessary, and may provide for the payment 
     of the cost of such bond from funds for carrying out the 
     purposes of this part.

[[Page 16643]]

       (e) Labor Standards.--
       (1) Prohibition on displacement.--An individual in an 
     apprenticeship program or on-the-job training program under 
     this part shall not displace (including a partial 
     displacement, such as a reduction in the hours of non-
     overtime work, wages, or employment benefits) any employed 
     employee.
       (2) Prohibition on impairment of contracts.--An 
     apprenticeship program or on-the-job raining program under 
     this Act shall not impair an existing contract for services 
     or collective bargaining agreement, and no such activity that 
     would be inconsistent with the terms of a collective 
     bargaining agreement shall be undertaken without the written 
     concurrence of the labor organization and employer concerned.
       (3) Additional standards.--The Secretary, or a State acting 
     under an agreement described in subsection (a) may pay the 
     costs of on-the-job training, notwithstanding any other 
     provision of this section, only if--
       (A) in the case of training which would be inconsistent 
     with the terms of a collective bargaining agreement, the 
     written concurrence of the labor organization concerned has 
     been obtained;
       (B) the job for which such adversely affected worker is 
     being trained is not being created in a promotional line that 
     will infringe in any way upon the promotional opportunities 
     of currently employed individuals;
       (C) such training is not for the same occupation from which 
     the worker was separated and with respect to which such 
     worker's group was certified pursuant to section 425(d);
       (D) the employer is provided reimbursement of not more than 
     50 percent of the wage rate of the participant, for the cost 
     of providing the training and additional supervision related 
     to the training; and
       (E) the employer has not received payment under with 
     respect to any other on-the-job training provided by such 
     employer which failed to meet the requirements of 
     subparagraphs (A) through (D).
       (f) Definitions.--As used in this part the following 
     definitions apply:
       (1) The term ``adversely affected employment'' means 
     employment at an employment site, if workers at such site are 
     eligible to apply for adjustment assistance under this part.
       (2) The term ``adversely affected worker'' means an 
     individual who has been totally or partially separated from 
     employment and is eligible to apply for adjustment assistance 
     under this part.
       (3) The term ``average weekly wage'' means \1/13\ of the 
     total wages paid to an individual in the quarter in which the 
     individual's total wages were highest among the first 4 of 
     the last 5 completed calendar quarters immediately before the 
     quarter in which occurs the week with respect to which the 
     computation is made. Such week shall be the week in which 
     total separation occurred, or, in cases where partial 
     separation is claimed, an appropriate week, as defined in 
     regulations prescribed by the Secretary.
       (4) The term ``average weekly hours'' means the average 
     hours worked by the individual (excluding overtime) in the 
     employment from which he has been or claims to have been 
     separated in the 52 weeks (excluding weeks during which the 
     individual was sick or on vacation) preceding the week 
     specified in the last sentence of paragraph (4).
       (5) The term ``benefit period'' means, with respect to an 
     individual--
       (A) the benefit year and any ensuing period, as determined 
     under applicable State law, during which the individual is 
     eligible for regular compensation, additional compensation, 
     or extended compensation; or
       (B) the equivalent to such a benefit year or ensuing period 
     provided for under the applicable Federal unemployment 
     insurance law.
       (6) The term ``consumer goods manufacturing'' means the 
     electrical equipment, appliance, and component manufacturing 
     industry and transportation equipment manufacturing.
       (7) The term ``employment site'' means a single facility or 
     site of employment.
       (8) The term ``energy-intensive manufacturing industries'' 
     means all industrial sectors, entities, or groups of entities 
     that meet the energy or greenhouse gas intensity criteria in 
     section 765(b)(2)(A)(i) of the Clean Air Act based on the 
     most recent data available.
       (9) The term ``energy producing and transforming 
     industries'' means the coal mining industry, oil and gas 
     extraction, electricity power generation, transmission and 
     distribution, and natural gas distribution.
       (10) The term ``industries dependent on energy industries'' 
     means rail transportation and pipeline transportation.
       (11) The term ``on-the-job training'' means training 
     provided by an employer to an individual who is employed by 
     the employer.
       (12) The terms ``partial separation'' and ``partially 
     separated'' refer, with respect to an individual who has not 
     been totally separated, that such individual has had--
       (A) his or her hours of work reduced to 80 percent or less 
     of his average weekly hours in adversely affected employment; 
     and
       (B) his or her wages reduced to 80 percent or less of his 
     average weekly wage in such adversely affected employment.
       (13) The term ``public agency'' means a department or 
     agency of a State or political subdivision of a State or of 
     the Federal government.
       (14) The term ``Secretary'' means the Secretary of Labor.
       (15) The term ``service workers'' means workers supplying 
     support or auxiliary services to an employment site.
       (16) The term ``State agency'' means the agency of the 
     State which administers the State law.
       (17) The term ``State law'' means the unemployment 
     insurance law of the State approved by the Secretary of Labor 
     under section 3304 of the Internal Revenue Code of 1954.
       (18) The terms ``total separation'' and ``totally 
     separated'' refer to the layoff or severance of an individual 
     from employment with an employer in which adversely affected 
     employment exists.
       (19) The term ``unemployment insurance'' means the 
     unemployment compensation payable to an individual under any 
     State law or Federal unemployment compensation law, including 
     chapter 85 of title 5, United States Code, and the Railroad 
     Unemployment Insurance Act. The terms ``regular 
     compensation'', ``additional compensation'', and ``extended 
     compensation'' have the same respective meanings that are 
     given them in section 205(2), (3), and (4) of the Federal-
     State Extended Unemployment Compensation Act of 1970 (26 
     U.S.C. 3304 note.)
       (20) The term ``week'' means a week as defined in the 
     applicable State law.
       (21) The term ``week of unemployment'' means a week of 
     total, part-total, or partial unemployment as determined 
     under the applicable State law or Federal unemployment 
     insurance law.
       (g) Special Rule With Respect to Military Service.--
       (1) In general.--Notwithstanding any other provision of 
     this part, the Secretary may waive any requirement of this 
     part that the Secretary determines is necessary to ensure 
     that an adversely affected worker who is a member of a 
     reserve component of the Armed Forces and serves a period of 
     duty described in paragraph (2) is eligible to receive a 
     climate change adjustment allowance, training, and other 
     benefits under this part in the same manner and to the same 
     extent as if the worker had not served the period of duty.
       (2) Period of duty described.--An adversely affected worker 
     serves a period of duty described in this paragraph if, 
     before completing training under this part, the worker--
       (A) serves on active duty for a period of more than 30 days 
     under a call or order to active duty of more than 30 days; or
       (B) in the case of a member of the Army National Guard of 
     the United States or Air National Guard of the United States, 
     performs full-time National Guard duty under section 502(f) 
     of title 32, United States Code, for 30 consecutive days or 
     more when authorized by the President or the Secretary of 
     Defense for the purpose of responding to a national emergency 
     declared by the President and supported by Federal funds.
       (h) Fraud and Recovery of Overpayments.--
       (1) Recovery of payments to which an individual was not 
     entitled.--If the Secretary or a court of competent 
     jurisdiction determines that any person has received any 
     payment under this part to which the individual was not 
     entitled, such individual shall be liable to repay such 
     amount to the Secretary, as the case may be, except that the 
     Secretary shall waive such repayment if such agency or the 
     Secretary determines that--
       (A) the payment was made without fault on the part of such 
     individual; and
       (B) requiring such repayment would cause a financial 
     hardship for the individual (or the individual's household, 
     if applicable) when taking into consideration the income and 
     resources reasonably available to the individual (or 
     household) and other ordinary living expenses of the 
     individual (or household).
       (2) Means of recovery.--Unless an overpayment is otherwise 
     recovered, or waived under paragraph (1), the Secretary shall 
     recover the overpayment by deductions from any sums payable 
     to such person under this part, under any Federal 
     unemployment compensation law or other Federal law 
     administered by the Secretary which provides for the payment 
     of assistance or an allowance with respect to unemployment. 
     Any amount recovered under this section shall be returned to 
     the Treasury of the United States.
       (i) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the provisions 
     of this part.
       (j) Study on Older Workers.--The Secretary shall conduct a 
     study examine the circumstances of older adversely affected 
     workers and the ability of such workers to access their 
     retirement benefits. The Secretary shall transmit a report to 
     Congress not later than 2 years after the date of enactment 
     of this part on the findings of the study and the Secretary's 
     recommendations on how to ensure that adversely affected 
     workers within 2 years of retirement are able to access their 
     retirement benefits.
       [(k) Spending Limit.--For each fiscal year, the total 
     amount of funds disbursed for the

[[Page 16644]]

     purposes described in section 426 shall not exceed the amount 
     deposited in that fiscal year into the Climate Change Worker 
     Assistance Fund established under section [782(j)] of the 
     Clean Air Act. The annual spending limit for any succeeding 
     year shall be increased by the difference, if any, between 
     the amount of the prior year's disbursements and the spending 
     limitation for that year. The Secretary shall promulgate 
     rules to ensure that this spending limit is not exceeded. 
     Such rules shall provide that workers who receive any of the 
     benefits described in section 426 receive full benefits, and 
     shall include the establishment of a waiting list for workers 
     in the event that the requests for assistance exceed the 
     spending limit.]

                    Subtitle C--Consumer Assistance

     SEC. 431. ENERGY REFUND PROGRAM.

       The Social Security Act (42 U.S.C. 201 et seq.) is amended 
     by adding at the end the following:

                  ``TITLE XXII--ENERGY REFUND PROGRAM

     ``SEC. 2201. ENERGY REFUND PROGRAM.

       ``(a) In General.--The Secretary shall formulate and 
     administer the program provided for in this section, which 
     shall be known as the `Energy Refund Program', and under 
     which eligible low-income households are provided cash 
     payments to reimburse the households for the estimated loss 
     in their purchasing power resulting from the American Clean 
     Energy and Security Act of 2009.
       ``(b) Entitlement of Eligible Households to Cash 
     Payments.--At the request of the State agency of a State, 
     each eligible low-income household in the State shall be 
     entitled to receive monthly cash payments under this section 
     in an amount equal to the monthly energy refund amount 
     determined under subsection (d).
       ``(c) Eligibility.--
       ``(1) Eligible households.--A household shall be considered 
     to be an eligible low-income household for purposes of this 
     section if--
       ``(A) the gross income of the household does not exceed the 
     greater of--
       ``(i) 150 percent of the poverty line; or
       ``(ii) the greatest amount of household gross income in 
     respect of which a benefit could be payable under subsection 
     (d)(2)(B);
       ``(B) the State agency of the State in which the household 
     is located determines that the household is participating 
     in--
       ``(i) the Supplemental Nutrition Assistance Program 
     authorized by the Food and Nutrition Act of 2008 (7 U.S.C. 
     2011 et seq.);
       ``(ii) the Food Distribution Program on Indian Reservations 
     authorized by section 4(b) of such Act (7 U.S.C. 2013(b)); or
       ``(iii) the program for nutrition assistance in Puerto Rico 
     or American Samoa under section 19 of such Act (7 U.S.C. 
     2028);
       ``(C) the household consists of a single individual or a 
     married couple, and--
       ``(i) receives the subsidy described in section 1860D-14 of 
     this Act (42 U.S.C. 1395w-114); or
       ``(ii)(I) participates in the program under title XVIII of 
     this Act; and
       ``(II) meets the income requirements described in section 
     1860D-14(a)(1) or (a)(2) of this Act (42 U.S.C. 1395w-
     114(a)(1) or (a)(2)); or
       ``(D) the household consists of a single individual or a 
     married couple, and receives benefits under the supplemental 
     security income program under title XVI of this Act (42 
     U.S.C. 1381-1383f).
       ``(2) Streamlined participation for certain 
     beneficiaries.--The Secretary shall--
       ``(A) periodically estimate the number of eligible 
     beneficiaries and households, and the number of participating 
     beneficiaries and households, for the Energy Refund Program; 
     and
       ``(B) develop procedures, in consultation with the 
     Commissioner of Social Security, the Railroad Retirement 
     Board, the Secretary of Veterans Affairs, and the State 
     agencies, to ensure that low-income beneficiaries of the 
     benefit programs administered by such entities receive the 
     energy refund for which the beneficiaries are eligible under 
     the Energy Refund Program.
       ``(3) Limitation.--Notwithstanding any other provision of 
     law, the Secretary shall provide refunds to United States 
     citizens, United States nationals, and individuals lawfully 
     residing in the United States who qualify for a refund under 
     paragraph (1)(A), and shall establish procedures to ensure 
     that other individuals do not receive refunds.
       ``(4) National standards.--The Secretary shall consult with 
     the Secretary of Agriculture and establish uniform national 
     standards of eligibility ensuring that States may seamlessly 
     co-administer the energy refund program with the Supplemental 
     Nutrition Assistance Program in accordance with the 
     provisions of this section. No State agency shall impose any 
     other standard or requirement as a condition of eligibility 
     or refund receipt under the program. Assistance in the Energy 
     Refund Program shall be furnished promptly to all eligible 
     households who make application for such participation or are 
     already enrolled in any program referred to in paragraph (1).
       ``(d) Monthly Energy Refund Amount.--
       ``(1) Estimated annual total loss in purchasing power.--Not 
     later than August 31 of each fiscal year, the Energy 
     Information Administration shall estimate the annual total 
     loss in purchasing power that will result from American Clean 
     Energy and Security Act of 2009 in the next fiscal year for 
     households of each size with gross income equal to 150 
     percent of the poverty line, based on the projected total 
     market value of all compliance costs (including, but not 
     limited to, the emissions allowances used to demonstrate 
     compliance with title VII of the Clean Air Act in the next 
     fiscal year, and excluding costs that are not projected to be 
     incurred by households as a result of allowances freely 
     allocated and intended for residential consumer assistance 
     pursuant to sections 783 through 785 of the Clean Air Act), 
     in a way generally recognized as suitable by experts.
       ``(2) Monthly energy refund.--The monthly energy refund 
     amount for an eligible household under this section shall 
     be--
       ``(A) if the gross income of the household does not exceed 
     150 percent of the poverty line applicable to the household--
       ``(i) if the household has 1, 2, 3, or 4 members, \1/12\ of 
     the amount estimated under paragraph (1) for a household of 
     the same size, rounded to the nearest whole dollar amount; or
       ``(ii) if the household has 5 or more members, \1/12\ of 
     the arithmetic mean value of the amounts estimated under 
     paragraph (1) for households with 5 or more members, rounded 
     to the nearest whole dollar amount; or
       ``(B) if the gross income of the household exceeds 150 
     percent of the poverty line applicable to the household, \1/
     12\ of the amount (if any) by which--
       ``(i) the amount estimated under paragraph (1) for a 
     household of the same size; exceeds
       ``(ii) 20 percent of the amount by which the gross income 
     of the household exceeds 150 percent of the poverty line.
       ``(e) Delivery Mechanism.--
       ``(1) Subject to standards and an implementation schedule 
     set by the Secretary, the energy refund shall be provided in 
     monthly installments via--
       ``(A) direct deposit into the eligible household's 
     designated bank account;
       ``(B) the State's electronic benefit transfer system; or
       ``(C) another Federal or State mechanism, if such a 
     mechanism is approved by the Secretary.
       ``(2) Such standards shall include--
       ``(A)(i) defining the required level of recipient 
     protection regarding privacy;
       ``(ii) guidance on how recipients are offered choices, when 
     relevant, about the delivery mechanism;
       ``(iii) guidance on ease of use and access to the refund, 
     including the prohibition of fees charged to recipients for 
     withdrawals or other services; and
       ``(iv) cost-effective protections against improper 
     accessing of the energy refund;
       ``(B) operating standards that provide for interoperability 
     between States and law enforcement monitoring; and
       ``(C) other standards, as determined by the Secretary or 
     the Secretary's designee.
       ``(f) Administration.--
       ``(1) In general.--The State agency of each participating 
     State shall assume responsibility for the certification of 
     applicant households and for the issuance of refunds and the 
     control and accountability thereof.
       ``(2) Procedures.--Under standards established by the 
     Secretary, the State agency shall establish procedures 
     governing the administration of the Energy Refund Program 
     that the State agency determines best serve households in the 
     State, including households with special needs, such as 
     households with elderly or disabled members, households in 
     rural areas, homeless individuals, and households residing on 
     reservations as defined in the Indian Child Welfare Act of 
     1978 and the Indian Financing Act of 1974. In carrying out 
     this paragraph, a State agency--
       ``(A) shall provide timely, accurate, and fair service to 
     applicants for, and participants in, the Energy Refund 
     Program;
       ``(B) shall permit an applicant household to apply to 
     participate in the program at the time that the household 
     first contacts the State agency, and shall consider an 
     application that contains the name, address, and signature of 
     the applicant to be sufficient to constitute an application 
     for participation;
       ``(C) shall screen any applicant household for the 
     Supplemental Nutrition Assistance Program, the State's 
     medical assistance program under section XIX of this Act, 
     State Childrens Health Insurance Program under section XXI of 
     this Act, and a State program that provides basic assistance 
     under a State program funded under title IV of this Act or 
     with qualified State expenditures as defined in section 
     409(a)(7) of this Act for eligibility for the Energy Refund 
     Program and, if eligible, shall enroll such applicant 
     household in the Energy Refund Program;
       ``(D) shall complete certification of and provide a refund 
     to any eligible household not later than 30 days following 
     its filing of an application;
       ``(E) shall use appropriate bilingual personnel and 
     materials in the administration of the program in those 
     portions of the State in which a substantial number of 
     members of low-income households speak a language other than 
     English; and
       ``(F) shall utilize State agency personnel who are employed 
     in accordance with the current standards for a Merit System 
     of Personnel Administration or any standards later prescribed 
     by the Office of Personnel

[[Page 16645]]

     Management pursuant to section 208 of the Intergovernmental 
     Personnel Act of 1970 (42 U.S.C. 4728) modifying or 
     superseding such standards relating to the establishment and 
     maintenance of personnel standards on a merit basis to make 
     all tentative and final determinations of eligibility and 
     ineligibility.
       ``(3) Regulations.--
       ``(A) Except as provided in subparagraph (B), the Secretary 
     shall issue such regulations consistent with this section as 
     the Secretary deems necessary or appropriate for the 
     effective and efficient administration of the Energy Refund 
     Program, and shall promulgate all such regulations in 
     accordance with the procedures set forth in section 553 of 
     title 5, United States Code.
       ``(B) Without regard to section 553 of title 5 of such 
     Code, the Administrator may by rule promulgate as final, to 
     be effective until no later than two years after the date of 
     the enactment of the American Clean Energy and Security Act 
     of 2009, any procedures that are substantially the same as 
     the procedures governing the Supplemental Nutrition 
     Assistance Program in section 273.2, 273.12, or 273.15 of 
     title 7, Code of Federal Regulations.
       ``(C) Notwithstanding subsection (i)(4), the Secretary may 
     promulgate regulations allowing for streamlined eligibility 
     determinations for some or all households which include 
     individuals receiving assistance under a State plan approved 
     under title XIX or XXI of this Act. The regulations may 
     institute procedures whereby the income and family size 
     information used for determining eligibility under such title 
     XIX or XXI may be the basis for determining eligibility for 
     the Energy Refund Program.
       ``(D) Notwithstanding any other provision of this section, 
     the Secretary may authorize States to provide benefits under 
     this section on a quarterly basis if the Secretary determines 
     that the amount of the benefits that would be provided on a 
     monthly basis to households is insufficient to be efficiently 
     paid on a monthly basis in light of the administrative 
     expenses of the Energy Refund Program.
       ``(g) Treatment.--The value of the refund provided under 
     this section shall not be considered income or resources for 
     any purpose under any Federal, State, or local laws, 
     including, but not limited to, laws relating to an income 
     tax, or public assistance programs (including, but not 
     limited to, health care, cash aid, child care, nutrition 
     programs, and housing assistance) and no participating State 
     or political subdivision thereof shall decrease any 
     assistance otherwise provided an individual or individuals 
     because of the receipt of a refund under this section.
       ``(h) Program Integrity.--For purposes of ensuring program 
     integrity and complying with the requirements of the Improper 
     Payment Information Act of 2002, the Secretary shall, to the 
     maximum extent possible, rely on and coordinate with the 
     quality control sample and review procedures of paragraphs 
     (2), (3), (4), and (5) of section 16(c) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2025(c)).
       ``(i) Definitions.--
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of Health and Human Services or the head of another agency 
     designated by the Secretary of Health and Human Services.
       ``(2) Electronic benefit transfer system.--The term 
     `electronic benefit transfer system' means a system by which 
     household benefits or refunds defined under subsection (e) 
     are issued from and stored in a central databank via 
     electronic benefit transfer cards.
       ``(3) Gross income.--The term `gross income' means the 
     gross income of a household that is determined in accordance 
     with standards and procedures established under section 5 of 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2014) and its 
     implementing regulations.
       ``(4) Household.--
       ``(A) The term `household' means--
       ``(i) in subparagraphs (A) and (B) of subsection (c)(1) of 
     this section, except as provided in subparagraph (C) of this 
     paragraph, an individual or a group of individuals who are a 
     household under section 3(n) of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2012(n));
       ``(ii) in subsection (c)(1)(C) of this section, a single 
     individual or married couple that receives benefits under 
     section 1860D-14 of this Act (42 U.S.C. 1395w-114); and
       ``(iii) in subsection (c)(1)(D) of this section, a single 
     individual or married couple that receives benefits under the 
     supplemental security income program under title XVI of this 
     Act (42 U.S.C. 1381-1383f).
       ``(B) The Secretary shall establish rules for providing the 
     energy refund in an equitable and administratively simple 
     manner to households where the group of individuals who live 
     together includes members not all of whom are described in a 
     single clause of subparagraph (A), or includes additional 
     members not described in any such clause.
       ``(C) The Secretary shall establish rules regarding the 
     eligibility and delivery of the energy refund to groups of 
     individuals described in section 3(n)(4) or (5) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2012(n)).
       ``(5) Poverty line.--The term `poverty line' has the 
     meaning given the term in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)), including any 
     revision required by that section.
       ``(6) State.--The term `State' means the 50 States, the 
     District of Columbia, the Commonwealth of Puerto Rico, 
     American Samoa, the United States Virgin Islands, Guam, and 
     the Commonwealth of the Northern Mariana Islands.
       ``(7) State agency.--The term `State agency' means an 
     agency of State government, including the local offices 
     thereof, that has responsibility for administration of the 1 
     or more federally aided public assistance programs within the 
     State, and in those States where such assistance programs are 
     operated on a decentralized basis, the term shall include the 
     counterpart local agencies administering such programs.
       ``(8) Other terms.--Other terms not defined in this title 
     shall have the same meaning applied in the Supplemental 
     Nutrition Assistance Program authorized by the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless the 
     Secretary finds for good cause that application of a 
     particular definition would be detrimental to the purposes of 
     the Energy Refund Program.''.

     SEC. 432. MODIFICATION OF EARNED INCOME CREDIT AMOUNT FOR 
                   INDIVIDUALS WITH NO QUALIFYING CHILDREN.

       (a) In General.--Subsection (b) of section 32 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(4) Special rule for individuals with no qualifying 
     children who are affected by the american clean energy and 
     security act of 2009.--
       ``(A) In general.--In the case of any household which the 
     Secretary determines experienced a reduction in purchasing 
     power as a result of the provisions of, or amendments made 
     by, the American Clean Energy and Security Act of 2009 
     (determined without regard to this paragraph and section 2201 
     of the Social Security Act)--
       ``(i) Increase in credit percentage and phaseout 
     percentage.--The table contained in paragraph (1)(A) shall be 
     applied by substituting `15.3' for `7.65'.
       ``(ii) Increase in beginning phaseout amount.--The table 
     contained in paragraph (2)(A) shall be applied by 
     substituting `$11,640' for `$5,280'.
       ``(B) Inflation adjustment.--
       ``(i) In general.--In the case of any taxable year 
     beginning after 2012, the $11,640 amount in subparagraph 
     (A)(ii) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost of living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins determined by substituting `calendar year 2011' 
     for `calendar year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding.--Subparagraph (A) of subsection (j)(2) 
     shall apply after taking into account any increase under 
     clause (i) in the same manner as if such increase were under 
     paragraph (1) of subsection (j).
       ``(iii) Coordination with other inflation adjustments.--
     Paragraph (1) of subsection (j) shall not apply to the dollar 
     amount substituted under subparagraph (A)(ii).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 433. PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST 
                   FUNDS.

       (a) OASDI Trust Funds.--Section 201 of the Social Security 
     Act (42 U.S.C. 401) is amended by adding at the end the 
     following new subsection:
       ``(o) The Secretary of the Treasury shall transfer from 
     time to time to the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund, 
     from amounts in the general fund of the Treasury that are not 
     otherwise appropriated, such sums as the Chief Actuary of the 
     Social Security Administration calculates as necessary (and 
     so certifies to such Secretary) for any fiscal year, on 
     account of changes in benefit costs and changes in tax 
     revenue attributable to the provisions of the American Clean 
     Energy and Security Act of 2009 and the amendments made 
     thereby, in order to place each of such Trust Funds in the 
     same position at the end of such fiscal year as the position 
     in which such Trust Fund would have been if such changes had 
     not occurred.''.
       (b) HI Trust Fund.--Section 1817 of such Act (42 U.S.C. 
     1395i) is amended by adding at the end the following new 
     subsection:
       ``(l) Transfers to Account for Changes in Benefit Costs and 
     Changes in Tax Revenue Attributable to the American Clean 
     Energy and Security Act of 2009.--The Secretary of the 
     Treasury shall transfer from time to time to the Trust Fund, 
     from amounts in the general fund of the Treasury that are not 
     otherwise appropriated, such sums as the Chief Actuary of the 
     Centers for Medicare & Medicaid Services calculates as 
     necessary (and so certifies to such Secretary) for any fiscal 
     year, on account of changes in benefit costs and changes in 
     tax revenue attributable to the provisions of the American 
     Clean Energy and Security Act of 2009 and the amendments made 
     thereby, in order to place the Trust Fund in the same 
     position at the end of such fiscal year as the position in 
     which it would have been if such changes had not occurred.''.

[[Page 16646]]



                 Subtitle D--Exporting Clean Technology

     SEC. 441. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Protecting Americans from the impacts of climate change 
     requires global reductions in greenhouse gas emissions.
       (2) Although developing countries are historically least 
     responsible for the cumulative greenhouse gas emissions that 
     are causing climate change and continue to have very low per 
     capita greenhouse gas emissions, their overall greenhouse gas 
     emissions are increasing as they seek to grow their economies 
     and reduce energy poverty for their populations.
       (3) Many developing countries lack the financial and 
     technical resources to adopt clean energy technologies and 
     absent assistance their greenhouse gas emissions will 
     continue to increase.
       (4) Investments in clean energy technology cooperation can 
     substantially reduce global greenhouse gas emissions while 
     providing developing countries with incentives to adopt 
     policies that will address competitiveness concerns related 
     to regulation of United States greenhouse gas emissions.
       (5) Investments in clean technology in developing countries 
     will increase demand for clean energy products, open up new 
     markets for United States companies, spur innovation, and 
     lower costs.
       (6) Under Article 4 of the United Nations Framework 
     Convention on Climate Change, developed country parties, 
     including the United States, committed to ``take all 
     practicable steps to promote, facilitate, and finance, as 
     appropriate, the transfer of, or access to, environmentally 
     sound technologies and know-how to other parties, 
     particularly developing country parties, to enable them to 
     implement the provisions of the Convention''.
       (7) Under the Bali Action Plan, developed country parties 
     to the United Nations Framework Convention on Climate Change, 
     including the United States, committed to ``enhanced action 
     on the provision of financial resources and investment to 
     support action on mitigation and adaptation and technology 
     cooperation,'' including, inter alia, consideration of 
     ``improved access to adequate, predictable, and sustainable 
     financial resources and financial and technical support, and 
     the provision of new and additional resources, including 
     official and concessional funding for developing country 
     parties''.
       (8) Intellectual property rights are a key driver of 
     investment and research and development in, and the global 
     deployment of, clean technologies.
       (9) Innovative clean technologies, including U.S. and 
     multilateral financing mechanisms for their deployment, are 
     critical to mitigating global warming pollution, preventing 
     catastrophic changes to the climate, and developing robust 
     economies around the world.
       (10) Any weakening of intellectual property rights 
     protection poses a substantial competitive risk to U.S. 
     companies and the creation of high-quality U.S. jobs, 
     inhibiting the creation of new ``green'' employment and the 
     transformational shift to the ``Green Economy'' of the 21st 
     Century.
       (11) Any U.S. funding directed toward assisting developing 
     countries with regard to exporting clean technology should 
     promote the robust compliance with and enforcement of 
     existing international legal requirements for the protection 
     of intellectual property rights as formulated in the 
     Agreement on Trade-Related Aspects of Intellectual Property 
     Rights, referred to in section 101(d)(15) of the Uruguay 
     Round Agreements Act (19 U.S.C.3511(d)(15) and in applicable 
     intellectual property provisions of bilateral trade 
     agreements.
       (b) Purposes.--The purposes of this subtitle are--
       (1) to provide United States assistance and leverage 
     private resources to encourage widespread implementation, in 
     developing countries, of activities that reduce, sequester, 
     or avoid greenhouse gas emissions; and
       (2) to provide such assistance in a manner that--
       (A) encourages such countries to adopt policies and 
     measures, including sector-based and cross-sector policies 
     and measures, that substantially reduce, sequester, or avoid 
     greenhouse gas emissions;
       (B) promotes the successful negotiation of a global 
     agreement to reduce greenhouse gas emissions under the United 
     Nations Framework Convention on Climate Change; and
       (C) promotes robust compliance with and enforcement of 
     existing international legal requirements for the protection 
     of intellectual property rights, as formulated in the 
     Agreement on Trade-Related Aspects of Intellectual Property 
     Rights referred to in section 101(d)(15) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3511(d)(15)) and in applicable 
     intellectual property provisions of bilateral trade 
     agreements.

     SEC. 442. DEFINITIONS.

       In this subtitle:
       (1) Allowance.--The term ``allowance'' means an emission 
     allowance established under section 721 of the Clean Air Act.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committees on Energy and Commerce, Foreign Affairs, 
     and Financial Services of the House of Representatives; and
       (B) the Committees on Environment and Public Works, Energy 
     and Natural Resources, and Foreign Relations of the Senate.
       (3) 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.
       (4) Developing country.--The term ``developing country'' 
     means a country eligible to receive official development 
     assistance according to the income guidelines of the 
     Development Assistance Committee of the Organization for 
     Economic Cooperation and Development.
       (5) Eligible country.--The term ``eligible country'' means 
     a developing country that is determined by the interagency 
     group under section 444 to be eligible to receive assistance 
     under this subtitle.
       (6) Interagency group.--The term ``interagency group'' 
     means the group established by the President under section 
     443 to administer the program established under this 
     subtitle.
       (7) Least developed country.--The term ``least developed 
     country'' means a foreign country the United Nations has 
     identified as among the least developed of developing 
     countries.
       (8) Qualifying activity.--The term ``qualifying activity'' 
     means an activity that meets the criteria in section 445.
       (9) Qualifying entity.--The term ``qualifying entity'' 
     means a national, regional, or local government in, or a 
     nongovernmental organization or private entity located or 
     operating in, an eligible country.

     SEC. 443. GOVERNANCE.

       (a) Oversight.--The Secretary of State, or such other 
     Federal agency head as the President may designate, in 
     consultation with the interagency group established under 
     subsection (b), shall oversee distributions of allowances 
     allocated under section 782(o) of the Clean Air Act (as added 
     by section 321 of this Act) for distribution pursuant to this 
     subtitle.
       (b) Interagency Group.--The President shall establish an 
     interagency group to administer the program established under 
     this subtitle. The Members of the interagency group shall 
     include--
       (1) the Secretary of State;
       (2) the Administrator of the Environmental Protection 
     Agency;
       (3) the Secretary of Energy;
       (4) the Secretary of the Treasury;
       (5) the Secretary of Commerce;
       (6) the Administrator of the United States Agency for 
     International Development; and
       (7) any other head of a Federal agency or executive branch 
     appointee that the President may designate.
       (c) Chairperson.--The Secretary of State shall serve as the 
     chairperson of the interagency group.
       (d) Supplement Not Supplant.--Allowances distributed 
     pursuant to this subtitle shall be used to supplement, and 
     not to supplant, any other Federal, State, or local resources 
     available to carry out activities that are qualifying 
     activities under this subtitle.

     SEC. 444. DETERMINATION OF ELIGIBLE COUNTRIES.

       (a) In General.--The interagency group shall determine a 
     country to be an eligible country for the purposes of this 
     subtitle if a country meets the following criteria:
       (1) The country is a developing country that--
       (A) has entered into an international agreement to which 
     the United States is a party, under which such country agrees 
     to take actions to produce measurable, reportable, and 
     verifiable greenhouse gas emissions mitigation; or
       (B) is determined by the interagency group to have in force 
     national policies and measures that are capable of producing 
     measurable, reportable, and verifiable greenhouse gas 
     emissions mitigation.
       (2) The country has developed a nationally appropriate 
     mitigation strategy that seeks to achieve substantial 
     reductions, sequestration, or avoidance of greenhouse gas 
     emissions, relative to business-as-usual levels.
       (3) Subject to subsection (b)(1), such other criteria as 
     the President determines will serve the purposes of this 
     subtitle or other United States national security, foreign 
     policy, environmental, or economic objectives including 
     robust compliance with and enforcement of existing 
     international legal requirements for the protection of 
     intellectual property rights for clean technology, as 
     formulated in the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights, referred to in section 
     101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 
     3511(d)(15)) and in applicable intellectual property 
     provisions of bilateral trade agreements.
       (b) Exceptions.--
       (1) Subsection (a)(3) applies only to bilateral assistance 
     under section 446(c)(4).
       (2) The eligibility criteria in this section do not apply 
     in the case of least developed countries receiving assistance 
     under section 445(7) for the purpose of building capacity to 
     meet such eligibility criteria.

     SEC. 445. QUALIFYING ACTIVITIES.

       Assistance under this subtitle may be provided only to 
     qualifying entities for clean

[[Page 16647]]

     technology activities (including building relevant technical 
     and institutional capacity) that contribute to substantial, 
     measurable, reportable, and verifiable reductions, 
     sequestration, or avoidance of greenhouse gas emissions 
     including--
       (1) deployment of technologies to capture and sequester 
     carbon dioxide emissions from electric generating units or 
     large industrial sources (except that assistance under this 
     subtitle for such deployment shall be limited to the cost of 
     retrofitting existing facilities with such technologies or 
     the incremental cost of purchasing and installing such 
     technologies at new facilities);
       (2) deployment of renewable electricity generation from 
     wind, solar, sustainably produced biomass, geothermal, 
     marine, or hydrokinetic sources;
       (3) substantial increases in the efficiency of electricity 
     transmission, distribution, and consumption;
       (4) deployment of low- or zero emissions technologies that 
     are facing financial or other barriers to their widespread 
     deployment which could be addressed through support under 
     this subtitle in order to reduce, sequester, or avoid 
     emission;
       (5) reduction in transportation sector emissions through 
     increased transportation system and vehicle efficiency or use 
     of transportation fuels that have lifecycle greenhouse gas 
     emissions that are substantially lower than those 
     attributable to fossil fuel-based alternatives;
       (6) reduction in black carbon emissions; or
       (7) capacity building activities, including--
       (A) developing and implementing methodologies and programs 
     for measuring and quantifying greenhouse gas emissions and 
     verifying emissions mitigation;
       (B) assessing, developing, and implementing technology and 
     policy options for greenhouse gas emissions mitigation and 
     avoidance of future emissions, including sector and cross-
     sector mitigation strategies; and
       (C) providing other forms of technical assistance to 
     facilitate the qualification for, and receipt of, assistance 
     under this Act.

     SEC. 446. ASSISTANCE.

       (a) In General.--The Secretary of State, or such other 
     Federal agency head as the President may designate, is 
     authorized to provide assistance, through the distribution of 
     allowances, allocated for such purpose under section 782(o) 
     of the Clean Air Act (as added by section 321 of this Act) 
     for qualifying activities that take place in eligible 
     countries, in accordance with the requirements of this 
     subtitle.
       (b) Definition.--For the purposes of this section the term 
     ``clean technology'' means any technology or service related 
     to the qualifying activities identified in section 445.
       (c) Distribution of Allowances.--
       (1) In general.--The Secretary of State, or such other 
     Federal agency head as the President may designate, after 
     consultation with the interagency group, shall distribute 
     allowances under this subtitle--
       (A) in the form of bilateral assistance in accordance with 
     paragraph (4);
       (B) to multilateral funds or institutions pursuant to the 
     Convention or an agreement negotiated under the Convention; 
     or
       (C) through some combination of the mechanisms identified 
     in subparagraphs (A) and (B).
       (2) Global environment facility.--For any allowances 
     provided to the Global Environment Facility pursuant to 
     paragraph (1)(B), the President shall designate the Secretary 
     of the Treasury to distribute those allowances to the Global 
     Environment Facility.
       (3) Distribution through international fund or 
     institution.--If allowances are distributed to a multilateral 
     fund or institution, as authorized in paragraph (1), the 
     Secretary of State, or such other Federal agency head as the 
     President may designate, shall seek to ensure the 
     establishment and implementation of adequate mechanisms to--
       (A) apply and enforce the criteria for determination of 
     eligible countries and qualifying activities under sections 
     444 and 445, respectively;
       (B) require public reporting describing the process and 
     methodology for selecting the ultimate recipients of 
     assistance and a description of each activity that received 
     assistance, including the amount of obligations and 
     expenditures for assistance; and
       (C) require that no funds be expended for the benefit of 
     any qualifying activity where that activity or any activity 
     relating to a qualifying activity under section 445 
     undermines the robust compliance with and enforcement of 
     existing legal requirements for the protection of 
     intellectual property rights for clean technology, as 
     formulated in the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights, referred to in section 
     101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 
     3511(d)(15)).
       (4) Bilateral assistance.--
       (A) In general.--Bilateral assistance under paragraph (1) 
     shall be carried out by the Administrator of the United 
     States Agency for International Development, in consultation 
     with the interagency group.
       (B) Limitations.--Not more than 15 percent of allowances 
     made available to carry out bilateral assistance under this 
     subtitle in any year shall be distributed to support 
     activities in any single country.
       (C) Selection criteria.--Not later than 2 years after the 
     date of enactment of this subtitle, the Administrator of the 
     United States Agency for International Development, after 
     consultation with the interagency group, shall develop and 
     publish a set of criteria to be used in evaluating activities 
     within eligible countries for bilateral assistance under this 
     subtitle.
       (D) Criteria requirements.--The criteria under subparagraph 
     (C) shall require that--
       (i) the activity is a qualifying activity;
       (ii) the activity will be conducted as part of an eligible 
     country's nationally appropriate mitigation strategy or as 
     part of an eligible country's actions towards providing a 
     nationally appropriate mitigation strategy to reduce, 
     sequester, or avoid emissions being implemented by the 
     eligible country;
       (iii) the activity will not have adverse effects on human 
     health, safety, or welfare, the environment, or natural 
     resources;
       (iv) any technologies deployed through bilateral assistance 
     under this subtitle will be properly implemented and 
     maintained;
       (v) the activity will not cause any net loss of United 
     States jobs or displacement of United States production;
       (vi) costs of the activity will be shared by the host 
     country government, private sector parties, or a 
     multinational development bank, except that this clause does 
     not apply to least developed countries;
       (vii) the activity would not undermine the protection of 
     intellectual property rights for clean technology, as 
     formulated in the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights, referred to in section 
     101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 
     3511(d)(15)) and applicable intellectual property provisions 
     of bilateral trade agreements; and
       (viii) the activity meets such other requirements as the 
     interagency group determines appropriate to further the 
     purposes of this subtitle.
       (E) Criteria preferences.--The criteria under subparagraph 
     (C) shall give preference to activities that--
       (i) promise to achieve large-scale greenhouse gas 
     reductions, sequestration, or avoidance at a national, 
     sectoral or cross-sectoral level;
       (ii) have the potential to catalyze a shift within the host 
     country towards widespread deployment of low- or zero-carbon 
     energy technologies;
       (iii) build technical and institutional capacity and other 
     activities that are unlikely to be attractive to private 
     sector funding; or
       (iv) maximize opportunities to leverage other sources of 
     assistance and catalyze private-sector investment.
       (d) Monitoring, Evaluation, and Enforcement.--The Secretary 
     of State, or such other Federal agency head as the President 
     may designate, in consultation with the interagency group, 
     shall establish and implement a system to monitor and 
     evaluate the performance of activities receiving assistance 
     under this subtitle. The Secretary of State, or such other 
     Federal agency head as the President may designate, shall 
     have the authority to suspend or terminate assistance in 
     whole or in part for an activity if it is determined that the 
     activity is not operating in compliance with the approved 
     proposal.
       (e) Coordination With U.S. Foreign Assistance.--Subject to 
     the direction of the President, the Secretary of State shall, 
     to the extent practicable, seek to align activities under 
     this section with broader development, poverty alleviation, 
     or natural resource management objectives and initiatives in 
     the recipient country.
       (f) Annual Reports.--Not later than March 1, 2012, and 
     annually thereafter, the President shall submit to the 
     appropriate congressional committees a report on the 
     assistance provided under this subtitle during the prior 
     fiscal year. Such report shall include--
       (1) a description of the amount and value of allowances 
     distributed during the prior fiscal year;
       (2) a description of each activity that received assistance 
     during the prior fiscal year, and a description of the 
     anticipated and actual outcomes;
       (3) an assessment of any adverse effects to human health, 
     safety, or welfare, the environment, or natural resources as 
     a result of activities supported under this subtitle;
       (4) an assessment of the success of the assistance provided 
     under this subtitle to improving the technical and 
     institutional capacity to implement substantial emissions 
     reductions;
       (5) an estimate of the greenhouse gas emissions reductions, 
     sequestration, or avoidance achieved by assistance provided 
     under this subtitle during the prior fiscal year; and
       (6) an assessment whether any funds expended for the 
     benefit of any qualifying activity undermined the protection 
     of intellectual property rights for clean technology, as 
     formulated in the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights, referred to in section 
     101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 
     3511(d)(15)) and applicable intellectual property provisions 
     of bilateral trade agreements.
       (g) Not Eligible for Offset Credit.--Activities that 
     receive support under this subtitle shall not be issued 
     offset credits for the

[[Page 16648]]

     greenhouse gas emissions reductions or avoidance, or 
     greenhouse gas sequestration, produced by such activities.

                 Subtitle E--Adapting to Climate Change

                      PART 1--DOMESTIC ADAPTATION

         Subpart A--National Climate Change Adaptation Program

     SEC. 451. GLOBAL CHANGE RESEARCH AND DATA MANAGEMENT.

       (a) Short Title.--This section may be cited as the ``Global 
     Change Research and Data Management Act of 2009''.
       (b) Global Change Research.--
       (1) Purpose.--The purpose of this subsection is to provide 
     for the continuation and coordination of a comprehensive and 
     integrated United States observation, research, and outreach 
     program which will assist the Nation and the world to 
     understand, assess, predict, and respond to the effects of 
     human-induced and natural processes of global change.
       (2) Definitions.--For purposes of this subsection--
       (A) the term ``global change'' means human-induced or 
     natural changes in the global environment (including 
     alterations in climate, land productivity, oceans or other 
     water resources, atmospheric chemistry, biodiversity, and 
     ecological systems) that may alter the capacity of the Earth 
     to sustain life;
       (B) the term ``global change research'' means study, 
     monitoring, assessment, prediction, and information 
     management activities to describe and understand--
       (i) the interactive physical, chemical, and biological 
     processes that regulate the total Earth system;
       (ii) the unique environment that the Earth provides for 
     life;
       (iii) changes that are occurring in the Earth system; and
       (iv) the manner in which such system, environment, and 
     changes are influenced by human actions;
       (C) the term ``interagency committee'' means the 
     interagency committee established under paragraph (3);
       (D) the term ``Plan'' means the National Global Change 
     Research and Assessment Plan developed under paragraph (5);
       (E) the term ``Program'' means the United States Global 
     Change Research Program established under paragraph (4); and
       (F) the term ``regional climate change'' means the natural 
     or human-induced changes manifested in the local or regional 
     environment (including alterations in weather patterns, land 
     productivity, water resources, sea level rise, atmospheric 
     chemistry, biodiversity, and ecological systems) that may 
     alter the capacity of a specific region to support current or 
     future social and economic activity or natural ecosystems.
       (3) Interagency cooperation and coordination.--
       (A) Establishment.--The President shall establish or 
     designate an interagency committee to ensure cooperation and 
     coordination of all Federal research activities pertaining to 
     processes of global change for the purpose of increasing the 
     overall effectiveness and productivity of Federal global 
     change research efforts. The interagency committee shall 
     include research and program representatives of agencies 
     conducting global change research, agencies with authority 
     over resources likely to be affected by global change, and 
     agencies with authority to mitigate human-induced global 
     change.
       (B) Functions of the interagency committee.--The 
     interagency committee shall--
       (i) serve as the forum for developing the Plan and for 
     overseeing its implementation;
       (ii) serve as the forum for developing the vulnerability 
     assessment under paragraph (7);
       (iii) ensure cooperation among Federal agencies with 
     respect to global change research activities;
       (iv) work with academic, State, industry, and other groups 
     conducting global change research, to provide for periodic 
     public and peer review of the Program;
       (v) cooperate with the Secretary of State in--

       (I) providing representation at international meetings and 
     conferences on global change research in which the United 
     States participates; and
       (II) coordinating the Federal activities of the United 
     States with programs of other nations and with international 
     global change research activities;

       (vi) work with appropriate Federal, State, regional, and 
     local authorities to ensure that the Program is designed to 
     produce information needed to develop policies to mitigate 
     human-induced global change and to reduce the vulnerability 
     of the United States and other regions to global change;
       (vii) facilitate ongoing dialog and information exchange 
     with regional, State, and local governments and other user 
     communities; and
       (viii) identify additional decisionmaking groups that may 
     use information generated through the Program.
       (4) United states global change research program.--
       (A) Establishment.--The President shall establish an 
     interagency United States Global Change Research Program to 
     improve understanding of global change, to respond to the 
     information needs of communities and decisionmakers, and to 
     provide periodic assessments of the vulnerability of the 
     United States and other regions to global and regional 
     climate change. The Program shall be implemented in 
     accordance with the Plan.
       (B) Lead agency.--The lead agency for the United States 
     Global Change Research Program shall be the Office of Science 
     and Technology Policy.
       (C) Interagency program activities.--The Director of the 
     Office of Science and Technology Policy, in consultation with 
     the interagency committee, shall identify activities included 
     in the Plan that involve participation by 2 or more agencies 
     in the Program, and that do not fall within the current 
     fiscal year budget allocations of those participating 
     agencies, to fulfill the requirements of this section. The 
     Director of the Office of Science and Technology Policy shall 
     allocate funds to the agencies to conduct the identified 
     interagency activities. Such activities may include--
       (i) development of scenarios for climate, land-cover 
     change, population growth, and socioeconomic development;
       (ii) calibration and testing of alternative regional and 
     global climate models;
       (iii) identification of economic sectors and regional 
     climatic zones; and
       (iv) convening regional workshops to facilitate information 
     exchange and involvement of regional, State, and local 
     decisionmakers, non-Federal experts, and other stakeholder 
     groups in the activities of the Program.
       (D) Workshops.--The Director shall ensure that at least one 
     workshop is held per year in each region identified by the 
     Plan under paragraph (5)(B)(xi) to facilitate information 
     exchange and outreach to regional, State, and local 
     stakeholders as required by this section.
       (E) Authorization of appropriations.--There are authorized 
     to be appropriated to the Office of Science and Technology 
     Policy for carrying out this paragraph $10,000,000 for each 
     of the fiscal years 2009 through 2014.
       (5) National global change research and assessment plan.--
       (A) In general.--The President shall develop a National 
     Global Change Research and Assessment Plan for implementation 
     of the Program. The Plan shall contain recommendations for 
     global change research and assessment. The President shall 
     submit an outline for the development of the Plan to the 
     Congress within 1 year after the date of enactment of this 
     Act, and shall submit a completed Plan to the Congress within 
     3 years after the date of enactment of this Act. Revised 
     Plans shall be submitted to the Congress at least once every 
     5 years thereafter. In the development of each Plan, the 
     President shall conduct a formal assessment process under 
     this paragraph to determine the needs of appropriate Federal, 
     State, regional, and local authorities and other interested 
     parties regarding the types of information needed by them in 
     developing policies to mitigate human-induced global change 
     and to reduce society's vulnerability to global change and 
     shall utilize these assessments, including the reviews by the 
     National Academy of Sciences and the National Governors 
     Association under subparagraphs (E) and (F), in developing 
     the Plan.
       (B) Contents of the plan.--The Plan shall--
       (i) establish, for the 10-year period beginning in the year 
     the Plan is submitted, the goals and priorities for Federal 
     global change research which most effectively advance 
     scientific understanding of global change and provide 
     information of use to Federal, State, regional, and local 
     authorities in the development of policies relating to global 
     change;
       (ii) describe specific activities, including efforts to 
     determine user information needs, research activities, data 
     collection, database development, and data analysis 
     requirements, development of regional scenarios, assessment 
     of model predictability, assessment of climate change 
     impacts, participation in international research efforts, and 
     information management, required to achieve such goals and 
     priorities;
       (iii) identify relevant programs and activities of the 
     Federal agencies that contribute to the Program directly and 
     indirectly;
       (iv) set forth the role of each Federal agency in 
     implementing the Plan;
       (v) consider and utilize, as appropriate, reports and 
     studies conducted by Federal agencies, the National Research 
     Council, or other entities;
       (vi) make recommendations for the coordination of the 
     global change research and assessment activities of the 
     United States with such activities of other nations and 
     international organizations, including--

       (I) a description of the extent and nature of international 
     cooperative activities;
       (II) bilateral and multilateral efforts to provide 
     worldwide access to scientific data and information; and
       (III) improving participation by developing nations in 
     international global change research and environmental data 
     collection;

       (vii) detail budget requirements for Federal global change 
     research and assessment activities to be conducted under the 
     Plan;
       (viii) catalog the type of information identified by 
     appropriate Federal, State, regional, and local 
     decisionmakers needed to

[[Page 16649]]

     develop policies to reduce society's vulnerability to global 
     change and indicate how the planned research will meet these 
     decisionmakers' information needs;
       (ix) identify the observing systems currently employed in 
     collecting data relevant to global and regional climate 
     change research and prioritize additional observation systems 
     that may be needed to ensure adequate data collection and 
     monitoring of global change;
       (x) describe specific activities designed to facilitate 
     outreach and data and information exchange with regional, 
     State, and local governments and other user communities; and
       (xi) identify and describe regions of the United States 
     that are likely to experience similar impacts of global 
     change or are likely to share similar vulnerabilities to 
     global change.
       (C) Research elements.--The Plan shall include at a minimum 
     the following research elements:
       (i) Global measurements, establishing worldwide to regional 
     scale observations prioritized to understand global change 
     and to meet the information needs of decisionmakers on all 
     relevant spatial and time scales.
       (ii) Information on economic, demographic, and 
     technological trends that contribute to changes in the Earth 
     system and that influence society's vulnerability to global 
     and regional climate change.
       (iii) Development of indicators and baseline databases to 
     document global change, including changes in species 
     distribution and behavior, extent of glaciations, and changes 
     in sea level.
       (iv) Studies of historical changes in the Earth system, 
     using evidence from the geological and fossil record.
       (v) Assessments of predictability using quantitative models 
     of the Earth system to simulate global and regional 
     environmental processes and trends.
       (vi) Focused research initiatives to understand the nature 
     of and interaction among physical, chemical, biological, land 
     use, and social processes related to global and regional 
     climate change.
       (vii) Focused research initiatives to determine and then 
     meet the information needs of appropriate Federal, State, and 
     regional decisionmakers.
       (D) Information management.--The Plan shall incorporate, to 
     the extent practicable, the recommendations relating to data 
     acquisition, management, integration, and archiving made by 
     the interagency climate and other global change data 
     management working group established under subsection (c)(3).
       (E) National academy of sciences evaluation.--The President 
     shall enter into an agreement with the National Academy of 
     Sciences under which the Academy shall--
       (i) evaluate the scientific content of the Plan; and
       (ii) recommend priorities for future global and regional 
     climate change research and assessment.
       (F) National governors association evaluation.--The 
     President shall enter into an agreement with the National 
     Governors Association Center for Best Practices under which 
     that Center shall--
       (i) evaluate the utility to State, local, and regional 
     decisionmakers of each Plan and of the anticipated and actual 
     information outputs of the Program for development of State, 
     local, and regional policies to reduce vulnerability to 
     global change; and
       (ii) recommend priorities for future global and regional 
     climate change research and assessment.
       (G) Public participation.--In developing the Plan, the 
     President shall consult with representatives of academic, 
     State, industry, and environmental groups. Not later than 90 
     days before the President submits the Plan, or any revision 
     thereof, to the Congress, a summary of the proposed Plan 
     shall be published in the Federal Register for a public 
     comment period of not less than 60 days.
       (6) Budget coordination.--
       (A) In general.--The President shall provide general 
     guidance to each Federal agency participating in the Program 
     with respect to the preparation of requests for 
     appropriations for activities related to the Program.
       (B) Consideration in president's budget.--The President 
     shall submit, at the time of his annual budget request to 
     Congress, a description of those items in each agency's 
     annual budget which are elements of the Program.
       (7) Vulnerability assessment.--
       (A) Requirement.--Within 1 year after the date of enactment 
     of this Act, and at least once every 5 years thereafter, the 
     President shall submit to the Congress an assessment which--
       (i) integrates, evaluates, and interprets the findings of 
     the Program and discusses the scientific uncertainties 
     associated with such findings;
       (ii) analyzes current trends in global change, both human-
     induced and natural, and projects major trends for the 
     subsequent 25 to 100 years;
       (iii) based on indicators and baselines developed under 
     paragraph (5)(C)(iii), as well as other measurements, 
     analyzes changes to the natural environment, land and water 
     resources, and biological diversity in--

       (I) major geographic regions of the United States; and
       (II) other continents;

       (iv) analyzes the effects of global change, including the 
     changes described in clause (iii), on food and fiber 
     production, energy production and use, transportation, human 
     health and welfare, water availability and coastal 
     infrastructure, and human social and economic systems, 
     including providing information about the differential 
     impacts on specific geographic regions within the United 
     States, on people of different income levels within those 
     regions, and for rural and urban areas within those regions; 
     and
       (v) summarizes the vulnerability of different geographic 
     regions of the world to global change and analyzes the 
     implications of global change for the United States, 
     including international assistance, population displacement, 
     food and resource availability, and national security.
       (B) Use of related reports.--To the extent appropriate, the 
     assessment produced pursuant to this paragraph may coordinate 
     with, consider, incorporate, or otherwise make use of related 
     reports, assessments, or information produced by the United 
     States Global Change Research Program, regional, State, and 
     local entities, and international organizations, including 
     the World Meteorological Organization and the 
     Intergovernmental Panel on Climate Change.
       (8) Policy assessment.--Not later than 1 year after the 
     date of enactment of this Act, and at least once every 4 
     years thereafter, the President shall enter into a joint 
     agreement with the National Academy of Public Administration 
     and the National Academy of Sciences under which the 
     Academies shall--
       (A) document current policy options being implemented by 
     Federal, State, and local governments to mitigate or adapt to 
     the effects of global and regional climate change;
       (B) evaluate the realized and anticipated effectiveness of 
     those current policy options in meeting mitigation and 
     adaptation goals;
       (C) identify and evaluate a range of additional policy 
     options and infrastructure for mitigating or adapting to the 
     effects of global and regional climate change;
       (D) analyze the adoption rates of policies and technologies 
     available to reduce the vulnerability of society to global 
     change with an evaluation of the market and policy obstacles 
     to their adoption in the United States; and
       (E) evaluate the distribution of economic costs and 
     benefits of these policy options across different United 
     States economic sectors.
       (9) Annual report.--Each year at the time of submission to 
     the Congress of the President's budget request, the President 
     shall submit to the Congress a report on the activities 
     conducted pursuant to this subsection, including--
       (A) a description of the activities of the Program during 
     the past fiscal year;
       (B) a description of the activities planned in the next 
     fiscal year toward achieving the goals of the Plan; and
       (C) a description of the groups or categories of State, 
     local, and regional decisionmakers identified as potential 
     users of the information generated through the Program and a 
     description of the activities used to facilitate 
     consultations with and outreach to these groups, coordinated 
     through the work of the interagency committee.
       (10) Relation to other authorities.--The President shall--
       (A) ensure that relevant research, assessment, and outreach 
     activities of the National Climate Program, established by 
     the National Climate Program Act (15 U.S.C. 2901 et seq.), 
     are considered in developing national global and regional 
     climate change research and assessment efforts; and
       (B) facilitate ongoing dialog and information exchange with 
     regional, State, and local governments and other user 
     communities through programs authorized in the National 
     Climate Program Act (15 U.S.C. 2901 et seq.).
       (11) Repeal.--The Global Change Research Act of 1990 (15 
     U.S.C. 2921 et seq.) is amended by striking titles I and III 
     thereof.
       (12) Global change research information.--The President 
     shall establish or designate a Global Change Research 
     Information Exchange to make scientific research and other 
     information produced through or utilized by the Program which 
     would be useful in preventing, mitigating, or adapting to the 
     effects of global change accessible through electronic means.
       (13) Ice sheet study and report.--
       (A) Study.--
       (i) Requirement.--The Director of the National Science 
     Foundation and the Administrator of National Oceanic and 
     Atmospheric Administration shall enter into an arrangement 
     with the National Academy of Sciences to complete a study of 
     the current status of ice sheet melt, as caused by climate 
     change, with implications for global sea level rise.
       (ii) Contents.--The study shall take into consideration--

       (I) the past research completed related to ice sheet melt 
     as reviewed by Working Group I of the Intergovernmental Panel 
     on Climate Change;
       (II) additional research completed since the fall of 2005 
     that was not included in the Working Group I report due to 
     time constraints; and

[[Page 16650]]

       (III) the need for an accurate assessment of changes in ice 
     sheet spreading, changes in ice sheet flow, self-lubrication, 
     the corresponding effect on ice sheets, and current modeling 
     capabilities.

       (B) Report.--Not later than 18 months after the date of 
     enactment of this Act, the National Academy of Sciences shall 
     transmit to the Committee on Science and Technology of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate a report on the key 
     findings of the study conducted under subparagraph (A), along 
     with recommendations for additional research related to ice 
     sheet melt and corresponding sea level rise.
       (14) Hurricane frequency and intensity study and report.--
       (A) Study.--
       (i) Requirement.--The Administrator of the National Oceanic 
     and Atmospheric Administration and the Director of the 
     National Science Foundation shall enter into an arrangement 
     with the National Academy of Sciences to complete a study of 
     the current state of the science on the potential impacts of 
     climate change on patterns of hurricane and typhoon 
     development, including storm intensity, track, and frequency, 
     and the implications for hurricane-prone and typhoon-prone 
     coastal regions.
       (ii) Contents.--The study shall take into consideration--

       (I) the past research completed related to hurricane and 
     typhoon development, track, and intensity as reviewed by 
     Working Groups I and II of the Intergovernmental Panel on 
     Climate Change;
       (II) additional research completed since the fall of 2005 
     that was not included in the Working Group I and II reports 
     due to time constraints;
       (III) the need for accurate assessment of potential changes 
     in hurricane and typhoon intensity, track, and frequency and 
     of the current modeling and forecasting capabilities and the 
     need for improvements in forecasting of these parameters; and
       (IV) the need for additional research and monitoring to 
     improve forecasting of hurricanes and typhoons and to 
     understand the relationship between climate change and 
     hurricane and typhoon development.

       (B) Report.--Not later than 18 months after the date of 
     enactment of this Act, the National Academy of Sciences shall 
     transmit to the Committee on Science and Technology of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate a report on the key 
     findings of the study conducted under subparagraph (A).
       (c) Climate and Other Global Change Data Management.--
       (1) Purposes.--The purposes of this subsection are to 
     establish climate and other global change data management and 
     archiving as Federal agency missions, and to establish 
     Federal policies for managing and archiving climate and other 
     global change data.
       (2) Definitions.--For purposes of this subsection--
       (A) the term ``metadata'' means information describing the 
     content, quality, condition, and other characteristics of 
     climate and other global change data, compiled, to the 
     maximum extent possible, consistent with the requirements of 
     the ``Content Standard for Digital Geospatial Metadata'' 
     (FGDC-STD-001-1998) issued by the Federal Geographic Data 
     Committee, or any successor standard approved by the working 
     group; and
       (B) the term ``working group'' means the interagency 
     climate and other global change data management working group 
     established under paragraph (3).
       (3) Interagency climate and other global change data 
     management working group.--
       (A) Establishment.--The President shall establish or 
     designate an interagency climate and other global change data 
     management working group to make recommendations for 
     coordinating Federal climate and other global change data 
     management and archiving activities.
       (B) Membership.--The working group shall include the 
     Administrator of the National Aeronautics and Space 
     Administration, the Administrator of the National Oceanic and 
     Atmospheric Administration, the Secretary of Energy, the 
     Secretary of Defense, the Director of the National Science 
     Foundation, the Director of the United States Geological 
     Survey, the Archivist of the United States, the Administrator 
     of the Environmental Protection Agency, the Secretary of the 
     Smithsonian Institution, or their designees, and 
     representatives of any other Federal agencies the President 
     considers appropriate.
       (C) Reports.--Not later than 1 year after the date of 
     enactment of this Act, the working group shall transmit a 
     report to the Congress containing the elements described in 
     subparagraph (D). Not later than 4 years after the initial 
     report under this subparagraph, and at least once every 4 
     years thereafter, the working group shall transmit reports 
     updating the previous report. In preparing reports under this 
     subparagraph, the working group shall consult with expected 
     users of the data collected and archived by the Program.
       (D) Contents.--The reports and updates required under 
     subparagraph (C) shall--
       (i) include recommendations for the establishment, 
     maintenance, and accessibility of a catalog identifying all 
     available climate and other global change data sets;
       (ii) identify climate and other global change data 
     collections in danger of being lost and recommend actions to 
     prevent such loss;
       (iii) identify gaps in climate and other global change data 
     and recommend actions to fill those gaps;
       (iv) identify effective and compatible procedures for 
     climate and other global change data collection, management, 
     and retention and make recommendations for ensuring their use 
     by Federal agencies and other appropriate entities;
       (v) develop and propose a coordinated strategy for funding 
     and allocating responsibilities among Federal agencies for 
     climate and other global change data collection, management, 
     and retention;
       (vi) make recommendations for ensuring that particular 
     attention is paid to the collection, management, and 
     archiving of metadata;
       (vii) make recommendations for ensuring a unified and 
     coordinated Federal capital investment strategy with respect 
     to climate and other global change data collection, 
     management, and archiving;
       (viii) evaluate the data record from each observing system 
     and make recommendations to ensure that delivered data are 
     free from time-dependent biases and random errors before they 
     are transferred to long-term archives; and
       (ix) evaluate optimal design of observation system 
     components to ensure a cost-effective, adequate set of 
     observations detecting and tracking global change.

     SEC. 452. NATIONAL CLIMATE SERVICE.

       (a) Short Title.--This section may be cited as the 
     ``National Climate Service Act of 2009''.
       (b) Purpose.--The purpose of this section is to establish a 
     National Climate Service and to define the activities to be 
     undertaken within the National Oceanic and Atmospheric 
     Administration to--
       (1) advance understanding of climate variability and change 
     at the global, national, regional, and local levels;
       (2) provide forecasts, warnings, and other information to 
     the public on variability and change in weather and climate 
     that affect geographic areas, natural resources, 
     infrastructure, economic sectors, and communities; and
       (3) support development of adaptation and response plans by 
     Federal agencies, State, local, and tribal governments, the 
     private sector, and the public.
       (c) Definitions.--In this section:
       (1) Advisory committee.--The term ``Advisory Committee'' 
     means the Climate Service Advisory Committee established 
     under subsection (f).
       (2) Director.--The term ``Director'' means the Director of 
     the Climate Service Office.
       (3) Representative.--The term ``representative'' means an 
     individual who is not a full-time or part-time employee of 
     the Federal Government and who is appointed to an advisory 
     committee to represent the views of an entity or entities 
     outside the Federal Government.
       (4) Special government employee.--The term ``Special 
     Government Employee'' has the same meaning as in section 
     202(a) of title 18, United States Code.
       (5) Under secretary.--The term ``Under Secretary'' means 
     the Under Secretary of Commerce for Oceans and Atmosphere.
       (d) Interagency Development of a National Climate 
     Service.--
       (1) In general.--The President shall--
       (A) initiate a process within 30 days after the date of 
     enactment of this Act through the Committee on Environment 
     and Natural Resources of the National Science and Technology 
     Council and led by the Director of the Office of Science and 
     Technology Policy, to evaluate alternative structures to 
     support a collaborative, interagency research and operational 
     program that will achieve the goal of meeting the needs of 
     decisionmakers in--
       (i) Federal agencies;
       (ii) State, local, and tribal governments;
       (iii) regional entities and other stakeholders and users,
     for reliable, timely, and relevant information related to 
     climate variability and change;
       (B) within 1 year after the date of enactment of this Act 
     complete pursuant to paragraph (2) a survey of the needs of 
     current and future users of information related to climate 
     variability and change;
       (C) within 2 years after the date of enactment of this Act 
     report to Congress under paragraph (3) the results of the 
     evaluation described in subparagraph (A) and provide a plan 
     to establish a collaborative, interagency research and 
     operational program to deliver information related to climate 
     variability and change to all users; and
       (D) within 3 years after the date of enactment of this Act, 
     and after delivery of the report to Congress required under 
     subparagraph (C), establish a National Climate Service, based 
     upon the information obtained through the process described 
     in subparagraph (A), that meets the goal described in 
     subparagraph (A).

[[Page 16651]]

       (2) Survey of need for climate services.--
       (A) In general.--The Director of the Office of Science and 
     Technology Policy, through the Committee on Environment and 
     Natural Resources, shall provide a report to Congress within 
     1 year after the date of enactment of this Act that compiles 
     information on the current climate products being delivered 
     by each Federal agency and its partner organizations to users 
     and stakeholders, and on the needs of users and stakeholders 
     for new climate products and services.
       (B) Contents of the report.--The report shall identify--
       (i) specific user groups and stakeholders that currently 
     are served by each Federal agency and its partner 
     organizations;
       (ii) the type of climate products and services currently 
     delivered to specific users groups and stakeholders, and the 
     specific Federal agency office, program, or partner 
     organization that delivers these products and services;
       (iii) potential user groups and stakeholders that may be 
     served by expanding climate products and services;
       (iv) specific needs for new climate products and services 
     to be delivered by each Federal agency and its partner 
     organizations identified by user groups and stakeholders;
       (v) a characterization of the different user and 
     stakeholder groups that were surveyed by each Federal agency; 
     and
       (vi) a list of non-Federal entities that deliver climate 
     products and services.
       (3) Report to congress.--
       (A) In general.--Within 2 years after the date of enactment 
     of this Act, the Director of the Office of Science and 
     Technology Policy shall report to the President and the 
     Congress on a proposal, prepared through the Committee on 
     Environment and Natural Resources, to establish and operate a 
     National Climate Service. The report shall include--
       (i) a description of the alternative structures considered;
       (ii) a description of the structure proposed for a National 
     Climate Service, including a discussion of the benefits of 
     this structure as compared to the alternatives considered;
       (iii) designation of a specific office or agency that will 
     lead the National Climate Service and that shall be 
     accountable for the daily operation of the National Climate 
     Service;
       (iv) a description of the role and capability of each 
     Federal agency, including a list of all entities within each 
     agency or supported with agency funds that currently provide 
     or may provide climate products or services;
       (v) a description of the mechanisms that will be used to 
     ensure ongoing communication and information exchange among 
     the Federal agencies and between Federal agencies and their 
     respective user and stakeholder communities including--

       (I) mechanisms to facilitate ongoing dialogue with non-
     Federal organizations providing climate services;
       (II) mechanisms to facilitate ongoing dialogue with 
     regional, State, local, and tribal governments, the private 
     sector, and other users and stakeholders on the development 
     and delivery of climate services;
       (III) mechanisms to collect information, observations, and 
     other data relevant for improving climate products and 
     services; and
       (IV) designation of points of contact for each Federal 
     agency with responsibilities to deliver climate services;

       (vi) a detailed description of the processes and procedures 
     that will be necessary to coordinate observations and 
     information collection by different Federal agencies to 
     ensure the compatibility of information and to facilitate 
     data and information exchange among Federal agencies and with 
     non-Federal entities, and a designation of the agency or 
     agencies that would be responsible for ongoing oversight of 
     these functions;
       (vii) a detailed description of how research findings and 
     climate impact assessments produced through the United States 
     Global Change Research Program and the other activities 
     undertaken within the United States Global Change Research 
     Program would be integrated with the activities undertaken by 
     a National Climate Service;
       (viii) a list of the existing observation and monitoring 
     systems or programs operated by each Federal agency that 
     provide data, observations, and other information that may be 
     used to develop or improve climate products and services;
       (ix) a description of new infrastructure, equipment, 
     personnel or other resources, by agency, that may be needed 
     to achieve the goals of a National Climate Service, and the 
     time period over which these new resources will be allocated;
       (x) an identification of the activities that may be 
     undertaken in cooperation with international partners;
       (xi) the mechanisms established to provide quality 
     assurance and quality control of climate service products and 
     services, and the agency or agencies designated to conduct 
     and oversee these mechanisms;
       (xii) an identification of non-Federal entities that 
     provide climate products and services, and a description of 
     the relationship envisioned between a National Climate 
     Service and the non-Federal entities providing climate 
     services; and
       (xiii) responses to the comments received during the public 
     comment period.
       (B) Draft report.--Prior to the submission of the final 
     report, the Director of the Office of Science and Technology 
     Policy shall publish a draft report in the Federal Register 
     with a comment period of at least 30 days.
       (C) Consultation.--In developing the report, the Director 
     of the Office of Science and Technology Policy shall consult 
     with State, local, and tribal governments, regional entities, 
     the private sector, and other users and stakeholder groups, 
     and Congress.
       (4) Annual report.--The Director of the Office of Science 
     and Technology Policy shall transmit to the Congress at the 
     time of the President's fiscal year 2013 budget request, and 
     annually thereafter, a report on the annual anticipated cost 
     of carrying out the research and operational activities of 
     the National Climate Service, with a description of the 
     budget for each Federal agency's activities.
       (e) Climate Service Program.--
       (1) In general.--The Under Secretary, building upon the 
     resources of the National Weather Service and other weather 
     and climate programs in the National Oceanic and Atmospheric 
     Administration, shall establish a Climate Service Program.
       (2) Climate service office.--The Under Secretary shall 
     establish a Climate Service Office and shall appoint a 
     Director of the Office to collaborate with the leadership of 
     the National Oceanic and Atmospheric Administration line 
     offices to perform the duties assigned to the Office. The 
     Climate Service Office shall--
       (A) coordinate programs at the National Oceanic and 
     Atmospheric Administration to ensure the timely production 
     and distribution of data and information on global, national, 
     regional, and local climate variability and change over all 
     time scales relevant for planning and response, including 
     intraseasonal, interannual, decadal, and multidecadal time 
     periods;
       (B) ensure exchange of information between the research and 
     operational offices at the National Oceanic and Atmospheric 
     Administration to identify research needs for improving 
     climate products and services and ensure the timely and 
     orderly transition of research findings, improved 
     technologies, models, and other tools to the National Oceanic 
     and Atmospheric Administration's operations;
       (C) ensure operational quality control of all Climate 
     Service Program products including a transparent and open 
     accounting of all the assumptions built into the global, 
     national, regional, and local weather and climate computer 
     models upon which such products are based;
       (D) ensure a continuous level of high-quality data 
     collected through a national observation and monitoring 
     infrastructure, including at a minimum performing regular 
     maintenance and verification, and periodic upgrades;
       (E) serve as liaison to and exchange information with other 
     Federal agencies that provide climate services in order to--
       (i) ensure the timely dissemination of data and information 
     on weather and climate produced by the National Oceanic and 
     Atmospheric Administration to other Federal agencies;
       (ii) ensure that data and information collected by other 
     Federal agencies relevant to improving climate services are 
     made available to the National Oceanic and Atmospheric 
     Administration;
       (iii) facilitate the development and delivery of climate 
     products and services to relevant stakeholders; and
       (iv) obtain information from other Federal agencies to 
     improve the development and dissemination by the National 
     Oceanic and Atmospheric Administration of information on 
     weather and climate to other Federal agencies for the 
     development of climate service products by those agencies;
       (F) ensure cooperation and collaboration, as appropriate, 
     of the Climate Service Program with State, local, and tribal 
     governments, regional entities, academic and nonprofit 
     research organizations, and private sector entities, 
     including weather information providers and other 
     stakeholders; and
       (G) ensure exchange of data, information, and research with 
     the United States Global Change Research Program to support 
     the development of assessments required under the Global 
     Change Research Act of 1990 (15 U.S.C. 2921 et seq.).
       (3) Climate service program.--
       (A) In general.--The Under Secretary shall operate the 
     Climate Service Program through a national center, the 
     Climate Service Office, and a network of regional and local 
     facilities, including the established regional and local 
     offices of the National Weather Service, 6 Regional Climate 
     Centers, the offices of the Regional Integrated Sciences and 
     Assessments program, the National Integrated Drought 
     Information System, and any other National Oceanic and 
     Atmospheric Administration or National Oceanic and 
     Atmospheric Administration-supported regional and local 
     entities, as appropriate.
       (B) Regional climate centers program.--The Under Secretary 
     shall maintain a network of 6 Regional Climate Centers to 
     work cooperatively with the State Climate Offices to--

[[Page 16652]]

       (i) collect and exchange data and information needed to 
     characterize, understand, and forecast regional and local 
     weather and climate;
       (ii) facilitate collection and exchange of data and 
     information between the States and Federal Government on 
     weather and climate in conjunction with the National Climatic 
     Data Center;
       (iii) support research and observations;
       (iv) obtain input on stakeholder needs for weather and 
     climate information and products; and
       (v) support State and local adaptation and response 
     planning.
       (C) Regional integrated sciences and assessments program.--
     The Under Secretary shall maintain a network of offices as 
     part of the Regional Integrated Sciences and Assessments 
     Program. Such offices shall engage in cooperative research, 
     development, and demonstration projects with the academic 
     community, State Climate Offices, Regional Climate Offices, 
     and other users and stakeholders on climate products, 
     technologies, models, and other tools to improve 
     understanding and forecasting of regional and local climate 
     variability and change and the effects on economic 
     activities, natural resources, and water availability, and 
     other effects on communities, to facilitate development of 
     regional and local adaptation plans to respond to climate 
     variability and change, and any other needed research 
     identified by the Under Secretary or the Advisory Committee.
       (D) Other offices.--In carrying out the functions of the 
     Climate Service Program, the Under Secretary shall utilize 
     the assets and expertise of--
       (i) the National Weather Service to--

       (I) deliver operational weather and climate forecasts, 
     warnings, products, and information through the Climate 
     Service Programs Division, Local Weather Forecast Offices, 
     Weather Service Offices, and River Forecast Centers; and
       (II) develop climate forecast models and tools through the 
     National Centers for Environmental Prediction;

       (ii) the National Environmental Satellite, Data, and 
     Information Service to provide data services and support for 
     product development and operations through the National 
     Climatic Data Center and the Regional Climate Centers;
       (iii) the Office of Oceanic and Atmospheric Research to--

       (I) provide research on product development;
       (II) improve weather and climate forecast models;
       (III) provide new technologies and methods of observation; 
     and
       (IV) oversee the National Oceanic and Atmospheric 
     Administration supported research performed by the Joint 
     Cooperative Institutes, universities, and other non-Federal 
     entities;

       (iv) the National Integrated Drought Information System 
     to--

       (I) provide an effective drought warning system;
       (II) coordinate and integrate Federal research on droughts;
       (III) collect and integrate information on key indicators 
     of drought;
       (IV) make usable, reliable, and timely forecasts and 
     assessments of drought, including assessments of the severity 
     of drought conditions and effects;
       (V) communicate drought forecasts, conditions, and effects 
     to Federal, State, tribal, and local governments, regional 
     entities, the private sector, and the public; and
       (VI) coordinate with State Climate Offices and RISA teams 
     to assess management practices and technologies, and the 
     effects of both, used for drought mitigation at the local, 
     State, and regional levels; and

       (v) any other National Oceanic and Atmospheric 
     Administration offices or programs, as appropriate.
       (E) Mission.--The Under Secretary shall ensure that the 
     core functions and missions of the National Weather Service, 
     the National Integrated Drought Information System, and any 
     other programs within the National Oceanic and Atmospheric 
     Administration are not diminished or neglected by the 
     establishment of the Climate Service Program or the duties 
     imposed on such offices or programs under this paragraph.
       (F) Program elements.--The Climate Service Program shall--
       (i) conduct analyses of and studies relating to the effects 
     of weather and climate on communities, including effects on 
     agricultural production, natural resources, energy supply and 
     demand, recreation, and other sectors of the economy;
       (ii) carry out observations, data collection, and 
     monitoring of atmospheric and oceanic conditions on a 
     statewide, regional, national, and global basis;
       (iii) provide information and technical support for 
     Federal, regional, State, tribal, and local government 
     efforts to assess and respond to climate variability and 
     change;
       (iv) develop systems for the management and dissemination 
     of data, information, and assessments, including mechanisms 
     for consultation with current and potential users and other 
     stakeholders;
       (v) conduct research to improve forecasting, 
     characterization, and understanding of weather and climate 
     variability and change and its effects on communities, 
     including its effects on agricultural production, natural 
     resources, energy supply and demand, recreation, and other 
     sectors of the economy; and
       (vi) develop tools to facilitate the use of climate 
     information by local and regional stakeholders.
       (f) Climate Service Advisory Committee.--
       (1) In general.--The Under Secretary shall establish a 
     Climate Service Advisory Committee to provide advice on--
       (A) climate service product development;
       (B) delivery of services to decisionmakers and other 
     stakeholders;
       (C) infrastructure to support observations and monitoring;
       (D) computation and modeling needs, research needs, and 
     other resources needed to develop, distribute, and ensure the 
     utility of climate data, products, and services; and
       (E) any other topics as may be requested by the Under 
     Secretary or Congress.
       (2) Members.--
       (A) In general.--The Advisory Committee shall be composed 
     of at least 25 members appointed by the Under Secretary. Each 
     member of the Advisory Committee shall be qualified either--
       (i) by education, training, and experience to evaluate 
     scientific and technical information on matters referred to 
     the Advisory Committee under this subsection; or
       (ii) to evaluate the utility and need for climate products 
     by planners, decisionmakers, the private sector, and the 
     public.
       (B) Terms of service.--Members shall be appointed for 3-
     year terms, renewable once, and shall serve at the discretion 
     of the Under Secretary. Vacancy appointments shall be for the 
     remainder of the unexpired term of the vacancy, and an 
     individual so appointed may subsequently be appointed for 2 
     full 3-year terms if the remainder of the unexpired term is 
     less than one year.
       (C) Chairperson.--The Under Secretary shall designate a 
     chairperson from among the members of the Advisory Committee. 
     The designated Chairperson shall alternate between a member 
     who is appointed as a representative and a member who is 
     appointed as a Special Government Employee.
       (D) Subcommittees.--
       (i) Establishment.--The Advisory Committee shall 
     establish--

       (I) a Subcommittee on Science and Technology to advise the 
     Climate Service Program on needed research, technology 
     development, and additional observations, and on any other 
     scientific or technical issues as appropriate; and
       (II) a Subcommittee on Product Development and Delivery 
     composed primarily of representatives of the community of 
     potential users of the products developed and delivered by 
     the Climate Service Program.

     The Advisory Committee may establish such additional 
     subcommittees of its members as may be necessary.
       (ii) Appointment.--

       (I) Full advisory committee.--At least 50 percent of the 
     members of the Advisory Committee shall be appointed as 
     Special Government Employees.
       (II) Subcommittees.--At least 75 percent of the members of 
     the Subcommittee on Science and Technology shall be appointed 
     as Special Government Employees. Not more than 25 percent of 
     the members of the Subcommittee on Product Development and 
     Delivery shall be appointed as Special Government Employees.

       (3) Administrative provisions.--
       (A) Reporting.--The Advisory Committee shall report to the 
     Under Secretary and the appropriate requesting party.
       (B) Administrative support.--The Under Secretary shall 
     provide administrative support to the Advisory Committee.
       (C) Meetings.--The Advisory Committee shall meet at least 
     twice each year and at other times at the call of the Under 
     Secretary or the Chairperson.
       (D) Compensation and expenses.--A member of the Advisory 
     Committee shall not be compensated for service on the 
     Advisory Committee, but may be allowed travel expenses, 
     including per diem in lieu of subsistence, in accordance with 
     subchapter I of chapter 57 of title 5, United States Code.
       (4) Expiration.--Section 14 of the Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the Climate 
     Service Advisory Committee.
       (g) Repeal.--The National Climate Program Act (15 U.S.C. 
     2901 et seq.) is repealed.
       (h) Establishment of Regional Integrated Sciences and 
     Assessments Teams.--
       (1) In general.--In maintaining the network of Regional 
     Integrated Sciences and Assessments (RISA) Teams under 
     subsection (e)(3)(C), the Under Secretary shall utilize a 
     competitive, peer-reviewed selection process. Teams shall 
     conduct applied regional climate research and projects to 
     address the needs of local and regional decisionmakers for 
     information and tools to develop adaptation and response 
     plans to climate variability and change. The awards shall be 
     administered through a cooperative agreement between the 
     National Oceanic and Atmospheric Administration and the RISA 
     Team. Each award shall be for a period of five years.

[[Page 16653]]

       (2) RISA teams.--Teams shall be composed of multi-
     institutional partnerships whose individual members may 
     include--
       (A) institutions of higher education, as defined in section 
     101(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1001(a));
       (B) minority serving institutions, as defined in section 
     371(a) of the Higher Education Act of 1965; and
       (C) nongovernmental research organizations, Federal 
     agencies, State and local agencies, tribal organizations, and 
     for-profit entities.
       (3) Considerations.--In making awards under this 
     subsection, the Under Secretary shall consider--
       (A) the overall geographic distribution of RISA Teams and 
     existing gaps in applied research to support local and 
     regional decisionmakers;
       (B) the team's ability to contribute to the National 
     Oceanic and Atmospheric Administration's efforts to deliver 
     climate services in the region; and
       (C) the team's proposal to integrate social and physical 
     sciences research to address the effects of climate 
     variability and change on the ecology, economy, 
     infrastructure, and communities in the region.
       (i) Survey of Need for Climate Services.--
       (1) In general.--The Under Secretary shall provide a report 
     to Congress within 9 months after the date of enactment of 
     this Act that compiles information on the current climate 
     products being delivered by the National Oceanic and 
     Atmospheric Administration and its partner organizations to 
     users and stakeholders and on the needs of users and 
     stakeholders for new climate products and services.
       (2) Contents of report.--The report shall identify--
       (A) specific user groups and stakeholders that currently 
     are served by the National Oceanic and Atmospheric 
     Administration and its partner organizations;
       (B) the type of climate products and services currently 
     delivered to specific user groups and stakeholders and the 
     specific National Oceanic and Atmospheric Administration 
     office or partner organization that delivers these products 
     and services;
       (C) potential user groups and stakeholders that may be 
     served by expanding climate products and services; and
       (D) specific needs for new climate products and services 
     identified by user groups and stakeholders.
       (3) Consultation.--The Under Secretary shall consult with 
     the Climate Service Advisory Committee in the preparation of 
     this report.
       (j) Implementation Plan.--
       (1) In general.--The Under Secretary shall prepare a plan 
     for creating a Climate Service Program in the National 
     Oceanic and Atmospheric Administration and delivering climate 
     products and services to the National Oceanic and Atmospheric 
     Administration users and stakeholders. The plan shall be 
     submitted to the President and the Congress within 1 year 
     after the date of enactment of this Act.
       (2) Draft plan.--Prior to the submission of the final plan, 
     the Under Secretary shall publish a draft plan in the Federal 
     Register with a public comment period of at least 30 days.
       (3) Contents.--The plan shall--
       (A) identify the current gaps in climate services and 
     outline the process and resources the National Oceanic and 
     Atmospheric Administration will use to fill these gaps;
       (B) describe the roles of the National Oceanic and 
     Atmospheric Administration line offices and the National 
     Oceanic and Atmospheric Administration partner organizations 
     in the development and delivery of climate products and 
     services;
       (C) describe the development and implementation of quality 
     assurance and control mechanisms for climate products and 
     services delivered by the National Oceanic and Atmospheric 
     Administration and its partner organizations;
       (D) identify the mechanisms and opportunities for 
     determining user needs and engaging in a two-way dialogue 
     with users that will inform climate product and service 
     development and delivery of authoritative, timely, and useful 
     information on climate variability and change and the effects 
     on local, State, regional, national, and global scales;
       (E) identify new responsibilities or tasks to be undertaken 
     by existing National Oceanic and Atmospheric Administration 
     line offices and partner organizations;
       (F) identify new infrastructure, equipment, personnel, or 
     other resources needed to implement the proposed plan; and
       (G) include responses to the comments received during the 
     public comment period.
       (4) Continuity of service.--During the development of the 
     implementation plan, the public comment period, and final 
     plan, the National Oceanic and Atmospheric Administration 
     shall continue to provide climate services to the user 
     community.
       (5) Consultation.--In developing the plan, the Under 
     Secretary shall consult with user groups and stakeholders, 
     State Climate Offices, Regional Climate Centers, other 
     Federal agencies, the Climate Service Advisory Committee, and 
     Congress.
       (6) Coordination with interagency development of a national 
     climate service.--In preparing the plan required under this 
     subsection, the Under Secretary shall consult with the 
     Director of the Office of Science and Technology Policy to 
     ensure that the program developed by the Agency will serve 
     the needs of a National Climate Service.
       (k) Summer Institutes Program at the Regional Climate 
     Centers.--
       (1) Definitions.--In this subsection:
       (A) Summer institute.--The term ``summer institute'' means 
     an institute, operated during the summer, that--
       (i) is hosted by a Regional Climate Center or an eligible 
     partner;
       (ii) is operated for a period of not less than 2 weeks; and
       (iii) provides direct interaction of middle school and high 
     school teacher and undergraduate student participants with 
     personnel of the Regional Climate Centers or eligible 
     partners who have scientific expertise in weather and 
     climate.
       (B) Eligible partner.--The term ``eligible partner'' 
     means--
       (i) the science, engineering, or mathematics department at 
     an institution of higher education; or
       (ii) a nonprofit entity with expertise in providing 
     educational enrichment experiences for students.
       (2) Summer institutes program authorized.--
       (A) In general.--The Under Secretary shall establish a 
     summer institutes program, to be conducted in cooperation 
     with the Regional Climate Centers, which may include an 
     eligible partner. The purpose of the program is to provide 
     training and professional enrichment by providing 
     opportunities for interaction between participants and 
     climate scientists in a research and operational setting to--
       (i) enable middle school and high school teachers to 
     integrate weather and climate sciences into their curricula: 
     and
       (ii) encourage undergraduate students to pursue further 
     study and careers in weather and climate sciences.
       (B) Required activities.--Funds authorized under this 
     subsection shall be used for--
       (i) providing educational opportunities for middle school 
     and high school teachers and undergraduate students not 
     achievable inside the classroom;
       (ii) exposing such teachers and students to researchers, 
     scientists, or engineers who can demonstrate their daily 
     activities to the teachers and students;
       (iii) exposing teachers and students to scientific methods 
     in a research discovery setting; and
       (iv) assisting teachers with curriculum development in the 
     areas of weather and climate science.
       (3) Priority.--The Under Secretary shall ensure that each 
     summer institute program authorized under paragraph (2) 
     includes students from groups underrepresented in the fields 
     of science, technology, engineering, and mathematics 
     teaching, including women and members of minority groups.
       (4) Report to congress.--The Under Secretary shall submit 
     to Congress a biennial report on the activities conducted 
     under this subsection, including the number of participants 
     and the new curricula developed in atmospheric and climate 
     sciences.
       (l) Clearinghouse of Federal Climate Service Products and 
     Links to Federal Agencies Providing Climate Services.--
       (1) In general.--The Under Secretary shall establish and 
     maintain a clearinghouse to inform State, local, and tribal 
     governments and the public about the information and services 
     available to--
       (A) assess the impacts of climate variability and change at 
     different geographic scales;
       (B) characterize and forecast climate variability and 
     change for specific regions, resources, and economic sectors; 
     and
       (C) develop and implement adaptation strategies to reduce 
     vulnerabilities to climate variability and change.
       (2) Other resources.--The clearinghouse shall include 
     hyperlinks to Internet sites that describe the activities, 
     information, and resources of--
       (A) the Federal Government;
       (B) State and local governments;
       (C) the private sector;
       (D) nongovernmental and nonprofit entities and 
     organizations; and
       (E) international organizations.
       (m) Financial Burden.--Nothing in this section shall be 
     construed as authorizing the National Climate Service or the 
     Climate Service Program at the National Oceanic and 
     Atmospheric Administration to require State, tribal, or local 
     governments to develop adaptation or response plans or to 
     take any other action in response to variations in climate 
     that may result in an increased financial burden to such 
     governments.

     SEC. 453. STATE PROGRAMS TO BUILD RESILIENCE TO CLIMATE 
                   CHANGE IMPACTS.

       (a) Definitions.--For purposes of this section:
       (1) Allowance.--The term ``allowance'' means an emission 
     allowance established under section 721 of the Clean Air Act 
     (as added by section 311 of this Act).
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4

[[Page 16654]]

     of the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (3) Vintage year.--The term ``vintage year'' has the 
     meaning given that term under section 700 of the Clean Air 
     Act (as added by section 312 of this Act).
       (b) Regulations; Coordination.--Not later than 2 years 
     after the date of enactment of this Act, the Administrator, 
     or such Federal agency head or heads as the President may 
     designate, shall promulgate regulations to implement the 
     requirements of this section. If the President designates 
     more than 1 Federal agency to implement this section, the 
     President shall require such agencies to establish a 
     memorandum of understanding providing for coordination of 
     rulemaking and other implementing activities, in accordance 
     with the requirements of this section.
       (c) Distribution of Allowances.--
       (1) In general.--Not later than September 30 of each of 
     calendar years 2011 through 2049, the Administrator shall 
     distribute, in accordance with this section, allowances 
     allocated for the following vintage year pursuant to section 
     782(l) of the Clean Air Act (as added by section 321 of this 
     Act). The Administrator shall reserve 1 percent of such 
     allowances for distribution to Indian tribes in accordance 
     with subsection (d). The remainder of such allowances shall 
     be distributed ratably among the States based on the product 
     of--
       (A) each State's population; and
       (B) each State's allocation factor as determined under 
     paragraph (2).
       (2) State allocation factors.--
       (A) In general.--Except as provided in subparagraph (B), 
     the allocation factor for a State shall be the quotient of--
       (i) the per capita income of all individuals in the United 
     States, divided by
       (ii) the per capita income of all individuals in such 
     State.
       (B) Limitation.--If the allocation factor for a State as 
     calculated under subparagraph (A) would exceed 1.2, then the 
     allocation factor for such State shall be 1.2. If the 
     allocation factor for a State as calculated under 
     subparagraph (A) would be less than 0.8, then the allocation 
     factor for such State shall be 0.8.
       (C) Per capita income.--For purposes of this paragraph, per 
     capita income shall be--
       (i) determined at 2-year intervals; and
       (ii) subject to subparagraph (D), equal to the average of 
     the annual per capita incomes for the most recent period of 3 
     consecutive years for which satisfactory data are available 
     from the Department of Commerce at the time such 
     determination is made.
       (D) Revenue directly resulting from a presidentially 
     declared major disaster.--For purposes of this paragraph, per 
     capita income from one or more of the following sources shall 
     be reduced or excluded if the Secretary of Commerce (in 
     consultation with the Administrator and the secretaries or 
     administrators of the departments or agencies involved) 
     determines that the income accrues to persons as the result 
     of a Major Disaster (as declared by the President of the 
     United States) and if the Secretary finds that the inclusion 
     of one or more of these income sources, in whole or in part, 
     results in a transitory, rather than a sustainable, increase 
     in a State's per capita income level relative to the national 
     average:
       (i) Property and casualty insurance (including homeowners 
     and renters insurance).
       (ii) The National Flood Insurance Program of the Federal 
     Emergency Management Agency.
       (iii) The Individual and Family Grants Program of the 
     Federal Emergency Management Agency.
       (iv) The Disaster Housing Program of the Federal Emergency 
     Management Agency.
       (v) The Community Development Block Grant Program of the 
     Department of Housing and Urban Development.
       (vi) The Disaster Unemployment Assistance Program of the 
     Department of Labor.
       (vii) Any other source determined appropriate by the 
     Administrator.
       (d) Distribution to Indian Tribes.--The Administrator, or 
     such Federal agency head or heads as the President may 
     designate, shall promulgate regulations establishing a 
     program to distribute allowances on a competitive basis to 
     Indian tribes, in accordance with the requirements of this 
     section. Such allowances shall be used exclusively in 
     accordance with the requirements of subsection (e). Beginning 
     with vintage year 2015, Indian tribes with a tribal 
     adaptation plan approved pursuant to subsection (f) shall be 
     given priority in selection of programs or projects for 
     receipt of emission allowances under this subsection.
       (e) Use of Allowances.--
       (1) In general.--States and Indian tribes shall use 
     allowances distributed under this section exclusively for the 
     implementation of projects, programs, or measures to build 
     resilience to the impacts of climate change, including--
       (A) extreme weather events such as flooding and tropical 
     cyclones;
       (B) more frequent heavy precipitation events;
       (C) water scarcity and adverse impacts on water quality;
       (D) stronger and longer heat waves;
       (E) more frequent and severe droughts;
       (F) rises in sea level;
       (G) ecosystem disruption;
       (H) increased air pollution; and
       (I) effects on public health.
       (2) Priority in projects to reduce flood events.--When 
     implementing any project, program, or measure supported under 
     this section and designed to reduce flood events, a State or 
     Indian tribe should consider prioritizing projects that seek 
     to--
       (A) mitigate the destructive impacts of climate-related 
     increases in the duration, frequency, or magnitude of 
     rainfall or runoff, including snowmelt runoff, as well as 
     hurricanes;
       (B) improve flood protection for densely populated urban 
     areas; and
       (C) mitigate the destructive impact of ocean-related 
     climate change effects, including effects on bays, estuaries, 
     populated barrier islands and other ocean-related features, 
     through a variety of means and measures, including the 
     construction of jetties, levies, and other coastal structures 
     in densely populated coastal areas impacted by climate 
     change.
       (3) State and tribal adaptation plans.--Upon approval of a 
     State or tribal climate adaptation plan under subsection (f), 
     allowances received by a State under this section shall be 
     used in accordance with such plan.
       (4) Supplement, not supplant.--It is the intent of the 
     Congress that allowances distributed to carry out this 
     section should be used to supplement, and not replace, 
     existing sources of funding used to build resilience to the 
     impacts of climate change identified in paragraph (1).
       (5) Research on hurricanes.--The authorized uses of 
     allowances under this section shall include establishment of 
     projects or programs to conduct research and monitoring on 
     the effect of ongoing climate change on the frequency and 
     intensity of hurricanes.

       (f) State and Tribal Climate Adaptation Plans.--
       (1) In general.--The regulations promulgated pursuant to 
     subsection (b) shall include requirements for submission and 
     approval of State or tribal climate adaptation plans under 
     this section. Beginning with vintage year 2015, distribution 
     of allowances to a State pursuant to this section shall be 
     contingent on approval of a State climate adaptation plan for 
     such State that meets the requirements of such regulations. 
     Requirements for tribal climate adaptation plans may vary 
     from those of State adaptation plans to the extent necessary 
     to account for the special circumstances of Indian tribes.
       (2) Requirements.--Regulations promulgated under this 
     section shall require, at minimum, that State and tribal 
     climate adaptation plans--
       (A) assess and prioritize the State's or Indian tribe's 
     vulnerability to a broad range of impacts of climate change, 
     based on the best available science;
       (B) include an assessment of potential for carbon reduction 
     through changes to land management policies (including 
     enhancement or protection of forest carbon sinks);
       (C) identify and prioritize specific cost-effective 
     projects, programs, and measures to build resilience to 
     current and predicted impacts of climate change;
       (D) ensure that the State or Indian tribe fully considers 
     and undertakes, to the maximum extent practicable, 
     initiatives that--
       (i) protect or enhance natural ecosystem functions, 
     including protection, maintenance, or restoration of natural 
     infrastructure such as wetlands, reefs, and barrier islands 
     to buffer communities from floodwaters or storms, watershed 
     protection to maintain water quality and groundwater 
     recharge, or floodplain restoration to improve natural flood 
     control capacity; or
       (ii) use non-structural approaches including practices that 
     utilize, enhance, or mimic the natural hydrologic cycle 
     processes of infiltration, evapotranspiration, and reuse;
       (E) be revised and resubmitted for approval not less 
     frequently than every 5 years; and
       (F) be consistent with Federal conservation and 
     environmental laws and, to the maximum extent practicable, 
     avoid environmental degradation.
       (3) Coordination with prior planning efforts.--In 
     implementing this subsection, the Administrator, or such 
     Federal agency head or heads as the President may designate, 
     shall--
       (A) draw upon lessons learned and best practices from 
     preexisting State and tribal climate adaptation planning 
     efforts;
       (B) seek to avoid duplication of such efforts; and
       (C) ensure that the plans developed under this section 
     reflect and are fully consistent with State natural resources 
     adaptation plans developed under section 479 of this Act.
       (g) Reporting.--Each State or Indian tribe receiving 
     allowances under this section shall submit to the 
     Administrator, or such Federal agency head or heads as the 
     President may designate, within 12 months after each receipt 
     of such allowances and once every 2 years thereafter until 
     the value of any allowances received under this section has 
     been fully expended, a report that--
       (1) provides a full accounting for the State's or Indian 
     tribe's use of allowances distributed under this section, 
     including a description of the projects, programs, or 
     measures supported using such allowances;

[[Page 16655]]

       (2) includes a report prepared by an independent third 
     party, in accordance with such regulations as are promulgated 
     by the Administrator or such other Federal agency head or 
     heads as the President may designate, evaluating the 
     performance of the projects, programs, or measures supported 
     under this section; and
       (3) identifies any use by the State or Indian tribe of 
     allowances distributed under this section for the reduction 
     of flood and storm damage and the effects of climate change 
     on water and flood protection infrastructure.
       (h) Enforcement.--If the Administrator, or such Federal 
     agency head or heads as the President may designate, 
     determines that a State or Indian tribe is not in compliance 
     with this section, the Administrator or such other agency 
     head may withhold a quantity of the allowances equal to up to 
     twice the quantity of allowances that the State or Indian 
     tribe failed to use in accordance with the requirements of 
     this section, that such State or Indian tribe would otherwise 
     be eligible to receive under this section in 1 or more later 
     years. Allowances withheld pursuant to this subsection shall 
     be distributed among the remaining States or Indian tribes 
     ratably in accordance with the formula in subsection (c) in 
     the case of allowances withheld from a State, or in 
     accordance with subsection (d) in the case of allowances 
     withheld from an Indian tribe.

              Subpart B--Public Health and Climate Change

     SEC. 461. SENSE OF CONGRESS ON PUBLIC HEALTH AND CLIMATE 
                   CHANGE.

       It is the sense of the Congress that the Federal 
     Government, in cooperation with international, State, tribal, 
     and local governments, concerned public and private 
     organizations, and citizens, should use all practicable means 
     and measures--
       (1) to assist the efforts of public health and health care 
     professionals, first responders, States, tribes, 
     municipalities, and local communities to incorporate measures 
     to prepare health systems to respond to the impacts of 
     climate change;
       (2) to ensure--
       (A) that the Nation's health professionals have sufficient 
     information to prepare for and respond to the adverse health 
     impacts of climate change;
       (B) the utility and value of scientific research in 
     advancing understanding of--
       (i) the health impacts of climate change; and
       (ii) strategies to prepare for and respond to the health 
     impacts of climate change;
       (C) the identification of communities vulnerable to the 
     health effects of climate change and the development of 
     strategic response plans to be carried out by health 
     professionals for those communities;
       (D) the improvement of health status and health equity 
     through efforts to prepare for and respond to climate change; 
     and
       (E) the inclusion of health policy in the development of 
     climate change responses;
       (3) to encourage further research, interdisciplinary 
     partnership, and collaboration among stakeholders in order 
     to--
       (A) understand and monitor the health impacts of climate 
     change; and
       (B) improve public health knowledge and response strategies 
     to climate change;
       (4) to enhance preparedness activities, and public health 
     infrastructure, relating to climate change and health;
       (5) to encourage each and every American to learn about the 
     impacts of climate change on health; and
       (6) to assist the efforts of developing nations to 
     incorporate measures to prepare health systems to respond to 
     the impacts of climate change.

     SEC. 462. RELATIONSHIP TO OTHER LAWS.

       Nothing in this subpart in any manner limits the authority 
     provided to or responsibility conferred on any Federal 
     department or agency by any provision of any law (including 
     regulations) or authorizes any violation of any provision of 
     any law (including regulations), including any health, 
     energy, environmental, transportation, or any other law or 
     regulation.

     SEC. 463. NATIONAL STRATEGIC ACTION PLAN.

       (a) Requirement.--
       (1) In general.--The Secretary of Health and Human 
     Services, within 2 years after the date of the enactment of 
     this Act, on the basis of the best available science, and in 
     consultation pursuant to paragraph (2), shall publish a 
     strategic action plan to assist health professionals in 
     preparing for and responding to the impacts of climate change 
     on public health in the United States and other nations, 
     particularly developing nations.
       (2) Consultation.--In developing or making any revision to 
     the national strategic action plan, the Secretary shall--
       (A) consult with the Director of the Centers for Disease 
     Control and Prevention, the Administrator of the 
     Environmental Protection Agency, the Director of the National 
     Institutes of Health, the Secretary of Energy, other 
     appropriate Federal agencies, Indian tribes, State and local 
     governments, public health organizations, scientists, and 
     other interested stakeholders; and
       (B) provide opportunity for public input.
       (b) Contents.--
       (1) In general.--The Secretary, acting through the Director 
     of the Centers for Disease Control and Prevention and other 
     appropriate Federal agencies, shall assist health 
     professionals in preparing for and responding effectively and 
     efficiently to the health effects of climate change through 
     measures including--
       (A) developing, improving, integrating, and maintaining 
     domestic and international disease surveillance systems and 
     monitoring capacity to respond to health-related effects of 
     climate change, including on topics addressing--
       (i) water, food, and vector borne infectious diseases and 
     climate change;
       (ii) pulmonary effects, including responses to 
     aeroallergens;
       (iii) cardiovascular effects, including impacts of 
     temperature extremes;
       (iv) air pollution health effects, including heightened 
     sensitivity to air pollution;
       (v) hazardous algal blooms;
       (vi) mental and behavioral health impacts of climate 
     change;
       (vii) the health of refugees, displaced persons, and 
     vulnerable communities;
       (viii) the implications for communities vulnerable to 
     health effects of climate change, as well as strategies for 
     responding to climate change within these communities; and
       (ix) local and community-based health interventions for 
     climate-related health impacts;
       (B) creating tools for predicting and monitoring the public 
     health effects of climate change on the international, 
     national, regional, State, and local levels, and providing 
     technical support to assist in their implementation;
       (C) developing public health communications strategies and 
     interventions for extreme weather events and disaster 
     response situations;
       (D) identifying and prioritizing communities and 
     populations vulnerable to the health effects of climate 
     change, and determining actions and communication strategies 
     that should be taken to inform and protect these communities 
     and populations from the health effects of climate change;
       (E) developing health communication, public education, and 
     outreach programs aimed at public health and health care 
     professionals, as well as the general public, to promote 
     preparedness and response strategies relating to climate 
     change and public health, including the identification of 
     greenhouse gas reduction behaviors that are health-promoting; 
     and
       (F) developing academic and regional centers of excellence 
     devoted to--
       (i) researching relationships between climate change and 
     health;
       (ii) expanding and training the public health workforce to 
     strengthen the capacity of such workforce to respond to and 
     prepare for the health effects of climate change;
       (iii) creating and supporting academic fellowships focusing 
     on the health effects of climate change; and
       (iv) training senior health ministry officials from 
     developing nations to strengthen the capacity of such nations 
     to--

       (I) prepare for and respond to the health effects of 
     climate change; and
       (II) build an international network of public health 
     professionals with the necessary climate change knowledge 
     base;

       (G) using techniques, including health impact assessments, 
     to assess various climate change public health preparedness 
     and response strategies on international, national, State, 
     regional, tribal, and local levels, and make recommendations 
     as to those strategies that best protect the public health;
       (H)(i) assisting in the development, implementation, and 
     support of State, regional, tribal, and local preparedness, 
     communication, and response plans (including with respect to 
     the health departments of such entities) to anticipate and 
     reduce the health threats of climate change; and
       (ii) pursuing collaborative efforts to develop, integrate, 
     and implement such plans;
       (I) creating a program to advance research as it relates to 
     the effects of climate change on public health across Federal 
     agencies, including research to--
       (i) identify and assess climate change health effects 
     preparedness and response strategies;
       (ii) prioritize critical public health infrastructure 
     projects related to potential climate change impacts that 
     affect public health; and
       (iii) coordinate preparedness for climate change health 
     impacts, including the development of modeling and 
     forecasting tools;
       (J) providing technical assistance for the development, 
     implementation, and support of preparedness and response 
     plans to anticipate and reduce the health threats of climate 
     change in developing nations; and
       (K) carrying out other activities determined appropriate by 
     the Secretary to plan for and respond to the impacts of 
     climate change on public health.
       (c) Revision.--The Secretary shall revise the national 
     strategic action plan not later than July 1, 2014, and every 
     4 years thereafter, to reflect new information collected 
     pursuant to implementation of the national strategic action 
     plan and otherwise, including information on--

[[Page 16656]]

       (1) the status of critical environmental health parameters 
     and related human health impacts;
       (2) the impacts of climate change on public health; and
       (3) advances in the development of strategies for preparing 
     for and responding to the impacts of climate change on public 
     health.
       (d) Implementation.--
       (1) Implementation through hhs.--The Secretary shall 
     exercise the Secretary's authority under this subpart and 
     other provisions of Federal law to achieve the goals and 
     measures of the national strategic action plan.
       (2) Other public health programs and initiatives.--The 
     Secretary and Federal officials of other relevant Federal 
     agencies shall administer public health programs and 
     initiatives authorized by provisions of law other than this 
     subpart, subject to the requirements of such statutes, in a 
     manner designed to achieve the goals of the national 
     strategic action plan.
       (3) CDC.--In furtherance of the national strategic action 
     plan, the Secretary, acting through the Director of the 
     Centers for Disease Control and Prevention and the head of 
     any other appropriate Federal agency, shall--
       (A) conduct scientific research to assist health 
     professionals in preparing for and responding to the impacts 
     of climate change on public health; and
       (B) provide funding for--
       (i) research on the health effects of climate change; and
       (ii) preparedness planning on the international, national, 
     State, tribal, regional, and local levels to respond to or 
     reduce the burden of health effects of climate change; and
       (C) carry out other activities determined appropriate by 
     the Director or the head of such agency to prepare for and 
     respond to the impacts of climate change on public health.

     SEC. 464. ADVISORY BOARD.

       (a) Establishment.--The Secretary shall establish a 
     permanent science advisory board comprised of not less than 
     10 and not more than 20 members.
       (b) Appointment of Members.--The Secretary shall appoint 
     the members of the science advisory board from among 
     individuals--
       (1) who have expertise in public health and human services, 
     climate change, and other relevant disciplines; and
       (2) at least \1/2\ of whom are recommended by the President 
     of the National Academy of Sciences.
       (c) Functions.--The science advisory board shall--
       (1) provide scientific and technical advice and 
     recommendations to the Secretary on the domestic and 
     international impacts of climate change on public health, 
     populations and regions particularly vulnerable to the 
     effects of climate change, and strategies and mechanisms to 
     prepare for and respond to the impacts of climate change on 
     public health; and
       (2) advise the Secretary regarding the best science 
     available for purposes of issuing the national strategic 
     action plan.

     SEC. 465. REPORTS.

       (a) Needs Assessment.--
       (1) In general.--The Secretary shall seek to enter into, by 
     not later than 6 months after the date of the enactment of 
     this Act, an agreement with the National Research Council and 
     the Institute of Medicine to complete a report that--
       (A) assesses the needs for health professionals to prepare 
     for and respond to climate change impacts on public health; 
     and
       (B) recommends programs to meet those needs.
       (2) Submission.--The agreement under paragraph (1) shall 
     require the completed report to be submitted to the Congress 
     and the Secretary and made publicly available not later than 
     1 year after the date of the agreement.
       (b) Climate Change Health Protection and Promotion 
     Reports.--
       (1) In general.--The Secretary, in consultation with the 
     advisory board established under section 464, shall ensure 
     the issuance of reports to aid health professionals in 
     preparing for and responding to the adverse health effects of 
     climate change that--
       (A) review scientific developments on health impacts of 
     climate change; and
       (B) recommend changes to the national strategic action 
     plan.
       (2) Submission.--The Secretary shall submit the reports 
     required by paragraph (1) to the Congress and make such 
     reports publicly available not later than July 1, 2013, and 
     every 4 years thereafter.

     SEC. 466. DEFINITIONS.

       In this subpart:
       (1) Health impact assessment.--The term ``health impact 
     assessment'' means a combination of procedures, methods, and 
     tools by which a policy, program, or project may be judged as 
     to its potential effects on the health of a population, and 
     the distribution of those effects within the population.
       (2) National strategic action plan.--The term ``national 
     strategic action plan'' means the plan issued and revised 
     under section 463.
       (3) Secretary.--Unless otherwise specified, the term 
     ``Secretary'' means the Secretary of Health and Human 
     Services.

     SEC. 467. CLIMATE CHANGE HEALTH PROTECTION AND PROMOTION 
                   FUND.

       (a) Establishment of Fund.--Subject to subtitle F of title 
     IV, there is hereby established in the Treasury a separate 
     account that shall be known as the Climate Change Health 
     Protection and Promotion Fund.
       (b) Availability of Amounts.--Subject to Subtitle F of 
     title IV, all amounts deposited into the Climate Change 
     Health Protection and Promotion Fund shall be available to 
     the Secretary to carry out this subpart subject to further 
     appropriation.
       (c) Distribution of Funds by HHS.--In carrying out this 
     subpart, the Secretary may make funds deposited in the 
     Climate Change Health Protection and Promotion Fund available 
     to--
       (1) other departments, agencies, and offices of the Federal 
     Government;
       (2) foreign, State, tribal, and local governments; and
       (3) such other entities as the Secretary determines 
     appropriate.
       (d) Supplement, Not Replace.--It is the intent of Congress 
     that funds made available to carry out this subpart should be 
     used to supplement, and not replace, existing sources of 
     funding for public health.

                 Subpart C--Natural Resource Adaptation

     SEC. 471. PURPOSES.

       The purposes of this subpart are to--
       (1) establish an integrated Federal program to protect, 
     restore, and conserve the Nation's natural resources in 
     response to the threats of climate change and ocean 
     acidification; and
       (2) provide financial support and incentives for programs, 
     strategies, and activities that protect, restore, and 
     conserve the Nation's natural resources in response to the 
     threats of climate change and ocean acidification.

     SEC. 472. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION POLICY.

       It is the policy of the Federal Government, in cooperation 
     with State and local governments, Indian tribes, and other 
     interested stakeholders to use all practicable means and 
     measures to protect, restore, and conserve natural resources 
     to enable them to become more resilient, adapt to, and 
     withstand the impacts of climate change and ocean 
     acidification.

     SEC. 473. DEFINITIONS.

       In this subpart:
       (1) Coastal state.--The term ``coastal State'' has the 
     meaning given the term in section 304 of the Coastal Zone 
     Management Act of 1972 (16 U.S.C. 1453).
       (2) Corridors.--The term ``corridors'' means areas that 
     provide connectivity, over different time scales (including 
     seasonal or longer), of habitat or potential habitat and that 
     facilitate the ability of terrestrial, marine, estuarine, and 
     freshwater fish, wildlife, or plants to move within a 
     landscape as needed for migration, gene flow, or dispersal, 
     or in response to the impacts of climate change and ocean 
     acidification or other impacts.
       (3) Ecological processes.--The term ``ecological 
     processes'' means biological, chemical, or physical 
     interaction between the biotic and abiotic components of an 
     ecosystem and includes--
       (A) nutrient cycling;
       (B) pollination;
       (C) predator-prey relationships;
       (D) soil formation;
       (E) gene flow;
       (F) disease epizootiology;
       (G) larval dispersal and settlement;
       (H) hydrological cycling;
       (I) decomposition; and
       (J) disturbance regimes such as fire and flooding.
       (4) Habitat.--The term ``habitat'' means the physical, 
     chemical, and biological properties that are used by fish, 
     wildlife, or plants for growth, reproduction, survival, food, 
     water, and cover, on a tract of land, in a body of water, or 
     in an area or region.
       (5) 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).
       (6) Natural resources.--The term ``natural resources'' 
     means the terrestrial, freshwater, estuarine, and marine 
     fish, wildlife, plants, land, water, habitats, and ecosystems 
     of the United States.
       (7) Natural resources adaptation.--The term ``natural 
     resources adaptation'' means the protection, restoration, and 
     conservation of natural resources to enable them to become 
     more resilient, adapt to, and withstand the impacts of 
     climate change and ocean acidification.
       (8) Resilience.--Each of the terms ``resilience'' and 
     ``resilient'' means the ability to resist or recover from 
     disturbance and preserve diversity, productivity, and 
     sustainability.
       (9) State.--The term ``State'' means--
       (A) a State of the United States;
       (B) the District of Columbia; and
       (C) the Commonwealth of Puerto Rico, Guam, the United 
     States Virgin Islands, the Northern Mariana Islands, and 
     American Samoa.

     SEC. 474. COUNCIL ON ENVIRONMENTAL QUALITY.

       The Chair of the Council on Environmental Quality shall--

[[Page 16657]]

       (1) advise the President on implementation and development 
     of--
       (A) a Natural Resources Climate Change Adaptation Strategy 
     required under section 476; and
       (B) Federal natural resource agency adaptation plans 
     required under section 478;
       (2) serve as the Chair of the Natural Resources Climate 
     Change Adaptation Panel established under section 475; and
       (3) coordinate Federal agency strategies, plans, programs, 
     and activities related to protecting, restoring, and 
     maintaining natural resources to become more resilient, adapt 
     to, and withstand the impacts of climate change and ocean 
     acidification.

     SEC. 475. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION PANEL.

       (a) Establishment.--Not later than 90 days after the date 
     of the enactment of this subpart, the President shall 
     establish a Natural Resources Climate Change Adaptation 
     Panel, consisting of--
       (1) the head, or their designee, of each of--
       (A) the National Oceanic and Atmospheric Administration;
       (B) the Forest Service;
       (C) the National Park Service;
       (D) the United States Fish and Wildlife Service;
       (E) the Bureau of Land Management;
       (F) the United States Geological Survey;
       (G) the Bureau of Reclamation;
       (H) the Bureau of Indian Affairs;
       (I) the Environmental Protection Agency; and
       (J) the Army Corps of Engineers;
       (2) the Chair of the Council on Environmental Quality; and
       (3) the heads of such other Federal agencies or departments 
     with jurisdiction over natural resources of the United 
     States, as determined by the President.
       (b) Functions.--The Panel shall serve as a forum for 
     interagency consultation on and the coordination of the 
     development and implementation of a national Natural 
     Resources Climate Change Adaptation Strategy required under 
     section 476.
       (c) Chair.--The Chair of the Council on Environmental 
     Quality shall serve as the Chair of the Panel.

     SEC. 476. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION 
                   STRATEGY.

       (a) In General.--Not later than one year after the date of 
     the enactment of this subpart, the President, through the 
     Natural Resources Climate Change Adaptation Panel established 
     under section 475, shall develop a Natural Resources Climate 
     Change Adaptation Strategy to protect, restore, and conserve 
     natural resources to enable them to become more resilient, 
     adapt to, and withstand the impacts of climate change and 
     ocean acidification and to identify opportunities to mitigate 
     those impacts.
       (b) Development and Revision.--In developing and revising 
     the Strategy, the Panel shall--
       (1) base the strategy on the best available science;
       (2) develop the strategy in close cooperation with States 
     and Indian tribes;
       (3) coordinate with other Federal agencies as appropriate;
       (4) consult with local governments, conservation 
     organizations, scientists, and other interested stakeholders;
       (5) provide public notice and opportunity for comment; and
       (6) review and revise the Strategy every 5 years to 
     incorporate new information regarding the impacts of climate 
     change and ocean acidification on natural resources and 
     advances in the development of strategies for becoming more 
     resilient and adapting to those impacts.
       (c) Contents.--The National Resources Adaptation Strategy 
     shall include--
       (1) an assessment of the vulnerability of natural resources 
     to climate change and ocean acidification, including the 
     short-term, medium-term, long-term, cumulative, and 
     synergistic impacts;
       (2) a description of current research, observation, and 
     monitoring activities at the Federal, State, tribal, and 
     local level related to the impacts of climate change and 
     ocean acidification on natural resources, as well as 
     identification of research and data needs and priorities;
       (3) identification of natural resources that are likely to 
     have the greatest need for protection, restoration, and 
     conservation because of the adverse effects of climate change 
     and ocean acidification;
       (4) specific protocols for integrating climate change and 
     ocean acidification adaptation strategies and activities into 
     the conservation and management of natural resources by 
     Federal departments and agencies to ensure consistency across 
     agency jurisdictions and resources;
       (5) specific actions that Federal departments and agencies 
     shall take to protect, conserve, and restore natural 
     resources to become more resilient, adapt to, and withstand 
     the impacts of climate change and ocean acidification, 
     including a timeline to implement those actions;
       (6) specific mechanisms for ensuring communication and 
     coordination among Federal departments and agencies, and 
     between Federal departments and agencies and State natural 
     resource agencies, United States territories, Indian tribes, 
     private landowners, conservation organizations, and other 
     nations that share jurisdiction over natural resources with 
     the United States;
       (7) specific actions to develop and implement consistent 
     natural resources inventory and monitoring protocols through 
     interagency coordination and collaboration; and
       (8) a process for guiding the development of detailed 
     agency- and department-specific adaptation plans required 
     under section 478 to address the impacts of climate change 
     and ocean acidification on the natural resources in the 
     jurisdiction of each agency.
       (d) Implementation.--Consistent with its authorities under 
     other laws and with Federal trust responsibilities with 
     respect to Indian lands, each Federal department or agency 
     with representation on the National Resources Climate Change 
     Adaptation Panel shall consider the impacts of climate change 
     and ocean acidification and integrate the elements of the 
     strategy into agency plans, environmental reviews, programs, 
     and activities related to the conservation, restoration, and 
     management of natural resources.

     SEC. 477. NATURAL RESOURCES ADAPTATION SCIENCE AND 
                   INFORMATION.

       (a) Coordination.--Not later than 90 days after the date of 
     the enactment of this subpart, the Secretary of Commerce, 
     acting through the Administrator of the National Oceanic and 
     Atmospheric Administration, and the Secretary of the 
     Interior, acting through the Director of the United States 
     Geological Survey, shall establish a coordinated process for 
     developing and providing science and information needed to 
     assess and address the impacts of climate change and ocean 
     acidification on natural resources. The process shall be led 
     by the National Climate Change and Wildlife Science Center 
     established within the United States Geological Survey under 
     subsection (d) and the National Climate Service of the 
     National Oceanic and Atmospheric Administration.
       (b) Functions.--The Secretaries shall ensure that such 
     process avoids duplication and that the National Oceanic and 
     Atmospheric Administration and the United States Geological 
     Survey shall--
       (1) provide technical assistance to Federal departments and 
     agencies, State and local governments, Indian tribes, and 
     interested private landowners in their efforts to assess and 
     address the impacts of climate change and ocean acidification 
     on natural resources;
       (2) conduct and sponsor research and provide Federal 
     departments and agencies, State and local governments, Indian 
     tribes, and interested private landowners with research 
     products, decision and monitoring tools and information, to 
     develop strategies for assisting natural resources to become 
     more resilient, adapt to, and withstand the impacts of 
     climate change and ocean acidification; and
       (3) assist Federal departments and agencies in the 
     development of the adaptation plans required under section 
     478.
       (c) Survey.--Not later than one year after the date of 
     enactment of this subpart and every 5 years thereafter, the 
     Secretary of Commerce and the Secretary of the Interior shall 
     undertake a climate change and ocean acidification impact 
     survey that--
       (1) identifies natural resources considered likely to be 
     adversely affected by climate change and ocean acidification;
       (2) includes baseline monitoring and ongoing trend 
     analysis;
       (3) uses a stakeholder process to identify and prioritize 
     needed monitoring and research that is of greatest relevance 
     to the ongoing needs of natural resource managers to address 
     the impacts of climate change and ocean acidification; and
       (4) identifies decision tools necessary to develop 
     strategies for assisting natural resources to become more 
     resilient and adapt to and withstand the impacts of climate 
     change and ocean acidification.
       (d) National Climate Change and Wildlife Science Center.--
       (1) Establishment.--The Secretary of the Interior shall 
     establish the National Climate Change and Wildlife Science 
     Center within the United States Geological Survey.
       (2) Functions.--The Center shall, in collaboration with 
     Federal and State natural resources agencies and departments, 
     Indian tribes, universities, and other partner 
     organizations--
       (A) assess and synthesize current physical and biological 
     knowledge and prioritize scientific gaps in such knowledge in 
     order to forecast the ecological impacts of climate change on 
     fish and wildlife at the ecosystem, habitat, community, 
     population, and species levels;
       (B) develop and improve tools to identify, evaluate, and, 
     where appropriate, link scientific approaches and models for 
     forecasting the impacts of climate change and adaptation on 
     fish, wildlife, plants, and their habitats, including 
     monitoring, predictive models, vulnerability analyses, risk 
     assessments, and decision support systems to help managers 
     make informed decisions;
       (C) develop and evaluate tools to adaptively manage and 
     monitor the effects of climate change on fish and wildlife at 
     national, regional, and local scales; and
       (D) develop capacities for sharing standardized data and 
     the synthesis of such data.
       (e) Science Advisory Board.--

[[Page 16658]]

       (1) Establishment.--Not later than 180 days after the date 
     of enactment of this subpart, the Secretary of Commerce and 
     the Secretary of the Interior shall establish and appoint the 
     members of a Science Advisory Board, to be comprised of not 
     fewer than 10 and not more than 20 members--
       (A) who have expertise in fish, wildlife, plant, aquatic, 
     and coastal and marine biology, ecology, climate change, 
     ocean acidification, and other relevant scientific 
     disciplines;
       (B) who represent a balanced membership among Federal, 
     State, Indian tribes, and local representatives, 
     universities, and conservation organizations; and
       (C) at least \1/2\ of whom are recommended by the President 
     of the National Academy of Sciences.
       (2) Duties.--The Science Advisory Board shall--
       (A) advise the Secretaries on the state-of-the-science 
     regarding the impacts of climate change and ocean 
     acidification on natural resources and scientific strategies 
     and mechanisms for protecting, restoring, and conserving 
     natural resources to enable them to become more resilient, 
     adapt to, and withstand the impacts of climate change and 
     ocean acidification; and
       (B) identify and recommend priorities for ongoing research 
     needs on such issues.
       (3) Collaboration.--The Science Advisory Board shall 
     collaborate with other climate change and ecosystem research 
     entities in other Federal agencies and departments.
       (4) Availability to the public.--The advice and 
     recommendations of the Science Advisory Board shall be made 
     available to the public.

     SEC. 478. FEDERAL NATURAL RESOURCE AGENCY ADAPTATION PLANS.

       (a) Development.--Not later than 1 year after the date of 
     the development of a Natural Resources Climate Change 
     Adaptation Strategy under section 476, each department or 
     agency that has a representative on the Natural Resources 
     Climate Change Adaptation Panel established under section 475 
     shall--
       (1) complete an adaptation plan for that department or 
     agency, respectively, implementing the Natural Resources 
     Climate Change Adaptation Strategy under section 476 and 
     consistent with the Natural Resources Climate Change 
     Adaptation Policy under section 472, detailing the 
     department's or agency's current and projected efforts to 
     address the potential impacts of climate change and ocean 
     acidification on natural resources within the department's or 
     agency's jurisdiction and necessary additional actions, 
     including a timeline for implementation of those actions;
       (2) provide opportunities for review and comment on that 
     adaptation plan by the public, including in the case of a 
     plan by the Bureau of Indian Affairs, review by Indian 
     tribes; and
       (3) submit such plan to the President for approval.
       (b) Review by President and Submission to Congress.--
       (1) Review by president.--The President shall--
       (A) approve an adaptation plan submitted under subsection 
     (a)(3) if the plan meets the requirements of subsection (c) 
     and is consistent with the strategy developed under section 
     476;
       (B) decide whether to approve the plan within 60 days after 
     submission; and
       (C) if the President disapproves a plan, direct the 
     department or agency to submit a revised plan to the 
     President under subsection (a)(3) within 60 days after such 
     disapproval.
       (2) Submission to congress.--Not later than 30 days after 
     the date of approval of such adaptation plan by the 
     President, the department or agency shall submit the approved 
     plan to the Committee on Natural Resources of the House of 
     Representatives, the Committee on Energy and Natural 
     Resources of the Senate, and the committees of the House of 
     Representatives and the Senate with principal jurisdiction 
     over the department or agency.
       (c) Requirements.--Each adaptation plan shall--
       (1) establish programs for assessing the current and future 
     impacts of climate change and ocean acidification on natural 
     resources within the department's or agency's, respectively, 
     jurisdiction, including cumulative and synergistic effects, 
     and for identifying and monitoring those natural resources 
     that are likely to be adversely affected and that have need 
     for conservation;
       (2) identify and prioritize the department's or agency's 
     strategies and specific conservation actions to address the 
     current and future impacts of climate change and ocean 
     acidification on natural resources within the scope of the 
     department's or agency's jurisdiction and to develop and 
     implement strategies to protect, restore, and conserve such 
     resources to become more resilient, adapt to, and better 
     withstand those impacts, including--
       (A) the protection, restoration, and conservation of 
     terrestrial, marine, estuarine, and freshwater habitats and 
     ecosystems;
       (B) the establishment of terrestrial, marine, estuarine, 
     and freshwater habitat linkages and corridors;
       (C) the restoration and conservation of ecological 
     processes;
       (D) the protection of a broad diversity of native species 
     of fish, wildlife, and plant populations across their range; 
     and
       (E) the protection of fish, wildlife, and plant health, 
     recognizing that climate can alter the distribution and 
     ecology of parasites, pathogens, and vectors;
       (3) describe how the department or agency will integrate 
     such strategies and conservation activities into plans, 
     programs, activities, and actions of the department or 
     agency, related to the conservation and management of natural 
     resources and establish new plans, programs, activities, and 
     actions as necessary;
       (4) establish methods for assessing the effectiveness of 
     strategies and conservation actions taken to protect, 
     restore, and conserve natural resources to enable them to 
     become more resilient, adapt to, and withstand the impacts of 
     climate change and ocean acidification, and for updating 
     those strategies and actions to respond to new information 
     and changing conditions;
       (5) include a description of current and proposed 
     mechanisms to enhance cooperation and coordination of natural 
     resources adaptation efforts with other Federal agencies, 
     State and local governments, Indian tribes, and 
     nongovernmental stakeholders;
       (6) include specific written guidance to resource managers 
     to--
       (A) explain how managers are expected to address the 
     effects of climate change and ocean acidification;
       (B) identify how managers are to obtain any site-specific 
     information that may be necessary; and
       (C) reflect best practices shared among relevant agencies, 
     while also recognizing the unique missions, objectives, and 
     responsibilities of each agency; and
       (7) identify and assess data and information gaps necessary 
     to develop natural resources adaptation plans and strategies.
       (d) Implementation.--
       (1) In general.--Upon approval by the President, each 
     department or agency that serves on the Natural Resources 
     Climate Change Adaptation Panel shall implement its 
     adaptation plan through existing and new plans, policies, 
     programs, activities, and actions to the extent not 
     inconsistent with existing authority.
       (2) Consideration of impacts.--
       (A) In general.--To the maximum extent practicable and 
     consistent with applicable law, every natural resource 
     management decision made by the department or agency shall 
     consider the impacts of climate change and ocean 
     acidification on those natural resources.
       (B) Guidance.--The Council on Environmental Quality shall 
     issue guidance for Federal departments and agencies for 
     considering those impacts.
       (e) Revision and Review.--Not less than every 5 years, each 
     adaptation plan under this section shall be reviewed and 
     revised to incorporate the best available science and other 
     information regarding the impacts of climate change and ocean 
     acidification on natural resources.

     SEC. 479. STATE NATURAL RESOURCES ADAPTATION PLANS.

       (a) Requirement.--In order to be eligible for funds under 
     section 480, not later than 1 year after the development of a 
     Natural Resources Climate Change Adaptation Strategy required 
     under section 476 each State shall prepare a State natural 
     resources adaptation plan detailing the State's current and 
     projected efforts to address the potential impacts of climate 
     change and ocean acidification on natural resources and 
     coastal areas within the State's jurisdiction.
       (b) Review or Approval.--
       (1) In general.--Each State adaptation plan shall be 
     reviewed and approved or disapproved by the Secretary of the 
     Interior and, as applicable, the Secretary of Commerce. Such 
     approval shall be granted if the plan meets the requirements 
     of subsection (c) and is consistent with the Natural 
     Resources Climate Change Adaptation Strategy required under 
     section 476.
       (2) Approval or disapproval.--Within 180 days after 
     transmittal of such a plan, or a revision to such a plan, the 
     Secretary of the Interior and, as applicable, the Secretary 
     of Commerce shall approve or disapprove the plan by written 
     notice.
       (3) Resubmittal.--Within 90 days after transmittal of a 
     resubmitted adaptation plan as a result of disapproval under 
     paragraph (3), the Secretary of the Interior and, as 
     applicable, the Secretary of Commerce, shall approve or 
     disapprove the plan by written notice.
       (c) Contents.--A State natural resources adaptation plan 
     shall--
       (1) include a strategy for addressing the impacts of 
     climate change and ocean acidification on terrestrial, 
     marine, estuarine, and freshwater fish, wildlife, plants, 
     habitats, ecosystems, wildlife health, and ecological 
     processes, that--
       (A) describes the impacts of climate change and ocean 
     acidification on the diversity and health of the fish, 
     wildlife and plant populations, habitats, ecosystems, and 
     associated ecological processes;
       (B) establishes programs for monitoring the impacts of 
     climate change and ocean

[[Page 16659]]

     acidification on fish, wildlife, and plant populations, 
     habitats, ecosystems, and associated ecological processes;
       (C) describes and prioritizes proposed conservation actions 
     to assist fish, wildlife, plant populations, habitats, 
     ecosystems, and associated ecological processes in becoming 
     more resilient, adapting to, and better withstanding those 
     impacts;
       (D) includes strategies, specific conservation actions, and 
     a time frame for implementing conservation actions for fish, 
     wildlife, and plant populations, habitats, ecosystems, and 
     associated ecological processes;
       (E) establishes methods for assessing the effectiveness of 
     strategies and conservation actions taken to assist fish, 
     wildlife, and plant populations, habitats, ecosystems, and 
     associated ecological processes in becoming more resilient, 
     adapt to, and better withstand the impacts of climate changes 
     and ocean acidification and for updating those strategies and 
     actions to respond appropriately to new information or 
     changing conditions;
       (F) is incorporated into a revision of the State wildlife 
     action plan (also known as the State comprehensive wildlife 
     strategy)--
       (i) that has been submitted to the United States Fish and 
     Wildlife Service; and
       (ii) that has been approved by the Service or on which a 
     decision on approval is pending; and
       (G) is developed--
       (i) with the participation of the State fish and wildlife 
     agency, the State coastal agency, the State agency 
     responsible for administration of Land and Water Conservation 
     Fund grants, the State Forest Legacy program coordinator, and 
     other State agencies considered appropriate by the Governor 
     of such State; and
       (ii) in coordination with the Secretary of the Interior, 
     and where applicable, the Secretary of Commerce and other 
     States that share jurisdiction over natural resources with 
     the State; and
       (2) include, in the case of a coastal State, a strategy for 
     addressing the impacts of climate change and ocean 
     acidification on the coastal zone that--
       (A) identifies natural resources that are likely to be 
     impacted by climate change and ocean acidification and 
     describes those impacts;
       (B) identifies and prioritizes continuing research and data 
     collection needed to address those impacts including--
       (i) acquisition of high resolution coastal elevation and 
     nearshore bathymetry data;
       (ii) historic shoreline position maps, erosion rates, and 
     inventories of shoreline features and structures;
       (iii) measures and models of relative rates of sea level 
     rise or lake level changes, including effects on flooding, 
     storm surge, inundation, and coastal geological processes;
       (iv) habitat loss, including projected losses of coastal 
     wetlands and potentials for inland migration of natural 
     shoreline habitats;
       (v) ocean and coastal species and ecosystem migrations, and 
     changes in species population dynamics;
       (vi) changes in storm frequency, intensity, or rainfall 
     patterns;
       (vii) saltwater intrusion into coastal rivers and aquifers;
       (viii) changes in chemical or physical characteristics of 
     marine and estuarine systems;
       (ix) increased harmful algal blooms; and
       (x) spread of invasive species;
       (C) identifies and prioritizes adaptation strategies to 
     protect, restore, and conserve natural resources to enable 
     them to become more resilient, adapt to, and withstand the 
     impacts of climate change and ocean acidification, 
     including--
       (i) protection, maintenance, and restoration of 
     ecologically important coastal lands, coastal and ocean 
     ecosystems, and species biodiversity and the establishment of 
     habitat buffer zones, migration corridors, and climate 
     refugia; and
       (ii) improved planning, siting policies, and hazard 
     mitigation strategies;
       (D) establishes programs for the long-term monitoring of 
     the impacts of climate change and ocean acidification on the 
     ocean and coastal zone and to assess and adjust, when 
     necessary, such adaptive management strategies;
       (E) establishes performance measures for assessing the 
     effectiveness of adaptation strategies intended to improve 
     resilience and the ability of natural resources in the 
     coastal zone to adapt to and withstand the impacts of climate 
     change and ocean acidification and of adaptation strategies 
     intended to minimize those impacts on the coastal zone and to 
     update those strategies to respond to new information or 
     changing conditions; and
       (F) is developed with the participation of the State 
     coastal agency and other appropriate State agencies and in 
     coordination with the Secretary of Commerce and other 
     appropriate Federal agencies.
       (d) Public Input.--States shall provide for solicitation 
     and consideration of public and independent scientific input 
     in the development of their plans.
       (e) Coordination With Other Plans.--The State plan shall 
     take into consideration research and information contained 
     in, and coordinate with and integrate the goals and measures 
     identified in, as appropriate, other natural resources 
     conservation strategies, including--
       (1) the national fish habitat action plan;
       (2) plans under the North American Wetlands Conservation 
     Act (16 U.S.C. 4401 et seq.);
       (3) the Federal, State, and local partnership known as 
     ``Partners in Flight'';
       (4) federally approved coastal zone management plans under 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
     seq.);
       (5) federally approved regional fishery management plants 
     and habitat conservation activities under the Magnuson-
     Stevens Fishery Conservation and Management Act (16 U.S.C. 
     1801 et seq.);
       (6) the national coral reef action plan;
       (7) 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));
       (8) habitat conservation plans under section 10 of that Act 
     (16 U.S.C. 1539);
       (9) other Federal, State, and tribal plans for imperiled 
     species;
       (10) State or tribal hazard mitigation plans;
       (11) State or tribal water management plans; and
       (12) other State-based strategies that comprehensively 
     implement adaptation activities to remediate the effects of 
     climate change and ocean acidification on terrestrial, 
     marine, and freshwater fish, wildlife, plants, and other 
     natural resources.
       (f) Updating.--Each State plan shall be updated not less 
     than every 5 years.
       (g) Funding.--
       (1) In general.--Funds allocated to States under section 
     480 shall be used only for activities that are consistent 
     with a State natural resources adaptation plan that has been 
     approved by the Secretaries of Interior and Commerce.
       (2) Funding prior to the approval of a state plan.--Until 
     the earlier of the date that is 3 years after the date of the 
     enactment of this subpart or the date on which a State 
     receives approval for the State strategy, a State shall be 
     eligible to receive funding under section 480 for adaptation 
     activities that are--
       (A) consistent with the comprehensive wildlife strategy of 
     the State and, where appropriate, other natural resources 
     conservation strategies; and
       (B) in accordance with a workplan developed in coordination 
     with--
       (i) the Secretary of the Interior; and
       (ii) the Secretary of Commerce, for any coastal State 
     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.
       (3) Pending approval.--During the period for which approval 
     by the applicable Secretary of a State plan is pending, the 
     State may continue receiving funds under section 480 pursuant 
     to the workplan described in paragraph (2)(B).

     SEC. 480. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION FUND.

       (a) Allocations to States.--100 percent of the emission 
     allowances made available for each year to carry out this 
     subpart shall be provided to States to carry out natural 
     resources adaptation activities in accordance with State 
     natural resources adaptation plans approved under section 
     479. Specifically--
       (1) 84.4 percent shall be available to State wildlife 
     agencies in accordance with the apportionment formula 
     established under the second subsection (c) of section 4 of 
     the Pittman-Robertson Wildlife Restoration Act (16 U.S.C. 
     669c), as added by section 902(e) of H.R. 5548 as introduced 
     in the 106th Congress and enacted into law by section 1(a)(2) 
     of Public Law 106-553 (114 Stat. 2762A-119); and
       (2) 15.6 percent shall be available to State coastal 
     agencies pursuant to the formula established by the Secretary 
     of Commerce under section 306(c) of the Coastal Management 
     Act of 1972 (16 U.S.C. 1455(c)).
       (b) Establishment of Fund.--
       (1) Establishment.--Subject to Subtitle F of title IV, 
     there is hereby established in the Treasury a separate 
     account that shall be known as the Natural Resources Climate 
     Change Adaptation Fund.
       (2) Authorization of appropriations.--Subject to Subtitle F 
     of this title IV, there are authorized to be appropriated for 
     subsection (c) such sums as are deposited in the Natural 
     Resources Climate Change Fund, and the amounts appropriated 
     for subsection (c) shall be no less than the total estimated 
     annual deposits in the Natural Resources Climate Change 
     Adaptation Fund.
       (c) Allocations to Federal Agencies.--
       (1) Department of the interior.--Of the amounts made 
     available for each fiscal year to carry out this subpart--
       (A) 27.6 percent shall be allocated to the Secretary of the 
     Interior for use in funding--
       (i) natural resources adaptation activities carried out--

       (I) under endangered species, migratory species, and other 
     fish and wildlife programs administered by the National Park 
     Service, the United States Fish and Wildlife Service, the 
     Bureau of Indian Affairs, and the Bureau of Land Management;
       (II) on wildlife refuges, National Park Service land, and 
     other public land under the jurisdiction of the United States 
     Fish and

[[Page 16660]]

     Wildlife Service, the Bureau of Land Management, the Bureau 
     of Indian Affairs, or the National Park Service; or
       (III) within Federal water managed by the Bureau of 
     Reclamation and the National Park Service; and

       (ii) for the implementation of the National Fish and 
     Wildlife Habitat and Corridors Identification Program 
     pursuant to section 481;
       (B) 8.1 percent shall be allocated to the Secretary of the 
     Interior for natural resources adaptation activities carried 
     out under cooperative grant programs, including--
       (i) the cooperative endangered species conservation fund 
     authorized under section 6 of the Endangered Species Act of 
     1973 (16 U.S.C. 1535);
       (ii) programs under the North American Wetlands 
     Conservation Act (16 U.S.C. 4401 et seq.);
       (iii) the Neotropical Migratory Bird Conservation Fund 
     established by section 478(a) of the Neotropical Migratory 
     Bird Conservation Act (16 U.S.C. 6108(a));
       (iv) the Coastal Program of the United States Fish and 
     Wildlife Service;
       (v) the National Fish Habitat Action Plan;
       (vi) the Partners for Fish and Wildlife Program;
       (vii) the Landowner Incentive Program;
       (viii) the Wildlife Without Borders Program of the United 
     States Fish and Wildlife Service; and
       (ix) the Migratory Species Program and Park Flight 
     Migratory Bird Program of the National Park Service; and
       (C) 4.9 percent shall be allocated to the Secretary of the 
     Interior to provide financial assistance to Indian tribes to 
     carry out natural resources adaptation activities through the 
     Tribal Wildlife Grants Program of the United States Fish and 
     Wildlife Service and in accordance with the Indian Self-
     Determination and Educational Assistance Act (25 U.S.C. 
     450(f).
       (2) Land and water conservation fund.--
       (A) Deposits.--
       (i) In general.--Of the amounts made available for each 
     fiscal year to carry out this subpart, 19.5 percent shall be 
     deposited into 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).
       (ii) Use of deposits.-- (I) Deposits into the Land and 
     Water Conservation Fund under this paragraph shall be 
     supplemental to authorizations provided under 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.
       (II) There are authorized to be appropriated for activities 
     in this subpart such sums as are deposited in the Land and 
     Water Conservation Fund pursuant to section 480(c)(3)(A)(ii), 
     and the amounts appropriated for this paragraph shall be no 
     less than the total estimated annual deposits in the Land and 
     Water Conservation Fund.
       (B) Allocations.--Of the amounts deposited under this 
     paragraph into the Land and Water Conservation Fund--
       (i) \1/6\ shall be allocated to the Secretary of the 
     Interior and made available on a competitive basis to carry 
     out natural resources 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 their natural resources 
     adaptation plans, and to Indian tribes;
       (II) notwithstanding section 5 of that Act (16 U.S.C. 460l-
     7); and
       (III) in addition to any funds provided pursuant to annual 
     appropriations Acts, the Energy Policy Act of 2005 (42 U.S.C. 
     15801 et seq.), or any other authorization for nonadaptation 
     needs;

       (ii) \1/3\ shall be allocated to the Secretary of the 
     Interior to carry out natural resources adaptation activities 
     through the acquisition of lands and interests in land under 
     section 7 of the Land and Water Conservation Fund Act of 1965 
     (16 U.S.C. 460l-9);
       (iii) \1/6\ shall be allocated to the Secretary of 
     Agriculture and made available to the States and Indian 
     tribes to carry out natural resources 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
       (iv) \1/3\ shall be allocated to the Secretary of 
     Agriculture to carry out natural resources 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) Expenditure of funds.--In allocating funds under 
     subparagraph (B), the Secretary of the Interior and the 
     Secretary of Agriculture shall take into consideration 
     factors including--
       (i) the availability of non-Federal contributions from 
     State, local, or private sources;
       (ii) opportunities to protect fish and wildlife corridors 
     or otherwise to link or consolidate fragmented habitats;
       (iii) opportunities to reduce the risk of catastrophic 
     wildfires, drought, extreme flooding, or other climate-
     related events that are harmful to fish and wildlife and 
     people; and
       (iv) the potential for conservation of species or habitat 
     types at serious risk due to climate change, ocean 
     acidification, and other stressors.
       (3) Forest service.--Of the amounts made available for each 
     fiscal year to carry out this subpart, 8.1 percent shall be 
     allocated to the Secretary of Agriculture for use in funding 
     natural resources adaptation activities carried out on 
     national forests and national grasslands under the 
     jurisdiction of the Forest Service and for natural resource 
     adaptation activities on state and private lands carried out 
     under the Cooperative Forestry Assistance Act of 1978.
       (4) Department of commerce.--Of the amounts made available 
     for each fiscal year to carry out this subpart, 11.5 percent 
     shall be allocated to the Secretary of Commerce for use in 
     funding natural resources adaptation activities to protect, 
     maintain, and restore coastal, estuarine, and marine 
     resources, habitats, and ecosystems, including such 
     activities carried out under--
       (A) the coastal and estuarine land conservation program;
       (B) the community-based restoration program;
       (C) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
     et seq.), that are specifically designed to strengthen the 
     ability of coastal, estuarine, and marine resources, 
     habitats, and ecosystems to adapt to and withstand the 
     impacts of climate change and ocean acidification;
       (D) the Open Rivers Initiative;
       (E) the Magnuson-Stevens Fishery Conservation and 
     Management Act (16 U.S.C. 1801 et seq.);
       (F) the Marine Mammal Protection Act of 1972 (16 U.S.C. 
     1361 et seq.);
       (G) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.);
       (H) the Marine Protection, Research, and Sanctuaries Act of 
     1972 (33 U.S.C. 1401 et seq.);
       (I) the Coral Reef Conservation Act of 2000 (16 U.S.C. 6401 
     et seq.); and
       (J) the Estuary Restoration Act of 2000 (33 U.S.C. 2901 et 
     seq.).
       (5) Environmental protection agency.--Of the amounts made 
     available each fiscal year to carry out this section, 12.2 
     percent shall be allocated to the Administrator for use in 
     natural resources adaptation activities restoring and 
     protecting--
       (A) large-scale freshwater aquatic ecosystems, such as 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, Chattahoochee, and 
     Flint River System, the Connecticut River, and the 
     Yellowstone River;
       (B) large-scale estuarine ecosystems, such as Chesapeake 
     Bay, Long Island Sound, Puget Sound, the Mississippi River 
     Delta, the San Francisco Bay Delta, Narragansett Bay, and 
     Albemarle-Pamlico Sound; and
       (C) freshwater and estuarine ecosystems, watersheds, and 
     basins identified as priorities by the Administrator, working 
     in cooperation with other Federal agencies, States, Indian 
     tribes, local governments, scientists, and other conservation 
     partners.
       (6) Corps of engineers.--Of the amounts made available each 
     fiscal year to carry out this section, 8.1 percent shall be 
     available to the Secretary of the Army for use by the Corps 
     of Engineers to carry out natural resources adaptation 
     activities restoring--
       (A) large-scale freshwater aquatic ecosystems, such as the 
     ecosystems described in paragraph (5)(A);
       (B) large-scale estuarine ecosystems, such as the 
     ecosystems described in paragraph (5)(B);
       (C) freshwater and estuarine ecosystems, watersheds, and 
     basins identified as priorities by the Corps of Engineers, 
     working in cooperation with other Federal agencies, States, 
     Indian tribes, local governments, scientists, and other 
     conservation partners; and
       (D) habitats and ecosystems through the implementation of 
     estuary habitat restoration projects authorized by the 
     Estuary Restoration Act of 2000 (33 U.S.C. 2901 et seq.), 
     project modifications for improvement of the environment, 
     aquatic restoration and protection projects authorized by 
     section 206 of the Water Resources Development Act of 1996 
     (33 U.S.C. 2330), and other appropriate programs and 
     activities.
       (d) Use of Funds by Federal Departments and Agencies.--
     Funds allocated to Federal departments and agencies under 
     this section shall only be used for natural resources 
     adaptation activities that are consistent with an adaptation 
     plan developed and approved by the President under section 
     478.
       (e) State Cost Sharing.--Notwithstanding any other 
     provision of law, a State that receives a grant with amounts 
     allocated under this section shall use funds from non-Federal 
     sources to pay at least 10 percent of the costs of each 
     activity carried out using amounts provided under the grant.

     SEC. 481. NATIONAL WILDLIFE HABITAT AND CORRIDORS INFORMATION 
                   PROGRAM.

        (a) Establishment.--Within 6 months of the date of 
     enactment of this subpart, the Secretary of the Interior, in 
     cooperation with the States and Indian tribes, shall 
     establish a National Fish and Wildlife Habitat

[[Page 16661]]

     and Corridors Information Program in accordance with the 
     requirements of this section.
       (b) Purpose.--The purpose of this program is to--
       (1) support States and Indian tribes in the development of 
     a geographic information system database of fish and wildlife 
     habitat and corridors that would inform planning and 
     development decisions within each State and Indian tribe, 
     enable each State and Indian tribe to model climate impacts 
     and adaptation, and provide geographically specific 
     enhancements of State and tribal wildlife action plans;
       (2) ensure the collaborative development, with the States 
     and Indian tribes, of a comprehensive, national geographic 
     information system database of maps, models, data, surveys, 
     informational products, and other geospatial information 
     regarding fish and wildlife habitat and corridors, that--
       (A) is based on consistent protocols for sampling and 
     mapping across landscapes that take into account regional 
     differences; and
       (B) that utilizes--
       (i) existing and planned State- and tribal-based geographic 
     information system databases; and
       (ii) existing databases, analytical tools, metadata 
     activities, and other information products available through 
     the National Biological Information Infrastructure maintained 
     by the Secretary and nongovernmental organizations; and
       (3) facilitate the use of such databases by Federal, State, 
     local, and tribal decisionmakers to incorporate qualitative 
     information on fish and wildlife habitat and corridors at the 
     earliest possible stage to--
       (A) prioritize and target natural resources adaptation 
     strategies and activities;
       (B) avoid, minimize, and mitigate the impacts on fish and 
     wildlife habitat and corridors in siting energy development, 
     water, transmission, transportation, and other land use 
     projects;
       (C) assess the impacts of existing development on habitats 
     and corridors; and
       (D) develop management strategies to enhance the ability of 
     fish, wildlife, and plant species to migrate or respond to 
     shifting habitats within existing habitats and corridors.
       (c) Habitat and Corridors Information System.--
       (1) In general.--The Secretary, in cooperation with the 
     States and Indian tribes, shall develop a Habitat and 
     Corridors Information System.
       (2) Contents.--The System shall--
       (A) include maps, data, and descriptions of fish and 
     wildlife habitat and corridors, that--
       (i) have been developed by Federal agencies, State wildlife 
     agencies and natural heritage programs, Indian tribes, local 
     governments, nongovernmental organizations, and industry;
       (ii) meet accepted Geospatial Interoperability Framework 
     data and metadata protocols and standards;
       (B) include maps and descriptions of projected shifts in 
     habitats and corridors of fish and wildlife species in 
     response to climate change;
       (C) assure data quality and make the data, models, and 
     analyses included in the System available at scales useful to 
     decisionmakers--
       (i) to prioritize and target natural resources adaptation 
     strategies and activities;
       (ii) to assess the impacts of proposed energy development, 
     water, transmission, transportation, and other land use 
     projects and avoid, minimize, and mitigate those impacts on 
     habitats and corridors;
       (iii) to assess the impacts of existing development on 
     habitats and corridors; and
       (iv) to develop management strategies to enhance the 
     ability of fish, wildlife, and plant species to migrate or 
     respond to shifting habitats within existing habitats and 
     corridors;
       (D) establish a process for updating maps and other 
     information as landscapes, habitats, corridors, and wildlife 
     populations change or as other information becomes available;
       (E) encourage the development of collaborative plans by 
     Federal and State agencies and Indian tribes to monitor and 
     evaluate the efficacy of the System to meet the needs of 
     decisionmakers;
       (F) identify gaps in habitat and corridor information, 
     mapping, and research that should be addressed to fully 
     understand and assess current data and metadata, and to 
     prioritize research and future data collection activities for 
     use in updating the System and provide support for those 
     activities;
       (G) include mechanisms to support collaborative research, 
     mapping, and planning of habitats and corridors by Federal 
     and State agencies, Indian tribes, and other interested 
     stakeholders;
       (H) incorporate biological and geospatial data on species 
     and corridors found in energy development and transmission 
     plans, including renewable energy initiatives, 
     transportation, and other land use plans;
       (I) be based on the best scientific information available; 
     and
       (J) identify, prioritize, and describe key parcels of non-
     Federal land located within the boundaries of units of the 
     National Park System, National Wildlife Refuge System, 
     National Forest System, or National Grassland System that are 
     critical to maintenance of wildlife habitat and migration 
     corridors.
       (d) Financial and Other Support.--The Secretary may provide 
     support to the States and Indian tribes, including financial 
     and technical assistance, for activities that support the 
     development and implementation of the System.
       (e) Coordination.--The Secretary, in cooperation with the 
     States and Indian tribes, shall make recommendations on how 
     the information developed in the System may be incorporated 
     into existing relevant State and Federal plans affecting fish 
     and wildlife, including land management plans, the State 
     Comprehensive Wildlife Conservation Strategies, and 
     appropriate tribal conservation plans, to ensure that they--
       (1) prevent unnecessary habitat fragmentation and 
     disruption of corridors;
       (2) promote the landscape connectivity necessary to allow 
     wildlife to move as necessary to meet biological needs, 
     adjust to shifts in habitat, and adapt to climate change; and
       (3) minimize the impacts of energy, development, water, 
     transportation, and transmission projects and other 
     activities expected to impact habitat and corridors.
       (f) Definitions.--In this section:
       (1) Geospatial interoperability framework.--The term 
     ``Geospatial Interoperability Framework'' means the strategy 
     utilized by the National Biological Information 
     Infrastructure that is based upon accepted standards, 
     specifications, and protocols adopted through the 
     International Standards Organization, the Open Geospatial 
     Consortium, and the Federal Geographic Data Committee, to 
     manage, archive, integrate, analyze, and make accessible 
     geospatial and biological data and metadata.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 482. ADDITIONAL PROVISIONS REGARDING INDIAN TRIBES.

       (a) Federal Trust Responsibility.--Nothing in this subpart 
     is intended to amend, alter, or give priority over the 
     Federal trust responsibility to Indian tribes.
       (b) Exemption From FOIA.--Information received by a Federal 
     agency pursuant to this Act relating to the location, 
     character, or ownership of human remains of a person of 
     Indian ancestry; or resources, cultural items, uses, or 
     activities identified by an Indian tribe as traditional or 
     cultural because of the long-established significance or 
     ceremonial nature to the Indian tribe; shall not be subject 
     to disclosure under section 552 of title 5, United States 
     Code, if the head of the agency, in consultation with the 
     Secretary of the Interior and an affected Indian tribe, 
     determines that disclosure may--
       (1) cause a significant invasion of privacy;
       (2) risk harm to the human remains or resources, cultural 
     items, uses, or activities; or
       (3) impede the use of a traditional religious site by 
     practitioners.
       (c) Application of Other Law.--The Secretary of the 
     Interior may apply the provisions of Public Law 93-638 where 
     appropriate in the implementation of this subpart.

        PART 2--INTERNATIONAL CLIMATE CHANGE ADAPTATION PROGRAM

     SEC. 491. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Global climate change is a potentially significant 
     national and global security threat multiplier and is likely 
     to exacerbate competition and conflict over agricultural, 
     vegetative, marine, and water resources and to result in 
     increased displacement of people, poverty, and hunger within 
     developing countries.
       (2) The strategic, social, political, economic, cultural, 
     and environmental consequences of global climate change are 
     likely to have disproportionate adverse impacts on developing 
     countries, which have less economic capacity to respond to 
     such impacts.
       (3) The countries most vulnerable to climate change, due 
     both to greater exposure to harmful impacts and to lower 
     capacity to adapt, are developing countries with very low 
     industrial greenhouse gas emissions that have contributed 
     less to climate change than more affluent countries.
       (4) To a much greater degree than developed countries, 
     developing countries rely on the natural and environmental 
     systems likely to be affected by climate change for 
     sustenance, livelihoods, and economic growth and stability.
       (5) Within developing countries there may be varying 
     climate change adaptation and resilience needs among 
     different communities and populations, including impoverished 
     communities, children, women, and indigenous peoples.
       (6) The consequences of global climate change, including 
     increases in poverty and destabilization of economies and 
     societies, are likely to pose long-term challenges to the 
     national security, foreign policy, and economic interests of 
     the United States.
       (7) It is in the national security, foreign policy, and 
     economic interests of the United States to recognize, plan 
     for, and mitigate the international strategic, social, 
     political, cultural, environmental, health, and economic 
     effects of climate change and to assist

[[Page 16662]]

     developing countries to increase their resilience to those 
     effects.
       (8) Under Article 4 of the United Nations Framework 
     Convention on Climate Change, developed country parties, 
     including the United States, committed to ``assist the 
     developing country parties that are particularly vulnerable 
     to the adverse effects of climate change in meeting costs of 
     adaptation to those adverse effects''.
       (9) Under the Bali Action Plan, developed country parties 
     to the United Nations Framework Convention on Climate Change, 
     including the United States, committed to ``enhanced action 
     on the provision of financial resources and investment to 
     support action on mitigation and adaptation and technology 
     cooperation,'' including, inter alia, consideration of 
     ``improved access to adequate, predictable, and sustainable 
     financial resources and financial and technical support, and 
     the provision of new and additional resources, including 
     official and concessional funding for developing country 
     parties''.
       (b) Purposes.--The purposes of this part are--
       (1) to provide new and additional assistance from the 
     United States to the most vulnerable developing countries, 
     including the most vulnerable communities and populations 
     therein, in order to support the development and 
     implementation of climate change adaptation programs and 
     activities that reduce the vulnerability and increase the 
     resilience of communities to climate change impacts, 
     including impacts on water availability, agricultural 
     productivity, flood risk, coastal resources, timing of 
     seasons, biodiversity, economic livelihoods, health and 
     diseases, and human migration; and
       (2) to provide such assistance in a manner that protects 
     and promotes the national security, foreign policy, 
     environmental, and economic interests of the United States to 
     the extent such interests may be advanced by minimizing, 
     averting, or increasing resilience to climate change impacts.

     SEC. 492. DEFINITIONS.

       In this part:
       (1) Allowance.--The term ``allowance'' means an emission 
     allowance established under section 721 of the Clean Air Act.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committees on Energy and Commerce, Financial 
     Services, and Foreign Affairs of the House of 
     Representatives; and
       (B) the Committees on Environment and Public Works and 
     Foreign Relations of the Senate.
       (3) Developing country.--The term ``developing country'' 
     means a country eligible to receive official development 
     assistance according to the income guidelines of the 
     Development Assistance Committee of the Organization for 
     Economic Cooperation and Development.
       (4) Most vulnerable developing countries.--The term ``most 
     vulnerable developing countries'' means, as determined by the 
     Administrator of USAID, developing countries that are at risk 
     of substantial adverse impacts of climate change and have 
     limited capacity to respond to such impacts, considering the 
     approaches included in any international treaties and 
     agreements.
       (5) Most vulnerable communities and populations.--The term 
     ``most vulnerable communities and populations'' means 
     communities and populations that are at risk of substantial 
     adverse impacts of climate change and have limited capacity 
     to respond to such impacts, including impoverished 
     communities, children, women, and indigenous peoples.
       (6) Program.--The term ``Program'' means the International 
     Climate Change Adaptation Program established under section 
     493.
       (7) USAID.--The term ``USAID'' means the United States 
     Agency for International Development.
       (8) United nations framework convention on climate 
     change.--The term ``United Nations Framework Convention on 
     Climate Change'' or ``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.

     SEC. 493. INTERNATIONAL CLIMATE CHANGE ADAPTATION PROGRAM.

       (a) Establishment.--The Secretary of State, in consultation 
     with the Administrator of USAID, the Secretary of the 
     Treasury, and the Administrator of the Environmental 
     Protection Agency, shall establish an International Climate 
     Change Adaptation Program in accordance with the requirements 
     of this part.
       (b) Allowance Account.--Allowances allocated pursuant to 
     section 782(n) of the Clean Air Act shall be available for 
     distribution to carry out the Program established under 
     subsection (a).
       (c) Supplement Not Supplant.--Assistance provided under 
     this part shall be used to supplement, and not to supplant, 
     any other Federal, State, or local resources available to 
     carry out activities of the type carried out under the 
     Program.

     SEC. 494. DISTRIBUTION OF ALLOWANCES.

       (a) In General.--The Secretary of State, or such other 
     Federal agency head as the President may designate, after 
     consultation with the Secretary of the Treasury, the 
     Administrator of USAID, and the Administrator of the 
     Environmental Protection Agency, shall direct the 
     distribution of allowances to carry out the Program--
       (1) in the form of bilateral assistance pursuant to the 
     requirements under section 495;
       (2) to multilateral funds or international institutions 
     pursuant to the Convention or an agreement negotiated under 
     the Convention; or
       (3) through a combination of the mechanisms identified 
     under paragraphs (1) and (2).
       (b) Limitation.--
       (1) Conditional distribution to multilateral funds or 
     international institutions.--In any fiscal year, the 
     Secretary of State, or such other Federal agency head as the 
     President may designate, in consultation with the 
     Administrator of USAID, the Secretary of the Treasury, and 
     the Administrator of the Environmental Protection Agency, 
     shall distribute at least 40 percent and up to 60 percent of 
     the allowances available to carry out the Program to one or 
     more multilateral funds or international institutions that 
     meet the requirements of paragraph (2), if any such fund or 
     institution exists, and shall annually certify in a report to 
     the appropriate congressional committees that any 
     multilateral fund or international institution receiving 
     allowances under this section meets the requirements of 
     paragraph (2) or that no multilateral fund or international 
     institution that meets the requirements of paragraph (2) 
     exists, as the case may be. The Secretary of State shall 
     notify the appropriate congressional committees not less than 
     15 days prior to any transfer of allowances to a multilateral 
     fund or international institution pursuant to this section.
       (2) Multilateral fund or international institution 
     eligibility.--A multilateral fund or international 
     institution is eligible to receive allowances available to 
     carry out the Program--
       (A) if--
       (i) such fund or institution is established pursuant to--

       (I) the Convention; or
       (II) an agreement negotiated under the Convention; or

       (ii) the allowances are directed to one or more 
     multilateral development banks or international development 
     institutions, pursuant to an agreement negotiated under such 
     Convention; and
       (B) if such fund or institution--
       (i) specifies the terms and conditions under which the 
     United States is to provide allowances to the fund or 
     institution, and under which the fund or institution is to 
     provide assistance to recipient countries;
       (ii) ensures that assistance from the United States to the 
     fund or institution and the principal and income of the fund 
     or institution are disbursed only for purposes that are 
     consistent with those described in section 491(b)(1);
       (iii) requires a regular meeting of a governing body of the 
     fund or institution that includes representation from 
     countries among the most vulnerable developing countries and 
     provides public access;
       (iv) requires that local communities and indigenous peoples 
     in areas where any activities or programs are planned are 
     engaged through adequate disclosure of information, public 
     participation, and consultation; and
       (v) prepares and makes public an annual report that--

       (I) describes the process and methodology for selecting the 
     recipients of assistance from the fund or institution, 
     including assessments of vulnerability;
       (II) describes specific programs and activities supported 
     by the fund or institution and the extent to which the 
     assistance is addressing the adaptation needs of the most 
     vulnerable developing countries, and the most vulnerable 
     communities and populations therein;
       (III) describes the performance goals for assistance 
     authorized under the fund or institution and expresses such 
     goals in an objective and quantifiable form, to the extent 
     practicable;
       (IV) describes the performance indicators to be used in 
     measuring or assessing the achievement of the performance 
     goals described in subclause (III);
       (V) provides a basis for recommendations for adjustments to 
     assistance authorized under this part to enhance the impact 
     of such assistance; and
       (VI) describes the participation of other nations and 
     international organizations in supporting and governing the 
     fund or institution.

       (c) Oversight.--
       (1) Distribution to multilateral funds or international 
     institutions.--The Secretary of State, or such other Federal 
     agency head as the President may designate, in consultation 
     with the Administrator of USAID, shall oversee the 
     distribution of allowances available to carry out the Program 
     to a multilateral fund or international institution under 
     subsection (b).
       (2) Bilateral assistance.--The Administrator of USAID, in 
     consultation with the Secretary of State, shall oversee the 
     distribution of allowances available to carry out the Program 
     for bilateral assistance under section 495.

     SEC. 495. BILATERAL ASSISTANCE.

       (a) Activities and Foreign Aid.--
       (1) In general.--In order to achieve the purposes of this 
     part, the Administrator of

[[Page 16663]]

     USAID may carry out programs and activities and distribute 
     allowances to any private or public group (including 
     international organizations and faith-based organizations), 
     association, or other entity engaged in peaceful activities 
     to--
       (A) provide assistance to the most vulnerable developing 
     countries for--
       (i) the development of national or regional climate change 
     adaptation plans, including a systematic assessment of 
     socioeconomic vulnerabilities in order to identify the most 
     vulnerable communities and populations;
       (ii) associated national policies; and
       (iii) planning, financing, and execution of adaptation 
     programs and activities;
       (B) support investments, capacity-building activities, and 
     other assistance, to reduce vulnerability and promote 
     community-level resilience related to climate change and its 
     impacts in the most vulnerable developing countries, 
     including impacts on water availability, agricultural 
     productivity, flood risk, coastal resources, timing of 
     seasons, biodiversity, economic livelihoods, health, human 
     migration, or other social, economic, political, cultural, or 
     environmental matters;
       (C) support climate change adaptation research in or for 
     the most vulnerable developing countries;
       (D) reduce vulnerability and provide increased resilience 
     to climate change for local communities and livelihoods in 
     the most vulnerable developing countries by encouraging--
       (i) the protection and rehabilitation of natural systems;
       (ii) the enhancement and diversification of agricultural, 
     fishery, and other livelihoods; and
       (iii) the reduction of disaster risks;
       (E) support the deployment of technologies to help the most 
     vulnerable developing countries respond to the destabilizing 
     impacts of climate change and encourage the identification 
     and adoption of appropriate renewable and efficient energy 
     technologies that are beneficial in increasing community-
     level resilience to the impacts of global climate change in 
     those countries; and
       (F) encourage the engagement of local communities through 
     disclosure of information, consultation, and the communities' 
     informed participation relating to the development of plans, 
     programs, and activities to increase community-level 
     resilience to climate change impacts.
       (2) Limitations.--Not more than 10 percent of the 
     allowances made available to carry out bilateral assistance 
     under this part in any year shall be distributed to support 
     activities in any single country.
       (3) Prioritizing assistance.--In providing assistance under 
     this section, the Administrator of USAID shall give priority 
     to countries, including the most vulnerable communities and 
     populations therein, that are most vulnerable to the adverse 
     impacts of climate change, determined by the likelihood and 
     severity of such impacts and the country's capacity to adapt 
     to such impacts.
       (b) Community Engagement.--
       (1) In general.--The Administrator of USAID shall ensure 
     that local communities, including the most vulnerable 
     communities and populations therein, in areas where any 
     programs or activities are carried out pursuant to this 
     section are engaged in, through disclosure of information, 
     public participation, and consultation, the design, 
     implementation, monitoring, and evaluation of such programs 
     and activities.
       (2) Consultation and disclosure.--For each country 
     receiving assistance under this section, the Administrator of 
     USAID shall establish a process for consultation with, and 
     disclosure of information to, local, national, and 
     international stakeholders regarding any programs and 
     activities carried out pursuant to this section.
       (c) Coordination.--
       (1) Alignment of activities.--Subject to the direction of 
     the President and the Secretary of State, the Administrator 
     of USAID shall, to the extent practicable, seek to align 
     activities under this section with broader development, 
     poverty alleviation, or natural resource management 
     objectives and initiatives in the recipient country.
       (2) Coordination of activities.--The Administrator of USAID 
     shall ensure that there is coordination among the activities 
     under this section, subtitle D of this title, and part E of 
     title VII of the Clean Air Act, in order to maximize the 
     effectiveness of United States assistance to developing 
     countries.
       (d) Reporting.--
       (1) Initial report.--Not later than 180 days after the date 
     of enactment of this part, the Administrator of USAID, in 
     consultation with the Secretary of State, shall submit to the 
     President and the appropriate congressional committees an 
     initial report that--
       (A) based on the most recent information available from 
     reliable public sources or knowledge obtained by USAID on a 
     reliable basis, as determined by the Administrator of USAID, 
     identifies the developing countries, including the most 
     vulnerable communities and populations therein, that are most 
     vulnerable to climate change impacts and in which assistance 
     may have the greatest and most sustainable benefit in 
     reducing vulnerability to climate change; and
       (B) describes the process and methodology for selecting the 
     recipients of assistance under subsection (a)(1).
       (2) Annual reports.--Not later than 18 months after the 
     date on which the initial report is submitted pursuant to 
     paragraph (1), and annually thereafter, the Administrator of 
     USAID, in consultation with the Secretary of State, shall 
     submit to the President and the appropriate congressional 
     committees a report that--
       (A) describes the extent to which global climate change, 
     through its potential negative impacts on sensitive 
     populations and natural resources in the most vulnerable 
     developing countries, may threaten, cause, or exacerbate 
     political, economic, environmental, cultural, or social 
     instability or international conflict in those regions;
       (B) describes the ramifications of any potentially 
     destabilizing impacts climate change may have on the national 
     security, foreign policy, and economic interests of the 
     United States, including--
       (i) the creation of environmental migrants and internally 
     displaced peoples;
       (ii) international or internal 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 
     droughts, flooding, and other severe weather events);
       (vi) increased prevalence or virulence of climate-related 
     diseases; and
       (vii) intensified urban migration;
       (C) describes how allowances available under this section 
     were distributed during the previous fiscal year to enhance 
     the national security, foreign policy, and economic interests 
     of the United States and assist in avoiding the economically, 
     politically, environmentally, culturally, and socially 
     destabilizing impacts of climate change in most vulnerable 
     developing countries;
       (D) identifies and recommends the developing countries, 
     including the most vulnerable communities and populations 
     therein, that are most vulnerable to climate change impacts 
     and in which assistance may have the greatest and most 
     sustainable benefit in 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 greenhouse gases in ways that may also 
     provide community-level resilience to climate change impacts; 
     and
       (E) describes cooperation undertaken with other nations and 
     international organizations to carry out this part.
       (e) Monitoring and Evaluation.--
       (1) In general.--The Administrator of USAID shall establish 
     and implement a system to monitor and evaluate the 
     effectiveness and efficiency of assistance provided under 
     this section in order to maximize the long-term sustainable 
     development impact of such assistance, including the extent 
     to which such assistance is meeting the purposes of this part 
     and addressing the adaptation needs of developing countries.
       (2) Requirements.--In carrying out paragraph (1), the 
     Administrator of USAID shall--
       (A) in consultation with national governments in recipient 
     countries, establish performance goals for assistance 
     authorized under this section and express such goals in an 
     objective and quantifiable form, to the extent practicable;
       (B) establish performance indicators to be used in 
     measuring or assessing the achievement of the performance 
     goals described in subparagraph (A), including an evaluation 
     of--
       (i) the extent to which assistance under this section 
     provided for disclosure of information to, consultation with, 
     and informed participation by local communities;
       (ii) the extent to which local communities participated in 
     the design, implementation, and evaluation of programs and 
     activities implemented pursuant to this section; and
       (iii) the impacts of such participation on the goals and 
     objectives of the programs and activities implemented under 
     this section;
       (C) provide a basis for recommendations for adjustments to 
     assistance authorized under this section to enhance the 
     impact of such assistance; and
       (D) include, in the annual report to the appropriate 
     congressional committees and other relevant agencies required 
     under subsection (d)(2), findings resulting from the 
     monitoring and evaluation of programs and activities under 
     this section.

            Subtitle F--Deficit Neutral Budgetary Treatment

     SEC. 496. DEFICIT NEUTRALITY.

       (a) Funds Established.--Funds established under sections 
     422, 467, and 480 of this Act are to be treated as separate 
     accounts in the Treasury and shall be known as ``the Funds''.
       (b) Availability.--Funds appropriated or made available 
     pursuant to sections 422(b), 467(b), and 480(b)(2) are only 
     available for the purposes set forth under this Act. Receipts 
     in the Funds and appropriations therefrom shall not be 
     available and are precluded from obligation for any other 
     purpose.

[[Page 16664]]

       (c) Estimation of Budgetary Impact.--For the purposes of 
     estimating the revenue and spending effects of this Act;
       (1) the revenue assumed to be deposited into the Funds 
     established under sections 422, 467, and 480, shall be 
     attributed to this Act; and
       (2) the authorization or availability of appropriations 
     from the Funds shall be treated as new direct spending and 
     attributed to this Act.
       (d) Budgetary Treatment.--For the purposes of section 257 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, the Funds, and amounts subsequently appropriated or 
     made available for the purposes for which such Funds were 
     established, shall be deemed to be included on the list of 
     appropriations referenced under section 250(c)(17) of that 
     Act. Such appropriations from each Fund shall not be in 
     excess of the amounts deposited into the respective Fund in 
     the previous year.

           TITLE V--AGRICULTURAL AND FORESTRY RELATED OFFSETS

   Subtitle A--Offset Credit Program From Domestic Agricultural and 
                            Forestry Sources

     SEC. 501. DEFINITIONS.

       (a) In General.--In this title:
       (1) Additional.--The term ``additional'', when used with 
     respect to reductions or avoidance of greenhouse gas 
     emissions, or to sequestration of greenhouse gases, means 
     reductions, avoidance, or sequestration that result in a 
     lower level of net greenhouse gas emissions or atmospheric 
     concentrations than would occur in the absence of an offset 
     project.
       (2) Additionality.--The term ``additionality'' means the 
     extent to which reductions or avoidance of greenhouse gas 
     emissions, or sequestration of greenhouse gases, are 
     additional.
       (3) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (4) Advisory committee.--The term ``Advisory Committee'' 
     means the USDA Greenhouse Gas Emission Reduction and 
     Sequestration Advisory Committee established under section 
     1245(f) of the Food Security Act of 1985 (16 U.S.C. 3845).
       (5) Greenhouse gas.--The term ``greenhouse gas'' means any 
     of the following:
       (A) Carbon dioxide.
       (B) Methane.
       (C) Nitrous oxide.
       (D) Sulfur hexafluoride.
       (E) Hydrofluorocarbons from a chemical manufacturing 
     process at an industrial stationary source.
       (F) Any perfluorocarbon.
       (G) Nitrogen trifluoride.
       (H) Any other anthropogenic gas designated as a greenhouse 
     gas by the Administrator.
       (6) Leakage.--The term ``leakage'' means a significant and 
     quantifiable increase in greenhouse gas emissions, or a 
     significant and quantifiable decrease in sequestration, which 
     is caused by an offset practice and occurs outside the 
     boundaries of the offset practice.
       (7) Offset credit.--The term ``offset credit'' means a 
     tradeable compliance instrument that--
       (A) represents the reduction, avoidance, or sequestration 
     of 1 ton of carbon dioxide equivalent; and
       (B) is issued pursuant to this title.
       (8) Offset practice.--The term ``offset practice'' means an 
     activity that reduces, avoids, or sequesters greenhouse gas 
     emissions, and for which offset credits may be issued 
     pursuant to this title.
       (9) Offset producer.--The term ``offset producer'' means an 
     owner, operator, landlord, tenant, or sharecropper who has or 
     shares responsibility for ensuring that an offset practice is 
     established and maintained during the crediting period for 
     purposes of an offset credit.
       (10) Offset project.--The term ``offset project'' means a 
     practice or set of practices that reduce or avoid greenhouse 
     gas emissions, or sequester greenhouse gases as implemented 
     by an offset producer.
       (11) Offset project developer.--The term ``offset project 
     developer'' means the offset producer or designee of the 
     offset producer.
       (12) Practice type.--The term ``practice type'' means a 
     discrete category of offset practices for which the Secretary 
     develops a standardized methodology to accurately estimate 
     the amount of greenhouse gas emissions reduced or avoided or 
     greenhouse gases sequestered.
       (13) Reversal.--The term ``reversal'' means an intentional 
     or unintentional loss of sequestered greenhouse gases to the 
     atmosphere.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (15) Sequestration and sequestered.--The terms 
     ``sequestered'' and ``sequestration'' mean the separation, 
     isolation, or removal of greenhouse gases from the 
     atmosphere, as determined by the Secretary. The terms include 
     biological sequestration, but do not include ocean 
     fertilization techniques.
       (16) Term offset credit.--The term ``term offset credit'' 
     means a compliance instrument authorized under section 
     504(d).
       (b) Agricultural and Forestry Exception to Definition of 
     Capped Sector.--For purposes of this title and title III of 
     this Act, and amendments made by such titles, the term 
     ``capped sector'' means a sector of economic activity that 
     directly emits capped emissions, including the industrial 
     sector, the electricity generation sector, the transportation 
     sector, and the residential and commercial sectors (to the 
     extent they burn oil or natural gas), but not including the 
     agricultural or forestry sectors.

     SEC. 502. ESTABLISHMENT OF OFFSET CREDIT PROGRAM FROM 
                   DOMESTIC AGRICULTURAL AND FORESTRY SOURCES.

       (a) Establishment.--Not later than 1 year after the date of 
     enactment of this title, the Secretary shall establish a 
     program governing the generation of offset credits from 
     domestic agricultural and forestry sources.
       (b) Requirements.--The program described in subsection (a) 
     shall--
       (1) ensure that offset credits represent verifiable and 
     additional greenhouse gas emission reductions or avoidance, 
     or increases in sequestration; and
       (2) ensure that offset credits issued for sequestration 
     offset projects are only issued for greenhouse gas reductions 
     that result in a permanent net reduction in atmospheric 
     greenhouse gases.
       (c) Duties of Secretary.--In addition to the duties 
     described in subsection (a) and section 1245 of the Food 
     Security Act of 1985 (16 U.S.C. 3845), the Secretary shall, 
     with respect to practices relating to offset credits from 
     agricultural and forestry sources--
       (1) establish by rule methodologies by practice types for 
     quantifying greenhouse gas benefits;
       (2) establish by rule methodologies for each practice type 
     for establishing activity baselines and determining 
     additionality;
       (3) establish by rule methodologies by practice types for 
     accounting for and mitigating potential leakage;
       (4) establish rules to account for and address reversals;
       (5) establish rules to require third-party verification;
       (6) provide technical assistance to offset project 
     developers using funds appropriated to the Conservation 
     Operations account;
       (7) establish rules for approval of offset project plans;
       (8) establish rules for certification of implementation of 
     offset project plans;
       (9) establish by rule requirements for reporting and record 
     keeping; and
       (10) conduct audits.

     SEC. 503. LIST OF ELIGIBLE DOMESTIC AGRICULTURAL AND FORESTRY 
                   OFFSET PRACTICE TYPES.

       (a) List Required.--
       (1) Preparation and publication.--Not later than 1 year 
     after the date of enactment of this title, the Secretary 
     shall prepare and publish in the Federal Register a list of 
     domestic agricultural and forestry practice types that are 
     eligible to generate offset credits under this title because 
     the practices avoid or reduce greenhouse gas emissions or 
     sequester greenhouse gases.
       (2) Recommendations.--In preparing the list under paragraph 
     (1), the Secretary shall take into consideration the 
     recommendations of the Advisory Committee.
       (b) Initial List.--At a minimum, the list prepared under 
     this section shall include those practices that avoid or 
     reduce greenhouse gas emissions or sequester greenhouse 
     gases, such as--
       (1) agricultural, grassland, and rangeland sequestration 
     and management practices, including--
       (A) altered tillage practices;
       (B) winter cover cropping, continuous cropping, and other 
     means to increase biomass returned to soil in lieu of 
     planting followed by fallowing;
       (C) reduction of nitrogen fertilizer use or increase in 
     nitrogen use efficiency;
       (D) reduction in the frequency and duration of flooding of 
     rice paddies;
       (E) reduction in carbon emissions from organic soils;
       (F) reduction in greenhouse gas emissions from manure and 
     effluent; and
       (G) reduction in greenhouse gas emissions due to changes in 
     animal management practices, including dietary modifications;
       (2) changes in carbon stocks attributed to land use change 
     and forestry activities, including--
       (A) afforestation or reforestation of acreage that is not 
     forested;
       (B) forest management resulting in an increase in forest 
     carbon stores including but not limited to harvested wood 
     products;
       (C) management of peatland or wetland;
       (D) conservation of grassland and forested land;
       (E) improved forest management, including accounting for 
     carbon stored in wood products;
       (F) reduced deforestation or avoided forest conversion;
       (G) urban tree-planting and maintenance;
       (H) agroforestry; and
       (I) adaptation of plant traits or new technologies that 
     increase sequestration by forests; and
       (3) manure management and disposal, including--
       (A) waste aeration;
       (B) biogas capture and combustion; and
       (C) application to fields as a substitute for commercial 
     fertilizer.

[[Page 16665]]

       (c) Additions and Revisions to List.--
       (1) Periodic revision.--Not later than 2 years after the 
     date of enactment of this title, and every 2 years 
     thereafter, the Secretary, after public notice and 
     opportunity for comment, shall add to and revise the types of 
     offset practices to the list established under subsection (a) 
     if those types of practices meet the standards for 
     environmental integrity that are consistent with the purposes 
     of this title.
       (2) Consideration of petitions.--The Secretary shall--
       (A) consider petitions to add types of offset practices to 
     the list established under subsection (a); and
       (B) add those types of offset practices to the list if the 
     types of offset practices meet standards for environmental 
     integrity consistent with the purposes of this title.
       (3) Time for consideration of petitions.--Not later than 1 
     year after the receipt of a petition under paragraph (2), the 
     Secretary shall make a decision to either grant or deny the 
     petition and publish a written explanation of the reasons for 
     the Secretary's decision. The Secretary may not deny a 
     petition under this subsection on the basis of inadequate 
     Department of Agriculture resources at the time of the 
     review.

     SEC. 504. REQUIREMENTS FOR DOMESTIC AGRICULTURAL AND FORESTRY 
                   PRACTICES.

       (a) Methodologies.--
       (1) In general; condition.--In promulgating regulations 
     under section 502, the Secretary shall establish 
     methodologies for domestic agricultural and forestry 
     practices listed under section 503, if the Secretary 
     determines that methodologies can be established for such 
     practices that meet each of the requirements of this section. 
     The Secretary shall only issue offset credits under this 
     title pursuant to promulgated methodologies applicable to the 
     offset practice that avoided or reduced greenhouse gas 
     emissions or sequestered greenhouse gases.
       (2) Specified methodologies.--The Secretary shall establish 
     the following methodologies under this section:
       (A) Activity baselines.--A standardized methodology for 
     establishing activity baselines for an offset practice of 
     that type. The Secretary shall set activity baselines to 
     reflect a conservative estimate of performance or activities 
     for the relevant type of practice (excluding changes in 
     performance or activities due to the availability of offset 
     credits) such that the baseline provides an adequate margin 
     of safety to ensure the environmental integrity of offset 
     credits calculated in reference to such baseline.
       (B) Additionality.--A standardized methodology for 
     determining the additionality of greenhouse gas emissions 
     reduction or avoidance, or greenhouse gas sequestration, 
     achieved by an offset practice of that type. Such methodology 
     shall ensure, at a minimum, that any greenhouse gas emission 
     reduction or avoidance, or any greenhouse gas sequestration, 
     is considered additional only to the extent that it results 
     from activities that--
       (i) are not required by existing government regulations, as 
     determined by the Secretary;
       (ii) were not commenced prior to January 1, 2009, except in 
     the case of--

       (I) offset project activities that commenced after January 
     1, 2001, and were registered as of the date of enactment of 
     this title under an offset program with respect to which an 
     affirmative determination has been made under section 740 of 
     the Clean Air Act; or
       (II) activities that are readily reversible, with respect 
     to which the Secretary may set an alternative earlier date 
     under this subparagraph that is not earlier than January 1, 
     2001, where the Secretary determines that setting such an 
     alternative date may produce an environmental benefit by 
     removing an incentive to cease and then reinitiate activities 
     that began prior to January 1, 2009; and

       (iii) exceed the applicable activity baseline established 
     under paragraph (2).
       (C) Quantification methods.--A standardized methodology for 
     determining the extent to which greenhouse gas emission 
     reductions or avoidance, or greenhouse gas sequestration, 
     achieved by an offset practice of that type exceeded a 
     relevant activity baseline, including methods for monitoring 
     and accounting for uncertainty.
       (D) Leakage.--A standardized methodology for accounting for 
     and mitigating potential leakage, if any, from an offset 
     practice of that type, taking uncertainty into account, 
     excluding international indirect land use changes unless a 
     positive determination is made under section 
     211(o)(13)(C)(iii) of the Clean Air Act.
       (b) Special Considerations.--
       (1) Existing offset practices.--In establishing the 
     methodologies under subsection (a), the Secretary shall give 
     due consideration to methodologies for offset practices 
     existing as of the date of the enactment of this title.
       (2) Certain factors.--As part of the methodologies 
     established under subsection (a), the Secretary shall 
     establish a formula that takes into account the components of 
     the practice, the characteristics of the land on which the 
     practice is applied, the crop produced, and such other 
     factors as determined appropriate by the Secretary.
       (c) Accounting for Reversals.--
       (1) In general.--Except as provided in subsection (d) with 
     respect to issuance of a term offset credit, for each type of 
     practice listed under section 503, the Secretary shall 
     establish requirements to account for and address reversals, 
     including--
       (A) a requirement to report any reversal with respect to an 
     offset practice for which offset credits have been issued 
     under this title;
       (B) provisions to require emission allowances or offset 
     credits to be held in amounts to fully compensate for 
     greenhouse gas emissions attributable to reversals, and to 
     assign responsibility for holding such emission allowances; 
     and
       (C) any other provisions that the Secretary determines to 
     be necessary to account for and address reversals.
       (2) Mechanisms.--
       (A) In general.--The Secretary shall prescribe mechanisms 
     to ensure that any sequestration of greenhouse gases, with 
     respect to which an offset credit is issued under this title, 
     results in a permanent net increase in sequestration of 
     greenhouse gases, and that full account is taken of any 
     actual or potential reversal of such sequestration, with an 
     adequate margin of safety.
       (B) Specific mechanisms.--The Secretary shall make 
     available one or more of the following mechanisms to meet the 
     requirements of this paragraph:
       (i) An offsets reserve, pursuant to paragraph (3).
       (ii) Insurance that provides for purchase and provision to 
     the Secretary for retirement of a quantity of offset credits 
     or emission allowances equal in number to the tons of carbon 
     dioxide equivalents of greenhouse gas emissions released due 
     to reversal.
       (iii) Another mechanism if the Secretary determines it is 
     necessary to satisfy the requirements of this title, taking 
     into account whether the reversal was intentional or 
     unintentional.
       (3) Offsets reserve.--
       (A) In general.--An offsets reserve referred to in 
     paragraph (2)(B)(i) is a program under which, before issuance 
     of offset credits under this title, the Secretary shall--
       (i) subtract and reserve from the quantity to be issued a 
     quantity of offset credits based on the risk of reversal;
       (ii) hold those reserved offset credits in the offsets 
     reserve; and
       (iii) register the holding of the reserved offset credits 
     in an offset registry.
       (B) Practice reversal.--
       (i) In general.--If a reversal has occurred with respect to 
     an offset practice within an offset project, for which offset 
     credits are reserved under this paragraph, the Secretary 
     shall retire offset credits from the offsets reserve to fully 
     account for the tons of carbon dioxide equivalent that are no 
     longer sequestered.
       (ii) Intentional reversals.--If the Secretary determines 
     that a reversal was intentional, the offset practice 
     developer for the relevant offset practice shall place into 
     the offsets reserve a quantity of offset credits, or 
     combination of offset credits and emission allowances, equal 
     in number to the number of reserve offset credits that were 
     retired pursuant to clause (i).
       (iii) Unintentional reversals.--If the Secretary determines 
     that a reversal was unintentional, the offset project 
     developer for the relevant offset project shall place into 
     the offsets reserve a quantity of offset credits, or 
     combination of offset credits and emission allowances, equal 
     in number to half the number of offset credits that were 
     reserved for that offset project, or half the number of 
     reserve offset credits that were canceled due to the reversal 
     pursuant to clause (i), whichever is less, except that the 
     Secretary may lower this amount based on undue hardship in 
     the event of a catastrophic occurrence.
       (C) Use of reserved offset credits.--Offset credits placed 
     into the offsets reserve under this paragraph may not be used 
     to comply with section 722 of the Clean Air Act.
       (d) Term Offset Credits.--
       (1) Applicability.--With respect to a practice listed under 
     section 503 that sequesters greenhouse gases and has a 
     crediting period of no more than five years, the Secretary 
     may address reversals pursuant to this subsection in lieu of 
     permanently accounting for reversals pursuant to subsection 
     (c).
       (2) Accounting for reversals.--For such practices or 
     projects implementing such practices, the Secretary shall 
     require only reversals that occur during the crediting period 
     to be accounted for and addressed pursuant to subsection (c).
       (3) Credits issued.--For practices or projects regulated 
     pursuant to paragraph (2), the Secretary shall issue under 
     section 507 a term offset credit, in lieu of an offset 
     credit, for each ton of carbon dioxide equivalent that has 
     been sequestered.
       (e) Crediting Periods.--
       (1) In general.--For each offset practice type within an 
     offset project, the Secretary shall specify a crediting 
     period, and establish provisions for reenrollment for a 
     subsequent crediting period, in accordance with this 
     subsection.
       (2) Duration.--The crediting period shall have a term of up 
     to--
       (A) 5 years for agricultural sequestration practices;

[[Page 16666]]

       (B) 20 years for forestry sequestration practices; and
       (C) 10 years for other practice types that reduce or avoid 
     greenhouse gas emissions or sequester greenhouse gases.
       (3) Eligibility.--An offset practice, within an offset 
     project, shall--
       (A) be eligible to generate offset credits under this title 
     only during the crediting period of the offset practice; and
       (B) remain eligible to generate offset credits, only during 
     the crediting period, subject to the methodologies and 
     practice type eligibility list that applied as of the date of 
     the project approval.
       (4) Reenrollment for subsequent crediting period.--
       (A) Reenrollment authorized; time for reenrollment.--An 
     offset project developer may reenroll for a subsequent 
     crediting period, to commence after termination of the 
     current crediting period, subject to the methodologies and 
     practice type eligibility list in effect at the time of 
     reenrollment. Reenrollment may not occur more than 18 months 
     before the end of the crediting period then in effect.
       (B) Limitation.--The Secretary may limit the number of 
     subsequent crediting periods available for a particular 
     practice type.
       (f) Environmental Integrity.--In establishing the 
     requirements under this section, the Secretary shall apply 
     conservative assumptions or methods to ensure the 
     environmental integrity of the cap established under section 
     703 of the Clean Air Act is not compromised.

     SEC. 505. PROJECT PLAN SUBMISSION AND APPROVAL.

       (a) Project Plan Required.--An offset project developer 
     shall submit to the Secretary an offset project plan for 
     approval.
       (b) Requirements.--As part of the regulations promulgated 
     under this title, the Secretary shall include provisions for, 
     and shall specify, the required components of an offset 
     project plan, including--
       (1) designation of an offset project developer;
       (2) a list and schedule of the practices to be implemented;
       (3) any other information that the Secretary considers to 
     be necessary--
       (A) to determine whether the offset practice, within the 
     offset project, is eligible for issuance of offset credits 
     under regulations promulgated under this title; and
       (B) to achieve the purposes of this title.
       (c) Time for Consideration; Notification.--Not later than 
     90 days after receiving a complete offset project plan under 
     subsection (a), the Secretary shall--
       (1) approve the plan in writing and include an estimate of 
     the offset project credits that will be earned if the plan is 
     implemented, subject to verification of all project-specific 
     variables; or
       (2) if the plan is denied, provide the reasons for denial 
     in writing.
       (d) Appeal.--The Secretary shall establish procedures for 
     appeal and review of determinations made under this section.
       (e) Resubmission.--After an offset project plan is 
     approved, the offset project developer shall not be required 
     to resubmit a project plan during the crediting period.

     SEC. 506. VERIFICATION OF OFFSET PRACTICES.

       (a) In General.--As part of the regulations promulgated 
     under this title, the Secretary shall establish requirements 
     to verify--
       (1) that offset practices in an approved offset project 
     plan have been implemented; and
       (2) the quantity of greenhouse gas emission reductions or 
     avoidance, or sequestration of greenhouse gases, resulting 
     from an offset practice and project.
       (b) Verification Reports.--
       (1) In general.--The regulations described in subsection 
     (a) shall require an offset project developer to submit a 
     report, prepared by a third-party verifier accredited under 
     subsection (c).
       (2) Requirements.--The Secretary shall specify the 
     components of a verification report required under paragraph 
     (1), including--
       (A) the name and contact information for the offset project 
     developer;
       (B) a certification that the project plan has been 
     implemented;
       (C) the quantity of greenhouse gases reduced, avoided, or 
     sequestered;
       (D) a certification establishing that the conflict of 
     interest requirements in the regulations promulgated under 
     this title have been complied with;
       (E) any other information that the Secretary requires to 
     determine the quantity of greenhouse gas emission reduction 
     or avoidance, or sequestration of greenhouse gases, resulting 
     from the offset practice and project; and
       (F) any other information that the Secretary considers to 
     be necessary to achieve the purposes of this title.
       (c) Verifier Accreditation.--
       (1) In general.--As part of the regulations promulgated 
     under this title, the Secretary shall establish a process and 
     requirements for periodic accreditation of third-party 
     verifiers for offset credits under this program to ensure 
     that those verifiers are professionally qualified and have no 
     conflicts of interest.
       (2) Public accessibility.--Each verifier meeting the 
     requirements for accreditation in accordance with this 
     subsection shall be listed in a publicly accessible database, 
     which shall be maintained and updated by the Secretary.

     SEC. 507. CERTIFICATION OF OFFSET CREDITS.

       (a) Determination and Notification.--Not later than 90 days 
     after receiving a complete verification report, the Secretary 
     shall--
       (1) make a determination of the quantity of greenhouse gas 
     emissions that have been reduced or avoided, or greenhouse 
     gases that have been sequestered, by the offset practice in 
     an approved and verified offset project plan; and
       (2) notify the offset project developer in writing of the 
     determination.
       (b) Issuance of Offset Credits.--The Secretary shall issue 
     1 offset credit to an offset project developer for each ton 
     of carbon dioxide equivalent that the Secretary determines 
     has been reduced, avoided, or sequestered during the 
     crediting period. Offset credits may be issued only for 
     greenhouse gas emissions reduced, avoided, or sequestered 
     after January 1, 2009.
       (c) Appeal.--The Secretary shall establish procedures for 
     appeal and review of determinations made under subsection 
     (a).
       (d) Timing.--Offset credits meeting the criteria described 
     in subsection (b) shall be issued by the Secretary not later 
     than 14 days after the date on which the Secretary makes a 
     determination under subsection (a).
       (e) Registration.--The Secretary shall obtain from the 
     Administrator a unique serial number to allow for the 
     registration of each offset credit to be issued under this 
     title.

     SEC. 508. OWNERSHIP AND TRANSFER OF OFFSET CREDITS.

       (a) Ownership.--Initial ownership of an offset credit shall 
     lie with the offset project developer, unless otherwise 
     specified in a legally binding contract or agreement.
       (b) Transferability.--An offset credit issued under this 
     title may be sold, traded, or transferred, unless the offset 
     credit has expired or been retired.

     SEC. 509. PROGRAM REVIEW AND REVISION.

       At least once every 5 years, the Secretary shall review 
     and, based on new or updated information and taking into 
     consideration the recommendations of the Advisory Board, 
     update and revise--
       (1) the list of eligible practice types established under 
     section 503;
       (2) the methodologies established, including specific 
     activity baselines, under section 504(a);
       (3) the reversal requirements and mechanisms established or 
     prescribed under subsections (c) and (d) of section 504;
       (4) measures to improve the accountability of the offsets 
     program; and
       (5) any other requirements established under this title to 
     ensure the environmental integrity and effective operation of 
     this title.

     SEC. 510. ENVIRONMENTAL CONSIDERATIONS.

       If the Secretary lists forestry practices as eligible 
     offset practice types under section 503, the Secretary, in 
     consultation with appropriate Federal agencies, shall 
     promulgate regulations for the selection and use of species 
     in forestry and other relevant land management-related offset 
     practices--
       (1) to ensure that native species are given primary 
     consideration in such practices;
       (2) to encourage the conservation of biological diversity 
     in such practices;
       (3) to prohibit the use of federally designated or State-
     designated noxious weeds;
       (4) to prohibit the use of a species listed by a regional 
     or State invasive plant authority within the applicable 
     region or State; and
       (5) in accordance with widely accepted, environmentally 
     sustainable forestry practices.

     SEC. 511. AUDITS.

       (a) Audits Required.--The Secretary shall conduct, on an 
     annual basis, random audits of offset projects, offset 
     credits, and the practices of third-party verifiers. At a 
     minimum, the Secretary shall conduct audits each year for a 
     representative sample of practice types and geographical 
     areas.
       (b) Additional Authority.--Nothing in this section prevents 
     the Secretary from conducting any audit the Secretary 
     considers to be necessary.

 Subtitle B--USDA Greenhouse Gas Emission Reduction and Sequestration 
                           Advisory Committee

     SEC. 531. ESTABLISHMENT OF USDA GREENHOUSE GAS EMISSION 
                   REDUCTION AND SEQUESTRATION ADVISORY COMMITTEE.

       Section 1245 of the Food Security Act of 1985 (16 U.S.C. 
     3854), as added by section 2709 of the Food, Conservation, 
     and Energy Act of 2008 (Public Law 110-246; 122 Stat. 1809), 
     is amended by adding at the end the following new subsection:
       ``(f) USDA Greenhouse Gas Emission Reduction and 
     Sequestration Advisory Committee.--
       ``(1) Establishment.--Not later than 30 days after the date 
     of the enactment of the American Clean Energy and Security 
     Act of 2009, the Secretary shall establish an independent 
     advisory committee, to be known as the `USDA Greenhouse Gas 
     Emission Reduction and Sequestration Advisory Committee', to 
     provide scientific and technical advice on establishing, 
     implementing, and ensuring the overall environmental 
     integrity of an offset program for domestic agricultural and 
     forestry practices that reduce or

[[Page 16667]]

     avoid greenhouse gas emissions, or sequester greenhouse 
     gases.
       ``(2) Membership.--The Advisory Committee shall be 
     comprised of nine members, including a chairperson and vice-
     chairperson, appointed by the Secretary. Each member shall be 
     qualified by education, training, and experience to evaluate 
     scientific and technical information for domestic 
     agricultural and forestry offset practices that reduce or 
     avoid greenhouse gas emissions or sequester greenhouse gases.
       ``(3) Terms.--Terms shall be 3 years in length, except for 
     the initial terms, which may be up to 5 years in length to 
     allow staggered terms. Members may be reappointed only once 
     for an additional 3-year term, and such term may follow 
     directly after a first term.
       ``(4) Duties.--The Advisory Committee shall--
       ``(A) provide options and recommendations, not later than 
     180 days after the date of the enactment of the American 
     Clean Energy and Security Act of 2009, to the Secretary 
     regarding the establishment of methodologies as described in 
     section 504 of such Act, taking into account relevant 
     scientific information, including--
       ``(i) the availability of representative data for use in 
     developing an activity baseline for a land area, forest, 
     soil, industry sector, and facility type;
       ``(ii) the potential for accurate quanitification of 
     greenhouse gas reduction, or sequestration for an offset 
     practice type;
       ``(iii) the potential level of scientific and measurement 
     uncertainty associated with an offset practice type; and
       ``(iv) the use of practice methodologies that account for 
     common practice or other direct comparisons within a relevant 
     land area, industry sector, forest, soil, or facility type;
       ``(B) make available to the Secretary options and 
     recommendations for the program as a whole and on offset 
     methodologies for each practice type that should be 
     considered under regulations promulgated pursuant to section 
     504 of the American Clean Energy and Security Act of 2009, 
     including methodologies to address the issues of 
     additionality, activity baselines, measurement, leakage, 
     including the application of sector specific leakage factors, 
     uncertainty, permanence, and environmental integrity;
       ``(C) make available to the Secretary advice and comment on 
     areas where further knowledge is required to appraise the 
     adequacy of existing, revised, or proposed methodologies and 
     describe the research efforts necessary to provide the 
     required information;
       ``(D) make available to the Secretary advice and comments 
     on other ways to improve or safeguard the environmental 
     integrity of the offset practice types listed under section 
     503 of the American Clean Energy and Security Act of 2009; 
     and
       ``(E) provide options and recommendations regarding new 
     practice types.
       ``(5) Scientific review of offset program.--Not later than 
     January 1, 2017, and at 5-year intervals thereafter, the 
     Advisory Committee shall--
       ``(A) submit to the Secretary and make available to the 
     public an analysis of relevant scientific and technical 
     information regarding agricultural and forestry offset 
     practices that reduce or avoid greenhouse gas emissions or 
     sequester greenhouse gases;
       ``(B) review approved and potential practice types, 
     methodologies, scientific studies, offset project monitoring, 
     offset project verification reports, reporting of reversals, 
     audits related to the offset program, and other relevant 
     information needed to evaluate the offset program;
       ``(C) evaluate the net emission effects of implemented 
     offset projects; and
       ``(D) recommend changes to offset methodologies, 
     procedures, practice types, or the overall program to ensure 
     that--
       ``(i) the offset practices result in reduced or avoided 
     greenhouse gas emissions or sequestration of greenhouse 
     gases;
       ``(ii) the offset credits issued by the Secretary do not 
     compromise the integrity of the annual emissions reductions 
     established under section 703 of the Clean Air Act; and
       ``(iii) the offset program avoids or minimizes adverse 
     affects to human health and the environment.
       ``(6) Coordination.--To avoid duplication, the Advisory 
     Committee shall coordinate its activities with those of any 
     other Federal advisory committees working in related areas, 
     and shall to the maximum extent possible use research data 
     and services of the research, education, extension agencies 
     of the Department of Agriculture.
       ``(7) Consultation.--On a periodic basis, the Advisory 
     Committee shall consult with, and be informed by the views 
     of, the Offsets Integrity Advisory Board established under 
     section 731 of the Clean Air Act.
       ``(8) Meeting.--The Advisory Committee shall meet on at 
     least a quarterly basis each year.
       ``(9) Administrative support and funding.--The Secretary 
     may provide such administrative and funding support as 
     necessary to enable the Advisory Committee to carry out its 
     duties under this section.
       ``(10) Report.--For each fiscal year, the Secretary shall 
     submit to Congress a report on--
       ``(A) the status and progress on the offset practices;
       ``(B) the general status of cooperation and research and 
     development; and
       ``(C) the plans for addressing future issues and 
     concerns.''.

                       Subtitle C--Miscellaneous

     SEC. 551. INTERNATIONAL INDIRECT LAND USE CHANGES.

       Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is 
     amended by adding at the end the following
       ``(13) International indirect land use changes.--
       ``(A) Exclusion from regulatory requirements regarding 
     lifecycle greenhouse gas emissions.--Notwithstanding the 
     definition of `lifecycle greenhouse gas emissions' in 
     paragraph (1)(H), for purposes of determining whether the 
     fuel meets a definition in paragraph (1) or complies with 
     paragraph (2)(A)(i), the Administrator shall exclude 
     emissions from indirect land use changes outside the 
     renewable fuel's feedstock's country of origin.
       ``(B) National academies of science report.--(i) Not later 
     than 6 months after the date of enactment of this paragraph, 
     the Administrator and the Secretary of Agriculture shall 
     jointly arrange for the National Academies of Science to 
     review and report on specified issues related to indirect 
     greenhouse gas emissions related to transportation fuels.
       ``(ii) The report shall evaluate and report on whether 
     there are economic and environmental models and methodologies 
     that individually, or as a system, can project with 
     reliability, predictability, and confidence--
       ``(I) for purposes of determining whether the fuel meets a 
     definition in paragraph (1) or complies with paragraph 
     (2)(A)(i), indirect land use changes that are related to the 
     production of renewable fuels and that may occur outside the 
     country in which the feedstocks are grown, and the impacts of 
     these changes on greenhouse gas emissions; and
       ``(II) indirect effects, both domestic and international, 
     related to the production and importation of non-renewable 
     transportation fuels that have significant greenhouse gas 
     emissions, and the impact of these effects on greenhouse gas 
     emissions.
       ``(iii) The report shall include a review and assessment of 
     all pertinent scientific studies, methodologies and data, 
     shall evaluate potential methodologies for calculating such 
     emissions (including an evaluation of methods for annualizing 
     emissions associated with forest degradation or land 
     conversion), and shall make appropriate recommendations. The 
     recommendations shall address indirect effects, both domestic 
     and international, related to the production and importation 
     of non-renewable transportation fuels that have significant 
     greenhouse gas emissions. The report shall use appropriate 
     validation procedures, including sensitivity analyses, of how 
     results change as assumptions change. The evaluation shall 
     include for a model, a methodology, or a system of models--
       ``(I) an assessment of how reliably the models, 
     methodologies, or systems track actual outcomes over 
     historical periods using available historical data; and
       ``(II) an assessment of how reliably the models, 
     methodologies or systems will project future outcomes.
       ``(iv) The report shall be publicly available and shall 
     include sufficient information and data such that economists 
     and other scientists with relevant expertise that are not on 
     the National Academies of Science panel can fully evaluate 
     the conclusions of the report.
       ``(v) The report shall be completed within three years of 
     the date of enactment of this paragraph.
       ``(C) Determination.--(i) The Administrator and the 
     Secretary of Agriculture shall, after notice and an 
     opportunity for public comment, determine whether, for 
     purposes of determining compliance with the percent 
     reductions in lifecycle greenhouse gas emissions specified in 
     paragraph (1) for various renewable fuels, scientifically 
     valid models and methodologies exist to project indirect land 
     use changes that are related to the production of renewable 
     fuels and that occur outside the country in which the 
     feedstocks are grown, and the impact of these changes on 
     greenhouse gas emissions.
       ``(ii) The determination shall take into account the 
     findings and recommendations of the report required under 
     subparagraph (B), as well as other available scientific, 
     economic, and other relevant information. The Administrator 
     and the Secretary may also consider methods used by the 
     Environmental Protection Agency, the Department of 
     Agriculture, and other Federal agencies to assess or guide 
     their related policies.
       ``(iii) The Administrator and the Secretary of Agriculture 
     shall publish a proposed determination not later than 4 years 
     after date of enactment of this paragraph, and shall publish 
     a final determination not later than 5 years after date of 
     enactment of this paragraph. An explanation and justification 
     of the determination shall be included in the proposed and 
     final actions, together with a response to comments received.
       ``(D) Response to determination.--(i) In the event of a 
     positive determination under

[[Page 16668]]

     subparagraph (C), the Administrator and the Secretary of 
     Agriculture shall, after notice and an opportunity for public 
     comment, by the same date jointly establish a methodology (or 
     methodologies) to calculate greenhouse gas emissions from 
     indirect land use changes that are attributable to the 
     production of renewable fuels and that occur outside the 
     country in which feedstocks are grown for purposes of 
     calculating a renewable fuel's lifecycle greenhouse gas 
     emissions to determine whether the fuel meets a definition in 
     paragraph (1) or complies with paragraph (2)(A)(i). The 
     exclusion in subparagraph (A) shall end, and the 
     Administrator shall issue a regulation by the same date that 
     shall include emissions from indirect land use changes 
     outside the renewable fuel's feedstock's country of origin 
     for purposes of calculating a renewable fuel's lifecycle 
     greenhouse gas emissions to determine whether the fuel meets 
     a definition in paragraph (1) or complies with paragraph 
     (2)(A)(i) for renewable fuels sold in the calendar year 
     following the year of the positive determination. The 
     effective date of the regulation shall be six years after the 
     date of enactment of this paragraph.
       ``(ii) A negative determination under subparagraph (C) 
     shall include a statement of the basis for the determination.
       ``(E) Accountability.--The joint duties and actions of the 
     Administrator and the Secretary of Agriculture shall be 
     subject to sections 304 and 307 of this Act as if they were 
     the duties and actions of the Administrator alone.''.

     SEC. 552. BIOMASS-BASED DIESEL.

       Section 211(o)(2)(A) of the Clean Air Act (42 U.S.C. 
     7545(o)(2)(A)) is amended by adding at the end the following 
     new clause:
       ``(v) Grandfathering biomass-based diesel.--The 
     Administrator shall promulgate regulations exempting from the 
     lifecycle greenhouse gas requirements in subparagraphs (B) 
     and (D) of paragraph (1) up to the greater of 1 billion 
     gallons or the volume mandate adopted pursuant to 
     subparagraph (B)(ii) of biomass-based diesel annually from 
     facilities that commenced construction before the date of 
     enactment of the Energy Independence and Security Act of 
     2007.''.

     SEC. 553. MODIFICATION OF DEFINITION OF RENEWABLE BIOMASS.

       (a) National Academy of Sciences Report.--Not later than 1 
     year after the date of enactment of this Act, the 
     Administrator of the Environmental Protection Agency, the 
     Secretary of Agriculture, and the Federal Energy Regulatory 
     Commission shall jointly arrange for the National Academy of 
     Sciences to evaluate how sources of renewable biomass 
     contribute to the goals of increasing America's energy 
     independence, protecting the environment, and reducing global 
     warming pollution.
       (b) Modification.--
       (1) EPA modification authority.--After reviewing the report 
     required by subsection (a), the Administrator of the 
     Environmental Protection Agency, in concurrence with the 
     Secretary of Agriculture, may, by regulation and after public 
     notice and comment, modify the non-Federal lands portion of 
     the definition of ``renewable biomass'' in sections 
     211(o)(1)(I) and 700 of the Clean Air Act in order to advance 
     the goals of increasing America's energy independence, 
     protecting the environment, and reducing global warming 
     pollution.
       (2) FERC modification authority.--After reviewing the 
     report required by subsection (a), the Federal Energy 
     Regulatory Commission, in concurrence with the Secretary of 
     Agriculture, may, by regulation and after public notice and 
     comment, modify the non-Federal lands portion of the 
     definition of ``renewable biomass'' in section 610 of the 
     Public Utility Regulatory Policies Act of 1978 in order to 
     advance the goals of increasing America's energy 
     independence, protecting the environment, and reducing global 
     warming pollution.
       (c) Federal Lands.--
       (1) Scientific review.--The Secretary of the Interior, the 
     Secretary of Agriculture, and the Administrator of the 
     Environmental Protection Agency shall conduct a joint 
     scientific review, within one year after the date of 
     enactment of this Act, to evaluate how sources of biomass 
     from Federal lands could contribute to the goals of 
     increasing America's energy independence, protecting the 
     environment, and reducing global warming pollution.
       (2) Modification authority.--Based on the scientific 
     review, the agencies may, by rule, modify the definition of 
     ``renewable biomass'' from Federal lands in sections 
     211(o)(1)(I) and 700 of the Clean Air Act and section 610 of 
     the Public Utility Regulatory Policies Act of 1978 as 
     appropriate to advance the goals of increasing America's 
     energy independence, protecting the environment, and reducing 
     global warming pollution.

  The SPEAKER pro tempore. After 3 hours of debate on the bill, as 
amended, with 2\1/2\ hours equally divided and controlled by the Chair 
and ranking minority member of the Committee on Energy and Commerce and 
30 minutes equally divided and controlled by the Chair and ranking 
minority member of the Committee on Ways and Means, it shall be in 
order to consider a further amendment in the nature of a substitute 
printed in part B of the report, if offered, by the gentleman from 
Virginia (Mr. Forbes) or his designee, which shall be considered read, 
and shall be debatable for 30 minutes, equally divided and controlled 
by the proponent and an opponent.
  The gentleman from California (Mr. Waxman) and the gentleman from 
Texas (Mr. Barton) each will control 1 hour and 15 minutes. The 
gentleman from New York (Mr. Rangel) and the gentleman from Michigan 
(Mr. Camp) each will control 15 minutes of debate on the bill.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. WAXMAN. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
on the legislation under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. WAXMAN. Madam Speaker, I yield myself such time as I may consume.
  Today we are taking a decisive and historic action to promote 
America's energy security and to create millions of clean-energy jobs 
that will drive our economic recovery and long-term growth.
  This bill, when enacted into law, will break our dependence on 
foreign oil, make our Nation the world leader in clean-energy jobs and 
technology, and cut global warming pollution. As a result of these new 
policy settings, we will create millions of clean-energy jobs for 
America and restore our technological leadership in clean energy. We 
are also protecting consumers.
  The bill tackles big problems that have been ignored for far too 
long. It proposes solutions that will transform our economic and clean-
air environment.
  There is a remarkable coalition behind this bill. Electric utilities 
support the bill. Manufacturers support the bill. Farmers support the 
bill, and so do the Nation's leading environmental organizations, labor 
unions, and faith-based groups.
  There are many Members responsible for this remarkable coalition. On 
the Energy and Commerce Committee, John Dingell helped forge 
compromises with the auto industry. Rick Boucher developed ideas that 
will provide a future for coal. Mike Doyle addressed the concerns of 
the steel industry and other trade-vulnerable industries. The chairman 
of the Ways and Means Committee worked with us to make sure that the 
interest of low-income families are fully protected. And the chairman 
of the Agriculture Committee made sure the legislation addresses the 
concerns of farmers and makes them part of our energy future.
  The need to act is clear and urgent. There is a national security 
imperative to act. This legislation at long last begins to break our 
addiction to imported foreign oil and put us on a path to true energy 
security.
  There is a scientific imperative to act. The evidence on global 
warming, on the consequences of carbon emission is overwhelming, and we 
have based our bill on the science. And there is a moral imperative to 
act. We have obligations to protect and preserve the environment for 
our children and the generations that follow.
  And there is an economic imperative to act. This legislation is an 
enormous jobs bill for America. It will promote investment and growth 
for decades ahead, creating jobs for the new-energy economy of the 21st 
century.
  People in industry have told us that as soon as this legislation 
becomes law, we will find billions of dollars invested in 
infrastructure over the next 5 years. We can see an incredible lost 
opportunity if we don't act now. There are amazing developing new 
technological centers around the U.S., and we can see those jobs going 
overseas and that technological superiority going overseas as well.
  And this bill is affordable. Contrary to what we will hear from our 
friends on the other side of the aisle, the Congressional Budget Office 
found that

[[Page 16669]]

this legislation will cost households an average of only $175 in 2020, 
less than 50 cents a day. EPA's analysis put the cost at 22 to 30 cents 
a day, less than the cost of a single postage stamp, while lowering 
utility bills by 7 percent.
  This bill is a tremendous opportunity to prevent a dangerous threat 
while creating millions of new jobs and driving economic growth. It 
will end our dependence on foreign oil and keep us more secure. This 
bill will drive a new era of sustainable growth and innovation, and I 
urge all Members to support it.

                                         House of Representatives,


                                   Committee on the Judiciary,

                                    Washington, DC, June 24, 2009.
     Hon. Henry A. Waxman,
     Chairman, Committee on Energy and Commerce, House of 
         Representatives, Washington, DC.
       Dear Chairman Waxman: This is to advise you that, as a 
     result of your having consulted with us on provisions in H.R. 
     2454, the American Clean Energy and Security Act of 2009, 
     that fall within the rule X jurisdiction of the Committee on 
     the Judiciary, we are able to agree to waive seeking any 
     formal referral of the bill, in order that it may proceed 
     without delay to the House floor for consideration.
       The Judiciary Committee takes this action with the 
     understanding that by forgoing further consideration of H.R. 
     2454 at this time, we do not waive any jurisdiction over 
     subject matter contained in this or similar legislation. We 
     reserve the right to seek appointment of an appropriate 
     number of conferees to any House-Senate conference involving 
     this important legislation, and request your support if such 
     a request is made.
       I would appreciate your including this letter in the 
     Congressional Record during consideration of the bill on the 
     House floor. Thank you for your attention to our requests, 
     and for the cooperative relationship between our two 
     committees.
           Sincerely,
                                                 John Conyers, Jr.
     Chairman.
                                  ____

         House of Representatives, Committee on Science and 
           Technology,
                                    Washington, DC, June 19, 2009.
     Hon. Henry A. Waxman,
     Chairman, Committee on Energy and Commerce, House of 
         Representatives, Rayburn House Office Building, 
         Washington, DC.
       Dear Chairman Waxman: I write to you. regarding H.R. 2454, 
     the American Clean Energy and Security Act of 2009. This 
     legislation was initially referred to the Committee on Energy 
     and Commerce and in addition to the Committees on Foreign 
     Affairs, Financial Services, Education and Labor, Science and 
     Technology, Transportation. and-Infrastructure, Natural 
     Resources, Agriculture, and Ways and Means.
       H.R. 2454 was reported to the House by the Committee on 
     Energy and Commerce on June 5, 2009. I recognize and 
     appreciate your desire to bring this legislation before the 
     House in an expeditious manner, and, accordingly, I will 
     waive further consideration of this bill in Committee. 
     However, agreeing to waive consideration of this bill should 
     not be construed as the Committee on Science and Technology 
     waiving its jurisdiction over H.R. 2454.
       Further, I request your support for the appointment of 
     Science and Technology Committee conferees during any House-
     Senate conference convened on this, or any similar 
     legislation. I also ask that a copy of this letter and your 
     response be placed in the Congressional Record during 
     consideration of this bill on the House floor.
       I look forward to working with you as we prepare to pass 
     this important legislation.
           Sincerely,
                                                      Bart Gordon,
     Chairman.
                                  ____

                                         House of Representatives,


                             Committee on Energy and Commerce,

                                    Washington, DC, June 24, 2009.
     Hon. Bart Gordon,
     Chairman, House Committee on Science and Technology, 
         Washington, DC.
       Dear Chairman Gordon: Thank you for your letter regarding 
     H.R. 2454, the ``American Clean Energy and Security Act of 
     2009.'' The letter noted that certain provisions of the bill 
     are within the jurisdiction of the Committee on Science and 
     Technology under rule X of the Rules of the House.
       The Committee on Energy and Commerce recognizes the 
     jurisdictional interest of the Committee on Science and 
     Technology in these provisions. We appreciate your agreement 
     to forgo action on the bill, and I concur that this agreement 
     does not in any way prejudice the Committee on Science and 
     Technology with respect to the appointment of conferees or 
     its jurisdictional prerogatives on this bill or similar 
     legislation in the future.
       I will include our letters in the Congressional Record 
     during consideration of the bill on the House floor. Again I 
     appreciate your cooperation regarding this important 
     legislation.
           Sincerely,
     Henry A. Waxman.
                                  ____

                                         House of Representatives,


                             Committee on Energy and Commerce,

                                    Washington, DC, June 25, 2009.
     Hon. Edolphus Towns,
     Chairman, House Committee on Oversight and Government Reform, 
         Washington DC.
       Dear Chairman Towns: Thank you for your letter regarding 
     H.R. 2454, the ``American Clean Energy and Security Act of 
     2009.'' The letter noted that provisions of the bill are 
     within the jurisdiction of the Committee on Oversight and 
     Government Reform under rule X of the Rules of the House.
       The Committee on Energy and Commerce recognizes the 
     jurisdictional interest of the Committee on Oversight and 
     Government Reform in these provisions. We appreciate your 
     agreement to work with us without sequential referral, and I 
     concur that this agreement does not in any way prejudice the 
     Committee on Oversight with respect to its jurisdictional 
     prerogatives on this bill or similar legislation in the 
     future. I also agree to support a request by the Committee 
     with respect to serving as conferees on the bill, consistent 
     with the Speaker's practice in this regard.
       I will include our letters in the Congressional Record 
     during consideration of the bill on the House floor. Again I 
     appreciate your cooperation regarding this important 
     legislation.
           Sincerely,
                                                  Henry A. Waxman,
     Chairman.
                                  ____

         House of Representatives, Committee on Oversight and 
           Government Reform,
                                    Washington, DC, June 25, 2009.
     Hon. Henry A. Waxman,
     Chairman, House Committee on Energy and Commerce, Rayburn 
         House Office Building, Washington, DC.
       Dear Chairman Waxman: I am writing regarding H.R. 2454, the 
     ``American Clean Energy and Security Act of 2009''. I 
     appreciate your commitment and willingness to work with the 
     Committee on Oversight and Government Reform on the 
     provisions of H.R. 2454 that fall within the Oversight 
     Committee's jurisdiction. These provisions include matters 
     such as, but not limited to, federal procurement requirements 
     and the elevation of the Inspector General of the Commodity 
     Futures Trading Commission.
       In the interest of expediting consideration of H.R. 2454, 
     the Oversight Committee agreed to work with you on these 
     provisions without a sequential referral of the bill. This 
     should not be construed as a waiver of the Oversight 
     Committee's legislative jurisdiction over subjects addressed 
     in H.R. 2454 that fall within the jurisdiction of the 
     Committee.
       The Committee maintains its interest in any provisions of 
     the bill that are within the Committee's jurisdiction. I 
     therefore request your support for the appointment of 
     conferees from the Oversight Committee should H.R. 2454 or a 
     similar bill be considered in conference with the Senate.
       I also respectfully request that you include our exchange 
     of letters on this matter in the Congressional Record during 
     consideration of this legislation on the House floor.
       Thank you for your attention to these matters.
           Sincerely,
                                                   Edolphus Towns,
     Chairman.
                                  ____

                                         House of Representatives,


                             Committee on Energy and Commerce,

                                    Washington, DC, June 26, 2009.
     Hon. Howard L. Berman,
     Chairman, House Committee on Foreign Affairs,
     Washington DC.
       Dear Chairman Berman: Thank you for your letter regarding 
     H.R. 2454, the ``American Clean Energy and Security Act of 
     2009.'' The letter noted that certain provisions of the bill 
     are within the jurisdiction of the Committee on Foreign 
     Affairs under rule X of the Rules of the House.
       The Committee on Energy and Commerce recognizes the 
     jurisdictional interest of the Committee on Foreign Affairs 
     in these provisions. We appreciate your agreement to forgo 
     action on the bill, and I concur that this agreement does not 
     in any way prejudice the Committee on Foreign Affairs with 
     respect to its jurisdictional prerogatives on this bill or 
     similar legislation in the future. I also agree to support a 
     request by the Committee with respect to serving as conferees 
     on the bill, consistent with the Speaker's practice in this 
     regard.
       I will include our letters in the Congressional Record 
     during consideration of the bill on the House floor. Again I 
     appreciate your cooperation regarding this important 
     legislation.
           Sincerely,
                                                  Henry A. Waxman,
                                                         Chairman.

[[Page 16670]]

     
                                  ____
                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                    Washington, DC, June 26, 2009.
     Hon. Henry A. Waxman,
     Chairman, Committee on Energy and Commerce,
     Washington, DC.
       Dear Mr. Chairman: I am writing to you concerning H.R. 
     2454, the American Clean Energy and Security Act of 2009.
       This bill contains provisions within the Rule X 
     jurisdiction of the Committee on Foreign Affairs. In the 
     interest of permitting your Committee to proceed 
     expeditiously to floor consideration of this important bill, 
     I am willing to waive this Committee's right to mark up this 
     bill. I do so with the understanding that by waiving 
     consideration of the bill, the Committee on Foreign Affairs 
     does not waive any future jurisdictional claim over the 
     subject matters contained in the bill which fall within its 
     Rule X jurisdiction.
       Further, I request your support for the appointment of 
     Foreign Affairs Committee conferees during any House-Senate 
     conference convened on this legislation. I would ask that you 
     place this letter into the Congressional Record during floor 
     consideration of H.R. 2454.
       I look forward to working with you as we move this 
     important measure through the legislative process.
           Sincerely,
                                                 Howard L. Berman,
     Chairman.
                                  ____

                                         House of Representatives,


                             Committee on Energy and Commerce,

                                    Washington, DC, June 26, 2009.
     Hon. Howard L. Berman,
     Chairman, House Committee on Foreign Affairs,
     Washington DC.
       Dear Chairman Berman: Thank you for your letter regarding 
     H.R. 2454, the ``American Clean Energy and Security Act of 
     2009.'' The letter noted that certain provisions of the bill 
     are within the jurisdiction of the Committee on Foreign 
     Affairs under rule X of the Rules of the House.
       The Committee on Energy and Commerce recognizes the 
     jurisdictional interest of the Committee on Foreign Affairs 
     in these provisions. We appreciate your agreement to forgo 
     action on the bill, and I concur that this agreement does not 
     in any way prejudice the Committee on Foreign Affairs with 
     respect to its jurisdictional prerogatives on this bill or 
     similar legislation in the future. I also agree to support a 
     request by the Committee with respect to serving as conferees 
     on the bill, consistent with the Speaker's practice in this 
     regard.
       I will include our letters in the Congressional Record 
     during consideration of the bill on the House floor. Again I 
     appreciate your cooperation regarding this important 
     legislation.
           Sincerely,
                                                  Henry A. Waxman,
     Chairman.
                                  ____

         House of Representatives, Committee on Science and 
           Technology,
                                    Washington, DC, June 25, 2009.
     Hon. Henry A. Waxman,
     Chairman, Committee on Energy and Commerce,
     Washington, DC.
       Dear Chairman Waxman: I write to you regarding Congressman 
     Boccieri's amendment to the amendment in the nature of a 
     substitute to H.R. 2454, the American Clean Energy and 
     Security Act of 2009.
       It is my understanding that you are seeking my support to 
     have this amendment made in order for floor consideration. I 
     will support this amendment being made in order, but only 
     with the understanding that the programs contained in this 
     amendment are within the sole jurisdiction of the Committee 
     on Science and Technology based on our Rule X jurisdiction 
     over the National Institutes of Standards and Technology. In 
     addition, I ask for your commitment that the Science and 
     Technology Committee will be given deference in any House-
     Senate conference on any matters relating to this provision 
     or any similar provision.
       I look forward to working with you as we prepare to pass 
     this important legislation.
           Sincerely,
                                                      Bart Gordon,
     Chairman.
                                  ____

                                         House of Representatives,


                             Committee on Energy and Commerce,

                                    Washington, DC, June 25, 2009.
     Hon. Bart Gordon,
     Chairman, Committee on Science and Technology, Washington, 
         DC.
       Dear Chairman Gordon: Thank you for your letter regarding 
     Congressman Boccieri's amendment to the amendment in the 
     nature of a substitute to H.R. 2454, the American Clean 
     Energy and Security Act of 2009.
       I agree that the programs contained within this amendment 
     would receive an exclusive referral to the Committee on 
     Science and Technology. I also agree that the inclusion of 
     this provision in H.R. 2454 should not be construed to give 
     the Committee on Energy and Commerce a jurisdictional claim 
     to the provision. In addition, I agree to defer to the 
     Science and Technology Committee in any House-Senate 
     conference on any matters relating to this provision or any 
     similar provision.
       I appreciate your support of this amendment, and I 
     appreciate your cooperation regarding this important 
     legislation.
           Sincerely,
                                                  Henry A. Waxman,
                                                         Chairman.

  I reserve the balance of my time.
  Mr. BARTON of Texas. Madam Speaker, I ask unanimous consent that the 
ranking member of the Agriculture Committee, the gentleman from 
Oklahoma (Mr. Lucas), control the first 15 minutes of debate on the 
minority side.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. LUCAS. Madam Speaker, I thank the gentleman from Texas, and I 
yield myself such time as I may consume.
  The Waxman-Markey bill promises to destroy our standard of living and 
the quality of life with higher energy costs, higher food prices, and 
lost jobs. The bill is the single largest economic threat to our 
farmers and ranchers in decades. We have more than 115 agricultural and 
food groups who publicly oppose this bill as of today, and I ask that 
the list be entered in the Record.
  Do you know why? The greatest threat to our agricultural producers is 
ignored. Under H.R. 2454, input costs will escalate as a direct result 
of the energy tax. Meanwhile, the markets for their crops will shrink 
because of foreign competitors whose governments will not place burdens 
on their farmers. They will be able to undersell us.
  And what about the billions of dollars annually that farmers are 
supposed to garner selling offset credits? Many farmers will not be 
able to participate. Soil sequestration of carbon was going to be the 
way for farmers to generate credits, but if the producer started soil 
tillage practices before 2001, they will be ineligible to participate.
  The amendment does not exempt agriculture from performance standards 
in the bill, which means the EPA could tell our producers how to manage 
their farms.
  This bill will tax you. This bill will destroy the livelihoods of 
those who live and work in rural America, those who work every day to 
consistently provide our Nation and the world with a safe, affordable, 
abundant food and fiber supply. Agriculture sits squarely in the 
crosshairs of this bill because it is energy intensive. Whether it is 
the fuel for the tractor, the fertilizer for the crops, or the delivery 
of food to the grocery store, agriculture uses a great deal of energy 
throughout production and processing.
  Although USDA hasn't devoted any time or resources to complete an 
economic analysis of how this bill will impact farmers, the Heritage 
Foundation has. A recent study from the Heritage Foundation revealed 
that by the year 2035, the average net income for farms will be 
decreased by 57 percent. And also by 2035, gasoline and diesel costs 
are expected to be 58 percent higher and electric rates 90 percent 
higher. For example, residents in Oklahoma can expect their electric 
rates to increase by $300 million.
  So why are we doing this bill? So the U.S. can lead on climate change 
in the world? We can lead when China and India have refused to 
participate? We can lead when Europe is willing to do half of what this 
bill calls for? We can lead when the rest of the developing world is 
unable to do anything at all about climate change?
  Some of my idealistic colleagues will say we have to set a standard 
for the rest of the world. But I say I will not make any constituents 
poor--poorer--so that others can get richer at our expense. My friends, 
this is the wrong bill at the wrong time for the wrong reason.
  Madam Speaker, I reserve the balance of my time.
  Mr. WAXMAN. Madam Speaker, at this time I am delighted to yield to 
the gentleman from Massachusetts (Mr. Markey), the chairman of the 
Subcommittee on Energy and the Environment as well as the Select 
Committee on Global Warming. He has played the fundamental role of 
shepherding this bill through our committee and working to get it to 
the floor today. I yield to Mr. Markey 3 minutes.

[[Page 16671]]


  Mr. MARKEY of Massachusetts. I thank the gentleman from California, 
and I thank him and his staff for the outstanding leadership and vision 
which he has provided on this legislation. This is the culmination of a 
career of work for the gentleman from California, and it is my honor to 
have been allowed to partner with him in order to construct this 
legislation that we bring to the floor here today.
  I want to thank, as the gentleman from California has noted, the 
other Members who have worked on this legislation: Mr. Dingell, Mr. 
Boucher, Mr. Doyle, Mr. Inslee, Mr. Green, Mr. Butterfield, Mr. Stupak, 
Mr. Rush. So many Members, including Members off the committee like 
Henry Cuellar from the State of Texas who worked with us on natural 
gas-related issues. We would not be here unless we had the cooperation 
of so many Members across the full spectrum of the House.
  During this process, we have received valuable input and expertise 
from other leaders in the House, like Chairman Rangel on trade issues, 
Chairman Peterson on agriculture issues, amongst, again, many others.
  The legislation we have before us today is the most important energy 
and environment legislation to ever have been considered in the history 
of the United States. The consequences for our country are great unless 
we act to deal with these issues.
  This legislation sets a new course for our country, creating millions 
of new, clean-energy jobs while reducing our dependence upon imported 
oil. And when it becomes law, and it will, for the first time in the 
history of the United States Congress, for the first time in the 
history of our country, we will put enforceable limits on global 
warming pollution.
  At its core, however, this is a jobs bill. It will create millions of 
new, clean-energy jobs in whole new industries with incentives to drive 
competition in the energy marketplace. It sets ambitious and achievable 
standards for energy efficiency and renewable energy from solar, wind, 
geothermal, biomass so that by 2020, 20 percent of America's energy 
will be clean.
  It saves consumers money by updating efficiency standards for new 
buildings, appliances, and lighting systems. It invests $10 billion a 
year in energy efficiency programs in States across this country.
  The SPEAKER pro tempore. The gentleman's time has expired.
  Mr. WAXMAN. Madam Speaker, I yield the gentleman an additional 
minute.
  Mr. MARKEY of Massachusetts. And it starts the much-needed process of 
making our electric grid a smart grid so we can plug in the hybrid and 
electric cars of the future into an advanced, efficient energy network 
that by the year 2030 we will be raising a generation of children who 
know not how to receive gasoline at a gasoline station but, rather, by 
plugging their cars into a plug so that the electricity that we are 
generating ensures that those vehicles are being run for the benefit of 
our people.
  This is a revolution. This is a moment in history. This is what the 
American people were calling for in the election of 2008, a fundamental 
change that breaks our dependence upon imported oil, creates millions 
of new jobs, reduces the amount of pollution that we send up into the 
atmosphere, and points us in a new direction in our country that breaks 
with the pattern of cyclical dependence on imported oil coming from 
OPEC that holds our Nation hostage.
  I urge an ``aye'' vote on this bill.
  Madam Speaker, I rise in strong support of H.R. 2454, the Waxman-
Markey American Clean Energy and Security Act.
  I want to start by thanking the Chairman of the Energy and Commerce 
Committee and my partner in this legislation, Henry Waxman. He and I 
and our staffs have worked tirelessly on this bill, and his leadership, 
patience and fortitude have been remarkable.
  And I want to thank all of my Energy and Commerce colleagues, 
especially Rick Boucher, John Dingell, Mike Doyle, Jay Inslee, Gene 
Green, GK Butterfield, Bart Stupak and so many others. And special 
thanks to Speaker Nancy Pelosi on her outstanding leadership on these 
issues since she became Speaker.
  And during this process we have received valuable input and expertise 
from other leaders in the House like Chairman Rangel on trade issues 
and Mr. Peterson on agriculture issues.
  The legislation we have before us today is the most important energy 
and environmental legislation in the history of our country. It sets a 
new course for our country, one that steers us away from foreign oil 
and towards a path of clean American energy.
  It will create millions of new clean energy jobs while reducing our 
dependence on foreign oil.
  And when it becomes law, it will, for the first time in the history 
of the United States Congress, put enforceable limits on global warming 
pollution.
  I also want to take time to commend my colleague John McHugh for his 
outstanding leadership on acid rain and air pollution control.
  His state and my state both share a common problem of transported air 
pollution which falls in New York and New England as acid rain.
  John McHugh has worked tirelessly to protect public health and the 
environment from the deleterious effects of air pollution, especially 
the problems of acid rain and toxic mercury pollution.
  Reducing emissions of greenhouse gases must be done immediately to 
stop global warming, but we must also continue to reduce emissions of 
NOX SOX and mercury.
  The technologies that we will use to reduce global warming pollution 
will also reduce other pollutants that kill our citizens and damage our 
environment.
  We need to get the programs, including the Clean Air Interstate Rule 
and facility-specific mercury regulations, back on track.
  Representative McHugh has introduced H.R. 1841, legislation that 
would help protect public health and fight acid rain.
  That legislation describes well the problems we face today in 
fighting acid rain, soot and smog and sets forth thoughtful solutions 
to those problems. I agree with the gentleman that:
  (1) reductions of atmospheric sulfur dioxide and nitrogen oxide from 
utility plants, in addition to the reductions required under the Clean 
Air Act (42 U.S.C. 7401 et seq.), are needed to reduce acid deposition 
and its serious adverse effects on public health, natural resources, 
building structures, sensitive ecosystems, and visibility; (2) sulfur 
dioxide and nitrogen oxide contribute to the development of fine 
particulates, suspected of causing human mortality and morbidity to a 
significant extent; (3) regional nitrogen oxide reductions of 75 
percent in the Eastern United States, in addition to the reductions 
required under the Clean Air Act, may be necessary to protect sensitive 
watersheds from the effects of nitrogen deposition; (4) since the Clean 
Air Act Amendments of 1990 were enacted, some acidic lakes in the 
Adirondacks in the State of New York have started to slowly show 
chemical recovery from acid rain, demonstrating that sulfur dioxide and 
nitrogen oxide regulations can be implemented in a cost-effective 
manner, but the recovery is progressing at a slower rate than 
originally intended; (5) nitrogen oxide is highly mobile and can lead 
to ozone formation hundreds of miles from the emitting source; (6) on 
March 10, 2005, the Environmental Protection Agency (EPA) issued the 
Clean Air Interstate Rule (CAIR) to require additional reductions in 
sulfur dioxide and nitrogen oxide in 28 Eastern States and the District 
of Columbia; (7) these reductions represent approximately a 70 percent 
reduction in sulfur dioxide and a 60 percent reduction in nitrogen 
oxide in the affected States; (8) on July 11, 2008, the United States 
Court of Appeals for the District of Columbia Circuit vacated CAIR and 
on December 23, 2008, the same court remanded the rule back to the EPA 
without vacature; (9) fossil fuel-fired electric generating units emit 
approximately 1/3 of the total mercury emissions in the United States; 
(10) mercury is considered a neurotoxin which can bioaccumulate as it 
moves its way up the food chain and is especially harmful to young 
children and developing fetuses; (11) according to the EPA, there were 
3,080 fish advisories for mercury in 2006; there are over 90 fish 
advisories for mercury in New York alone, with blanket warning for the 
Adirondack and Catskill Mountains; (12) on March 15, 2005, EPA issued 
the Clean Air Mercury Rule (CAMR), which for the first time sought to 
regulate mercury emissions from power plants, but used a less 
restrictive cap-and-trade approach for this very harmful substance and 
would take a full decade to implement; (13) on February 8, 2008, the 
United States Court of Appeals for the District of Columbia Circuit 
vacated CAMR; and (14) on February 23, 2009, the Supreme Court denied a 
request to reconsider the decision.

[[Page 16672]]

  This bill includes a study on the effects of different carbon 
reduction strategies on reducing emissions of NOX, 
SOX and mercury. Such a study will ensure that as we move to 
control greenhouse gas emissions, particularly from coal fired power 
plants that emit mercury, NOX and SOX, we do not 
lose the opportunity to implement the most cost effective ways of 
controlling soot, smog and mercury.
  This is exactly the type of very thoughtful work that John McHugh has 
done during his many years in Congress to protect public health and 
fight acid rain and I am proud to stand beside this champion of 
environmental protection as we move to pass this legislation.
  At its core, this is a jobs bill. It will create millions of new, 
clean energy jobs in whole new industries with incentives to drive 
competition in the energy marketplace.
  It sets ambitious and achievable standards for energy efficiency and 
renewable energy from solar, wind, geothermal and biomass, so that by 
2020, 20 percent of America's energy will be clean.
  It saves consumers money by updating efficiency standards for our new 
buildings and the appliances and lighting systems we use. It invests 
$10 billion a year in energy efficiency programs in states across the 
country.
  And it starts the much-needed process of making our electric grid a 
Smart Grid, so we can plug in the hybrid and electric cars of the 
future into an advanced, efficient, domestically-powered energy network 
that will give consumers more control of their power bill.
  It makes nearly $200 billion in investments in clean energy 
technologies, including $20 billion in vital clean energy research and 
development.
  And it does all this while nearly doubling the size of the economy by 
2030, remaining budget neutral, and costing the average American family 
less than a postage stamp a day--a small price to pay as we transition 
off foreign oil once and for all.
  By bringing competition and efficiency back to the energy 
marketplace, Waxman-Markey will deliver consumer savings. America's 
low-income families will actually benefit by $40 a year in 2020, and 
the energy efficiency policies alone will save American families more 
than $200 every year by 2030.
  This bill address a technological imperative to lead on clean energy, 
the economic imperative to compete in a global clean energy race, and 
the moral imperative to protect our planet and the rights of all to 
live and prosper for generations to come.
  This bill has the goals of the moon landing, the moral imperative of 
the Civil Rights Act, and the scope of the Clean Air Act, wrapped up in 
one.
  I believe this is the most important vote we will take in our lives. 
The entire world is watching us. Our children and grandchildren are 
watching us. We have a choice to make and the fate of the planet hangs 
in the balance.
  We cannot afford to be governed by fear and cling to the failed 
policies that have brought us to this crisis. As the President said 
yesterday: ``We cannot be afraid of the future, and we can't be 
prisoners of the past.''
  Scientists say that global warming is a dangerous man-made problem.
  Today we are saying clean energy will be the American-made solution.
  This is an historic bill. This is a historic vote. This is a historic 
choice.
  I urge my colleagues to support the Waxman-Markey American Clean 
Energy and Security Act. Vote ``aye.''

                              {time}  1300

  Mr. LUCAS. Madam Speaker, I recognize the gentleman from Virginia 
(Mr. Goodlatte) for 2 minutes.
  Mr. GOODLATTE. Madam Speaker, I rise in strong opposition to this 
bill.
  I agree with one thing the gentleman from Massachusetts had to say 
and, that is, this bill has very important consequences, but those 
consequences are devastating for the future of the economy of this 
country, and it's in pursuit of the fantasy of thinking that this 
legislation will cause us to be able to turn down the thermostat of the 
world by reducing CO2 gas emissions when China and India and 
other nations are pumping more and more CO2 gas into the 
atmosphere all the time.
  We would be far better served with legislation that devotes itself to 
developing new technologies before we slam the door on our traditional 
sources of energy like coal and oil and natural gas and nuclear power, 
the most CO2-free emission that we have; and this bill does 
nothing to promote it.
  It stifles the ability of the people of this country to have the kind 
of competitiveness they need in the world to be able to get inexpensive 
sources of energy. So I strongly oppose this legislation.
  You know, we, Republicans and Democrats, offered over 200 amendments 
to try to improve this bill. They made in order one. In shutting down 
this democratic process, the Speaker of the House has taken away the 
voice of the American people. The simple truth behind this legislation 
is it raises taxes, kills jobs, and will lead to more government 
intrusion.
  It is estimated this bill will raise electricity rates 90 percent, 
gasoline prices 74 percent, natural gas prices 55 percent--and that's 
in addition to the expected rise in all of those sources of energy 
because this Congress, for the last 2\1/2\ years, has refused to take 
up a real American energy plan to devote more to producing domestic 
sources of all of our traditional sources of energy and developing new 
sources.
  We support the effort for energy efficiency. We support the effort to 
promote new and alternative forms of energy. We do not support this 
kind of suicide for the American economy.
  I urge my colleagues to oppose this legislation.
  It would be true democracy to allow the people's representatives to 
have a say about what is in this legislation. However, committees with 
jurisdiction, including the Agriculture Committee, were not allowed to 
mark-up the bill and make changes.
  The simple truth behind this legislation--it raises taxes, kills jobs 
and will lead to more government intrusion. Many have said the 
``Peterson compromise'' is a win for farmers. Let me be clear, this 
legislation is not a win for American famers. Agriculture is an energy 
intensive industry, and this legislation will make the cost of energy 
even higher for everyone.
  In effect this legislation turns off the ability to produce energy 
from reliable sources in favor of energy technologies that have not 
proven that they can meet the energy demands of our nation. We cannot 
ignore that America's economy is intrinsically linked to the 
availability and affordability of energy. During this economic slow-
down we should adopt policies that seek to rebuild our economy and 
create more jobs. We need reliable and affordable energy supplies. 
Unfortunately, cap and trade legislation would only further cripple our 
economy.
  Mr. WAXMAN. Madam Speaker, I want to yield now to the gentleman who 
had been the chairman of the Energy Subcommittee on our full committee 
last Congress and who was instrumental in getting the first draft of 
the legislation that we worked off, but more importantly, as a 
knowledgeable individual of this area and from a constituency that has 
a special concern about the problems, he was able to negotiate with us 
so that we could reach some of the accommodations in this legislation 
that has made it a much better bill.
  I yield, with great admiration, 5 minutes to the gentleman from 
Virginia (Mr. Boucher).
  Mr. BOUCHER. I thank the gentleman from California for yielding and 
congratulate him on the tremendous leadership that he has shown in 
bringing this measure to the House floor this afternoon.
  Madam Speaker, I rise in strong support of the bill, and I urge its 
approval by the House. It achieves broad reductions in greenhouse 
gases, enhances America's energy security, and by placing a price on 
carbon dioxide emissions, will unleash investments in clean-energy 
technologies that will create millions of new American jobs.
  These energy technologies will evolve from America's laboratories; 
they will be deployed at home; they will be exported around the world; 
they will be the foundation for our next technology revolution. And it 
all starts here with passage today of the Clean Energy Security Act.
  Approximately 80 percent of the electricity in the district that I 
represent is coal-generated. Coal production is one of our region's 
major industries, and it is a major employer of our constituents. Not 
surprisingly, my focus in the shaping of the bill in the Energy and 
Commerce Committee was to keep electricity rates affordable and to 
enable utilities to continue using coal,

[[Page 16673]]

which accounts for fully 51 percent of America's electricity 
generation. Both of these goals have been achieved in the bill that is 
before us today.
  Electricity rates will be only modestly affected. The nonpartisan 
Congressional Budget Office says that by 2020, the cost of the entire 
program for the typical American family will be $175 per year. The 
Environmental Protection Agency projects that the nearer-term cost for 
the typical family from all elements of this legislation will be 
between $80 and $110 per year; that's about 20 cents a day for the 
typical American family. And so the claims by the opponents that this 
legislation will impose enormous electricity price increases are simply 
wrong.
  The Environmental Protection Agency projects that by 2020, the usage 
of coal in our economy will grow as compared to today's usage. Now, 
that may seem somewhat counterintuitive in a bill that regulates 
greenhouse gas emissions, so let me repeat that: the EPA projects that 
by 2020, coal usage in America, under the terms of this bill, will 
actually grow.
  As transportation electrifies and the demand for electricity 
increases, coal, our most abundant fuel, will still be the fuel of 
choice to meet that rising demand. The claims of opponents that the 
CO2 controls under the bill will force utilities to 
surrender coal use, causing an overreliance on natural gas with 
attendant broad economic harm to the Nation, are also simply wrong.
  This is a responsible measure. It is carefully balanced; it reduces 
greenhouse gases by 83 percent by the year 2050 as compared to 2005 
levels; it keeps electricity rates affordable; it enables coal usage to 
grow as the demand for electricity increases nationwide; and it opens 
the door to a more secure energy future and the creation of millions of 
new jobs, innovating, deploying and exporting to the world the new, 
low-carbon-dioxide-emitting technologies that will power our energy 
future.
  Now, these are sound reasons to approve the bill; but for those who 
still harbor doubts, let me make a more practical argument to vote for 
passage.
  In March of 2007, the Supreme Court held that carbon dioxide is a 
pollutant. Under that ruling, and the terms of the existing Clean Air 
Act, the Environmental Protection Agency is now effectively required to 
regulate CO2 emissions, and so Federal regulation for 
greenhouse gases is now inevitable. It is not a question of whether we 
are going to have regulation. The only question is whether the 
regulation will be our carefully balanced, congressionally adopted, 
economically sustainable regulation, as contained within the bill 
before us today, or whether we will have EPA's regulation under the 
blunt instrument of the Clean Air Act where economic considerations 
cannot be fully waived.
  Given that choice, and the path this bill charts for affordable 
electricity, for increased coal use, and for new job creation, I would 
urge the Members to make the reasonable decision to approve today the 
Clean Energy Security Act.
  Mr. LUCAS. Madam Speaker, I yield 2 minutes to the gentleman from 
Kansas (Mr. Moran).
  Mr. MORAN of Kansas. I thank the gentleman for yielding.
  Madam Speaker, there is an assertion, a story around Congress today 
that with the adoption of the Peterson amendment, the negotiations 
between the chairman of the Agriculture Committee and the chairman of 
the Commerce Committee, that this bill somehow now becomes acceptable, 
something advantageous for those of us who represent rural America. I 
can assure my colleagues, Republican or Democrat, who come from rural 
America and who represent agricultural interests that nothing could be 
further from the truth. While the Peterson amendment substantially 
improves the bill, at least modestly improves the bill, the end result 
is nothing but something that is disadvantageous and negative for rural 
economies.
  Agriculture had thought at one point in time there would be something 
they could gain from sequestering carbon in the soil, and yet this bill 
still provides no assurance that the EPA--not the Department of 
Agriculture, but that the EPA will allow that to occur. If they would, 
then the Department of Agriculture is involved; but once again, 
agriculture is not even mentioned in this bill in regard to offsets.
  In addition to that, the electric cooperatives are still 
disadvantaged. If you come from rural America, the allowances that this 
bill allows are advantages to those who live on the west and east 
coasts, and yet those of us who represent some of the poor areas of the 
country, we will be transferring our income and wealth to those coasts.
  This bill, in my opinion, is a jobs bill, as indicated by the 
gentleman from Massachusetts, but it is a jobs elimination bill. This 
bill creates a significant competitive disadvantage for American small 
business and agriculture as we try to compete in the global economy in 
which other countries do not abide by these caps, rules, or 
regulations.
  I would assert that during my time in Congress there is no piece of 
legislation that will be more damaging to the future of rural America, 
to the future of small farms and businesses than the bill that is 
before us today. This bill--a jobs bill, as described by the gentleman 
from Massachusetts--is a job elimination bill, not a job creation bill. 
I urge my colleagues, both Republicans and Democrats, who come from the 
Midwest, who come from rural America to vote ``no.''
  Mr. WAXMAN. Madam Speaker, it is my privilege now to yield 1 minute 
to a very important member of the committee, Mr. Engel.
  Mr. ENGEL. I thank the chairman for yielding to me, and I rise in 
support of this bill as I supported it in committee.
  I think this bill goes a great step in the right direction. It will 
revitalize our economy by creating millions of clean-energy jobs, 
increase our national security by reducing our dependence on foreign 
oil, and help preserve our planet by reducing greenhouse gas emissions.
  But I want to mention, as I did in committee, my disappointment that 
the bill does not contain strong enough language in terms of flex-fuel 
cars in this country. I believe very strongly that the United States 
needs to move towards cars manufactured in America that can run on 
methanol, ethanol, and gasoline. If you give gasoline competition with 
ethanol and methanol, I believe that it will reduce the price of 
gasoline. So I am disappointed that while the bill goes a step in that 
direction, it doesn't go totally in the direction that I would like to 
see.
  Yesterday, Energy Secretary Chu said all new cars should have flex-
fuel capacity in this country. And I would like to enter this into the 
Record from The Des Moines Register.
  Madam Speaker, flex-fuel vehicles would only cost $90 or $100 per 
car, and it would be very important to moving us in that direction.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman 1 minute.
  Mr. ENGEL. I thank the chairman.
  Just 6 months ago, the CEOs of GM, Chrysler and Ford appeared before 
the House Financial Services Committee, and each committed to making 50 
percent of their cars flex-fuel vehicles by 2012. They are reneging 
now, and I believe that we should have strong language to move them 
back to their original position. I really believe that flex-fuel cars 
are the way to go.
  But we have a bill before us, and the bill is much, much more 
positive than anything else. It is a big step in the right direction. 
And I think that our colleagues who are on the fence--as I pointed out, 
the bill doesn't give everything to everybody and it doesn't do nearly 
what I would like it to do, but I think it does enough so that we ought 
to move this country in the right direction to make ourselves energy 
independent, to reduce the warming of our planet, and to reduce the 
greenhouse gases.
  So I would urge my colleagues for a ``yes'' vote. We can work 
afterwards to make the bill better, we can work afterwards to have the 
policies that we want to see, but rejection of this bill would be a 
terrible step in the wrong direction.

[[Page 16674]]

  I urge my colleagues to vote ``yes.''

             [From the Des Moines Register, June 22, 2009]

            Chu: All New Cars Should Have Flex-Fuel Capacity

                          (By Thomas Beaumont)

       U.S. Energy Secretary Steven Chu said in Des Moines today 
     the nation's car manufacturers ought to make all new 
     automobiles able to run on E85 ethanol-blended fuel.
       But Chu said the government could face resistance should it 
     insist on the new standard, despite two of the nation's three 
     main automakers' having recently filed for bankruptcy 
     protection.
       Chu, in Iowa awarding the state a share of its federal 
     stimulus money, later said all pumps ought to offer at least 
     a blend of 15 percent ethanol.
       ``We should think about doing the following. I've been told 
     it costs about $100 in gaskets and fuel lines to turn a car 
     so that it can go all the way to E85,'' Chu said, addressing 
     public officials and news media at the Des Moines Botanical 
     Center.
       E85 is a blend of 85 percent ethanol and 15 percent 
     gasoline. Iowa is the nation's leading producer of ethanol.
       ``But a new car, it would only cost $100 out of $15,000. 
     Wouldn't it be nice to put in those fuel lines and gaskets so 
     that we can use any ratio we wanted,'' Chu added. ``It's just 
     a thought, I don't think you're going to get any objections 
     in this audience.''
       Chu stopped short of saying the Obama administration would 
     require the companies to build all vehicles as flex-fuel-
     ready.
       ``It's beginning to be discussed,'' Chu said. ``But, again, 
     it's one of those things where I think with virtually 
     anything, once the government steps in the natural tendency 
     is to resist government intervention.''
       General Motors and Chrysler have recently sought 
     bankruptcy. The federal government would become a majority 
     shareholder in GM.
       There is legislation pending in Congress that would require 
     all domestic automobiles to eventually make all vehicles 
     capable of running on E85.
       Monte Shaw, executive director of the Iowa Renewable Fuel 
     Association said the government's new financial stake in the 
     auto industry means it can require the higher renewable fuel 
     standard.
       ``Clearly, if the White House decided they wanted GM and 
     Chrysler to do this, they would do it,'' Shaw said. ``I think 
     it would be good. Once one company goes that way, I think it 
     puts pressure on the other automakers not to be left out.''

  Mr. LUCAS. Madam Speaker, I recognize the gentleman from Ohio (Mr. 
Latta) for 1 minute.
  Mr. LATTA. I thank the gentleman for yielding.
  Madam Speaker, I rise today in opposition to this massive national 
energy tax.
  You know, we are all for clean energy. And Republicans have put forth 
an all-of-the-above strategy, and that's the strategy we need to do in 
this country. We can't pick winners and losers.
  I represent a very interesting district in Ohio. Not only do I 
represent the largest manufacturing district in the State of Ohio, I 
represent the largest agricultural district. Ohio uses 87 percent of 
its coal for our generation. What this bill is going to do is kill jobs 
in Ohio, and we are struggling right now. It's tough.
  One of the things that a lot of people don't realize out there 
because we have so few farmers out there that are left, less than 1 
percent in Ohio, is that we have so many of our farmers, my relatives 
included, that not only work a full day on the farm, but they go out 
and work all night on another job. But we've got to have jobs going 
both ways parallel with each other.
  This bill is not going to help these people out there. This bill is 
going to kill jobs across this country. And when the Secretary of 
Agriculture was before us not too long ago, I posed this question: Is 
China going to comply with what we're going to do? And the answer was, 
Well, maybe not this month, or maybe not next month, but it's going to 
happen.
  The SPEAKER pro tempore. The gentleman's time has expired.
  Mr. LUCAS. I yield the gentleman an additional 15 seconds.
  Mr. LATTA. We can't put the American farmer behind the proverbial 
eight ball. We've got to be able to compete against the world, and this 
bill is going to kill that ability to do that.
  I thank the gentleman for yielding.

                              {time}  1315

  Mr. WAXMAN. Madam Speaker, it's my distinct honor to yield 2 minutes 
to the chairman emeritus of our committee who has been the leader in 
fashioning so many important legislative proposals that are now law and 
are serving our country so well, the gentleman from Michigan (Mr. 
Dingell).
  Mr. DINGELL. I thank my good friend from California for his kind 
remarks, and I express my appreciation to him.
  Madam Speaker, I rise in support of the Clean Energy Security Act. 
But before I address my remarks, I want to congratulate you on your 
distinguished service here and wish you well in the future and express 
my personal distress that you are leaving us.
  Now, my colleagues on the Republican side, they are very anxious to 
criticize the bill. And there are criticisms that can be had. There is 
not one of the 435 of us that could not come forward with statements in 
saying that the bill could be improved and that there are faults in the 
bill. Both of those statements are true.
  But the harsh fact of the matter is it is urgent that we commence 
acting upon this legislation. It is based largely on the 
recommendations of USCAP, which is a diverse group of environmental 
groups and industry with a shared desire for a commonsense bill to 
address climate change. That process began last year with the drafting 
of the initial versions of this legislation, which were taken and which 
were then handled by my friend from California. I would note that those 
proposals have undergone significant improvement by reason of the work 
of Members of this Congress and this committee.
  Now, there are some hard facts to be addressed. There's a scientific 
consensus that we need to address climate change quickly and 
effectively. We need and industry needs certainty. This bill gives 
certainty to American industry. Without this certainty new expansion 
and new investment in this difficult time is not going to occur. There 
will be jobs which will flow from this legislation.
  Actions by the Supreme Court, and I urge my colleagues to be scared 
to death of this----
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman an additional minute.
  Mr. DINGELL. Actions by the Supreme Court in a recent endangerment 
finding by EPA makes it critically important that we act. Otherwise, 
greenhouse gases will be regulated by EPA. And if you want something to 
shudder about, I beg you to take a look at that because we will see 
better than 300 different kinds of regulations coming from Federal and 
State bodies if we're charged with this.
  Now, the bill does protect the consumers. It's going to cost 
consumers about $175 a year. It will also protect American 
manufacturing, and there are provisions in the legislation for that. 
And it has, in addition to that, additional programs which will meet 
the concerns of all of our branches of industry--coal, electric 
utility, manufacturing, chemicals--and also the securities market, 
which will be controlled under an amendment offered by our good friend 
and colleague Mr. Stupak.
  I am happy that this bill does have a dedicated allowance for natural 
resource adaptation and significant protection in acquisition of lands.
  This is a good bill. I urge my colleagues to support it.
  Madam Speaker, I rise in support of the American Clean Energy and 
Security Act.
  Is the bill before us perfect? No. But I have long told my friends on 
both the right and the left, we must not let the perfect be the enemy 
of the good.
  The legislation before us is largely based on the recommendations of 
USCAP, a diverse group of environmental groups and industry with a 
shared desire for a commonsense bill to address climate change.
  One might ask why such a diverse group would agree on a matter like 
this. Well, the answer is three-fold:
  1. There is scientific consensus that we need to address climate 
change quickly and effectively.
  2. We need, and industry needs, certainty. Without this certainty, 
expansion and new investment is not going to happen.
  3. Actions by the Supreme Court which led to the recent endangerment 
finding by EPA makes it critically important we act. If we do

[[Page 16675]]

not, we will face regulation under the Clean Air Act--and I assure you, 
the Clean Air Act was not designed to regulate greenhouse gases.
  I am pleased with the provisions of the bill to protect consumers--
the legislation will cost consumers on average only $175 per year--and 
protect American manufacturing and pave the way for the green jobs of 
the future. In fact, my home state of Michigan just had some wonderful 
news today: General Electric has decided to locate a new research & 
development facility, working on renewable energy technologies and 
other green jobs in the 15th District, which I have the honor of 
representing. We have the best workers in the world in Michigan and I 
look forward to many more green job announcements just like this thanks 
to provisions in this bill. However, job protection and creation 
warrants a very watchful eye to ensure the United States does not face 
job leakage and these matters will need to be readdressed if we do see 
such consequences.
  We have seen remarkable innovations from our automakers and this bill 
builds on those successes by providing allowance values for retooling 
existing plants to make the cars of the future and new, green job 
creation here at home.
  I am very pleased the bill includes an amendment I offered to 
establish a Clean Energy Bank. As we transition to clean energy, we 
must fund the R&D as well as deployment of these energy sources to meet 
the mounting demand for zero-carbon technology to dramatically reduce 
our greenhouse gas emissions.
  Finally, I am very pleased that this bill includes a dedicated 
allowance for natural resource adaptation. The great conservationist 
and the 26th President of these United States, Theodore Roosevelt, 
taught us that conservation is a great moral issue--that it is our 
duty, as it insures the safety and continuance of the nation.
  This is a good bill and I urge my colleagues to support it.
  Mr. LUCAS. Madam Speaker, I wish to recognize the gentleman from 
Texas (Mr. Conaway) for 1 minute.
  Mr. CONAWAY. Madam Speaker, I too congratulate you on your long 
distinguished service.
  There's an old Western movie entitled ``Bad Day at Black Rock.'' 
Madam Speaker, if this bill passes today, this will be a bad day at 
Black Rock for America.
  This bill will raise energy costs. Our President has said they will 
skyrocket. Claims of higher coal usage at lower costs are nonsensical 
on their face. The sense of urgency is muted by the fact that we delay 
implementation of many of these provisions for years and years in order 
to convince people to vote for this nonsense. It has no meaningful 
effect.
  We all want to breathe clean air. We all want to drink clean water. 
God has put us on this Earth as responsible stewards of these 
resources, and we ought to use them responsibly. This bill does not do 
it. In fact, it does nothing good. The only meaningful thing that it 
might do is provide a relatively meaningless photo op for our President 
in December in Copenhagen as he stands to brag about what America has 
done while the leaders of India and China laugh at us behind his back.
  A vote for this bill is a vote to lower living standards for all 
Americans for the foreseeable future. I urge my colleagues to vote 
against this bill. It does nothing good.
  Mr. WAXMAN. Madam Speaker, I yield 1 minute to my colleague from 
California (Ms. Eshoo), who is a very important member for our 
committee.
  Ms. ESHOO. I thank our very distinguished chairman for yielding.
  First, Madam Speaker, congratulations to you and God speed.
  There may be no more critical issue facing our Nation today than that 
of our energy future and the desperate need for new policies that will 
dramatically and forever change how we live and work in our country. 
Our national security is irrevocably linked to it. Our economic 
stability depends on it. The future of our planet, the legacy of health 
and prosperity we all want to leave for our children cannot be assured 
without it. So it's time to take up this energy bill.
  In this season of days we are granted in this honorable institution, 
this is truly a historic moment. By passing this act, we are 
guaranteeing an investment of $190 billion in new, clean-energy 
technologies and energy efficiency, creating jobs, spurring on new 
industries, and fulfilling the desire of all Americans that each of us 
in our own way can make this a better world.
  In my home district of Silicon Valley, dozens of burgeoning companies 
at the cutting edge of green and clean-energy technology are poised for 
an explosion in innovation and healthy, sustainable economic growth.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. WAXMAN. I yield another 30 seconds to the gentlewoman.
  Ms. ESHOO. I thank the gentleman.
  It's a particular pride for me to have had the opportunity to work on 
this act and to influence some of its outcome. I'm proud that my own 
bill, H.R. 1742, the Electric Vehicle Infrastructure Act, which will 
allow State and local governments to apply for financial assistance for 
the deployment of regional infrastructure to support the widespread use 
of electric vehicles, is included.
  We are a hardworking people, Madam Speaker, who face the future with 
optimism and hope. This act embodies these qualities, a vehicle for our 
willingness to work hard, to innovate, to imagine a better future, and 
then to reach out and grasp it.
  Mr. LUCAS. Madam Speaker, I yield 1 minute to the gentleman from Iowa 
(Mr. King).
  Mr. KING of Iowa. I thank the gentleman from Oklahoma for yielding.
  Madam Speaker, first I would say that the canard of this court case 
that says the EPA will regulate CO2 regardless, it takes a 
little change in Interior approps to fix that. We're the United States 
Congress. We don't capitulate to cap-and-tax because a court made a 
ruling; we tell them what the American people think.
  Second, this bill freezes or rolls back oil, natural gas, coal, 
nuclear, and biofuels. We'll have less. We are not going to break 
dependency on foreign oil with less energy. Iowa no-till corn farmers, 
6.2 million acres; 5 million of them went in before 2001, and only 25 
percent of those that went in afterwards will be able to qualify 
because they rotate. So we're down to 4.8 percent of the guys doing it 
right. One out of 20 are going to get any benefit out of the Peterson 
amendment that's been incorporated into this bill.
  And, furthermore, when Speaker Pelosi set up the cap-and-trade and 
bought the carbon credits, I can't verify that any of that changed any 
behavior for the positive. The ones I could verify had already been in 
place.
  We've seen the example in Spain. It's a colossal mistake there, a 
political and an economic error. This could be the most colossal 
mistake ever made in the history of the United States Congress.
  Mr. WAXMAN. Madam Speaker, I am pleased at this point to yield 1 
minute to my good friend and colleague from southern California (Mrs. 
Capps).
  Mrs. CAPPS. Madam Speaker, I rise with great pride today to express 
my support for the American Clean Energy and Security Act.
  Over the last two Congresses, thanks to tremendous leadership, we 
have built a record on energy and climate policy that indicates that 
the time for action is now. America is ready. The world is watching. We 
must transition to a clean-energy economy so that we can create jobs, 
achieve energy independence, and protect our planet.
  We have before us a powerful, thorough, and effective bill. It 
includes a nationwide renewable electricity standard. It contains 
critical investments in energy efficiency. It requires immediate 
significant reductions in greenhouse gas emissions that are harming the 
health of our people and our planet.
  The bill also makes substantial investments in domestic, 
international, natural resource, and public health adaptations that are 
crucial to the continuing prosperity of our Nation and our world.
  Madam Speaker, to protect our health, to protect our economy, our 
national security, and our planet, we must enact comprehensive climate 
legislation and we must enact it now. We cannot sit idly by. I hope 
others will

[[Page 16676]]

join me in seizing this opportunity to transition our economy to a new, 
clean-energy economy.
  I urge a ``yes'' vote on this bill.
  Mr. LUCAS. Madam Speaker, once again I would like to yield 1 minute 
to the gentleman from Pennsylvania (Mr. Thompson).
  Mr. THOMPSON of Pennsylvania. I thank my friend from Oklahoma for 
yielding.
  I have more concerns with this legislation than I even have time to 
discuss. But since agriculture is Pennsylvania's number one industry 
and because I'm a member of the House Agriculture Committee, I would 
like to focus on the alarming effects cap-and-trade will have on the 
farmers in my home State.
  This legislation, through mandates, attempts to decrease our use of 
fossil fuels. The whole point of cap-and-trade is to make fossil fuels, 
or 85 percent of the energy we consume, more expensive. Fossil fuels 
are essential for energy and electrical generation and also are equally 
important to use as a feedstock in many goods that we utilize.
  Agriculture is an energy-intensive industry, and natural gas will be 
capped under this legislation. Natural gas is a basic ingredient in 
fertilizer, which is a building block for all of the food the U.S. 
supplies. We can't make our food without fertilizer, and we can't make 
fertilizer without natural gas.
  The dairy industry in my State is having a difficult time making 
profits because of falling milk prices. And while there are many 
reasons for low milk prices, energy costs are certainly part of that 
equation.
  This legislation will do nothing to reduce our carbon emissions or 
help Pennsylvania agriculture and will only cause more economic 
hardship for many small farmers and businesses.
  I urge my colleagues to reject this misguided measure.
  Mr. WAXMAN. Madam Speaker, I am pleased to yield 2 minutes to the 
gentleman from Texas (Mr. Gene Green), who played a very significant 
role in developing this legislation.
  Mr. GENE GREEN of Texas. Madam Speaker, like my colleagues, we will 
miss you and good luck in your new endeavor in the administration.
  Today the House is set to consider the first comprehensive climate 
program in the history of the House of Representatives, and I support 
H.R. 2454.
  This bill represents efforts to reach a consensus across our diverse 
membership and produce legislation that seeks to reduce greenhouse gas 
emissions both at home but also abroad. If Congress does nothing, 
greenhouse gas emissions could be regulated administratively through 
the EPA without input from Members that represent diverse 
constituencies nationwide.
  I represent the Port of Houston, a petrochemical complex that 
stretches along the Texas gulf coast and is home to thousands of 
chemical industry and petroleum refining jobs. We cannot allow the 
petrochemical and refining industries to migrate out of America. They 
are vital to our economy and to our national security, and we cannot 
outsource that capability.
  These energy-intensive industries could be left vulnerable to foreign 
competitors not facing carbon regulations if we do not carefully craft 
transitional policies to prevent job loss and strengthen U.S. 
industries at home.
  I want to thank Congressman Inslee and Congressman Doyle for putting 
forth a proposal to provide 15 percent of the free allowances to 
emission-intensive industries to address competitive concerns, 
especially in the chemical industry. If a manufacturing facility is 
energy intensive and trade exposed, allowances will be provided to that 
facility on a production output basis, providing rebates for both the 
direct and indirect costs of complying with the climate program. These 
rebates will level the playing field relative to imports while 
encouraging emission reductions.
  The bill also helps protects the U.S. domestic refining industry 
while creating a climate-change program. Our domestic refiners will 
face a competitive disadvantage with foreign competitors that are not 
subject to carbon regulations. U.S. refiners in this bill will receive 
2 percent of the allowances starting in 2014 and ending in 2026, plus 
an additional .25 percent for small business refiners.

                              {time}  1330

  That's over one-half of the projected 4 percent of refined emissions. 
This funding will help defray expenses associated with direct and 
indirect costs and their stationary source of emissions under the cap 
as well as help improve the efficiency of refineries through technical 
and feedstock changes.
  To level the playing field, foreign importers of refined oil must pay 
for carbon content of imported fuel, just as our domestic producers 
have to do, Madam Speaker.
  And that's why I think this bill is a good first step. If I were 
writing it, it would be different.
  Madam Speaker, today the House is set to consider the first 
comprehensive climate program in the history of the U.S. House of 
Representatives and I support H.R. 2454.
  This bill represents efforts to reach consensus across our diverse 
membership and produce legislation that seeks to reduce greenhouse gas 
emissions both at home and abroad.
  If Congress does nothing, greenhouse gas emissions could be regulated 
administratively through the EPA without input from Members that 
represent diverse constituencies nationwide.
  I represent the port of Houston, a petrochemical complex that 
stretches along the Texas Gulf Coast and is home to thousands of 
chemical industry and petroleum refining jobs.
  We cannot allow the petrochemical and refining industries to migrate 
out of America. They are vital to our economy, to our national 
security, and we cannot outsource this capability.
  These energy-intensive industries could be left vulnerable to foreign 
competitors not facing carbon regulations if we do not carefully craft 
transitional policies to prevent job loss and strengthen U.S. 
industries at home.
  I want to thank Congressman Inslee and Congressman Doyle for putting 
forward a proposal to provide 15 percent of free allowances to 
emissions-intensive industries to address competitiveness concerns, 
especially in the chemical industry.
  If a manufacturing facility is energy-intensive and trade-exposed, 
allowances will be provided to that facility on a production output 
basis, providing rebates for both the direct and indirect costs of 
complying with the climate program.
  These rebates will level the playing field relative to imports while 
encouraging emission reductions.
  The bill also helps protect the U.S. domestic refining industry while 
creating a climate change program.
  Our domestic refiners will face a competitive disadvantage with 
foreign competitors that are not subject to carbon regulations.
  U.S. refiners will receive 2 percent of allowances starting in 2014 
and ending in 2026, plus an additional .25 percent for small business 
refiners. That's over one-half of the projected 4 percent of refinery 
emissions.
  This funding will help defray expenses associated with the direct and 
indirect costs of their stationary source emissions under the cap, as 
well as help improve the energy efficiency of refineries through 
technological and feedstock changes.
  To level the playing field, foreign importers of refined oil must pay 
for the carbon content of imported fuel, as do domestic refiners.
  While I believe the refining industry could use additional 
assistance, and I hope any final agreement does so, this is a 
reasonable first step to protecting our energy infrastructure and 
keeping good-paying jobs here at home.
  These proposals, however, cannot substitute for the need for a strong 
international agreement with binding carbon reductions amongst the 
world's largest emitters, including developing countries.
  Mr. LUCAS. Madam Speaker, I yield myself the remainder of my time.
  The SPEAKER pro tempore. The gentleman has 3\3/4\ minutes remaining.
  Mr. LUCAS. Madam Speaker, my fellow Members, let me rise to conclude 
the House Agriculture Republican portion of this discussion this 
evening and remind my colleagues one more time that this bill has a 
tremendous effect on rural America and production agriculture. When 115 
farm groups send in letters, and food groups, expressing their 
opposition to the bill, that says something, 115 groups.
  Madam Speaker, I submit a list of these groups for the Record.

       Agriculture Groups Oppose to Waxman-Markey--as of June 26, 
     2009

[[Page 16677]]


       1. Agribusiness Association of Iowa
       2. Agricultural Retailers Association
       3. Agrium Inc.
       4. Alabama Farmers Federation
       5. American Agri-Women
       6. American Farm Bureau Association
       7. American Farmers & Ranchers
       8. American Feed Industry Association
       9. American Frozen Food Institute
       10. American Meat Institute
       11. American Plant Food Corporation
       12. AmeriFlax
       13. Associated Industries of Florida
       14. Beck' Superior Hybrids
       15. Brandt Consolidated
       16. CF Industries
       17. Chemical Industry Council of Illinois
       18. CHS Inc.
       19. Corn Producers Association of Texas
       20. D.B. Western, Inc.
       21. Far West Agribusiness Association
       22. Florida Chamber of Commerce
       23. Florida Farm Bureau Federation
       24. Florida Fertilizer & Agrichemical Association
       25. Florida Strawberry Growers Association
       26. Food Industry Environmental Council
       27. GROWMARK
       28. Hardee County Farm Bureau (FL)
       29. Hillsborough County Farm Bureau (FL)
       30. Illinois Farm Bureau
       31. Illinois Fertilizer & Chemical Association
       32. Indiana Beef Cattle Association
       33. Indiana Farm Bureau
       34. Indiana Grain & Feed Association
       35. Indiana Office of Energy Development
       36. Indiana Plant Food & Ag Chemicals Association
       37. Indiana Pork Producers Association
       38. Indiana Professional Dairy Producers
       39. Indiana State Department of Agriculture
       40. Indiana State Poultry Association
       41. Institute for Shortening and Edible Oils
       42. International Raw Materials, Ltd.
       43. J.R. Simplot Company
       44. Kansas Agribusiness Retailers Association
       45. Kansas Grain and Feed Association
       46. Minnesota Agri-Growth Council
       47. Minnesota Corn Growers Association
       48. Minnesota Crop Production Retailers
       49. Missouri Agribusiness Association
       50. Missouri Farm Bureau
       51. Montana Agricultural Business Association
       52. National Cattlemen's Beef Association
       53. National Chicken Council
       54. National Grain and Feed Association
       55. National Grange
       56. National Meat Association
       57. National Oilseed Processors Association
       58. National Pork Producers Council
       59. National Turkey Federation
       60. Nebraska Farm Bureau
       61. NCRA
       62. Nebraska Agri-Business Association
       63. New Mexico Peanut Growers Association
       64. North American Millers Association
       65. North Carolina Peanut Growers Association
       66. North Dakota Agricultural Association
       67. North Dakota Barley Council
       68. North Dakota Farm Bureau
       69. North Dakota Grain Dealers Association
       70. North Dakota Grain Growers Association
       71. North Dakota Soybean Growers Association
       72. North Dakota Stockmen's Association
       73. North Dakota Wheat Commission
       74. Northern Canola Growers Association
       75. Northern Pulse Growers Association
       76. Ohio Corn Growers Association
       77. Ohio Farm Bureau
       78. Ohio Poultry Association
       79. Ohio Rural Electric Cooperatives, Inc.
       80. Ohio Wheat Growers Association
       81. Oklahoma Ag Retailers Association
       82. Oklahoma Grain & Feed Association
       83. Oklahoma Peanut Commission
       84. Oklahoma Seed Trade Association
       85. Oklahoma Wheat Growers Association
       86. Panhandle Peanut Growers Association
       87. Peace River Valley Citrus Growers Association
       88. Peanut Growers Cooperative Marketing Association
       89. Polk County Farm Bureau (FL)
       90. PotashCorp
       91. Rocky Mountain Agribusiness Association
       92. Sarasota County Farm Bureau (FL)
       93. Society of American Florists
       94. South Carolina Fertilizer & Agrichemicals Association
       95. South Carolina Peanut Growers Association
       96. South Dakota Agri-Business Association
       97. South Dakota Farm Bureau
       98. South Dakota Grain & Feed Association
       99. Southern Crop Production Association
       100. Southwest Council of Agribusiness
       101. Terra Industries Inc.
       102. Texas Agricultural Cooperative Council
       103. Texas Cattle Feeders Association
       104. Texas Farm Bureau
       105. Texas Grain & Feed Association
       106. Texas Peanut Producers Board
       107. Texas Sheep & Goat Raisers Association
       108. Texas Wheat Producers Association
       109. The Andersons, Inc.
       110. The Fertilizer Institute
       111. The McGregor Company
       112. Todd Staples, Commissioner, Texas Department of 
     Agriculture
       113. Tom Farms (Kip Tom, CEO)
       114. United Egg Producers
       115. USA Rice Federation
       116. Virginia Peanut Growers Association
       117. W.B. Johnston Grain Co.
       118. Western Peanut Growers Association
       119. Western Plant Health Association
       120. Wyoming Stock Growers Association

  Madam Speaker, I would also be remiss if I didn't express my 
appreciation and the appreciation of my colleagues on the Republican 
side of the Agriculture Committee to Chairman Peterson. He made, we 
believe, good-faith efforts with Chairman Waxman to try to correct the 
worst features of this bill. Unfortunately, good faith in the 
legislative process doesn't always cure every problem.
  The fundamental underlying issue still is this bill will raise the 
cost of energy for production agriculture, an energy-intensive 
business. It will reduce our competitiveness with our competitors 
around the world, South America, Asia, Europe. But look at the way the 
so-called grand compromise on agriculture was put together. 
``Compromise'' is a phrase used in one of the electronic publications 
this morning.
  Indirect land use, where an agency of the Federal Government can 
determine how your corn farm or your wheat farm affects farms on other 
continents and tell you to change the way you do your business? Now, I 
know the bill says that can't happen for 5 years, and we will have a 
study and a moratorium for another year. But 6 years from now, 6 years 
from now, it comes at us like a brick bat.
  The section of the bill talking about farms being able to be rewarded 
for good stewardship, carbon sequestration and those kinds of matters, 
the bill says the amendment adopted, the practices can only be rewarded 
if they began after 2001. You heard my friend from Iowa talk about the 
percentage of corn farmers who adopted those good practices before 
2001.
  How do you explain to the folks back home that the good farmers, the 
good stewards, don't get anything, but the bad farmers who waited until 
they were shamed or embarrassed into adopting the best practices get 
rewarded?
  Renewable fuel. Yes, we protect facilities that were under 
construction or have been completed or in production in 2007 and 
before, but that doesn't apply to everything since then. If you have 
got a mature ethanol plant, you are in good shape. But does that mean 
no one else can build an ethanol plant?
  We, on the minority side of the Ag Committee, view ourselves as the 
conscience of the body. We have a responsibility to defend rural 
America and production agriculture. We thank Chairman Peterson for what 
he tried to accomplish, but we believe it is not enough to protect the 
future of farming and ranching and the folks out in rural America. 
That's why we have to be united in our opposition against this bill.
  I am a farmer by trade. I may not always be a Member of this body, 
but I am going home to Oklahoma. I can't vote for this and go home to 
Oklahoma.
  Mr. WAXMAN. Madam Speaker, I am pleased to yield to the vice chairman 
of the Commerce Committee, the gentlewoman from Colorado (Ms. DeGette) 
for 90 seconds
  Ms. DeGETTE. Madam Speaker, I rise today in support of this important 
energy and environmental legislation, probably the most important this 
body has ever considered.
  And I will say to my friends who say it's not enough, that we need to 
remember how important it is for us to put together a framework in 
place so that we can assure energy independence and create jobs.
  In Colorado, Madam Speaker, in 2004, our voters passed a renewable 
energy standard, the first time that it was done in any State by ballot 
initiative. Industry opposed it universally, but yet it passed 53-47 
percent. That standard was 10 percent by 2015, and we exceeded that 
standard within 2 years.

[[Page 16678]]

Two years later, we came back to the Colorado Legislature. We doubled 
that standard. It was bipartisan and industry supported it.
  When people see the wonderful framework we are putting in place today 
for energy independence, which will create jobs, they will embrace this 
concept. They will embrace the concept of becoming independent from 
foreign oil and making sure that we develop clean alternative sources 
of energy, which are going to benefit our children and our children's 
children.
  One last thing. According to the Congressional Budget Office, this 
bill will cost the typical family less than that of a postage stamp per 
day.
  And I will say, once we develop these clean alternative energy 
sources, we will benefit, because we will regain our place in the world 
as a leader in technology and as a leader in clean alternative sources 
of energy.
  I want to urge my colleagues to support this legislation, which 
relies on scientific evidence to set our Nation's policy.
  Mr. BARTON of Texas. Madam Speaker, I want to yield 3 minutes to the 
deputy ranking member of the Energy and Commerce Committee, Mr. Blunt 
of Missouri.
  Mr. BLUNT. I thank the gentleman for yielding.
  Madam Speaker, you and I came to the House of Representatives at the 
same time. We have often voted differently, but I have always 
appreciated your public service and will continue to and wish you well 
in the new responsibility that you are taking and well in the other 
announcement that you made today.
  I think this bill, Madam Speaker, heads the country very much in the 
wrong direction. It's the wrong direction for America. It's the wrong 
direction for our economy. It puts us at a competitive disadvantage. 
The Republican alternative that many Democrats could easily support 
would look for more American energy, would look for more ways to 
conserve the energy we use, and would invest in the future in a way 
that makes our energy future make sense.
  We have 28 percent to 30 percent of all the coal in the world. If 
this was something that the majority wanted to do, the majority would 
be saying, if this country could put a man on the Moon in a decade, we 
could find a way to use coal in a way that doesn't create an immediate 
penalty on every coal-producing utility in America. In Mr. Waxman's 
State, I have great respect for him, the primary sponsor of the bill, 
less than 4 percent of California's electricity comes from coal.
  In Mr. Markey's State, less than 24 percent of the electricity comes 
from coal. In Missouri, more than 85 percent of the electricity comes 
from coal, and we are not the top State. We are in the top 10. We will 
be affected by this dramatically, but so will everybody from, say, 
Pittsburgh to Wyoming.
  This is going to impact utility bills unfairly. It will impact job 
opportunity unfairly. And, frankly, the jobs we lose in our part of the 
country, and in the country generally, are not likely to relocate 
somewhere else in America. They are more likely--these manufacturing 
jobs use lots of energy--to locate in a country that has less 
environmental standards than we do, the ultimate lose-lose. We lose the 
jobs. You actually put more of these things in the air than you would 
otherwise, and Americans suffer because of that.
  In our State, the estimate is that utility bills would go up 40 
percent in the first 5 years, 80 percent in the first 10 years, and 
even more after the various allowances are gone. This is unfair to 
American families, and, frankly, the less you can afford to put in new 
windows, new insulation, new everything else, the harder a burden this 
is going to be.
  I urge my colleagues to vote this bill down and work together to have 
a better bill for America.
  Mr. WAXMAN. Madam Speaker, I want to yield to the gentleman from 
Pennsylvania (Mr. Doyle) a minute, with an option for another one, if 
he needs it. And I want to point out the essential role that he played 
in making sure this legislation protected those industries that are 
vulnerable to trade that might be at their disadvantage. I thank him 
for the work he has done.
  Mr. DOYLE. Madam Speaker, today we have a historic opportunity to 
create thousands of clean-energy jobs, to secure this country's energy 
future, and to give our kids and grandkids a brighter, cleaner planet. 
Madam Speaker, we do that while protecting our basic industries like 
steel, aluminum, cement, and our ratepayers, both residential, 
commercial and industrial.
  I was proud to work on this committee with my friend and colleague 
Jay Inslee to develop a formula that looks at our carbon intensive 
industries like steel, that have trade pressures, and level the playing 
field for them so that we don't lose jobs. This bill wasn't going to 
cause any jobs to be lost. This is a job-creating bill, and you don't 
need to take my word for it.
  I have a letter from the international president of the steelworkers 
union--people whose very jobs would be on the line if we didn't get 
this right--who endorses this bill, who says this bill will create more 
jobs for steelworkers in Pittsburgh.
  And we do that by rewarding efficiencies. We say to our carbon-
intensive industries, Be average in your sector. We will make you whole 
for the cost of this program.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
  Mr. DOYLE. For those industries that invest and become more 
efficient, we give them more rewards. We encourage efficiency in our 
markets at the same time, giving them a level playing field with their 
competitors. We do the same thing in the electricity markets.
  Every one of my constituents get their electricity from coal. We 
protect those ratepayers. Thirty-five percent of the allocations in 
this bill go towards protecting residential, commercial and industrial 
ratepayers. This is not a job loser. This is not a rate hike for 
consumers; $173 a year for the average family in America as a result of 
this bill. That's a small price to pay for a cleaner planet and more 
jobs for America.
  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the 
distinguished Representative from Washington State, Mr. Hastings.
  Mr. HASTINGS of Washington. I thank the gentleman for yielding.
  Madam Speaker, this bill was written in a fantasy land where 
unemployment isn't reaching 10 percent, thousands haven't lost homes to 
foreclosure, and millions haven't witnessed half their retirement 
savings disappear. By imposing this national energy tax and creating a 
massive new bureaucracy to regulate the entire economy, this bill will 
drive up the cost of doing business in America, sending jobs overseas 
to China and India, nations that flat out refuse to reduce their own 
carbon emissions.
  We are told America must lead by example. Are we to believe that 
after the government drives America's economy further into the gutter, 
the rest of the world will do the same?
  Madam Speaker, America should not be the first lemming to jump off 
the cliff just because Nancy Pelosi and Al Gore are convinced that 
China, India and Russia and others will follow us over the ledge. 
Republicans have an all-of-the-above energy plan to build more nuclear 
power and invest in cleaner alternative energies funded by drilling oil 
here in America. Yet, Madam Speaker, Democrats refuse to even allow a 
vote on this plan.
  So I urge my colleagues to vote ``no'' on this bill.
  Madam Speaker, this bill has been written in a fantasyland where 
unemployment isn't reaching 10 percent, thousands haven't lost their 
homes to foreclosure, and millions haven't witnessed half of their 
401k's and retirement savings disappear.
  By imposing a national energy tax, our economy will shrink in size, 
millions of jobs will be lost, energy costs will, to use the 
President's own word, ``skyrocket'', and gas prices will again reach 
record highs.
  By creating a massive new government bureaucracy to regulate the 
entire economy, this bill will drive up the cost of doing business in 
America, sending jobs overseas to countries

[[Page 16679]]

like China and India, nations that flat-out reject reducing their 
carbon emissions, and that are building coal-fired energy plants at a 
breakneck pace.
  Democrats are trying to impose a high-priced, gourmet energy plan 
that restricts and dictates what specific sources of energy America 
should use. What our country actually needs is Republicans' all-of-the-
above approach that says yes to nuclear power, yes to alternative 
energy, yes to wind and solar power, yes to energy from wood-waste and 
biomass, yes to hydro power, and, yes to opening more areas to drilling 
for oil and natural gas in America to reduce our vulnerability to 
spikes in prices at the pump because of turmoil in overseas oil 
nations.
  America's economy can't afford this Democrat plan to cherry-pick a 
few high-priced energy sources. Creating green jobs makes good sense, 
but creating nuclear jobs, drilling jobs, green jobs and all new energy 
jobs is far, far better for America's economy.
  America's economy is ailing, and enacting a new national energy tax 
is like a doctor ordering his sick patient to go stand outside in the 
cold rain. Our economy needs to recover, not be made sicker.
  We're told America must lead by example, and then the rest of the 
world will follow. Are we to believe that after the federal government 
drives America's economy further into the gutter, the rest of world 
will do the same?
  Yet, Democrats have refused to condition putting this national energy 
tax into force upon reciprocal action by China and the world's other 
nations.
  Madam Speaker, America should not be the first lemming to jump off 
the cliff just because Nancy Pelosi and Al Gore are convinced that 
China, India, Russia and others will follow us over the ledge.
  And what would this Democrat scheme do with the hundreds of billions 
of dollars taxed away from families and businesses? Shockingly, this 
bill would give away billions in foreign aid. In fact, this bill pays 
four times as much in foreign aid than it provides to the over two and 
half million Americans who will lose their jobs because of this bill. 
And on top of that foreign aid, it pays five times as much to countries 
to protect tropical trees than it does to help jobless Americans.
  We don't need the biggest job-killing tax in history to reduce carbon 
emissions and put in place cleaner energy sources.
  We can promote nuclear power that emits no carbon and we can invest 
in new alternative energies funded by revenues from simply getting our 
oil here in America rather than from volatile foreign nations.
  This is the Republicans' all-of-the-above energy plan--called the 
American Energy Act. Yet the Democrats refuse to even allow a vote on 
it.
  Democrats are forcing Congress to either accept or reject their 
national energy tax and high-priced, gourmet energy mandates. The only 
right choice to protect our economy and American jobs is to vote no.
  Mr. WAXMAN. Madam Speaker, I am pleased at this time to yield 1\1/2\ 
minutes to the gentleman from Illinois, who made sure in this 
legislation, among other important contributions, that we looked out 
for the interests of low-income people.
  Mr. RUSH. Madam Speaker, today marks a historic chance to move our 
great country forward and transform our economy for the demands of the 
21st century.
  I fully support this bill. It will not only make our country more 
substantive and energy efficient, but it would also provide jobs and 
economic opportunities for all of our citizens while opening an 
entirely new sector of our economy. I really must begin by thanking 
Chairman Waxman and Chairman Markey for their hardworking staffs and 
for all the work that they have done to improve this bill as it made 
its way through the legislative process and onto the floor today.
  With the chairman's help, we were able to strengthen this legislation 
by not only protecting low-, moderate-, and middle-income families from 
rising energy costs, but also providing real assistance for communities 
like the one I represent for new career pathways to move out of poverty 
and to move into quality, career-oriented jobs in construction and 
energy-related fields.

                              {time}  1345

  Some of these provisions that we were able to get in the bill are the 
low-income allowances, 60 percent of all the total allowances go to 
low-income people; local targeted hiring for middle class careers in 
construction; Low-Income Community Energy-Efficiency programs. The 
LICEEP program, the Low Income Community Energy-Efficiency Program, 
will provide loans, technical assistance, and grants to community 
development organizations to provide financing to minority 
entrepreneurs.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
  Mr. RUSH. The Public Housing Retrofit program, which I worked with 
the gentlelady from California, Ms. Waters, as well as my colleague 
from Vermont, Mr. Welch. It's a new program that provides grants to 
public housing agencies for energy retrofits and green investments in 
property.
  Madam Speaker, this is a great bill. This is a good bill. This bill 
should pass. I urge all of my colleagues to vote in support of this 
bill.
  Mr. BARTON of Texas. Madam Speaker, I'd like to yield 2 minutes to a 
member of the committee, the gentleman from Michigan (Mr. Rogers).
  Mr. ROGERS of Michigan. Madam Speaker, my appreciation for your years 
in the House and your great service here. Congratulations and great 
success in your new endeavor.
  I agree, Madam Speaker, with President Obama and Warren Buffett: 
under this bill, ``Electricity rates will necessarily skyrocket.'' 
Under this bill, we create the single largest energy tax in United 
States history. Warren Buffett called it ``a huge tax, and there's no 
sense calling it anything else. Very poor people are going to pay a lot 
more for electricity.''
  Last night, in my district, a utility company calculated its estimate 
of what this bill will cost the families in my district. It will 
increase their electric rates $500 a year--not your statistics from 
those who don't live in a place like Michigan; $500 a year. And that 
doesn't incorporate the fact that their clothes will now be more 
expensive, their groceries will now be more expensive, their school 
supplies will now be more expensive.
  If you haven't noticed, people are hurting around the United States. 
Adding costs today is absolutely the wrong direction. It will destroy 
$1,400 in wages for the average family in my district. $1,400. That's a 
$2,000 swing. People in Michigan, who are already under assault, want 
to know what they're getting for that $2,000 swing.
  Well, they won't get a new nuclear plant. Not one. They will not get 
the modern electric grid that they need to carry clean electricity. Not 
going to get that. And they will not get a level playing field with 
China and India. And--make no mistake--they want to steal the jobs that 
make up our middle class. They're active and aggressive in doing it. 
You pass this bill, you won't be able to build anything in the United 
States of America. Their jobs are going overseas.
  They will also see their gas prices rise, on average, 70 cents--70 
cents a gallon to families who are already under financial crisis. And 
who gets their money? Wall Street will.
  This bill takes millions, billions out of families' budgets and 
launders it through Wall Street. The same people who brought you the 
credit default swap in the housing market are now going to sell you 
carbon offset swaps. Billions of dollars from average Americans sent to 
Wall Street. That's no solution.
  If you want an economy built on foreign manufacturing and financial 
engineering, vote ``yes.'' But if you still want to live in a country 
that makes things, in a country that grows its own food and actually 
produces its own energy, vote ``no.''
  Mr. WAXMAN. Madam Speaker, at this time I yield 2 minutes to the very 
distinguished chairman of the House Armed Services Committee, the 
gentleman from Missouri (Mr. Skelton).
  Mr. SKELTON. I certainly thank the gentleman for yielding. Madam 
Speaker, as a farm State Representative, I have said for quite some 
time that any climate change legislation approved by

[[Page 16680]]

the House must take into consideration the unique needs of rural 
America, including those of farmers and rural electric cooperatives.
  Since first being introduced, the climate change measure has improved 
a great deal, thanks in large part to the work of House Agriculture 
Committee Chairman Collin Peterson and his negotiations with House 
Energy and Commerce Committee Chairman Henry Waxman.
  I first approached this legislation with a great deal of skepticism. 
I have since been pleased that some, though not all, concerns of 
utilities, electric cooperatives, and farmers have been addressed in 
the version of the bill that is being considered today.
  As this bill was being drafted, I have heard the views of Fourth 
District residents and have raised them with the House leaders. To be 
sure, the measure before us is not perfect, but it's a step in the 
right direction.
  I think it's important that we move this bill forward. After we pass 
it in the House, the measure will receive additional refinement in the 
other body. I think that the congressional leadership and the 
administration understand the concerns of rural America, and I will 
keep working to ensure our point of view is more completely addressed 
in the final bill.
  Truth be told, Congress has an obligation to enact energy reform this 
year, especially given that the U.S. Environmental Protection Agency, 
that is the EPA, is working right now to create tough, costly 
regulations on greenhouse gases emitted by livestock, farms, factories, 
and utilities. Without congressional action, the EPA will have free 
rein. That is unacceptable to me, and ought to be unacceptable to every 
farmer and business owner in Missouri.
  Unlike the EPA proposal, the House bill would exempt livestock and 
farms from greenhouse gas regulation, and it would provide farmers an 
opportunity to potentially profit from their carbon-friendly farm 
practices by participating in the carbon market.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
  Mr. SKELTON. Also, for farmers, the legislation would correct a 
problem that has been lingering since enactment of the 2007 energy 
bill. For the next 5 years, it would prevent EPA from calculating 
indirect land use when determining how to implement our Nation's 
renewable fuel standard.
  This is good news for ethanol and biodiesel production facilities and 
for the farmers who sell the goods to these facilities.
  Energy reform is not just a matter of wanting to keep our air and 
planet clean, as worthy and important as those goals are. It's also a 
matter of national security.
  In recent years, the Pentagon has taken a hard look at how climate 
change could have an impact on global security and stability.
  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to a member of 
the committee, the gentleman from Georgia (Mr. Gingrey).
  Mr. GINGREY of Georgia. Madam Speaker, we are at a crossroads. Our 
Nation faces significant challenges, with unemployment nearing 10 
percent and trillion-dollar deficits piling up decades of debt for our 
children and our grandchildren.
  However, congressional Democrats should not be so shortsighted to 
think that we cannot make a bad situation significantly worse by 
enacting legislation like this bill that will only knock more Americans 
off the assembly line and into the unemployment line.
  This bill will impose the Pelosi Global Warming Tax on every single 
American household and business, raising home electricity costs and 
annual energy costs by almost $3,000 for every family, and the only 
reduction will be in our Nation's gross domestic product by almost $10 
trillion and in the number of Americans employed by the millions.
  Madam Speaker, Washington cannot save this country. Only the American 
people and American ingenuity can. Unfortunately, congressional 
Democrats have already allowed the Federal Government to take over our 
banking industry, the automobile industry, and now this House may very 
well vote to take over America's energy, with control over health care 
not far behind.
  Let's stop the insanity and wake up to the reality imposed in the 
Global Pelosi Warming Tax and, in the words of another Californian, our 
distinguished former first lady, Nancy Reagan: Just say no.
  Mr. WAXMAN. Madam Speaker, may I inquire about the time each side has 
remaining.
  The SPEAKER pro tempore. The gentleman from California has 44\1/2\ 
minutes remaining; the gentleman from Texas has 53\1/2\ minutes 
remaining.
  Mr. WAXMAN. Thank you. At this time I'd like to yield 1 minute to a 
distinguished member of our committee, the gentlewoman from Illinois 
(Ms. Schakowsky).
  Ms. SCHAKOWSKY. Madam Speaker, I rise today in strong support of H.R. 
2454 and congratulate Mr. Waxman for his leadership.
  For over a century, the United States has embraced an energy policy 
based almost entirely on fossil fuels that have several dangerous 
consequences for today. This outdated policy has compromised our 
national security by making us reliant on foreign oil, has led the 
United States to lag behind other countries in the research and 
development of new energy technologies that would have created jobs, 
and has poison our planet. Now, today, we have the opportunity to 
change directions.
  When I was back in my district last recess, I could feel the 
crackling of new innovation. S&C Electric is making our electric grid 
much smarter and more reliable. Northwestern University is enabling 
entrepreneurs who are utilizing nanotechnology and applying it to the 
energy field. Republic Doors and Windows, a Chicago business that made 
Energy Star windows, shut down. But those 260 skilled workers were 
rehired with help from the recovery bill that we passed.
  These are just a few of the thousands of success stories around the 
country, and the 1.7 million good jobs that will be created with the 
passage of H.R. 2454.
  Mr. BARTON of Texas. I'd like to yield 1 minute to a member of the 
committee, the gentleman from Nebraska, (Mr. Terry).
  Mr. TERRY. There's a vigorous debate about the anthropologic impact 
on our climate. I believe that we do have an obligation to reduce 
CO2, if we can. But this must be balanced with an equal 
obligation to treat our constituents in a manner that preserves our 
Nation's economic competitiveness.
  Advocates for the cap-and-trade bill state that it will not 
significantly increase economic burdens on our constituents. This is 
just not true. The cap-and-tax bill also contains a renewable electric 
standard and other elements which will significantly increase costs to 
utilities and consumers. The Omaha Public Power District in my district 
conducted an independent analysis of the cost to my constituents, free 
of political interference like the one put out by the EPA.
  Even with the free allowances allocated under the Waxman-Markey cap-
and-tax bill, Nebraskans will have to suffer a $74 million bill in 
2012, and increased to $410 million a year by 2030 in the most 
optimistic case.
  Vote against this bill.
  Mr. WAXMAN. Madam Speaker, it's my privilege at this time to yield 
1\1/2\ minutes to a gentleman who has worked successfully with Members 
representing disparate interests in different parts of the country to 
find workable solutions that helped lead to the consensus product we 
have today, the gentleman from Washington (Mr. Inslee).
  Mr. INSLEE. Madam Speaker, this bill renews some basic American 
values of confidence in ourselves, optimism about our future, and a 
``can-do'' spirit. We support this bill because we believe Americans 
still have the right stuff that we had in the 1960s when we went to the 
Moon.
  This bill calls forward Americans' future to get off of foreign oil, 
to put millions of people to work in clean technology, and to give our 
grandkids a chance at a future with a decent atmosphere like we grew up 
with.

[[Page 16681]]

  The people who are against this bill, I urge them to avoid the 
pessimism and the lack of imagination that I have heard on the floor of 
this House.
  Now, will this have some investment cost? Yes. And what is the best 
assessment of that cost? It is the Congressional Budget Office, a 
nonpartisan group that Republicans typically rely upon, and what have 
they said? They said this will cost a typical family of four 47 cents, 
a little more than the cost of a stamp.
  Will we pay the cost of a stamp to get rid of five million barrels of 
oil a day from the Mid East? You bet we will. And this bill will do 
that. Will we pay a stamp to give our grandkids a future of an 
environment that's not going to destroy their health? You bet we will. 
Will we pay a stamp to give people at the Bright Source Company a 
chance? You bet we will.
  We're going to put a stamp on America's future for the price of a 
stamp. It's a good deal for our future.
  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the 
distinguished chairman of the Republic Policy Committee, the gentleman 
from Michigan (Mr. McCotter).

                              {time}  1400

  Mr. McCOTTER. Today we consider a bill that claims the government can 
control the weather by raising your taxes, taking your job and 
dictating your life. In my State of Michigan, with a 15 percent 
unemployment rate, we know we cannot afford this cap-and-tax bill. 
Others, however, disagree.
  ``Make no mistake,'' President Obama pronounced, ``this is a jobs 
bill.'' He is correct. This bill will destroy jobs. But then again, 
this comes from an administration that claimed its trillion-dollar 
stimulus bill would stop unemployment from going over 8 percent.
  The argument for this bill is nuts on its face. Government cannot 
design our economy and prosperity. It can only engineer our decline in 
poverty. But such feelings explain why this job-killing cap-and-tax 
bill is a fundamental shift from a manufacturing economy to an old 
green economy called hunting and gathering.
  Passing this abominable energy tax on working families in a recession 
shows this job-killing, budget-busting government doesn't understand 
how much real Americans are hurting for work. This is the hubris of Big 
Government, the delusion that our families' economic futures rest in 
the manicured hands of Congress rather than the hardworking hands of 
the American people.
  I disagree, and I urge the rejection of this bill.
  Mr. WAXMAN. Madam Speaker, I am pleased at this time to yield 1\1/2\ 
minutes to the gentlelady from Wisconsin (Ms. Baldwin) who is an 
important member of our committee in both the energy and the health 
areas.
  Ms. BALDWIN. Thank you, Mr. Chairman.
  Madam Speaker, the Waxman-Markey American Clean Energy and Security 
Act represents our Nation's response to a challenge that has 
consequences of epic proportions. Global climate change must be 
addressed in a real and meaningful manner. Our greenhouse gas emissions 
have put our global environment, our security and our very social 
structure at risk; and if we fail to act, the impact will reverberate 
throughout this century with the loss of human lives, species 
destruction, destruction of ecosystems, declines in health and 
increased social conflict.
  Climate change is a unique challenge in that our greatest obligation 
in tackling this threat is to the generations of Americans and people 
throughout the world who haven't even been born yet, the ones who will 
inhabit this planet long after we're all gone. The legislation we have 
before us addresses global climate change while spurring innovation, 
creating clean energy jobs and containing costs. It brings what we need 
in terms of leadership and commitment as we look toward Copenhagen and 
beyond. It recognizes that our Nation's security, our planet's 
sustainability and our children's future hang in the balance.
  I urge my colleagues to support this bill and commit to a clean 
energy economy that creates jobs and protects our health, national 
security and planet for generations to come.
  Mr. BARTON of Texas. Madam Speaker, I yield 2 minutes to a 
distinguished gentleman on the committee, a member of the Energy 
Solutions Group and a tireless worker on behalf of energy solutions for 
America, the gentleman from Illinois (Mr. Shimkus).
  Mr. SHIMKUS. Madam Speaker, this bill is a disaster, and let me just 
explain who is opposed. Rural America is opposed to this bill. The 
manufacturing sector is opposed to this bill. Utilities are opposed to 
this bill. The transportation sector is opposed to this bill. Why? 
Because they believe Democrats. They believe John Dingell when he says, 
Nobody in this country realizes that a cap-and-trade is a tax, and it 
is a very big one. They believe Barack Obama when he said, Under my 
plan of a cap-and-trade system, electricity costs would necessarily 
skyrocket. What's the result? They believe the Pennsylvania Public 
Utility Commission that says, 66,000 Pennsylvanians will lose their 
jobs. Why am I so impassioned? These are miners who lost their jobs the 
last time we came to the well on climate legislation, when 1,200 miners 
lost their jobs, 35,000 miners lost their jobs in the State of Ohio.
  What will this do to the average American? Here's one example. When 
the Democrats came into power, a gallon of gas was $2.33. Today it's 
$2.66. Add the cap-and-trade tax, 77 cents per gallon, and you're going 
to be paying $3.43. Now that's okay in the big city; but in rural 
America where you've got to drive long distances to get to school, to 
get to the grocery store, to get to health care, rural America is poor. 
Why do we have the rich areas of this country attack the rural poor of 
America? This is a shame. How dare you do that to my constituents.
  Mr. WAXMAN. Madam Speaker, I yield 1\1/2\ minutes to the gentleman 
from New York (Mr. Weiner) who has been a very constructive and 
important member of our committee and has played a very essential role 
in having us recognize the essential part that transportation efforts 
can play in reducing carbon emissions.
  Mr. WEINER. The chairman will be recognized for generations to come 
for confronting the challenges that we face. You know, the fact of the 
matter is that the EPA, under a court's decision, is going to have the 
ability to write these regulations. We're taking the responsibility to 
do it here in this Congress. The fact of the matter is, despite some of 
the contrarian views on this floor, there is a real global crisis that 
we face. Despite the objections of my colleagues on the other side, 
there is a need to create new jobs, and this bill would create 1.7 
million of them. But I want to give you one other reason that we should 
support this change in our policy. Ahmadinejad, the Saudi kingdom, they 
want exactly what my Republican friends are advocating--Don't do 
anything. Keep pumping the same amount of petroleum. Keep using the 
same amount of oil. Every time we put the pump to our gas tanks, we are 
helping the tyrants in Iran and the tyrants in Saudi Arabia export 
their terrorism. Why do we keep doing it? We need to change our 
behavior, and this bill recognizes it. It reduces carbon emissions and 
makes our Earth safer, of course; but it also creates new jobs and 
takes away the lifeblood to these terrorist regimes. We can't come to 
the floor and say I'm outraged at what's going on in Iran, I'm outraged 
at what's going on around the world with the exporting of terrorism and 
then continue the same policies where we pay for them. That's what our 
present policy does. Our policies are paying for the terrorists around 
the world, whether we like it or not. The American people understand 
that. We need energy independence. We need a thriving economy that 
creates 1.7 million new jobs. We need to reduce the carbon emissions, 
despite the fact that still some people in this House deny it's a 
necessity. We need to act, and that's what the Democrats are doing.


                        global warming wow facts

       The number of Category 4 and 5 hurricanes has almost 
     doubled in the last 30 years. Source: Inconvenient Truth

[[Page 16682]]

       Average global temperatures could increase 11 degrees 
     Fahrenheit by the end of the century, with greater overall 
     increases in the United States exceeding global averages, 
     Source: US Global Change Research Program
       By 2030, local temperatures in NYC could rise by two 
     degrees. This compounds an existing problem, known as the 
     ``urban heat island effect.'' This is due to the fact the 
     NYC's urban infrastructure absorbing and retaining heat. As a 
     result, NYC is often four to seven degrees warmer than the 
     surrounding suburbs, Source: PlaNYC 2030


                       key provisions in the bill

       Keep costs low for American families: the bill directs 15% 
     of the allowances be auctioned with the proceeds going to 
     consumers through a combination of refundable tax credits and 
     electronic benefit payments. EPA and C130 estimate that the 
     bill will cost American families less than 50 cents per day.
       Bill will cut foreign dependence on oil: Would require 
     electric utilities to meet 20% of their electricity demand 
     through renewable energy sources and energy efficiency by 
     2020.
       Cut Greenhouse gases: Bill reduces carbon emissions from 
     major U.S. sources by 17% by 2020 and over 80% by 2050 
     compared to 2005 levels.


                           economic benefits

       The stimulus bill and the energy bill will create 1.7 
     million new clean energy jobs nationwide, Source: Center for 
     American Progress
       The energy efficiency provisions alone in the Waxman-Markey 
     bill will generate 770,000 jobs nationwide by 2030. Source: 
     American Council for an Energy-Efficient Economy
       Clean-energy investments create over 16 jobs for every $1 
     million in spending. Spending on fossil fuels, by contrast, 
     generates 5 jobs per $1 million in spending. Source: Center 
     for American Progress
       NYS will see 109,000 new jobs and a net increase of about 
     $10 billion in clean-energy investments. Source: Center for 
     American Progress

  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the gentleman 
from California, Mr. ``Surf's Up'' Rohrabacher.
  Mr. ROHRABACHER. Thank you very much.
  Wake up, America. What's happening on the floor today is a power grab 
that will leave you with empty pockets and no jobs. The jobs will go to 
China, and the economy will go to hell. Worse than that, the scientific 
basis for the claims being made to frighten us into accepting this 
economy-destroying legislation are wrong.
  Wake up, America. There hasn't been any global warming, which is what 
we heard over and over and over again--there hasn't been any global 
warming for 10 years. In fact, the ice caps are melting, which we see 
over and over again. Yeah, they're melting on Mars too, which in any 
honest discussion would lead to the conclusion that the ice caps are 
melting and these things are happening because of solar activity, not 
because of the activity of human beings.
  The science is wrong. The economics is wrong. You're going to cause 
great damage to the people of this country, to their well-being, in the 
name of phony science. There are hundreds and hundreds of scientific 
leaders, like Dr. Lindzen of the Massachusetts Institute of Technology, 
that have refuted the arguments. They are pleading with us. Pay 
attention to the good science. Don't hurt our people based on the false 
claim of global warming, which they don't even use that language 
anymore.
  Mr. WAXMAN. Madam Speaker, I am pleased now to yield 1\1/2\ minutes 
to an important and distinguished member of the Energy and Commerce 
Committee, the gentleman from North Carolina (Mr. Butterfield).
  Mr. BUTTERFIELD. I want to thank the chairman of the committee for 
giving me this very precious time this afternoon.
  Madam Speaker, the House of Representatives is ready today to pass 
this historic legislation that will literally save the planet. You can 
call it a cap-and-tax all you want. You can say that the science does 
not support this legislation. You can say that the scientists are 
wrong. But I say, Republicans are wrong on this issue. We cannot afford 
to wait any longer to enact this legislation that will reduce 
greenhouse gas emissions. Chairman Waxman and Chairman Markey should 
each be commended for their extraordinary work in reaching a good 
compromise that will now allow this legislation to advance to the other 
body.
  It saddens me that our Republican friends were not partners with us 
as we crafted this legislation, but Democrats understand the mandate of 
the American people, and we are moving forward. One of my roles as the 
vice chairman of the Energy subcommittee was to ensure that any 
increase in costs to consumers would be painless. So 15 percent of the 
allowances will be dedicated to providing a safety net for the lowest-
income Americans. My district is one of the poorest districts in 
America. My constituents are low-income families, and they need the 
assurance that their goods and services will not dramatically increase. 
I am pleased with the report from the Congressional Budget Office that 
estimates that low-income households will actually see a net gain, not 
a loss, of $40 per year as a result of the legislation in 2020. The CBO 
also says that it is estimated that as a result of this legislation, 
the average cost per household will be, as the gentleman from the State 
of Washington said, 48 cents a day.
  I ask my colleagues to join with me in voting ``yes'' on this 
important legislation.
  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the 
gentlelady on the committee from Nashville, Tennessee, Congresswoman 
Blackburn.
  Mrs. BLACKBURN. Madam Speaker, this is not an energy bill. This is a 
tax bill. They're going to tax the air you breathe. It is a transfer-
of-wealth bill. The American people are figuring this out. Our friends 
across the aisle have, indeed, become the party of punishment, and my 
constituents in Tennessee are being punished.
  Listen to this: By 2012 we will lose 33,000 jobs. For the next 23 
years, every year it is estimated this bill will cause us to lose 
25,600 jobs. The American people are figuring this out. We want them to 
know it. When my colleagues come down here and talk about it being 
important and talk about it being historic, it's all from the negative. 
The impacts of this bill will shut small businesses. It will close 
family farms. It will shutter manufacturing plants, and those jobs will 
end up in China, in India. It will increase our taxes. The President 
told us so. Every household is going to pay between $1,300 and $3,100 
in new taxes every year. The cost of products will increase. The 
American people know that the bill chooses winners and losers, and the 
taxpayer is the big loser.
  Mr. WAXMAN. Madam Speaker, I wish to yield 1 minute to the gentleman 
from Maryland (Mr. Sarbanes).
  Mr. SARBANES. I want to salute Chairman Waxman and Chairman Markey 
for their tremendous work on this bill.
  When it comes to energy policy, the United States has been a sleeping 
giant; but the giant is beginning to stir. And with the passage of this 
legislation today, we'll awaken to a new era of possibility. That's 
what makes this so exciting.
  This bill, the American Clean Energy and Security Act, is going to 
create a new framework and new space so that ordinary citizens and 
entrepreneurs can jump into that space and take us to the next level. 
And what most excites me is that this is about the future. The next 
generation is going to take these clean technologies, they're going to 
take this knowledge, and they're going to lead us to a new place.
  I urge passage of this bill, and I congratulate its architects.
  Mr. BARTON of Texas. I yield 1 minute to the distinguished gentleman 
from Oklahoma (Mr. Cole).

                              {time}  1415

  Mr. COLE. Madam Speaker, I rise today to speak against this flawed 
cap-and-trade, or rather, cap-and-tax legislation. There is no good 
time for a bad idea, Madam Speaker. This bad bill is nothing more or 
less than a national energy tax. The legislation will force American 
families to pay on average more than $3,000 a year in additional energy 
costs.
  The majority would like us to believe that passing this legislation 
will benefit all Americans. Nothing could be further from the truth. 
Under this bill, energy-producing States like Oklahoma will be 
economically punished

[[Page 16683]]

and devastated. Residents in rural areas who must commute long 
distances to work will be disproportionately affected. Rising fuel 
prices, coupled with rising home energy costs, will force people to 
make ever tougher choices. Many will face reduced living standards; 
spending less, saving less, and going without many of the items they 
need for a decent life.
  Madam Speaker, for over 100 years, the people in my State and my 
district have worked hard to produce the energy that this country 
needs. Now that energy is going to be taxed. Taking away their choices, 
their jobs and their future just isn't bad policy. It is punitive, and 
it is shameful.
  Mr. WAXMAN. May I inquire how much time we have for the Energy and 
Commerce Committee?
  The SPEAKER pro tempore. The gentleman from California has 36\1/2\ 
minutes remaining.
  The gentleman from Texas has 46\3/4\ minutes remaining.
  Mr. WAXMAN. At this time, I would like to yield to my colleague from 
California (Mr. McNerney) 1 minute.
  Mr. McNERNEY. Thank you, Mr. Chairman.
  Madam Speaker, I rise in strong support of the American Clean Energy 
and Security Act. I would also like to thank Chairman Waxman and 
Chairman Markey for their leadership on this issue.
  Before I came to Congress, I developed new energy technologies. I 
have seen firsthand these industries develop by leaps and bounds. The 
economic benefits of the American Clean Energy and Security Act will be 
profound. This bill will create jobs across the country in fields as 
diverse as construction, engineering, education and others. These jobs 
will lay the foundation for long-term prosperity.
  The American Clean Energy and Security Act is also a serious 
commitment to combating climate change. It is long past time for our 
country to lead in addressing this threat. Fewer emissions will mean 
cleaner, healthier air for our children and grandchildren.
  I am also proud that the legislation includes key provisions that I 
wrote, including language that will spur the development of a more 
efficient electrical grid and provide funding for clean-energy job 
training. I also encourage that during the conference committee 
process, the opportunity is seized to strengthen the renewable energy 
standard. This will help ensure that the new energy projects created by 
this bill will utilize American-made components manufactured by 
American workers.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. BARTON of Texas. I want to yield 1 minute to the distinguished 
ranking member of the Financial Services Committee, our expert on 
derivatives, Mr. Spencer Bachus. 
  Mr. BACHUS. Madam Speaker, as Under Secretary Robert Shapiro, under 
the Clinton administration, said, we are going to create a 
multitrillion dollar derivative market overnight. These will be based 
on carbon offsets.
  These projects, most of them, we anticipate, will be in 
underdeveloped countries or foreign countries, almost all of them. And 
when you start a project, a clean-coal project in China or India, or 
you plant trees in Borneo and Brazil, who pays for it? The American 
taxpayers. Does it reduce discharges and pollution here? No. It 
absolutely allows you to discharge carbon dioxide into the environment 
here in the United States.
  Before you vote for this bill, ask yourself, if the subprime lending 
market was hard to police, how do you police the derivatives market 
based on projects in China and Borneo? Ask yourself, am I going to 
stick my constituents with the cost of clean-coal projects in China? Go 
home and explain that to your constituents. Go home and explain how 
you're going to plant trees in Brazil. They are going to pay for it. It 
is going to allow more pollution here.
  The SPEAKER pro tempore. The time of the gentleman has expired.


                Announcement by the Speaker Pro Tempore

  Members are reminded to address their comments to the Chair.
  Mr. WAXMAN. I wish to yield 1 minute to the gentlelady from Ohio (Ms. 
Sutton).
  Ms. SUTTON. Madam Speaker, I rise in support of this legislation, and 
I want to thank the chairman for his leadership and for working with me 
and other Members of this House to address our concerns about 
manufacturing and jobs in this bill.
  This bill isn't perfect. I have yet to see a bill that is. But the 
status quo is not the right choice. We must unleash the entrepreneurial 
spirit of this country and provide the economic opportunities that our 
constituents need. This bill is part of that mission. It is not the 
entire answer to all that ails us. But let there be no mistake. This is 
a jobs bill. This bill has support from groups that represent workers; 
the United Steel Workers, the UAW, the SEIU, CWA, Building and 
Construction Trades and the AFL-CIO are all urging a ``yes'' vote on 
this legislation.
  Madam Speaker, the people I represent are facing difficult times. 
They are looking for jobs, and sometimes they can't find them the way 
they used to. The inaction of the past has cost them dearly.
  There are those who complain that this bill is not perfect. They say 
it won't do this or it won't do that. But we have got to get started 
and keep acting until we get it right and provide them with the chance 
that they need for a change in direction.
  Mr. BARTON of Texas. I want to yield 1 minute to ``Mr. Iowa 
Agriculture,'' Mr. Latham of Iowa.
  Mr. LATHAM. I thank the gentleman.
  Everyone understands that we are in the middle of a very difficult 
downturn in the economy, a recession. It is difficult enough today to 
create jobs. We have the second-highest tax rate in the world. We have 
the most onerous regulatory burden in the world. We have the most 
litigation in the world. So how do we create new jobs? Well, it is not 
with this tax-and-cap bill.
  I will tell you, in China today they must think that Christmas is 
coming in June. If you look at this box here, it says ``To China from 
the U.S. Congress.'' Well, let's see what is inside of it, okay?
  What is inside of it is U.S. jobs. This is going to cost 17,000 jobs 
in Iowa in 2012 and each year after that. Nationwide, 2\1/2\ to 3 
million jobs will be lost because of this bill.
  If we are going to do anything to help the economy, let's not put 
another burden, let's not make us less competitive in the world, and 
let's not destroy hope for the next generation, which this bill does.
  Please vote ``no'' and save our country.
  Mr. WAXMAN. Madam Speaker, I'm pleased at this time to yield to a 
real leader from the State of Iowa who has taken an active role in this 
and so many other policy areas, Mr. Braley, for 1 minute.
  Mr. BRALEY of Iowa. Madam Speaker, this is a defining moment in our 
country's history. And last night out at the White House, I saw the 
chairman holding his grandchild in his hands. The question every Member 
of this body is going to have to face when they look into the eyes of 
their children and grandchildren is, Where were you on this pivotal 
vote in our country's history? Where were you when we tried to free 
ourselves from our dependency on foreign oil? Where were you when we 
tried to create a new energy policy based on clean energy like the 
clean-energy revolution taking place in my State of Iowa?
  This bill won't cost jobs in Iowa. It will create thousands of jobs 
in clean energy. That is what the message is I'm sending to my 
children. That is the message I'm sending to my grandchildren. This is 
the time to break away from Middle East oil oligarchs, set a new policy 
for our energy future, and send a message to the world that we will be 
leaders, not followers, when it comes to climate change.
  Mr. BARTON of Texas. Madam Speaker, I want to yield myself 30 seconds 
just briefly.
  According to David Sokol, the CEO of MidAmerican Energy, which serves 
most of the utility customers in the State of Iowa, the bill before us 
will

[[Page 16684]]

raise utility prices, for every residential customer in Iowa, $110 a 
month, or $1,320 a year. That is not a job creator in Iowa; that is a 
job killer in Iowa.
  I now want to yield 1 minute to a distinguished member of the 
committee from the great Keystone State, Mr. Tim Murphy of 
Pennsylvania, 1 minute.
  Mr. TIM MURPHY of Pennsylvania. A headline in yesterday's Pittsburgh 
paper said ``More Pa. Residents Suffering in Recession, Poll Shows.'' 
And this is the time to give people in Pennsylvania, and throughout the 
Nation, hope.
  Pennsylvania and the Pittsburgh area is the area that was built upon 
energy. We had abundant supplies of coal, natural gas and water. That 
is why steel was there. We invested in the National Energy Technology 
labs, and we still have hundreds of years of coal.
  Folks, this is a time when we need to improve the efficiency of wind 
and solar so we can have them as energy resources. But let's not 
abandon steel because you can't make it without coal. Let's not abandon 
coal. And let's make sure we invest in clean coal. This is a time when 
we say to kids that right now we get about 35 percent of our energy out 
of a lump of coal. And it does pollute. What we have to do is clean it 
up, invest in that and build clean-coal plants. Whoever figures out how 
to do that, that is Nobel Prize material. It is the scientific, 
technological, and educational challenge of our generation.
  And what's more, you can't have lights on without doing that. Let's 
do all of the things we need to do. But this bill is not the way to do 
it. We can solve these problems. But we can't rush into it the way we 
are doing it now.
  Mr. WAXMAN. Madam Speaker, at this time, I want to yield to the 
distinguished sole representative from the State of Vermont, a man we 
are very pleased to have on our committee and who has been a leader in 
some of the areas on this bill. He reminds us that efficiency is the 
way to go to use less fuel. I yield 1 minute to Mr. Welch.
  Mr. WELCH. Thank you, Mr. Waxman.
  Madam Speaker, although some dispute it, there is little doubt that 
oil is a finite resource and we are at or near peak oil, that global 
warming is real, that the threat to our economy is immediate and that 
the need to act is urgent.
  And while our friends on the other side raise questions about how our 
actions will affect jobs and utility bills, those very legitimate 
concerns have been exhaustively addressed in this legislation.
  But what they fail to acknowledge is that the cost of inaction is 
great in lost opportunity for jobs, a cleaner environment and a 
stronger economy. Many of the new jobs in Vermont and around the 
country are related to the new clean-energy economy.
  Madam Speaker, today Congress will make a very fundamental decision. 
Will America confidently and directly declare a policy of American 
energy independence? Will it unleash the talents of our scientists and 
engineers, empower our entrepreneurs and manufacturers? Will it put to 
work our farmers, carpenters, masons, electricians and plumbers through 
efficiency, through renewable energy and through the new technology for 
coal?
  The great decisions a nation makes, Madam Speaker, are always about 
facing our problems, not retreating from them, and about the conquest 
of hope over fear.
  I first wanted to thank Chairman Waxman, Chairman Markey, and the 
Energy and Commerce Committee staff for their tremendous work and 
leadership on this legislation. To bring to the floor the first ever 
bill to address our global warming crisis was no small feat, and while 
we would all like to see changes in this bill, it represents the best 
step forward toward charting a new energy future for our country.
  If civil rights was the issue of my generation, addressing climate 
change is the issue of today's. The young people and students across 
this country deserve great credit for providing the energy--renewable, 
of course--behind this historic legislation. They have the most at 
stake; they will inherit this planet and the economy we leave them. 
Their future must be addressed now.
  Earlier this year when we first began taking testimony on this 
legislation, I had the opportunity to ask executives of some of the 
world's largest companies whether Congressional inaction for addressing 
climate change threatened their bottom line, their viability, and our 
economy. One by one, they each responded: ``yes . . . yes . . . yes.'' 
These were our nation's economic leaders unanimously recognizing the 
urgent need for a new, post-carbon economy.
  The scientific facts are clear: global warming is real, it is urgent 
and it threatens our economy, our national security, and our way of 
life if unaddressed. We must tackle this challenge squarely, like the 
confident nation that we are.
  Addressing this challenge presents us with opportunity--an 
opportunity to create new, green jobs and build a stronger economy; an 
opportunity to make our country more secure and energy independent; and 
an opportunity to save on electric bills at home and turn better 
profits at the workplace.
  This legislation sets us toward the bright future of a post-carbon 
economy. If we don't make this commitment now, nations like Japan, 
Germany, Brazil--countries around the world will outpace us and leave 
us far behind.
  In this legislation, we take the bold steps necessary--with a firm 
cap on carbon pollution, new renewable energy and energy efficiency 
standards, and investments in renewable energy development. But we also 
make policy changes throughout our energy economy that will help hard 
working Americans get and stay ahead.
  We create a national Certified Clean Stove Program, building on 
Vermont's success to encourage those who heat their homes with wood 
stoves to install cleaner-burning stoves.
  We establish the nation's first energy efficiency improvement target.
  Among many consumer protection previsions, but critical for states 
like Vermont, we establish consumer rebates and weatherization 
efficiency investments to residents in states that rely upon home 
heating oil.
  And we establish The Retrofit for Energy and Environmental 
Performance (REEP) Program to provide billions of dollars in financial 
incentives to homeowners and business owners to encourage them to 
retrofit the nation's existing buildings, which account for 10 percent 
of global carbon emissions. This program, supported by the Home 
Builders, Realtors, NRDC and others, will create thousands of jobs and 
help homeowners and business owners save on energy bills.
  At less than the cost of a postage stamp a day, through this bold 
legislation we will make our nation more secure, create a new, more 
efficiency, more productive, more prosperous energy future.
  When President Kennedy said we would put a man on the moon, many 
thought it wasn't possible. We did it. Today, we take the bold and 
necessary step to address one of the most pressing and urgent 
challenges in generations.
  As the author of the provisions of this bill that creates the 
Retrofit for Energy and Environmental Performance (REEP) Program Act, 
it is my goal to ensure the greatest possible participation in efforts 
to reduce energy consumption in residential and commercial buildings.
  It has come to my attention that real estate investment trusts 
(REITs) may be reluctant to participate in this program as it is 
currently crafted. They are concerned that they may lose their REIT 
status unless the REEP grants are considered qualifying assets that 
generate qualifying income for the purposes of the REIT income and 
asset tests.
  Listed REITs own and manage over 6 billion square feet of commercial 
real estate. This is a significant amount of property that, if 
retrofitted, could yield significant energy savings.
  Therefore it is my hope that as this bill moves through the 
legislative process we will include the necessary clarifications to 
ensure that REITs will be able to fully participate in the REEP 
program.
  Mr. BARTON of Texas. Madam Speaker, could I inquire as to when the 
majority is prepared to go to the Ways and Means Committee's time?
  Mr. WAXMAN. If the gentleman would yield to me, when our time expires 
for both committees. Perhaps we ought to let you take additional time 
at this point, because we have used far more than you have.
  Mr. BARTON of Texas. I have agreed to do that. But my question is, 
when is it the intention to allow the Ways and Means Committee to use 
their time? Is that in the next 15 minutes or is it around 3 o'clock? 
When is your inclination?
  Mr. WAXMAN. If the gentleman would yield, perhaps we can inquire of 
the Chair how much time is still available to the Energy and Commerce 
Committee.

[[Page 16685]]

  The SPEAKER pro tempore. The gentleman from California has 32\1/2\ 
minutes remaining.
  The gentleman from Texas has 43\1/4\ minutes remaining.
  Mr. BARTON of Texas. I just need a planning estimate to tell the 
Members on my side when we are going to go to the Ways and Means. I'm 
not being argumentative.
  Mr. WAXMAN. Why don't we discuss that informally?
  Mr. BARTON of Texas. At this time, I want to yield to another 
distinguished member of the Energy and Commerce Committee from the 
Pelican State, Mr. Scalise, 1 minute.
  Mr. SCALISE. Madam Speaker, I want to thank the gentleman from Texas 
for yielding.
  I stand here to strongly oppose this cap-and-trade national energy 
tax that is being proposed to be created here today.
  One of the things we have heard is about jobs. Let's talk about jobs. 
The National Association of Manufacturers estimates the United States 
will lose 3 to 4 million jobs if this bill becomes law. The President's 
own budget director has said American families will see a $1,200 
increase per year on their electricity bill if this bill becomes law. 
That is the policy that they are trying to pass. That is the policy we 
are standing up and opposing today.
  Let's talk about job loss. If you look at the bill, they have 55 
pages in this bill dedicated to job losses. Now why would they put 55 
pages in the bill dedicated to job losses if they didn't think this was 
going to lose jobs and run those jobs over to China and India?
  And the real irony is for those who think that we need to reduce 
carbon emissions, this bill will actually increase carbon emissions 
because when that steel mill moves from the United States to Brazil, 
four times more carbon is emitted to produce steel in Brazil than in 
the United States. And not only do we lose jobs, they emit more carbon. 
This is a horrible way to wreck the American economy. We need to defeat 
it.

                              {time}  1430

  Mr. WAXMAN. Madam Speaker, I wish to yield to the gentleman from 
Michigan and chairman emeritus of our committee (Mr. Dingell) so he and 
I could engage in a colloquy.
  Mr. DINGELL. Madam Speaker, I ask my good friend to join in a 
colloquy about the electric transmission provisions. I support 
renewable power, as does he. However, there is a delicate State-Federal 
balance of authority in this area.
  I yield to my good friend.
  Mr. WAXMAN. I agree we must be sensitive to the State and Federal 
roles, but we must also move forward on transmission policy. My goal 
here is to take the first step.
  Mr. DINGELL. I have concerns about the wisdom of splitting the 
country in two parts, into eastern and western interconnections, for 
the purpose of regulating transmissions. Does my colleague agree we 
should have a unified national transmission policy?
  Mr. WAXMAN. Yes, that is my preference. However, there is more 
consensus about how to move forward in the western interconnect than 
there is in the eastern interconnect, and we should make the progress 
we can in the west. I will continue to work towards a policy that is 
comprehensive and effective.
  Mr. DINGELL. I thank my good friend. I have a further question. I am 
also concerned that wilderness areas and conservation easements be 
fully protected, particularly in the eastern interconnection.
  Mr. WAXMAN. This proposal leaves in place the current environmental 
protection in the eastern interconnection. The changes in the west 
account for the very sensitive nature of the lands there, including 
Federal lands.
  Mr. DINGELL. Reclaiming my time, finally, the effect of this language 
on existing law is unclear, which might only lead to more litigation 
and delay.
  Mr. WAXMAN. Well, we need a policy that is clear and can be 
implemented. This is only a partial step forward, as I have said, and I 
look forward to having your help in adopting a workable policy.
  Mr. BARTON of Texas. I yield 1 minute to a distinguished senior 
member of the committee from the great State of Georgia, Mr. Deal.
  Mr. DEAL of Georgia. I thank the gentleman for yielding. There are 
many issues that need to be discussed. I rise in opposition to this 
legislation. One of the topics is that of jobs. We are told we are 
going to gain jobs. By most reasonable estimates, we are going to lose 
jobs. The best example of that is to look at what happened in Spain. 
Spain has traveled this path of renewables and green energy. Their 
estimate is that for every job they gained, they lost over two. I don't 
consider that to be a direction that our country needs to go, 
especially in these difficult economic times.
  The second thing that needs to be said is that there is a disparity 
that is being created in the renewable portfolio requirements. For 
portions of the country such as Georgia and the Southeast, in general, 
we don't have the volume of alternatives that are allowed under this 
legislation, especially if we are not going to get credit for the 
nuclear plants that we are trying to bring on board in our State. 
Therefore, we will have to purchase those credits from some other part 
of the country, something that I think will have an undoubtable, 
definite negative effect on the power bills of the citizens of my 
State.
  I rise in opposition to the legislation and urge my colleagues to 
vote against it.
  Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from 
Georgia (Mr. Scott) for the purpose of a colloquy.
  Mr. SCOTT of Georgia. Madam Speaker, let me thank Chairman Waxman for 
the excellent job he has done in providing leadership and for expanding 
the renewable energy standard to reflect the interests of my 
constituents in Georgia, and certainly the Energy Star home labeling 
program.
  As you know, Mr. Chairman, there is one issue that I have discussed 
with you that I am very concerned about that we are working our way 
through, and I would like to enter into a colloquy with you. I am 
concerned about the jurisdiction of derivatives.
  I serve on the Agriculture Committee and the Financial Services 
Committee. We feel very strongly that any language in this dealing with 
the regulation of derivatives certainly should be handled by the 
Financial Services and Agriculture Committees, and you and I have 
discussed that, and I would like to know how that is done, particularly 
in view of the fact that 95 percent of the 500 largest global 
corporations use derivatives for risk management.
  I yield to the gentleman.
  Mr. WAXMAN. You and others have expressed concern about this issue. 
This matter will be determined by the work of the Financial Services 
Committee and the Agriculture Committee. We have a placeholder in the 
bill. Once they agree on the issue that is within their jurisdiction, 
it will be placed in the bill.
  I want to point out that you have a unique role in that because you 
are on both committees and have a special interest on this question. So 
I look forward to seeing your work on that matter.
  Mr. SCOTT of Georgia. I thank you, and with that I will certainly 
support the bill and urge my colleagues to support the bill.
  Mr. BARTON of Texas. I yield myself 15 seconds.
  We have just experienced something somewhat revolutionary. We have a 
bill before us that has a placeholder in the bill. We are passing a 
bill with a placeholder to be determined later. I have never seen a 
final passage on a bill that had a placeholder in the bill.
  With that, I yield to Mr. Pitts, a member of the committee from the 
State of Pennsylvania, for 1 minute.
  Mr. PITTS. Madam Speaker, like all of us, I believe we should work to 
decrease the amount of greenhouse gas emissions in our atmosphere, and 
we should be good stewards of this Earth and its resources. However, I 
don't believe this bill will accomplish a dramatic decrease in 
greenhouse gas emissions; yet I do believe it will have a

[[Page 16686]]

crippling effect on our economy for years.
  No matter how you doctor or tailor it, it is a tax, a national energy 
tax that will hurt each and every household. It will destroy sectors of 
our economy and cause job losses at an unprecedented rate.
  Here is a chart that shows the jobs losses in thousands of jobs here, 
nearly 2 million jobs, 2012; 2035, over 2 million jobs a year. We 
should be protecting our environment through innovation, through 
entrepreneurship and cooperation, but this bill tries to cut carbon 
emissions through punishment taxation, heavy hand of government, and 
litigation.
  The bill as originally introduced, analyzed by the PUC, a bipartisan 
group in Pennsylvania, said it would cost Pennsylvanians 66,000 jobs by 
the year 2020.
  I urge my colleagues to consider just how irresponsible it is to move 
legislation that is going to cost so many jobs, so much damage to our 
economy, and yet it is anticipated to slow temperature increases by 
only two-tenths of 1 degree Fahrenheit by the end of the century. There 
is a better way.
  Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from 
Maine (Mr. Michaud) for the purposes of a colloquy.
  Mr. MICHAUD. I rise for a colloquy with the chairman of the 
Agriculture Committee, Chairman Peterson. I want to thank Chairman 
Peterson for his hard work on that legislation, and I seek 
clarification of two provisions in section 788 of the bill relative to 
the forest land and forestry sector.
  Specifically, on page 198, line 14 of the bill, I would like to know 
if the agricultural sector language includes forest lands and forestry 
sector. Also, on page 199, line 22 of the bill, I would like to know, 
does the term ``projects'' include sustainable forest practices, such 
as avoided deforestation agreement?
  Mr. PETERSON. I want to thank the gentleman for his work on improving 
the definition in this bill and assure him that, just as with many USDA 
conservation programs, forest land fully qualifies for this energy 
incentive program and it is our intent that it be included in this 
section. Both the terms ``agriculture sector'' and ``projects'' in 788 
are inclusive of forest land and could be used to provide incentives 
for private forest land owners who may not otherwise qualify to 
participate in the ag offset program.
  I will continue to work with the gentleman. He can be assured this 
will be included.
  Mr. MICHAUD. I thank the gentleman for that.
  Mr. BARTON of Texas. I yield myself another 15 seconds.
  I want to tell all of the Members, if you haven't made your deal yet, 
come on down to the floor. What we are seeing is unprecedented. We're 
making deals on the floor. I want to commend Mr. Waxman; at least he is 
now doing it in public. I mean, that is unprecedented, but at least it 
is transparent.
  With that, I yield 2 minutes to the gentleman from Florida (Mr. 
Stearns).


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore. The gentleman will suspend.
  Members are reminded to address their remarks to the Chair.
  Mr. STEARNS. Madam Speaker, you know, this is a defining moment. And 
``where were you when this legislation came on the floor'' is going to 
be something that you're going to remember.
  As the ranking member has indicated, the lobbying on this by Vice 
President Gore and the President and all of the people has been 
tremendous, and there is a possibility that they still don't have the 
votes. One of the reasons is there is not a fairness factor here.
  China adds more CO2 to the atmosphere each year than any 
other nation in the world. However, they have consistently said they 
reject any binding international cap on such emissions and claim the 
right to continue to increase its release of greenhouse gases while at 
the same time we are going to pass--attempt to pass this legislation.
  My colleagues, without equivalent efforts by China and India to limit 
greenhouse gas emissions, the United States stands to lose many 
hundreds of thousands of jobs to these countries that will profit from 
this bill today.
  The proponents of this legislation say we should make unilateral 
reductions, unilateral disarmament, which will in turn impose moral 
pressure on other countries. I find it hard to believe that China and 
India will reduce their economic growth and idle their people because 
they are willing to adopt a cap-and-trade. The cap-and-trade is flawed. 
China and India are not going to go forward. Any meaningful effort to 
achieve long-term, sustainable reductions in global greenhouse gas 
emissions depend on the development and deployment of new energy 
technologies, we all agree, we must include clean coal technologies, 
carbon capture and sequestration, and advanced nuclear power 
generations. I had an amendment that was designed to do this. It was 
not allowed.
  The rapid development demonstration of widespread deployment of such 
technologies are of paramount importance in any reasonable and any 
effective effort to address CO2 reductions. The massive new 
regulatory burdens imposed by this cap-and-trade scheme will invariably 
cut the growth and innovation in this country and we will lose jobs. 
Let's foster new technology. Let's not pass this bill.
  Last night, I offered two substantive amendments to improve this 
flawed legislation. One of my amendments would have allowed states that 
have existing nuclear power plants to more easily meet the Renewable 
Electricity Standard by excluding all electricity generated by nuclear 
power from a retail electric suppliers bases amount. My other amendment 
would have eliminated the home Energy Star labeling program that will 
further reduce property values at a time when many homeowners have seen 
their equity and retirement savings vanish. Unfortunately, both of 
these amendments were struck down by the Rules Committee along with 221 
other amendments.
  Quoting from yesterday's Wall Street Journal editorial, Americans 
should know that those Members who vote for this climate bill are 
voting for what is likely to be the biggest tax in American history.''
  In fact this cap and tax scheme could cost families up to $3,100 more 
per year and result in real GDP losses of $9.6 trillion over the life 
of the bill, especially if we do it alone.
  China adds more CO2 to the atmosphere each year than any 
other nation in the world, however they have consistently rejected any 
binding international cap on such emissions and claims the right to 
continue to increase its release of greenhouse gases. Without 
equivalent efforts by China and India to limit greenhouse gas 
emissions, the U.S. stands to lose many hundreds of thousands of jobs 
to these countries that will profit from this bill.
  The proponents of this legislation say we should make unilateral 
reductions, which will in turn impose moral pressure on other countries 
to reduce their emissions. I find it hard to believe that other nations 
would follow the United States in reducing economic growth and idling 
millions of workers. Although cap and trade is flawed, there is much 
that we can do to reduce carbon emissions and our dependence on 
imported energy sources.
  Any meaningful effort to achieve long-term, sustainable reductions in 
global greenhouse gas emissions will depend on the development and 
deployment of new energy technologies, including advanced clean coal 
technologies, carbon capture and sequestration and advanced nuclear 
power generators. The rapid development, demonstration and widespread 
deployment of such technologies are of paramount importance in any 
reasoned and effective effort to address carbon dioxide reductions.
  The massive new regulatory burdens imposed by this cap and trade tax 
scheme will inevitably undercut the growth and innovation we 
desperately need to build lasting and effective solutions. Fostering 
new technology and scientific research across all sectors of the 
economy, not capping our economy and trading U.S. jobs, will guard our 
nations security and increase our energy independence.
  I encourage all my colleagues to join me in strong opposition to this 
legislation.
  Mr. WAXMAN. Madam Speaker, I reserve the balance of my time.
  Mr. BARTON of Texas. Madam Speaker, I yield 3 minutes to the 
gentleman from Virginia (Mr. Cantor), the distinguished minority whip.
  Mr. CANTOR. Madam Speaker, if there is one thing everyone in this 
Chamber should be able to agree on, it is that we need to focus on job 
creation and relieve the burden on middle-class

[[Page 16687]]

families, not increase it. Yet the evidence suggests that by taking up 
this cap-and-trade bill, we are abandoning this fundamental mission.
  According to an MIT study, the legislation before us will force 
America's middle-class families to pay as much as $3,100 in higher 
prices every year. The EPA, meanwhile, estimates that a family of four 
will eventually pay an additional average of $1,100 each year.
  The impact on jobs is equally dismal. A CRA International study finds 
the legislation, when fully implemented, will cost America 2.3 to 2.7 
million jobs. This, at a time when hundreds of thousands of workers are 
losing their jobs every month.
  In the midst of a severe recession, why would we even contemplate a 
plan that amounts to a growth-killing millstone around the neck of 
small businesses and all American consumers.
  Madam Speaker, it is not the utilities, the oil companies, and the 
other producers who will bear the cost of this new regime. We already 
know that the companies will pass their higher costs along to the 
consumers and small businesses that rely on their services. This means 
more expensive bills for all Americans on everything from electricity 
to heating to gasoline to groceries.
  We also can't forget that this national energy tax comes down hardest 
on the poor. The highest income quintile spends less than 5 percent of 
its income on energy-intensive products, but our families in the lowest 
income quintile spend over 20 percent on those items--this, according 
to CBO.

                              {time}  1445

  Madam Speaker, with a watchful eye toward the consequences for jobs 
and economic growth, let us give thoughtful consideration to the 
limited benefits this unilateral action will bring about. Even if the 
bill cuts U.S. carbon emissions to 83 percent of current levels by 
2050, we still are only anticipated to slow global temperature 
increases by a mere two-tenths of a degree.
  And then there's the real elephant in the room, India and China. Both 
of these freewheeling nations are growing rapidly and not prepared to 
slow down. Do we really want to hamstring U.S. industry and put it at a 
competitive disadvantage to Asia? Can we be so naive to assume our 
businesses, jobs--and emissions--won't emigrate to China and India?
  Moving to eliminate CO2 from the atmosphere is a noble 
endeavor, but taking this kind of action without enforceable carbon 
commitments from our competitors is only an exercise in futility.
  Madam Speaker, Republicans remain committed to bringing a swift end 
to the recession and paving the path to prosperity. We intend to focus 
on policies that will put people back to work and grow the economy. 
That does not include this cap-and-trade proposal. With stakes so high, 
gambling the house away on such a high-cost, low-reward program is a 
grave mistake that Republicans will not support.
  Mr. BARTON of Texas. I yield 1 minute to the distinguished gentlelady 
from West Virginia, Congresswoman Capito.
  Mrs. CAPITO. Madam Speaker, at a time when families are already 
struggling to meet their basic needs, the last thing we need is a new 
energy tax on all consumers, and that's exactly what this cap-and-trade 
bill is. It is a national energy tax that will burden consumers, burden 
businesses, and particularly burden the lower-income families in this 
country. It picks regional winners and losers, with coal-dependent 
States like mine, West Virginia, bearing the brunt of this bill.
  Under this bill, we will actually be penalized for our lower-cost 
power and will have to pay more to continue using our greatest 
resource, coal. We should be innovating towards clean coal and carbon 
sequestration where we can continue to use our most abundant resource.
  We all want cleaner sources of fuel and more efficient energy, but 
this cap-and-trade bill is not the way forward. This bill is a jobs 
killer. This bill has real costs for real people. Vote ``no'' on this 
bill.
  The SPEAKER pro tempore. The gentleman from New York is recognized 
for 15 minutes.
  Mr. RANGEL. Mr. Speaker, I rise today in support of the American 
Clean Energy and Security Act of 2009 and urge my colleagues to support 
it.
  Listening to the beginning of this debate, I'm convinced that--one of 
the people on the other side said that our voting today will be well 
remembered, not by Democrats and Republicans, but by the entire world. 
We know that we have a crisis. It is a universal crisis; it's a crisis 
that affects our country and our communities. But the ironic thing 
about it with the other side, all of their comments have been in 
criticism of the great work that has been done by Congressmen Waxman 
and Markey and their committee, the Ways and Means Committee, and those 
that were concerned about perfecting something to protect the people of 
this Earth. And just as they will remember the courageous and political 
forces that were put together to make this great contribution to 
humankind, they also will remember the negative political shots that 
have been taken and the absence of any positive program that the 
minorities have brought forward.
  I congratulate our great Speaker for coordinating this effort. People 
call it, on the other side, ``deals,'' when they don't have any ideas 
to put forward. But ``deals,'' if it means bringing people together and 
getting a better bill and moving forward in order to provide a 
majority, then I'm proud to be on this side of the aisle.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BARTON of Texas. I yield 1 minute to the member of the committee 
from the Golden State of California (Mr. Radanovich).
  Mr. RADANOVICH. Mr. Speaker, I rise in strong opposition to the 
global cap-and-tax bill that is on the floor today. You don't have to 
look any further than my own beloved State of California to see 
environmental alarmism at its worst. California has adopted its own 
renewable energy standard and carbon cap-and-trade scheme. It's killing 
business in California and driving people out of the State in record 
numbers.
  Rural and agricultural communities will be most affected by this 
bill, forcing local agriculture producers to pay more for seed, 
equipment, machinery, steel, and other supplies. If you like getting 
your oil from Hugo Chavez, with cap-and-tax you're going to love 
getting breakfast, lunch and dinner from him too.
  If we were truly interested in achieving dramatic reductions in 
CO2 emissions without destroying our economy, we should 
preserve our robust economy and allow the free market to continue to 
produce commercially viable energy efficiencies and clean-energy 
technologies.
  I urge my colleagues to do something good for the economy and the 
environment and put this bill where it belongs, in the recycle bin.
  Mr. BARTON of Texas. Will the gentleman from New York yield for a 
procedural inquiry?
  Mr. RANGEL. I would be glad to.
  Mr. BARTON of Texas. I've got two nonmembers of the Ways and Means 
Committee that I would like to go out of order to get us in balance so 
Mr. Camp and you can balance each other.
  Mr. RANGEL. I yield to the gentleman.
  Mr. BARTON of Texas. I yield 1 minute to the gentleman from New York 
(Mr. Lee), and I want to thank Mr. Rangel for his courtesy.
  Mr. LEE of New York. I thank my friend for yielding.
  The people in my district know only too well that when Washington 
applies itself to a problem, it overregulates and always hides the true 
cost to the taxpayer. This bill is truly no different with it being 
over 1,100 pages in length and 50 pages dedicated to regulating light 
bulbs.
  In order to garner enough votes, the majority has tried to shift the 
most punitive cost of this bill to later years so they can get it 
passed. Early on, it will be the government footing this enormous bill 
with your tax dollars, and then down the road this subsidy will

[[Page 16688]]

shift to consumers who will pay directly to sustain this program 
through higher, job-killing energy prices. Either way, it's the 
taxpayer who bears the burden.
  This bill is truly a pipe dream. We need to focus on an energy 
solution that rewards innovation using American-made energy, not trying 
to find a way to tax our way to prosperity and continue this horrific 
job loss. That is why I urge my colleagues to oppose this bill.
  Mr. BARTON of Texas. Mr. Speaker, I yield 1 minute to the 
distinguished Congresswoman from Illinois, a member of the Science 
Committee, Congresswoman Biggert.
  Mrs. BIGGERT. I thank the gentleman for yielding.
  Mr. Speaker, I rise in opposition to the American Clean Energy and 
Security Act.
  In my home State of Illinois, we depend on nuclear, coal, and natural 
gas for our electricity. Because this bill discriminates against these 
energy sources, Illinois will be hit especially hard. Gas prices could 
rise by 77 cents a gallon and diesel by 88 cents a gallon. This is part 
of an entirely arbitrary penalty on oil and gas that is passed straight 
on to the consumer.
  H.R. 2454 does little to incentivize new nuclear production, despite 
the fact that nuclear power is safe and emissions free, and what little 
it does is grossly inadequate concerning the overall goal of this bill.
  I am deeply concerned also that there is no framework for an 
international agreement on climate change in this bill. In the absence 
of such framework, and in agreement from developing nations, my 
district can count on losing thousands of jobs to countries like India 
and China if this legislation is enacted.
  Mr. Speaker, I oppose this bill and urge my colleagues to do the 
same.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan, Chairman Levin.
  Mr. LEVIN. Action on climate change is a policy, indeed, a moral 
imperative. Prompt action is a vital part of our legacy to the Nation, 
and to our children and grandchildren.
  As we act, we can and must ensure that the U.S. energy-intensive 
industries are not placed at a competitive disadvantage by nations that 
have not made a similar commitment to reduce greenhouse gases.
  After discussions between the Energy and Commerce and the Ways and 
Means Committees and the administration, we have developed reasonable 
and effective provisions which involve the President and the Congress 
in taking action--no more than necessary--to ensure that this important 
legislation is trade-neutral for our energy-intensive industries.
  We want to see a meaningful international agreement. If we are unable 
to do so through an international agreement, this legislation ensures 
that the U.S. will avoid carbon leakage in its energy-intensive and 
trade-sensitive industries.
  There are some critics--and we may hear from them today--who claim 
that these changes make the bill subject to trade challenges. They are 
wrong. Just today, the World Trade Organization and the U.N. 
Environment Program issued a report which confirms that ``WTO rules do 
not trump environmental requirements.''
  Mr. CAMP. Mr. Speaker, I yield myself 3 minutes.
  As a candidate, the President stated that under his energy plan 
``electricity rates would necessarily skyrocket.'' I give him credit, 
he was being honest with the American people.
  Today, the Nation's unemployment level is fast approaching 10 
percent. That means one out of every 10 Americans will soon be without 
a job and without a paycheck to provide for themselves and their 
families. Yet, this national energy tax will drive up prices while 
making jobs scarcer. In fact, one utility which is even supporting this 
legislation has already applied to State regulators to raise their 
electricity rates in anticipation of the cost of complying with this 
national energy tax.
  While the Speaker wants us to pay more in energy taxes, China and 
India have repeatedly said they will not follow suit. They will not 
impose those hardships on their people. This shouldn't surprise us. As 
our mothers used to ask, if everyone else jumped off a cliff, would 
you? Of course not. Neither will China and India. They recognize 
enacting these caps is like jumping off an economic cliff.
  So what does a ``yes'' vote mean? It means more American 
manufacturing jobs move to China and India, fewer Americans have jobs, 
and there is no reduction in global greenhouse gases. And because this 
bill was rushed to the floor, because the American people were not 
given a chance to review it because their Representatives were not 
given a chance to improve it through the committee process, this bill 
contains numerous flaws.
  The border measures, which the Committee on Ways and Means has not 
reviewed, are an area open for our trading partners to retaliate 
against our goods and against our workers. How does this help our 
economy? How does this help families? How does this help our 
environment? It doesn't.
  Now, I know promises have been made that your constituents won't be 
harmed by this bill, that it contains plenty of consumer protections. 
What are those protections? Who's going to get them? Not the middle 
class. Not the people the President promised to protect, families 
making less than $250,000 a year. Somewhere in this House late at night 
someone made the decision to eliminate the tax credits designed to help 
middle class families pay for these high energy prices.
  Here are the plain and simple facts: under the Speaker's national 
energy tax, a family of four with income over $33,000 per year will 
lose under this bill. They, and 235 million other Americans, will pay 
higher costs and receive no help in offsetting those costs. Let's be 
clear what this means: three out of every four Americans will pay more 
under this bill.
  The Speaker's national energy tax is bad for our economy, bad for 
families who are already struggling to make ends meet, and it will do 
nothing to reduce global greenhouse gas emissions. It's all pain and no 
gain. I urge my colleagues to vote ``no'' on this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RANGEL. When the Republican Party becomes the protector of the 
poor, it's a day that I've been waiting for.
  I would like to yield 2 minutes to Mr. Larson, an outstanding leader 
of the Democratic Party.
  Mr. LARSON of Connecticut. I thank the distinguished chairman.
  Mr. Speaker, it has been an interesting day in listening to the 
claims that have emanated from the other side of the aisle, claims 
about honesty, claims about being forthright. The President of the 
previous administration, President Bush, stood on the floor and claimed 
our addiction to oil, and everybody put their head in the sand and did 
nothing as we continued to send and export American dollars overseas.
  We send American taxpayer dollars overseas to Russia, to Saudi 
Arabia, to Libya, to Venezuela, all the people that you have chimed in 
about today. That's the real tax that we are paying because of our 
increasing addiction and our need to stand up and rid ourselves of 
dependency on foreign soil.
  So the challenge faces us once again--it was here 30 years ago, and 
we didn't have the courage to make the stand, nor the patriotic fervor 
or fiber to stand up and do the right thing.

                              {time}  1500

  Stop this addiction. If T. Boone Pickens can get out front across 
this country and talk about this awful addiction, and, as Thomas 
Friedman said very eloquently, if the American policy of the previous 
administration is to ``leave no mullah behind'' and find our funds that 
we pay with American taxpayers going to fund our enemies' efforts 
against our own troops in our efforts against terrorism, that is what 
this is about in the final analysis. It's about this great country of 
ours and making a stand for what we believe in, standing up for 
American dominance and superiority.

[[Page 16689]]

  Yes, the Chinese and Indian nations are out there competing. We want 
to compete against them because we have better technology. We just have 
to make the investment here and not in Saudi Arabia and Libya and 
Venezuela and Russia. That's what the policy of previous 
administrations have led us to. And that's where it must end today, on 
this floor.
  Mr. CAMP. Mr. Speaker, I wish the gentleman's passion was directed at 
bringing the bill before the Ways and Means Committee.
  With that, Mr. Speaker, I yield 1 minute to the distinguished 
gentleman from California (Mr. Herger).
  Mr. HERGER. Mr. Speaker, not only is this legislation not the right 
thing; this legislation is one of the most overreaching, damaging 
pieces of legislation that has ever come before this House of 
Representatives.
  This national energy tax is a job killer and will cost American 
families over $3,000 per year while doing very little to affect global 
temperatures. Rural America, low- and middle-income families, and our 
farmers will suffer the most under this new tax.
  Mr. Speaker, we all want to protect our environment. But we should 
accomplish that through innovation and investment, not by government 
micromanagement that undercuts Americans' ability to compete globally.
  I urge all Members to protect the American economy and livelihoods of 
millions of American families and say ``no'' to this gigantic national 
energy tax.
  Mr. RANGEL. Mr. Speaker, I would like to yield 2 minutes to the 
gentleman from Massachusetts, Chairman Neal.
  Mr. NEAL of Massachusetts. I want to commend Mr. Rangel and Mr. 
Waxman and Mr. Markey, who have attempted against long odds to forge a 
consensus on this legislation.
  Mr. Speaker, the bottom line to this legislation as proposed today is 
it will make America less dependent on foreign oil. And, remember, 
despite protestations to the contrary from our friends on the other 
side, there is an element on the other side who rejects to this day the 
concept of climate change and global warming. It is very difficult to 
find middle ground if there's a side that simply rejects the science of 
our times. Part of our job in leadership in governing is to make some 
difficult decisions and, indeed, some very tough choices. This climate-
change bill we have before us today makes those tough choices for our 
future and our children's future. It's in the interest of America, but 
just as importantly, it's in the interest of the world. America leads 
the way, and this is an opportunity for us to reclaim that leadership.
  This legislation will lead our consumers, our businesses, and our 
communities towards smarter, cleaner, and more efficient energy use. 
And it will not be alone. Strong trade enforcement mechanisms will mean 
that the American business community will not be disadvantaged by 
importers who skirt the rules. This long legislation is a vote for 
innovation and environmental stewardship.
  I almost would be remiss if I didn't mention this as well. For the 
previous 8 years, the administration rejected the idea of global 
warming. The other side was given fancy talking points to grudgingly 
acknowledge that perhaps it might be happening but to spin the argument 
that it presented a peril to our times. You would be hard pressed to 
find scientists anywhere across this globe who have not at least forged 
a consensus on identifying and defining the problem. As is always the 
case in public life, it is difficult once definition has settled in to 
offer a solution. This legislation today offers a solution.
  Mr. CAMP. Mr. Speaker, I yield 1 minute to a true American hero, a 
distinguished member of the Ways and Means Committee, the gentleman 
from Texas (Mr. Sam Johnson).
  Mr. SAM JOHNSON of Texas. Mr. Speaker, as a clean-energy advocate, I 
believe we should be good stewards of the Earth and its resources.
  We're in the midst of a long recession. Yet the Democrats want to 
impose a massive new energy tax on American families and businesses, 
costing every American family heavily. Americans are sick and tired of 
Democrats spending too much, taxing too much, and borrowing too much.
  With the price at the pump rising 65 percent this year, the Democrats 
would create a 70-cent-per-gallon tax hike. With unemployment close to 
10 percent, the Democrats would kill 2\1/2\ million jobs per year. My 
district alone would lose 3,000 jobs per year.
  Democrat Congressman John Dingell said it best, Nobody in this 
country realizes that cap-and-trade is a tax, and it's a great big one.
  This is America. Let's don't sell it down the river.
  Mr. RANGEL. Mr. Speaker, it's my honor to yield 1 minute to Mr. 
Blumenauer, an outstanding advocate of prevention of global warming.
  Mr. BLUMENAUER. I appreciate the gentleman's courtesy.
  For the last 2\1/2\ years, I have had the privilege of working with 
the Speaker's Select Committee on Global Warming, driving home the 
reality of climate change. Today we have a major opportunity to rebuild 
and renew America while protecting the planet.
  I want to thank the Ways and Means Committee and the Commerce 
Committee for working with me to harness billions of dollars over the 
life of this bill to develop transportation that reduces carbon 
footprint for transit, bike, and pedestrian, development patterns, 
things that will make a difference for a country that emits more carbon 
with its transportation than China, India, and Europe combined. We have 
an opportunity to protect the planet, but unless you're prepared to 
lead, China and India will continue to pollute more and more.
  This is the first step in this leadership, and I urge the courage to 
vote ``yes'' on this legislation today.
  Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of 
the Ways and Means Committee, the gentleman from Georgia (Mr. Linder).
  Mr. LINDER. I thank the chairman for yielding.
  Mr. Speaker, I will submit a statement for the Record, but I'm not 
going to read that statement. I want to respond to the gentleman from 
Connecticut, who said we need some honesty in this discussion, and the 
gentleman from Illinois this morning on the rule. The gentleman from 
Illinois said on the rule that there are zero peer-reviewed articles by 
scientists who disagree with the notion that humans are causing global 
warming.
  That will come as a surprise to Professor Morner from the University 
of Stockholm, who has written 520 himself on sea levels. He's the 
world's foremost expert on sea levels. Or Richard Lindzen from MIT, the 
Alfred P. Sloan professor of meteorology at MIT, who has written many 
peer-reviewed articles. He is a denier. Professor Willie Soon from MIT, 
one of the world's foremost scientists on precipitation. John Christy 
and Roy Spencer from Huntsville, Alabama. Fred Singer, who was 
responsible for leading the charge to get all of our weather satellites 
in the air from Northern Virginia.
  And the five authors of the first IPCC report who wrote in their 
scientific reports that there is no evidence that humans are causing 
any of this. And those five sentences were removed by a bureaucrat who 
replaced them with one sentence that said, It's clear that humans are 
the cause. In a court action under oath, that bureaucrat was asked why 
he removed those sentences and replaced them, and he said because of 
intense pressure from the top of the United States Government.
  There are 32,000 scientists, 9,000 Ph.D.s and 23,000 masters in 
science who signed a petition against this silliness that we're 
discussing, and they want to join the deniers Galileo and Einstein. 
Einstein questioned Newton's 200 years of settled science, and he was 
sent a letter by 100 of the most important scientists in the world who 
challenged him on his questioning of that settled science, and he 
showed the letter to his friend, and he said, You would think one of 
them might have produced a fact.
  That's all we ask from you is a fact. Not a computer model but a 
fact.

[[Page 16690]]

  ``Energy Stamps'' in Democrat Bill Is the Biggest Welfare Program 
Ever--16 Times Bigger than the Current Welfare Program
  Mr. Chairman, some Members deny this bill is a massive tax hike. To 
them, I can only say you're not paying attention. Everything takes 
energy. If you raise the price of energy, as this bill does, you raise 
the price of everything. CBO admits it, again and again.
  The authors know very well their bill is a massive tax hike. That's 
why, as this chart shows, they create the largest welfare program in 
U.S. history, to relieve some. This legislation would pay checks--call 
them energy stamps--to 16 times as many people as are on welfare now.
  Here's what it says on page 1010:
  ``The Secretary shall . . . administer . . . the `Energy Refund 
Program' . . . under which eligible low-income households are provided 
cash payments to reimburse the households for the estimated loss in 
their purchasing power resulting from (this bill) . . . each eligible 
low-income household . . . shall be entitled to receive monthly cash 
payments . . . if . . . the gross income of the household does not 
exceed . . . 150 percent of the poverty line . . .''
  65 million Americans fall below 150 percent of poverty. Every one 
would receive a monthly energy stamp check, on top of any welfare or 
other benefits they collect now.
  Amazingly, this number is down from prior versions because Democrats, 
predictably, removed any vestige of middle class tax relief.
  So the other 235 million Americans would get nothing but a new 
National Energy Tax. Every family of four earning over $33,000 
``loses''--getting no energy stamps but all the energy tax hikes.
  So much for the President's pledge to cut taxes for 95 percent of 
Americans. And so much for the Speaker's pledge this won't raise costs 
for American families.
  In his 1935 State of the Union Address, Franklin Roosevelt said 
``continued dependence upon relief induces a spiritual and moral 
disintegration fundamentally destructive to the national fiber. To dole 
out relief in this way is to administer a narcotic, a subtle destroyer 
of the human spirit.''
  On that President Roosevelt was right, as surely as this legislation 
is wrong.
  Vote ``no.''
  Mr. RANGEL. Mr. Speaker, I yield for the purpose of making a 
unanimous consent request to the gentleman from Virginia (Mr. 
Connolly).
  Mr. CONNOLLY of Virginia. Mr. Speaker, it is an honor to speak in 
support of this historic legislation. Congress has never faced a 
challenge of such magnitude, complexity, or urgency. Global climate 
change is an existential threat that undermines our national security 
and imperils our coastal cities, agricultural heartland, and economic 
vitality.
  After enduring eight years of intransigence, denial, and fealty to 
special interests, we are poised to transform the marketplace and spur 
a new generation of technological and industrial innovation.
  By creating incentives for clean energy we will jump-start job 
creation and investment in production of advanced batteries, wind 
turbines, solar panels, geothermal systems, carbon capture and storage, 
and cellulosic biofuels. The dozens of companies that support this 
legislation have told us that they are poised to make these 
investments.
  Although we have seen an alarming rise in greenhouse gas pollution, 
we also know that it is not too late to act. From New Orleans to 
Glacier National Park to the Everglades, by acting now we will protect 
America's iconic places and our national identity.
  I thank Chairman Waxman, Chairman Markey, and their committee for 
leading the effort to write this legislation. Like many of my 
colleagues, I ran for Congress in order to restore economic growth, 
reform health care, and address global warming. We have made progress 
on the first pledge and are embarking on the second. With my vote for 
this bill I redeem my pledge to begin to address global warming and ask 
my colleagues to join me.
  I also wish to thank Chairman Waxman, Chairman Markey, and the staff 
of the Energy and Commerce Committee for their collaboration in 
drafting this bill. When this discussion draft was released in March, 
the American Clean Energy and Security Act did not provide dedicated 
funding for local governments through the State Energy and 
Environmental Development (SEED) or Retrofit for Energy and 
Environmental Performance (REEP) programs. I wrote to Chairman Waxman 
and requested that a portion of funding through these programs be 
dedicated to local governments, to support local efforts to improve 
buildings' efficiency and reduce greenhouse gas pollution. The 
Committee responded to my request by dedicating SEED funding to local 
governments and by ensuring that REEP funding would support local 
weatherization programs. These important changes ensure that Northern 
Virginia localities can continue to lead efforts to reduce residents' 
electric bills and greenhouse gas pollution. These changes are very 
significant for Virginia. According to the Congressional Research 
Service, Virginia will receive between $108 and $216 million in SEED 
funding in 2012. As a result of the changes I requested, between $13.5 
and $27 million should flow directly to local government programs to 
reduce pollution.
  In my letter to Chairman Waxman, I also requested reforms to the 
transmission line siting process in order to protect environmental and 
cultural resources. Northern Virginians know that we must act to 
correct deficiencies to the 2005 Energy Policy Act, which created a 
National Interest Electric Transmission Corridor process that granted 
unprecedented authority for federal agencies to site transmission lines 
without regard for the impact on environmental and cultural resources 
or property values. Fortunately, the manager's amendment that is 
incorporated in the American Clean Energy and Security Act takes the 
important first step of ensuring that state and federal environmental 
agencies and land managers have a seat at the table in the planning 
process. Although additional reform of the transmission siting process 
is still needed, this change will better enable us to protect important 
Northern Virginia resources such as Manassas National Battlefield Park, 
Prince William Forest Park, and Shenandoah National Park.
  I also applaud Chairman Waxman for incorporating an amendment 
proposed by the Sustainable Energy and Environment Caucus, of which I 
am a member. This amendment ensures that the Federal government will 
derive 20% of its energy from renewable sources by 2020. This proposal, 
which Chairman Waxman incorporated into the manager's amendment, is 
particularly important for Northern Virginia because it will result in 
renewable energy deployment to power Federal facilities in the National 
Capital Region. This is important because we must move to clean energy 
generation if our region is to achieve ground level ozone reductions, 
which are essential for public health, as recommended by the 
Environmental Protection Agency.
  Finally, I thank Mr. Waxman for incorporating language that expresses 
the sense of Congress that the International Civil Aviation Association 
limit aviation-related emissions worldwide. Following Committee passage 
of H.R. 2454, the Washington Airports Task Force asked members of the 
Northern Virginia delegation to identify a role for the International 
Civil Aviation Association in limiting emissions, and I asked the 
Committee to see if they could address the Washington Airports Task 
Force's request. I believe that the language incorporated in Mr. 
Waxman's manager's amendment is a step in the right direction, and 
appreciate his willingness to address this issue at such a late point 
in the legislative process.
  In summary, Chairman Waxman, Chairman Markey, and the staff on the 
Energy and Commerce Committee have been very responsive to my requests 
for changes to this bill that benefit Northern Virginia. I greatly 
appreciate their willingness to work with members like me to ensure 
that this legislation will benefit residents of Northern Virginia and 
across the country. As important as it is to have sound overarching 
legislation, I believe it also is essential that the legislative 
process allow individuals and businesses from across the country to 
have a role in crafting any bill. Because of the outstanding work by 
Chairman Waxman, Chairman Markey, and their committee, this bill has 
evolved to reflect the needs of Northern Virginians and others from 
across the country.
  Finally, I would like to offer special praise to my colleague from 
Virginia, Mr. Boucher. As a senior member of the Energy and Commerce 
Committee, Mr. Boucher played a central role in writing the American 
Clean Energy and Security Act. He is the only Virginia Congressman on 
that Committee, and I believe he did an outstanding job representing 
the interests of the Commonwealth. Specifically, he ensured that coal-
reliant states like ours can transition to cleaner energy sources 
without creating price spikes and without negatively impacting regions 
where coal extraction is important economically. This was a difficult 
balance to strike, and required the skill and experience of a 
legislator of Mr. Boucher's caliber. Years from now, when coal 
extraction and electricity generation is substantially cleaner than 
today, and when Virginia finally has significant renewable electricity 
generation, we may look back and thank Mr. Boucher for his role in 
crafting this legislation that made such a transition possible.
  Congress has never dealt with such a complex bill of such fundamental 
importance to

[[Page 16691]]

our economy, environment, and quality of life. Led by Mr. Waxman and 
Mr. Markey, the American Clean Energy and Security Act reflects a 
carefully crafted consensus that has the support of large utilities 
like Dominion and environmental organizations alike. While forging this 
consensus the Committee found time to address requests from members 
representing diverse regions of the nation with competing needs. I 
thank Chairman Waxman, Chairman Markey, and I am proud to cast my vote 
for the American Clean Energy and Security Act.
  Mr. RANGEL. Mr. Speaker, at this time it's my pleasure to yield 1 
minute to the gentlewoman from Nevada (Ms. Berkley), an outstanding 
member of the Committee on Ways and Means.
  Ms. BERKLEY. I thank the chairman for yielding.
  Mr. Speaker, I rise today in support of this bill. It addresses 
climate change, promotes the development of clean-energy sources, and 
brings us closer to our goal of securing America's energy independence. 
This bill also takes extra steps to protect consumers while creating 
new green jobs.
  Nevada is in the forefront of renewable energy use. In 1997 Nevada 
enacted a renewable portfolio standard requiring that 20 percent of our 
electricity comes from renewable sources by 2015. Nevada's solar 
potential, coupled with our State's geothermal and wind resources, will 
bring jobs to Nevada and make us a leader in the use of production of 
clean energy.
  In contrast, the alternative proposed by the House Republicans 
continues the same old failed policies, including the Yucca Mountain 
project. It doubles the amount of nuclear waste that can be shipped to 
Nevada and jams twice as much of this radioactive garbage down our 
throats. The Republican plan to more than double the size of the Yucca 
Mountain dump would only double the danger to families in Nevada and 
across our Nation at a cost of hundreds of billions of dollars.
  I urge all of my colleagues to support this bill.
  Mr. CAMP. Mr. Speaker, I yield 1 minute to a distinguished member of 
the Ways and Means Committee and the ranking member on the House Budget 
Committee, the gentleman from Wisconsin (Mr. Ryan).
  Mr. RYAN of Wisconsin. I thank the gentleman for yielding.
  Mr. Speaker, this bill is not about science, it's not about costs and 
benefits; it's about ideology. Because if you look at the costs and 
benefits, the goal of this bill is to reduce global warming by 2/10 of 
a degree over a hundred years, hit our economy with this massive tax 
increase on homeowners, on people buying gasoline, heating their homes, 
hit manufacturing at a time when our competitors will not do this. This 
bill will result in jobs leaving the Midwest and jobs leaving America 
and going to other countries. And for every 1 ton of greenhouse gases 
we reduce, what will China do? They'll increase greenhouse gases by 3 
tons. And that means more dirty air. That means more greenhouse gases. 
What will the U.S. have achieved? They will have pushed production off 
our shores. Jobs will be lost. Prices will go up. And other countries 
will take those jobs and put more greenhouse gases in the atmosphere.
  This unilateral big government, Big Brother bill is not good for the 
planet. It's not good for our economy. And it sure as heck is not good 
for the Midwest. And I encourage my colleagues not to vote ideology, 
vote your districts and your constituents.
  Mr. RANGEL. Mr. Speaker, I yield 1 minute to an outstanding 
Democratic leader, the gentleman from Maryland (Mr. Van Hollen).
  Mr. VAN HOLLEN. Mr. Speaker, this is an historic day for this House 
of Representatives. After years of delay and inaction, we're finally 
poised to embrace America's clean-energy future and adopt an energy 
strategy for the 21st century.
  This act delivers on the change that President Obama has called for 
in our energy policy. It will strengthen our national security by 
slashing our dependence on foreign oil by as much as 2 million barrels 
a day by 2030, which is as much as we export from the Persian Gulf 
today. We will use those hundreds of billions of dollars instead right 
here at home on homegrown, clean energy. And by doing so, we're going 
to create millions of jobs, high-skilled, well-paying jobs that will 
focus on renewable energy and energy efficiency. And we will do all 
that without adding a single penny to our national debt.
  Mr. Speaker, I especially want to thank Mr. Rangel, Mr. Waxman, Mr. 
Markey, Mr. Dingell, Mr. Inslee, Mr. Gordon, and their staff for the 
collaborative effort that went into the final provisions establishing a 
Clean Energy Deployment Administration. As a result of this effort, 
America is going to have an independent----
  The SPEAKER pro tempore (Mr. Pastor of Arizona). The time of the 
gentleman has expired.
  Mr. VAN HOLLEN. Well capitalized bank charged with the exclusive 
mission of accelerating the deployment of clean energy.
  The SPEAKER pro tempore. The time of the gentleman has expired.

                              {time}  1515

  Mr. CAMP. Mr. Speaker, at this time, I yield 1 minute to a 
distinguished member of the Ways and Means Committee, the gentlewoman 
from Florida (Ms. Ginny Brown-Waite).
  Ms. GINNY BROWN-WAITE of Florida. You know, this bill started out as 
the cap-and-tax bill, then it became the clean energy bill because my 
colleagues on the other side of the aisle realized it wasn't selling 
anymore at home. It should really be called the Let's Send More Jobs to 
China Act.
  This bill is going to cost people in the State of Florida an 
additional $500 on their utility bills, but let's look at the jobs that 
are going to be lost. In my district alone, we will lose 2,100 
manufacturing jobs, 3,200 construction jobs, and 1,900 retail and 
wholesale jobs.
  Personal income loss for Florida's Fifth District in 2012 will be 
over $508 million. America cannot afford this at a time when our 
economy is so fragile. Gasoline prices under this will rise 
substantially. Electricity prices will rise up to 90 percent.
  This is a bad bill. This is a bill that is going to cost Americans 
not only more in their wallets but certainly jobs going elsewhere.
  Mr. RANGEL. Mr. Speaker, I would like to recognize the gentleman from 
Chicago, Illinois (Mr. Davis) for 1 minute.
  Mr. DAVIS of Illinois. Mr. Speaker, I rise in strong support of H.R. 
2454.
  I want to commend Chairman Waxman, Chairman Rangel, Mr. Barton, 
Chairman Peterson, Chairman Markey, Mr. Dingell, and all of those who 
have worked so hard to reach compromises which help to make this 
legislation possible. Especially do I want to commend Representative 
Bobby Rush for his hard work to protect low-income consumers, 
Representative Butterfield for making sure that Historically Black 
Colleges and Universities and predominantly black institutions had an 
opportunity to be involved in the research and job creation.
  And I also want to thank Representatives Jan Schakowsky and Donna 
Christensen for their hard work on environmental issues to help reduce 
health disparities. It's a good bill, Mr. Speaker, and I urge all of my 
colleagues to vote in favor of it.
  Mr. CAMP. At this time, I yield 1 minute, Mr. Speaker, to a 
distinguished gentleman from the Ways and Means Committee, Mr. Davis.
  Mr. DAVIS of Kentucky. Mr. Speaker, this legislation will increase 
utility bills, raise the price of a gallon of gas, push fuel prices and 
food prices to new heights, and increase the cost of nearly every 
consumer product. It is a national energy tax. Let's make that clear. 
This will punish middle class families, farmers, the elderly, and small 
businesses both in Kentucky and especially across the Nation.
  America needs a comprehensive energy plan, not a national energy tax. 
Local, State and Federal officials have stressed the need for policy to 
create jobs. This cap-and-trade proposal will fail to do that when 
America needs them most. We will lose jobs. Manufacturers will simply 
move their plants to other countries with cheaper energy and lower 
taxes, hurting American workers and the environment globally.

[[Page 16692]]

  In the past 4\1/2\ years, I have watched House Democrats defeat every 
meaningful proposal for energy independence and job creation that has 
been proposed in this Chamber, and we have got to bring an end to that.
  This bill is nothing more than the economic colonization of the 
heartland by the coastal States like New York and California.
  The one thing that I will tell you is it is not about energy. It is 
about confiscation of wealth. Vote ``no'' to protect our children's 
future.
  Mr. RANGEL. At this time, I would like to inquire--I only have one 
speaker, that would be me, to conclude, so I would like to see whether 
the other side has more than one speaker.
  Mr. CAMP. We have five speakers remaining.
  Mr. RANGEL. I reserve the balance of my time.
  Mr. CAMP. At this time, Mr. Speaker, I yield 1 minute to the 
distinguished member of the Ways and Means Committee, the gentleman 
from Texas (Mr. Brady).
  Mr. BRADY of Texas. Mr. Speaker, I have two young children, so the 
environment is very important to me, but I question the benefits of 
this bill and strongly oppose its devastating cost.
  This bill won't impact the natural cycle of the Earth's temperature. 
It will cost Texas families dearly in bigger utility bills, higher 
energy costs, and losing nearly 200,000 jobs, many of them in southeast 
Texas in our energy refining, paper, steel, and ag industries. And with 
China and India not likely to go along, this will have no environmental 
benefits at all.
  The protectionist trade measures added in secret at the 11th hour are 
so rigid, they undermine our ability to reach an international 
agreement on carbon emissions, which is the best way to protect 
American jobs here. And they are written so poorly, it will be 
difficult to defend the measure against trade challenges by our 
competitors. And I should point out, that WTO report referenced earlier 
today doesn't even deal with the border measures that are under 
consideration in this bill.
  Instead of rushing this 1,200-page bill through Congress with no time 
to read it, a better solution is for both parties to get serious about 
increasing cleaner-burning fuel, like nuclear and natural gas, 
accelerating research.
  That makes more sense, creates jobs and produces real environmental 
results without the devastating cost to families and businesses from 
cap and trade.
  Mr. RANGEL. The gentleman from Ohio (Mr. Ryan), not a member of the 
committee but an outstanding Member of this body, I would like to yield 
1 minute to him.
  Mr. RYAN of Ohio. I would like to thank the gentleman and thank the 
chairman for this bill. You know, we hear a lot from the other side 
about, if we pass this bill, all these jobs are going to go to China; 
if we pass this bill, gas is going to go up higher.
  The jobs already went to China. That's what this bill is all about. 
Come to Youngstown, Ohio. See how many jobs have already gone to China.
  This bill is about revitalizing manufacturing. And your energy policy 
has already been implemented, and it gave us $4 a gallon gas here. And 
we have a $700 billion transfer in wealth from this country to states 
that want to fly planes into our building.
  And this bill is about creating programs like the green bank that 
will loan $750 billion to companies that want to create alternative 
energy resources. This bill has in it $30 billion for auto suppliers, 
medium and small auto suppliers, to refurbish and retool so that they 
can sell their products into these windmill companies.
  Everyone is talking about losing jobs. Come to my district. Parker-
Hannifin Corporation in Cleveland, they make the hydraulics that go 
into windmills. Thomas Steel, they make the specialty steel that goes 
into solar panels. When these businesses explode--Roth Brothers makes 
an electrical system that goes into a wind cube that will sit on top of 
the buildings. In Youngstown, Ohio, in Akron, Ohio, there will be jobs 
because this bill passes. We need to nudge this industry and unleash 
the creative power.
  Mr. CAMP. Madam Speaker, I yield 1 minute to a distinguished member 
of the Ways and Means Committee, the gentleman from Louisiana.
  Mr. BOUSTANY. I thank our ranking member.
  This bill is a unilateral blueprint for economic disarmament of the 
United States, let's be clear. Responsible energy production in the 
Gulf of Mexico is the backbone of American energy security and it 
creates good, high-paying jobs. This bill, their bill, dramatically 
increases taxes and will kill American jobs.
  Now, I have repeatedly questioned Secretary Geithner about the job 
loss that's going to be caused by new taxes on American energy 
producers. I have asked the administration to prove its claim of saving 
jobs, and they can't do it.
  And no one can define what a green job is and how these displaced 
workers will transition to one. Secretary Geithner says, ``The 
administration believes that oil and gas preferences distort markets by 
encouraging more investment in the oil and gas industry that would 
occur under a neutral system.''
  Again, he goes on to say, ``To the extent the credit encourages 
overproduction of oil, it is detrimental to long-term energy 
security.'' Who in this country believes we have enough American-made 
energy?
  If we want to move towards cleaner energy and renewable energy, as 
this bill purports to do, it's clear we need a transition strategy that 
involves natural gas. It must be part of that. This administration must 
stop its attack on American business and American independent oil and 
gas producers if we are going to make this a reality.
  The American public deserves a comprehensive energy plan that creates 
jobs, spurs innovation, and unleashes American genius. That's how we 
will solve this problem.
  Mr. CAMP. I yield 1 minute to a distinguished member of the Ways and 
Means Committee, the gentleman from Nevada (Mr. Heller).
  Mr. HELLER. Thank you. I appreciate the Member for yielding.
  Here is the bill again. I think we have seen this a couple of times. 
Here is the bill. It is 1,201 pages. What does this cost the American 
taxpayer? It is $700 million a page for this bill. What does this bill 
do? Every time you flip on your light switch, you are taxed. Every time 
you drive your kids to school, you are taxed. Every time you cook your 
family dinner, you are taxed. Air travel, food prices, electricity 
costs, gas prices, transportation cost, all will skyrocket under this 
bill.
  This bill will cost my district a half billion dollars in economic 
activity. It will cost my district 5,500 jobs. It will cost my district 
nearly 650 million in personal income loss in just the first year.
  Nevada, as a whole, will lose 14,000 jobs. Mining, housing, farming, 
ranching, tourism industries will be devastated at a time when Nevadans 
are hurting. The majority can't afford the time for hearings or debate, 
but Americans can't afford this bill.
  Mr. CAMP. Madam Speaker, at this time, I yield 1 minute to a 
distinguished member of the Ways and Means Committee, the gentleman 
from Illinois (Mr. Roskam).
  Mr. ROSKAM. I thank the gentleman for yielding.
  You know what's happening in suburban Chicago is there are businesses 
who are really in a touch-and-go position right now. They are treading 
water. They are barely keeping their heads above the surface of the 
water. And what they expect from this Congress is for us to come along 
and literally throw them a lifeline. But you know what this bill is? 
This bill is a bowling ball. It comes along, it says, Hey, there you 
go. Hit that with a thud right on your chest. Deal with it, because we 
are debating ideology today.
  My district says let's do the right thing, let's do the 
transformational thing, but let's not give our markets over to the 
Chinese, where they have clearly said they are not in this game. Let's 
not give our markets over to the Indians where they say they are not in 
this game. Let's not put an additional

[[Page 16693]]

$3,100 tax on a family of four. Let's offer a lifeline to the American 
public. Let's pull the plug on this bill.
  Mr. CAMP. At this time, Madam Speaker, I have one speaker remaining.
  The SPEAKER pro tempore (Mrs. Tauscher). The gentleman has 1 minute 
remaining.
  Mr. CAMP. At this time, I yield 1 minute to the distinguished 
gentleman from the Ways and Means Committee, the gentleman from 
California (Mr. Nunes).
  Mr. NUNES. Madam Speaker, don't be deceived by the comments of the 
Democratic Party. This bill is a tax increase. This bill is the largest 
tax increase in American history.
  I ask my Democratic friends, Is this really what you have come to? Do 
you want to throw away the economic prosperity for nothing, because 
that's what this bill does. And for what, to satisfy the twisted 
desires of radical environmentalists.
  I would ask my colleagues one more question. How will you force 
China, India, and anyone else to accept this economic suicide pact? The 
dirty little secret is that you can't.
  While you congratulate each other today, I remind my colleagues the 
State of California is out of water. We have communities with 40 
percent unemployment. And in the meantime, Democrats bring up fairy-
tale legislation to the floor, phantom green job legislation.
  However, we agree on one thing. We should try to reduce our carbon 
emissions. Republicans have a plan, an all-the-above plan where we 
drill for American resources, we drill for oil in America. We take the 
revenue and we put it into solar, wind, nuclear technologies. That's a 
real plan, Madam Speaker. This bill is a scam.
  Mr. RANGEL. I would like to yield to Mr. Fattah of Pennsylvania for 
the purpose of a unanimous consent request.
  Mr. FATTAH. I thank the gentleman for yielding.
  Madam Speaker, I rise for a unanimous consent in support of this very 
important bill on behalf of my four children and for millions of young 
Americans who we hope never to see another die on a foreign battlefield 
trying to get oil from some other place in the world. We need 
independence in our energy.
  Mr. RANGEL. Madam Speaker, I would just like to conclude, this is a 
very historic moment in our Nation's life where we have an opportunity 
to provide leadership to the whole world to prevent the continuation of 
the global warming. I wish it had been more positive from the other 
side that they would have had some contribution to make in order to 
make certain that our Nation maintains the leadership that it has.
  I would like to yield the balance of my time to Chairman Waxman of 
the Energy and Commerce Committee, with your kind permission.
  The SPEAKER pro tempore. The gentleman from California is recognized 
for 2\1/2\ minutes.

                              {time}  1530

  Mr. WAXMAN. At this point I'd like to yield 1 minute for the purpose 
of a colloquy to the gentleman from Florida (Mr. Grayson).
  Mr. GRAYSON. I rise to enter into a colloquy with the chairman of the 
Energy and Commerce Committee, Mr. Waxman.
  My attention today is to draw attention to the need for further 
research and work concerning the effect of ongoing changes in climate 
and on the frequency and intensity and effects of hurricanes.
  As you know, damages from hurricanes--in terms of human lives, 
infrastructure, and property--have grown in scope and cost; and it is 
critical that we continue to make progress in furthering our 
understanding of the science behind hurricanes. Doing so will 
ultimately help vulnerable communities in my district, in Florida, and 
elsewhere in the United States prepare for and reduce the impacts from 
hurricanes.
  I ask that a portion of the allowance value in H.R. 2454 be directed 
towards research on hurricanes at a new $50 million National Hurricane 
Research Center in my district in Orlando. The National Hurricane 
Research Center in Orlando will be a worldwide center of expertise in 
the 21st-century science of meteorology.
  In a world already affected by global warming, it will help to 
develop both short-range and long-range hurricane forecasting, conduct 
practical research on mitigation of hurricane damage, disseminate to 
the public realtime information on hurricanes----
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman 1 additional minute.
  Mr. GRAYSON. Advise policymakers and the public, and expand knowledge 
on what can and should be done to impact the frequency, course, and 
human and property consequences of hurricanes.
  Mr. WAXMAN. I share the gentleman's concern about the need for 
research on hurricane intensity and frequency and effects. The harm 
from hurricanes is only going to increase with global warming, and we 
need to better understand the connections and impacts.
  H.R. 2454 includes domestic adaptation provisions giving States 
substantial resources to study and adapt to climate change. Based on 
our estimates, the bill will provide up to $1 billion per year from 
2012, when the program starts, through 2021. From 2022 through 2026, 
the amount will be over $2 billion annually.
  Research on hurricanes is explicitly listed as an authorized use of 
these revenues. The project the gentleman mentions is among the type of 
activity that would be eligible to received funding under these 
provisions.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
  Mr. GRAYSON. Mr. Chairman, I understand that H.R. 2454 includes 
provisions directing allowance value towards State adaptation. I hope 
that we will be able to work together as this bill moves forward to 
make certain that hurricane research receives full funding and that we 
are able to ensure that the work of the National Hurricane Research 
Center will be supported.
  Mr. WAXMAN. The gentleman has discussed this project with me, and I 
think it's a very worthwhile project. I look forward to working on it 
and making it a priority as the legislative process moves on.
  Mr. GRAYSON. I thank the chairman for his support of our efforts to 
ensure that our hurricane research efforts are adequately supported.
  Mr. BARTON of Texas. Can I inquire how much time we have on the last 
part of the debate?
  The SPEAKER pro tempore. The gentleman from Texas has 30\3/4\ minutes 
remaining. The gentleman from California has 28\1/2\ minutes remaining.
  Mr. BARTON of Texas. Well, I want to compliment Chairman Waxman on 
apparently getting another vote--of Congressman Grayson--at the cost of 
4,100 jobs in Congressman Grayson's district in the year 2012.
  With that, I want to yield 1 minute to a distinguished member of the 
committee, the gentleman from Kentucky (Mr. Whitfield.)
  Mr. WHITFIELD. Mr. Speaker, I rise to speak in opposition to the 
bill. This legislation is not so much about stopping the import of 
foreign oil as it is designed to change the way we produce electricity 
in America.
  Today, 52 percent of all electricity produced is produced with coal, 
and this bill will require the use of permits to burn coal. In my State 
of Kentucky, the utilities believe--and they have looked at this 
closely--that in order to comply with this legislation, they will have 
to spend an additional $500 million.
  As we look around the country, we see that only about eight States 
will really benefit in the sense that their electricity rates will not 
go up. The problem with this is that as you increase the cost to 
produce electricity, that makes the United States less competitive in 
the global marketplace, because when companies decide where they're 
going to locate and build new plants, they look at cost of production, 
and one big cost is electricity.

[[Page 16694]]

  And so those of us who oppose it do so genuinely because we believe 
that at a time when we are in an economic recession, we should not be 
jeopardizing more jobs.
  Mr. WAXMAN. I'm pleased at this time to yield 1 minute to the 
gentlewoman from Illinois (Mrs. Halvorson).
  Mrs. HALVORSON. Mr. Speaker, I thank the gentleman for yielding. 
Chairman Waxman, I'm pleased, as I know you are, with the work of the 
Energy and Commerce and Agriculture Committee and what we have done to 
address the concerns of agriculture producers and forest landowners in 
this historic bill.
  I would like to clarify provisions in this bill regarding section 
795, Exchange for Early Action Offset Credits, and section 740, 
Requirement of Early Offset Supply. These provisions attempt to fairly 
compensate farmers and others who have been enrolled in voluntary 
offset programs since 2001.
  I have noted the legislative goal of providing equity and fairness to 
those early actors and believe that further clarity would improve the 
understanding of those who are eligible under the requirements in 
section 740. Therefore, to remove the possibility of uncertainty of 
economic harm to the holders of potential credits under section 740 and 
those that would be compensated under section 795, it is my 
understanding that registries like the Chicago Climate Exchange and 
their partners should qualify in all respects to the provisions----
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. WAXMAN. I yield the gentlewoman an additional 30 seconds.
  Mrs. HALVORSON. Provisions in section 740(a)(2). I believe this is in 
the spirit and intention of the legislation. Is that the chairman's 
understanding?
  Mr. WAXMAN. The gentlewoman is correct that the provisions of section 
795 and 740 are intended to fairly compensate farmers and their 
partners who have enrolled in voluntary programs and have taken early 
action to reduce carbon pollution.
  All existing voluntary offset programs with strong standards for 
environmental integrity would meet the requirements of section 740. We 
expect that offset credits registered with the Chicago Climate 
Exchange, along with the credits from other recognized voluntary 
programs, will provide an important source of offset credits in the 
early years of the program.
  Mr. BARTON of Texas. I planted some trees on my grandfather's farm 30 
years ago. I hope that that qualifies under that section of the bill.
  I want to yield 2 minutes to the distinguished member of the 
committee, the gentleman from Arizona (Mr. Shadegg).
  Mr. SHADEGG. I thank the gentleman for yielding. Passing this bill at 
this time will be a tragic error. It simply cannot be justified on a 
cost-benefit analysis. Every day we make decisions in our lives by 
balancing the costs of our decisions with the benefits of those 
decisions; and on that basis, this bill can't be justified.
  As a Republican who crossed my leadership on many major-profile 
bills, I urge my colleagues on the other side who are being pressured 
and all my colleagues who have doubts to carefully think through this 
vote. Crossing your leadership is not fun or easy, but sometimes its 
the right thing to do. I know. I've done it.
  First, while we have been told that the science on this issue is 
settled, it clearly is not and is becoming less and less settled every 
day. Carbon dioxide emissions in the United States have gone up every 
year since 2001, but global temperatures have remained flat.
  Carbon dioxide emissions are going up; global temperatures have been 
flat since 2001. They have stopped going up almost a decade ago.
  More and more scientists are coming forward every day casting doubt 
on the alleged consensus that greenhouse gases are causing global 
warming.
  Joanne Simpson, the first woman in America to receive a 
meteorological Ph.D., expressed relief upon her retirement last year, 
saying she could now speak freely about her nonbelief. Dr. Kiminori 
Itoh, a Japanese environmental physical chemist, recently said--and he 
contributed to the U.N. climate report--he called man-made warming the 
worst scientific scandal in history.
  Second, even if you assume that man-made greenhouse gases and carbon 
dioxide are causing global warming, this bill can't be justified 
because it doubles the cost of reducing carbon dioxide emissions.
  Witnesses testified before our committee that they can control 
CO2, but that the cost of doing so under this bill would be 
twice as much. And why is that? It's because they have to pay first to 
buy carbon credits and then they have to spend the capital to improve 
their plants.
  Mr. BARTON of Texas. I yield the gentleman 15 seconds.
  MR. SHADEGG. Those costs get passed on to American consumers. Why 
should we double those costs? My colleagues on the other side want the 
revenue of the carbon credits that have to be purchased. That money 
ought to go into the capital cost of reducing carbon emissions, but 
that money won't do one bit for that cause.
  I urge my colleagues to vote against this dangerous bill.
  Mr. WAXMAN. Mr. Speaker, I'm pleased at this time to yield 1 minute 
for the purpose of a colloquy to the distinguished chairman of the 
Agriculture Committee, the gentleman from Minnesota (Mr. Peterson).
  Mr. PETERSON. I want to thank Chairman Waxman for his leadership and 
cooperation on this bill and would ask him to engage in a colloquy 
regarding subtitle E of title III, which contains a host of provisions 
amending the Commodity Exchange Act.
  Mr. WAXMAN. I'd be pleased to do so.
  Mr. PETERSON. These provisions are among those that triggered the 
referral of H.R. 2454 to the Agriculture Committee, which has 
jurisdiction over the CEA. Some of these provisions would deal with 
over-the-counter energy derivatives and credit default swaps, mirror 
provisions in legislation, H.R. 977, passed by our committee in 
February. Other provisions are similar, and still others are wholly 
different. H.R. 977 is awaiting action in the Financial Services 
Committee.
  As the gentleman knows the Financial Services and Agriculture 
Committees will be working on financial regulation reform, part of 
which will include derivatives regulation reform. As such, Chairman 
Frank and I initially resisted the inclusion of these CEA amendments in 
H.R. 2454. However, we understand that some Members feel strongly about 
sending a signal to address potential excessive speculation in 
derivative markets and rein in some of the current trading practices on 
Wall Street.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
  Mr. PETERSON. To that end, we agreed not to object to the inclusion 
of the CEA amendment subject to the understanding that the ultimate 
resolution of these provisions would take place in the context of 
financial regulation reform legislation. I want to confirm this 
understanding we have among the chairmen.
  Mr. WAXMAN. The gentleman has correctly described our understanding.
  Mr. PETERSON. I want to thank the distinguished chairman for his 
confirmation, and I look forward to working with him on this bill as it 
moves through the legislative process.
  Mr. BARTON of Texas. I yield myself 15 seconds to explain what they 
just said. What they just said was, Mr. Speaker, is that you have got 
something in the bill that we don't agree with, but we're going to let 
you put it in the bill with the understanding we will take it out later 
on in Agriculture and Financial Services. I commend the Agriculture 
chairman for his strong resistance to that part of the bill.
  I want to yield 2 minutes to a distinguished member of the committee, 
the ranking member of the Oversight and Investigation Subcommittee, the 
gentleman from Oregon (Mr. Walden).
  Mr. WALDEN. I want to talk about a couple of things here involving 
this bill: process, cost, and language.

[[Page 16695]]

  This is the 309 pages that were printed at 1:34 in the morning and 
submitted to the Rules Committee sometime around 2:49 this morning. 
Nobody--it's impossible--I can't imagine anybody's read this.
  I've just discovered they change the hydro language so that--it used 
to say before 1992 it counted, now they have gone back 4 years. 
Somewhere in the middle of the night we have added 4 years of hydro as 
renewable. It's page after page after page of technical changes that 
have major, major impact.
  There were nine committees this bill was referred to, and yet only 
one of them was allowed to have a markup on the bill, the Energy and 
Commerce Committee. The other eight waived. So a lot of this got put 
together in the dark of night, backroom deals, whatever you want to 
say, private conversations; but no committees held a hearing on this 
new bill, 309 pages, amending the 1,201 that are sitting there on the 
desk.
  Costs. Look at fuel costs: $811 more for Oregonians in 2012. If 
you're a PacifiCorp customer in Oregon, you can expect in 2012 to pay 
17.7 percent higher electricity costs. They have run the numbers 
according to the bill.
  You want to talk about a massive new welfare program for energy? It's 
in here too. In fact, this energy tax refund, in effect, this proposed 
energy stamp bill, 16 times the current U.S. welfare program, the TANF 
program. Sixteen times. It's a whole new welfare program for energy.

                              {time}  1545

  If energy costs aren't going up on the rest of us, why do they have 
to have this? Because it does drive up energy costs. That's going to 
hurt small businesspeople. It's going to hurt families. It's going to 
cost jobs. And we don't know for sure what else it does because I can't 
imagine anybody on this floor has read every word of this bill that was 
filed at 2:49 a.m. in the Rules Committee and been able to juxtapose 
what's here against the 1,201 pages.
  I urge a ``no'' vote on this bill.
  Mr. WAXMAN. Madam Speaker, I am pleased at this time to yield 1 
minute to the very distinguished Representative from the State of Iowa 
(Mr. Boswell).
  Mr. BOSWELL. I will say, with some reservation, that I support H.R. 
2454, the American Clean Energy and Security Act. I am pleased with the 
deal between Chairman Peterson and Chairman Waxman to protect America's 
farmers and ensure many of agriculture's concerns were resolved. They 
both should be commended for their hard work. This bill makes 
tremendous progress on jobs, energy, national security and the 
environment. However, one troubling issue remains. A formula partially 
based on retail sales means consumers in coal-reliant States, like Iowa 
and the Midwest, who need the most help will see greater rate increases 
than consumers in other parts of the country.
  When Iowa's unemployment rate is at its highest in over 20 years, 
Iowans are struggling to repay student loans, pay rent, and put food on 
the table, why are we asking those of us in the heartland to shoulder 
more of the burden than others? This is neither fair nor equitable 
because it creates winners and losers.
  I am not giving up. This bill is worth supporting; but it is my hope 
that when the House addresses this legislation again, the allocation 
formula will be more equitable for Iowans and Midwesterners alike.
  I rise today with some reservation to support for H.R. 2454, the 
American Clean Energy and Security Act. I am proud that this 
legislation preempts potentially devastating regulation by the EPA, and 
responds to our constituents' demands to prevent that from happening. I 
am also proud that it would harness the most innovative workforce in 
the world to create a clean energy future, creating millions of jobs in 
the process. Energy independence is vital to our national security and 
economic future, and this legislation advances this goal while 
confronting the serious challenge of climate change.
  However, when we started this process I had a list of many things 
which concerned me and needed to be addressed, such as fixing the 
indirect land use issues under the Renewable Fuel Standard-2, a robust 
agricultural offset provision which recognized early adaptors and was 
exclusively operated by USDA to implement and oversee the agriculture 
and forestry offset program, and the 50-50 allocation formula. I was 
pleased with the deal that was struck between Chairman Peterson and 
Chairman Waxman to ensure many of those issues were resolved. They both 
should be commended for their hard work.
  However, one key concern has yet to be addressed. As currently 
written, this legislation provides local distribution companies with 
allowances through a formula equally weighted between historic 
emissions and retail sales. Since the intent of the legislation is to 
reduce emissions, and the intent of providing allowances is to protect 
consumers from price increases, basing allowances on retail sales 
reduces the legislation's effectiveness. While certain providers will 
receive enough allowances to offset 100 percent of the cost of 
compliance, many companies throughout the Midwest will be forced to 
purchase numerous allowances, passing those prices on to their 
consumers. Consumers in coal-reliant states such as Iowa--who need the 
most help--will see far greater rate increases than consumers in other 
parts of the country.
  This doesn't have to happen. Congressman Loebsack and I offered an 
amendment to change the formula so that allowances will be distributed 
based solely on historic emissions. I am gravely disappointed that the 
Rules Committee did not make this amendment in order.
  Under the amendment I had hoped to offer on the floor today, a 
utility would receive emission allowances based only on its emitting 
assets, like coal and natural gas-fired plants. It would not receive 
emission allowances for non-emitting nuclear and hydro assets, because 
they don't need them.
  As such, there will not be enough allowances for higher-emitting 
electric utilities in the Midwest that need them to comply with H.R. 
2454. This makes the bill very different from the Clean Air Act, which 
distributed sulfur dioxide emission allowances only to utilities that 
actually had sulfur dioxide emissions to reduce.
  Under the current formula, utilities in my area will only receive 65 
percent of compliance costs at most, and less than 50 percent in some 
areas--the shortfall will cost hundreds of millions of dollars. When 
you compare this to other regions of the country they will receive 100 
percent of the needed allocations. Because of this inequity consumers 
in the Midwest will have to make up the difference; their rates will go 
up far more than consumers in other areas. This is neither fair nor 
equitable, because it creates winners and losers.
  The retail sales component of the formula benefits companies like FPL 
and Exelon with heavy nuclear or hydro assets, because they will 
receive emission allowances for assets that don't emit.
  They don't need these windfall allowances to comply with the bill's 
cap, so they can sell them in a carbon trading market for a profit.
  If you don't believe that, just read a June 10th Bernstein Research 
analysis, in which Exelon's CEO, John Rowe, predicted that H.R. 2454 
``will add $700 to $750 million to Exelon's annual revenues.''
  In these tough economic times when Iowa's unemployment rate is at its 
highest in over 20 years, when Iowan's are struggling to repay student 
loans, pay rent, and put food on the table, why are we asking those of 
us in the heartland to shoulder more of the burden than others?
  I would also like to take a moment to talk about another amendment I 
tried to offer. My amendment would have provided a government backed 
loan guarantee for the construction of a renewable fuel pipeline.
  Transporting fuels by rail and truck has higher energy input 
requirements and much higher greenhouse gas emissions. CO2 
emissions are reduced by 30 percent when comparing liquid fuel 
transported by pipelines vs. railcars and 87 percent when comparing 
pipelines to trucks.
  Even though my amendment to bring equity to the formula was not ruled 
in order I am not giving up. I plan to work with my colleagues in the 
other body to bring this serious issue to light and to work towards a 
solution that works for Iowa families. It is my hope that when the 
House addresses this legislation again the allocation formula will be 
more equitable for Iowan's and Midwesterners alike.
  Mr. BARTON of Texas. Madam Speaker, I yield 3 minutes to the ranking 
member of the Energy and Air Quality Subcommittee, Mr. Upton of 
Michigan.
  Mr. UPTON. Madam Speaker, there's an old saying, ``Will the last one 
out please turn out the lights.'' Well, this bill turns out the lights 
for many

[[Page 16696]]

Americans. And no matter what you say, this bill does not have the job 
protections that will prevent jobs from leaving our country and going 
to India or China. What do you tell that small refinery that came to 
our committee a couple of weeks ago, a small refinery that's got 1,200 
jobs--that it's going to cost $150 million to ramp up the changes that 
they're going to have to do, and they're going to end up going out of 
business? That asphalt and that petroleum is going to be made someplace 
else--India.
  What do you tell that small company that I visited last month in 
Niles, Michigan, a company that figures out that their energy costs are 
going to increase by perhaps as much as $20,000 dollars a month? Well, 
they're thinking about it. They want to stay in business. They're 
thinking about telling the folks not to come to work anymore during the 
day so they can do the night shift, and they can maybe pay lower 
utility rates. There are more coal-fired plants in China than there are 
in the United States, India and Britain combined; and it's going to 
double by the year 2030. Emissions in China are going to grow by 86 
percent.
  What does this bill do about emissions in China or India? It does 
nothing. Environmental restrictions in this country, protections, are 
the reason why steel, per ton, has one-third the emissions in this 
country than in China. We want those jobs to stay in this country and 
not go to China. Michigan, my State, we're already at 15 percent 
unemployment and headed maybe towards 20. We were told earlier this 
week that we're going to have as many as 100,000 people, unemployed 
folks, lose their benefits that they're receiving today because those 
benefits are going to be exhausted. I didn't come up with the figure 
that gasoline costs were going to increase by 77 cents a gallon because 
of this legislation or that diesel prices were going up 88 cents a 
gallon. It wasn't me. It was the CBO who said that. I hope and pray 
that they're wrong because I want to protect our workers here to make 
sure that we can grow jobs, not lose them.
  Consumers Energy came up with a study, a major utility in my part of 
the State, that shows that the estimate of the impact, including 
certain requirements in this bill, are going to grow as much as 38 
percent by the year 2024. Some folks say that it's only going to cost a 
postage stamp. Well, I'm glad I bought a lot of promise stamps because 
these stamps are good for life. If they're not worth 44 cents, these 
may be worth thousands of dollars apiece based on what these costs are 
going to do to the average consumer.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. UPTON. Let me just close. We as Members of Congress may have to 
declare these in our financial disclosure reports if we bought more 
than 10 of them.
  Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentlelady from 
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. I thank the gentleman very much. As he 
knows, we've been working on this because I come from an area that 
certainly has vested in the energy industry with a number of jobs that 
are tied, huge numbers of jobs.
  To my constituents, we are working on your behalf today. This bill 
does not discount your jobs or your commitment to this Nation because 
1.7 million jobs will be created, $750 per household will occur in 
savings and $29 billion in consumer savings will occur.
  Also, I appreciate the chairman for working with me to ensure that we 
are investing in small business, guaranteeing that minority- and women-
owned businesses will be involved in energy-innovative competition, 
language and amendments that I got into this legislation.
  In addition, we are still working on the question of whether or not 
our older homes will be impacted negatively. The language in the bill 
says new construction only. I want to continue to work with the 
chairman to ensure that we will also have additional protection for 
older homes. Jobs--we are going to protect jobs.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. WAXMAN. I yield the gentlelady 30 additional seconds.
  Ms. JACKSON-LEE of Texas. There is language in the bill that I wish 
my friends would read because we insist that the Secretary of Labor 
shall monitor the potential growth of affected and displaced workers, 
if any, and continue to have the funding that I got in the bill to 
ensure that they're not left out in the cold. Mr. Chairman, in spite of 
the good work, there are those who are saying that our breakthroughs in 
alternative low-carbon technologies will not be fast enough, that we're 
going to lose petroleum jobs, we're going to lose jobs. I believe we 
can work through this and we will not lose jobs but gain jobs because 
of the new technology. However there is still time to work on this 
issue of the large and small refineries so that can be efficient and 
operational. Also manufacturing under this bill will only be efficient 
not extinguished.
  I would like to yield to the chairman.
  Mr. WAXMAN. I say to you that they are wrong. This bill is going to 
produce breakthroughs. It pushes the development of new technology, and 
it's going to lead to more jobs.
  Ms. JACKSON-LEE of Texas. Will you continue to work with me?
  Mr. WAXMAN. I look forward to working with you. You have played an 
important role and made enormous contributions to this legislation. I 
thank the gentlelady.
  Mr. BARTON of Texas. Could I inquire as to the time remaining on both 
sides, Madam Speaker?
  The SPEAKER pro tempore. The gentleman from Texas has 22\1/4\ minutes 
remaining. The gentleman from California has 23 minutes remaining.
  Mr. BARTON of Texas. I yield 1 minute to a member of the committee 
from Denton, Texas, or actually Flower Mound, Texas, Dr. Burgess.
  Mr. BURGESS. I thank the chairman for yielding.
  Madam Speaker, last night I offered an amendment that would prohibit 
the transfer of or receipt of carbon and credit derivatives. And why is 
that important? Well, this bill will ensure a price for carbon, and 
it's going to ensure a market for trading carbon credits. This is a 
breeding ground for financial malfeasance. We are aware that if 
something has a price, Wall Street will find a way to create a 
financial instrument to option, swap or hedge and create fees for 
trading those instruments and drive value from the price of the 
underlying asset. The current financial crisis has heightened our 
awareness of the use of derivatives. Here is the problem: None of us 
can visualize a ton of carbon dioxide, yet that's what we're going to 
be buying and selling in these credits. Where would you put a ton of 
carbon dioxide? What kind of container would it come in? In fact, we've 
had multiple hearings in our committee about problems with the futures 
market in trading oil. But at least someone eventually has to take 
possession of that oil. No one has to take possession of that chunk of 
blue sky that we are going to call a ton of carbon dioxide. My 
amendment would have stopped the invention of carbon credit derivatives 
before it starts. It would have stopped the next Enron before it 
starts. Unfortunately my attempt to prohibit this activity was denied. 
I can only ask why.
  Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from New 
Jersey (Mr. Holt) for the purpose of a colloquy.
  Mr. HOLT. Madam Speaker, I thank the Chair.
  Energy, climate and environment are principal subjects that I have 
spoken about and worked on for decades, before and since I first came 
to Congress and to work on these issues, I believe, is a principal 
reason my constituents sent me to Congress. I admire the chairman's 
skill in assembling a bill, and I fully support the chairman's efforts 
to reduce the release of greenhouse gases. However, I'm deeply 
concerned that the bill does not include the research funding necessary 
to reach the target of 80 percent emission reduction set in the bill. 
We must transform the way we produce and use energy. We cannot meet 
this goal with today's technologies; and this bill, as written, will 
not provide the billions of

[[Page 16697]]

dollars needed to fund and develop the future technologies.
  So I'm here to ask the chairman of the committee if I may have his 
assurance that he will work with me to increase the amount of research 
and development funding in this bill and other legislation that we need 
in order to reduce our reliance on foreign fuels and to slow the rate 
of growth of climate change.
  Mr. WAXMAN. I thank the gentleman for his comments. There is much in 
this bill to promote research and to bring about the necessary 
innovation.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. WAXMAN. I yield myself another 10 seconds.
  However, I agree that we will need billions more in research and 
development funding into new innovative ways to produce and use energy. 
I pledge to work with you to provide additional funding for energy 
research and development in this bill as this bill moves forward.
  Mr. BARTON of Texas. I yield for a unanimous consent request to a 
member of the committee, Mr. Buyer of Indiana.
  Mr. BUYER. Madam Speaker, I rise in opposition to this legislation.
  I rise in defense of the Midwest and the State of Indiana to oppose 
this carbon cap and tax bill. This is the most economically disastrous 
energy policy our nation has ever considered. It's over 1200 pages and 
full of last minute changes! This is not the way, or the time, to 
consider a rushed policy that will devastate our economy. The American 
people deserve more from their Representatives than a bill of empty 
promises that will send their jobs overseas, raise the cost of living, 
and increase our dependence on energy from foreign countries.
  Over the past few years, I have participated in multiple hearings 
concerning carbon dioxide emission control. During the mark-up of H.R. 
2454 by the Energy and Commerce Committee, I, along with my colleagues, 
continued to raise concerns about this policy's negative effects on 
American ratepayers, businesses and industry. Importantly, we offered 
many amendments in the mark-up we would like to consider on the Floor 
today, but we have been denied the opportunity. We would have added 
nuclear energy--the cleanest and most efficient energy generation--but 
were denied. Other amendments would have offered off-ramps should this 
legislation prove too costly to the American people. Unfortunately, no 
significant changes providing off-ramps or safety-valves have been 
offered to the American people, and our concerns have not been 
addressed.
  H.R. 2454 would hand down the single biggest energy tax in the 
history of our country. Now is not the time! The unemployment rate is 
at the highest we have seen in over 25 years. Our automotive industry 
is just beginning new business plans. This week we are selling off more 
of our national debt to foreign countries, and next month we are 
considering a national healthcare plan projected to cost $3.4 trillion! 
It is not the time to pass a policy that will result in an annual 
additional cost of $1,241 more in energy costs for a family of four. It 
is not the time to pass a policy that will drive up the price of goods 
and services, or export our hard-earned jobs to countries like China. 
This legislation will kill jobs. Let's talk numbers. An estimated 
1,145,000 will be lost under cap and trade. There is a whole section 
dedicated to unemployment with a price tag to the taxpayer of over a 
billion dollars! Farmers will also suffer. This act would lower farm 
profits by 28: percent in 2012 alone, and 57 percent from 2012-2035. 
Projections show this would result in total gross domestic product 
losses averaging $383 billion annually from 2012-2035 and cost our 
country a total of $9.4 trillion dollars. Where will that money come 
from?
  Well, under this proposal, the Midwest, for one. This cap and tax 
bill unfairly targets the heartland of our nation. Indiana is the sixth 
highest carbon dioxide emitting state in the nation. As a state reliant 
on coal for 96 percent of its electricity, Indiana would be unfairly 
burdened by the current legislative proposal for producing American-
made goods with American-made energy. What kind of energy policy is 
that? Under the current language, permits are allocated to utilities 
using a basis of 50 percent of their emissions and 50 percent of their 
retail sales--providing utilities without emissions access to 
allowances. Sending allowances to those that do not require them does 
not benefit the people or states that need them most. I offered an 
amendment in Rules to correct this bad policy. My amendment would have 
modified the utility allocation formula to being strictly based on 100% 
of a utility's emissions. It is common sense: the utilities reliant on 
the costlier fuel should be the ones receiving the help. We shouldn't 
be handing out allowances to those who do not need them! Under the 
current formula, utilities of similar size in California would get 2.43 
times the allowances of an Indiana utility--and a Washington utility 
would receive 8.84 times the allowances of a utility in Indiana! That 
is not acceptable! Under the current bill, our rates will rise by a 
projected 90 percent by 2035, driving our manufacturing jobs elsewhere 
and the costs of goods sky high. The State of Indiana has worked hard 
over the past several years to bring new jobs and industries to 
Hoosiers. This bill could undo all the progress we have made. 
Unfortunately, my amendment was denied by the Rules Committee.
  I call upon my colleagues to see this is not the time for this bill. 
An energy tax anticipated to slow temperature increases by merely 
hundredths of a single degree Fahrenheit by 2050 is not good policy. I 
strongly urge Members to protect the economic well-being of the 
American people and vote no on this bill.
  Mr. BARTON of Texas. Madam Speaker, I yield 2 minutes to the 
distinguished ranking member of the climate change committee and the 
former chairman of both the Judiciary and the Science Committees, Mr. 
Sensenbrenner of Wisconsin.
  Mr. SENSENBRENNER. Madam Speaker, this bill is not only everything 
that the opponents have said it is, but it is also a massive transfer 
of wealth from the United States to foreign countries. And the reason 
it is that is because this bill legalizes offsets. Over 40 percent of 
the offsets that have been created under the Kyoto Protocol have come 
from China. The $2.2 trillion that will be transferred through purchase 
of offsets in foreign countries will be the largest nonmilitary foreign 
aid bill that this House of Representatives has ever passed.
  The chart that is beside me here shows that the $2.2 trillion in 
foreign giveaways is equal to 210 times the amount of money we give to 
help people with domestic heating oil and propane; 119 times the amount 
of money we give for making buildings more efficient; 111 times the 
money we give for clean vehicle technology; 33 times the money that we 
give for domestic natural gas consumers; 11 times the amount that we 
give for the domestic industrial sector; and five times the amount that 
we give to help out our domestic electric consumers.
  Madam Speaker, this money should be spent at home. We have enough 
problems at home that we have to deal with, and I think the Congress 
has recognized this today. But let's not send more money overseas, 
money that will come through higher prices at the pump, higher bills 
from our utilities, higher food prices when we buy them in the 
supermarket.
  Vote this bill down, and keep the money at home.
  Mr. WAXMAN. Madam Speaker, at this time I yield 2 minutes to the 
gentleman from Massachusetts, Chairman Frank, for purposes of a 
colloquy.

                              {time}  1600

  The SPEAKER pro tempore. The gentleman from Massachusetts (Mr. Frank) 
is recognized for 2 minutes.
  Mr. FRANK of Massachusetts. Madam Speaker, I yield to the gentleman 
from New York (Mr. McMahon).
  Mr. McMAHON. Thank you, Chairman Frank.
  Madam Speaker, I rise today to thank Chairman Frank, Chairman Waxman, 
Chairman Markey and Chairman Peterson for agreeing to include in this 
good piece of legislation the manager's amendment language that makes 
clear that the sections of this bill that relate to the regulation of 
energy commodity derivatives shall be superseded by future 
Congressional financial regulatory reform if it comes forward.
  Specifically, the manager's amendment would add section 358 that 
renders ``null and void'' the sections of the American Clean Energy and 
Security Act dealing with energy commodity derivatives, as well as all 
related agency regulations, after Congress adopts future derivative 
reform legislation.

[[Page 16698]]

  I and many of my colleagues in the New Democratic Coalition have 
expressed concerns about many of the provisions included in subtitles D 
and E of this bill. The energy bill is not the place to set regulatory 
policy over our financial services industry.
  In coordination with the New Dems Financial Services Task Force, I'm 
in the process of crafting a bill that will take some of the best ideas 
of the President and the Congress to forge a consensus that protects 
American jobs and financial innovation. And while I and many of my 
colleagues would have liked to strike altogether much of the 
derivatives language from this bill, we understand the need to move 
this process forward and section 358 will allow us to provide a clean 
slate when we take up comprehensive reform this year.
  Despite the mess at AIG, the over-the-counter derivative market helps 
companies manage risks and create jobs. We also live in an age of a 
truly global economy. And if we don't get this right, many of our 
financial sector jobs, particularly in New York, will just disappear or 
be shipped offshore.
  Again, Madam Speaker, I thank our chairmen for the inclusion of 
section 358 in the manager's amendment. I and the New Dems look forward 
to working with you and having future discussions with the Senate and 
the White House.
  Mr. FRANK of Massachusetts. Madam Speaker, I will take back my time. 
You now have the answer, listening to the gentleman address myself, Mr. 
Waxman, Mr. Markey and Mr. Peterson, to that age-old question of how 
many chairmen does it take to answer a colloquy?
  I ask the gentleman from Massachusetts for 1 additional minute to 
finish the response to the colloquy.
  Mr. MARKEY. I yield further.
  Mr. FRANK of Massachusetts. And I want to say that the gentleman from 
New York has been a very articulate advocate for the very important 
functions of the financial community in New York in which many of the 
people in his district live, and he is very well informed about it. We 
agree with him, myself and members of the Financial Services Committee 
and the Agriculture Committee. Chairman Peterson, the gentleman from 
Minnesota, and I have worked with the gentleman from Massachusetts (Mr. 
Markey) and the gentleman from California (Mr. Waxman). And we have the 
agreement he alluded to.
  We are hard at work on a comprehensive, and I believe responsible, 
proposal for regulation of financial derivatives in their entirety. And 
it will, under the terms of this bill, become the operative word. So 
what we have here is a placeholder to tell Members we are aware of it.
  Earlier today, Chairman Gensler of the CFTC and Chairwoman Shapiro, 
in case we didn't have enough chair people in this, met with Mr. 
Peterson and myself. I am optimistic that we will have a proposal that 
responsibly, appropriately and toughly regulates derivatives without 
doing them harm. The gentleman is to be congratulated for making sure 
that that will be what will be in the bill.
  Mr. McMAHON. Thank you, Chairman Frank, and to all the chairmen for 
your strong leadership in crafting this important piece of legislation 
and reaching out to form this consensus.
  With that, I urge my colleagues to support H.R. 2454.


                         Parliamentary Inquiry

  Mr. GOHMERT. I have a parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will state his parliamentary 
inquiry.
  Mr. GOHMERT. Madam Speaker, in order to find out what we are doing, 
how much damage we are doing to the country, I tried to get a copy of 
the bill. We have out here on the table H.R. 2454 that has 1,090 pages 
in it. But I understood since debate in here that there are another 300 
pages that were added in the middle of the night.
  My inquiry is how do I get a copy of the other 300 pages that people 
here on the floor haven't had a chance to read or see? Where do we get 
that before we slam this and cram this down on the American people?
  The SPEAKER pro tempore. The amendment is printed in the Rules 
Committee report.
  Mr. GOHMERT. In the Rules Committee report. And Madam Speaker, where 
would I get that report?
  The SPEAKER pro tempore. The rule was passed earlier today.
  Mr. GOHMERT. Rules passed it earlier today?
  The SPEAKER pro tempore. The rule was passed earlier today.
  Mr. GOHMERT. That says basically we are going to the floor without 
everybody being able to get a copy in the Speaker's Lobby as is 
normally required?
  The SPEAKER pro tempore. The gentleman is not asking a parliamentary 
inquiry.
  Mr. GOHMERT. Well, I'm asking an inquiry because I really want to 
know. Normally, the rules require we have access to a copy of the bill 
so we can look at it.
  The SPEAKER pro tempore. The amendment was included in the Rules 
Committee report.
  Mr. GOHMERT. My inquiry is, where is it? There is one copy in the 
Rules Committee? Is that the answer?
  The SPEAKER pro tempore. It was part of the Rules Committee report 
that was part of the rule that was passed earlier today.
  Mr. GOHMERT. It was part of the rule passed earlier today. But where 
is a physical copy I can get, read and look at?
  The SPEAKER pro tempore. The Chair is not responsible for 
dissemination of documents.
  Mr. GOHMERT. The Chair is not responsible for disseminating copies. I 
appreciate that. I was just asking for where I can get a copy. I know 
that your hands are full. And congratulations on the position. I think 
the President did a great thing. But I'm still needing a copy of the 
other 300 mysterious pages that we don't get to see here.


                         Parliamentary Inquiry

  Mr. BARTON of Texas. Madam Speaker, I'm going to ask a parliamentary 
inquiry.
  The SPEAKER pro tempore. The gentleman will state his parliamentary 
inquiry.
  Mr. BARTON of Texas. Is there somewhere physically in the House of 
Representatives a copy of what we are voting on?
  The SPEAKER pro tempore. The engrossing paper is at the desk. As to 
copies, the gentleman has not stated a parliamentary inquiry that the 
Chair can answer.
  Mr. BARTON of Texas. All right. Let me digest that, Madam Speaker.
  In the meantime, I want to yield 1 minute to the distinguished 
Congressman from California (Mr. McClintock) 1 minute.
  Mr. McCLINTOCK. I thank the gentleman for yielding.
  Madam Speaker, when we talk about Herbert Hoover's mishandling of the 
recession of 1929, the very first thing that economists point to is the 
Smoot-Hawley Tariff Act that imposed new taxes on over 20,000 imported 
products.
  I believe the Waxman-Markey bill is going to be looked back upon as 
our generation's Smoot-Hawley Act. In fact, it is worse. It imposes new 
taxes on an infinitely larger number of domestic products on a scale 
that utterly dwarfs Smoot-Hawley. At least Hoover could argue that 
Smoot-Hawley made domestic products more competitive with imports. 
Waxman-Markey disadvantages American products.
  When California adopted similar carbon restrictions 3 years ago, we 
too were promised an explosion of green jobs. Instead, California's 
unemployment rate has skyrocketed to one of the highest in the country.
  I believe that if this bill becomes law, history guarantees us two 
things. Number one, the planet will continue to warm and to cool as it 
has been doing for billions of years; and two, Congress will have just 
delivered a staggering blow to our Nation's economy just at the time 
when it is most vulnerable.
  Mr. MARKEY. We would like to reserve at this time.


                         Parliamentary Inquiry

  Mr. BARTON of Texas. I have another parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will state his parliamentary 
inquiry.

[[Page 16699]]


  Mr. BARTON of Texas. Is there a rule of the House that requires a 
copy of the pending legislation to be present in or near the body?
  The SPEAKER pro tempore. The official papers are at the desk. The 
Chair is not aware of a rule concerning additional copies.
  Mr. BARTON of Texas. So there is no such rule?
  The SPEAKER pro tempore. The Chair is not aware of one.
  Mr. BARTON of Texas. I appreciate that honest answer.
  I want to yield 1 minute to the gentleman from Pennsylvania (Mr. 
Dent).
  Mr. DENT. Madam Speaker, I rise in strong opposition to this national 
energy tax. This bill is all cost and no benefit. And I want to read 
some excerpts from a letter that was sent to me from the Pennsylvania 
Public Utility Commission:
  ``This policy will have a profound adverse impact on the Commonwealth 
of Pennsylvania. If the Waxman-Markey bill were to pass, Pennsylvania 
is looking at a bleak scenario, a net loss of as many as 66,000 jobs, a 
sizeable hike in the electric bills of residential customers, an 
increase in natural gas prices, and significant downward pressure on 
our gross State product.''
  ``The cost estimates are staggering.''
  ``Congress has a responsibility to ensure that legislation enacted on 
this important topic is in the best interests of every State and region 
in the United States.''
  ``Residents of Pennsylvania will be severely and disproportionately 
harmed. It will be impossible to rapidly or immediately stop using 
power generated at existing coal-fired or natural gas-fired power 
plants without causing severe and protracted reliability problems.''
  ``Is Pennsylvania ready to acquiesce behind Federal legislation that 
will choke off our economy by displacing thousands of jobs and 
increasing utility bills for residential taxpayers? We hope not.''
  That is the Pennsylvania PUC. I say, save jobs. Save money. Vote 
``no.''
  Mr. MARKEY. The Chair recognizes the gentleman from Rhode Island (Mr. 
Langevin) for 1 minute.
  Mr. LANGEVIN. I thank the gentleman for yielding.
  Madam Speaker, I rise today in strong support of the American Clean 
Energy and Security Act. I thank our leaders who made this bill a 
priority, especially Chairman Waxman and the gentleman from 
Massachusetts (Mr. Markey) who worked tirelessly to bring this bill to 
the floor today.
  I have long been an advocate for reducing harmful carbon emissions 
and investing in a clean-energy economy. The effects of climate change 
are already beginning, and we must act now not only for this generation 
but for generations yet to come. By increasing the renewable energy 
standard, capping carbon emissions and investing in the creation of 
domestic clean-energy jobs, this bill is directing our Nation towards a 
sustainable and economically viable energy future.
  This bill also establishes five programs to protect consumers from 
energy price increases. I want to say that again. It establishes 
programs to protect consumers from energy price increases.
  I urge my colleagues to vote ``yes'' on the American Clean Energy and 
Security Act. It is time for America once again to lead on sustainable 
energy.


                         Parliamentary Inquiry

  Mr. BARTON of Texas. I have one more parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will state his parliamentary 
inquiry.
  Mr. BARTON of Texas. If a bill for which there is no copy were to 
actually pass this body, could the bill without a copy be sent to the 
Senate for its consideration, having no copy?
  The SPEAKER pro tempore. The official copy will be at the desk. The 
Chair cannot comment about extra copies.
  Mr. BARTON of Texas. The official copy will be at the desk. Could I 
inquire as to when that copy will be at the desk? Is it necessary that 
the official copy be at the desk in order for final passage to occur?
  The SPEAKER pro tempore. The official copy is always at the desk 
during consideration of the bill.
  Mr. BARTON of Texas. Then where is it, Madam Speaker?
  The SPEAKER pro tempore. At the desk.
  Mr. BARTON of Texas. Is it now at the desk? Is it now--I appreciate 
the Congressman who brought it in. Oh, that is not it. That is not at 
the desk.
  Well, while we research whether the official copy is at the desk, I'm 
going to yield 1 minute to the gentlelady from Oklahoma, Congresswoman 
Fallin, for 1 minute.
  Ms. FALLIN. Madam Speaker, I have to say that I am outraged. Here we 
are getting ready to vote on a piece of legislation, and we haven't 
even seen 300 pieces of this legislation. No one can even find the bill 
or even knows where it is at. And here we are talking about major 
policy that could change the face of America, that will certainly be a 
large tax increase to our taxpayers. And here we don't even know where 
the bill is. I'm just shocked at the way we are running this House 
today before we leave to go on our Independence Day holiday.
  And I will say that the government's first priority right now should 
be addressing our economy and jobs. And economists can tell you that 
one of the surest ways to prolong a recession and to damage an economy 
is to raise taxes. My friends on the other side of the aisle apparently 
didn't get that memo.
  This plan for carbon emissions taxes amounts to a $646 billion tax 
increase on the American public. It will have a negative effect upon 
every American family, upon business and upon family farms. Family 
energy costs will increase. In fact, it is said that utility costs can 
go up anywhere from 30 to 50 percent, not to even mention what cost 
increases will be upon manufacturing.
  So Madam Speaker, I will just tell you that I hope we get a copy of 
the bill so we can at least look at it before we enact this policy.
  Mr. MARKEY. I continue to reserve.
  Mr. BARTON of Texas. Madam Speaker, I'm going to ask unanimous 
consent for a brief recess to find the official copy that includes 
everything passed at the Rules Committee last night, because I am told 
that what is at the desk is missing 300 pages. That cannot be the 
official copy.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  Mr. MARKEY. I would object, but ask the gentleman to yield to me if 
he would.
  Mr. BARTON of Texas. Why don't you reserve the right to object?
  Mr. MARKEY. I reserve the right to object.
  Mr. BARTON of Texas. I will be happy to yield to my friend from 
Massachusetts on his reservation.
  Mr. MARKEY. The manager's amendment, which I think is what is of 
concern to him, is on the Rules Committee Web site that can be accessed 
right now, and has been there and available for any Member or any 
citizen of the United States to be able to read. It is on the Web site.
  Mr. BARTON of Texas. Do Members have access to the Web site on the 
floor of the House?
  Mr. MARKEY. In the Cloakroom there is access to it. We have these 
similar technological capacities in our cloak room, yes.
  Mr. BARTON of Texas. In the Cloakroom, but not on the floor.
  Mr. MARKEY. It is also available at the desk.

                              {time}  1615

  Mr. BARTON of Texas. Reclaiming my time on the gentleman's 
reservation on my unanimous consent request, what is at the desk for 
any Member of this body who is engaged in the debate is not apparently 
the official copy. It is missing 300 pages. Now what is on the Web site 
is almost immaterial because it is unprecedented in this gentleman's 
history in the Congress to not have some, usually at least two copies 
that both sides can access during the debate on the floor.
  I am just asking for a 15-minute recess to get an actual copy that we 
can access.
  I yield to the gentleman on his reservation.

[[Page 16700]]


  Mr. MARKEY of Massachusetts. I continue to reserve my right to 
objection, there is a copy up there on the Speaker's podium at the 
desk.
  Mr. BARTON of Texas. It is missing 300 pages.
  Mr. MARKEY of Massachusetts. It is not missing the 300 pages. They 
are all up there. Everything you are looking for is up there next to 
the Speaker, and it is available on the Rules Committee Web site for 
anyone and everyone to have access to. But it is sitting right up 
there. The 300 pages are right up there.
  Mr. BARTON of Texas. I am going to ask a unanimous consent request to 
give me a minute to go down and look at that and see if it is actually 
1,300 pages.
  Mr. MARKEY of Massachusetts. I would have to object at this time 
because the actual document is sitting there right now, and has been 
sitting there, as it has been on the Web site for the entirety of this 
debate.
  Mr. BARTON of Texas. So the gentleman does object?
  Mr. MARKEY of Massachusetts. I do object, yes.


                         Parliamentary Inquiry

  Mr. GOHMERT. Parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman from Texas will state his 
parliamentary inquiry.
  Mr. GOHMERT. My parliamentary inquiry, I was just at the dais and the 
clerks, as always, were immensely helpful. But apparently the official 
copy of the 1,090 pages are there, and then the additional 300 pages 
are sitting beside it, and the Clerk is having to go through and is in 
the process as we speak of going through and figuring out where the 
extra 300 pages that has been added goes in the official copy. So even 
as I speak, Madam Speaker, the official copy is not truly an official 
copy because it doesn't have all of the amendments in it.
  And since the rule says there is an official copy at the desk, my 
inquiry is whether it is truly an official copy if it, as yet, does not 
have all of the pages in the official copy.
  The SPEAKER pro tempore. The Clerk is currently executing the order 
of the House in House Resolution 587.
  Mr. GOHMERT. Right, to put the extra pages into the official copy. 
But is it required that it actually be a full official copy put 
together before you satisfy the requirement of having an official copy 
at the desk?
  The SPEAKER pro tempore. The two components of the official copy are 
there together, so it is, in effect, the official copy.
  Mr. GOHMERT. So the two together in two different piles that are 
being worked out together is the official copy. I appreciate the 
explanation.
  Mr. BARTON of Texas. I am parliamentary inquiried out, Madam Speaker, 
so I am going to yield 1 minute to the chairman of the Republican Study 
Committee, Mr. Price from Georgia.
  Mr. PRICE of Georgia. Madam Speaker, this would be humorous if it 
weren't so doggone sad.
  This national energy tax bill will impose a massive tax that even the 
President's own aides have admitted would cost $2 trillion to 
taxpayers.
  The President himself boasted about the enormous cost saying, ``under 
my plan of cap-and-trade system, electricity rates would necessarily 
skyrocket.''
  Indeed, this plan would increase taxes on American families by $3,100 
and raise their energy bill by $1,500 a year. This national energy tax 
will force many businesses to outsource jobs overseas or close their 
doors altogether, which will cost over a million jobs annually.
  Amazingly, it will have little or no impact on the environment. Many 
experts believe the environment will be adversely affected since many 
companies will be forced overseas where emission and environmental 
standards are minimal or nonexistent.
  Hundreds of groups such as the NFIB, the U.S. Chamber, and the 
National Association of Manufacturers oppose this legislation. Tax and 
government watchdog groups, including the National Taxpayer Union, 
Americans for Tax Reform, and Citizens Against Government Waste, oppose 
this legislation.
  This bill is bad for the environment and bad for the American people. 
Just vote ``no.''
  Mr. MARKEY of Massachusetts. I continue to reserve.
  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the gentleman 
from California (Mr. Bilbray).
  Mr. BILBRAY. Madam Speaker, as someone who has spent a decade 
regulating air pollution, I look at this bill, of what I can read of it 
that is presented, and come to the conclusion that the greatest threat 
to the environment seems to be all of the smoke coming out of the 
backroom deals that appear to have been made to put this package 
together.
  People may talk about the aspects of clean coal. Clean coal is as 
logical as safe cigarettes, and that is trying to be sold in this 
document.
  I have to say, in all fairness, what I see here is a huge tax scheme 
that doesn't fulfill the mandates that the U.N. Convention on Climate 
Change set as a minimum. In fact, it not only does not fulfill the need 
of the environment; it does it 5 years late and short. So it is late 
and short on this task.
  Madam Speaker, we have seen legislation come over this floor before. 
Twenty years ago this body approved a snake oil called ethanol and 
methanol and MTBE, and today, we still don't have the bravery to admit 
the mistake and correct it with this bill. We continue the past 
mistakes. The difference between the mistake we did with methanol and 
ethanol is the fact that it will take 150 years to correct the mistake 
that Congress is about ready to do if we pass this piece of 
legislation.
  I look forward to having to spend the next 100 years having to try to 
correct this mistake.
  Mr. MARKEY of Massachusetts. I continue to reserve.


                         Parliamentary Inquiry

  Mr. SHADEGG. Madam Speaker, parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman from Arizona will state his 
parliamentary inquiry.
  Mr. SHADEGG. I simply want to clarify the points that the gentleman 
from Texas (Mr. Gohmert) was making before and make sure I understand 
this.
  This is the printed version of the bill which apparently went to 
Rules last night. As I understand it, these are the 304 pages that make 
up the manager's amendment. And together, as I understand the Chair's 
ruling, this constitutes the official copy; is that correct?
  The SPEAKER pro tempore. The Clerk is currently integrating the pages 
of the amendments with the original copy of the bill. It is available 
for Members to see. It is right where it is meant to be, and yes, it is 
the official version.
  Mr. SHADEGG. Further parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman may state his parliamentary 
inquiry.
  Mr. SHADEGG. Each of these pages, as I understand it, could change a 
page in this matter, and so the Clerk is presently trying to meld these 
together. So you can't read this without also reading this, and this 
modifies any given page in this; is that correct?
  The SPEAKER pro tempore. The Clerk is executing the order of the 
House according to its terms.
  Mr. SHADEGG. I thank the Speaker.
  Mr. BARTON of Texas. Madam Speaker, I want to yield 1 minute to the 
gentleman from Missouri (Mr. Akin).
  Mr. AKIN. Madam Speaker, I am the ranking member of the Armed 
Services Subcommittee on Seapower. We have talked a lot about climate 
change and global things and taxes, but my concern is very specific 
with this bill.
  I have had a chance to tour the huge shipyards where the steel frames 
go up and the nuclear reactors go into the ships of our mighty Navy, 
and every single step of the way, there is energy involved in making 
the steel, in making the aluminum for the aircraft, heavy, heavy uses 
of energy in welding the steel together.
  If this bill passes, it is a major threat to heavy industry because 
it increases

[[Page 16701]]

the cost of energy. When we increase the cost of ships and planes, we 
are going to be able to buy less because we are not going to have 
enough money in the defense budget to be able to buy as many, and in 
that regard we become more vulnerable as a Nation.
  This bill, while it has not been talked about in this regard, is a 
serious threat to our industrial base and, therefore, a threat to the 
security of our Nation.
  Mr. MARKEY of Massachusetts. I continue to reserve.
  Mr. BARTON of Texas. Madam Speaker, I have been so confused by all of 
the parliamentary inquiries, I have lost track of time. How much time 
remains?
  The SPEAKER pro tempore. The gentleman from Texas has 13\1/2\ minutes 
remaining. The gentleman from California has 17\3/4\ remaining.
  Mr. BARTON of Texas. I yield 1 minute to the gentleman from Lubbock, 
Texas (Mr. Neugebauer).
  Mr. NEUGEBAUER. Madam Speaker, one of the sayings we have in Texas 
is, when someone is pretending to be a cowboy, we say that fella is all 
hat and no cattle.
  A lot of people have come down here today to try to represent that 
this is an energy bill. Well, let me tell you, it is not an energy 
bill; it is all tax and no energy.
  Some of the people were talking about the fact that we are going to 
make America more energy independent. We are not. This bill does not 
make America more energy independent.
  Every day we get up and write other countries a check for nearly a 
billion dollars, $900 million. Now, what we get to do with this new 
bill is we get to send $15 billion in 2012 to countries so they can 
plant trees and give us credits. Now doesn't that make a lot of sense?
  What this bill is, and I think the title is appropriate, cap-and-
trade. It is going to cap energy production in America and trade away 
American jobs. I think the American people are kind of concerned about 
jobs right now. We have families that are losing their jobs and we have 
families that are trying to pay their utility costs and trying to 
afford their gasoline, and yet we have got a bill down here that 
evidently is all talk and no bill. Don't vote for this bill.
  Mr. WAXMAN. Madam Speaker, I continue to reserve my time.
  Mr. BARTON of Texas. Madam Speaker, I'm going to reserve my time 
because they have got more time than we've got.
  Mr. WAXMAN. Madam Speaker, I'm pleased at this time to yield 1 minute 
to the gentlelady from Maryland (Ms. Edwards).
  Ms. EDWARDS of Maryland. Madam Speaker, I rise today in strong favor 
and support of the American Clean Energy and Security Act of 2009. I am 
going to tell you, I was a reluctant comer, but I really commend 
Chairman Markey and Chairman Waxman on their leadership and dedication 
to this bill. This is a big step toward ensuring that our children live 
in a cleaner and better environment and that we preserve and protect 
our planet for future generations.
  The Earth is warming and glaciers are melting, and some may question 
the science, but I am not one of them. By the time a child born today, 
in 2009, reaches first grade, we will reach peak carbon. And without a 
doubt, we must use every tool attainable to respond to this crisis. 
This bill is one of those tools, and perhaps our strongest yet. It is 
my hope as we continue forward we will increase our investment in 
renewables, that we will ensure that we preserve and protect our planet 
and reverse the warming of our Earth.
  I want to again thank the chairman. And despite my concerns, I 
support this bill strongly. I urge my colleagues to join me. And the 
statements made earlier today questioning global warming underscores 
the importance of this legislation today.
  Mr. TAYLOR. Madam Speaker, I ask unanimous consent to express my 
opposition to this bill and for permission to insert a statement in the 
Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Mississippi?
  There was no objection.
  Mr. TAYLOR. Madam Speaker, I rise in opposition to this bill.
  One of the provisions of this bill would create a cap and trade 
system throughout the United States in an effort to reduce the 
production of global warming gases. This system would limit the amount 
global warming gases emitted through regulation of ``allowances'' to 
each company. If a company released more gases than their 
``allowances'' permitted the company would be taxed by the federal 
government.
  The system also would establish an ``allowance'' market that would 
permit companies to buy and sell ``allowances.'' The same speculators 
who manipulated oil futures last year, pushing gasoline prices over $4 
per gallon will be trading in the cap and trade market, trying to 
figure out how to game the system at the expense of consumers and 
taxpayers.
  I do not believe a cap and trade system is the approach that is best 
to reduce global warming gases. As a matter of fact I think it is a 
simple ``Ponzi Scheme'' that will increase energy prices. According to 
the Congressional Budget Office it will create a complex financial 
system that allows risky investment in the energy market increasing the 
cost of living per household by $1600 per year. Additionally, I don't 
like the idea that a factory in one state is cleaner than it has to be 
so that another factory is dirtier than it should be. This could 
potentially leave Mississippi with the cancer causing agents and other 
states with the credit.
  Madam Speaker, I'll be brief.
  This is a bad deal for South Mississippi and my nation. I hope that 
we will defeat this bill.

                              {time}  1630

  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to another great 
Californian, Mr. Royce.
  Mr. ROYCE. Madam Speaker, I don't know where this ends. This cap-and-
trade bill would give Washington 17 percent control of the economy. 
Nationalizing health care, which is next on the majority agenda here, 
would give it another 16 percent. The Federal Government right now runs 
General Motors. The government has a huge equity stake in many of our 
financial institutions. This Congress is relentlessly politicizing our 
economy. It has got to stop.
  And this bill is an expensive job killer that won't achieve its 
objectives, and I will just give an example--and that's what's left out 
of the bill. The bill does nothing to encourage nuclear power plant 
construction, a sure job creator, a source of clean energy. The 
Department of Energy reports that the best way for utilities to reduce 
carbon emissions is nuclear energy, yet nothing here in this bill.
  This bill is a bureaucrat's dream, the scheme that we see before us. 
It gives the EPA, the DOE, the IRS, and many other bureaucracies levers 
over our energy markets. Some in Congress will have these bureaucrats 
in their cross-hairs aiming to game the system as this massively 
complex plan is implemented.
  I oppose this bill.
  Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from 
Kansas (Mr. Moore).
  Mr. MOORE of Kansas. Madam Speaker, I commend Chairmen Waxman and 
Markey for crafting this historic energy legislation that will help our 
country make the transition to a new clean-energy economy.
  I urge Members to vote in support of the underlying bill. Americans 
are demanding bold policies that will push our country in a new 
direction on energy and ensure a clean, secure energy future for 
America.
  This legislation is a positive step forward, but I urge Chairman 
Waxman's leadership to go even further to strengthen the renewable 
electricity standard during the conference committee.
  A strong standard would mean more jobs in the United States and a 
larger share of domestic and clean energy. Our children and 
grandchildren are watching. If we don't take this step for them today 
to leave them with a world that is healthy and more secure, when will 
we? As a proud grandfather of nine, I urge my colleagues to vote in 
favor of this legislation.
  Mr. BARTON of Texas. Madam Speaker, I reserve at this point.
  Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from the 
State of Oregon (Mr. Blumenauer).

[[Page 16702]]


  Mr. BLUMENAUER. Madam Speaker, Chairman Waxman, I appreciate your 
courtesy as I appreciate your leadership.
  It's strange that the debate boils down to our friends from the 
minority party being unable to access the Web site of the Rules 
Committee to print out the rule that has been available to any Member 
of the House. And I understand some of them were waving it earlier in 
the day talking about provisions that they didn't like. But I guess we 
shouldn't be surprised because this is the same leadership that 
continually misrepresents the MIT study, citing $3,000 of costs that 
has been refuted by the author of that report and asks the Republican 
leadership to stop misrepresenting his handiwork.
  The CBO and the EPA have given estimates that are pennies a day, not 
thousands of dollars a year. And we're not talking about the long-term 
benefits of transitioning to an economy of the future.
  I appreciate the leadership. On a recent trip to China with the 
Speaker, we saw the Chinese moving ahead. This legislation is an 
opportunity for us to keep pace and assume our rightful leadership 
within an economy for the future.
  Mr. WAXMAN. Madam Speaker, I reserve the balance of my time.
  The SPEAKER pro tempore. The gentleman from Texas has 10\1/4\ minutes 
remaining. The gentleman from California has 16 minutes remaining.
  Mr. BARTON of Texas. I yield 1 minute to Mr. Poe of Texas.
  Mr. POE of Texas. Madam Speaker, I appreciate the gentleman for 
yielding.
  I represent southeast Texas, the energy capital of the United States. 
Twenty percent of the refineries in this country that help all these 
folks all over the fruited plain with energy, I represent them.
  This week alone, we've had 86 people call and say, Vote for this 
bill. We've had 1,578 people in my district call and say vote ``no'' on 
this bill, almost 20 times the number of yes votes.
  I'm an advocate for those people in southeast Texas. They believe, as 
I believe, we're going to close up America's energy with this bill. The 
CBO and the EPA says there's not going to be much difference in the 
climate if we pass this deal. Bummer. It's not even going to work.
  And it's more important to realize this bill is about control, 
government control of our lives, our businesses, and everything we do. 
Washington, D.C. is going to dictate how we live and how we shall live 
and how our businesses will live. And it's all bad because D.C. is in 
control and not the people. This is a bad bill. Vote ``no.''
  And that's just the way it is.
  Mr. WAXMAN. Madam Speaker, I am pleased to yield at this time 1 
minute to the gentleman from Colorado (Mr. Perlmutter), who has made 
many important contributions to this effort.
  Mr. PERLMUTTER. Thank you, Chairman Waxman.
  I rise in support of the Clean Energy Act here. And I want to read 
the first sentence of a letter we received today from the National 
Association of Realtors. The National Association of Realtors supports 
H.R. 2998 (2454) the American Clean Energy and Security Act, which 
addresses a broad and global array of issues.
  In closing, the National Association of Realtors ask for the 
favorable passage of this, as do Duke Energy, American Electric Power, 
BP Amoco, GE, and the American Institute of Architects.
  This bill is designed to help us with national security, the climate, 
and jobs. My friend, Mr. Poe, from Texas says, Just vote no. Well, 
that's the party of the status quo. Just vote no, we like the status 
quo.
  It is time for a change, ladies and gentlemen. We can't afford the 
status quo, and this bill brings us in that change and a new direction.
  Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to Mr. Gohmert 
of Texas.
  Mr. GOHMERT. Madam Speaker, you know, I've been trying to get through 
what I could of this bill and then finding out, well, actually, it's 
another bill. And then you have to incorporate all these other pages 
into it because I'd like to know what we're doing to the American 
people.
  We've had people say we're playing politics on this side. If we 
wanted to play politics, because we know in our hearts this is bad for 
America, we would let you pass it and let you lose your jobs. But I've 
grown kind of fond of some of my friends on the other side; I'd like to 
keep you around.
  But let me tell you, those who say there won't be any job loss, we're 
going to create jobs, let me just read you some of the things that are 
in your bill. The climate change adjustment allowance: when you lose 
your job, for any week of unemployment you are going to get some 
unemployment assistance after that. That's in there. You've got some 
relocation allowance. But the coup de grace is that if you're an older 
American and you lose your job because of this, we fund a study in 
here.
  So I would encourage my colleagues, if you lose your job because of 
this bill, you probably are going to be able to get assistance because 
you lost your job because of this bill. Don't vote for it.
  Mr. WAXMAN. Madam Speaker, at this time, I want to yield to my good 
friend, a leader in environmental areas and many others as well, the 
gentleman from Texas, Mr. Doggett.
  Mr. DOGGETT. I thank the gentleman.
  Earlier today, I voiced my strong objections to this bill. I voted 
against the rule to permit this bill because of its rejection of some 
amendments that I thought were important to improve the legislation.
  For three reasons, I'm voting for final passage. First, I've been 
listening to the debate, not so much those who support the bill that 
I'm not all that enthusiastic about, but listening to the ``flat earth 
society,'' the climate denials, some of the most inane arguments that I 
have heard against refusing to act on this vital national security 
challenge.
  Second, I believe there is still some hope to make improvements to 
this bill once it gets out of the House. Better to have a seat at the 
table to try to influence the change that is needed in this 
legislation.
  And, third, I'm convinced that unless we act today, the Senate will 
not act. And unless we act in this Congress, we will not get the 
international agreements we need to address this serious challenge.
  I am voting ``yes'' in the hopes that we will have a better bill and 
we will have the international accord that we so desperately need to 
deal with this critical matter.
  Mr. WAXMAN. Madam Speaker, at this time, I have an additional 
colleague who wants to address this issue before we close. I am very 
pleased to recognize her for 1 minute because she is a good friend and 
a very important Member of the House of Representatives, a colleague 
from California, Barbara Lee.
  Ms. LEE of California. I want to thank the Chair for yielding and 
also for your leadership. You and Mr. Markey, everyone has done a 
phenomenal job on this bill.
  I rise today in support of H.R. 2454, which really does send a clear 
and unequivocal message that polluting our planet, our communities, and 
our livelihood no longer comes without a cost. This bill will create 
millions of high-paying, career-term green jobs that represent a much-
needed pathway out of poverty for millions of individuals across this 
country, and I am pleased to see the inclusion of much-needed funding 
for the Green Jobs Act.
  I must also be clear in saying that in America we should do more to 
address the climate crisis than provided for in this bill, but this is 
an unbelievable first start.
  I believe we can produce more renewable electricity and achieve more 
aggressive emission reductions over time. I also recognize that passing 
the American Clean Energy and Security Act is a major, major bold 
critical first step toward achieving our goal of realizing a greener 
future.
  As a person of faith, and as a long-time advocate for safeguarding 
our environment for future generations, Mr.

[[Page 16703]]

Chairman, Madam Speaker, I think it's our moral and our ethical 
imperative and our responsibility to support this bill.
  Mr. WAXMAN. Madam Speaker, we reserve the right to close on the 
debate, so I will now look to the other side to complete their 
statements.
  Mr. PRICE of Georgia. Madam Speaker, unanimous consent request.
  The SPEAKER pro tempore. The gentleman will state his request.
  Mr. PRICE of Georgia. Madam Speaker, it's been estimated, with great 
accuracy, that between 2.3 million and 2.7 million jobs will be lost 
each year with this bill. I would ask unanimous consent that the House 
rise for a moment of silence to recognize those who will lose their 
jobs because of this bill.
  Mr. WAXMAN. I reserve the right to object.
  The SPEAKER pro tempore. The gentleman from California reserves the 
right to object.
  Mr. WAXMAN. I object.
  The SPEAKER pro tempore. The gentleman has objected.
  Mr. PRICE of Georgia. I thank the Speaker.
  Mr. BARTON of Texas. I yield 3 minutes to the distinguished 
Republican Conference chairman, Mr. Pence of Indiana.
  Mr. PENCE. I thank the gentleman for yielding.
  It's hard to know where to start. I've got to think, Madam Speaker, a 
lot of people who are looking in on this debate and hearing about 
copies filed, esoteric process really don't care very much about all 
that because this economy is hurting. American families are struggling 
under the weight of the worst recession in a generation. Families in my 
district are losing their jobs, small businesses and family farms are 
struggling, and all they've seen out of Washington, D.C. so far is a 
gusher of runaway Federal spending, deficits, debt and bailouts. They 
didn't think it could get worse, but here we go.
  In the midst of the worst recession in a generation, this 
administration and this majority in Congress are prepared to pass a 
national energy tax that will raise the cost of energy on every 
American family. Now, my colleague sporting the green lapel button, who 
I greatly respect, said that there is a lot of dispute about how much 
the average American household will pay if this national energy tax 
becomes law, and that's true. There are estimates ranging from a few 
hundred dollars a year, to the Heritage Foundation's over $4,000 a 
year. The estimate I prefer was from candidate Barack Obama, who said 
in January 2008 to the San Francisco Chronicle, and I shall quote with 
the deepest respect: ``Under my plan of cap-and-trade system, 
electricity rates would necessarily skyrocket. That will cost money. 
They''--referring to the utility companies--``They will pass that money 
on to consumers.'' Now-President Barack Obama.
  Now, I know earlier this week the President of the United States said 
that polluters are going to pay the cost of this national energy tax. 
That's not what he said last year. Now, I don't know how you all define 
``skyrocket'' when the President said electricity rates would 
necessarily ``skyrocket under my cap-and-trade plan,'' but I would be 
prepared to defer to you.

                              {time}  1645

  I define ``skyrocket'' as a prescription for economic decline. There 
may be a dispute in the numbers about how much I'll be paying in my 
electrical bill or how much the costs of goods and services are going 
to go up. But there is no dispute that this cap-and-trade legislation 
will cost millions of American jobs. Raising the cost of energy is a 
bad idea in prosperous times. Raising a national energy tax in the 
worst recession in a generation is a profoundly bad idea.
  But for anyone looking in, Madam Speaker, let me say, we are in the 
minority, as we have been reminded with some firmness on this debate on 
occasion today. We don't have the votes to stop this bill. But you do.
  If you oppose the national energy tax, call your Congressman right 
now. If you think we can do better to serve the interests of the 
American people and achieve energy independence with an all-of-the-
above strategy, call your congressman right now.
  Alexander Hamilton said it best: ``Here, sir, the people govern.''
  We can stop this bill. We can do better. And so we must.


                         Parliamentary Inquiry

  Mr. BARTON of Texas. Madam Speaker, I have one more parliamentary 
inquiry.
  The SPEAKER pro tempore. The gentleman will state his parliamentary 
inquiry.
  Mr. BARTON of Texas. Under the rules that we operate on, the 
leadership on both sides, each is allowed 1 minute to speak at any 
time. Will that time come out of this debate, or does that time come 
out of the debate on the Forbes amendment?
  The SPEAKER pro tempore. It depends on what part of the debate they 
are yielded to.
  Mr. BARTON of Texas. I'm sorry?
  The SPEAKER pro tempore. It depends on what part of the debate they 
are yielded to.
  Mr. BARTON of Texas. Would Mr. Waxman yield for a question, then?
  I'm trying to figure out if I need to reserve 1 minute for Mr. 
Boehner to speak now or if the Speaker and the majority leader are 
going to speak later and not in this part of the debate.
  Mr. WAXMAN. Will the gentleman yield?
  Mr. BARTON of Texas. I would be happy to yield.
  Mr. WAXMAN. We're ready to conclude the general debate. We will then 
move on to the amendment, and in the course of the discussion of the 
amendment in the nature of a substitute, our leadership plans to speak, 
and they will close the debate for our side as we move to vote on that 
amendment and then passage on the bill.
  Mr. BARTON of Texas. Then I will yield myself the balance of my time, 
Madam Speaker.
  The SPEAKER pro tempore. The gentleman from Texas has 5\1/4\ minutes 
remaining.
  Mr. BARTON of Texas. Madam Speaker, before I begin I want to 
compliment you on your speakership of this debate. As always, you've 
been gracious and temperate and fair, and we wish you the very best in 
your new position at the Department of State.
  As the country western song goes, Madam Speaker, I've got a long way 
to go and a short time to get there. So I'm trying to get through in 
the next 5 minutes the major issues on the debate before us.
  I want to first start with the so-called compromise the chairman of 
the Agriculture Committee and the chairman of the Energy and Commerce 
Committee have worked out. As we have seen during the debate by the 
number of colloquies, the compromise is a work in process. I've seen it 
amended and referred and rebutted several times on the majority side.
  But if you will look to my far left on this chart, in the base text 
of the bill, there is a provision that gives the Administrator of the 
EPA the right at any time, at any time, to designate any man-made gas 
as a greenhouse gas subject to the regulations of this bill. As far as 
I can tell, that paragraph trumps everything that Chairman Peterson has 
attempted to negotiate with Chairman Waxman.
  The second thing that I want to point out is the basic math of their 
allowance system simply doesn't work. The transportation sector today 
is responsible for 35 percent of the greenhouse gas emissions in the 
United States, 35 percent. If you count the good work that Mr. Dingell 
did and the good work that Mr. Green did on the majority side in 
getting allowances for the transportation sector, they get a grand 
total of 4 percent, 4 percent. Well 4 from 35 is 31 percent. When you 
get down to 2050, you have to reduce CO2 emissions by 83 
percent, which only leaves 17 percent of total emissions from the 
baseline year. You've got to cut the transportation sector in half. And 
if you assume that we're not going to develop some sort of a giant 
rubberband for general aviation, you can't put an electric battery or a 
nuclear reactor in an airplane. General aviation is going to have to 
use fossil fuel. You

[[Page 16704]]

simply can't get to that 83 percent reduction from the 2005 baseline 
with the math in their bill. It is a physical impossibility.
  The third point: The science is not there to back it up. There is an 
EPA report that has been suppressed, that was never made a part of the 
record, that we are trying to get as we speak that raises grave doubts 
about the endangerment finding. Now, if you don't have an endangerment 
finding, you don't need this bill. We don't need this bill. And for 
some reason, the EPA saw fit not to include that in making the 
decision. We have e-mails that show that the director of the subcabinet 
agency within the EPA said the decision has been made the report is not 
helpful. It's not only not helpful; it's harmful. So the science isn't 
there.
  The next point: No matter how you cut it, costs are going up. Just 
basic math. Just basic math. In Iowa the CEO of the utility that 
provides most of the electricity for Iowa says in Iowa alone, costs are 
going to go up $110 a month per residential customer. That's $1,200 a 
year. Gasoline prices are going to go up somewhere between 40 to 70 
cents a gallon. If you take a midpoint of, say, 50 cents a gallon and 
assume that the husband and wife work outside the home and they each 
drive a thousand miles a month, you're going to have a gasoline price 
increase per family in America of about $800. That is $2,000 a year per 
family in 2012. It's not a postage stamp.
  Now, there are estimates as high as $6,000 a year, but as a baseline 
let's start with $2,000. That's in the first year and every year 
thereafter. If you look at this chart here on unemployment, if it goes 
below the bar, that's a negative: 2015, 2.3 million jobs; 2025, 2.7 
million. Go on down the road. It averages over 2 million jobs every 
year.
  Now, you talk about a green job revolution. In Spain they have been 
trying to do that, Madam Speaker. And in Spain for every green job 
they've created, they have lost two conventional jobs. And the green 
jobs they have created in Spain have cost about $1.2 million per job 
created in terms of government subsidies. That's not a revolution that 
I want to be part of, Madam Speaker.
  I simply cannot express enough to get to 83 percent baseline 
reduction in CO2 by the year 2050, which doesn't change in 
this bill, you have to reduce the emissions in the United States to the 
level that we had in 1910. And if you want to look at it on a per 
capita basis, assuming the population is going to average about 1 
percent growth a year, it takes us back to 1875.
  This is a bad bill. It deserves to be defeated. Please vote ``no.''
  This legislation threatens to lock the United States into an era of 
economic stagnation and global decline, thanks to a massive national 
energy tax that will kill American industry and send jobs overseas.
  We are here today voting on one of the most significant pieces of 
energy legislation ever, and we have only had the final text for a 
matter of hours. Surely, a majority of the Members have not read any of 
the bill, and I doubt that one in a hundred have read the 400 new pages 
that were turned in to the Rules Committee in the dark hours of this 
morning. This is not the way this Congress should do business. It is 
not the way the American people expect us to do business. What happened 
to the promises of the President and the Speaker of transparency?
  This bill will cause the average American's electricity bill to 
increase by 77 percent to 129 percent. Filling up the gas tank will 
cost anywhere from 60 percent to 144 percent more. That means, at 
today's prices, gasoline would be well over $4 per gallon. As we all 
vividly remember from last summer, $4 gas is painful and unsustainable.
  The negative economic effects of this bill will hit some parts of the 
country worse than others. The Democrats cite a recent CBO study, which 
is now based on outdated text, which says that the negative economic 
impact will only be $175 per household. I dispute this analysis because 
it ignores the full negative consequences of this legislation, in that 
the study completely ignored the economic damage from restricting 
energy use. Well, gross costs will be closer to $900 per household. And 
if average gross costs will be $900, then I can only imagine how bad it 
will be in the Midwest and Southeast who are going to be much harder 
hit.
  The cost of home heating oil and natural gas will nearly double. An 
independent analysis of the latest Waxman-Markey text explains that 
when all of the tax impacts have been added up, the lost GDP in 2035 
works out to $6,790 per family-of-four and that is before they pay 
their $4,600 share of the carbon taxes. That puts the costs per family 
for the whole energy tax aggregated from 2012 to 2035 to $114,915. Do 
you think the above estimate will help the American economy? Of course 
not.
  If Democrats manage to pass this fiasco, millions of lost American 
jobs will likely be sent overseas. Already the recession seems to 
deepen by the day. The national unemployment rate is 9.4 percent and 
President Obama has already declared that we are going to see it 
topping 10 percent. All this even though this House passed the 
President's Stimulus bill in January without even taking the time to 
read that bill either. Michigan has an unemployment rate of over 14 
percent. South Carolina has an unemployment rate of over 12 percent. 
North Carolina and California have over 11 percent unemployment. Ohio 
and Indiana have over 10 percent unemployment. Using the latest 
numbers, in May of 2009, 14 states have double-digit unemployment, with 
another 5 states between 9 and 10 percent. We should pass legislation 
that seeks to decrease unemployment--let's not add fuel to the fire.
  This bill would create a trillion dollar carbon derivatives market. 
We introduced an amendment to ban speculators from participating in the 
market during mark-up because we don't think that our economy can 
withstand another AIG Credit Default Swap Crisis. And we certainly 
cannot afford another multi-billion dollar bail-out.
  Because there is so little protection for industry jobs that rely 
heavily on affordable and dependable baseload power, I think we can 
expect to start buying more Mexican cement, Chinese fertilizer and 
Indian steel.
  How can we cap global greenhouse emissions without the participation 
of China and India? Not only does China reject any mandatory caps on 
its emissions, but they demanded that we subsidize them in their quest 
for better technology. Well, I have good news for China--this bill has 
plenty of handouts for foreign polluters at the expense of American 
industry. So, congratulations.
  This bill is reckless and does not have a safety valve or exit ramp, 
even though my colleagues and I introduced several safety valves during 
the mark-up. It seems to me that it would be a good idea to kill this 
bill if gas goes up to $5 or electricity bills double because of this 
legislation. But, obviously my colleagues on the other side of the 
aisle are willing to roll the dice with the American economy. We filed 
these amendments with the Rules Committee and were shut out completely. 
The Democrats are so unconfident in the costs and repercussions of 
their own bill that they cannot even risk an amendment that would 
sunset the policies when costs and unemployment resulting from this Act 
cripple the American economy.
  This bill grants near-dictatorial powers to the head of the 
Environmental Protection Agency to sacrifice the American economy in 
the cause of suppressing greenhouse gases. If you think suppression is 
the wrong word, I want you to know that it was just yesterday we 
learned that the EPA administrator and the Obama Administration 
suppressed an inconvenient dissent offered by a career EPA official.
  It seems clear that officials who already engage in political 
suppression of opposition opinion are hardly the people in whom we want 
to invest the future of the U.S. economy.
  Let's investigate that scandal, but in the meantime, let's turn back 
this power grab today and go to work on an all-of-the-above energy 
solution that includes nuclear and offshore drilling.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  The gentleman from California has 13 minutes remaining.
  Mr. WAXMAN. Madam Speaker, I yield myself the balance of my time. I 
won't take 13 minutes.
  My colleagues, we have a unique historical opportunity today to pass 
a bill that will lead us to greater independence as a Nation, 
controlling our own national security. We have an opportunity to 
transform our economy with new jobs. And we must do something about the 
carbon emissions that are causing such an enormous problem to our 
planet. We have this opportunity because President Obama has set this 
high on his agenda. We have it because of the commitment of Speaker 
Pelosi. We have it because the scientists are telling us there's an 
overwhelming consensus that, despite the comments that we have heard 
from the other side of the aisle, global warming is real, and

[[Page 16705]]

it's moving very rapidly, and we may get to a point that will be a 
tipping point. Our actions will make no difference after that.
  Let us not lose this historical opportunity for our national 
security, for jobs in this country, to protect our environment, to make 
us the leader once again in the international community, and to get 
them to join with us in doing what we must to avoid the disasters that 
many scientists have predicted. Vote for this legislation.
  Mr. POLIS. Madam Speaker I rise today in support of this legislation, 
and urge its passage.
  I also would like to thank Chairman Waxman for his hard work on this 
bill, it is of incredible importance and he has taken that 
responsibility to heart.
  I also thank the chairman for including two of my amendments within 
the manager's amendment, provisions that are important to ensure 
quality clean energy jobs training programs are accessible to all 
communities and that state SEED funds can go directly to renewable 
energy producers ensuring we get the most for our clean energy 
investment.
  Mr. Speaker, today we will be casting an historic vote, a vote of 
moral responsibility, a vote of economic prosperity, and a vote FOR our 
nation's future and our nation's leadership on the international stage.
  We've heard the arguments against acting, we've heard the nay sayers 
and those who would rather fear something they don't understand then 
roll up our sleeves and work to solve a monumental challenge.
  To my younger colleagues and the millions of young men and women in 
this country who are embarking on their adult lives, who are starting 
young families and are looking to a brighter future I say . . . This is 
our generation's space race, this is our generations cold war, this is 
our generation's greatest challenge and it is past time that we accept 
that challenge to do better rather than shy away in the face of the 
unknown.
  I'd just like to reiterate the scale of this issue, and say that I 
find it truly troubling that when we are faced with overwhelming 
credible and independent scientific evidence, and we can see the 
effects of a changing climate in our daily lives, the delusion it takes 
to drum up facts and figures paid for by oil companies and promote 
those as if they were science is truly reaching a new low.
  This bill is not a tax. This bill isn't even a preverbal tax, and to 
paint something as a tax simply because you don't understand it is 
irresponsible.
  We simply can't afford to do nothing.
  Opponents of action would continue the status quo of doing nothing, 
which has cost the average family a $1,000 increase in energy bills 
over the past eight years.
  America's energy costs will increase by $420 billion annually within 
the next 5 years if we do nothing to reduce our dependence on oil and 
fossil fuels. That amounts to $3,500 annually for every family in the 
nation.
  This bill has oversight after oversight, and ensures that consumers 
aren't hurt at all.
  This bill is good for our economy. Low income consumers are protected 
first, the CBO estimates that this bill will save low income consumers 
$40 by 2020. The energy efficiency provisions in this bill could save 
$750 per household by 2020 and $3,900 per household by 2030.
  My colleague on the other side of the aisle seems to be giving data 
compiled by the partisan Heritage foundation, espousing to know 
something about my district.
  But Coloradans already know that in our state we already have many of 
the provisions that this bill makes federal, like a Renewable Energy 
Portfolio Standard. These policies have made Colorado a clean energy 
leader and have brought our state high tech and high quality jobs.
  I encourage my colleagues and the American people to learn about this 
critical issue, learn about the science, learn about the market 
mechanisms that this bill creates . . . and DON'T BUY the falsities 
that big oil and big energy companies are spending millions to promote.
  We've had enough. We've had enough of old ideas, of fear, of just 
saying no to a better tomorrow and we've had enough of old technology 
running our country and economy into the ground.
  It's time we take a significant step forward, shaking the special 
interests and act boldly for the good of our country. You might be 
scared, but don't hurt our country because of that fear.
  This bill is our Apollo project, our Manhattan project but now we act 
for a nobler cause and we must act in bold and decisive terms.
  I urge passage of this legislation.
  Mr. HOLT. Madam Speaker, I rise today in support of H.R. 2454, the 
American Clean Energy and Security Act of 2009.
  For years, the consensus in the scientific community has been that 
the release of greenhouse gasses into the atmosphere is altering the 
Earth's climate in ways that are expensive and deadly. This is one of 
the principle subjects I have spoken about and worked on for decades--
before and since I first ran for office--and it is one of the reasons, 
I believe that my constituents sent me to Congress.
  Today the House of Representatives at last is taking sweeping action 
to cap greenhouse gas emissions, promote the production of renewable 
energy, and make our homes, cars, and businesses more energy efficient. 
This legislation would require that we reduce our carbon emissions by 
17 percent from 2005 levels by 2020 and 80 percent by 2050. It would 
implement a Renewable Electricity Standard that would require electric 
utilities to provide 20 percent of their electricity from renewable 
sources by 2020. It would make historic investments new clean energy 
technologies and energy efficiency, including energy efficiency and 
renewable energy, carbon capture and sequestration, electric and other 
advanced technology vehicles, and research and development. These 
provisions would help to slow the rate of global warming and preserve 
our environment for future generations. Further, a recent report from 
the Center for American Progress estimates that these provisions would 
help to create 1.7 million new, high skilled clean energy jobs over the 
next decade.
  Opponents of this bill have argued that it would cost American 
families over $500 a year in additional energy costs. While it is true 
that there would be increases in the cost of energy, this bill would 
return almost 50 percent of the proceeds from the cap-and-trade auction 
to consumers. In my home state of New Jersey, families who currently 
pay $100 on their monthly energy bill would see their bill increase by 
less than $3 a month. If you include the savings that would come 
through the energy efficiency provisions in this legislation American 
families could save $4,000 by 2030 on their energy bills.
  According to the Environmental Protection Agency, in New Jersey 
climate change has caused temperatures to be 4 degrees warmer than they 
were in 1970. Over the past century precipitation has increased by 5 
percent and severe weather incidents have increased by 12-20 percent, 
and sea level along our coast is increasing .14 inches a year. It is 
worth devoting some money and effort to slow the devastating climate 
change is having on our state.
  I am pleased that several provisions that I wrote were included in 
this bill. I worked with Rep. George Miller and Rep. Jerry McNerney 
authorize the WaterSense program that would help consumers identify 
water efficient products. Water efficiency saves energy by reducing the 
amount of energy used to heat, transport, and clean water. The savings 
are substantial and real. According to the Environmental Protection 
Agency, if only one out of every 100 American homes retrofitted their 
homes with water-efficient fixtures, we would save 100 GWh of 
electricity, enough energy to power more than 9,000 homes for an entire 
year, while reducing greenhouse gas emissions by 80,000 tons.
  Rep. Jared Polis and I wrote a provision that would require the 
Departments of Energy, Labor and Education to compile an online 
database for a renewable energy curriculum that would be easily 
accessible to community colleges, vocational schools and universities 
looking to create training programs but lacking local or technical 
expertise. The transformation to a clean energy future will require a 
trained workforce and our amendment would ensure that these 
communities, whether in rural Wyoming or urban Pittsburg, have easy 
access to green jobs training in new energy and new manufacturing 
sectors so they can prosper in a new energy economy.
  I worked with Rep. Rosa DeLauro, Rep. Tammy Baldwin, and Rep. Brian 
Baird to include a provision that would allow the Secretary of Energy 
to create a research program to study the role that human behavior will 
play in energy consumption and climate change. Changing consumer 
behavior offers a promising opportunity to promote energy independence 
and reduce greenhouse gas emissions, however there is still much to be 
learned about the forces that drive consumer actions.
  As a member of the Committee on Natural Resources, I worked to make 
sure that sufficient funding from the cap and trade auction would be 
used for domestic and international adaptation. Funding allocated under 
this provision would help to ensure the protection, restoration, and 
conservation of natural resources and enable them to become more 
resilient, adapt to and withstand the impacts of climate change and 
ocean acidification. It will require the study of how wildlife 
corridors will change

[[Page 16706]]

as climate change affects migration patterns and identify the steps to 
minimize the effects of climate change on migratory species. It would 
be used to protect the public health from the effects of climate 
change. Internationally, it would be used to prevent the tropical 
deforestation that is adding billions of tons of carbon to our 
atmosphere.
  I remain deeply concerned that this bill does not include the 
necessary research and development funding that is needed to reach the 
80 percent reduction target set in H.R. 2425. We will not be able to 
meet this goal with today's technologies, and as written, the bill does 
not provide the billions of dollars a year that will be needed to 
develop them. This is not a small or parochial concern. If Americans 
and others around the world are to embrace a transformation in the way 
we use and produce energy, they must know that our effort includes the 
engine to drive the innovation for that transformation. Without a very 
robust research effort--many billions of dollars--the vision of 
transformation will be a mirage and the public will know it. I have 
been assured by Chairman Waxman, Chairman Markey, Speaker Pelosi, 
members of the Administration and members of the Senate that they 
understand this shortcoming and that they will work with me to increase 
the research funding to drive the innovation we need to transform the 
way we produce and use energy.
  Ultimately, I support this bill because doing nothing is not an 
option. If we continue on the same path the U.S. Global Change Research 
Program estimates that average global temperatures will increase 11 
degrees Fahrenheit by the end of the century, causing among other 
effects a rise in sea level of 3 to 4 feet, completely flooding low 
lying areas like the Everglades and Cape Canaveral or Cape May. By 
passing this legislation we can slow the rate of climate change, we can 
create millions of new jobs, save consumers money through energy 
efficiency, and end our reliance on foreign fossil fuels. I urge my 
colleagues to support it.
  Mr. HIMES. Madam Speaker, I rise in support of the Manager's 
Amendment to H.R. 2454, the American Clean Energy and Security Act.
  According to the Department of Energy the building sector is 
responsible for 39 percent of total U.S. CO2 emissions. At 
long last, and due in part to the improvements contained in this 
amendment, Congress is acting to decrease the negative effect buildings 
have on our environment. Over the past year, members of the Financial 
Services Committee have met with a wide array of housing advocates, 
nonprofits and agency leaders to craft legislation that improves the 
energy efficiency of housing while creating sustainable and affordable 
communities for our citizens.
  The result of this painstaking work is a bill known as the Green 
Resources for Energy Efficient Neighborhoods, or GREEN, Act, led by my 
esteemed colleague from Colorado Mr. Perlmutter and currently contained 
within the Manager's Amendment to H.R. 2454. Through a broad array of 
public and private incentives, it seeks to encourage energy efficiency 
and develop renewable energy sources for housing and commercial 
buildings in order to achieve the changes in the housing sector that 
will help build America's clean energy economy for the next century.
  A provision I contributed to the GREEN Act provides incentives to 
lenders and financial institutions to help consumers who build, buy or 
remodel their homes and businesses to improve their energy efficiency--
lowering their energy bills, curbing waste and reducing carbon 
emissions all at once. I strongly encourage my colleagues to support 
these priorities by passage of the amendment and of the underlying 
legislation.
  While I support many of the changes in the Manager's Amendment, I do 
have concerns about provisions in the Amendment which address over-the-
counter derivatives, a matter which falls properly within the 
jurisdiction of the Financial Services Committee, and which I believe 
would best be addressed in that setting.
  These reservations notwithstanding, I strongly encourage the passage 
of the Manager's Amendment and of the American Clean Energy and 
Security Act, which marks a historic step toward innovation and energy 
independence for our Nation.
  Mr. MATHESON. Madam Speaker, the two great energy issues our 
generation faces right now are domestic energy security and climate 
change. These issues deserve our active attention, and they deserve 
action. Unfortunately, the bill we are considering today does not 
appropriately address these issues.
  Some continue to argue that climate change is not happening. In fact, 
scientific consensus has clearly been established that climate change 
is a very real, significant problem and we need to determine an 
effective way to reduce global greenhouse gas emissions. However, this 
legislation has problems.
  The early-year carbon reduction targets assume an aggressive pace of 
new technological development that may be unachievable. These targets 
received little attention in the debates that have taken place on this 
bill.
  I remain concerned that this energy bill will result in unfair 
regional wealth transfers. The one-size-fits all renewable electricity 
standard is not the right approach to address climate change. It is an 
add-on without a purpose. Data shows that the renewable targets in this 
bill are only slightly better than business-as-usual. So why are we 
bothering to dictate these standards when we should encourage the 15 
States that currently do not have renewable energy targets to find 
something workable for their communities?
  The bill's distribution of emission allowances also creates regional 
inequities. The ``50-50'' formula in the bill gives extra, unneeded 
allowances to utilities with lower fossil fuels resources, and less to 
utilities with greater reliance on fossil fuel resources. Those regions 
that receive excessive allowances would sell those allowances to other 
regions of the country that received less.
  With respect to carbon markets, this bill overreaches and will 
effectively destroy the derivatives market. Many people seem to confuse 
the different types of markets that exist. The futures market contains 
listed derivatives--these are standardized exchange-traded agreements. 
There is also a market for cleared derivatives, which are standard 
contracts that are privately negotiated but booked with a clearinghouse 
as a counterparty. And finally, you have the over-the-counter 
derivatives market where people negotiate deals to fit the needs of 
everyone ranging from utilities, to airlines, to banks, and finally, 
regular investors. This is a very complicated financial system and 
while it is clear that we are not appropriately regulating this market 
today, we should also avoid gutting the market altogether. I think 
there is a reasonable way to structure the new carbon market and to 
address deficiencies in the commodity markets. The provisions in the 
bill are not the right approach, and these provisions of the bill were 
never really debated in a House committee hearing.
  There are also some changes made to the offsets section which are 
troubling to me. I have been supportive of the effort to build a 
strong, accountable offsets program and I am sorry to see that this 
bill allows USDA to try to establish a much looser, less effective 
program. This is short-sighted because unless offsets signify real, 
verifiable carbon reductions, they will be worthless. This is 
problematic because buying and using offsets is much cheaper for 
businesses than it is to buy allowances.
  I have been advocating for the inclusion of transmission language in 
order to build much-needed infrastructure. However, this bill only 
addresses the Western Interconnection, not the whole country. That 
doesn't get at the underlying problem which is the lack of electricity 
transmission capacity across the Nation. I wish this bill had taken an 
approach similar to the one the Senate is considering.
  Finally, the issue of energy independence calls for additional items 
that are not included in today's bill. In the long run, technological 
advances will provide new options to help this country gain a more 
secure, stable energy profile. In the interim, we need policies that 
keep all options on the table for the development and use of 
conventional energy sources.
  As a result of all of these concerns, I will vote against this 
legislation. However, I will continue to work on the important issues 
of climate change and energy independence.
  Mr. KUCINICH. Madam Speaker, I rise in opposition to H.R. 2454, the 
American Clean Energy and Security Act of 2009. The reason is simple. 
It won't address the problem. In fact, it might make the problem worse.
  It sets targets that are too weak, especially in the short term, and 
sets about meeting those targets through Enron-style accounting 
methods. It gives new life to one of the primary sources of the problem 
that should be on its way out--coal--by giving it record subsidies. And 
it is rounded out with massive corporate giveaways at taxpayer expense. 
There is $60 billion for a single technology which may or may not work, 
but which enables coal power plants to keep warming the planet at least 
another 20 years.
  Worse, the bill locks us into a framework that will fail. Science 
tells us that immediately is not soon enough to begin repairing the 
planet. Waiting another decade or more will virtually guarantee 
catastrophic levels of warming. But the bill does not require any 
greenhouse gas reductions beyond current levels until 2030.

[[Page 16707]]

  Today's bill is a fragile compromise, which leads some to claim that 
we cannot do better. I respectfully submit that not only can we do 
better; we have no choice but to do better. Indeed, if we pass a bill 
that only creates the illusion of addressing the problem, we walk away 
with only an illusion. The price for that illusion is the opportunity 
to take substantive action.
  There are several aspects of the bill that are problematic:
  1. Overall targets are too weak. The bill is predicated on a target 
atmospheric concentration of 450 parts per million, a target that is 
arguably justified in the latest report from the Intergovernmental 
Panel on Climate Change, but which is already out of date. Recent 
science suggests 350 parts per million is necessary to help us avoid 
the worst effects of global warming.
  2. The offsets undercut the emission reductions. Offsets allow 
polluters to keep polluting; they are rife with fraudulent claims of 
emissions reduction; they create environmental, social, and economic 
unintended adverse consequences; and they codify and endorse the idea 
that polluters do not have to make sacrifices to solve the problem.
  3. It kicks the can down the road. By requiring the bulk of the 
emissions to be carried out in the long term and requiring few 
reductions in the short term, we are not only failing to take the 
action when it is needed to address rapid global warming, but we are 
assuming the long term targets will remain intact.
  4. EPA's authority to help reduce greenhouse gas emissions in the 
short- to medium-term is rescinded. It is our best defense against a 
new generation of coal power plants. There is no room for coal as a 
major energy source in a future with a stable climate.
  5. Nuclear power is given a lifeline instead of phasing it out. 
Nuclear power is far more expensive, has major safety issues including 
a near release in my own home state in 2002, and there is still no 
resolution to the waste problem. A recent study by Dr. Mark Cooper 
showed that it would cost $1.9 trillion to $4.1 trillion more over the 
life of 100 new nuclear reactors than to generate the same amount of 
electricity from energy efficiency and renewables.
  6. Dirty Coal is given a lifeline instead of phasing it out. Coal-
based energy destroys entire mountains, kills and injures workers at 
higher rates than most other occupations, decimates ecologically 
sensitive wetlands and streams, creates ponds of ash that are so toxic 
the Department of Homeland Security will not disclose their locations 
for fear of their potential to become a terrorist weapon, and fouls the 
air and water with sulfur oxides, nitrogen oxides, particulates, 
mercury, polycyclic aromatic hydrocarbons, and thousands of other toxic 
compounds that cause asthma, birth defects, learning disabilities, and 
pulmonary and cardiac problems for starters. In contrast, several times 
more jobs are yielded by renewable energy investments than comparable 
coal investments.
  7. The $60 billion allocated for Carbon Capture and Sequestration 
(CCS) is triple the amount of money for basic research and development 
in the bill. We should be pressuring China, India, and Russia, to slow 
and stop their power plants now instead of enabling their perpetuation. 
We cannot create that pressure while spending unprecedented amounts on 
a single technology that may or may not work. If it does not work on 
the necessary scale, we have then spent 10-20 years emitting more 
CO2, which we cannot afford to do. In addition, those who 
will profit from the technology will not be viable or able to stem any 
leaks from CCS facilities that may occur 50, 100, or 1000 years from 
now.
  8. Carbon markets can and will be manipulated using the same Wall 
Street sleights of hand that brought us the financial crisis.
  9. It is regressive. Free allocations doled out with the intent of 
blunting the effects on those of modest means will pale in comparison 
to the allocations that go to polluters and special interests. The 
financial benefits of offsets and unlimited banking also tend to accrue 
to large corporations. And of course, the trillion dollar carbon 
derivatives market will help Wall Street investors. Much of the 
benefits designed to assist consumers are passed through coal companies 
and other large corporations, on whom we will rely to pass on the 
savings.
  10. The Renewable Electricity Standard, RES, is not an improvement. 
The 15 percent RES standard would be achieved even if we failed to act.
  11 Dirty energy options qualify as ``renewable'': The bill allows 
polluting industries to qualify as ``renewable energy.'' Trash 
incinerators not only emit greenhouse gases, but also emit highly toxic 
substances. These plants disproportionately expose communities of color 
and low-income to the toxics. Biomass burners that allow the use of 
trees as a fuel source are also defined as ``renewable.'' Under the 
bill, neither source of greenhouse gas emissions is counted as 
contributing to global warming.
  12. It undermines our bargaining position in international 
negotiations in Copenhagen and beyond. As the biggest per capita 
polluter, we have a responsibility to take action that is 
disproportionately stronger than the actions of other countries. It is, 
in fact, the best way to preserve credibility in the international 
context.
  13. International assistance is much less than demanded by developing 
countries. Given the level of climate change that is already in the 
pipeline, we are going to need to devote major resources toward 
adaptation. Developing countries will need it the most, which is why 
they are calling for much more resources for adaptation and technology 
transfer than is allocated in this bill. This will also undercut our 
position in Copenhagen.
  I offered eight amendments and cosponsored two more that collectively 
would have turned the bill into an acceptable starting point. All 
amendments were not allowed to be offered to the full House. Three 
amendments endeavored to minimize the damage that will be done by 
offsets, a method of achieving greenhouse gas reductions that has 
already racked up a history of failure to reduce emissions--increasing 
emissions in some cases--while displacing people in developing 
countries who rely on the land for their well being.
  Three other amendments would have made the Federal Government a force 
for change by requiring all Federal energy to eventually come from 
renewable resources, by requiring the Federal Government to transition 
to electric and plug-in hybrid cars, and by requiring the installation 
of solar panels on government rooftops and parking lots. These 
provisions would accelerate the transition to a green economy.
  Another amendment would have moved up the year by which reductions of 
greenhouse gas emissions were required from 2030 to 2025. It would have 
encouraged the efficient use of allowances and would have reduced 
opportunities for speculation by reducing the emission value of an 
allowance by a third each year.
  The last amendment would have removed trash incineration from the 
definition of renewable energy. Trash incineration is one of the 
primary sources of environmental injustice in the country. It is a 
primary source of compounds in the air known to cause cancer, asthma, 
and other chronic diseases. These facilities are disproportionately 
sited in communities of color and communities of low income. 
Furthermore, incinerators emit more carbon dioxide per unit of 
electricity produced than coal-fired power plants.
  Passing a weak bill today gives us a weak bill tomorrow. Rejecting a 
weak bill today gives us another chance to pass something more in line 
with the science tomorrow.
  Mr. DICKS. Madam Speaker, as the chairman of the Interior 
Appropriations Subcommittee and someone who is very concerned about the 
need to safeguard wildlife and ecosystems from global warming, I wish 
to express my strong support for the ``American Clean Energy and 
Security Act of 2009.'' I believe that the policy provisions in this 
legislation, coupled with a new core funding stream for wildlife and 
natural resources derived from a portion of the Federal revenues from 
expected cap-and-trade legislation will provide the policy response 
necessary to tackle this significant challenge.
  I am very much aware of the need to take action to address global 
warming, and I have held hearings to examine the impact of climate 
change on many of the agencies and resources under my subcommittee's 
jurisdiction. I have consistently stated my belief that climate change 
may be the emerging issue of our time. Climate change will alter the 
face of our planet in ways we cannot yet fully comprehend, and I 
believe it is our responsibility not only to do as much as possible to 
halt or slow it, but also to do everything in our power to protect the 
earth's resources from its impacts so that future generations will be 
able to benefit from them as we and past generations have done.
  Our Nation's wildlife is one critically important resource that is 
particularly vulnerable to climate change and is also a resource that 
is a fundamental part of America's history and character. Conservation 
of wildlife and wildlife habitat is a core value shared by all 
Americans.
  America's wildlife is vital to our Nation for many reasons. Wildlife 
conservation provides economic, social, educational, recreational, 
emotional, and spiritual benefits. The economic value of the outdoor 
recreation industry--hunting, fishing, and wildlife viewing, hiking, 
paddling--alone is estimated to contribute $730 billion annually to the 
U.S. economy.

[[Page 16708]]

Wildlife habitat, including forests, grasslands, riparian lands, 
wetlands, rivers and other water bodies, is an essential component of 
the American landscape, and is protected and valued by Federal, State, 
and local governments, Tribes, private landowners, and conservation 
organizations.
  Unfortunately, it is becoming increasingly apparent that the effect 
of climate change on wildlife will be profound. The Intergovernmental 
Panel on Climate Change reports have made clear that global warming is 
occurring, that it is exacerbated by human activity, and that it will 
have devastating impacts on wildlife and wildlife habitat. In addition, 
a recent report, Global Climate Change in the United States, was 
released by the Administration and reflects the most current 
information from our Nation's leading scientists who agree that the 
impacts from climate change are already being felt and will continue to 
increase.
  Global warming is already impacting all of us: threatening the water 
we drink, the air we breathe, the medicines we use, the food we eat, 
the forests and fisheries we depend on, the special places we take our 
children. Wildlife is suffering from massive changes in habitat, 
particularly in the arctic, and shifts in ranges and timing of 
migration and breeding cycles. Continued global warming could lead to 
large-scale species extinctions. These impacts add to and compound the 
adverse effects wildlife and its habitat already suffer from land 
development, energy development, road construction, and other human 
activities, and from other threats such as invasive species and 
disease.
  According to the IPCC, global warming and associated sea level rise 
will continue for centuries due to the timescales associated with 
climate processes and feedbacks, even if greenhouse gas concentrations 
are stabilized now or in the very near future. I believe that, as a 
nation, we must craft responses and mechanisms now to help navigate the 
threats global warming poses to the natural resources that we all 
depend upon for survival.
  To conserve natural resources and wildlife in the face of the far-
reaching effects of global warming, there is a need for a coordinated, 
national strategy based on sound scientific information to ensure that 
impacts on wildlife that span government jurisdictions are effectively 
addressed and to ensure that Federal funds are prudently committed. 
Ensuring strategic and efficient allocation of funding is something of 
particular interest to me as an appropriator.
  To that end, I have acted within my capacity as a lead appropriator 
on this issue to advance steps necessary to combat the climate change 
impacts we have already set underway. I have worked to establish the 
Global Warming and Wildlife Science center at the U.S. Geological 
Survey, now receiving its second year of funding. Also in the recent 
FY09 omnibus appropriations bill and the FY2010 Interior Appropriations 
bill. I have provided direction to the Department of the Interior to 
develop a national strategy to address global warming's impacts on 
fish, wildlife, and natural resources.
  The American Clean Energy and Security Act will help ensure that the 
pressing needs that are faced by the agencies and programs under the 
Interior and Environment appropriations subcommittee to help wildlife 
and wildlife habitat are addressed strategically, based on a foundation 
of sound scientific information, and that funding is driven through 
proven programs at the Federal, State and tribal levels in the most 
efficient way possible. I have also included significant funding 
increases. But I can only do so much in the Interior Appropriations 
bill.
  I also have one additional but very significant point to make about 
funding to address impacts to natural resources and wildlife from 
global warming. It is essential that actions to safeguard wildlife and 
the natural resources will all depend upon receiving adequate funding. 
Addressing the greatest conservation challenge of our time will require 
long-term investments of the magnitude that only the revenue stream 
created by comprehensive climate and energy legislation can provide. 
While I support dedicating more of the allowances under this bill to 
natural resources adaptation, the 1 percent currently contained in the 
bill represents an important start of the problem. As I have indicated, 
the impacts are occurring today and the need is urgent. Paying for 
these investments through climate revenues takes the burden of 
protecting these resources off taxpaying citizens and onto the 
polluting entities responsible for causing global warming pollution.
  The Interior and Environment appropriations subcommittee allocation 
is woefully stressed just dealing with the current needs of the 
agencies and programs under its jurisdiction. Our Federal land 
management agencies have tremendous backlogs for operations and 
maintenance of our national wildlife refuges, parks, forests, and other 
public lands. This situation was greatly exacerbated under the Bush 
administration budgets and prior Congresses. Hundreds of important 
biologist positions have been cut, and the agencies' budgets are far 
below what they have needed just to keep up with inflation. These 
programs have been starved to the point where they are on life support. 
It became apparent in hearings the subcommittee has held on global 
warming that the land management agencies are already seeing the 
results of climate change on the ground, but that they have few, if 
any, resources to deal with these changes. With the effects of global 
warming only expected to increase in severity in the coming years, I 
believe it is crucial to infuse a new core funding stream into our 
efforts to address this crisis, and I am pleased that the American 
Clean Energy and Security Act provides an important new funding stream.
  This is a great Nation with a unique and irreplaceable natural 
heritage. We must take steps now to protect our wonderful wildlife from 
the ravages of climate change. With this in mind, I plan to vote for 
the American Clean Energy and Security Act of 2009.
  Mr. CONYERS. Madam Speaker, I rise in support of H.R. 2454, ``The 
American Clean Energy and Security Act of 2009,'' because, as a nation, 
we simply cannot afford to delay addressing the cataclysmic economic, 
national security, and environmental threats posed by global climate 
change any longer. Although imperfect, this piece of legislation is a 
necessary precondition for crafting a global solution to climate 
change. With this vote today, the United States reclaims the mantle of 
world leadership in addressing the single most important issue facing 
the planet.
  The opponents of this legislation will argue that we are taxing away 
our economic prosperity and our jobs. This could not be further from 
the truth. For 22- to 30-cents a day, less than the cost of a stamp, 
this bill will transform our economy by investing in new energy 
technologies that will create whole new industries and millions of 
jobs. All together, this legislation will create 1.7 million new jobs, 
53,816 of which will be located in my home State of Michigan. This bill 
isn't a job killer. In fact, it will unleash a flood of jobs created by 
a mean, lean, and innovative energy sector.
  This bill also furthers other important national priorities. If 
enacted, this bill would finally break the chokehold the OPEC cartel 
has over our energy security, provide a lifetime of clean air for our 
children and their children, and prevent the threats of environmental 
catastrophes like hurricanes, draughts, and famines.
  We must consider the costs of inaction. During the Bush-Cheney years, 
our dependence on foreign oil increased, average household energy costs 
went up $1,100, and job growth slowed to a crawl. Throughout this time, 
the threat of climate change multiplied as the administration ignored 
reality and the scientific community and turned a blind eye to the 
plight of future generations.
  Although this is not the bill I would have written, the costs of 
inaction are simply too great to ignore. A vote for this bill is a vote 
for jobs at home, energy independence, and a livable world for all.
  Mr. STUPAK. Madam Speaker, I rise to support and discuss regulations 
I included in the American Clean Energy and Security Act to prevent 
excessive energy speculation, which has played a role in the run away 
energy prices we saw last year, and are seeing in the first half of 
2009.
  In January, oil was trading at $35 per barrel. Today, it is trading 
near $70 per barrel. The price for oil has doubled in the midst of a 
global recession. Oil supplies are at a 20-year high, and demand is at 
a 10-year low, yet oil prices have skyrocketed since the beginning of 
the year. If this is based on supply and demand, what is happening to 
explain rising oil prices? If supply is up and demand is down during 
this global recession, why would oil continue to climb?
  The Federal Energy Regulatory Commission, the Senate, as well as a 
number of respected oil market traders and analysts, have pointed to 
excessive speculation in the energy markets as the primary reason we 
see price spikes and volatility in the marketplace. In May, I 
introduced the Prevent Unfair Manipulation of Prices Act, or the PUMP 
Act of 2009. I worked with Energy and Commerce Chairman Waxman and 
Subcommittee Chairman Markey to include the bulk of my bill into the 
American Clean Energy and Security Act, which is on the floor today.
  This legislation is not new; I have been introducing this bill in one 
form or another since April 2006. But new weaknesses in our regulatory 
structure, brought to light by the financial crisis and spikes in the 
price of oil last year, are addressed in the 2009 PUMP Act.

[[Page 16709]]

  The need for this legislation is two fold: 1. the dramatic rise in 
prices of oil and natural gas, and 2. the new carbon derivatives 
trading market created by the ACES bill. Some object to the inclusion 
of regulations on derivatives in this energy bill. I believe ACES 
proposed cap-and-trade program is fatally flawed without strong 
regulations to police this market from run-away price swings on carbon.
  Addressing excessive energy speculation should be a key part of any 
new energy policy pursued, because a dramatic spike in oil prices or 
carbon prices, would further devastate our already weakened economy. 
According to NYMEX officials, less than \1/10\ of one percent of 
futures trades in crude oil ever result in physical delivery. Most 
futures traders are not interested in delivery of a product, they are 
interested in profit. When speculators increase their investments, 
physical hedgers--businesses like airlines, trucking companies, and 
other industries that actually use the energy being traded--represent a 
smaller and smaller portion of the market. They are being squeezed out!
  As a growing majority of the market is controlled by speculators, 
crude oil is morphed from a commodity into a financial asset, traded 
for its financial value instead of its energy value! As a result, this 
excessive speculation by index speculators is a significant factor in 
the price Americans are paying for gasoline, diesel and home heating 
oil, and has similar affects on agricultural prices. For too long, 
through loopholes, exemptions, and poor enforcement by the Commodity 
Futures Trading Commission, energy speculators have been able to avoid 
position limits. As a result, excessive speculation has exploded.
  My legislation in the 2009 PUMP Act and in ACES is comprehensive, and 
changes the regulations for the energy markets in fundamental ways. It 
makes the Commodity Futures Trading Commission regulate all over-the-
counter trades that are currently not regulated; it regulates foreign 
boards of trades' energy transactions that trade for delivery in the 
United States or on a computer located in the United States. These 
boards are subject to the same regulations as current markets, 
including large trader reporting, recordkeeping, and prohibitions 
against fraud and market manipulation.
  My bill closes the swaps loophole; no longer allowing energy 
transactions to be excluded from the requirements of the Commodity 
Exchange Act. This would require the CFTC to provide greater oversight 
over these swap transactions. It bans naked credit default swaps. Naked 
credit default swaps, or one where the holder has no risk obligation on 
the swap, which creates a moral hazard by incentivizing economic loss. 
It sets aggregate position limits for energy speculators across all 
markets; it includes a CFTC Inspector General provision that makes that 
office independent and accountable. It also requires all trades be 
cleared through a designated clearing organization, eliminating the 
unregulated ``dark markets.''
  My bill allows the CFTC to collect fees and create an independent 
funding stream for oversight and enforcement of commodity markets. 
Finally, it includes carbon derivatives as a regulated energy 
commodities under the authority of the CFTC. This incorporates all 
greenhouse gas emissions, offsets, and financial products derived from 
carbon credits.
  As the House works on the ACES bill, it is important that carbon 
trading not lead to a speculative bubble like we saw in the 2008 oil 
markets. Congress needs to pass legislation to set strong position 
limits, and ensure that excessive speculation does not allow 
speculators to detach carbon or energy prices from supply and demand 
fundamentals.
  I am committed to continuing to work with my colleagues in passing 
legislation for the President to sign that sets strong position limits 
and improves CFTC enforcement to end this excessive speculation and 
provide relief to American consumers.
  Ms. WOOLSEY. Madam Speaker, as a mother and grandmother, the health 
of our earth is at the top of my list of concerns so that my kids and 
grandkids aren't left with the messes we've created. For too long, we 
have ignored the warning signs that human activity is having a negative 
impact on our environment. It's up to us to change our ways, use our 
brains, and stop our bad behavior.
  The facts are clear. The time for debate on whether or not global 
climate change exists is over. What we need to do now, is address the 
problem before it's too late. We need to listen to the world scientific 
community, and act immediately to curb our carbon emissions. That's why 
I support H.R. 2454, the American Clean Energy and Security Act.
  The single most important part of this bill is that it puts in place 
the federal structure to, for the first time, seriously regulate carbon 
emissions that are adversely affecting our climate. And with proper 
oversight and science--with the right people in charge--this bill will 
do what we need to do.
  Now, it's never easy to change the status quo. There's a lot of money 
out there for people who would continue the practices that we know are 
harmful to all of us. And we all know how that money can be used to 
muddy the issues and derail the will of the people.
  The plain fact of the matter is this: Without this bill, without a 
strict regime for controlling carbon emissions, Big Oil and Big Coal 
Win. And the environment, endangered species, our kids, our grandkids, 
you, and I will be the losers.
  Now, people point to China and India, and all the carbon they emit as 
a big problem too, and they're right. But the United States leads the 
world in carbon emissions and, as the world leader, it's our 
responsibility to lead the world in a new direction. The burden falls 
on America to set the tone. By instituting a cap and trade system, we 
are showing the rest of the world that we're serious about addressing 
the issue, and proving to them that it can be done.
  Madam Speaker, I'm not willing to risk our future by doing nothing. I 
urge my colleagues to support this bill, take a stand, and lead the 
world in addressing the issue of global climate change.
  Mr. KIND. Madam Speaker, I rise today to express my qualified support 
for the landmark bill before us, H.R. 2454, the American Clean Energy 
Security Act.
  Global climate change poses grave risks to our planet, our economy, 
and our way of life; it, therefore, cries out for bold action to 
reverse mankind's contribution to the problem. At the same time, taking 
such action offers us the tremendous opportunity to remake our energy 
infrastructure to become less dependent on foreign sources of energy, 
improve the health of our population and environment, and create high-
paying jobs here in America.
  The sponsors of H.R. 2454 and its many champions here in the House 
claim that it will do all of these things--that it will ignite 
America's leadership in reducing global greenhouse gas emissions to 
sustainable levels, shift our nation's energy paradigm away from 
polluting sources and into clean, renewable ones, and create millions 
of jobs for domestic workers. I also believe this is the case. However, 
I fear that under this bill, progress toward these goals will come at 
great cost to American families, particularly in the area of western 
Wisconsin I represent and others like it. I am disappointed we did not 
have more time to debate the cost of the legislation and address our 
concerns through additional consideration of the bill in the Ways and 
Means Committee.
  H.R. 2454 will require utilities and other greenhouse gas emitters to 
hold an allowance for each ton of these gases they emit. In the 
beginning of the program, the government will give a large number of 
these away to regulated utilities with the requirement that the value 
of these free allowances be used to mitigate the cost to consumers. 
While some people are very comfortable with this arrangement, I am not 
so confident that utilities will pass on the full value of these 
allowances to ratepayers. The initial years of the European Emissions 
Trading System demonstrated that giving valuable allowances to 
utilities for free encourages them to pocket the value rather than 
reducing electricity rates. Whether the bill's additional layers of 
administration, oversight, and bureaucracy will be effective at 
preventing this from happening here is an experiment I would rather not 
impose on my constituents in western Wisconsin.
  I am also concerned that the ACES bill is skewed against regions like 
mine that are rural and heavily dependent on coal for energy. The 
formula it establishes for doling out the free allowances to utilities 
provides more to those areas that need them the least--those that have 
a lot of zero-emission hydro or nuclear power--rather than those areas 
like Wisconsin that need the allowances because of their higher 
emissions. The federal government helped subsidize the hydro and 
nuclear plants in other parts of the country; ratepayers in my district 
should not have to send more money their way while we seek to realize 
the same low-carbon generation.
  Finally, the bill allocates funds derived from consumers and spends 
it on such things as international deforestation, investments in 
technology, and wildlife adaptation. While these are worthwhile goals 
that will need to be addressed in the context of combating climate 
change, I do not think we should do so by putting an additional 
financial burden on those who can least afford it.
  That is why I introduced H.R. 2757, the Consumer Assistance Rebate 
for Energy, or CARE, Act. This bill would have ensured that any money 
raised by the government as a result of climate change legislation 
would be

[[Page 16710]]

given back to consumers directly to help them cope with any price 
increases for energy and consumer goods. The EPA stated in its analysis 
of the ACES bill that this type of approach is the least burdensome on 
low-income consumers, and that it achieves greenhouse gas reductions at 
a lower overall cost than the ACES system of free allowances to 
businesses and utilities.
  While I wish my concerns about consumer protection had been addressed 
more fully in the bill before us, the legislation has changed for the 
better since being reported out of the Energy and Commerce Committee, 
and there is enough in the bill to recommend it that I am willing to 
support its passage today so that it will move to the Senate where it 
can be improved further.
  The American Clean Energy Security Act will live up to its name in 
many ways. It will transition our energy systems away from 
unsustainable, polluting fossil fuels and toward clean, renewable 
resources such as wind, solar, biomass, and hydrogen. It will provide 
an unprecedented investment in the technologies and industries of 
tomorrow, creating more than 4,000 jobs in my Congressional District 
alone, and millions nationwide.
  America is the nation that invented solar cell technology decades 
ago, and the investments we make in the coming years will allow us to 
regain our leadership in the world and be the center of innovation and 
industry that will drive the clean energy revolution.
  The bill also includes funding to help our natural resources, and 
fish and wildlife in particular, adapt to the changes in their habitat 
that have already begun.
  Finally, the bill includes opportunities for farmers, ranchers, and 
foresters to be a part of the climate solution, which is critical for 
my district, where agriculture remains the largest industry. The USDA, 
in consultation with EPA, will establish a program where businesses and 
utilities can meet their greenhouse gas obligations by paying farmers 
who help sequester carbon. This new revenue stream will be very 
important in helping the agriculture sector cope with higher costs for 
energy, fuel, and fertilizer.
  Again, I wish we had had more time to deliberate on this extremely 
large and complex piece of legislation. I wish the bill contained more 
direct, more transparent ways of compensating consumers. I wish the 
bill treated regions equitably. But I support strong action on climate 
change and the creation of millions of new jobs, and I will vote to 
move this bill forward in the hope that the Senate will pass a bill 
that works better for more Americans.
  Mr. COSTELLO. Madam Speaker, I rise today in opposition to H.R. 2454, 
the American Clean Energy and Security Act of 2009.
  I believe that climate change is occurring, and that increased 
greenhouse gas emissions have profoundly impacted our climate and our 
resources. To combat these changes, we need to develop a sustainable 
energy policy that will meet our energy needs today without 
compromising the ability of our children and grandchildren to meet 
their energy needs tomorrow.
  For these reasons, I support a balanced energy plan that will 
increase our energy independence by promoting the development and 
deployment of 1) renewable domestic sources of energy, such as ethanol 
and biodiesel, and 2) technology that will use traditional fuels in a 
cleaner way, such as clean coal carbon capture and storage. These 
energy sources eventually may satisfy the needs of the entire country, 
but they are still being developed and expanded. We must ensure that 
Americans maintain access to affordable and reliable energy until these 
sources are broadly available.
  I oppose H.R. 2454 because it does not provide a bridge for coal and 
other fossil fuels to develop and demonstrate new technologies to 
provide reliable energy and meet the necessary reductions in greenhouse 
gas emissions. The timelines contained in this legislation do not 
provide sufficient time to put these technologies in place. 
Manufacturers and utility companies will be forced to stop using the 
affordable, abundant fuels they use today and transition to far more 
expensive energy sources. As a result, this bill will force our most 
affordable domestic energy source, coal, into extinction. Energy costs 
will skyrocket and workers will face layoffs and plant closures. 
American families cannot face these additional burdens during these 
difficult economic times.
  In addition, we cannot ignore the fact that climate change is a 
global problem and requires a global solution. We must consider the 
consequences of enacting this legislation when other countries, like 
China and India, have not taken steps to reduce their own carbon 
emissions. Without some measure of equity on this issue, our emissions 
may appear to decrease, but they will simply shift overseas, taking 
jobs and industries with them.
  Madam Speaker, I oppose H.R. 2454 because it does not do enough to 
bridge the transition to clean energy sources, to prevent spikes in 
electricity costs, to protect workers from new layoffs, or to provide a 
global solution to climate change. Quite simply, it is the wrong bill 
at the wrong time. I ask my colleagues to join me in opposing this 
measure.
  Mr. YOUNG of Florida. Madam Speaker, I rise in opposition to H.R. 
2454, the so-called American Clean Energy and Security Act. Throughout 
my time in Congress I have supported protecting America's environment 
and climate as well as incentives for clean alternative energy, 
including solar, wind, and biofuels. It is in our county's best 
interest environmentally, economically, and for our national security 
to transition away from imported oil to domestically available, 
renewable, and clean sources of alternative energy.
  For instance, I have supported efforts by the City of St. Petersburg 
to power 40 of the city's parks entirely using a sustainable solar 
energy network which will allow these parks to be removed from the 
city's power grid.
  In the 110th Congress I was a cosponsor of the Clean Energy Tax 
Stimulus Act of 2008. This measure would have provided for the 
continuation of eight clean energy production and efficiency tax 
benefits in order to incentivize important alternative energy 
investment and production.
  I am also supportive of initiatives to require auto manufacturers to 
increase the fuel efficiency of the cars sold in America. In fact, in 
March I signed a letter to President Obama to urge him to take the 
strongest stand possible to increase the Corporate Average Fuel Economy 
(CAFE) standards. Last Congress I was a cosponsor of the Fuel Economy 
Reform Act which would have raised CAFE standards to 35 miles per 
gallon over the next decade.
  And I have long been supportive of protecting Florida's environment 
and our military's training needs by opposing offshore drilling in the 
Eastern Gulf of Mexico.
  I also believe in creating and supporting new green jobs. At the same 
time that we encourage conservation and the production of renewable 
resources, we must also help prepare Americans to work in these new 
green jobs. That is why I voted in favor of the Green Energy Education 
Act. This legislation would authorize funds to be made available to 
support advanced energy and green building training and graduate 
programs throughout the country.
  Despite my support for clean energy and a clean environment, I must 
oppose this cap and trade legislation which will impose increased costs 
on American citizens who have done nothing wrong. At a time when the 
people of Pinellas County and our nation are hurting, it is 
incomprehensible that the House will knowingly approve legislation that 
will impose a new energy tax on American citizens, will put American 
companies at a competitive disadvantage, and will endanger the jobs of 
American workers.
  Supporters of this legislation have tried to claim that the cap and 
trade scheme will only cost some negligible amount, a postage stamp per 
day or $15 per month. They claim that a report by the Congressional 
Budget Office backs up this statement. However, if you actually take 
the time to read the CBO's report, you will understand that this is 
simply not true. The analysis only includes one limited portion of the 
1,201 page bill. The analysis does not include the effects from the 
lower incomes and lost jobs that the CBO predicts will occur. The 
analysis does not include the effects from the decreased retirement 
accounts that will be realized as the value of stocks decline, as the 
CBO predicts. The analysis does not include the increased costs of 
producing goods in the United States, as the CBO predicts. In short, to 
say that this legislation will not hurt American families is simply 
misleading.
  If this legislation is signed into law, energy costs are going to 
rise. Even the President acknowledges that electricity rates are going 
to ``necessarily skyrocket.'' Britain's Taxpayer Alliance estimates 
that families there are paying $1,300 more in taxes after the 
implementation of a similar program only a few short years ago. In 
drafting this legislation, proposals were offered to suspend the cap 
and trade program if gas prices rose above $5 per gallon, if 
electricity prices rose by 10 percent, or if the unemployment rate hits 
an unthinkable 15 percent. All three of these sensible ideas were voted 
down by supporters of this bill. All Americans will be impacted by 
these higher energy prices, but the hardest hit will be the low income 
and the many of my constituents are seniors who live on fixed incomes.
  I do not think that I need to remind any of my colleagues of the 
energy crisis of last summer. I remember all to well the stories from 
my constituents of the difficulty they had in dealing with $4 per 
gallon gasoline. However, a study conducted by the American Petroleum

[[Page 16711]]

Institute has found that the impact from this legislation will add an 
additional 77 cents to the price of a gallon of gasoline, and even 
higher costs for critical diesel fuel. In the last two years alone more 
than 5,000 trucking companies with at least five trucks went out of 
business, costing a countless number of jobs. Is this really the type 
of result we want?
  Inexplicably, this legislation would spend seven percent of the cap 
and trade allowances--paid for by American consumers--in foreign 
countries. Let me repeat that: this bill will send $302 billion U.S. 
tax dollars under cap and trade to foreign countries. Most of this 
money is set aside to plant trees. The Congressional Budget Office has 
said that ``the allowances spent overseas would impose a net cost on 
U.S. households: They would bear the cost of the allowances but would 
not receive the value.''
  The cap and trade scheme also creates a new tradable commodity that 
Wall Street investors will be able to buy and manipulate. The pollution 
allowances will be traded and sold on the open market to the highest 
bidder. Companies who will be forced to buy these to provide necessary 
energy and products will pass on these costs to consumers. Even worse, 
this bill sets a minimum price for which the allowances can be sold 
for, not a maximum price to prevent the fleecing of American consumers. 
After the financial collapse of last year, we should not allow Wall 
Street speculators and commodity traders to hold the American people 
hostage in this way. I thought the purpose of this legislation was to 
protect the environment, not to help Wall Street get richer.
  Also included in this bill is a one-size-fits-all nationwide 
renewable energy standard that favors certain regions of the country at 
the expense of others. It is estimated that residents in Florida will 
be forced to pay an additional $339 million in their energy bills 
within only a few years, while the residents of some states in the 
northeast and the west coast will be heavily subsidized. Fundamentally, 
I believe that the federal government must get out of the business of 
picking winners and losers.
  These are just some of the things that we actually know are in the 
bill. But there is no way for Members to understand everything that is 
included. The bill itself is 1,201 pages that few, if any of us have 
read. Then only this morning, the Democrat leadership unveiled and 
added on a 309 page manager's amendment. The Washington Post says that 
this is a ``1,201 page measure filled with political compromises, 
directives, subsidies and selections of winners and losers that members 
won't be able to analyze before the vote and that leaves us wondering 
how effective it will be.'' The St. Petersburg Times, which supports 
the legislation, admits that the bill is ``imperfect'', ``not ideal,'' 
and that it includes ``weasel language.'' Even the Chairman of the 
Agriculture Committee Colin Peterson, who was one of the principal 
negotiators of the final bill that we are discussing today, said, ``The 
truth is, nobody knows for sure how this is going to work.'' Despite 
the importance of this issue, only one amendment has been allowed to 
even be considered by the House. The fact of the matter is, this 
legislation sets emission standards from now until 2050, and will 
affect our American way of life even further out from there. The 
initial reaction from my constituents in Pinellas County is that there 
is no need to rush through this process without understanding the 
effect on our nation the over the next 40 years. About 80 percent of 
the calls and e-mails that I have received have opposed this cap and 
trade bill.
  We all agree that the United States must begin the transition to 
domestically available, renewable, and clean sources of energy. We 
should work to make it easier for this change to happen, and it is 
appropriate for the government to provide incentives, not penalties, on 
those who do the right thing by investing in new sources of energy. We 
can do this by following in the tradition of the Manhattan Project, 
where the United States government brought our best and brightest minds 
together to create the atomic bomb to win World War II. The New 
Manhattan Project for Energy Independence, which my colleagues and I 
will have an opportunity to support, will provide funding for American 
universities, scientists, and inventors to come together and create 
more energy efficient and affordable cars, buildings, advanced power 
plants, advanced biofuels, and carbon capturing technology to help 
clean our air. This can be accomplished without imposing new tax 
increases on the American people while taking the steps necessary to 
secure a clean and secure future. We can take this important step by 
including Democrats and Republicans working together, rather than 
refusing to even consider suggestions from Republican members or even 
letting us know of details of this cap and trade bill as it was being 
written.
  This is the right way to approach our future energy and environmental 
needs. The wrong way is to punish average American citizens simply for 
going about their everyday lives--picking their children up from 
school, starting a small business, keeping their family cool in the 
summer and warm in the winter, or trying to make ends meet. And that's 
who this bill taxes and punishes.
  Madam Speaker, if this was truly an energy bill, there is little 
doubt in my mind that both sides could come together, as we have done 
so many times in the past, to find a bipartisan solution that will help 
this country move in the right direction and reduce our dependence on 
imported oil, lower our energy costs, and reduce carbon emissions 
without punishing American families. Unfortunately, this legislation 
only amounts to imposing a new burden on the American people at a time 
when they are already overburdened and I cannot support what the Wall 
Street Journal has called ``the biggest tax in American history.'' 
Let's vote this down so we can go back and work together and do what's 
right for America.
  Mr. MEEK of Florida. Madam Speaker, I stand for the creation of new 
American jobs, for less dependence on foreign energy, and for a 
reduction in the carbon pollution that causes global warming.
  This bill is about national security, creating jobs in a new energy 
economy, and defending consumers through a fiscally responsible bill 
with consumer protections.
  These investments will also spur new jobs. The Political Economy 
Research Institute estimates that 3.5 jobs will be created in the new 
green job sector for every 1 job that is fossil fuel source based in 
Florida. This could mean over 94,000 jobs in Florida alone.
  Too often our foreign policy decisions are affected by the regional 
stability of oil producing countries. In Iraq we are paying for our 
oil-centric obsession and Floridians have paid over $37 billion for the 
war there. This legislation offers incentives that promote energy 
efficiency and that will break our addiction to foreign oil. We must be 
focused on research and development for green technologies and end the 
obsession with crude oil that is fueling too much of our economy.
  The bill is not perfect--few landmark bills are. Once the Senate 
takes up the bill later this year, this bill will be further improved 
and will address the shortcomings that exist in this version. My 
mission will be to ensure that the final legislation that is passed 
will include the necessary consumer protections to minimize price 
increases.
  We cannot wait to act on climate change legislation. Florida is 
already experiencing eroding shorelines, flooding and dying coral 
reefs. In particular, the Everglades face severely altered water flows 
and harmful invasive species. This will also have a devastating impact 
on Florida's economy. In 2007, tourists flocking to Florida's beaches 
and other priceless environmental areas spent over $65 billion in 
Florida.
  Without aggressively capping carbon emissions, the earth's 
temperature will continue to rise, causing more extreme storms and 
altered ocean conditions which will have a devastating effect on 
Florida's ecosystem.
  The American Clean Energy and Security Act (ACES) works to minimize 
price increases for consumers. On average the EPA estimates that this 
bill will cost an average household $98 to $140 per year in price 
increases, while holding those in the lowest income quintile harmless.
  Without carbon emissions caps, we have seen energy prices fluctuate 
drastically. By regulating carbon intensive goods and creating a 
transparent market this bill will help to stabilize those prices and 
help protect consumers.
  By investing in conservation, efficiency and renewables, Florida 
residents will see lower costs in energy though building weatherization 
improvement benefits, and energy efficiency savings.
  Mr. TEAGUE. Madam Speaker, as most of my colleague know by this 
point, I'm an oil man.
  Always have been.
  Always will be.
  When I was 17 years old, my father became sick, so I went to work in 
the oil fields, making $1.50 an hour on a pulling unit, to help support 
the family.
  I kept at it until I had my own company, employing and providing 
quality health care for 250 people.
  Over the years, I've done just about everything there is to do in oil 
and gas around New Mexico. People know that Harry Teague is an oil man, 
and I am proud of that.
  In 2007, when I announced that I would be running for Congress, 
people were surprised to find an oil man like myself campaigning on a 
platform that emphasized energy independence through a focus on the 
development of

[[Page 16712]]

full and diverse slate of energy sources. Not only was I advocating 
increased production of our valuable petroleum resources. I told people 
in Hobbs, Roswell, Carlsbad and across Southern New Mexico that 
technologies like wind, solar, and biofuels were not only good for the 
environment, but would also create jobs in our communities and bolster 
our national security.
  I did not wait long after being sworn in as a Member of the 111th 
Congress to turn my campaign platform into a legislative record. The 
very first bill I introduced, H.R. 451, provides a multiyear extension 
of the Renewable Energy Tax Credit. I worked hard to have that 
legislation included in the House version stimulus package, and when 
you signed the American Recovery and Reinvestment Act into law on 
February 17, 2009, the production credit was included.
  I am proud to say that H.R. 451 not only gave one of the largest 
boosts we have ever given to renewable energy production in this 
country, but it also saved the oil and gas industry $13.1 billion 
dollars in prospective tax increases.
  As the 111th Congress continued, I likewise continued my work 
promoting energy production in America. I passed several amendments to 
various legislation promoting renewable energy, and I worked tirelessly 
to ensure the Budget Resolution passed by Congress did not include tax 
hikes on oil and natural gas.
  Then came the American Clean Energy and Security Act, which is the 
bill we're here debating today.
  When the legislation was introduced and then reported out of 
committee, I must say, I was deeply skeptical. I had one central 
concern:
  I worried that this bill would hurt the rural communities and small 
towns and cities that I represent in Congress.
  So, I had a choice. I could stand by and issue my reservations and my 
opposition from the sidelines. Or I could get involved, and stand up 
for the good people in New Mexico I represent, and advocate for changes 
that would help people and businesses in my district.
  Madam Speaker, anyone who knows me from the oil fields of Hobbs, New 
Mexico knows one thing: If there's one thing I know, it's hard work. 
And if there's a job to be done, I'm going to get it done.
  The very first thing I saw to in the bill is that there would be no 
taxes, no additional costs, and no added red tape at the wellhead. I 
knew we needed to keep this bill away from production because we need 
more energy in this country, and putting taxes on the folks who produce 
it makes then produce less energy, not more.
  Once I saw that oil and gas producers would not be covered by the 
legislation, I noted other improvements that had to be made.
  The first thing was that portions of the bill threaten to put small 
refiners out of business. Smaller refiners process below about 200,000 
barrels a day, while larger refiners typically process closer to 1.5 
million barrels. The difference is drastic. Despite their small size, 
small refiners still supply about 11 percent of the United States 
market, serving mainly rural areas and military installations.
  The legislation as reported from committee contained only two percent 
of available allocations for the entire refining sectors stationary 
emissions, even though refiners emit 3.8 percent of carbon across our 
economy. Small refiners operate at extraordinarily thin margins and 
would be fighting for that limited allocation with super-majors like 
ExxonPhillips, Chevron, and ConocoPhillips. Smaller companies would 
likely not survive.
  If refiners close in rural areas, gas prices there would have to 
skyrocket in order to attract supplies from the coasts and other 
refining centers. Thousands of job losses from refinery closings would 
also result.
  To prevent this terrible situation from coming to pass in rural 
America, I proposed that small refiners receive an allocation for all 
of their stationary source emissions and further mechanisms that would 
limit their exposure to the volatility that may exist in the market for 
allowances for fuels.
  I am very pleased that this provision has been included in the bill.
  Additionally, I was deeply concerned with the economic livelihood of 
180,000 Southern New Mexicans in my Congressional district who get 
their power from rural electric coops. While the bill's sponsors claim 
that electric utilities were ``held whole'' with allowance allocations 
when the bill was reported out of committee, in reality there were 
regional disparities that unfairly punished rural electric coops. For 
example, in regions that possess abundant sources of carbon-neutral 
electricity like hydro and nuclear, consumers would receive far above 
their needed allocations. But in New Mexico and other states that rely 
in large part on coal and other carbon sources for electricity, 
consumers would only receive a portion of the allowances they need to 
cover their carbon emissions.
  To remedy this problem, I proposed that emission allocations be 
distributed on the basis of carbon intensity rather than the number of 
people who receive the electricity and that no utilities should receive 
more than 100 percent of allocations. Allocations over 100 percent 
would then be redistributed to consumers in places like New Mexico.
  I also proposed the same carbon molecule shouldn't be given 
allowances twice in its life cycle in one part of the country, while a 
carbon molecule being used in New Mexico receives zero allocations.
  Now, we didn't get everything we asked for. But working with Chairman 
Collin Peterson of the Agriculture Committee and the National Rural 
Electric Cooperatives Association, we were able to get language in the 
bill that will protect rural electric coops from costly rate hikes.
  Madam Speaker, this bill is not perfect. In fact, it is far from 
perfect.
  We need to do more for rural coops. We need to improve this bill so 
that it promotes the use of clean burning natural gas.
  I do thank my friends on the Energy and Commerce Committee for 
working with me to address my concerns regarding small business 
refiners and rural electric coops.
  Mr. JORDAN of Ohio. Madam Speaker, I rise today in opposition to this 
bill. Simply put, this is bad policy for America, particularly the 
Midwest. In an independent study, my district is the fourth-most 
impacted district in the nation by this disastrous legislation. The 
parts of our nation that are powered by coal-burning plants and are 
heavy in manufacturing and agriculture--like the part of Ohio I get to 
represent--will be devastated.
  Make no mistake, we are about to vote on the largest tax increase and 
transfer of wealth in American history. In a misguided attempt by the 
federal government to put a command and control bureaucracy in charge 
of our national energy economy, this Congress will raise the energy 
costs of every American who drives a car or turns on a light switch. 
And for what? Even supporters of this legislation admit that this bill 
will have a negligible impact on global temperatures.
  By unilaterally disarming ourselves, we become less economically 
competitive for the 21st century. We are preparing, Madam Speaker, to 
cede our global leadership role to foreign competitors by capping our 
growth and innovation, and trading even more manufacturing jobs 
overseas.
  Republicans have a better way forward. We have an all-of-the-above 
energy solution that increases domestic production and use of our own 
resources and creates incentives to move us toward clean, renewable, 
and reliable sources of energy like nuclear, wind, solar, and bio-
fuels. And we do it the way America has always done it--through the 
ingenuity and innovation of the American entrepreneur and worker, not 
top down federal government mandates. I encourage my colleagues to vote 
down this National Energy Tax and to support real American energy 
solutions.
  Ms. KILPATRICK of Michigan. Madam Speaker, I rise in strong support 
of H.R 2454, the American Clean Energy and Security Act (ACES) of 2009. 
This long overdue, necessary, and needed step will make the earth a 
better place, reduce our dependence on foreign oil, by cutting our use 
of foreign oil by more than five million barrels per day. The cost of 
this legislation is just 22 to 30 cents per day--less than the price of 
a postage stamp--or $80 to $111 per year, according to the EPA. This 
bill means more than 1.7 million jobs for our nation, 54,000 for the 
State of Michigan and 23,000 jobs for the City of Detroit. In order to 
ensure that we no longer import hundreds of barrels of oil per day, to 
have cleaner air, cleaner land, cleaner water and a better future for 
my grandchildren and all children, most, if not all, Americans are 
willing to make that investment.
  This bill represents the largest investment in jobs by our government 
since the Great Depression. Michigan, and America, must become part of 
the new technology which is renewable technology. The factories and 
industries that once built cars and trucks can now build wind turbines, 
solar panels, and help get our electrical grid more efficient and 
effective. Replacing our nation's old-fashioned, outdated, outmoded and 
obsolete fossil fuel based energy production equipment will result in 
new research, new manufacturing, new energy sources and new jobs. 
Michigan desperately needs this legislation.
  I am blessed to represent the people of the 13th Congressional 
District of Michigan. The 13th Congressional District of Michigan has 
the highest percent and number of low income

[[Page 16713]]

families in the State of Michigan. Contrary to what opponents of this 
bill say, this bill will not add to the already burdensome pain our 
citizens have already endured and continue to endure. Among other 
things, the bill provides $40 per month to low income families to help 
offset potential increases in energy. In fact, the Congressional Budget 
Office (CBO) has estimated that the bill would actually save low income 
consumers money on their utility bills. The wealthiest twenty percent 
of American households would only experience modest, affordable rate 
increases.
  This bill will create the largest growth in jobs in the private 
sector since the Great Depression. According to the Environmental 
Protection Agency and the Congressional Budget Office, 1.7 million jobs 
will be created that cannot be resourced to other countries. These are 
good paying and secure jobs that will restore businesses and bring 
economic stability to our cities, counties and states. According to the 
Political Economy Research Institute, Michigan stands to gain 54,000 
jobs or 5.4% jobs for every resident in the state. That means 23,000 
new jobs in Detroit alone.
  This legislation is the work of many Committees and has been 
carefully crafted to avoid any undue burdens on agriculture and rural 
families. Farmers spend more money than any other industry on energy, 
which only underscores the fact that we need new energy policies that 
will lower their costs and lower their dependence on fuel. This 
legislation provides farmers and the agricultural industry with unique 
opportunities to make money in energy, through siting windmills or 
solar panels on their lands, or growing crops suitable for the 
production of biofuels. The bill provides assistance to farmers and 
agricultural businesses as we transition to renewable energy by 
providing them with free emissions allowances.
  This legislation does not force other countries to reduce their 
emissions. This legislation cannot do that, anyway. It does show the 
world that the United States is ready to take the lead in the fight 
against climate change. China and other European countries that have 
relied on fossil fuels have shown a willingness to start the fight 
against global warming. This is our opportunity, once again, to be the 
world leader that we have always been.
  The reduction of the greenhouse gases is not only good for our health 
and our children's health--it sets the nation on a new pathway using 
Free-Enterprise principles. Polluted air affects our elderly and young 
people the most. That's why the American Lung Association supports this 
bill.
  This bill is 30 years overdue, if we had started back then, we would 
not only be much less dependent on foreign oil, but our water, air and 
earth would be cleaner. For the government to involve itself in the 
public health, the economy and national security is the oldest role of 
the government in the United States. This partnership of the government 
in these goals has added to the quality of the life we enjoy.
  We have the opportunity, and I will say the responsibility to grow 
jobs in Detroit, Michigan and America. We have a duty to promote 
renewable energy, clean the air, clean the water, clean the earth and 
deal with climate change. The nation that leads the effort toward clean 
and renewable energy will not only make our world a better place for 
our children, our grandchildren, and our families, but it will lead the 
world economy for the next hundred years. This is that bill, and that 
is why I voted for H.R. 2454, the American Clean Energy and Security 
Act of 2009.
  Ms. HERSETH SANDLIN. Madam Speaker, today the House is voting on a 
bill that is designed to shape the course of our nation's economy and 
way of life for decades to come. Unfortunately, I believe the process 
has been too rushed, and I cannot support the bill in its current form.
  I believe it's imperative for Congress to address climate change. I 
agree with the scientific consensus that human activity has 
substantially increased the accumulation of greenhouse gases and is 
contributing to a rise in average global temperature. This rise 
threatens to create a number of dramatic and negative impacts. With 
much of South Dakota's economy dependent on agriculture, which in turn 
depends on our climate, global warming could have a profound effect on 
South Dakota's economy and our way of life.
  Moreover, the alternative to no action by Congress is action by the 
U.S. Environmental Protection Agency (EPA) under the Clean Air Act to 
step in and in a more punitive fashion dictate rules and impose costs 
on industry. Given the complexity both of the climate change problem 
and the steps needed to address it, we need to take time to get it 
right. The stakes are simply too high for a rushed solution that can 
potentially create more problems than it solves.
  While I can't support the bill before the House today, it has already 
come a long way from where it started both in its discussion draft form 
and in the form the Energy and Commerce Committee approved. Both of 
those versions were imperfect and incomplete and would have imposed 
regional inequities on a greater scale than the legislation before the 
House today. Since the committee approved its version of the bill, 
there have been some positive changes made, most notably in the 
agricultural sector.
  Important and common sense improvements have been made that go a long 
way towards recognizing the value that agricultural producers in South 
Dakota can bring to the climate change issue. I commend Agriculture 
Committee Chairman Peterson's efforts as he worked together with many 
members of the Agriculture Committee to ensure that agriculture's 
concerns are addressed in this legislation. This has been a priority 
for me over a long period of time, and I am pleased with the progress 
made.
  The inclusion of an agricultural and forestry offsets program will 
enable farmers, ranchers and forest owners to fully participate in a 
market-based carbon offset program, earning income for activities they 
undertake to address global climate change while also ensuring 
environmental integrity and protecting early actors. Importantly, these 
provisions put the U.S. Department of Agriculture (USDA), not the EPA, 
in charge of regulating the use of farm and forestry projects intended 
to offset carbon dioxide emissions from industrial sources. The EPA 
itself has estimated that agricultural and forest lands currently 
sequester approximately 12 percent of our nation's carbon emissions and 
that the agriculture and forest sectors can sequester up to 25 percent 
of emissions. As such, the agriculture and forestry industries must 
play an essential role in efforts to mitigate climate change.
  I am pleased that the manager's amendment also corrects the 
controversial and unproven methods for calculating indirect emissions 
through the lifecycle greenhouse gas analysis for biofuels. EPA's 
current indirect land use proposal would be put on hold for five years 
pending a needed scientific study and consultation with federal 
agencies and Congress. Importantly, USDA, the Energy Department or EPA 
could veto the results of the study if it is not based on sound, peer-
reviewed science. The bill also makes it very clear that agriculture 
and forestry sectors will be exempt from the greenhouse gas emission 
reduction requirements.
  Lastly, this bill ensures that Wall Street speculators will not be 
able to further drive up energy costs through dark market and secretive 
trading of derivatives of carbon allowances, offset credits, or 
renewable electricity credits by requiring that all carbon derivatives 
trading is conducted only on Commodity Futures Trading Commission-
regulated markets.
  However, while I am supportive of many of the changes made to the 
bill that stand to benefit agriculture, serious substantive and process 
concerns remain when it comes to doing right by rural America. The 
following represent some of my concerns.
  I have heard from several utilities serving South Dakota, such as 
Black Hills Corporation, which serves tens of thousands of South 
Dakotans, that the allowances for emissions in the bill still aren't 
fairly distributed and this disparity could mean dramatic rate hikes 
for its customers in South Dakota.
  Additionally, the bill does not adequately fix the flawed definition 
of renewable biomass in the Renewable Fuels Standard (RFS) or in the 
proposed Renewable Electricity Standard (RES). Again, the definition of 
biomass has improved greatly from the highly restrictive definition 
included in the discussion draft. However, the flawed definition used 
in the final bill before the House today unnecessarily and unwisely 
excludes much federally-sourced biomass from counting toward the RFS 
and a new RES. It also overlooks the essential role forests can and 
should play in sustainably generating renewable energy, ensuring our 
nation meets the cellulosic biofuels mandate in the RFS, moving our 
nation toward energy independence, and creating jobs in rural 
communities across the nation. I continue to believe strongly that we 
can take advantage of this amazing potential within the existing 
protections provided under current environmental laws and responsible 
forest management policy.
  I have worked for nearly two years to broaden the biomass definition 
to allow for federally-sourced biomass to count toward the RFS and have 
urged its inclusion in this legislation, as well as the application of 
this definition to the RES. Overall, a federal RES presents tremendous 
economic opportunities for South Dakota in large part because of our 
state's tremendous wind potential. That is why I was a

[[Page 16714]]

strong supporter of including an RES in the 2007 Energy Bill, and 
helped generate support for the RES Amendment when it passed the House. 
An RES has the potential to create thousands of jobs and generate 
economic development all across South Dakota, for farmers, ranchers, 
and rural communities, as well as our sovereign Native American tribes. 
And much of what is in the RES in this bill presents great opportunity 
for South Dakota.
  However, the definition of biomass added in the manager's amendment 
is still flawed. I am concerned with the ``harvested in environmentally 
sustainable quantities'' requirement, which I think invites new 
analysis, appeals and/or litigation about biomass in general, but more 
specifically, about trees that have been killed by fires or insect 
epidemics. Likewise, I'm concerned with the ``old growth'' and ``late-
successional'' forest stands restriction because there is no generally 
accepted definition of either term, and the bill doesn't define either 
term. So, that would leave an avenue open for challenges, and would 
leave uncertainty about supply for potential investors. These are some 
but not all of my concerns regarding the biomass provisions included in 
the manager's amendment. I hope they will be addressed during the 
remainder of the legislative process.
  Underlying these specific policy concerns are serious concerns about 
the rushed process for such an important and consequential bill. This 
bill is intended to help guide the economic future of our nation for 
decades and I think the process of fixing the bill since it's been 
approved by the committee has been too rushed, and has raised too many 
questions about whether the concerns of rural America are adequately 
addressed. Therefore, I will vote against this bill, but I hope that 
the legislative process will address these concerns, and ultimately, a 
bill can be presented to the House that treats South Dakota and rural 
America fairly as it moves the nation toward the new energy economy and 
addresses the real threat of climate change for our nation's future.
  Mr. ETHERIDGE. Madam Speaker, I rise reluctantly to speak on H.R. 
2456, the American Clean Energy and Security Act of 2009.
  This is not a perfect bill, and I will work for its improvement 
before it comes back here for another vote.
  However, one thing is clear to most Americans: the time for action is 
now. Last summer we had gas prices that hit more than $4 per gallon. 
Last winter some folks could not afford to heat their homes. We need to 
start a clean energy economy that will reduce our dependence on foreign 
oil and position America as a leader in a new technological industry.
  America has traditionally been a global leader in innovation and 
economic growth, and this legislation takes a first step to get America 
running on new energy technologies. We have the technology and the 
research infrastructure to create new ideas. We have talented people 
ready to go to work. And we certainly need the jobs, especially in 
North Carolina. This bill will put people to work creating the 
industries of the 21st Century.
  We have seen that our current energy policy is not working. By doing 
nothing, or delaying action, we risk further crippling our economy. 
That is not a risk we can afford. We will continue to use oil, coal and 
natural gas, solar, wind, hydroelectric, and nuclear, but should also 
create new sources of energy and develop efficient technologies. We 
need to start an energy economy today, with a policy of ``all of the 
above.''
  This is an economic imperative, to create jobs and to prevent spikes 
in energy costs. This is a national security priority, to reduce our 
dependence on foreign oil and to keep the hundreds of billions of 
dollars we send overseas here at home. This is a competitiveness issue, 
to make America a leader in an emerging industry and promote research 
and development here in the U.S.A.
  North Carolina has always been a leader in technology, and has the 
potential to meet America's energy needs through our agricultural 
strength. Moving forward towards a clean energy economy will be a boon 
for North Carolinians and the whole country.
  This is not a perfect bill. It contains some protections for low and 
moderate income families, but does not do enough for the middle class. 
It makes some efforts to prevent regional price differences, but does 
not do enough to recognize the investments North Carolina's rate payers 
have already made. It takes some steps to establish goals for 
international climate negotiations and to ensure that the United States 
is not placed at a competitive disadvantage, but it should do more to 
protect American companies if we take responsible action and other 
nations do not.
  I will reserve the right to work to improve this bill to improve its 
consumer relief provisions, promote regional fairness, and ensure that 
our businesses have a level playing field with their international 
competitors. But I will vote for this bill today to move us forward 
into the future that America needs and deserves.
  Mr. MOORE of Kansas. Madam Speaker, I commend Chairman Waxman and 
Chairman Markey for crafting this truly historic energy legislation 
that will help our country make the transition to a new, clean energy 
economy.
  I want to also thank Chairman Waxman for including a bill I drafted, 
H.R. 2246, in the manager's amendment. This bipartisan legislation, 
which I introduced with my friend from Illinois, Congresswoman Judy 
Biggert, will establish the Community Building Code Administration 
Grant, or CBCAG, Program.
  This competitive grant program will help with local building code 
enforcement by authorizing $100 million over 5 years, capping awards at 
$1 million per recipient, and requiring recipients to match a portion 
of funds received.
  Much attention has been focused on the huge energy savings that can 
be achieved by increased energy efficiency in buildings, which consume 
nearly 40 percent of all energy and 70 percent of the electricity 
produced in the U.S.
  But building codes don't make a difference unless they are enforced 
by local code officials who are properly trained and have sufficient 
resources to inspect buildings for compliance. It will save taxpayer 
dollars as well--according to a study conducted by the National 
Institute of Building Sciences, for every $1 spent on mitigation saves 
$4 in future disaster assistance.
  H.R. 2246 is supported by the International Code Council, the 
Alliance to Save Energy and many other organizations. Again, I'm 
pleased my legislation has been incorporated into the manager's 
amendment to the American Clean Energy and Security Act.
  I support the underlying bill and urge members to vote in favor of 
passage. But, I also strongly urge Chairman Waxman and Leadership to 
strengthen the Renewable Electricity Standard (R.E.S.) during the 
Conference Committee.
  I commend Chairman Waxman and Chairman Markey for crafting this truly 
historic energy legislation that will help our country make the 
transition to a new clean energy economy.
  The strong R.E.S. that we started with has unfortunately been watered 
down so significantly that it will not even provide an incentive to 
maintain current levels of renewable deployment.
  Kansas utilities, like those of so many other states, are on track to 
cost-effectively meet a state R.E.S. of 10 percent by 2011. A federal 
goal of 6 percent by 2012 would provide no incentive for new 
investments in wind development or manufacturing.
  That means that more jobs will be left on the table and that the U.S. 
will continue to lag behind the 37 countries around the world that have 
a binding, long-term commitment to renewable energy development.
  The global marketplace is watching us. Companies both here and abroad 
are waiting to see if we enact an R.E.S. that will provide a true 
commitment to transitioning our economy to cleaner forms of energy.
  They are making critical decisions on whether and where to build new 
manufacturing facilities or retool their companies to create new, high-
quality jobs.
  We can decide right now if we are going to build more of the new 
energy components right here in the United States or continue to import 
them from overseas.
  Kansas is thrilled that Siemens chose to build nacelles for wind 
turbines in Hutchinson, creating 400 jobs in one small town and supply 
chain opportunities for hundreds of companies in the region. Several 
recent reports project job growth in the tens of thousands in our 
industrial heartland if we make a real commitment to renewable energy.
  A stronger national R.E.S. is the most important policy tool we have 
to make sure new energy projects utilize American-made components 
manufactured by American workers.
  Harnessing renewable energy also builds our rural communities--this 
``new crop'' sustains farmers and ranchers and keeps the schools, 
clinics, roads and services strong in America's small towns.
  A stronger national R.E.S. would also benefit consumers by holding 
down energy prices and protecting them against the price spikes of 
fossil fuels by promoting fuel diversity.
  In fact, numerous independent studies have shown that the R.E.S. 
saves consumers money on their energy bills in all regions of the 
country.
  In addition, a strong national R.E.S. will ensure that currently 
available clean technology is deployed quickly to help achieve greater 
emission reductions in the future at a lower cost.
  And perhaps most importantly, Americans are demanding bold policies 
that will push our

[[Page 16715]]

country in a new direction on energy and ensure a clean, secure energy 
future for America.
  In April a national poll found that 75 percent of Third District 
residents support a R.E.S. of 25 percent by 2025. This support is 
strong across all counties of my state and throughout all regions of 
the country.
  That is why I urge Chairman Waxman and House Leadership to strengthen 
the R.E.S. as this legislation moves forward.
  Ms. MARKEY of Colorado. Madam Speaker, I rise today in support of the 
transmission siting section of the manager's amendment to the American 
Clean Energy and Security Act of 2009. Yesterday, Congressman Inslee 
and I offered this amendment to strengthen siting authority within the 
Western Interconnection, which extends from Colorado to the west coast.
  My home state of Colorado has enormous renewable energy potential, 
but our outdated transmission infrastructure is inadequate to bring 
these resources to where they are needed. According to the Renewable 
Resource Generation Development Areas Task Force, Colorado has eight 
potential high concentration wind development areas and two potential 
high concentration solar development areas capable of generating more 
than 96 GW and 26 GW of energy, respectively. These estimates show that 
Colorado is more than able to generate excess renewable electricity for 
export to other states, and does not take into account smaller scale 
projects or distributed generation.
  For western states like Colorado, the renewable energy potential is 
there, but the areas with the best wind and solar resources are often 
in remote areas that lack adequate transmission lines to transport the 
energy to where it is needed. As I travel to the Eastern Plains of 
Colorado, the landowners often tell me they are more than willing for 
wind and solar developers to install wind turbines and solar panels on 
their property, because for them it is an economic development tool. 
Ranchers can receive compensation by putting wind turbines on their 
land and their cattle can still graze under the towers.
  Our current transmission system has evolved from local demands 
without an integrated national plan. Implementation of interstate 
transmission lines requires coordinating the regulatory permitting 
processes in each of the individual states and localities that the line 
will traverse. Our amendment builds upon the existing regional planning 
section of the American Clean Energy and Security Act and adds a siting 
plan for the Western Interconnection. This siting plan gives the 
Federal Energy Regulatory Commission backstop siting authority to 
ensure the construction of high-priority interstate transmission lines. 
Self identified regional planning entities will build a national 
transmission plan from the bottom up and with higher priority given to 
meet the demand of deploying renewable electricity generation projects. 
Our amendment will give ample deference to states and will encourage 
state and local participation throughout the planning and siting 
process.
  In addition to the Inslee/Markey transmission siting amendment, I 
would like to express my strong support of Chairman Peterson's 
agriculture amendment. My district in eastern Colorado contains some of 
the best agricultural land in Colorado. Weld County, in the 4th CD, is 
the number one ranking county in the state for agricultural products 
sold and eighth in the nation. I worked hard with my colleagues on the 
Agriculture committee to ensure that Colorado's farmers and ranchers 
will be able to benefit from the programs in this legislation.
  I support authorizing the Secretary of Agriculture to carry out the 
agriculture and forestry related offsets programs in Title V of the 
American Clean Energy and Security Act. The United States Department of 
Agriculture conservation programs and the Department's extensive 
knowledge of optimizing agricultural practices leave them well poised 
to establish measurable and reliable offsets. Furthermore, the 
multitude of USDA offices near likely offset projects leave the 
Department in a better position to provide regulatory and technical 
assistance to farmers and ranchers.
  Finally, I would like to express my support of amending the 
definition of renewable biomass in the renewable electricity standard 
and the renewable fuels standard of the Energy Independence and 
Security Act of 2007 to include infested trees removed from public 
lands. The Forest Service expects this bark beetle outbreak will kill 
most of the mature lodgepole pines covering 2.2 million acres in 
Colorado and southern Wyoming within the next 5 years. Some estimates 
indicate almost 2 million acres the have already been decimated. While 
it is not our intention to incentivize unnecessary cutting in our 
public lands, work is already being done in our public lands to remove 
trees killed by bark beetles to reduce the threat of wildfires and 
preserve forest health. We should utilize this available waste.
  We have an opportunity to be smarter about the way we create and use 
energy. By utilizing the great renewable electricity potential in the 
west, we can invest in our future and put Americans back to work.
  Mr. FATTAH. Madam Speaker, I thank you for allowing me the time to 
speak on this topic of paramount importance. Climate change and the 
problem of rising carbon emissions is one of the most important public 
policy quandaries that the nation currently faces. Congress needs to 
take the lead in helping to solve this issue. Therefore, I implore my 
fellow members of Congress to vote yes and help pass the American Clean 
Energy and Security Act, H.R. 2454.
  As you well know, H.R. 2454 is a broad-based bill that includes a 
number of initiatives on clean energy, economic development, and 
climate change. Taken together, these initiatives will create the 
national policy framework and all important funding streams that are 
needed to adequately tackle the threat posed by rising carbon 
emissions.
  Moreover, the incentives contained within H.R. 2454 will help 
strengthen and support those emerging renewable energy industries to 
help create jobs that will enable millions of Americans to get back to 
work. I know that these jobs will be created because I have already 
seen it happening in my home state of Pennsylvania. I have seen the 
jobs created by the wind and solar manufactures, and I have spoken to 
the leaders of local Philadelphia business who have told me how 
important the clean energy industry is to the Philadelphia region.
  Moreover, I have read the studies that show how many jobs will be 
created if Congress passes H.R. 2454. For example, in a 2008 report 
published by the Clean Air Council entitled ``Job Opportunities for the 
Green Economy,'' it was estimated that over 533,000 jobs in 
Pennsylvania alone will see growth or wage increases by putting global 
energy solutions to work. As the world moves into a less carbon 
intensive future, these new industries will allow the country to thrive 
as they become the new economic engines that power future growth.
  I believe that our nation needs a comprehensive energy strategy that 
makes our nation more energy efficient, decreases our reliance on 
foreign oil, creates jobs, and helps prevent increases in carbon 
emissions. I am not alone in my beliefs. People throughout the nation 
want Congress to get moving on reducing carbon emissions. These 
Americans understand that climate change is one of the most important 
issues that face the nation today. They understand that the rapidly 
changing climate that is due to rising carbon emissions is having a 
profound impact on the nation's forests, coastal areas, drinking water, 
and other important ecosystems that human beings rely on.
  Therefore, I implore my fellow members of Congress to pass the 
American Clean Energy and Security Act. Help put our nation on track to 
a cleaner energy future.
  Mr. OLSON. Madam Speaker, this Democratic cap-and-tax plan is simply 
a shell game designed to funnel billions of taxpayer and industry 
dollars through government to fund their restrictive energy plan. Faced 
with an outcry over the impact their plan will have on family budgets, 
Democrats have tried to buy off opposition by offering ``rebates'' to 
help offset increased costs.
  Let's be clear, this rebate is nothing more than the government 
giving you your own money back. It is typical Washington: steal your 
wallet, and pat themself on the back for giving you back the spare 
change. And let's not forget the fundamental failure of this job-
killing plan--it doesn't even reduce carbon emissions.
  According to analysis from the Heritage Foundation, hard working 
folks in my congressional district alone will lose nearly 5,000 jobs in 
2012 alone. That is just one year of job losses in one district and the 
numbers only go up from there. And the average household in Texas could 
pay an additional $1,136 for household goods and services over a given 
year.
  My office has received 680 calls this week on cap-and-tax and 671 of 
them strongly urged me to oppose this bill. In these times of economic 
hardship, Congress must be focused on creating and maintaining jobs. My 
Democratic colleagues who are advocating for this legislation tout the 
fact that more ``green'' jobs will be created by this job.
  What they fail to mention is that good paying jobs that already exist 
in this country will be shipped overseas and our national unemployment 
rate will increase. We have already seen this happen in Spain, where a 
study

[[Page 16716]]

found that for every one green job created two other jobs were lost. I 
do not want this for my constituents, I do not want this for the 
businesses in the 22nd District of Texas, and I do not want this for 
the American people.
  Madam Speaker, this is simply a scheme to restrict needed energy and 
decide who is worthy of working in which government approved energy 
job. That is not the role of government and Americans should be 
outraged. The stimulus plan was designed to create jobs through 
billions and billions of tax dollars. It has not created the jobs it 
promised and this energy shell game will not work either.
  Mr. TIAHRT. Madam Speaker, I heard of a climatologist who went to 
apply for a job recently. During his interview, he was asked, ``What do 
you predict will happen with the earth's climate next year'?'' He 
immediately replied, ``Whatever you want me to predict.''
  Unfortunately, this joke seems to hit a little too close to home, 
when we are considering global warming legislation. Rather than 
responding to serious questions with serious answers, Congress is 
replying with what we think people want to hear. Rather than 
considering all angles before offering a solution, Congress is rushing 
through legislation in hopes to score points with voters back home. And 
instead of basing a bill on sound scientific data, we will be 
considering legislation that is devoid of input from this side of the 
aisle.
  I rise today to express my strong opposition to Waxman-Markey ``cap 
and tax'' bill. I believe there are three interrelated problems with 
this misguided legislation. I am concerned with the process by which we 
have arrived at the point we are today. I am concerned with the 
political showmanship that has gone on as the bill was written. And I 
am concerned with the policy itself, which bears the tragic scars of 
both the process and the politics.
  Madam Speaker, from the beginning of the 111th Congress to the 
present, the cap-and-tax bill has been subjected to unfortunate abuses 
of the legislative process. In April, the Energy and Commerce Committee 
held four days of hearings, with the intention of, according to the 
Committee's website, ``examine the views of the Administration and a 
broad range of stakeholders,'' on a discussion draft of Chairman 
Waxman's bill. However, these hearings reflected only the Chairman's 
perspective. Only four of the twenty-one witnesses called before the 
Committee expressed any opposition to cap-and-tax, despite a petition 
signed by more than thirty thousand meteorologists, climatologists, and 
other scientists stating their skepticism about the evidence of man-
made greenhouse gases being responsible for increases in the earth's 
temperature. Contrary to claims made by the Committee, and witnesses at 
the hearing, there is no ``overwhelming consensus'' in favor of the 
hypothesis of human-caused global warming. There was also a report 
issued by Republicans on the Senate Environment and Public Works 
Committee outlining the dissent views of more than 700 scientists 
opposing the idea of manmade global warming. Clearly, no consensus has 
been reached.
  Madam Speaker, This bill was drafted without input from our side of 
the aisle. At no point was any Republican consulted regarding the 
contents of the bill. In the rush to get the legislation passed through 
Committee, it seems no one had time to read the entire bill, or figure 
out what it means. Committee members repeatedly asked questions 
regarding the potential cost of particular provisions or amendments, 
but received no answers.
  All of this raises the question, ``why''? Why was the bill rushed 
through the Committee, With hardly enough time to read it, let alone 
determine the impact that it would have on American taxpayers, farms, 
and businesses? The only answer I can come up with is the desire on the 
part of some in this body to score points with their voters back home.
  Which brings me to the third problem with Chairman Waxman's cap and 
tax bill--its just bad policy. Earlier this week, Investor's Business 
Daily had a front page article about the failures of Europe's program, 
called the Emissions Trading Scheme, or ETS. The article cites numerous 
studies finding that the ETS has significantly increased energy prices, 
``with `uncertain' effects on greenhouse gas emissions.'' That hardly 
sounds like a model of success that we should be emulating here in the 
United States.
  Proponents of the cap and tax bill claim that they have learned from 
Europe's mistakes, but I disagree, Madam Speaker. The article 
identifies the giving away of the program's carbon allowances as the 
largest reason for the program's failure. This bill follows that same 
model, giving away roughly 85 percent of the emissions allowances.
  The entire idea of a cap and trade program fails in practice. We are 
told, ``The cost of polluting will be paid by the polluters.'' And 
believe me, the authors of this bill expect them to pay a hefty price. 
In fact, President Obama's budget assumes that even with the sale of 
only 15 percent of the total emissions permits, the federal government 
will still take in more than $650 billion. As the cap gets lower, and 
there are fewer permits available, the cost for ``polluters'' is going 
to grow ever higher. But that is exactly what the authors want. 
President Obama recently stated that the only way for a cap-and-trade 
system to work is for energy prices to ``skyrocket.''
  There is nothing in the bill to keep the ``polluters'' from passing 
those skyrocketing costs on to the consumers. In fact, they will be 
forced to so. Any business that cannot pass the costs on to consumers 
runs the risk of being driven out of business. In the end, it will be 
the American taxpayer that foots the bill for this program, in the form 
of higher prices at the pump, higher home energy bills, and lost 
economic growth. But don't just take my word for it. Even the director 
of the Congressional Budget Office has said that, ``under a cap-and-
trade program, consumers would ultimately bear most of the costs of 
emission reductions.''
  One analysis of this bill found that if the standards within the bill 
are met, by 2035 Americans will see gas prices rise 74 percent, 
electricity prices increase by 90 percent, and a loss of at least 
850,000 jobs every year. The average American household will see its 
annual energy bill go up by nearly $1,500. For my home state of Kansas 
in particular, we are going to have to purchase an estimated $206.8 
million worth of carbon credits. That is $206 million more that Kansans 
are going to have to pay in energy costs every year. My district will 
be particularly hard-hit, as estimates show my district standing to 
lose nearly half a billion dollars of production in 2012, and more than 
5,000 non-agriculture jobs. It's this kind of economic pain that 
advocates are counting on to force a reduction in carbon emissions.
  The European system proves this idea doesnt work. With no signs of a 
reduction in carbon emissions, Europeans have seen their household 
energy costs rise by 16%, and the industrial energy costs increase by 
32%.
  Spain is an especially poignant example of the failure of the 
European system. They committed to reaching the benchmarks set out by 
the Kyoto Protocol, with renewable energy standards, so-called green-
collar jobs, and a commitment to reduce their carbon emission levels. 
But the high cost of energy in Spain has destroyed their economy, which 
is currently facing a 17.5% unemployment rate. Proponents of this bill 
say that we will be creating new, green jobs. But most of these jobs 
are temporary construction jobs that go away once facilities, like wind 
farms for example, are built. In Spain, for every 4 jobs that were 
created, 9 were lost due to the higher cost of doing business under the 
Emissions Scheme. We should avoid going down this same path.
  There is huge potential for exploitation of the system, on multiple 
levels. Especially with permits being given out, rather than auctioned, 
government officials are in a prime position to divert additional 
credits towards industries or companies of their choice. There is also 
the possibility that utilities here in the United States could follow 
the lead of one European company that immediately raised their rate by 
70%, explaining to customers that the rate hike was necessary to cover 
the costs of cap-and-trade. But this utility company was given more 
credits than it needed, and sold them on the open market.
  Tack on a renewables standard to this bill, and we have the perfect 
recipe for failure. No place that has implemented a renewable standard 
has ever been able to meet the required levels. And there is little to 
indicate that a federal standard would be any different. As a 2008 
article in the Energy Law Journal stated, ``The DOE has little, if any, 
experience in administering a program on the scale of a national RPS, 
and has shown no indication that enforcement of a major program is 
within the agency's capabilities...[this is] an area in which the DOE 
has already failed to show effective leadership.''
  So what we have here is a bill that has been rammed through with no 
minority input, to create a system that is ripe for abuse, costs the 
American taxpayer thousands of dollars, cripples our businesses, and in 
the end, has no measureable result. This is a bill I cannot support, 
and urge my colleagues to reject as well. Instead, I would encourage my 
colleagues to join me in supporting the American Energy Act, a 
comprehensive energy bill that increases access to domestic energy 
sources, encourages conservation, and promotes the increased use of 
renewable sources of energy.
  Across this country, we are, once again, seeing gas prices rise. 
Since the beginning of the year, gas prices are up 60 cents, and

[[Page 16717]]

crude oil has raised more than $20 a barrel, with no end in sight. Just 
last week, Russian oil executives predicted that crude prices could 
reach $250 per barrel.
  It is possible for us to relieve some of this pressure by tapping 
into our own vast resources. The Department of Energy estimates that 
nearly 20 billion barrels of recoverable oil lie offshore beneath 
restricted waters, the equivalent to nearly 30 years worth of current 
imports from Saudi Arabia. Substantial offshore natural gas reserves 
are also restricted. Even though longstanding restrictions on offshore 
energy production were lifted last year, the process of leasing these 
areas falls under the jurisdiction of the Department of the Interior.
  Unfortunately, new Secretary of the Interior Ken Salazar refuses to 
allow additional drilling permits, dredging up every excuse not to 
produce energy in these areas. The Alaskan National Wildlife Refuge, 
reported to hold more than 10 billion barrels of oil continues to 
remain off-limits. He has also sought to block progress on oil shale, a 
promising source of oil trapped in rock under parts of Colorado, Utah, 
and Wyoming. The Department of the Interior has even cancelled some 
existing oil and gas leases.
  Often, environmental concerns are cited as the reason for opposing 
additional drilling. However, technological advances have greatly 
increased the safety of drilling. During hurricanes Rita and Katrina, 
less than one cup of oil was spilled in the Gulf of Mexico, despite 
damage to more than 120 drilling platforms. There is absolutely no 
reason why permits for additional drilling should be denied. 
Furthermore, revenue generated by these oil leases will be invested in 
the development of cleaner, alternative sources of energy. The end 
result is a reduced dependency on foreign oil, lower levels of 
pollution, and new jobs for Americans, all without crippling our 
economy.
  Lastly, Madam Speaker, the American Energy Act includes one key 
source that could provide clean energy without emissions nuclear power. 
The Department of Energy has stated that the best way for energy 
companies to reduce their carbon emissions is to increase their use of 
nuclear energy. Despite encouragement from DoE, and the fact that that 
it has been proven safe by countries like France, where more than 80% 
of their electricity is generated by nuclear power, the Waxman-Markey 
bill does nothing to encourage nuclear power.
  Instead, this administration has begun to walk away from the hundreds 
of millions of dollars spent on the nuclear storage facility at Yucca 
Mountain, Nevada. The American Energy Act would provide the Nuclear 
Regulatory Commission authority to complete its review of the Yucca 
Mountain facility, repeal the limitations on Yucca's Mountain's storage 
capacity, and establishes a method for recycling spent nuclear fuel in 
the U.S. Furthermore, it would reduce the bureaucratic hoops and length 
of time required to receive a permit for the construction of new 
nuclear plants.
  In conclusion, let me again encourage my colleagues to join me in 
rejecting the Waxman-Markey cap-and-tax bill that would cripple our 
economy, without addressing their environmental concerns. Instead, lets 
support the American Energy Act, which provides real solutions for our 
energy problems in an economically, and environmentally sound manner.
  Mr. BURTON of Indiana. Madam Speaker, if this energy tax passes, the 
estimated job loss or my district is an average of 3,702 jobs per year 
from 2012 through 2035. If this bill passes it will mean financial ruin 
for thousands of my constituents.
  5th CD Gross State Product Loss for 2012: $361.7 million
  5th CD Gross State Product Loss on average from 2012-2035: $720.1 
million
  5th CD Personal Income Loss in 2012: $458.7 million
  5th CD Personal Income Loss on average from 2012-2035: $265.7 million
  5th CD Non-farm Job Loss in 2012: 4,552
  5th CD Non-farm Job Loss on average from 2012-2035: 3,702


                    the consequences of cap and tax

  Over 1,200 pages long, H.R. 2454 contains four sections outlining 
mandates for renewable energy, mandates for energy efficiency, a cap-
and-tax proposal, and a ``transitioning'' section focused on 
forestalling expected job loss.


                          higher Energy Prices

  Every consumer will pay for this both directly and indirectly.
  Independent researchers, CBO, and the President all agree that this 
cost will be passed to consumers.
  every provision in the bill either increases the cost of energy 
directly or tried to keep it from increasing too much.
  Example: new federal renewable electricity standard that would likely 
cause electricity prices to spike.
  This is the ultimate regressive consumption tax to the tune of nearly 
$3,000 per year according to the Heritage Foundation.
  The costs per family for the whole energy tax aggregated from 2012 to 
2035 are estimated to be $71,493.


                               fewer jobs

  Yesterday in the Rose Garden, President Obama said that Cap-and-Trade 
was a ``jobs bill.'' Yet many studies reports rampant job loss through 
the year 2035.
  A national energy tax would undoubtedly outsource millions of 
manufacturing jobs to countries such as China and India.
  According to the independent Charles River Associates International, 
H.R. 2454 would result in a ``net reduction in U.S. employment of 2.3 
million to 2.7 million jobs each year of the policy through 2030,'' 
even after the ``creation'' of new green jobs.
  Green Jobs Are a Proven Failure: According to a recent study that 
reviewed the impact of ``green jobs'' in Spain, the U.S. can expect 2.2 
jobs to be destroyed for every 1 renewable job financed by the 
government. Only 1 in 10 of the jobs actually created through green 
investment is permanent, and since 2000, Spain has spent 753,778 U.S. 
dollars to create each ``green job,'' including subsidies of more than 
$1,319,783 per wind industry job.


                  government mandates and intervention

  This includes new federal mandates on everything from outdoor light 
bulbs and table lamps to water dispensers, commercial hot food 
cabinets, and Jacuzzis.
  Establishes a myriad of new federal agencies intertwined between at 
least 21 established agencies with the mission of reallocating 
trillions of taxpayer dollars. According the U.S. Chamber of Commerce, 
the bill will impose 397 new federal regulations that require 
traditional agency rulemakings.
  The bill transfers wealth from rural areas to cities. States like 
California, Washington, and New Jersey would receive more emission 
credits than they need, enabling them to sell surplus credits to 
smaller facilities in states like Ohio that receive maybe half of the 
credits they need--making the rich, richer, and the poor, poorer.
  The bill would also increase the demand for electricity (to fuel 
plug-in vehicles via new hybrid incentives) at the same time as the 
other portions of the bill cause consumer electricity costs to spike.
  Although the bill includes ``free'' allowances for some sectors, 
economists agree that even if 100 percent of the industry's emissions 
were initially covered by free allocations, the bill's declining carbon 
cap will force higher and higher costs onto the American public.
  According to the Heritage Foundation, by 2035 this legislation would:
  Reduce aggregate gross GDP by $9.4 trillion;
  Raise electricity rates 90 percent;
  Raise gasoline prices by 58 percent;
  Raise residential natural gas prices by 55 percent; and
  Increase inflation-adjusted federal debt by 26 percent, or $28,728 
additional federal debt per person, again after adjusting for 
inflation.
  Furthermore, a recent poll shows that 78 percent of individuals 
questioned said that a $50 increase in monthly utility bills would be a 
hardship.
  58 percent of respondents say that they are unwilling to pay any more 
than they currently pay for electricity to combat climate change.
  To that end, one-half of those polled oppose enacting a carbon tax to 
fund energy research (up from 31 percent in 2007).
  In addition, the bill:
  Creates a Derivatives Market for Companies like AIG: Companies like 
AIG and ENRON will be participating in a new derivatives market that is 
much more volatile than housing or natural gas. This new unregulated 
derivatives market will be more perilous for companies like these than 
the traditional ones that got them into trouble in the first place. In 
addition, since the created artificial market contains no transparency, 
it is more likely to attract traders intent on imposing Ponzi schemes 
in the same spirit of Bernie Madoff and swindle thousands of Americans.
  Devastates Rural America: Rural households spend 58% more on fuel 
than urban residents as a percentage of their income. The Heritage 
Foundation estimates farm income will drop by $50 billion by 2035.
  Concedes to the Competition: Currently, China accounts for 85% of 
global growth in coal each year and is the world's largest annual 
emitter of greenhouse gases. China's energy usage rose by 7.2% last 
year and they are building approximately two coal fired power plants 
per week to keep up with demand. Recently, at a U.N. conference, the 
Chinese government's advisory panel on climate change asserted that the 
cap and tax targets were too low by stating Given that, it

[[Page 16718]]

is natural for China to have some increase in its emissions, so it is 
not possible for China in that context to accept a binding or 
compulsory target. In addition, India will not agree to any cap on 
their total energy production, and many believe India will double their 
coal-fired-capacity by 2030.
  Discriminates Against Developing Nations: The bill creates a new 
program under USAID to provide U.S. foreign aid to developing countries 
for their efforts to adapt to climate change. Essentially, the bill is 
sending taxpayer funds to encourage third world nations to not develop 
carbon emitting energy sources keeping them at a competitive 
disadvantage from developed nations for even more decades to come.
  Establishes an Unrealistic Renewable Energy Standard (RES): ``Cap and 
tax'' does not take into account the fact that additional hydropower, 
nuclear and advanced fossil coal power plants cannot be deployed 
quickly enough to meet expected growth in electricity demand while also 
dramatically reducing greenhouse gas (GHG) emissions. Since renewable 
technology accounts for a small percentage of energy demand, consumers 
can expect not only higher rates, but more transmission problems during 
peak hours of demand. Additionally, the bill preempts at least 23 state 
renewable electricity standards.
  Includes Davis-Bacon: ``Cap and tax'' expands Davis-Bacon prevailing 
wage requirements to many provisions of the bill. This policy has been 
shown to increase public construction costs by anywhere from 5 to 38 
percent above projected costs for the same project in the private 
sector.
  Groups Scoring as a Key Vote: 60 Plus Association, Americans for 
Prosperity, Americans for Tax Reform (double-rating), Citizens Against 
Government Waste, Club for Growth, FreedomWorks, Independent Petroleum 
Association of America, National Association of Manufacturers, National 
Association of Wholesaler-Distributors, National Cattleman Beef 
Association, National Federation of Independent Businesses, National 
Taxpayers Union, Small Business & Entrepreneurship Council (SBE 
Council).
  Mr. PAULSEN. Madam Speaker, it must be a priority to work 
aggressively and prudently as a nation to cut greenhouse gas emissions. 
However, I believe we can do this without the current ``cap and trade'' 
plan we are voting on today.
  Reducing emissions and strengthening our environment are important 
priorities--priorities I support. However, the ``cap and trade'' bill 
before us today is just a fancy way of masking ``tax and spend''--and 
it is the wrong approach to addressing this issue.
  America needs a comprehensive energy solution to reduce our 
dependence on foreign oil and jump-start our economy, but it should not 
be at the expense of every American taxpayer.
  Analysis shows cap and trade will raise gas prices, raise electricity 
prices and eliminate American jobs. Studies have shown up to 2.5 
million jobs will be lost, making America less globally competitive.
  In the worst recession in over 70 years, this legislation would 
exacerbate our situation by increasing energy costs for every sector of 
our economy. If the priority is jobs, it is stunning to me that we're 
bringing this bill to the floor that will create a national energy tax 
on every working family and every small business in America.
  There are several common sense, bipartisan solutions that invest in 
new, clean and reliable sources of energy. I'm supporting a plan that 
aggressively reduces emissions, promotes conservation, creates jobs and 
strengthens our environment by promoting nuclear energy--a zero 
emissions, renewable source. It also boosts domestic supplies of both 
natural gas and oil.
  I hope today that we do what is right for America, by voting down 
this cap and trade proposal and moving forward with a plan that will 
work for--not against--all Americans.
  Mr. OBERSTAR. Madam Speaker, I rise today in support of H.R. 2454, 
the ``American Clean Energy and Security Act of 2009''.
  This bill seeks to promote clean energy use and reduce carbon 
emissions in the United States. The legislation will create millions of 
new clean energy jobs, enhance America's energy independence, and 
protect the environment. Additionally, this bill recognizes the 
important role that transportation plays in addressing global climate 
change, and I am pleased that the Committee on Energy and Commerce has 
worked in concert with the Committee on Transportation and 
Infrastructure in crafting key provisions of this bill.
  According to the U.S. Environmental Protection Agency (EPA), nearly 
30 percent of the total greenhouse gas emissions produced by the United 
States comes from the transportation sector, second only to electricity 
generation. The U.S. Department of Energy (DOE) reports that the carbon 
dioxide emissions from the transportation sector grew 25.4 percent 
between 1990 and 2006, an average of 1.4 percent each year. The most 
recent DOE data show that transportation produces more metric tons of 
energy-related carbon dioxide than the residential and commercial 
sectors, and almost as much as the industrial sector.
  Nearly all of these transportation-related emissions come from the 
use of petroleum products. The transportation sector accounts for 68 
percent of the total U.S. petroleum consumption; Americans used almost 
14 million barrels of oil each day for transportation purposes in 2006. 
According to the Federal Highway Administration (FHWA), the amount of 
miles Americans drive each year has grown three times faster than the 
U.S. population, and almost twice as fast as vehicle registrations. 
Private vehicles are now the largest contributor to household ``carbon 
footprints''--accounting for 55 percent of carbon emissions from U.S. 
households. Federal policies over the last 50 years, however, have done 
little to address the growing problem of greenhouse gas emissions.
  A February 2008 report by ICF International released by the American 
Public Transportation Association found that a person who switches a 
20-mile round trip commute alone from car to existing public 
transportation, can reduce his or her annual carbon dioxide emissions 
by 4,800 pounds per year. This dramatic energy savings is equal to a 10 
percent reduction in all greenhouse gas emissions produced by a typical 
two-adult, two-car household. Furthermore, if Americans used public 
transit at the same rate as Europeans--for roughly 10 percent of their 
daily travel needs--the United States could reduce its dependence on 
imported oil by more than 40 percent, nearly equal to the 550 million 
barrels of crude oil that we import from Saudi Arabia each year.
  To reduce America's carbon footprint and to encourage the development 
and expansion of sustainable transportation options, the American Clean 
Energy and Security Act will implement a number of initiatives to 
significantly reduce transportation-related greenhouse gas emissions. 
These provisions represent the next steps to mitigate the negative 
impact the transportation sector has on climate protection, while 
increasing the livability of our communities nationwide.
  Under the American Clean Energy and Security Act, States will receive 
allowances for clean energy and energy efficiency investments, and are 
authorized to use up to 10 percent of these allowances for certain 
transportation projects. States may use allowances to fulfill the local 
matching requirement to receive Federal funds for projects like public 
transportation system improvements, clean fuel buses, or construction 
of bicycle facilities. While this provision offers only a small portion 
of the funds needed to address surface transportation-related 
greenhouse gas emissions, it is a very good first step.
  Additional provisions of the legislation expand the scope of current 
surface transportation planning to include emissions reduction 
requirements administered by the Department of Transportation (DOT). 
The Act requires EPA, in consultation with DOT, to set national 
emission reduction goals, but requires DOT to set transportation-
related emissions reduction performance measures for each State and 
large metropolitan areas. States and metropolitan planning 
organizations (MPOs) must meet individualized transportation-related 
emissions reductions targets, and the Act requires public notice of 
those targets, including an assessment of how well States and MPOs are 
meeting emission reduction goals.
  These important transportation planning provisions are also included 
in the Surface Transportation Authorization Act of 2009, legislation 
that the Subcommittee on Highways and Transit passed unanimously this 
week by voice vote, and which I plan to bring before the full Committee 
on Transportation and Infrastructure and the House soon after the 
fourth of July recess.
  These transformational changes to our surface transportation planning 
requirements, especially when coupled with dedicated funding for clean 
energy transportation projects, will save fuel, reduce emissions, and 
advance America's long-sought goal of energy independence.
  In addition to these important transportation provisions, I am very 
pleased that agreement has been reached to clarify the definition of 
renewable biomass. I want to commend the leadership of my Minnesota 
colleague, Collin Peterson, Chairman of the Committee on Agriculture, 
for his superb advocacy for rural America and the wood product 
industry. The new biomass definition and provisions that provide credit 
for forestry and wood products for carbon sequestration are essential 
to ensure that our vital wood product sector is not

[[Page 16719]]

disadvantaged in the climate change legislation.
  I am also very pleased that additional language has been added to 
ensure that the iron ore sector will receive emission allowances, and I 
greatly appreciate Chairman Waxman's willingness to work with my 
colleague Bart Stupak and me on this important iron ore mining 
clarification.
  While I am prepared to support this legislation today, I continue to 
have concerns with the climate change bill regarding the border 
adjustment mechanism. It is imperative that the final climate change 
legislation contain strong safeguards to ensure that our manufacturing 
sector is not disadvantaged by imports from nations that have not 
implemented carbon reduction technologies.
  Without further improvements, it is likely that the steel, wood 
product, and other energy-intensive sectors of our economy would face 
unfair competition from nations with insufficient environmental 
safeguards. I am encouraged by the important contributions that my 
colleagues Mike Doyle, Jay Inslee, Charlie Rangel, and Sandy Levin have 
made in this area, and I will continue to work with my colleagues to 
make additional improvements.
  We must also ensure that the final climate change bill addresses 
regional concerns regarding the allocation of emissions allowances to 
utilities in the Midwest. While I am pleased that improvements were 
made to assist rural electrical cooperatives, I remain concerned that 
the current formula, which would allocate emissions allowances to 
utilities based on a combination of sales and emissions, would unfairly 
impact Midwestern power producers, and I am hopeful that further 
refinements can be made to ensure regional equity.
  For these reasons and more, I support H.R. 2454, the ``American Clean 
Energy and Security Act of 2009'', and urge my colleagues to do the 
same.
  Mr. RAHALL. Madam Speaker, the Congress would be unwise to sit by and 
simply allow the Environmental Protection Agency to regulate a 
reduction in greenhouse gas emissions, as the agency has been mandated 
to do by the Supreme Court. Similarly, it would be a mistake to sit 
back and allow other countries to devise international rules that will 
affect America's economic and energy interests.
  I do not agree with those who advocate for sitting on our hands and 
just saying no to everything, sight unseen. The international community 
has no interest in protecting American businesses, and the 
Environmental Protection Agency is not required by the Supreme Court to 
consider the views of our constituents or the economic consequences to 
our communities.
  I believe America is the one nation best equipped to lead such a 
multinational effort and, in doing so, to strike a balance between 
environmental preservation and the preservation of jobs. The hands-off 
approach of recent years did nothing to help promote new energy 
technologies, or to advance carbon capture and sequestration, or to 
protect American jobs.
  It is evident that wishing that this complex issue would simply go 
away will not lead to better results for our Nation or the people we 
represent. And ``just saying no'' to any and all proposals, sight 
unseen, is unrealistic and irresponsible.
  For those reasons, I chose to work with my colleagues and with 
numerous stakeholders--including the coal industry, manufacturers, and 
labor--to positively influence this bill and America's climate change 
strategies. And for those reasons our coal miners and responsible 
industry members have been at the table, too, rather than on the 
sidelines.
  I thank Chairman Waxman, who has made many concessions in this bill, 
and I thank leadership for listening to my concerns about this 
legislation and moving to help address them.
  As well, I commend my colleague Rick Boucher, from southwestern 
Virginia, who serves on the Energy and Commerce Committee and worked in 
determined fashion to make improvements to the bill that we both 
sought. I am grateful that he has been so welcoming of my views and 
supportive of our interests--such as ensuring the availability of $10 
billion to advance carbon capture and sequestration technologies and 
other changes that are beneficial to the people of our neighboring 
districts.
  While this bill is greatly improved from the discussion draft that 
was first circulated in March of this year--and opponents were saying 
no even before that draft was written--more improvements are needed to 
gain my support.
  Coal does much more than keep the lights on in big cities across 
America. In southern West Virginia, it covers the mortgage, puts food 
on the family dinner table, and keeps open the doors of small 
businesses. While the emissions target in the early years of this 
program has been lowered from the 20% cap initially contained in this 
bill, there remains widespread concern that even the reduced cap--17% 
in 2020--is still too high and too soon to incentivize rapid 
development and deployment of carbon capture and sequestration 
technologies, so as to ensure coal mining jobs for the future. We must 
allow time for expensive clean coal technologies to come on line.
  These technologies are critical to lowering emissions across multiple 
sectors of our economy. And they are necessary for keeping hardworking 
coal miners in the jobs they want, providing power for the country they 
love.
  For these reasons, I cannot cast my vote for this bill.
  Mr. CALVERT. Madam Speaker, Families in communities across our nation 
continue to struggle through the most difficult economy most of them 
have ever experienced. Nationally, our unemployment rate is nearing 10 
percent. In California, the unemployment rate has soared to 11 percent 
and in some of the hardest hit portions of my congressional district it 
has reached almost 18 percent.
  Like many Americans, I am dismayed by the decision of the Democratic 
leadership to bring such an economically damaging bill to the House 
floor in the midst of these historically difficult times.
  Economic organizations and think tanks from around the country have 
studied the economic impacts of the bill before us . . . and the 
results are not good. A study conducted by the National Black Chamber 
of Commerce determined that by 2030 the Waxman-Markey bill will cut net 
employment by 2.5 million jobs--even after accounting for new ``green'' 
jobs. Similar studies by the Brookings Institution and the Heritage 
Foundation also project huge job losses.
  Ironically the Democratic leadership in Congress and the Democratic 
Administration have made job creation one of their biggest priorities 
this year. During the consideration of the stimulus bill we repeatedly 
heard claims that the bill would ``save or create more than 3.5 million 
jobs.'' As most Americans know, the bill has yet to deliver as 
promised. I think it is notable that as we consider another major piece 
of legislation both the Administration and Democratic leadership are 
eerily silent on their job creation predictions.
  The reality is the bill before us will kill jobs, weaken our economic 
security, and enacts punitive measures that will only make matters 
worse for families struggling to get by. I urge all of my colleagues to 
vote against this poorly conceived bill that is being pushed through 
with little to no time for debate or discussion.
  Mr. GARRETT of New Jersey. Madam Speaker, I rise in opposition to the 
so-called cap & trade legislation before us. While there are countless 
reasons to oppose it, including the millions of jobs that are expected 
to be lost, I wanted to take a moment to speak on the amendment that I 
offered to this legislation. More than 200 amendments were offered to 
this legislation in addition to my amendment, and all of them, with the 
exception of one, was rejected by the Democrat majority.
  My amendment would have stricken all sections of H.R. 2454 that deal 
with the regulation of derivatives. This bipartisan effort was 
supported by six cosponsors, including Democratic Reps. Mike McMahon 
and David Scott as well as FSC Ranking Member Bachus and several 
others.
  Despite lacking any jurisdiction and expertise, the Energy & Commerce 
Committee added sections to this bill imposing costly new regulations 
on this portion of our financial services sector. I think we can all 
agree that a broader discussion within Congress need to take place on 
these issues, including at the committees of jurisdiction where there 
is experience and expertise in dealing with them.
  Just one week ago, Congress received an outline of President Obama's 
financial regulatory reform plan, which includes suggestions for the 
regulation of derivatives. The Financial Services Committee has not yet 
had a chance to digest the President's proposal, nor has it fully 
debated this issue within the context of broader financial regulatory 
reform, which will continue to be the focus of our committee's work 
over the next several months.
  It is not appropriate to enact language that regulates a portion of 
the derivatives market, potentially in a manner that conflicts with 
later consensus on how to regulate the industry at large. Ninety-four 
percent of the 500 largest global companies use derivatives to manage 
risk and maintain stable consumer prices. Given the importance of these 
financial products, Congress needs to tread carefully as it looks at 
regulatory options for these markets. Over-regulation or improper 
regulation that might sound good politically could have major 
unintended negative consequences, not just for our financial markets, 
but for our broader economy.

[[Page 16720]]

  The sections that remain in this bill that deal with the regulation 
of our derivatives markets are but one of many reasons to oppose this 
massive and massively-flawed piece of legislation.
  Ms. SCHWARTZ. Madam Speaker, I rise today in support of the American 
Clean Energy and Security Act (ACES). This historic initiative will 
create jobs in new renewable energy industries and energy efficiency, 
reduce American dependence on imported oil, and decrease the greenhouse 
gas emissions that are causing global climate change.
  The growth of these new industries will enhance the ability of the 
United States to produce its own energy and reduce the need for oil 
imports from foreign countries. We currently import nearly 60 percent 
of our energy needs from abroad. This imbalance makes our country 
dependent upon foreign countries for the fuel that keeps our economy 
running. It is estimated that ACES will reduce U.S. oil consumption by 
2 million barrels per day by 2030.
  Growing our domestic clean energy industry and reducing our use of 
foreign oil will have an important tangible benefit--reducing the 
greenhouse gas emissions that are causing global climate change. The 
Nobel-Prize winning Intergovernmental Panel on Climate Change has 
determined that significant reductions in greenhouse gas emissions, 
like carbon dioxide, are necessary to mitigate significant 
environmental consequences. ACES meets this challenge by creating a 
framework to reduce U.S. emissions 83 percent below 2005 levels by 
2050.
  ACES accomplishes these goals while limiting costs to businesses and 
the consumer. The nonpartisan Congressional Budget Office has 
determined that implementing this bill would cost the average household 
about 48-cents per day. ACES also includes assistance for energy-
intensive manufacturing industries like steel, cement, and glass to 
ensure that these industries remain economically competitive in the 
global marketplace as we strengthen our environmental laws and 
transitioned to clean energy and greater energy efficiency.
  I am proud that this bill includes a provision I spearheaded that 
will require the Environmental Protection Agency Administrator to 
create a national strategy to reduce carbon emissions through biologic 
sequestration. Carbon dioxide can be absorbed from the atmosphere into 
plants, trees, and other vegetation through the natural process of 
photosynthesis. My provision would ensure that we utilize natural 
landscape and green infrastructure to maximize our ability to remove 
carbon from the atmosphere through a determined strategy for 
reforestation, improved agricultural practices, and urban greening.
  This important legislation defines new energy goals for our nation 
and enables us to lead the world towards a clean energy future. For 
businesses and families back home it identifies a way forward to not 
only reduce harmful carbon emissions but to create new economic 
opportunities, new ``green'' jobs, conservation and energy efficiency, 
and alternative, cleaner sources of energy. Together these actions will 
better ensure our nation's security, economy, and health. I urge my 
colleagues to vote ``yes'' on this important bill.
  Mr. GRIJALVA. Madam Speaker, I rise in support of the legislation 
before us today.
  As the Chair of the Subcommittee on National Parks, Forests and 
Public Lands of the House Natural Resources Committee, I have held a 
series of hearings on the impacts that climate change is having, and 
will have, on our lands, waters, and wildlife. In response, my 
congressional colleagues and I developed a bill to give state and 
federal natural resource managers the tools to respond and adapt to 
these impacts. That bill is included within the American Clean Energy 
and Security Act which I strongly urge my colleagues to support today.
  Any serious attempt to address climate change must include a focus on 
the management of our nation's natural resources. Our land, water, fish 
and wildlife resources are critical to public health and the American 
economy.
  These natural resources are also vulnerable to a wide range of 
physical, biological, economic, and social effects as a result of 
climate change. At the same time, public lands and resources represent 
some of the best opportunities we have for implementing natural 
resource adaptation strategies to help mitigate some of those effects.
  Unfortunately, the previous Administration pursued a ``Head in the 
Sand'' policy regarding climate change and, as a result, the gap 
between what we know about climate change, and what federal and state 
resource management agencies are doing about it, has never been wider.
  After the Natural Resources Committee held a series of hearings on 
the impacts that climate change is having, and will have, on our lands, 
our oceans, and our wildlife, several of my colleagues and I introduced 
H.R. 2192 to promote a proactive federal-state partnership to address 
the impacts of climate change on our nation's natural resources and 
provide the direction and the tools that resource managers will need to 
develop mitigation and adaptation strategies for our land, water, and 
wildlife.
  We are gratified that the Energy and Commerce Committee shares the 
belief that this is an important piece of the puzzle and has elected to 
include our legislation as part of the bill before us today.
  The bill establishes a Natural Resources Climate Change Adaptation 
Panel made up of Federal agencies responsible for managing our Nation's 
natural resources. The Panel's mission will be to foster the kind of 
interagency and federal-state cooperation and planning that is both 
critical in responding to climate change and, so far, sorely lacking.
  The Panel will be tasked with developing a comprehensive, national 
strategy for combating climate change. Once the national strategy is in 
place, each Federal agency with jurisdiction over natural resources 
will be required to translate that broader plan into a climate change 
response tailored specifically to their programs and activities. 
Furthermore, funding will be authorized to assist states in developing 
similar state-wide adaptation plans that lead to concrete, on the 
ground actions to address the impacts of climate change on the natural 
resources they manage.
  In addition, the bill will streamline, centralize and improve the 
collection and dissemination of climate-related scientific information. 
This provision will ensure that Federal climate research will be better 
funded, more aggressive and more easily available to land managers, 
policy-makers and the public.
  Finally, the bill will create a centralized database of geographic 
mapping information designed to identify significant wildlife habitat 
and migration corridors. Such areas must be included in any ecosystem-
level adaptation planning efforts.
  These efforts are belated--we cannot hope to reverse a decade of 
inaction immediately--but they are important tools and these provisions 
are an important step forward in developing a response to climate 
change that will protect the lands and waters owned, and deeply valued, 
by the American people.
  We have wasted valuable time when we should have been working to stop 
harmful global warming, but with this vote to rein in carbon emissions, 
we will take a big step toward joining the rest of the world in 
addressing mankind's impact on our environment. Our existence on this 
planet depends on our taking action now rather than later, and 
therefore, I urge passage of the legislation today.
  Mr. BACHUS. Madam Speaker, I rise in opposition to the Waxman-Markey 
bill.
  This legislation creates a new multi-trillion dollar market for 
Carbon Allowance Derivatives overnight, all without one hearing before 
the Financial Services Committee. This continues a disturbing pattern 
of conduct of passing sweeping legislative proposals without 
consideration of the consequences and ramifications.
  While Congress and financial regulators continue to work to determine 
how best to oversee existing derivatives markets, it is ill-advised to 
rubber stamp the creation of a brand new, hard to price, and convoluted 
Carbon Allowance Derivative Market. The new market would be open to 
potential abuse because it will be difficult for regulators to 
understand and monitor.
  Under the Waxman-Markey bill the government would issue allowances 
(carbon allowance permits) that allow companies to emit a certain 
amount of greenhouse gases. Companies that emit too much can buy 
allowances from companies that produce less than their limit. In 
addition to carbon allowances, there are carbon offsets which allow 
companies to emit greenhouse gases in excess of the federal cap or 
limit. They do this by investing in projects that cut emissions and it 
is anticipated that many of these projects will be in developing 
countries C.F.T.C. Commissioner Bart Chilton anticipates that overnight 
the bill will create a $2 trillion dollar market, which he describes as 
``the biggest of any commodities derivative product in the next five 
years.'' Robert Shapiro, a former undersecretary of Commerce in the 
Clinton administration and a co-founder of the US climate Task Force 
warns that ``we are on the verge of creating a new trillion dollar 
market in financial assets that will be securitized, derivatized, and 
speculated by Wall Street, like the mortgage-backed securities 
market.'' Mother Jones' Rachel Morris warns that without strong 
financial regulation of the market you could have abuses, over 
leveraging and ultimately collapse of the market. Democratic Senator 
Jeff Bingaman has described these offset projects as ``fraught with 
opportunity for game playing, which will be fully exploited, I'm 
sure.''

[[Page 16721]]

  Many of these projects will be created in developing countries. A 
clean coal project in China or India could be used for carbon offsets, 
as could a tree planting project in Brazil or Borneo. As much as China 
needs to clean up their environment, should Americans pay for it? 
Should a tree planting project in Borneo allow the discharge of more 
pollution in America? Many of these remote projects will be notoriously 
difficult to confirm and monitor. Even in America with a well-
established regulatory system we witnessed abuses in the subprime 
mortgage market. The derivatives market has the potential for even 
greater game playing in remote countries with questionable rule of law 
and little regulation.
  Michele Chan of Friends of the Earth says if not properly regulated 
the offset derivatives could become what she calls ``subprime 
carbon''--futures contracts that promise emissions reductions but fail 
to deliver and then become toxic or worthless. Already the financial 
markets and speculators are planning how to slice and dice them and 
sell them to investors. It sounds altogether too familiar--a brand new, 
hard to price, vast convoluted market of carbon derivatives. And if 
these warnings are correct, one that certainly could pose a systemic 
risk in the financial markets.
  If you liked what Wall Street did with the securitization of subprime 
mortgages, you'll love what they are going to do with carbon 
derivatives.
  Finally, ``cap and tax'' will have a devastating impact on my home 
state of Alabama. The bias against coal and the renewable energy 
mandates will force consumers in Alabama to buy expensive ``green 
power'' from other states, which will raise energy costs across the 
board. One study has projected that the typical family in Alabama could 
eventually see electricity bills rise by more than $1500 a year. Higher 
energy costs will make our manufacturers less competitive, and Alabama 
and the rest of our country will lose jobs to nations like China, 
Korea, and Mexico which have lower energy costs.
  This bill is bad for Alabama, bad for the U.S. economy, and doesn't 
even begin to solve the serious energy challenges facing our nation.
  I urge my colleagues to join me in opposing this legislation.
  Mr. STARK. Madam Speaker, I rise today in opposition to the American 
Clean Energy and Security Act (H.R. 2454). Global warming is real. Man 
causes it and it threatens nearly every aspect of life. We are right to 
act with urgency to end our nation's addiction to fossil fuels and 
combat global warming. But we cannot waste this opportunity by moving a 
deeply flawed bill that provides too much to special interests and too 
little to the environment and consumers. I cannot support the American 
Clean Energy and Security Act in its current form.
  This legislation continues the ``clean coal'' myth by providing at 
least $60 billion for pie in the sky projects that will only continue 
the destruction of mountains and waterways at the hands of coal mining 
operations. More importantly, the bill takes away a vital weapon in the 
fight to defeat new coal burning plants by repealing the EPA's current 
authority to regulate greenhouse gas emissions, including the emissions 
of individual power plants. The result will be a rush to build new coal 
powered plants over the next decade and then an intense lobbying effort 
to ensure that these plants are grandfathered in by the time the rules 
are supposedly set to tighten in 2020.
  The creation of a massive, trillion-dollar new carbon market should 
scare all of us. The new, highly complex carbon market will be ripe 
with opportunities for Wall Street speculation and manipulation. The 
Commissioner of the Commodity Futures Trading Commission estimates that 
the carbon market will consist of 180 million contracts within 5 years, 
making it the world's largest commodity and derivatives market. The 
subsequent market volatility will hurt consumers by ensuring that 
energy prices continue to fluctuate. Market volatility will also 
dissuade long-term investments in clean energy and efficiency. This is 
the scenario that has played out in the European Union, where prices 
have swung wildly and some power plants have actually switched back to 
coal due to the low cost of emissions permits.
  Many of these problems could have been dealt with through amendments 
that were brought before the Committee on Rules yesterday. One 
amendment that I cosponsored would have reigned in the carbon market by 
only allowing entities covered under the Cap and Trade program to trade 
allowances. This amendment would have greatly curtailed the ability of 
Wall Street to influence the carbon market and would have protected our 
economy from another financial meltdown. Unfortunately, this amendment 
was not allowed to come to the floor for a vote. I also cosponsored an 
amendment that would have continued EPA's current authority to regulate 
greenhouse gas emissions under the Clean Air Act. This authority would 
provide a backstop should the new cap and trade regime prove 
ineffective. Sadly, this amendment was also not allowed to come to the 
floor.
  I commend the emission reduction targets laid out in the legislation. 
I am not convinced, however, that these targets will be met in the near 
future due to the many loopholes and dubious offset provisions 
contained in the bill. This bill unfortunately continues the 
Congressional tradition of subsidizing the fossil fuel industry. Only 
this time it is cloaked in the disguise of environmentalism and the 
subsidies come in the form of free allowances, institutionalization of 
the ``clean coal'' fiction, and the gutting of EPA authority.
  We have the opportunity and the responsibility to confront 
catastrophic global warming with bold action. Congress should seize 
that opportunity by passing legislation that would end our addiction to 
fossil fuels, prove our leadership to the world, and build a foundation 
for long-term prosperity. This legislation falls short of these goals. 
Many have said that this vote is a historic one that we will be judged 
by. In my view, history will judge this legislation as a missed 
opportunity. I urge my colleagues to oppose the bill in its current 
form and work to bring a truly progressive bill to the floor.
  Mr. LANGEVIN. Madam Speaker, I rise today in strong support of H.R. 
2454, the American Clean Energy and Security Act. I thank our leaders 
who made this bill a priority, especially Speaker Pelosi, Leader Hoyer, 
Chairman Waxman, Chairman Rangel, Chairman Peterson, and Chairman 
Markey, who worked tirelessly to bring this bill to the floor today.
  I have long been an advocate for reducing harmful carbon emissions 
and investing in a clean energy economy. The path that we are on is 
unsustainable. Last year's spike in gasoline prices and home heating 
oil was only a small example of the challenges our nation faces due to 
our reliance on foreign oil. The effects of climate change are already 
beginning, and I believe that we must act now if we are to stop--and 
ultimately reverse--the damage done to our planet and our economy.
  I support this legislation because it will set our nation on a path 
toward an energy independent future. The bill increases the renewable 
energy standard to 20 percent by 2020, which means that more of the 
energy we all use at home will come from clean, renewable resources. It 
caps harmful carbon emissions that are damaging our environment and 
ecosystem through a responsible and transparent approach, reaching an 
overall reduction of 83 percent by 2050. With this reduction, it is my 
hope that we will be the first generation to pass on a healthier planet 
to our children and our grandchildren.
  The $90 billion investment included in this bill will help create 1.7 
million clean energy jobs throughout the nation, particularly in 
manufacturing industries as demand for construction of renewable energy 
components will dramatically increase. Increased funding for research 
and development of renewable technologies, including wind, solar, and 
wave energy, will drive American entrepreneurship and competitiveness 
to make the U.S. a global leader in clean energy development.
  This bill was also carefully written to ensure that consumers are not 
overburdened by any increase in cost. Allowances are provided to 
electricity, natural gas, and heating oil companies that must be 
redirected to their customers. Low-income families are given even 
further protections in the bill and will receive specific allowances in 
the form of monthly energy refunds. The Congressional Budget Office 
(CBO) estimates that protecting our nation through a cap on emissions 
would cost an average family $175 per year, or less than 50 cents a 
day, by 2020. Alternatively, if we fail to act and continue to rely on 
oil, energy prices per household are estimated to reach $3,500 
annually. Further, CBO has determined that the bill meets PAYGO 
requirements and will not increase the deficit.
  Lastly, it must be noted that our nation spends over $400 billion for 
foreign oil each year. The time has come to stop investing our 
taxpayers dollars overseas, and to bring them home to invest in clean 
energy jobs and a healthier planet for our citizens. By increasing the 
renewable energy standard, capping carbon emissions, and investing in 
the creation of domestic jobs, this bill is directing our nation 
towards a sustainable and economically viable energy future. I urge my 
colleagues to invest in the future of this great nation, and vote yes 
on the American Energy and Security Act.
  Mr. BERMAN. Madam Speaker, I rise in strong support of H.R. 2454, the 
American Clean Energy and Security Act of 2009.

[[Page 16722]]

  This groundbreaking legislation will help protect our environment and 
create an estimated 37 million jobs in the United States over the next 
20 years by significantly reducing greenhouse gas emissions, 
implementing a renewable electricity standard, providing incentives for 
the adoption of energy efficiency measures, and promoting renewable 
energy technology research and development.
  H.R. 2454 also provides assistance to developing countries to help 
them adapt to the effects of climate change, deploy clean energy 
technologies, and reduce emissions from deforestation.
  Some of the world's poorest countries--including those that have 
contributed the least to the problem of climate change--will suffer the 
most immediate and severe consequences of global warming if we don't 
take action to reverse it.
  Many developing countries face the threat of flooding, the loss of 
arable lands, and the spread of climate-related diseases, such as 
malaria and cholera.
  A recent World Bank study estimated that storm surges resulting from 
rising sea levels could threaten 52 million people and 29,000 square 
kilometers of agricultural land in developing coastal countries around 
the world.
  H.R. 2454 will help people in low-income countries prepare for and 
adapt to climate change by strengthening local planning capacity and 
promoting the development and implementation of national adaptation 
programs.
  This legislation also provides financial and technical assistance and 
leverages private sector involvement to mitigate the emissions of 
greenhouse gases in developing countries.
  This will help reduce the impact of climate change here in the United 
States and benefit the American economy by encouraging innovation in 
green technologies and the creation of high quality jobs.
  Finally, the bill will help reduce greenhouse gas emissions by 
helping low-income countries reduce emissions associated with 
deforestation.
  Madam Speaker, the programs on international adaptation, clean 
technology, forestation as well as provisions for international offsets 
will all require close collaboration between the Environmental 
Protection Agency, the United States Agency for International 
Development, and the Department of State.
  In international negotiations on framework agreements to carry out 
these programs, I expect the Department to continue to have 
responsibility to approve the initiation of such negotiations, 
consistent with current law and regulations.
  I also expect that USAID, which has significant expertise in dealing 
with a range of environmental activities overseas, will play a central 
role in planning and helping administer these critical programs.
  Madam Speaker, the international provisions in this legislation are 
crucial for the successful completion of climate change negotiations in 
Copenhagen later this year.
  They will demonstrate to the rest of the world that the United States 
is truly committed to working cooperatively with other nations to 
tackle the global challenges of climate change.
  I thank my good friends Chairman Waxman and Chairman Markey for 
working closely with me to develop and refine the international 
provisions in this important legislation, and urge all of my colleagues 
to vote yes.
  Mr. McCAUL. Madam Speaker, ``Electricity rates would necessarily 
skyrocket.'' That is a direct quote from President Obama describing his 
``Cap and Trade'' plan. I agree with the President. That is why we call 
it Cap and Tax. This is a failed European model that should not be 
imported into the United States. We've already seen the effects in 
Europe where household energy prices went up 25% and emissions were not 
reduced. This is the wrong bill at the wrong time. Imposing a national 
energy tax on the working families in my district who are already 
struggling to make ends meet is wrong. And who benefits from this? You 
guessed it, Wall Street, not Main Street.
  While I strongly support investing in alternative energy and green 
technology, I cannot support this bill.
  Overall, in my home state of Texas, energy costs will increase by 
$1.15 billion imposing an enormous tax each year on every Texas family. 
All of this for something that simply won't work.
  Companies that are not able to meet the cap will simply move their 
manufacturing facilities overseas to countries with fewer regulations. 
Nationwide, our country will lose around 2.5 million jobs and Texas 
alone could lose 277,000 jobs in the first year alone. Perhaps that is 
why the U.S. Chamber, the National Association of Manufacturers, the 
Farm Bureau, and dozens of other organizations oppose this plan.
  I continue to support the American Energy Act which increases our 
domestic energy supply by developing more of our resources here in the 
United States, investing in alternative fuels and offering incentives 
for better efficiency and conservation--without placing a greater 
burden on our families, our businesses and our economy.
  Mr. POSEY. Madam Speaker, I rise to express my strong concerns about 
the bill before us--a bill which no one has read. This morning members 
of Congress were told about the addition of 309 pages that were added 
to this bill early this morning. No one has read it.
  Why the rush? Why does Congress have to pass this bill today, before 
everyone can read it and understand what this new language is doing? 
When Congress did this with the stimulus bill earlier this year it was 
discovered after passage of that bill that it contained bonus payments 
for AIG employees. But this bill, affecting every segment of our 
economy, has much broader applications. We and the American people have 
a right to know what is in this bill, how it will affect the American 
people, and what impact it will have on our economy. Nobody knows that 
this morning. We do not even have a cost estimate on this latest 
version of the bill from the Congressional Budget Office (CBO). No one 
knows what it will cost. My rule is that if you are not going to give 
Members of Congress the time to read the bill, a cost estimate of the 
bill, and an ability to understand its impact on the taxpayers and 
American businesses, I'm going to vote no.
  Supporters of the bill claim that it will only cost the average 
American $175 per year. This is a fatally flawed estimate for three 
reasons: (1) this figure is derived from a selective reading of the CBO 
cost estimate, (2) 3 days after the CBO issued their cost estimate 300 
additional pages were added to the bill, and (3) at 3 a.m. last night 
another 309 pages were added to the bill. This bill has grown by nearly 
70% since CBO's cost estimate was prepared.
  The CBO estimate has serious deficiencies. In fact if you read the 
entire CBO estimate you would find that they highlight the 
deficiencies, deficiencies that are being conveniently ignored. The 
most critical flaw is that CBO picked a year as the basis for their 
estimate that is before the most costly parts of the bill take effect. 
This excludes hundreds of billions of dollars from the cost estimate. 
The footnote on page 4 of the estimate says that they exclude from the 
costs estimate the ``decrease in gross domestic product (GDP)'' 
resulting from the bill. Most estimates conclude that it will result in 
$1-$2 trillion in lost economic activity in the U.S. translating into a 
loss of over 2.5 million jobs. The CBO fails to incorporate tens of 
billions of increased costs to the states which will be passed on 
through higher state taxes. CBO lists a number of other cost estimate 
omissions.
  When you factor in the deficiencies of the CBO estimate most analyses 
put the cost estimate at between $750 and $3100 per year. Washington 
has a habit of underestimating the cost of legislation. They are doing 
so again today. That's why this bill was significantly changed last 
night and rushed to the floor before Members of Congress have had a 
chance to read the bill and understand what the changes do.
  This 1200-plus page bill started out as legislation aimed at 
improving the environment but it has become a means of raising money to 
pay for larger, more intrusive government while having little impact on 
the global environment.
  The idea behind ``Cap and Trade'' is to purposely increase the cost 
of energy that is produced using fossil fuels like natural gas, coal or 
petroleum. Nearly 85% of electricity across the U.S. is generated using 
these sources of fuel. The price of everything you buy will go up, from 
gas to food, because there will be a hidden national energy tax built 
into the price of everything.
  Senator Cardin (D-MD) told the Washington Post that, ``This is the 
greatest revenue generating [read tax] proposal of our time.'' This 
bill moves money from the family budget to Washington.
  Estimates are that this bill will have a negligible effect on the 
global environment. It is estimated that if enacted, this bill will 
lower the global temperature two-tenths of one percent. This is 
equivalent to the annual fluctuation in global temperatures. Also, this 
fails to acknowledge the fact that China, India and the rest of the 
developing world are exempt from such regulations and their emissions 
will far exceed any reductions that result from this bill.
  This costly national energy tax will put American products at a 
competitive disadvantage and further erode the ability of the American 
worker to compete with China, India and the rest the developing world. 
The result will be the loss of millions of jobs as more businesses move 
to countries that will not impose

[[Page 16723]]

these caps on their citizens. Businesses that otherwise might have 
built facilities in the U.S. will instead open up factories in 
countries that are exempt from these regulations. It's no wonder China 
has called for the U.S. to pass this energy tax bill. With a national 
unemployment rate nearing 10%, it's estimated that this tax will cost 
Americans another 2.5 million jobs.
  I oppose this plan and will vote against it because it is not good 
for the American worker, small businesses, seniors on fixed incomes, or 
families struggling to pay their bills and mortgages. Washington 
doesn't need more of your money, it needs to control spending. Europe 
adopted a similar plan several years ago and it forced jobs to leave 
Europe, caused electricity prices to skyrocket, and they have little to 
show for the costs. It's all pain and no gain. Check out the non-
partisan Tax Foundation's online energy tax calculator 
(www.taxfoundation.org/capandtrade) to figure out how much it may cost 
you.
  Finally, it is a sad day for the Congress and the American people 
that the Speaker chose to rush this bill through the Congress without 
an open debate and amendment process. Members of Congress asked that 
224 amendments be allowed to be considered to this bill. Unfortunately, 
the Speaker allowed only one amendment to be offered. Among the 
amendments denied were one to: (1) suspend the bill if gas exceeds $5 
per gallon; (2) suspend the bill if electricity prices increase more 
than 10%; and (3) suspend the bill if unemployment exceeds 15%. These 
and many more amendments were reasonable and worthy of consideration. 
They should have been allowed, as they are in the best interest of the 
American people.
  Again, I rise in strong opposition to this bill and urge my 
colleagues to vote down this bill. It will further harm our economy and 
slow our economic recovery.
  Mr. PAYNE. Madam Speaker, today I rise on behalf of the 1 billion 
people who live on less than $1.25 a day and who will most acutely feel 
the impacts of climate change.
  At first glance, climate change is a lot about numbers--temperature 
rise of 2 degrees, 450 parts per million, a 25-40 percent reduction in 
greenhouse gas emissions, one percent of allowances. The list goes on.
  However, climate change is more than science and numbers. At the end 
of the day, climate change is about people. Climate change is happening 
far more rapidly than first thought. For the world's poor the climate 
crisis is not looming on the horizon. It is happening today. The 
impacts are hitting the world's poorest first and worst--those least 
responsible for climate change.
  Poor communities--individuals eking out an existence on less than 
$1.25 a day--are the hardest hit and have the fewest resources to 
adapt. Harsher climate conditions mean these vulnerable communities are 
facing more severe, more frequent, and more intense floods, droughts, 
and cyclones--leading to natural disasters and major disruptions in 
agricultural growing seasons. Climate change is increasing malnutrition 
as agricultural productivity declines. In Africa, agricultural 
productivity is predicted to decrease by as much as 50 percent over the 
next decade. A quarter billion people will be facing water scarcity. 
The United States will not be isolated from these events. If left 
unabated, the spillover caused by climate change will be visited upon 
U.S. shores.
  As resources like water and arable land become scarcer, outbreaks of 
conflict, mass migration, and refugee crises will rise. A recent report 
released by CARE, UN University, and Columbia University's Center for 
International Earth Science Information Network reveals that climate 
change is expected to spur human migration and displacement on a scale 
never before seen. According to the International Organization for 
Migration, as many as 200 million climate migrants may be forced to 
cross borders by 2050.
  One man from Niger interviewed for the study said: ``I have been 
suffering from the rain water shortage, which made the river very 
shallow and decreased my fish production, which had negative 
implications on my income. If the situation does not improve, I might 
leave for another country like some of my friends and relatives did; 
they left for Nigeria and Burkina Faso and settled there.'' Left 
unchecked, climate change will force him, and hundreds of thousands 
like him, to migrate from home.
  These negative impacts will be even greater on women and girls. As 
primary family caretakers, food providers, and health care providers, 
women will be forced to walk further to fetch ever scarcer water. They 
will have to work harder to squeeze a harvest out of the earth to feed 
their families. As the burden increases, children will be pulled out of 
school--the girl child will undoubtedly be first.
  Passing this bill is imperative. It begins our journey of tackling 
climate change. It begins to assist poor communities in their efforts 
to adapt to climate impacts. The challenge of climate change is not 
insurmountable. We know adaptation works--and it can be fairly simple--
though it can also require substantial resources. Development 
assistance organizations like Oxfam and CARE are allies in this 
struggle. For example, Oxfam is working with communities in El Salvador 
to plant mangroves as a natural coastal buffer to protect against 
severe storms. CARE is partnering with women in Bangladesh who 
identified duck rearing as a viable adaptive alternative to rearing 
chickens, since chickens were getting wiped out in increasing flood 
disasters.
  The reality for poor vulnerable communities on the receiving end of 
the effects of climate change is that the situation is dire. The least 
developed countries face the brunt of the impacts but contribute less 
than half a percent of global greenhouse gas emissions. Climate change 
is not something of the future, the impacts are already happening. For 
over 100 of the countries most vulnerable to the impacts of climate 
change, international adaptation will be the key that unlocks their 
commitment to a global agreement on climate change.
  Climate change is a study of injustice--those hardest hit by climate 
change are the least responsible for it. As a global leader, the U.S. 
has a critical role to play: our leadership can help bring other 
countries along--we simply cannot tackle climate change alone. As a 
global problem, climate change requires a global solution based on a 
shared sense of community. That solution starts here with this bill.
  My esteemed colleagues, I call upon you to pass this bill that will 
begin to provide President Obama with some of the tools he needs to 
conclude a global climate agreement. While we might focus on the 
numbers in this bill, let us remember that this issue is really about 
people everywhere. People matter. The poor matter. Their livelihoods 
matter. Their survival matters. This bill marks a historic beginning of 
putting the U.S. back in the fore of global leadership on climate 
change. Thank you.
  Mrs. CHRISTENSEN. Madam Speaker, the American Clean Energy and 
Security Act of 2009 is about the future. All the decisions that we 
know must be made, that we have put off for far too long on energy 
independence, climate change and retooling our economy for the 
industries of the future must be made now.
  As this bill was crafted, I know that we were careful in making sure 
that all the regions of our country, from the coal producers, to the 
oil producers, to the environmentalists, to the farmers, to the climate 
change experts to those concerned about costs and the transition to 
green jobs were heard from and our committees and membership worked 
hard on a bill that will be the first foot forward to the goals that we 
want to achieve for the 21st century.
  While this bill is in no way a panacea to the myriad of issues before 
us, it certainly is a progressive step towards creating clean energy 
jobs, achieving energy independence, reducing global warming and 
slowing climate change.
  As a representative of one of the offshore territories of the United 
States, I would reiterate that the U.S. territories, like other 
distressed economies around the Nation, stand to be disproportionately 
affected by the impact of climate change. We are also 
disproportionately dependent on diesel for power generation and 
vulnerable to its shifting costs.
  On the other hand our geography and natural resources have the 
potential to promote and utilize a diverse portfolio of renewable 
energy options. I am proud that my colleagues have recognized this and 
that this legislation contains language that will help us prepare for 
the coming challenges and the shift to a greener economy.
  Madam Speaker, The American Clean Energy and Security Act undoubtedly 
responds to the call of countless citizens who have clearly articulated 
this generation and this Congress must invest in renewable energy, 
green jobs, clean technology, and adaptation strategies--domestically 
and internationally--to buffer the ramifications of climate change 
while at the same time ensuring that the cost will not be prohibitive 
to poor and middle income Americans.
  I am proud that we are responding to the President's vision and 
mandate to meet our country's climate and energy security needs, in the 
near future and beyond.
  We have accomplished an amazing feat by arriving to where we are 
today. I implore my colleagues here today to put politics aside and 
keep the interest of the American people at heart throughout this 
process.
  Let us make this a truly historic day as we hold true to the 
commitment of leading the

[[Page 16724]]

world into an economy of 21st century clean technology and industry.
  Mr. GRAVES. Madam Speaker, I rise today in strong opposition to the 
energy tax recklessly being forced through the legislative process only 
to harm small business owners, farmers, and families in Missouri.
  As a 6th generation farmer I can tell you that it is an extremely 
energy intensive practice. Sixty-five percent of a farmer's costs are 
dedicated to electricity, fuel, fertilizer, and chemicals; even a 
slight increase in costs would have a damaging effect on farmers.
  When it comes to rising fuel prices, we farmers drive trucks because 
we have to haul stuff. I would challenge any of my colleagues to come 
to Missouri and try doing farm chores in a Prius.
  Those claiming this bill benefits agriculture don't know a thing 
about the business. Agriculture producers are price takers on both ends 
of the equation. It is one of the few industries in the world that 
purchases its inputs at retail to sell its end product at wholesale.
  Farmers have very little ability to pass their own costs onto their 
customers and even those costs that agriculture producers can pass on 
will mean only one thing: higher food prices for American families.
  Rising food prices will be an indirect tax imposed on American 
families by this Cap and Tax bill and its effects won't just be 
confined to agriculture. Business everywhere will be confronted by a 
new dueling reality of seeing their own energy costs rise and the 
disposable income of their customers fall. All this can accomplish is 
to restrain future economic growth and lead to long-term joblessness.
  That is if there are any jobs left. None of the regulations or 
increased costs in this bill will be shouldered by our trading partners 
and competitors. How can we expect our businesses to remain competitive 
and create jobs when we are imposing new taxes not only on those same 
businesses, but their customers as well?
  Let's be honest with ourselves. This legislation is nothing more than 
a thinly veiled attempt to address climate change, while its actual 
goal is to direct more taxpayer dollars to the government coffers to 
fund a big government agenda, including the federal takeover of health 
care.
  Today I strongly urge my colleagues to stand with me. It is 
irresponsible of Congress to use taxation as an answer to our nation's 
challenges. Voting against this bill will demonstrate your willingness 
to work together towards real energy solutions for our future and our 
children's future.
  Mr. TONKO. Madam Speaker, today I come to the floor to urge my 
colleagues to support H.R. 2454, the American Clean Energy Security 
Act.
  As you know, I represent a state that has been a leader in the nation 
when it comes to renewable energy standards and energy efficiency 
activity. New York was the first state in the country to adopt a state 
renewable energy standard and is currently ranked as one of the most 
energy efficient states per capita in the nation.
  I am proud to say H.R. 2454 will allow New York to continue these 
successful programs and push us even further in a positive direction. 
Working with, and on behalf of, the New York delegation, I was able to 
work with Chairman Waxman and Chairman Markey to include language which 
allows states like New York to have the flexibility to be in control of 
their own compliance. This flexibility is vital if New York is to 
continue its great progress in renewable energy and energy efficiency 
activities. This bill allows New York State to build upon a strong 
record of demand reduction. Otherwise, a commitment of several years 
would be required to set up a new system in our state with its proven 
results.
  In addition to the flexibility language, the bill includes provisions 
allowing market transformation initiatives to count towards the energy 
efficiency standard. It also addresses the issue of transportation 
emissions and transportation planning and makes it consistent with 
current state policy. Finally, the bill includes an improvement that I 
recommended concerning efficiency of natural gas turbines. H.R. 2454 
creates a $65 million competitive grant program specifically for 
research and development of more efficient natural gas turbines used 
for power production. The goal of the program would be to raise the 
efficiency of these turbines to 65 percent. Currently, the most 
efficient turbines operate at 60 percent. A one percentage point 
improvement in efficiency alone, applied to existing turbines, would 
reduce CO2 emissions by 4.4 million tons per year and 
provide fuel savings of more than $1 billion per year.
  The innovation and the technology advancement that this bill aims to 
promote will see benefits for future generations. As we did during the 
Space Race so many years ago, we must turn towards innovation and 
leadership on the energy front to lead the world again. This is a 
global race for clean, green energy that we cannot afford to lose.
  Madam Speaker, with the collective energy of the President and the 
Congress, this bill will create new and enduring policies which will 
promote cleaner, more efficient, and more independent sources of energy 
that will positively influence all of America's energy demands as well 
as jobs and career paths of the future. I urge my colleagues to join me 
and vote in favor of H.R. 2454.
  Ms. DeLAURO. Madam Speaker, I rise in support of the American Clean 
Energy and Security Act--a historic step forward to revitalize our 
economy and get America running on clean energy.
  There is a global race underway to develop clean energy technologies. 
We have the innovation and manpower to take the lead--but we will not 
get there unless we muster the political will to keep our nation 
competitive. This bill makes sure that everyone benefits from the 
millions of jobs this bill will create through a Green Construction 
Demo Project and additional Green Jobs Act funding to train workers 
with the new skills they will need to repower and rebuild this nation.
  This bill also makes the U.S. more energy independent by investing in 
energy efficiency, including for consumers of natural gas, home heating 
oil, and propane. We know that comprehensive energy efficiency programs 
can help households save money on energy. I thank the Chairman for 
providing states with greater flexibility to use allowances under the 
SEED Program to expand existing cost-effective efficiency programs. And 
for including a provision I cosponsored with my colleague Rush Holt, to 
jumpstart important research on consumer behavior, energy conservation 
and efficiency. Moving forward, I hope we will strengthen the combined 
energy efficiency and renewable energy standard, to maximize efficiency 
and investments in clean technologies like wind, solar, geothermal, and 
biomass.
  Madam Speaker, this bill is a significant step towards a better 
future, and a major break from the past eight years of ignoring our 
energy crisis. For the first time, it would create a system of clean 
energy incentives designed to jumpstart the economy and reduce the 
carbon pollution that causes global warming.
  Make no mistake--the effects of global warming are visible here and 
now. In my home state of Connecticut, global warming is a threat to our 
health, our wetlands, our lobster fisheries, and our economy. This bill 
is our chance to mitigate that threat--a chance that will not come 
again soon.
  Future generations are counting on us to do the right thing today--to 
set our country on a path towards a cleaner, more prosperous future. I 
urge my colleagues to support this bill.
  Mrs. MALONEY. Madam Speaker, today, our nation takes a historic step 
toward a clean energy economy. The American Clean Energy and Security 
(ACES) Act will revolutionize American energy policy, combat climate 
change, and provide a unique opportunity to revive our economy and 
create millions of clean energy jobs.
  Some key provisions of the bill include a requirement for electric 
utilities to meet 20 percent of their electricity demand through 
renewable energy sources and energy efficiency by 2020, a cap-and-trade 
global warming reduction plan designed to reduce economy-wide 
greenhouse gas emissions 17 percent by 2020, and a new building 
efficiency standard requiring new buildings to be 30 percent more 
efficient by 2012 and 50 percent by 2016. These and other provisions 
will encourage new renewable requirements for utilities, studies and 
incentives regarding new carbon capture and sequestration technologies, 
energy efficiency incentives for homes and buildings, and grants for 
green jobs.
  In my home state of New York, clean-energy investments will create 
tens of thousands of jobs. A total of $150 billion in clean-energy 
investments across the country is estimated to result in about $10 
billion in investment revenue and 109,000 jobs in New York State. These 
additional jobs in the New York labor market would have brought the 
state's unemployment rate down to 4.3 percent from its actual 2008 
level of 5.4 percent.
  In addition to creating millions of new jobs, the ACES Act will make 
our nation more energy independent. Under this legislation, we can 
significantly reduce our dependence on foreign oil by promoting 
renewable energy, including wind, solar, geothermal, and biomass 
energy. New clean energy and energy efficiency technologies, along with 
more efficient vehicles, will also help reduce our need for oil.
  Now, you'll hear some say that this bill will tax individuals for 
using energy. The truth is that the energy-efficiency and consumer 
protection provisions in the ACES Act will actually

[[Page 16725]]

cut the electricity bill for an average New Yorker by around $5.60 
every month. In these tough economic times, the ACES Act is both 
environmentally sound and economically responsible.
  I thank Chairmen Waxman and Markey and Speaker Pelosi for their 
leadership in negotiating this important bill, and I am pleased to vote 
in favor of it.
  Mr. CASTLE. Madam Speaker, my priorities, as I represent Delaware in 
the U.S. House of Representatives today, begin with the economic 
opportunities and security for all who live here. We are facing serious 
challenges in both areas. With state budget shortfalls, rising 
unemployment and stagnant growth in many of the industries on which we 
typically rely-- new ideas and bold strategies for the future are 
required. Simultaneously, our Nation's military is spread thin across 
the world in an effort to confront those who seek to do us harm. One 
major threat to our security and theirs is the current reliance we have 
on foreign energy sources.
  Nations around the world are surging ahead with emission reductions 
and developing new energy technologies. The United States should be on 
equal footing, if not leading this effort to remain competitive.
  The recent vote in the U.S. House on the American Clean Energy and 
Security Act was on whether to pursue these new strategies, or hold on 
to the status quo. I supported the legislation because it is my belief 
that we cannot turn away from the opportunity to create new jobs and 
reduce our dependence on foreign sources of energy. With offshore wind, 
fuel cells, and solar energy initiatives, Delaware is poised to lead 
such innovation and create new jobs in these important areas while 
protecting the tourism industry and our very own coastline. We must 
live in the present but look to the future, and focus on strengthening 
the economy by driving advancements in industry and new business growth 
in Delaware. Such a market-driven solution, according to the Center for 
American Progress, is estimated to bring a net increase of about $460 
million in investment revenue and 6,000 jobs to our state.
  The real struggle I faced in whether to support this legislation is 
the cost of implementing new energy policies and addressing greenhouse 
gas pollution. I worry about the estimates that utility costs for all 
of us may increase, but I also agonize about the cost of doing nothing. 
One estimate, done by M.J. Bradley & Associates, using the Energy 
Information Agency, and EPA analysis, reflects that the average monthly 
bill in Delaware would increase by $3.00. To prevent increases in 
energy costs, a portion of the allowances will flow directly back to 
low- and moderate-income families through tax credits, direct payments, 
and electronic benefit payments.
  Clearly, any rate hike is going to hurt and I continue to work to 
ensure that we have measures in place to mitigate the impact on all 
income levels. Several colleagues and I worked to include an amendment 
to expand the financial tax credit relief for middle-income families, 
but such an amendment was blocked from consideration. I plan to pursue 
this change in negotiations with the Senate. I also believe that so 
many new energy efficiency measures will simultaneously reduce our 
energy usage and lower the cost of our utility bills. Under this 
legislation, revenues will be reinvested from the market back to 
consumers, energy research and development, and job-creation measures.
  The legislation establishes a system where greenhouse gas emissions 
are limited, and where emissions allowances are auctioned by the EPA 
and bought or sold among polluters.
  Delaware is already participating in a regional cap-and-trade program 
called the Regional Greenhouse Gas Initiative (RGGI). This bill will 
return revenue to all states, and in fact, will bring more to the state 
than RGGI, in order to promote the same types of energy efficiency and 
renewable energy programs.
  The legislation also requires that 20 percent of energy produced by 
electric utilities come from renewable resources and energy savings by 
2020, still below Delaware's own standard. A robust renewable 
electricity standard is the most important policy tool we have to make 
sure new energy projects utilize American-made components manufactured 
by American workers, and I believe we should strive to strengthen the 
national standard.
  The coal resource of the U.S. is abundant and the bill creates new 
programs designed to promote carbon capture and sequestration, and sets 
new emissions standards for coal-fired power plants. This bill also 
supports modernizing of electricity infrastructure, including smart 
grid technologies. And, to aid the U.S. auto manufacturers, the bill 
aims to assist in the development of improved battery technology and 
plug-in electric vehicles.
  Major technological advancements and tax incentives are already 
positively influencing the advancement of the wind, solar, fuel cell, 
and biomass industries right here in Delaware. Green jobs, which could 
be those involved with electricity generated by wind, those that 
produce energy-efficient goods and services like mass transit, or those 
that install energy-conserving products like retrofitting buildings 
with thermal-pane windows, fuel cells, and solar--are key to the 
success of a new energy economy. Much work has been done voluntarily 
over the last several years to reduce greenhouse gas emissions and I 
was glad to see that the bill takes steps to recognize these early, 
voluntary actions by industry leaders.
  In speaking with Governor Marken, we agree that this legislation will 
strengthen our domestic economy through innovative and sustainable job 
creation. I have also heard from leading Delaware businesses who 
believe in the opportunity of transforming to a clean energy economy. 
Ion Power said: this bill ``will make a real difference for America, 
and my business.'' Eclipse Solar has said: ``. . . we also know that 
clean energy is a great way to make money; supporting solar energy and 
other renewables will boost our economy and help create more jobs.'' 
Delaware Technical and Community College offered: ``. . . the College 
is developing an Applied Energy Education Center that will connect 
Delawareans to new ``green'' jobs by developing Delaware's green 
workforce and enabling citizens and businesses to reduce their energy 
costs through increased energy efficiency, conservation, integration, 
and management.'' Bluewater Wind wrote: ``By taking bold, concrete 
steps to address climate change and creating a new national Renewable 
Electricity Standard (RES), passage of the Waxman-Markey bill will spur 
hundreds of thousands of new jobs in America's growing renewable energy 
industry.''
  The agriculture sector plays a vital role in Delaware's economy. I 
was pleased to support U.S. House Agriculture Chairman Peterson's work 
to ensure that the interests of the agriculture community were 
represented in the legislation, including that the U.S. Department of 
Agriculture will be in charge of working with farmers on the portion of 
the offset program that involves generating offset credits from U.S. 
farms and forests.
  Complex and detailed proposals must always be weighed thoughtfully 
and carefully. Ultimately, challenging economic times demand that we 
look to the future, not cling to the past. Leading experts differ on 
the economic impact that this legislation will have on each of us and I 
will remain closely engaged in efforts to reduce any cost increase 
passed through utility bills. This may not be a silver bullet for 
turning our economy around overnight. However, I am confident that we 
must drive innovation, research and market-based strategies to 
strengthen our immediate economic outlook and instill optimism for 
tomorrow.
  Mr. HARE. Madam Speaker, I rise today in support of H.R. 2454, the 
American Clean Energy and Security (ACES) Act. While this bill is far 
from perfect, it truly is the result of multi-region and multi-industry 
compromise, and I believe it will go a long way toward reducing our 
nation's carbon footprint.
  I commend Energy and Commerce Committee Chairman Henry Waxman and 
Energy and Environment Subcommittee Chairman Edward Markey for their 
efforts in putting together this comprehensive, global climate change 
legislation. I also commend my friend from Virginia, Representative 
Rick Boucher, for working tirelessly to ensure that coal-producing and 
coal-consuming states, like my home state of Illinois, can transition 
to renewable resources in a realistic timeframe.
  One of the strongest assets of the ACES Act is its potential to 
significantly expand the green jobs sector all across America, creating 
millions of good-paying jobs that cannot be outsourced. Through federal 
investment in the production of biofuels and manufacture of wind 
turbines, among other renewable energy technologies and equipment, it 
is estimated that 3,700 new jobs will be created as a result of this 
bill in my congressional district alone.
  Additionally, the ACES Act protects consumers from steep hikes in 
utility rates. I am pleased to see that the revenue gained from the 
allowance process in the bill would partially go toward those Americans 
most vulnerable to increases in their electric bills. With five 
separate programs to protect ratepayers from rising costs for natural 
gas and heating oil, I have full confidence that the residents of West 
Central Illinois will not experience significant hikes in their utility 
bills as a result of this legislation. In fact, the non-partisan 
Congressional Budget Office estimates that for the average household, 
costs from the ACES legislation would only be about 39 cents per day--
less than the cost of a postage stamp.

[[Page 16726]]

  I also appreciate that the bill takes into consideration rural 
agricultural districts like mine. By broadening the definition of 
``renewable biomass,'' allowing the Department of Agriculture to 
oversee carbon-offset projects in rural areas, and not including carbon 
emissions from indirect-land use, this bill would allow the ethanol 
makers, food producers, and agricultural equipment manufacturers to 
continue doing what they do best, while reducing greenhouse gas 
emissions at the same time. While I would have preferred to have seen 
in the bill a portion of the pollution allowances go to the food-
processing agri-business sector, in addition to allocating ``early 
action credit'' allowances to those companies who have already taken 
voluntary greening measures to reduce their greenhouse gas emissions, I 
will vote in favor of this bill with the hope that these concerns will 
be addressed by the Senate or during conference committee.
  As a comprehensive energy bill, the ACES Act also provides for the 
expansion of new nuclear generating units, and gives bonus allowances 
to those fossil-fuel units taking advantage of on-site carbon capture 
and sequestration (CCS) technologies. I am pleased that the bill 
invests approximately $60 billion in CCS, the next generation of clean-
coal technology which reduces harmful emissions by capturing and 
storing them, thereby preventing them from reaching the atmosphere.
  Rural Electric Cooperatives provide much of the power to my 
constituents. As such, I am happy that the ACES legislation allocates a 
portion of the total free emission allowances to rural co-ops. This 
important provision equitably distributes free allowances between 
Midwestern states and coastal states, as well as prevents excessive 
increases in energy costs for my constituents.
  Finally, I would like to thank my friends from Iowa, Representatives 
Leonard Boswell and Bruce Braley, for working to include a provision 
which adds renewable fuel pipelines to the list of projects eligible 
for the Department of Energy Loan Guarantee Program. As the 
representative of a district that produces corn ethanol, biodiesel, and 
other biofuels, the creation of renewable fuel pipelines would create 
thousands of local jobs and guarantee efficient and affordable 
transportation of Midwest energy to the parts of the U.S. which consume 
the most fuels.
  The American Clean Energy and Security Act is broad in scope, 
focusing on necessary improvements in clean energy and energy 
efficiency. I hope my colleagues realize that the cost of inaction will 
be much, much greater if the United States fails to enact a bill that 
reforms our energy and environmental policies. I encourage its fast 
passage as it will create millions of jobs, stimulate our economy, and 
protect our environment.
  Mr. WAXMAN. Madam Speaker, today, as we discuss comprehensive energy 
and climate legislation, our focus is on how we can lower the carbon 
footprint of electricity generation.
  As we move to a clean energy future, however, the country still needs 
to make progress in reducing sulfur dioxide, nitrogen oxides, and 
mercury emissions, air pollutants that cause acid rain, ground-level 
ozone, particulate matter pollution, and mercury contamination.
  In developing their strategies to reduce carbon dioxide, electricity 
generators will still need to take into account the need to reduce 
emissions of these conventional air pollutants.
  For many years, Congressman McHugh has worked to tackle the problems 
created by emissions of such pollutants. In particular, he has shown 
great leadership in his work to address acid rain and mercury pollution 
from power plants, as demonstrated by his bill H.R. 1841, the findings 
of which persuasively demonstrate the case for a strong control program 
for sulfur dioxide, nitrogen oxides and mercury emissions from power 
plants.
  Putting in place strategies to reduce carbon dioxide emissions will 
also help address these problems. Mr. McHugh's amendment to the 
American Clean Energy and Security Act does important work by making 
this link explicit.
  It directs EPA to study what effects strategies and technologies that 
will reduce emissions of carbon dioxide will have on emissions of 
conventional pollutants like SOx, NOx, and 
mercury.
  Further understanding of this interaction between carbon control 
strategies and the reduction of criteria pollutants will be of clear 
benefit to policymakers, air quality planners, and the power sector.
  Adopting approaches that reduce both types of pollutants would 
represent a major step forward towards cleaner coal use, and Mr. 
McHugh's amendment will result in important information on what we know 
now, and what steps should be taken next, in order to achieve this 
objective.
  I also wish to address the purpose of the intellectual property 
protection provisions in Title IV, Subtitle D, which are to ensure that 
funding for international climate change mitigation promotes robust 
compliance with and enforcement of intellectual property rights for 
clean technology. The intent of the provisions is to safeguard 
intellectual property rights in order to support investment in the 
research and development necessary to design and deploy new 
technologies. For the purposes of this section, clean technologies are 
any technologies or services relating to the qualifying activities 
enumerated in section 445.
  Section 446 would prohibit bilateral assistance for the benefit of 
qualifying activities that would undermine compliance with and 
enforcement of intellectual property rights for clean technology as 
provided in the World Trade Organization's Agreement on Trade-Related 
Aspects of Intellectual Property Rights (TRIPS) and applicable 
bilateral Free Trade Agreements. With regard to multilateral 
assistance, the provision directs the President to seek to ensure that 
any climate change mitigation assistance disbursed through a 
multilateral framework not be permitted for any activity that on its 
own or in connection to a related activity would undermine intellectual 
property rights for clean technology, as provided in TRIPS. The 
objective is to prevent funds from being spent to support the export of 
a technology where the underlying patent or other intellectual property 
rights would be undermined as a result of the project. The objective is 
also to ensure that decisions about individual projects also scrutinize 
whether related activities have undermined intellectual property rights 
for clean technology. For example, a funding decision for a project 
involving the export of wind technology should take into account 
whether there is a history of intellectual property violations in 
similar projects involving solar energy technology or technology to 
support capture and sequestration of carbon dioxide emissions.
  An annual assessment of compliance with and enforcement of 
intellectual property rights would be made by the interagency group 
established in section 443.
  Madam Speaker, I also wish to address some unwarranted concerns that 
have been raised by misreadings of provisions in H.R. 2454.
  In new Section 811 of the Clean Air Act, the Administrator is 
required to publish an inventory of categories of stationary sources 
that includes each source category that is responsible for at least 10 
percent of the uncapped methane emissions in 2005. The provision goes 
on to provide that the inventory shall not include sources of enteric 
fermentation. Thus, emissions from enteric fermentation shall be 
included in the calculation of uncapped methane emissions in 2005, but 
enteric fermentation shall be not listed as a source category on the 
inventory.
  I would also like to clear up some confusion on the covered entity 
definition in new section 700(13)(C) of the Clean Air Act. Under this 
provision, an entity that produces or imports any of the specified 
greenhouse gases for sale or distribution in interstate commerce in the 
specified amount is a covered entity. It has been suggested that 
somehow this provision might be interpreted so that beef producers 
would be covered because they produce beef for sale or distribution in 
interstate commerce because, in the production of beef, they produce 
manure as a byproduct that is not intended for sale or distribution in 
interstate commerce. This would be an impermissible reading of section 
700(13)(C).
  In addition, I would like to clarify that, contrary to claims made by 
the opponents of the building efficiency provisions, the building 
labeling provisions of Section 204 establish a voluntary program and 
are not mandatory requirements. This program is voluntary for the 
states to choose to implement once EPA produces a prototype label, and 
it is voluntary for building owners to utilize subject to state policy. 
Its sole purpose is to provide information to consumers about building 
energy performance. It is also limited to new construction. There is 
nothing in the bill, and never has been, that would provide a basis for 
assertions that homeowners would be required to pay for an expensive 
audit and upgrades to a home before being allowed to sell it.
  I know that those outdoor lighting manufacturers, efficiency groups, 
and lighting consumer interests who are involved in the ongoing 
negotiations to reach new consensus efficiency standards for outdoor 
lighting may be concerned about amendments to the bill's language with 
regard to those standards. Their efforts provided the basis for the 
outdoor lighting provisions in the legislation as introduced, and I 
remain supportive of their ongoing negotiations. It's my hope and 
expectation that their process will yield a negotiated standard with as 
much consensus as possible that will deliver substantial energy savings 
from outdoor lighting products on a realistic schedule. Such a result 
could be very influential as Congress continues to consider this 
matter.

[[Page 16727]]


  Mr. WAXMAN. Madam Speaker, I yield back the balance of my time.


     Amendment in the Nature of a Substitute Offered by Mr. Forbes

  Mr. FORBES. Madam Speaker, I have an amendment in the nature of a 
substitute at the desk.
  The SPEAKER pro tempore. The Clerk will designate the amendment.
  The text of the amendment in the nature of a substitute is as 
follows:

       Amendment in the nature of a substitute offered by Mr. 
     Forbes:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``New Manhattan Project for 
     Energy Independence''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) Commission.--The term ``Commission'' means the 
     Commission established under section 7.
       (2) Research.--The term ``research'' includes research on 
     the technologies, materials, and manufacturing processes 
     required to achieve the goals described in section 3.

     SEC. 3. GOALS.

       (a) In General.--The purpose of this Act is to enable the 
     achievement of each of the following goals:
       (1) Vehicle fuel efficiencies and alternative fuel 
     sources.--Development and manufacturing of a plug-in hybrid 
     vehicle, alternative fuel vehicle, electric vehicle, hydrogen 
     fuel cell vehicle, or other alternative technology vehicle--
       (A) that is not more than 10 percent more expensive than a 
     comparable model vehicle of the same model year;
       (B) with--
       (i) equal acceleration, horsepower, and top speed 
     performance; and
       (ii) not more than 20 percent reduction in cargo space,
     as compared to a comparable model vehicle of the same model 
     year;
       (C) that meets or exceeds Federal safety standards;
       (D) that can travel at least 750 miles between refueling; 
     and
       (E) in the case of a gasoline powered vehicle, that can 
     travel at least 70 miles per gallon of gasoline.
       (2) Green buildings.--Develop and build an energy efficient 
     residential or commercial building that--
       (A) uses no more than 50 percent of the energy of the 
     average new building of similar size and type;
       (B) costs no more than 15 percent more to construct than 
     the cost of a building of similar size and type; and
       (C) can be effectively reproduced in a variety of climate 
     environments found in the United States.
       (3) Solar power.--Construction of a large scale solar 
     thermal power plant or solar photovoltaic power plant capable 
     of generating 300 megawatts or more at a cost of 10 cents or 
     less per kilowatt-hour when all capital and operating 
     expenses are calculated into the cost.
       (4) Biofuels.--Development and production of a biofuel 
     that, when mass produced, does not exceed 105 percent of the 
     cost for the energy equivalent of unleaded gasoline when all 
     capital and operating expenses are calculated into the cost 
     of the biofuel.
       (5) Carbon sequestration.--Development and implementation 
     of a carbon capture and storage system for a large scale 
     coal-burning power plant that does not increase operating 
     costs more than 15 percent compared to a baseline design 
     without carbon capture and storage while providing an 
     estimated chance of carbon dioxide escape no greater than 1 
     percent over 5,000 years.
       (6) Nuclear waste.--Development of both--
       (A) a validated process for remediation of the radioactive 
     waste form so it is no longer harmful to the health or 
     welfare of the environment or individuals for a period to be 
     determined by the Commission, which shall be not less than 
     5,000 years; and
       (B) a model that accounts for all the effects of nuclear 
     waste in that process.
       (7) Nuclear fusion.--Development of a sustainable nuclear 
     fusion reaction capable of providing a large-scale (greater 
     than 300 megawatts), sustainable source of electricity for 
     residential, commercial, or government entities.
       (b) Amendment of Goals.--The Secretary of Energy may amend 
     a goal described in subsection (a) pursuant to a 
     recommendation from the Commission under section 7(b)(5), or 
     on his own initiative, if such amendment serves the purpose 
     of achieving the goal of United States energy independence 
     through the development of technologies that lead to the 
     widespread adoption of improvements that increase energy 
     supply or energy efficiency.

     SEC. 4. SUMMIT.

       (a) In General.--Not later than 60 days after the date of 
     enactment of this Act, the President shall convene a summit 
     that includes--
       (1) the principal advisors and directors of all programs in 
     the Federal Government related to the achievement of the 
     goals described in section 3;
       (2) the members of the Commission; and
       (3) leading researchers at the Federal laboratories and 
     representatives of private sector partners engaged in the 
     production and manufacturing of technologies necessary to 
     achieve the goals described in section 3.
       (b) Purpose.--The summit shall be for the purpose of 
     reviewing the progress and promise for each of these 
     technologies, the interrelationship of these technologies to 
     each other, and additional funding resources needed to 
     accelerate the progress of these programs toward achieving 
     the goals described in section 3.

     SEC. 5. GRANT PROGRAM.

       (a) In General.--The Secretary of Energy, in consultation 
     with the Secretary of Defense, the Secretary of 
     Transportation, the Administrator of the Environmental 
     Protection Agency, and other Federal agencies as appropriate, 
     shall carry out a program consisting of a collaborative 
     effort with industry, government, and academia to support 
     research, development, demonstration, and commercial 
     application activities related to achieving the goals 
     described in section 3.
       (b) Grants.--Such program shall consist of grants to 
     researchers, large and small businesses, National 
     Laboratories, institutions of higher education, or any other 
     qualified applicant, including veterans.
       (c) Limitation on Amount.--No grant shall be made under 
     this section in an amount that exceeds 5 percent of the 
     amount authorized under section 8(1) for prizes for the 
     achievement of the same goal.
       (d) Cost Sharing.--The Federal share of the costs of a 
     project for which a grant is made under this section shall 
     not exceed 15 percent.

     SEC. 6. PRIZE PROGRAM.

       (a) Prize Authority.--
       (1) In general.--The Secretary of Energy shall carry out a 
     program to competitively award cash prizes in conformity with 
     this section to advance the research, development, 
     demonstration, and commercial application necessary to 
     achieve the goals described in section 3.
       (2) Advertising and solicitation of competitors.--
       (A) Advertising.--The Secretary shall widely advertise 
     prize competitions under this section to encourage broad 
     participation by researchers, large and small businesses, 
     institutions of higher education, and any other qualified 
     applicants, including veterans.
       (B) Announcement through federal register notice.--The 
     Secretary shall announce each prize competition under this 
     section by publishing a notice in the Federal Register. This 
     notice shall include essential elements of the competition 
     such as the subject of the competition, the duration of the 
     competition, the eligibility requirements for participation 
     in the competition, the process for participants to register 
     for the competition, the amount of the prize, and the 
     criteria for awarding the prize, which shall include, at a 
     minimum, the achievement of one of the goals described in 
     section 3.
       (3) Announcement of prizes.--The Secretary may not issue a 
     notice required by paragraph (2)(B) until all the funds 
     needed to pay out the announced amount of the prize have been 
     appropriated.
       (b) Prize Categories.--
       (1) Categories.--The Secretary of Energy shall establish a 
     single prize under this section for each of the goals 
     described in paragraphs (1) through (7) of section 3.
       (2) Criteria.--In establishing the criteria required by 
     this section, the Secretary--
       (A) shall consult with other Federal agencies, including 
     the National Science Foundation; and
       (B) may consult with other experts such as private 
     organizations, including professional societies, industry 
     associations, and the National Academy of Sciences and the 
     National Academy of Engineering.
       (c) Eligibility.--To be eligible to win a prize under this 
     section, an individual or entity--
       (1) shall have complied with all the requirements in 
     accordance with the Federal Register notice required under 
     subsection (a)(2)(B);
       (2) in the case of a private entity, shall be incorporated 
     in and maintain a primary place of business in the United 
     States, and in the case of an individual, whether 
     participating singly or in a group, shall be a citizen of, or 
     an alien lawfully admitted for permanent residence in, the 
     United States; and
       (3) shall not be a Federal entity, a Federal employee 
     acting within the scope of his employment, or an employee of 
     a national laboratory acting within the scope of his 
     employment.
       (d) Award Selection.--
       (1) In general.--The Secretary of Energy shall award prizes 
     under this section on the basis of the criteria published in 
     the notice required under subsection (a)(2)(B), after 
     receiving the recommendations of the Commission under section 
     7(b)(3).
       (2) Congressional notification.--If the Secretary awards a 
     prize under paragraph (1) in a manner that does not conform 
     to the recommendations of the Commission, the Secretary shall 
     transmit a report to the Congress explaining the reasons for 
     such action.
       (e) Intellectual Property.--The Federal Government shall 
     not, by virtue of offering

[[Page 16728]]

     or awarding a prize under this section, be entitled to any 
     intellectual property rights derived as a consequence of, or 
     direct relation to, the participation by a registered 
     participant in a competition authorized by this section. This 
     subsection shall not be construed to prevent the Federal 
     Government from negotiating a license for the use of 
     intellectual property developed for a prize competition under 
     this section.
       (f) Liability.--
       (1) Waiver of liability.--The Secretary of Energy may 
     require registered participants to waive claims against the 
     Federal Government (except claims for willful misconduct) for 
     any injury, death, damage, or loss of property, revenue, or 
     profits arising from the registered participants' 
     participation in a competition under this section. The 
     Secretary shall give notice of any waiver required under this 
     paragraph in the notice required by subsection (a)(2)(B).
       (2) Liability insurance.--
       (A) Requirements.--Registered participants in a prize 
     competition under this section shall be required to obtain 
     liability insurance or demonstrate financial responsibility, 
     in amounts determined by the Secretary, for claims by--
       (i) a third party for death, bodily injury, or property 
     damage or loss resulting from an activity carried out in 
     connection with participation in a competition under this 
     section; and
       (ii) the Federal Government for damage or loss to 
     Government property resulting from such an activity.
       (B) Federal government insured.--The Federal Government 
     shall be named as an additional insured under a registered 
     participant's insurance policy required under subparagraph 
     (A) with respect to claims described in clause (i) of that 
     subparagraph, and registered participants shall be required 
     to agree to indemnify the Federal Government against third 
     party claims for damages arising from or related to 
     competition activities under this section.
       (g) Nonsubstitution.--The programs created under this 
     section shall not be considered a substitute for Federal 
     research and development programs.

     SEC. 7. COMMISSION.

       (a) Establishment.--There shall be established the New 
     Manhattan Project Commission on Energy Independence.
       (b) Functions.--The Commission shall--
       (1) not later than 1 year after the date of enactment of 
     this Act, submit to Congress and the President a report 
     containing--
       (A) recommendations on steps that must be taken in order 
     for the United States to achieve 50 percent energy 
     independence within 10 years and 100 percent energy 
     independence within 20 years; and
       (B) an assessment of the impact of foreign energy 
     dependence on United States national security;
       (2) advise the Secretary of Energy on the design and 
     operation of the grant program established under section 5;
       (3) make recommendations to the Secretary of Energy on the 
     design and operation, including selection criteria, of the 
     prize program carried out under section 6;
       (4) make recommendations to the Secretary of Energy 
     selecting participants who have achieved a goal for which a 
     prize will be awarded under section 6; and
       (5) submit recommendations to Congress for any amendments 
     to make the goals described in section 3 more stringent, as 
     appropriate because of changing circumstances, if such 
     amendments serve the purpose of achieving the goal of United 
     States energy independence through the development of 
     technologies that lead to the widespread adoption of 
     improvements that increase energy supply or energy 
     efficiency.
       (c) Membership.--The Commission shall be composed of 13 
     members as follows:
       (1) The Under Secretary for Science of the Department of 
     Energy.
       (2) The Administrator of the Research and Innovative 
     Technology Administration.
       (3) The Director of the National Science Foundation.
       (4) The Chairman of the Federal Laboratory Consortium for 
     Technology Transfer.
       (5) The President of the National Academy of Sciences.
       (6) 2 members appointed by the Speaker of the House of 
     Representatives.
       (7) 2 members appointed by the minority leader of the House 
     of Representatives.
       (8) 2 members appointed by the majority leader of the 
     Senate.
       (9) 2 members appointed by the minority leader of the 
     Senate.
       (d) Terms of Membership.--Each member of the Commission 
     appointed under subsection (c)(6) through (9) shall be 
     appointed for a term of two years, except that of the members 
     first appointed, one under each of those paragraphs shall be 
     appointed for a term of one year. A member of the Commission 
     may serve after the expiration of the member's term until a 
     successor has taken office.
       (e) Vacancies.--A vacancy in the Commission shall not 
     affect its powers but, in the case of a member appointed 
     under subsection (c)(6) through (9), shall be filled in the 
     same manner as the original appointment was made. Any member 
     appointed to fill a vacancy for an unexpired term shall be 
     appointed for the remainder of such term.
       (f) Quorum.--Seven members of the Commission shall 
     constitute a quorum.
       (g) Meetings.--The Commission shall meet at the call of the 
     Chairman or a majority of its members.
       (h) Compensation.--(1) Each member of the Commission shall 
     serve without compensation.
       (2) While away from their homes or regular places of 
     business in the performance of duties for the Commission, 
     members of the Commission shall be allowed travel expenses, 
     including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under sections 5702 and 
     5703 of title 5, United States Code.
       (i) Staff.--Subject to rules prescribed by the Commission, 
     the Commission may appoint personnel as it considers 
     appropriate.
       (j) Applicability of Certain Civil Service Laws.--The staff 
     of the Commission shall be appointed subject to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, and shall be paid in 
     accordance with the provisions of chapter 51 and subchapter 
     III of chapter 53 of that title relating to classification 
     and General Schedule pay rates.
       (k) Experts and Consultants.--The Commission may procure 
     temporary and intermittent services under section 3109(b) of 
     title 5, United States Code.
       (l) Hearings and Sessions.--The Commission may, for the 
     purpose of carrying out this Act, hold hearings, sit and act 
     at times and places, take testimony, and receive evidence as 
     the Commission considers appropriate.
       (m) Powers of Members and Agents.--Any member or agent of 
     the Commission may, if authorized by the Commission, take any 
     action which the Commission is authorized to take by this 
     section.
       (n) Obtaining Official Data.--The Commission may secure 
     directly from any department or agency of the United States 
     information necessary to enable it to carry out this Act. 
     Upon request of the Commission, the head of that department 
     or agency shall furnish that information to the Commission.
       (o) Subpoena Power.--
       (1) In general.--The Commission may issue subpoenas 
     requiring the attendance and testimony of witnesses and the 
     production of any evidence relating to any matter under 
     investigation by the Commission. The attendance of witnesses 
     and the production of evidence may be required from any place 
     within the United States at any designated place of hearing 
     within the United States.
       (2) Failure to obey a subpoena.--If a person refuses to 
     obey a subpoena issued under paragraph (1), the Commission 
     may apply to a United States district court for an order 
     requiring that person to appear before the Commission to give 
     testimony, produce evidence, or both, relating to the matter 
     under investigation. The application may be made within the 
     judicial district where the hearing is conducted or where 
     that person is found, resides, or transacts business. Any 
     failure to obey the order of the court may be punished by the 
     court as civil contempt.
       (3) Service of subpoenas.--The subpoenas of the Commission 
     shall be served in the manner provided for subpoenas issued 
     by a United States district court under the Federal Rules of 
     Civil Procedure for the United States district courts.
       (4) Service of process.--All process of any court to which 
     application is made under paragraph (2) may be served in the 
     judicial district in which the person required to be served 
     resides or may be found.
       (p) Federal Advisory Committee Act.--Section 14 of the 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Commission.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Energy--
       (1) for the period encompassing fiscal years 2010 through 
     2019--
       (A) $500,000,000 for awarding the prize under section 6 for 
     meeting the goal described in section 3(1);
       (B) $250,000,000 for awarding the prize under section 6 for 
     meeting the goal described in section 3(2);
       (C) $250,000,000 for awarding the prize under section 6 for 
     meeting the goal described in section 3(3);
       (D) $1,000,000,000 for awarding the prize under section 6 
     for meeting the goal described in section 3(4);
       (E) $1,000,000,000 for awarding the prize under section 6 
     for meeting the goal described in section 3(5);
       (F) $1,000,000,000 for awarding the prize under section 6 
     for meeting the goal described in section 3(6);
       (G) $10,000,000,000 for awarding the prize under section 6 
     for meeting the goal described in section 3(7); and
       (H) $10,000,000,000 for carrying out the grant program 
     under section 5; and
       (2) such sums as may be necessary for carrying out this Act 
     for subsequent fiscal years.

  The SPEAKER pro tempore. Pursuant to House Resolution 587, the 
gentleman from Virginia (Mr. Forbes) and a Member opposed each will 
control 15 minutes.

[[Page 16729]]

  The Chair recognizes the gentleman from Virginia.
  Mr. FORBES. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, first of all, I would like to thank the Rules 
Committee for allowing me to bring this amendment by making it in 
order. No matter what the motivation or the intentions, I appreciate 
that opportunity. And I want to make it clear this amendment is not an 
addition. It is an amendment in the nature of a substitute that would 
replace the current bill on the floor.
  Madam Speaker, I would also like to make clear that this is not a 
Democratic amendment, obviously, and I think we will hear from the 
Democratic leadership in a few minutes to make that clear. It's not a 
Republican amendment, and we will probably hear from the Republican 
leadership to that extent in just a few moments. But it is an amendment 
that's overwhelmingly supported by the American people.
  I never cease to be amazed at how day after day we come in this body, 
and as we enter this great Chamber, we somehow put on our adversarial 
robes and we pick up our adversarial clubs and then we go about our 
business. But, unfortunately, the adversarial process often leads us to 
be more concerned with scoring points than we are with winning 
solutions. In this debate I have listened to today there are good men 
and women on both sides, and there are smart men and women on both 
sides, and they all believe they are right. But there are limits to the 
good ideas that we can bring into this one Chamber about energy.
  The reality is if you're from a coal area, the people back at home 
know you're going to be fighting for coal. If you're from a gas area, 
you're going to be fighting for gas. And if you're from an area with a 
lot of wind or solar technology, that's what you're going to be certain 
it's going to solve our energy problem. But even the majority can't 
always be right, and that's why only 33 percent of the people in 
America approve of what Congress is doing currently today.
  This amendment, Madam Speaker, is the new Manhattan Project for 
energy independence. A lot of people have talked about doing something 
like this. Today we have an opportunity to do it. And it has a novel 
approach. It says that instead of the 435 of us on this floor bringing 
our ideas and imposing them on the American people, what we do is bring 
together a commission of the brightest men and women in America, from 
government, from the private sector, from academics, and we have them 
create in the next year a plan of energy for this country that would 
get us 50 percent independent from foreign oil in 10 years and 100 
percent in 20 years or tell us why we can't get there.

                              {time}  1700

  And this amendment also realizes that in this bill on the floor 
today, we are essentially redistributing another $800 billion of 
taxpayer money because we think we know what's best for Americans. The 
new Manhattan Project amendment would set seven goals for energy 
independence. They are goals that almost everybody agrees we need to 
reach energy independence: doubling vehicle fuel efficiency, cutting 
home and business energy usage in half, having solar power work as 
cheaply as coal, making biofuels work as cheaply as gasoline, safely 
and cheaply storing carbon emissions from our coal-fired plants, safely 
storing nuclear waste and producing electricity from nuclear fusion 
reactions. Then through grants and prizes it energizes an entire Nation 
to reach those goals through their innovation and their ideas and their 
imagination. But, Madam Speaker, perhaps the most important thing this 
amendment does is it restores American competitiveness by sending out 
two signals.
  First of all, it sends a signal out across this country to the 
American people that we trust them and America is coming back on its 
competitive edge. And, secondly, it sends a shot across the bow of 
every country in the world, telling them we are not going to surrender, 
that we are going to come back, and we are going to compete, and we are 
going to win on a fair playing field, and we are going to restore a 
competitive advantage that is going to lead us for the next 50 years.
  And then finally, Madam Speaker, it invigorates a whole generation of 
Americans to go into math and science and be a part of our energy 
solution for years to come.
  And so with that, Madam Speaker, I hope that we will pass this 
amendment, and I reserve the balance of my time.
  Mr. WAXMAN. Madam Speaker, I rise in opposition to this proposal.
  The SPEAKER pro tempore. The gentleman from California is recognized 
for 15 minutes.
  Mr. WAXMAN. I yield myself such time as I might consume.
  This amendment is more of the same from the Republicans. After 8 
years of failed energy policies, the Republican answer to our energy 
problems is to do more research and to provide people with prizes for 
good ideas.
  Well, during the last 8 years, the average American family has seen 
its energy cost increase by nearly $2,800 a year. Those are increases 
in gasoline prices, home heating, electricity bills. American families 
cannot afford the same failed policies.
  Now, I like the idea of having good, innovative approaches to our 
challenges. I don't mind giving people awards if they come up with good 
ideas, but I think good ideas come up with market incentives and 
competition and rewarding people for good ideas with something more 
than a good ribbon to pin on their chest.
  This amendment strikes the whole bill and substitutes this idea of 
giving prizes. Could you imagine, giving prizes. Why didn't you give 
out prizes in the last 8 years, and maybe our energy problems would 
have been solved if we had given out more prizes for good ideas.
  But the bill before us, the American Clean Energy and Security Act, 
is a comprehensive energy policy. It will create new clean-energy jobs, 
increase our energy independence and dramatically cut pollution. We are 
talking about 1.7 million new jobs.
  This bill will save 240 million barrels of oil each year. That's oil 
we don't have to import from the Middle East. And this bill is going to 
help consumers, because the energy efficiency provisions alone will 
save consumers $750 per year by 2020.
  This bill before us makes a landmark investment in the future of the 
country by providing $190 billion through 2025 to increase our 
efficiency and deploy cutting edge energy technologies. We provide for 
renewable energy, coal with carbon capture and storage, nuclear power 
and advance technologies, electric vehicles, smart grid transmission, 
energy efficiency. I could go on.
  This substitute amounts to a grant program and a competition with 
prizes for good ideas. There is no comparison between the two.
  The bill before us is a real solution to our very real energy 
challenges. The Republican amendment simply fails to rise to the 
challenge.
  I urge its defeat and reserve the balance of my time.
  Mr. FORBES. Madam Speaker, the gentleman mentions those 8 years of 
bad ideas. That's why these similar concepts were endorsed in the 
campaign by President Obama, Senator McCain, Senator Clinton and also 
individuals like Newt Gingrich.
  I would like to yield 1 minute to the distinguished gentleman from 
Illinois (Mr. Schock).
  Mr. SCHOCK. Madam Speaker, I woke up this morning to the front page 
of my hometown paper, which read, Peoria's unemployment rate crosses 
double digits for first time in two decades.
  At a time when our communities across this country are losing work 
and out of jobs, we in this body are passing a piece of legislation 
that will only do more, only put more people out on the street and in 
the unemployment lines.
  This bill, on the average, will add to Illinois residents the cost 
equal to 1 month of their electricity bill. In essence, we are adding a 
13th month to their utility bill. It doesn't matter whether my 
constituents are senior citizens living on a fixed income, families, 
businesses, we are asking them to

[[Page 16730]]

pay more at a time when they have less.
  Now, there is not a person in this room that doesn't want more of the 
same, more green energy, more wind, more nuclear, more solar power. But 
I, for one, believe we can get there without putting the conventional 
methods of energy out of business.
  The Forbes amendment will do just that. It is creative ideas, 
incentivizing the behaviors that we want as opposed to what we don't 
that we need.
  I urge a ``yes'' vote on this amendment and a ``no'' on the cap-and-
tax bill.
  Mr. WAXMAN. Madam Speaker, I would yield 1 minute to my cosponsor of 
the legislation that's before us. My name came first, his second, 
because I am older and I am chairman of the full committee. He is 
chairman of the subcommittee. But the real author of the legislation, 
he has worked on this problem for many, many years, is Ed Markey.
  Mr. MARKEY of Massachusetts. Thank you, Mr. Chairman.
  With our bill, we will take back America's position as the 
technological leader, give back money to consumers by lowering energy 
bills, send back the millions of barrels of oil we import from foreign 
dictators every day, and we will export wind turbines and solar panels 
that say ``Made in America'' instead of continuing to import millions 
of barrels of oil a day that say ``Made by OPEC.''
  This bill has the ambition of the Moon landing, the moral imperative 
of the Civil Rights Act, and the scope of the Clean Air Act all wrapped 
up in one. All we are hearing here this evening are the same 
discredited policies from the past that have gotten us into this 
economic national security and environmental situation that we live 
with today.
  Vote ``no'' on this substitute and vote ``aye'' for the bill that we 
are considering. The gentleman from California has done an excellent 
job in bringing us to this point.
  Vote ``no'' on this substitute.
  Mr. FORBES. Madam Speaker, I would like to yield 1 minute to the 
distinguished gentleman from South Carolina (Mr. Inglis).
  Mr. INGLIS. I thank the gentleman for yielding.
  This is not the time for a tax increase. It's not the time for 
another Wall Street trading scheme, and it's not the time to burden 
American manufacturing. It is the time to inspire innovation through 
amendments like Mr. Forbes' and to come together to find a solution 
that breaks our addiction to oil, that creates new energy jobs, and 
that cleans up the air.
  We can get there if we stop this cap-and-trade, do some fresh 
thinking, and then come together for America's sake around a revenue-
neutral tax swap. It would start with a tax cut on FICA taxes, then in 
equal amount, we would shift the tax onto carbon. We could then apply 
that tax to imported as well as domestically produced goods. Just like 
the fair tax, we would just be changing what we tax.
  We would be swapping a FICA tax cut for a similar tax on carbon. The 
accountability of a revenue-neutral tax swap would cause old fuels to 
lose out to new fuels. We would be building nuclear power plants, and 
free enterprise would deliver the triple play of this American century.
  Ladies and gentleman, let's support the Forbes amendment for 
innovation, stop the cap-and-trade, and solve the problem.
  Mr. WAXMAN. Madam Speaker, I would like to inquire of the gentleman 
from Virginia (Mr. Forbes) who is controlling the time, how many 
speakers do you have? We have two on our side.
  Mr. FORBES. I would say to the gentleman, we have three, maybe four 
more speakers.
  Mr. WAXMAN. We will reserve the balance of our time.
  Mr. FORBES. Madam Speaker, can you tell us how much time we have 
remaining.
  The SPEAKER pro tempore. The gentleman from Virginia has 9 minutes 
remaining. The gentleman from California has 11 minutes remaining.
  Mr. FORBES. Madam Speaker, I would like to yield 1 minute to the 
gentleman from Virginia (Mr. Goodlatte).
  Mr. GOODLATTE. I thank the gentleman for yielding and commend him for 
offering this amendment, which is a great opportunity for our 
colleagues on the other side of the aisle to stop putting the cart 
before the horse and suppressing our traditional sources of energy, 
oil, natural gas, coal. Doesn't even do anything for nuclear power, and 
yet you want to push us into a direction where the technology doesn't 
yet exist.
  This legislation, this amendment, this substitute is exactly what you 
can need. You can vote for this, put us on a Manhattan Project to 
develop the new green technology that we need in this country, to do it 
in a way that is commercially feasible, to do it in a way that can rise 
up to replacing the 95 percent of our sources of energy that we have in 
our country this day, that you can push down in this legislation.
  And if you were to vote for that and against the underlying bill, we 
would be putting this country on a course in a bipartisan fashion that 
would lead our country to exactly what we need. Unlike the Markey-
Waxman approach, this amendment does not pick winners or losers in 
technology. It allows the ingenuity of American citizens to create the 
technology that will make our country energy independent.
  I urge my colleagues to support the gentleman's substitute.
  This amendment focuses on making our country energy independent 
through the innovation of American individuals and businesses, not 
through government mandates and intrusion. Unlike the Waxman-Markey 
approach, this amendment does not pick winners and losers in technology 
but allows the ingenuity of American citizens to create the technology 
that will make our country energy independent while at the same time 
reducing carbon emissions.
  Most importantly, the Forbes Amendment won't raise the cost of living 
to American consumers or hinder the ability for American businesses to 
compete. The technology that a new Manhattan Project could spur has the 
ability to rebuild our economy and make it stronger than ever before.
  The Forbes Amendment is the right approach to make our country energy 
independent while reducing carbon emissions. I encourage all my 
colleagues to vote for this amendment.
  Mr. FORBES. Madam Speaker, I would like to yield 1 minute to the 
distinguished gentlelady from Minnesota (Mrs. Bachmann).
  Mrs. BACHMANN. I thank the gentleman from Virginia. I support the 
gentleman's amendment.
  We know, Madam Speaker, that this national energy tax will cost the 
American people $2 trillion. We know that. We know this will result in 
a loss of 2.5 million jobs every year for the American people. We know 
that. We know this will result in a reduced standard of living for 
Americans. We know that. What is the point and what's the benefit?
  But what is worse than this is the fact that now, because of this 
underlying bill, the Federal Government will virtually have control 
over every aspect of lives for the American people. It is time to stand 
up and say, We get to choose. We choose liberty or we choose tyranny. 
It's one of the two.
  The underlying bill represents the tyranny and the intervention of 
the Federal Government. Mr. Forbes' amendment represents liberty for 
the American people.
  It's our choice. What will we choose today? Will we choose liberty or 
will we choose tyranny?
  I choose Mr. Forbes' amendment.
  Mr. FORBES. Madam Speaker, I yield 1 minute to the distinguished 
gentleman from Texas, the ranking member of the Energy and Commerce 
Committee, Mr. Barton.
  Mr. BARTON of Texas. Madam Speaker, I rise in strong support of the 
Forbes amendment. This is not a comprehensive substitute, because the 
majority party, which controls the Rules Committee, ruled out of order 
and didn't make it in order on the floor either the Republican 
leadership comprehensive substitute or the Energy and Commerce 
Committee comprehensive substitute.
  So they did rule in order Mr. Forbes' substitute. And I will 
guarantee you, this is better than the base bill.

[[Page 16731]]

  It doesn't wreck the economy. It does include, and you can count on 
the ingenuity of the American people, through an incentives package, to 
unleash the productivity and innovativeness of our folks in the United 
States to find new solutions to our energy and environmental problems.
  But it doesn't have this boondoggle cap-and-trade program that will 
wreck the economy, deindustrialize America, and make us a second-rate 
economic power. It is not a comprehensive substitute, but it is darn 
better than the base bill.
  Vote for it.
  Mr. FORBES. Madam Speaker, can you tell me how much additional time 
we have?
  The SPEAKER pro tempore. The gentleman from Virginia has 6 minutes 
remaining. The gentleman from California has 11 minutes remaining.

                              {time}  1715

  Mr. FORBES. Madam Speaker, I yield myself 5 minutes.
  Madam Speaker, we have heard a lot today about how these ideas of a 
new Manhattan Project were stale ideas of this party. I stated at the 
beginning that, unfortunately, we get so tied up in this Chamber in our 
adversarial process that all we're concerned about is how many points 
we take from each other.
  The reality is that a project like this, the new Manhattan Project, 
or you can call it a ``poppy project,'' were concepts that were talked 
about by President Obama during the campaign, by Senator Clinton during 
the campaign, by Senator McCain during the campaign and, as I mentioned 
earlier, by former Speaker Newt Gingrich, and many other people.
  They're concepts that have been approved by 77 percent of the 
American people. And what they do is substitute for taxation of the 
American people the concept of innovation and trusting the ideas of the 
ingenuity and imagination of people across America.
  We talked about what this bill can do if we reach just one of these 
goals. Just one of these goals, it could change and save us as much as 
$100 billion. But, most of all, Madam Speaker, this trusts the American 
people to do what they always do, and that is find a way to win, if we 
don't quit before they have a chance to win. And it sends a message to 
them at a time when they're back on their heels and they need some 
wins, that we trust that they, with their imagination and innovation, 
can do things that this body can't do and can't dictate to them.
  Perhaps it was best said by Mr. Friedman in a New York Times article 
that he wrote--and I don't agree with everything he says, but I agree 
with this. He said, I want an energy bubble. I want so many people 
throwing crazy dollars at every idea and every garage that we have a 
hundred thousand people trying a hundred thousand things, five of which 
might work and two might be the next green Google. But I don't want a 
Manhattan Project of 12 people in Los Alamos. I want it to be like the 
IT revolution: everyone becoming a programmer. Only, in this case, it's 
everyone becoming a green innovator. What IT was to the eighties and 
nineties, ET, energy technology, will be to the early 21st century.
  Madam Speaker, this amendment gives us that opportunity. This 
amendment will birth that ability for Americans to create the energy 
solutions that we need as we go forward into the next several decades 
and to give our children and our grandchildren the competitive edge to 
compete in a world economy.
  With that, Madam Speaker, I reserve the balance of my time.
  Mr. WAXMAN. Madam Speaker, I'm pleased at this time to yield 1 minute 
to the majority leader so that he may speak on this amendment and the 
legislation that's before us, the gentleman from Maryland (Mr. Hoyer.)
  Mr. HOYER. I thank the gentleman for yielding. Mark this day, June 
26, 2009. My colleagues, we have an opportunity to serve in a historic 
session of the Congress of the United States. We have an opportunity to 
take action that will make a major difference in the security and 
independence and environment of our globe as well as our country.
  We have been given the privilege by our fellow citizens to serve at a 
time of historic change and meeting challenges that were the subject of 
this past Presidential campaign. And in this past Presidential campaign 
there were three major candidates. You could perhaps name more, but 
there were two, certainly, at the end.
  And the campaign of Senator McCain and Senator Obama had something in 
common. They were both for comprehensive cap-and-trade legislation, the 
candidate you supported and the candidate I supported. They put an 
agenda of action before the American people that they would pursue if 
they were elected President of the United States. Only one could be 
elected, but presumably both would have followed through on their 
commitment, as this President has, and we are today.
  This is a transformative moment. This is a moment to build a clean-
energy future for our country. This is a moment to create jobs in 
America. This is a moment to take on, at long last, a defining 
challenge of our time--global warming. I know my colleagues can seize 
this moment, if they only will.
  The substitute talks about a Manhattan Project. I think the 
sentiments expressed in the substitute are good ones. The objectives 
are good ones. But Americans voted for action, not additional studies. 
America voted to make a difference, not to make a point. America voted 
for the change we could believe in. That's what this bill represents.
  I know they can look back from a future in which America is 
independent of foreign oil. There has been much talk about taxes. 
Tragically, almost every debate we have on this floor devolves into: 
We're going to raise your taxes.
  My fellow Americans know about having their expenses raised and 
because the foreign potentates who hold us hostage because they provide 
so much of our energy gave us a new tax at the gas pump--and every 
American remembers it. Why? Because we have not taken the action 
necessary to become energy independent.
  And so our gasoline prices at the pump for my commuters who drive 
sometimes an hour or an hour and a half to get to work to support their 
families paid an additional $2.50 per gallon tax imposed by those from 
abroad who provide us energy.
  This bill is about making sure that foreign interests cannot raise 
the expenses of our families. This bill is about making sure that we in 
America provide our energy, efficient energy, clean energy, energy that 
will not bring our globe to a heating process that will drown out what 
the Navy calls the littorals, the seashores, where most of our people 
live.
  My colleagues, this bill, the American Clean Energy and Security Act, 
is a true turning point. This is one of the historic actions we will 
take not just in this Congress, but as Members of Congress, for however 
long a tenure we may have.
  It's a complex bill because we face a complex problem. But we can sum 
up its outcome simply: new American jobs, less dependence on foreign 
energy, a reduction in the carbon pollution that causes global warming.
  How does this bill accomplish those goals? Among its most important 
provisions are a requirement that utilities meet 20 percent of electric 
demand through renewable sources and energy efficiency by 2020.
  I'm old enough to remember the lines of the seventies when you waited 
in line an hour or two or three to put gasoline in your car so you 
could get your child to school, get to work, pick up your child from 
child care. America should have acted, but we did not. Today, we're 
going to act.
  Significant new investments in renewables, carbon capture and 
sequestration, electric vehicles, and cutting-edge energy research, all 
of that is in this bill to take action, change that America can believe 
in. And energy savings standards for buildings, appliances, and 
industries.
  This bill also creates a clean-energy bank to fund promising energy 
projects

[[Page 16732]]

across America. Investment in America's ingenuity and innovative 
entrepreneurial spirit, that's what this bill is about. That is why 
it's so important to America.
  It invests in high-tech transmission lines to build the essential 
foundation for a more efficient grid. That is essential if the energy 
we produced can be delivered to those who need it in businesses and in 
homes.
  New transmission lines comprised of superconducting cable and other 
efficient wires will carry more power within existing rights-of-way 
with less land use is included. The result will be a more secure, 
environmentally friendly grid. That's what this bill does.
  I worked with the chairman and Representative Inslee to ensure that 
those transmission provisions were included because they are such an 
important part of a more cost-effective, energy efficient future that 
our country needs.
  Of course, the bill also includes the reduction of our carbon 
emissions by 17 percent by 2020. Some would like to do more. Some would 
like to do less. But we have reached a compromise. That is the 
legislative process. And it is compromise that can pass this House and 
pass that Senate and be signed by the President and become law. And 
make progress. That's what our responsibility is. And then, more than 
an 80 per reduction by 2050.
  We can fight global warming with the same kind of market-based cap-
and-trade solution that was so effective in combating acid rain at 
minimal cost in the 1990s. Global warming threatens every one of us. 
There was disagreement on that for a long period of time--some 7 years 
in the Bush administration, until the last year, President Bush, our 
President, decided that, yes, global warming was in fact a challenge 
that must be met.
  This is not a partisan issue. This is an issue on which we have 
reached consensus. Global warming threatens every one of us. It will 
affect the kind of lives our children will lead and the kind of 
prosperity our country and our world will enjoy.
  To those who complain about the cost of the bill, I answer that we 
are all paying the cost of carbon emissions already, and certainly, as 
I pointed out earlier, paying the cost of being hostage to those abroad 
who provide our energy.
  The longer we wait to act, the more we will pay year after year after 
year. But if we take action now, we can get jobs, growth, clean energy, 
and energy independence for less than the price of a postage stamp a 
day for each of us, according to the EPA and CBO.
  And with this bill passed and signed, the United States will finally 
be able to argue persuasively and credibly for global action on a 
challenge that knows no borders. We understand that if the Chinese do 
not act, or the Indians don't act, the air that they belch will soon 
come to this continent and our children and families will be at risk.
  This is a global problem. But America is the leader. America must 
lead. America must set the example. This bill does exactly that.
  At the same time, action on global warming will send a powerful job-
creating price signal to the private sector, spurring innovation in 
every part of the renewable energy economy. Jobs, jobs, jobs. That is 
one of the reasons why the U.S. Climate Action Partnership, a business 
coalition dedicated to fighting climate change has argued that ``the 
way we produce and use energy must fundamentally change both nationally 
and globally''--and that this coming change represents an excellent 
opportunity for economic growth.
  And that is why another coalition of 19 businesses, including the 
Pacific Gas and Electric Company, Duke Energy, National Grid, H.P., 
Starbucks, and Nike wrote to President Obama that this bill ``will 
drive investment into cost-saving, energy saving technologies and job-
creating innovation, create the next wave of jobs in the new energy 
economy and will provide the predictability we need to plan for future 
business success.''
  Those aren't my words. Those are the words of leaders in the 
corporate community in America who know something about innovation, 
enterprise, and free markets.
  It has long been understood that acting on global warming is a moral 
necessity as well as an intellectual necessity. But now, more and more 
of us are realizing that it makes powerful economic sense as well.
  Madam Speaker, let me as an aside thank you for your presiding at 
this time on this historic bill and for presiding over so much 
legislation in such a fair and effective fashion.

                              {time}  1730

  This House will miss your service, but the country will enjoy your 
continuing service. I thank you, Madam Speaker.
  Madam Speaker, a future of clean energy is well worth the price. A 
Republican governor, inaugurated in the State of Maryland, in his 
inaugural address said that the cost of failure far exceeds the price 
of progress.
  The cost of failure for the last three to four decades has cost this 
country. Progress will be far less expensive than failure. My children, 
my grandchildren and the generations to come will be either the 
beneficiaries of our stewardship or the victims of our neglect.
  I urge my colleagues this day to reject this substitute, not because 
it is bad for the words that it incorporates, but because its effect 
would be to stop action so desperately needed by this country and this 
globe.
  I urge my colleagues, defeat this substitute, pass this bill, and 
take this historic opportunity for our children, our grandchildren and 
generations yet unborn.
  Mr. FORBES. Madam Speaker, may I request how much time is remaining?
  The SPEAKER pro tempore. The gentleman from Virginia has 3\1/2\ 
minutes remaining. The gentleman from California has 10 minutes 
remaining.
  Mr. FORBES. Madam Speaker, I yield myself 1\1/2\ minutes.
  Madam Speaker, the distinguished minority leader just said that 
Americans must lead; and lead, they must. He also indicated that the 
cost of their failure would be passed on to our children and 
grandchildren.
  As one of only 17 Members in this body that has voted against every 
bailout bill and stimulus bill we have passed, I ask the American 
people who watch here, what has been the enormous cost of our failure 
in spending all of those dollars, and what have you got from it? Also, 
Madam Speaker, I would say this--that the American people can lead. 
They're not stupid. Only 33 percent of them approve of what we're 
doing.
  We have a choice. Only in this body could they believe that we could 
say words like, We're going to create jobs by destroying jobs. We're 
going to reduce your taxes by increasing your taxes. We're going to 
come in here with all your parochialism, and we can create a plan for 
you that is far better than the brightest experts on energy could do by 
having this amendment. We prefer taxation over innovation of the 
American people. Or we'll have a bill like this that only sets a 20 
percent goal in 11 years for renewable energy, where in this bill we 
set a 50 percent goal of dependence from foreign oil in 10 years and 
100 percent in 20 years. And, finally, that in this bill we know we're 
going to spend $800 billion that probably won't work.
  In our bill and this amendment, Madam Speaker, we know that we only 
pay $24 billion, and we only have to pay it when we get the results.
  With that, I reserve the balance of my time.
  Mr. WAXMAN. Madam Speaker, I understand that our side has the right 
to close.
  The SPEAKER pro tempore. The gentleman is correct.
  Mr. WAXMAN. I reserve the balance of my time.
  Mr. FORBES. Madam Speaker, I yield the balance of my time to the 
distinguished minority leader, the gentleman from Ohio (Mr. Boehner).
  The SPEAKER pro tempore. The gentleman from Ohio is recognized for 2 
minutes.
  Mr. BOEHNER. Let me thank my colleague for yielding.
  Madam Speaker, I congratulate you on your upcoming marriage and your

[[Page 16733]]

new job. All of us on the Republican side of the aisle thank you for 
your service to this institution and your service in the Chair. Good 
luck to you.
  My colleagues, we've been through a very difficult time in our 
economy. We've had the great economic shocks of last fall, and we've 
seen unemployment climbing month after month after month. It is now at 
some 9.4 percent.
  Earlier this year we passed a 1,100-page bill that no one read. It 
was supposed to be about putting the American people back to work 
again. It was supposed to be about stimulating our economy. And all we 
heard during that debate was about jobs, jobs and jobs. It's pretty 
clear that what the bill really ended up being was nothing more than 
spending, spending and more spending, because since that bill passed, 
some 1.7 million Americans have lost their jobs. So when we look at the 
legislation that continues to go through here, the American people are 
seeing an awful lot of spending, an awful lot of money going to 
government, but they're not seeing new jobs.
  Now we come to what I believe is the most profound piece of 
legislation that has come to the floor of this House in the last 100 
years. It's hard to say in the first 6 months of the new Congress that 
this could be the defining vote and the defining bill for this 
Congress, but I really, truly believe that this is the defining bill.
  The problems that this bill attempts to go after are the issues of 
climate change and cleaning up our air, and, secondly, to build a new 
alternative energy industry in the United States. Those are really the 
two issues. Well, I guess a third issue would be jobs. Those are the 
goals that this bill attempts to go after. But when you look at the 
structure that's being built, it defies anyone's imagination to believe 
that the Federal Government could create such an elaborate process to 
deliver on those three goals.
  I've got a chart here that goes through all of the agencies involved, 
all of the structures that are created under this bill. It's all being 
done, of course, by the Environmental Protection Agency. They are at 
the center of this.
  But if you look at all of the different agencies involved, you will 
see that we've got the Federal Energy Regulatory Commission involved. 
We've got the United States Department of Agriculture that's going to 
be involved. The Internal Revenue Service will be engaged in this bill 
as well. The Department of the Treasury. I wish I could tell you what 
FWS was, but somebody could probably tell me. We have the Commodity 
Futures Trading Commission that's going to be involved in helping to 
regulate this. The National Oceanic and Atmospheric Administration, the 
Weather Service, basically. The Department of Health and Human Services 
is going to be involved in putting this together. The Department of 
State will play a big role in making sure that we get cleaner air and 
green energy. We've got the Department of Energy, of course, the 
Department of Labor, the U.S. Army Corps of Engineers, the Bureau of 
Indian Affairs, and the Bureau of Land Management. All these Federal 
agencies are going to take part in trying to put this bill into action.
  But that's not all. Not even close. We've got the Offsets Integrity 
Advisory Board. We also have a Carbon Markets Oversight Interagency 
Working Group that is going to try to help control who gets these 
carbon credits and who doesn't, how they can be traded and how they 
can't, and where in the world these offsets are going to be.
  They don't have to be in the United States. We're going to see 
billions of American tax dollars being shipped around the world. 
Whether it's replanting forests in other parts of the world, they're 
going to help clean up our air. I'm sure our constituents want our 
money being shipped overseas to plant trees.
  But that's not all. That's not all. It's not even close. We've got 
the Consumer Refunds Fund that is going to be outlined here. We've got 
the International Reserve Allowance Program here. How about the 
domestic offset providers? We've got the offset traders and the 
national offset providers. We've got the Clean Vehicle Technical 
Advisory Board. We have a Carbon Capture Board. And it goes on and on 
and on.
  This elaborate government structure that will cost the American 
people several trillion dollars over the next 10 years, all in an 
effort to clean up our air, will help build a new alternative energy 
industry in the United States and help create jobs in our country. I 
don't believe there are hardly any people in America who believe that 
this giant government bureaucracy is going to be able to deliver on the 
three goals that you outline.
  And it's not just the cost, and it's not just the bureaucracy. 
Listen, there's not a Member in this body that doesn't want to improve 
the air quality in our country and around the world. There isn't a 
Member in this body who doesn't believe that speeding up the 
development of alternative sources of energy isn't good for America. No 
one. There's complete agreement on that.
  But do we need to go through all of this? Do we need to have a 
national energy tax on every person in America who would drive a car, 
who would flip on a light switch or who would buy an American-made 
product, because virtually every American-made product has an awful lot 
of energy in it.
  That's not enough. If you look at this bill and you look at the 
analysis of this bill, you'll see that two-and-a-half million jobs on 
average will be lost each and every year over the next 10 years as a 
result of this bill. Some of those people happen to reside in my 
district, in Middletown, Ohio, where AK Steel is headquartered. They 
make steel the old-fashioned way. They bring in iron ore, coal and 
limestone. You get it hot enough, you've got steel. The cost of their 
steel will increase 30 to 40 percent if this bill were to pass. And at 
a time when we're trying to help the American automobile industry get 
back on its feet, the last thing they're going to do is pay 30 or 40 
percent more for their steel.
  So what are they going to do? They're going to bring it in from 
China, they'll bring it in from India, who are not burdened under this 
regulatory scheme, nor are they burdened under our current 
environmental regulations. So what happens is, high-energy jobs in 
America are going to get shipped overseas at exactly the wrong time.
  The American people sent us here to help this economy, to get them 
back to work. This is the biggest job-killing bill that has ever been 
on the floor of the House of Representatives, right here, this bill, 
and I don't think that's what the American people want.
  But if our goals are to clean up the air, to build a alternative 
energy business in the United States, a thriving one, and to create 
jobs, there's a better way to do this, and it's the all-of-the-above 
strategy that we've been talking about in this Chamber for nearly a 
year. That is to say, we need to have more alternative sources, whether 
they be solar, wind, geothermal.
  We can produce those additional types of energy and help renew them. 
But, in the meantime, America needs energy to grow our economy, so we 
need to have more drilling for oil and gas in the United States. 
There's no question about it. We need to increase the supply of 
American-made energy so that we bring down the price.
  What we do in our bill is, we take all the royalties from the 
development of additional oil and gas reserves in the United States and 
we plow it back into renewable sources of energy. As a result, our bill 
puts more money into renewables and speeding up the development of 
renewables at a faster pace than the bill on the floor of the House 
today.
  That's not enough. We need to do all of the above. We need to develop 
clean coal technology. We need to be serious about nuclear energy. 
There's nothing in this bill before us that's going to allow us to 
produce nuclear energy in any kind of a quick way, or, frankly, any at 
all. But we all know it's the cleanest source of energy that we can 
have in the United States. So why shouldn't we do all of the above?
  Because here's what all-of-the-above does for us: It gives us cleaner 
air. It gives us lower energy prices. It really

[[Page 16734]]

does move us quickly away from our dependence on all the foreign 
sources of oil that we have to rely on today. And it will do more in a 
very simple way than this big complex bureaucracy that is being 
outlined in this bill.
  Why can't we do all of the above? Why do we have to try to establish 
this giant structure that attempts to put some cap in, but really 
doesn't, when we can do something simple that will help lower prices 
for Americans while cleaning up the air and moving us to alternative 
sources of energy. No, that's not what we're dealing with here today.
  And if all of this wasn't enough, I woke up this morning and realized 
that last night at 3:09 a.m., a 300-page manager's amendment was 
dropped into the hopper, at 3:09 a.m.

                              {time}  1745

  I have spent most of the day trying to look at this 309-page bill and 
trying to come up with and understand what this 309-page amendment to 
the 1,200-page bill really does? As I started to go through this, I 
didn't get past the first page, where on page 16, line 5 strike 1992 
and insert 1988, and on line 13 strike 1992 and insert 1988. This 
appears to deal with the hydropower, and I'm trying to figure out what 
is the impact of this date change? Nowhere in this manager's amendment 
can I find out what the impact of that is.
  Then we get to page 2, not from components of the National Wilderness 
Preservation System, Wilderness Study Areas, Inventoried Roadless Areas 
or old growth stands and late-successional stands. So does this mean 
that renewable biomass is not defined by what it is but rather where it 
comes from? And why was this change made at 3:09 a.m. this morning?
  We get to page 9, the President shall ensure that, of the total 
amount of electricity Federal agencies consume in the United States 
during each calendar year, the following percentage shall be renewable 
electricity.
  We are going to mandate to every Federal agency how much electricity 
they buy that comes from renewable sources. And in here we have this 
year, 2012, 6 percent, 2013, 6 percent, 2014 we go to 9\1/2\ percent, 
2016 we go to 13 percent. 2018 we go to 16\1/2\ percent. And 2020 
through 2039, 20 percent of the electricity that goes into every 
Federal agency has to come from renewable sources. Do we have any idea 
whether this is possible? I can't find the answer here.
  On Page 10 it says, contracts for renewable energy, a contract for 
the acquisition of electricity generated from a renewable energy 
resource for the Federal Government may be made for a period of not 
more than 20 years. Twenty-year contracts. What if the price of 
renewable energy goes down? Are taxpayers going to be stuck with a 
contract that is written today as opposed to what that contract could 
be negotiated for 10 years from now? I can't tell, because there is no 
answer here.
  Or we get on page 12, renewable biomass. The term ``renewable'' means 
any of the following. And it goes through of this language. Of course, 
there is nothing renewable in a National Wilderness Preservation System 
or a Wilderness Study Area or Inventoried Roadless Areas or old growth 
stands or late-successional stands except for dead, severely damaged or 
badly infested trees. Wasn't this the same language that we had on page 
2? And why is it being repeated again? I can't tell as I read through 
this.
  So we get to page 16, so that the vehicle or engine is capable of 
alternative fuel. First we are going to require now every car sold in 
America, it has to have an engine that is capable of operating on an 
alternative fuel. So what if you have a car that doesn't operate on a 
renewable fuel? Are we going to buy the car back from the American 
people? Are we going to reimburse them for their cost? I can't tell, 
because, again, this was dropped at 3:09 a.m., and no one probably has 
had a chance to read it.
  How about on page 24, there are authorized to be appropriated such 
sums as may be necessary to carry out this paragraph. It sounds like a 
blank check to me.
  Or on page 26, this section applies only to States located in the 
Western Interconnection and does not apply to States located in the 
Eastern Interconnection, to the States of Alaska or Hawaii or ERCOT. So 
are we going to have different rates for different parts of the country 
under this amendment that was filed at 3:09 a.m. this morning?
  Then we get to Page 30. The Federal Energy Regulatory Commission 
shall act as the lead agency for purposes of coordinating all 
applicable Federal authorizations and related environmental reviews. So 
now we have FERC is in charge of coordinating environmental reviews, as 
I read this. Is that what Greenpeace demanded be part of this bill? 
Then we get to page 34. Page 34, it says not later than 1 year after 
August 8, 2005--


                        Parliamentary Inquiries

  Mr. WAXMAN. Madam Speaker, I have a parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will suspend.
  Does the gentleman yield for a parliamentary inquiry?
  Mr. BOEHNER. I would be happy to yield to the gentleman.
  Mr. WAXMAN. The Republican leader was yielded the balance of the 
time, which I think amounted to around 4 or 5 minutes. He has talked 
for around 20. I know we have this ``magic'' minute that gives leaders 
a lot of extra time to speak, but I'm just wondering if there is some 
limit under the rules on the time that a leader may take, even though 
the time yielded was not 20 or 30 minutes.
  The SPEAKER pro tempore. It is the custom of the House to hear the 
leaders' remarks.
  Mr. WAXMAN. Further parliamentary inquiry.
  The SPEAKER pro tempore. Does the gentleman yield for a parliamentary 
inquiry?
  Mr. BOEHNER. I will be happy to yield to the gentleman.
  Mr. WAXMAN. I know it is the custom of the House to give a little 
extra latitude. Is there any outside limit to the amount of time a 
leader might take? And do we have historical records that might be 
broken tonight? Or is this an attempt to try to get some people to 
leave on a close vote?
  The SPEAKER pro tempore. It is the custom of the House to hear to the 
leaders' remarks.
  Mr. BOEHNER. Reclaiming my time, the gentleman has had his 30 years 
to put this bill together, and the House is going to spend a whopping 5 
hours debating the most profound piece of legislation to come to this 
floor in 100 years. And the chairman has the audacity to drop a 300-
plus-page amendment in the hopper at 3:09 a.m. this morning. And so I 
would ask my colleagues, don't you think the American people expect us 
to understand what is in this bill before we vote on it?
  So we get to page 34. Not 1 year after August 8, 2005. Now, wait a 
minute. One year later? One year after August of 2005? Wasn't that 3 
years ago? I'm just trying to understand what the gentleman has in his 
amendment.
  Then we get to page 36, high efficiency gas turbine research, 
development and demonstration. Now, I'm trying to figure out who 
inserted this broad new section of the bill that is covered nowhere in 
the underlying bill.
  Then we get to page 39, $65 million for each of the fiscal years 2011 
through 2014, $65 million for 3 years. And who is going to get this 
money? I can't tell in this amendment.
  And as we go through this, page 41, determine any geographic area 
within the contiguous United States that lacks a Federal power 
marketing agency. Because, you know, we can't move power around the 
country without a Federal power marketing agency. We do it today, but 
now we have to have a new government agency to do this. We are doing it 
already.
  Or same page, 41, the establishment of any new Federal lending 
authority, including authorization of additional lending authority for 
existing Federal agencies, not to exceed $3.5 billion per geographic 
area identified in subsection (a)(1). This is $3.5 billion in loans for 
each geographic area, but we don't know how many geographic areas are 
included or how many billions in total we are really talking about.

[[Page 16735]]

  How about on page 42, any source of funds, including Federal funds 
provided through the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, shall qualify as the building owner's 50 percent 
contribution. Now, let me make sure I get this straight. So now you can 
use federal money for non-Federal matching requirements. How much is 
all of this going to cost?
  Or on page 45--remember now, this is the amendment. This is not the 
bill. This is the amendment filed at 3:09 a.m. On Page 45, this section 
shall apply only to construction beginning after the date of enactment 
of this Act. For those of you who don't know it, all of California 
housing standards are now going to be imposed on every American 
community. You don't have the right to have your own building standards 
in your community or in your State. Hell, no, the Federal Government is 
going to tell you what they are. And guess what? We all get to have 
California standards. Who is going to pay the price for those new 
homes? How are we going to do affordable housing when we are pushing up 
the cost of houses? And while I'm at it, we have to have an energy 
rating for every home in America. In this bill, we require every home 
to have an energy rating. And if you are going to sell your house, 
guess what? You have to have a review, bring people in, have them check 
out your windows, your appliances, your hot water heater, your door, 
make sure that your house is energy efficient. And guess what if it 
isn't? You have got to bring it up to standards before you can sell it. 
Now what kind of bizarre notion is that?
  Well, we get to page 46 at the bottom, a plan for local governmental 
actions to be taken to establish and sustain local building code 
enforcement administration functions, without continuing Federal 
support, at a level at least equivalent to that proposed in the grant 
application. Do you all get that? It doesn't explain it. But here is 
what it is. The Federal Government is going to mandate all of these new 
standards on every house built in America. It is going to cost your 
local building department all kinds of money to enforce this and to 
revise their code. And when the money runs out, we are going to allow 
them to apply for a grant to the United States Government. I'm sure my 
constituents will love that.
  Page 48, each building code enforcement department receiving a grant 
under subsection (a) shall empanel a code administration and 
enforcement team consisting of at least one full-time building code 
enforcement officer, a city planner, and a health planner or similar 
officer.
  Now I have some big towns in my district. Hamilton, Middletown and 
Westchester can probably afford this new enforcement. But I can take 
you to Chickasaw, Mercer County, in my district. They don't have one 
full-time person that works for the village. Not one. Look at the 
mandate on every city and village in America right here in this bill.
  So that we are not only going to tell you what the codes are going to 
be. But we are going to tell you how many people you need to hire to 
enforce this in this section of this code. See, we actually did take 
time, most of today, trying to understand what was in here.
  How about on page 53, solar energy systems building permit 
requirements for receipt of community development block grants. So what 
are we doing here to amend the community development block grant 
program? Are we going to impose global warming requirements on all the 
cities who get CDBG monies from us? That is what it appears to say to 
me.

                              {time}  1800

  Or on page 54, any metropolitan city or urban county, during such 
fiscal year the cost of any permit or license, for construction or 
installation of any solar energy system for any structure, that is 
required by the metropolitan city or urban county, or by any other 
political subdivision of such city or county complies with paragraph 
(2).
  So now we are going to tell them what to charge for their building 
permits as well in every city in America.
  Then we get to page 56. The Secretary of Energy shall issue 
regulations to prohibit any private covenant, contract provision, lease 
provision, homeowners' association rule or bylaw.
  Let me read this again: The Secretary of Energy here in Washington, 
DC, shall issue regulations to prohibit any private covenant, contract 
provision, lease provision, homeowners' association rule or bylaw. Just 
for those of you who didn't think there might not be a lot of 
government bureaucracy in this bill.
  We get to page 63. The amount necessary to change consumer behavior 
to purchase water efficient products and services. So now--let me read 
this again and make sure that I am right. The amount necessary to 
change consumer behavior to purchase water efficient products and 
services. So we are going to provide the American people with money in 
order to change their behavior so they will buy goods and services that 
they don't want to buy.
  I wonder how much that will cost.
  Page 64, subsection 2, to create jobs through the retooling and 
expansion of manufacturing facilities to produce clean energy 
technologies to create jobs. So how many jobs is this going to create? 
Will it replace the 2.5 million jobs that will be lost each year as a 
result of this bill? I can't tell.
  Now going to page 68, the Secretary shall award grants to States to 
establish revolving loan funds to provide loans to small and medium-
sized manufacturers. So who is going to compensate manufacturers for 
putting them out of business with more loans?
  Let me get to page 70. In particular, where mass layoffs have 
resulted in a precipitous increase in unemployment. So we have a 
provision in here that recognizes that millions of American jobs are 
going to be lost; but don't worry, don't worry, we are going to extend 
your unemployment. Most of my constituents who are unemployed don't 
want more unemployment. They want a job, and this is going to kill 
them.
  I hate to do this to all of you, I do. I hate to do this, but when 
you file a 300-page amendment at 3:09 in the morning, somebody needs to 
work on it, and I worked on it today and I want to make sure that 
everybody understands what is in this 300-page amendment.
  Page 76. Certification by Hollings Manufacturing Extension Center. A 
Hollings Manufacturing Extension Center or other entity designated by 
the Secretary for purposes of providing certification under clause so 
and so and so and so.
  So now, why are we singling out one company, one company, and where 
did this company come from?
  Further down the page on page 76, Repayment upon relocation outside 
the United States. In general. If a person receives a loan under 
paragraph (1) to finance the cost of reequipping, expanding, or 
establishing a manufacturing facility as described in subsection 
(c)(1)(A) or to reduce the energy intensity of a manufacturing facility 
and such person relocates the production activities of such 
manufacturing facility outside the United States.
  So we recognize here that we are going to force companies to take 
their jobs and ship them overseas. It is right here. It is right here 
in the bill, and I am glad it is recognized by my colleagues.
  Then we go to page 80, to support manufacturers in their 
identification of and diversification to new markets. Another admission 
that the bill before us is going to kill millions of small businesses 
and even tens of millions of jobs, so we have to have an effort in here 
to support manufacturers in their identification and diversification 
into new markets.
  Then we get to page 83. Consumer Behavior Research. The Secretary of 
Energy is authorized to establish a research program to identify the 
factors affecting consumer actions to conserve energy and make 
improvements in energy efficiency. Through the program the Secretary 
will make grants to public and private institutions of higher education 
to study the effects of consumer behavior on total energy use.
  Do we really need to spend government money to do a study on why 
people don't want to pay twice the cost and get half the quality?

[[Page 16736]]

  Page 87, the development of a global framework for the regulation of 
greenhouse gas emissions from civil aircraft that recognizes the 
uniquely international nature of the industry and treats commercial 
aviation industries in all countries fairly.
  Will this include China and India? I can't tell from the amendment 
that we have in front of us.
  On page 92, we want to make sure that the structure have appropriate 
electrical outlets with the facility and capacity to recharge a 
standard electric passenger vehicle, including an electric hybrid 
vehicle, where such vehicle would normally be parked.
  Oh, no, we are not just going to take the California standard and 
impose it on every community in America, oh, no. Now we are going to 
tell you where the electric outlets are going to be and how big they 
have to be to charge a hybrid vehicle.
  I just don't understand whether this would apply to nursing homes 
where there are no cars.
  Oh, here we are, page 96. Existing structures. For existing 
structures, a reduction in energy consumption from the previous level 
of consumption for the structure, as determined in accordance with 
energy audits performed both before and after any rehabilitation or 
improvements undertaken to reduce such consumption, that exceeds the 
reduction necessary for compliance with the energy efficiency standards 
under subsection (a) then in effect and applicable to existing 
structures.
  So not only are we going to tell every community in America what the 
building codes are going to be, what the efficiency standards are going 
to be, but if you make changes to your house, you have to have another 
study done to show how much increase in energy efficiency was gained. 
That will help sell a lot of new houses and a lot of old ones.
  Page 97, for manufactured housing, energy star rating with respect to 
fixtures, appliances, and equipment in such housing, as such standard 
or successor standard is in effect for purposes of this section.
  Please, is there anything that we are not regulating in this bill?
  How about page 105. Waive or modify any existing statutory or 
regulatory provision that would otherwise impair the implementation or 
effectiveness of the demonstration program under this section, 
including provisions relating to methods for rent adjustments, 
comparability standards, maximum rent schedules, and utility 
allowances; notwithstanding the preceding provisions of this paragraph, 
the Secretary may not waive any statutory requirement relating to fair 
housing, nondiscrimination, labor standards, or the environment.
  Now in implementing this demo program, rising rent can be dismissed 
out of hand, but labor standards or the environment cannot, as I read 
it.
  Let me go to page 107. No amounts made available under the American 
Recovery and Reinvestment Act of 2009 can be used to carry out the 
demonstration program under this section.
  So if no stimulus funds can be used, and the majority claims stimulus 
funds are for job creation, is this demo going to create one new job? I 
don't think so.
  Page 112, additional credit for Fannie Mae and Freddie Mac housing 
goals for energy-efficient and location-efficient mortgages. Oh, yeah. 
Oh yeah, everybody listen up here. It is not enough that we have huge 
problems with Fannie Mae and Freddie Mac, they are at the core of the 
credit meltdown we have had in our country, but we are going to give 
them a little more money so they can have goals for energy-efficient 
and location-efficient mortgages. Now we are going to tell Fannie Mae 
and Freddie Mac what kind of mortgages we are going to have in the 
marketplace.
  How about page 113. Supports housing that complies with enhanced 
energy efficiency and conservation standards, or the green building 
standards, under section 284 of such Act.
  This is the Federal Government using Fannie Mae and Freddie Mac to 
impose new Federal building codes and standards across the country.
  Let me go to page 114. The Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992, as amended, by the Federal Housing 
Finance Regulatory Reform Act of 2008.
  If this is supposed to be about energy, why are we further bogging it 
down with trying to solve problems for Fannie Mae and Freddie Mac?
  Page 115, the term ``energy-efficient mortgage'' means a mortgage 
loan under which the income of the borrower, for purposes of 
qualification for such loan, is considered to be increased by not less 
than $1 for each $1 of savings projected to be realized by the borrower 
as a result of cost-effective energy-saving designs.
  I'm sure that will create a lot of jobs.
  And then we get to page 141, the Cranston-Gonzalez National 
Affordable Housing Act is amended. Why are we amending the Cranston-
Gonzalez National Affordable Housing Act? I thought we were doing an 
energy bill here.
  Page 142, use of building materials and methods that are healthier 
for residents of the housing, including the use of building materials 
that are free of added known carcinogens that are classified as Group 1 
Known Carcinogens by the International Agency for Research on Cancer.
  We are going to outline building materials as well, it appears.
  Then we have a grant program to increase the sustainability of low-
income community development capacity. We are going to provide loans, 
grants, or predevelopment assistance to eligible community development 
organizations or qualified youth service and conservation corps to 
carry out energy efficiency improvements.
  I just want to know if ACORN would qualify for these grants.
  And on page 146, we have another authorization here. There are 
authorized to be appropriated to the Secretary to carry out this 
section $10 million for each of the fiscal years 2010 through 2014.
  So all the Members know, we have spent all of the year's income by 
April 16th. Everything we spend here, we have to borrow from our kids 
and grandchildren and the Chinese and everybody else who wants to loan 
us money.
  Page 148, 25 points, in the case of any proposed plan, or portion 
thereof, consisting of new construction. So now we have a new 
government formula to determine winners and losers when it comes to the 
building of new houses.
  Page 149, at the bottom, for purposes of this paragraph, the 
Secretary shall identify rating systems and levels for green buildings 
that the Secretary determines to be the most likely to encourage a 
comprehensive and environmentally sound approach to ratings and 
standards for green buildings.
  So the government is going to decide what is green, not the American 
people.
  In identifying these green rating systems, the Secretary has to take 
into consideration the ability and availability of assessors and 
auditors to independently verify the criteria and measurement of 
metrics at the scale necessary to implement this paragraph.
  She also has to improve indoor and outdoor environmental quality 
through enhanced indoor and outdoor air quality, thermal comfort, 
acoustics, outdoor noise pollution, day lighting, pollutant source 
control, sustainable landscaping, and use of building system controls 
and low- or no-emission materials, and such other criteria as 
determined by the Secretary.
  So why are we giving the Secretary all of this authority under this 
Act to determine virtually everything?

                              {time}  1815

  The Secretary may, by regulation, adopt and apply, for purposes of 
this paragraph, future amendments and supplements to, and editions of, 
the national Green Communities criteria checklist, any standard or 
standards that the Secretary has determined to be substantially 
equivalent to such checklist, and the green building ratings systems.
  So a lot of power for the new Secretary without any congressional 
oversight.
  Now I really hate to do this, but when you file a 300-page amendment 
at 3:09 a.m., the American people have a

[[Page 16737]]

right to know what's in this bill and they have a right to know what 
we're voting on.
  Let me get to the bottom of page 155:
  Revision of Appraisal Standards. Each Federal financial institutions 
regulatory agency shall, not later than 6 months after the date of the 
enactment of this Act, revise its standards for the performance of real 
estate appraisers in connection with federally related transactions 
under the jurisdiction of the agency to comply with the requirement 
under the amendments made by paragraph (1) of this subsection.
  So now we have to retrain every appraiser in America so that they 
understand this law, so that they know how to properly appraise the 
value of someone's property. And they need to meet the requirements 
established pursuant to subsection (f) for qualifications regarding 
consideration of any renewable energy sources, or energy efficiency.
  So every appraiser is not only going to be retrained but now we're 
going to have to send them all to school.
  Let me get to page 157: The Appraisal Subcommittee--another new part 
of the bureaucracy--shall establish requirements for State 
certification of State certified real estate appraisers and for State 
licensing of State licensed appraisers, to ensure that appraisers are 
qualified to consider, in determining the value of a property, any 
renewable energy sources for, or energy efficiency or energy-conserving 
improvements or features of, the property.
  Interesting.
  And the Secretary--on page 158--shall require the Housing Assistance 
Council to encourage each organization that receives assistance from 
the Council with any amounts made available from the Secretary to 
provide that any structures and buildings developed or assisted under 
projects, programs, and activities funded with such amounts complies 
with the energy efficiency standards under section 284(a) of this 
subtitle.
  More power for a lot of unelected bureaucrats.
  Then on page 160, the middle of the page, it says:
  In General. The Secretary shall use amounts in the Fund to provide 
loans to States and Indian tribes to provide incentives to owners of 
single-family and multifamily housing, commercial properties, and 
public buildings to provide renewable energy sources, and it goes on 
and gives a whole long list. But there is no appropriation in here for 
it.
  And then on page 164 we authorize another $5 billion and there is no 
idea where this money comes from.
  Page 165. Green Banking Centers. It's not going to do houses and 
commercial properties and multifamily housing. Now we're going to have 
Green Banking Centers.
  The Federal banking agencies shall prescribe guidelines encouraging 
the establishment and maintenance of ``green banking'' centers by 
insured depository institutions to provide any consumer who seeks 
information on obtaining a mortgage, home improvement loan, home equity 
loan, or renewable energy lease with additional information.
  Are you kidding me? I've heard of blackmail, but now I know what 
greenmail really is.
  On page 170 at the top of the page, section 299F.
  Government Accountability Office Reports on Availability of 
Affordable Mortgages.
  Really. After we drive the price of every mortgage up in America, 
we're going to have them do a report on affordable mortgages. Guess 
what--they're going to be a hell of a lot more expensive.
  You get to page 173.
  The Secretary of Housing and Urban Development may make commitments 
to a guarantee under this section and may guarantee the repayment of 
the portions of the principal obligations of eligible mortgages that 
are used to finance eligible sustainable building elements for the 
housing that is subject to the mortgage.
  So now we're not only going to guarantee the mortgage but we're going 
to guarantee the improvements to the property as well.
  Page 180. And I would direct all of your attention if you have a copy 
of this to section 3 of that page:
  The full faith and credit of the United States is pledged to the 
payment of all guarantees issued under this section with respect to 
principal and interest.
  The term ``green portion'' means, with respect to an eligible 
mortgage, the portion of the mortgage principal referred to in 
subsection (b)(2) that is attributable, as determined in accordance 
with regulations issued by the Secretary.
  So we've got a new government program and we're going to guarantee 
this with the full faith and credit of the United States.
  Then on page 184:
  On April 1 (or a later date established by the administrator under 
subsection (j)) of the calendar year in which a term offset credit 
expires, the owner or operator holds for purposes of finally 
demonstrating compliance, an allowance or a domestic offset credit.
  I read it because I cannot tell you what that means.
  On page 190 at the bottom of the page it talks about algae.
  And on page 189 we've got Renewable Biomass. This is the third 
definition of Renewable Biomass that we have just in the manager's 
amendment, much less in the bill.
  This caught my attention, at the bottom of page 191, section 3, for 
vintage year 2012.
  Are we talking about wine?
  Then we get to page 208. Carbon Derivative Markets. Now we've already 
heard enough about credit default swaps, but I think most of you know 
that under this section, the Commodity Exchange Act is amended by 
striking ``or an agricultural commodity'' and inserting ``an 
agricultural commodity, or any emission allowance, compensatory 
allowance, offset credit, or Federal renewable electricity credit 
established or issued under this Act.''
  So now we're going to let those governed under the CFTC trade these 
credits with others around the world.
  And on page 209 it talks about the effect of derivatives regulatory 
reform legislation. Upon passage of this legislation that includes 
derivatives, regulatory reform, sections 351, 352, 354, 355, 356 or 357 
shall be repealed.
  Any idea of the derivatives regulations that we're repealing in this 
bill? You probably didn't know we were doing that.
  Then on page 210:
  To prevent an increase in greenhouse gas emissions in countries other 
than the United States--I presume that means countries like India and 
China--to induce foreign countries, and, in particular, fast-growing 
developing countries, to take substantial action with respect to their 
greenhouse gas emissions.
  India and China have made it perfectly clear to every one of us that 
they have no interest and will not go down this path.
  It further goes on to ensure that the measures described in subpart 2 
are designed and implemented in a manner consistent with applicable 
international agreements to which the United States is a party.
  The very structure of the border provisions, however, makes this 
impossible to achieve. The Wall Street Journal said the other day and 
suggested that this bill really could start a trade war and that if we 
begin to try to impose our bureaucracy on other countries, we could 
just have that.
  Let me get to page 225. Distribution of Emission Allowance Rebates. 
Further down the page, it says, Shall be pursuant to the entity's 
indirect carbon factor as calculated under subsection (b)(3).
  Can anybody tell me how to calculate an indirect carbon factor or 
what an indirect carbon factor is?
  Then we get to page 226. That more than 85 percent of United States 
imports for that sector are produced or manufactured in countries that 
have met one of the criteria in that section, then the 10-year 
reduction schedule set forth in this subsection shall begin in the next 
vintage year.
  So now we're going to try to control imports from countries based on 
what they're doing with regard to their energy policy.

[[Page 16738]]

  Use of Other Data to Determine Factor, page 231. Where it is not 
possible to determine the precise electricity emissions intensity 
factor for an entity using the methodology in clause (i). In what 
instances would it not be possible to determine what that is?
  Then we get to page 233:
  In each eligible industrial sector every 4 years, using an average of 
the four most recent years of the best available data. For purposes of 
the lists required to be published no later than February 1, 2013, the 
Administrator shall use the best available data for the maximum number 
of years, up to 4 years, for which data are available.
  Why every 4 years? What's this data used for? Then it goes on: The 
Administrator shall limit the average direct greenhouse gas emissions 
per unit output, calculated under paragraph (4), for any eligible 
industrial sector to an amount that is not greater than it was in any 
previous calculation under this subsection.
  So what is the cost of this provision?
  Or on page 234: The Administrator shall use data from the greenhouse 
gas registry established under section 713. How much is this going to 
cost?
  Promoting International Reductions in Industrial Emissions, page 236. 
Congress finds that for the purposes of this subpart, as set forth in 
section 761(c), can be most effectively addressed and achieved through 
agreements negotiated between the United States and foreign countries.
  It is the policy of the United States to work proactively under the 
United Nations Framework Convention on Climate Change, and in other 
appropriate fora, to establish binding agreements, including sectoral 
agreements, committing all major greenhouse gas-emitting nations to 
contribute equitably to the reduction of global greenhouse emissions.
  The bottom line of all of this is all pain for United States citizens 
and no gain.
  Then we get to page 237: The President shall provide a notification 
on climate change described in paragraph (2) to each foreign country 
the products of which are not exempted under section 768.
  This is less than a fig leaf here. They're trying to pretend that 
this notification will satisfy the consultation required by the WTO 
rules. It won't end there and it's going to result in retaliation 
against United States exports.
  Then we get further down on that page: Requesting the foreign country 
to take appropriate measures to limit the greenhouse gas emissions in 
those countries.
  So if they're really nice they won't have to but if we can, we can 
force them to adopt our bizarre regulatory scheme.
  Then we get to page 238. United States Negotiating Objectives with 
Respect to Multilateral Environmental Negotiations.

                              {time}  1830

  So here we are telling the administration what their objectives are 
going to be as they negotiate environmental issues with other countries 
around the world.
  Presidential Reports, page 239: Not later than January 1, 2017, and 
every 2 years thereafter, the President shall submit a report to 
Congress on the effectiveness of the distribution of emission allowance 
rebates under subpart 1 in mitigating carbon leakage in eligible 
industrial sectors.
  Let me go to page 260: Modification of Earned Income Credit Amount 
For Individuals With No Qualifying Children.
  Why does this bill neglect middle class families in America? Why is 
it that we're only going to help some people who will qualify for the 
earned income credit for individuals with no qualifying children?
  Further down here it says: the Secretary determines experienced a 
reduction in purchasing power as a result of the provisions of this 
act.
  That's a flat-out admission that every American is going to pay more 
for all of their energy. And it goes on and on and on.
  Ladies and gentlemen, does this give you some idea of why the 
American people think their Congress is out of touch? The idea that the 
Federal Government can create this giant bureaucracy to try to control 
how much CO2 gets into atmosphere.
  We know that if we were to do our all-of-the-above energy strategy, 
we'd see renewable sources of energy on the scene, available, producing 
jobs more quickly than under the underlying bill. We know that under 
our bill, you could actually have nuclear energy plants being built, 
cleaning up the air at a much faster rate than the underlying bill.
  But there's really a big underlying difference between our approach 
and the approach of my colleagues on the other side of the aisle, and 
that is trusting the American people. If we give the American people 
the right incentives, they'll make the right decisions. But that's not 
what we have on the floor today. What we have on the floor today is 
typical big government. And the fight that we have between the two 
sides of the aisle really boils down to one word: It boils down to 
freedom. The freedom to allow the American people to live their lives 
without all of these extra taxes and all of this bureaucracy.
  And I would just say to my colleagues, I did my best to try to get 
through the 300-page amendment that was filed at 3:09 in the morning. 
Obviously somebody knew this was coming, but it wasn't filed until 3:09 
this morning.
  This is not the way we should be doing legislation. The American 
people expect more of us. And you know what? They deserve a lot more 
from us.
  So I would say to my colleagues let's not go down this path of 
increasing taxes on every single American. Let's not go down the path 
of moving millions of jobs to China, India, and other countries around 
the world. Let's trust the American people. Let's give them our all-of-
the-above energy act and allow America to flourish, to allow jobs to 
flourish, and, most importantly, to allow freedom to flourish.
  Mr. WAXMAN. Madam Speaker, the minority leader was yielded 2\1/2\ 
minutes. Could you tell us how much time he consumed?
  The SPEAKER pro tempore. The gentleman used a customary amount of 
time.
  Mr. WAXMAN. Well, Madam Speaker, the 2\1/2\ minutes was extended to 
over an hour, and this is from the same party that had a 15-minute roll 
call extended into 3 hours while they tried to twist the arms of their 
own people.
  Madam Speaker, to close the debate, I wish to yield the balance of my 
time, and I presume it will not be an hour or two, to our distinguished 
Speaker because of whose leadership we have the attempt to do something 
that the Republicans neglected, and that's to help our country deal 
with our energy problems, Speaker Nancy Pelosi.
  Ms. PELOSI. I thank the gentleman for yielding.
  Madam Speaker, I want to join those who have sung your praises as a 
distinguished presider over hundreds of hours of debate in the House of 
Representatives. Your service here, your leadership here will long be 
remembered and be an inspiration to us. Katherine will be very missed, 
but now she's off to college. Thank you, Ellen Tauscher, for being such 
a great chairwoman and presider over the House of Representatives.
  Madam Speaker, I also wish to acknowledge the leadership of our 
chairmen, who so ably brought this important legislation, this historic 
and transformational legislation, to the floor: Chairman Waxman of the 
Energy and Commerce Committee, Chairman Markey of the Energy Security 
and Climate Change Committee, Chairman Rangel of the Ways and Means 
Committee, and Chairman Peterson of the Agriculture Committee. We thank 
them for their leadership and for giving us this opportunity today.
  Madam Speaker, no matter how long this Congress wants to talk about 
it, we cannot hold back the future. And so in order to move on with the 
future, I want to yield back my time, submit my statement for the 
Record, and urge my colleagues to vote for this important legislation.
  And when you do, just remember these four words for what this 
legislation means: jobs, jobs, jobs, and jobs.

[[Page 16739]]

  Let's vote for jobs.
  Madam Speaker, today the House has an opportunity to pass historic 
and transformative legislation: the American Clean Energy and Security 
Act.
  I would like to acknowledge the authors of the legislation: Chairman 
Waxman of the Committee on Energy and Commerce and Chairman Markey of 
the Select Committee on Energy Security and Climate Change.
  I would also like to acknowledge: Chairman Collin Peterson of the 
Agriculture Committee for bringing the priorities of America's farmers 
to this bill and Chairman Rangel who helped ensure that this bill is 
fiscally responsible and fully paid for.
  And I would like to acknowledge the many staff who worked so hard on 
this legislation.
  In his inaugural speech, President Obama called upon us to, ``harness 
the sun and the winds and the soil to fuel our cars and run our 
factories.''
  One week and one day later, we did just that. We passed the American 
Recovery and Reinvestment Act--the single largest investment in history 
in clean energy--with over $69 billion for new investments in clean 
energy.
  Shortly thereafter, we passed the Omnibus spending bill, with 
significant investments in advanced energy research and the labs and 
equipment necessary to perform the next generation of advanced energy 
research.
  We passed the Budget, which included a 10% increase in investment in 
clean energy and energy efficiency.
  This was building upon the work of the last Congress: The Farm Bill 
was the first in history to include a real investment in energy 
independence, with over $1 billion to leverage renewable energy 
industry investments in new technologies and new feedstocks.
  And the historic and bipartisan energy bill signed by President Bush 
increased fuel efficiency standards for vehicles for the first time in 
30 years and redirected this country's energy policy toward clean, 
renewable energy.
  Creating a new energy policy and addressing the global climate crisis 
is: Energy independence is: a national security issue by reducing our 
dependence on foreign oil; an environmental and health issue; it is a 
moral issue; and it is an economic issue for America's families.
  There are four words that can describe this bill: jobs, jobs, jobs, 
and jobs.
  Madam Speaker, we debate this legislation as millions of Americans 
are struggling in this economy. This is our moment to transform our 
economy and create jobs.
  This is the moment when we can unleash private sector investment in 
clean energy to create millions of new jobs and make America the global 
innovation leader. It will promote clean energy technology--made in 
America. It will put America in the lead in the global competition.
  As we rebuild America in a green way, we will create jobs that cannot 
be shipped overseas. We are creating a framework in which innovation 
can occur and that gives business certainty that we are moving to a 
clean energy economy. That will unleash innovation, investment, and 
venture capital to drive new technologies into the market.
  America's farmers will fuel America's energy independence. They will 
do so with carbon-offsetting crops and forests, and biofuel and wind 
farms to repower America.
  This historic legislation is the product of months of consensus 
building to achieve an effective and affordable transition to a clean 
energy future.
  I am so pleased that the diverse coalition supporting this bill 
includes everyone from: The Union of Concerned Scientists to the 
Evangelical Climate Initiative and the U.S. Conference of Catholic 
Bishops; from the business community to labor organizations, from ALCOA 
to the U.S. Steelworkers of America; from the U.S. Conference of Mayors 
to members of the U.S. Climate Action Partnership, a coalition of 
business and nonprofit groups.
  Today, we have an opportunity to lead America toward an effective and 
affordable transition to a clean energy future. It is a moment we 
cannot afford to miss. We have a responsibility to create jobs and make 
America more secure, protect the health of our citizens, and honor our 
moral responsibility to our children and our future generations.
  Vote to create jobs. Let's put this Congress on the right side of the 
future. Vote yes on the American Clean Energy and Security Act.
  I urge my colleagues on both sides of the aisle to protect God's 
beautiful creation by supporting this legislation.

  Organizations Expressing Support for House Passage of The American 
                     Clean Energy and Security Act


                Electric Utilities and Energy Companies

       Duke Energy
       Exelon
       PG&E Corporation
       FPL Group
       Austin Energy
       National Grid
       PNM Resources
       Avista
       NRG Energy Inc.
       PSE+G
       Edison Electric Institute
       ConEdison
       Constellation Energy
       Entergy
       Austin Energy
       Renewable Fuels Assn.


                 Manufacturing, Industry and Corporate

       GE
       Dow Chemical
       Dow Corning
       National Semiconductor
       HP
       Business Council on Sustainable Energy
       Solar Power Industries
       Alcoa
       John Deere
       Alstom Power
       Johnson & Johnson
       Siemens
       Rio Tinto
       BP Solar
       Symantec
       Applied Materials
       eBay
       Levi Strauss
       Nike
       Starbucks
       Aspen/Snowmass
       Seventh Generation
       Clif Bar
       Kleiner Perkins Caufield & Buyers
       Calpine Corp.
       Genpower
       BluewaterWind


                                 Labor

       Steelworkers
       Boilermakers
       Communications Workers
       Laborers International
       Services Employees
       Utilities Workers Union
       Building and Construction Trades


                          Farm and Agriculture

       National Farmers Union
       American Farmland Trust
       Growth Energy


                    Community, Faith and Environment

       U.S. Conference of Mayors
       Environmental Defense Fund
       League of Women Voters
       National Parks Conservation Assn.
       National Wildlife Federation
       National Resource Defense Council
       The Wilderness Society
       American Institute of Architects
       World Resources Institute
       Pew Center on Global Climate Change
       The Nature Conservancy
       Sierra Club
       HipHop Caucus
       Center for American Progress
       Latino Coalition
       Union of Concerned Scientists
       National Congress of American Indians
       World Wildlife Fund
       American Public Health Association
       Defenders of Wildlife
       League of Conservation Voters
       Pew Environment Group
       National Audubon Society
       Renewable Fuels Assn.
       American Chemical Society
       American Rivers
       Clean Water Action
       Earthjustice
       Environment America
       International Forum on Globalization
       Oxfam Oceana
       Physicians for Social Responsibility
       Jewish Council for Public Affairs
       Izaak Walton League of America
       Baptist Pastors and Theologians
       Woods Hole Research Center/20 eminent scientists and 
     leaders
       United Nations Foundation
       The Episcopal Church
       United States Conf. of Catholic Bishops
       Catholic Relief Services
       Evangelical Climate Initiative
       National Council of Churches
       National Assn. of Clean Air Agencies
       CARE
       Trout Unlimited
       United Methodist Church-General Board of Church & Society
       Evangelical Lutheran Church in America
       Climate Communities/ICLEI-Local Governments for 
     Sustainability USA

  Mr. WOLF. Madam Speaker, our country has always been the world's 
innovation leader, and I believe innovation and not taxation must be 
the answer to the energy challenges we face.
  That's why I support the Forbes amendment which would substitute this 
bill with a new Manhattan project for energy independence, bringing 
together the best and brightest minds of a new generation of 
scientists, engineers and researchers in a unified national challenge 
just as we did with the original Manhattan project in World War II.
  Like the first project, which was launched to ensure the security of 
our country, today our national security depends on our ability to 
produce reliable, cost-effective and environmentally friendly sources 
of energy to fuel our economy.

[[Page 16740]]

  This project would award significant cash prizes to the first person 
or entity to achieve set energy goals, such as doubling car fuel 
efficiency to 70 mpg while keeping vehicles affordable, cutting home 
and business energy usage in half, making solar power work at the same 
cost as coal, making the production of biofuels cost-competitive with 
gasoline, safely and cheaply storing carbon emissions from coal-powered 
plants, safely storing or neutralizing nuclear waste, and producing 
usable electricity from a nuclear fusion reaction.
  Just like the challenge of the space program to put a man on the moon 
in a decade, I believe by working together, a new Manhattan project 
could transform our nation's energy security. But the ``cap-and-trade'' 
plan the House considered is the wrong solution at the wrong time. We 
can do better and I think this alternative is a better solution.
  The SPEAKER pro tempore. The question is on the amendment in the 
nature of a substitute offered by the gentleman from Virginia (Mr. 
Forbes).
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. FORBES. Madam Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 172, 
noes 256, not voting 5, as follows:

                             [Roll No. 476]

                               AYES--172

     Aderholt
     Akin
     Alexander
     Altmire
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Barrow
     Bartlett
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boustany
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carney
     Carter
     Cassidy
     Castle
     Chaffetz
     Coble
     Coffman (CO)
     Cole
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dreier
     Duncan
     Ehlers
     Emerson
     Fallin
     Fleming
     Forbes
     Fortenberry
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Hensarling
     Herger
     Hoekstra
     Holden
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McHugh
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Myrick
     Neugebauer
     Nunes
     Olson
     Paul
     Paulsen
     Pence
     Petri
     Pitts
     Platts
     Poe (TX)
     Posey
     Putnam
     Radanovich
     Rehberg
     Reichert
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Royce
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden
     Wamp
     Waters
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (AK)
     Young (FL)

                               NOES--256

     Abercrombie
     Ackerman
     Adler (NJ)
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Broun (GA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carson (IN)
     Castor (FL)
     Chandler
     Childers
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Foster
     Foxx
     Frank (MA)
     Fudge
     Garrett (NJ)
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Heinrich
     Heller
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Jordan (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Massa
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Perriello
     Peters
     Peterson
     Pingree (ME)
     Polis (CO)
     Pomeroy
     Price (GA)
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Richardson
     Rodriguez
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Teague
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Wexler
     Wilson (OH)
     Woolsey
     Yarmuth

                             NOT VOTING--5

     Flake
     Hastings (FL)
     Moran (VA)
     Sullivan
     Wu

                              {time}  1859

  Messrs. ADLER of New Jersey, PATRICK J. MURPHY of Pennsylvania, 
BERMAN, McMAHON, and Mrs. MALONEY changed their vote from ``aye'' to 
``no.''
  Messrs. McHENRY and HOLDEN changed their vote from ``no'' to ``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. WAXMAN. Madam Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on passage will be followed by a 5-minute vote on approval 
of the Journal, if ordered.
  The vote was taken by electronic device, and there were--ayes 219, 
noes 212, not voting 3, as follows:

                             [Roll No. 477]

                               AYES--219

     Abercrombie
     Ackerman
     Adler (NJ)
     Andrews
     Baca
     Baird
     Baldwin
     Bean
     Becerra
     Berkley
     Berman
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Bono Mack
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carson (IN)
     Castle
     Castor (FL)
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Courtney
     Crowley
     Cuellar
     Cummings
     Davis (CA)
     Davis (IL)
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Doyle
     Driehaus
     Edwards (MD)
     Ellison
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Fudge
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Heinrich
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kirk
     Klein (FL)
     Kosmas
     Kratovil
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo

[[Page 16741]]


     Loebsack
     Lofgren, Zoe
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McHugh
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Michaud
     Miller (NC)
     Miller, George
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murtha
     Nadler (NY)
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Pelosi
     Perlmutter
     Perriello
     Peters
     Peterson
     Pingree (ME)
     Polis (CO)
     Price (NC)
     Quigley
     Rangel
     Reichert
     Reyes
     Richardson
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stupak
     Sutton
     Tauscher
     Teague
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wexler
     Woolsey
     Wu
     Yarmuth

                               NOES--212

     Aderholt
     Akin
     Alexander
     Altmire
     Arcuri
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Barrow
     Bartlett
     Barton (TX)
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Boozman
     Boren
     Boustany
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carney
     Carter
     Cassidy
     Chaffetz
     Childers
     Coble
     Coffman (CO)
     Cole
     Conaway
     Costa
     Costello
     Crenshaw
     Culberson
     Dahlkemper
     Davis (AL)
     Davis (KY)
     Davis (TN)
     Deal (GA)
     DeFazio
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Donnelly (IN)
     Dreier
     Duncan
     Edwards (TX)
     Ehlers
     Ellsworth
     Emerson
     Fallin
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Hoekstra
     Holden
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kirkpatrick (AZ)
     Kissell
     Kline (MN)
     Kucinich
     Lamborn
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     Massa
     Matheson
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McIntyre
     McKeon
     McMorris Rodgers
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Minnick
     Mitchell
     Mollohan
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Nye
     Olson
     Ortiz
     Paul
     Paulsen
     Pence
     Petri
     Pitts
     Platts
     Poe (TX)
     Pomeroy
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rahall
     Rehberg
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Royce
     Ryan (WI)
     Salazar
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Souder
     Stark
     Stearns
     Tanner
     Taylor
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Visclosky
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--3

     Flake
     Hastings (FL)
     Sullivan

                              {time}  1917

  Mr. GOHMERT changed his vote from ``aye'' to ``no.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________