HR 823 IH
110th CONGRESS
1st Session
H. R. 823
To authorize Federal agencies and legislative branch offices to
purchase greenhouse gas offsets and renewable energy credits, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
February 5, 2007
Mr. WELCH of Vermont introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the Committees
on House Administration and Energy and Commerce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
A BILL
To authorize Federal agencies and legislative branch offices to
purchase greenhouse gas offsets and renewable energy credits, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. AUTHORIZATION TO PURCHASE OFFSETS AND CREDITS.
(a) Federal Authorities- Subject to the requirements of this Act, each
executive agency (as defined in section 105 of title V of the United States
Code) and each legislative branch office is authorized to use appropriated
funds to purchase either or both of the following in any open market
transaction, that complies with all applicable procurement rules and
regulations and is approved in accordance with subsection (c):
(1) Qualified tradeable greenhouse gas offsets.
(2) Qualified tradeable renewable energy credits.
(b) Qualification of Offsets and Credits- A tradeable greenhouse gas
offset or renewable energy credit shall be treated as qualified for purposes
of this section if the Secretary of Energy certifies the generator of such
offset or credit. Upon the application of any person generating or planning to
generate any such offsets or credits, the Secretary shall certify the
generator if the Secretary determines that the generator meets, or will, upon
implementation, meet, such requirements as the Secretary deems necessary,
under rules promulgated by the Secretary, to ensure that the offsets or
credits generated will represent the reduction of greenhouse gases as
specified or estimated in the offset (in the case of an offset) or in the
generation of the amount of renewable energy which the credit represents or is
estimated to represent (in the case of a credit). A reduction in greenhouse
gases that the Secretary determines would have occurred in the absence of the
opportunity to sell an offset for such reduction shall not be treated as a
qualified offset for purposes of this Act.
(c) Approval of Open Market Transactions- The Secretary of Energy shall
promulgate rules, after notice and opportunity for comment, regarding the open
market transactions (involving qualified tradeable greenhouse gas offsets and
qualified tradeable renewable energy credits) that will be treated as approved
for purposes of this Act. Such rules shall accommodate forward purchasing and
crediting of offsets and credits on an estimated basis from small scale offset
and renewable energy generators, and other open market transactions that are
useful in enabling short-term purchases of greenhouse gas offsets and
renewable energy credits to contribute meaningfully to the implementation of
small scale offset and renewable energy generators.
(d) Definitions- For purposes of this Act:
(1) GREENHOUSE GAS OFFSET- The term `greenhouse gas offset' means the
reduction in emissions of greenhouse gases that results from an action or
actions undertaken for the purpose, among others, of reducing greenhouse gas
emissions (including the generation of renewable energy), where: (A) such
action or actions would not have occurred in the absence of the opportunity
to sell an offset for the resulting reductions; (B) the party claiming
credit for the reductions has acquired the exclusive legal rights to claim
credit for the reductions; and (C) such exclusive legal rights can be
verified and approved by the Secretary through an auditable contract path or
other system established by the Secretary.
(2) GREENHOUSE GAS- The term `greenhouse gas' includes carbon dioxide,
methane, nitrous oxide, and fluorinated gases.
(3) RENEWABLE ENERGY CREDIT- The term `renewable energy credit' means
all of the environmental attributes associated with a single unit of energy
generated by a renewable energy source where: (A) those attributes are
transferred or recorded separately from that unit of energy; (B) the party
claiming ownership of the credit has acquired the exclusive legal ownership
of all, and not less than all, the environmental attributes associated with
that unit of energy; and (C) exclusive legal ownership of the credit can be
verified and approved by the Secretary through an auditable contract path or
other system established by the Secretary.
(4) RENEWABLE ENERGY- The term `renewable energy' means electric energy
generated from solar, wind, biomass, landfill gas, ocean (including tidal,
wave, current, and thermal), geothermal, municipal solid waste, or new
hydroelectric generation capacity achieved from increased efficiency or
additions of new capacity at an existing hydroelectric project.
(5) TRADEABLE- The term `tradeable' when used in connection with an
offset or credit means that the offset or credit is available for purchase
and sale in an open and transparent market.
(e) Effective Date- The authority of section 1 shall take effect for
fiscal years after the enactment of this Act.
END