S 317 IS
110th CONGRESS
1st Session
S. 317
To amend the Clean Air Act to establish a program to regulate the
emission of greenhouse gases from electric utilities.
IN THE SENATE OF THE UNITED STATES
January 17, 2007
Mrs. FEINSTEIN (for herself and Mr. CARPER) introduced the following bill;
which was read twice and referred to the Committee on Environment and Public
Works
A BILL
To amend the Clean Air Act to establish a program to regulate the
emission of greenhouse gases from electric utilities.
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 `Electric Utility Cap and
Trade Act of 2007'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--GLOBAL CLIMATE CHANGE
Sec. 101. Global climate change.
`TITLE VII--GLOBAL CLIMATE CHANGE
`Sec. 701. Definitions.
`Subtitle A--Stopping and Reversing Greenhouse Gas Emissions
`Sec. 711. Regulations; greenhouse gas tonnage limitation.
`Sec. 712. Scientific review of the safe climate level.
`Sec. 713. Required review of emission reductions needed to maintain the
safe climate level.
`Sec. 714. Distribution of allowances between auctions and allocations;
nature of allowances.
`Sec. 715. Auction of allowances.
`Sec. 716. Allocation of allowances.
`Sec. 717. Climate Action Trust Fund.
`Sec. 718. Early reduction credits.
`Sec. 719. Recognition and use of international credits.
`Sec. 720. Avoiding significant economic harm.
`Sec. 721. Use and transfer of credits.
`Sec. 722. Compliance and enforcement.
`Subtitle B--Offset Credits
`Sec. 731. Outreach initiative on revenue enhancement for agricultural
producers.
`Sec. 732. Offset measurement for agricultural, forestry, wetlands, and
other land use-related sequestration projects.
`Sec. 733. Categories of agricultural offset practices.
`Sec. 734. Offset credits from forest management, grazing management,
and wetlands management.
`Sec. 735. Offset credits from the avoided conversion of forested land
or wetland.
`Sec. 736. Offset credits from greenhouse gas emissions reduction
projects.
`Sec. 737. Borrowing at program start-up based on contracts to purchase
offset credits.
`Sec. 738. Review and correction of accounting for offset
credits.
`Subtitle C--National Registry for Credits
`Sec. 741. Establishment and operation of national
registry.
`Sec. 742. Monitoring and reporting.
TITLE II--CLIMATE CHANGE RESEARCH INITIATIVES
Sec. 201. Research grants through National Science Foundation.
Sec. 202. Abrupt climate change research.
Sec. 203. Development of new measurement technologies.
Sec. 204. Technology development and diffusion.
Sec. 206. Sea level rise from polar ice sheet melting.
TITLE I--GLOBAL CLIMATE CHANGE
SEC. 101. GLOBAL CLIMATE CHANGE.
(a) In General- The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by
adding at the end the following:
`TITLE VII--GLOBAL CLIMATE CHANGE
`SEC. 701. DEFINITIONS.
`(A) IN GENERAL- The term `affected unit' means an electric generating
facility that--
`(i) has a nameplate capacity greater than 25 megawatts;
`(ii) combusts greenhouse gas-emitting fuels; and
`(iii) generates electricity for sale.
`(B) INCLUSIONS- The term `affected unit' includes--
`(i) a cogeneration facility; and
`(ii) a facility owned or operated by any instrumentality
of--
`(I) the Federal Government; or
`(II) any State, local, or tribal government.
`(2) AFFORESTATION- The term `afforestation' means the conversion to a
forested condition of land that has been in a nonforested condition for at
least 15 years.
`(3) ALLOCATION- The term `allocation', with respect to an allowance,
means the issuance of an allowance directly to covered units, at no cost,
under this title.
`(4) ALLOWANCE- The term `allowance' means an authorization under this
title to emit 1 metric ton of carbon dioxide (or a carbon dioxide
equivalent), as allocated to a covered unit pursuant to section 716.
`(5) CARBON DIOXIDE EQUIVALENT- The term `carbon dioxide equivalent'
means, with respect to a greenhouse gas, the quantity of the greenhouse gas
that makes the same contribution to global warming as 1 metric ton of carbon
dioxide, as determined by the Administrator.
`(6) COGENERATION FACILITY- The term `cogeneration facility' means a
facility that--
`(A) cogenerates steam and electricity; and
`(B) supplies, on a net annual basis, to the electric power
grid--
`(i) more than 1/3 of the potential electric output capacity of the
facility; and
`(ii) more than 25 megawatts of electrical output from the
facility.
`(7) COVERED UNIT- The term `covered unit' means--
`(B) a nuclear generating unit (including a facility owned or operated
by any instrumentality of the Federal Government or of any State, local,
or tribal government), but only to the extent of incremental nuclear
generation of the unit; and
`(C) a renewable energy unit (including a facility owned or operated
by any instrumentality of the Federal Government or of any State, local,
or tribal government).
`(A) IN GENERAL- The term `credit' means an authorization under this
title to emit greenhouse gases equivalent to 1 metric ton of carbon
dioxide.
`(B) INCLUSIONS- The term `credit' includes--
`(iii) an early reduction credit; or
`(iv) an international credit.
`(9) EARLY REDUCTION CREDIT- The term `early reduction credit' means a
credit issued under section 718 for a reduction in the quantity of emissions
or an increase in sequestration equivalent to 1 metric ton of carbon
dioxide.
`(10) FUND- The term `Fund' means the Climate Action Trust Fund
established by section 717(a)(1).
`(11) GREENHOUSE GAS- The term `greenhouse gas' means--
`(E) perfluorocarbons; and
`(F) sulfur hexafluoride.
`(12) GREENHOUSE GAS AUTHORIZED ACCOUNT REPRESENTATIVE- The term
`greenhouse gas authorized account representative' means, for a covered
unit, an individual who is authorized by the owner and operator of the
covered unit to represent and legally bind the owner and operator in matters
pertaining to this title.
`(13) GREENHOUSE GAS-EMITTING FUEL-
`(A) IN GENERAL- The term `greenhouse gas-emitting fuel' means any
fuel that produces a greenhouse gas as a combustion product.
`(B) INCLUSIONS- The term `greenhouse gas-emitting fuel'
includes--
`(iv) agricultural waste; and
`(v) biomass that is not grown using sustainable
techniques.
`(C) EXCLUSION- The term `greenhouse gas-emitting fuel' does not
include biomass that is grown using sustainable techniques.
`(14) INCREMENTAL NUCLEAR GENERATION- The term `incremental nuclear
generation' means, as determined by the Administrator and measured in
megawatt hours, the difference between--
`(A) the quantity of electricity generated by a nuclear generating
unit in a calendar year; and
`(B) the quantity of electricity generated by the nuclear generating
unit in calendar year 1990.
`(15) INDUSTRY SECTOR- The term `industry sector' means any sector of
the economy of a country (including, where applicable, the forestry sector)
that is responsible for significant quantities of greenhouse gas
emissions.
`(16) INTERNATIONAL CREDIT- The term `international credit' means a
credit recognized for a reduction in the quantity of emissions or an
increase in sequestration equivalent to 1 metric ton of carbon dioxide
that--
`(A) arises from activities outside the United States; and
`(B) is authorized for use under section 719.
`(17) INVASIVE SPECIES- The term `invasive species' means a species
(including pathogens, seeds, spores, or any other biological material
relating to a species) the introduction of which causes or is likely to
cause economic or environmental harm or harm to human health.
`(18) LAND-GRANT COLLEGES AND UNIVERSITIES- The term `land-grant
colleges and universities' has the meaning given the term in section 1404 of
the National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103).
`(19) LEAKAGE- The term `leakage' means an increase in greenhouse gas
emissions or a decrease in sequestration of greenhouse gases that is--
`(A) outside the area of a project; and
`(B) attributable to the project.
`(20) NATIVE PLANT- The term `native plant' means an indigenous,
terrestrial, or aquatic plant species that evolved naturally in an
ecosystem.
`(21) NEW AFFECTED UNIT- The term `new affected unit' means an affected
unit that has operated for not more than 3 years.
`(22) NEW COVERED UNIT- The term `new covered unit' means a covered unit
that has operated for not more than 3 years.
`(23) NOXIOUS WEED- The term `noxious weed' means a plant species that
is--
`(A) characterized by being--
`(i) aggressive and difficult to manage;
`(ii) poisonous, toxic, parasitic, or a carrier or host of insects
or disease representing a serious threat to native species or crops;
or
`(iii) nonnative to, new to, or not common to, the United States (or
a region of the United States); or
`(B) otherwise designated as a noxious weed by the Secretary of
Agriculture or an appropriate State official.
`(24) NUCLEAR GENERATING UNIT- The term `nuclear generating unit' means
an electric generating facility that uses nuclear energy to generate
electricity for sale.
`(25) OFFSET CREDIT- The term `offset credit' means a credit issued for
an offset project pursuant to subtitle B certifying a reduction in the
quantity of emissions or an increase in sequestration equivalent to 1 metric
ton of carbon dioxide.
`(26) OFFSET PRACTICE- The term `offset practice' means a practice
that--
`(A) reduces greenhouse gas emissions or increases sequestration other
than by reducing the combustion of greenhouse gas-emitting fuel at an
affected unit; and
`(B) may be eligible to create an offset credit under this
title.
`(27) OFFSET PROJECT- The term `offset project' means a project that
reduces greenhouse gas emissions or increases sequestration of carbon
dioxide or a carbon dioxide equivalent by a method other than reduction of
combustion of greenhouse gas-emitting fuel at an affected unit.
`(28) PANEL- The term `Panel' means the Climate Science Advisory Panel
established by section 712(b)(1).
`(29) PLANT MATERIAL- The term `plant material' means--
`(B) a part of a plant; or
`(30) RENEWABLE ENERGY- The term `renewable energy' means electricity
generated from--
`(B) organic waste (excluding incinerated municipal solid
waste);
`(C) biomass (including anaerobic digestion from farm systems and
landfill gas recovery); or
`(D) a hydroelectric, geothermal, solar thermal, photovoltaic, tidal,
wave, or other nonfossil fuel, nonnuclear source.
`(31) RENEWABLE ENERGY UNIT- The term `renewable energy unit' means an
electric generating unit that exclusively uses renewable energy to generate
electricity for sale.
`(A) IN GENERAL- The term `restoration' means assisting the recovery
of an ecosystem that has been degraded, damaged, or destroyed.
`(B) INCLUSION- The term `restoration' includes the reestablishment in
an ecosystem of preexisting biotic integrity with respect to species
composition and community structure.
`(33) SEQUESTRATION- The term `sequestration' means the separation,
isolation, or removal of greenhouse gases from the atmosphere.
`(34) SEQUESTRATION FLOW- The term `sequestration flow' means the uptake
of greenhouse gases each year from sequestration practices, as calculated
under section 732.
`(35) SUSTAINABLE TECHNIQUE- The term `sustainable technique' means an
agricultural, forestry, or animal husbandry technique that does not result
in--
`(A) a long-term net depletion of natural resources; or
`(B) a net emission of greenhouse gas during the lifecycle of biomass
production, harvest, processing, and consumption.
`(36) UNFCCC- The term `UNFCCC' means the United Nations Framework
Convention on Climate Change, done at New York on May 9, 1992.
`Subtitle A--Stopping and Reversing Greenhouse Gas
Emissions
`SEC. 711. REGULATIONS; GREENHOUSE GAS TONNAGE LIMITATION.
`(a) Regulations- Not later than 18 months after the date of enactment of
this title, the Administrator shall promulgate regulations to establish an
allowance trading program to address emissions of greenhouse gases from
affected units in the United States.
`(b) Greenhouse Gas Tonnage Limitation- Beginning in calendar year 2011,
the annual tonnage limitation for the aggregate quantity of emissions of
greenhouse gases from affected units in the United States shall be equal
to--
`(1) for each of calendar years 2011 through 2014, the aggregate
quantity of emissions emitted from affected units in calendar year 2006, as
determined by the Administrator based on certified and quality-assured
continuous emissions monitoring data for greenhouse gases, or data that the
Administrator determines to be of similar reliability for affected units
without continuous monitoring systems, reported to the Administrator by
affected units in accordance with this subtitle;
`(2) for calendar year 2015, the aggregate quantity of emissions emitted
from affected units in calendar year 2001, as determined by the
Administrator based on certified and quality-assured continuous emissions
monitoring data for greenhouse gases, or data that the Administrator
determines to be of similar reliability for affected units without
continuous monitoring systems, reported to the Administrator by affected
units in accordance with this subtitle;
`(3) for each of calendar years 2016 through 2019, the aggregate
quantity of emissions emitted from affected units during the calendar year
that is 1 percent less than the aggregate quantity of emissions from
affected units allowed pursuant to this section during the preceding
calendar year; and
`(4) for calendar year 2020 and each calendar year thereafter, the
aggregate quantity of emissions emitted during the calendar year that is 1.5
percent less than the aggregate quantity of emissions from affected units
allowed pursuant to this section during the preceding calendar year, except
as modified by the Administrator pursuant to section 713.
`SEC. 712. SCIENTIFIC REVIEW OF THE SAFE CLIMATE LEVEL.
`(a) Definition and Objective of Maintaining the Safe Climate Level-
`(1) FINDING- Congress finds that ratification by the Senate in 1992 of
the UNFCCC, commitments which were affirmed by the President in 2002,
established for the United States an objective of `stabilization of
greenhouse gas concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the climate system'.
`(2) DEFINITION OF SAFE CLIMATE LEVEL- In this section, the term `safe
climate level' means the climate level referred to in paragraph (1).
`(b) Climate Science Advisory Panel-
`(1) ESTABLISHMENT- Not later than 270 days after the date of enactment
of this title, the Administrator shall establish an advisory panel, to be
known as the `Climate Science Advisory Panel'.
`(2) DUTIES- The Panel shall--
`(A) inform Congress and the Administrator of the state of climate
science;
`(B) not later than December 31, 2011, and not less frequently than
every 4 years thereafter, issue a report that is endorsed by at least 7
members of the Panel that describes recommendations for the Administrator,
based on the best available information in the fields of climate science,
including reports from the Intergovernmental Panel on Climate Change,
relating to--
`(i) the specific concentration, in parts per million, of all
greenhouse gases in carbon dioxide equivalents at or below which
constitutes the safe climate level; and
`(ii) the projected timeframe for achieving the safe climate
level.
`(A) IN GENERAL- The Panel shall be composed of 8 climate scientists
and 3 former Federal officials, as described in subparagraphs (B) through
(D).
`(B) CLIMATE SCIENTISTS- Not later than 270 days after the date of
enactment of this title, the President of the National Academy of Sciences
shall appoint to serve on the Panel 8 climate scientists from among
individuals who--
`(i) have earned doctorate degrees;
`(ii) have performed research in physical, biological, or social
sciences, mathematics, economics, or related fields, with a particular
focus on or link to 1 or more aspects of climate science;
`(iii) have records of peer-reviewed publications that
include--
`(I) publications in main-stream, high-quality scientific journals
(such as journals associated with respected scientific societies or
those with a high impact factor, as determined by the Institute for
Scientific Information);
`(II) recent publications relating to earth systems, and
particularly relating to the climate system; and
`(III) a high publication rate, typically at least 2 or 3 papers
per year; and
`(iv) have participated in high-level committees, such as those
formed by the National Academy of Sciences or by leading scientific
societies.
`(C) RESTRICTION- A majority of climate scientists appointed to the
Panel under subparagraph (B) shall be participating, as of the date of
appointment to the Panel, in active research in the physical or biological
sciences, with a particular focus on or link to 1 or more aspects of
climate science.
`(i) IN GENERAL- Subject to clause (ii), the Administrator shall
appoint as members of the Panel, the longest-serving former
Administrators of the Environmental Protection Agency for each of the 3
most recent former Presidents.
`(ii) TIMING- The 3 most recent former Presidents described in
clause (i) shall be identified as of the deadline for appointments to
the Panel under subparagraph (B) or (E)(ii), whichever is
applicable.
`(iii) SUBSTITUTES- If a former Administrator described in clause
(i) declines appointment, or is unable to serve, as a member of the
Panel, the Administrator shall appoint in place of the former
Administrator--
`(I) the longest-serving former Administrator for the applicable
President who agrees to serve; or
`(II) if no individual described in subclause (I) accepts
appointment as a member of the Panel, the longest-serving Assistant
Administrator for Air and Radiation for the applicable President who
agrees to serve.
`(E) TERMS OF SERVICE AND VACANCIES-
`(i) TERMS- The initial term of a member of the Panel shall
be--
`(I) to the maximum extent practicable, the period covered by, and
extending through the date of issuance of, each report under paragraph
(2)(B); but
`(II) not longer than 4 years.
`(ii) SUBSEQUENT PANELS AND REPORTS- On the issuance of each report
under paragraph (2)(B)--
`(I) the Panel that submitted the report shall terminate;
and
`(II)(aa) pursuant to subparagraphs (B) and (C), the President of
the National Academy of Sciences shall appoint climate scientists
(including at least 3 climate scientists who served as members of the
preceding Panel) to serve as members of a new Panel by not later than
15 months after the deadline for issuance of the report under
paragraph (2)(B); and
`(bb) pursuant to subparagraph (D), the Administrator shall
appoint 3 Federal officials as members of the new Panel by the
deadline described in item (aa).
`(iii) VACANCIES- Vacancies in the membership of the
Panel--
`(I) shall not affect the power of the remaining members to
execute the functions of the Panel; and
`(II) shall be filled in the same manner in which the original
appointment was made.
`(F) CHAIRPERSON AND VICE CHAIRPERSON- The Panel shall elect a
Chairperson and Vice Chairperson as soon as practicable.
`(G) COMPENSATION OF MEMBERS- A member of the Panel 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
Panel.
`(H) TRAVEL EXPENSES- A member of the Panel shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates authorized
for an employee of an agency under subchapter I of chapter 57 of title 5,
United States Code, while away from the home or regular place of business
of the member in the performance of the duties of the Panel.
`(A) IN GENERAL- The Chairperson of the Panel may, without regard to
the civil service laws (including regulations), appoint and terminate an
executive director and such other additional personnel as are necessary to
enable the Panel to perform the duties of the Panel.
`(B) CONFIRMATION OF EXECUTIVE DIRECTOR- The employment of an
executive director shall be subject to confirmation by the Panel.
`(i) IN GENERAL- Except as provided in clause (ii), the Chairperson
of the Panel may fix the compensation of the executive director and
other personnel without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates.
`(ii) EXCEPTION- The rate of pay for the executive director and
other personnel shall not exceed the rate payable for level V of the
Executive Schedule under section 5316 of title 5, United States
Code.
`(D) DETAIL OF FEDERAL GOVERNMENT EMPLOYEES-
`(i) IN GENERAL- An employee of the Federal Government may be
detailed to the staff of the Panel without reimbursement.
`(ii) TREATMENT OF DETAILEES- The detail of the employee shall be
without interruption or loss of civil service status or
privilege.
`(E) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The
Chairperson or executive director of the Panel may procure temporary and
intermittent services in accordance with section 3109(b) of title 5,
United States Code, at rates for individuals that do not exceed the daily
equivalent of the annual rate of basic pay prescribed for level V of the
Executive Schedule under section 5316 of that title.
`(5) HEARINGS- The Panel may hold such hearings, meet and act at such
times and places, take such testimony, and receive such evidence as the
Panel considers advisable to carry out this section.
`(6) INFORMATION FROM FEDERAL AGENCIES-
`(A) IN GENERAL- The Panel may secure directly from a Federal agency
such information as the Panel considers necessary to carry out this
section.
`(B) PROVISION OF INFORMATION- On request of the Chairperson of the
Panel, the head of the agency shall provide the information to the
Panel.
`(7) POSTAL SERVICES- The Panel may use the United States mail in the
same manner and under the same conditions as other agencies of the Federal
Government.
`SEC. 713. REQUIRED REVIEW OF EMISSION REDUCTIONS NEEDED TO MAINTAIN THE
SAFE CLIMATE LEVEL.
`(a) Review and Determination Regarding Reduction Rate- Not later than
December 31, 2015, the Administrator, after providing public notice and
opportunity to comment, shall promulgate a final rule pursuant to which the
Administrator shall review the reduction rate for greenhouse gas emissions
required under section 711(b)(4) and determine--
`(A) accept the recommendations of the Panel under section
712(b)(2)(B) regarding the safe climate level and the timeframe for
achieving the safe climate level; or
`(B) establish a different safe climate level or timeframe, together
with a detailed explanation of the justification of the Administrator for
rejection of the recommendations of the Panel; and
`(2) whether, in order to achieve the safe climate level within the
timeframe described in paragraph (1), the reduction rate under section
711(b)(4) is most accurately characterized as requiring--
`(A) the appropriate level of emission reductions;
`(B) lesser emission reductions than are necessary; or
`(C) greater emission reductions than are necessary.
`(b) Modification of Reduction Rate-
`(1) IN GENERAL- If the Administrator makes a determination described in
subparagraph (B) or (C) of subsection (a)(2), the final rule promulgated
pursuant to subsection (a) shall establish a required level of emissions
reductions for each calendar year, beginning with calendar year 2020, based
on the considerations described in paragraph (2).
`(A) PRIMARY CONSIDERATION- In establishing the required level of
emission reductions pursuant to paragraph (1), the Administrator shall
take into consideration primarily the emission reductions necessary to
stabilize atmospheric greenhouse gas concentrations at the safe climate
level within the timeframe specified under section 712(b)(2)(B).
`(B) SECONDARY CONSIDERATIONS- In establishing the required level of
emission reductions pursuant to paragraph (1), in addition to the primary
consideration described in paragraph (1), the Administrator shall take
into consideration--
`(i) technological capability to reduce greenhouse gas
emissions;
`(ii) the progress that foreign countries have made toward reducing
their greenhouse gas emissions;
`(iii) the economic impacts within the United States of implementing
this subtitle, including impacts on the major emitting sectors;
and
`(iv) the economic impacts within the United States of inadequate
action.
`(c) Enforcement Provision-
`(1) IN GENERAL- If the Administrator fails to meet a deadline for
promulgation of any regulation under subsection (a), the Administrator shall
withhold from allocation to covered units that would otherwise be entitled
to an allocation of allowances under this subtitle a total of 10 percent of
the allowances for each covered unit for each year after the deadline until
the Administrator promulgates the applicable regulation.
`(2) RETURN OF ALLOWANCES- On promulgation of a delayed regulation
described in paragraph (1), the Administrator shall distribute any
allowances withheld under that paragraph--
`(A) among the covered units from which the allowances were withheld;
and
`(B) in accordance with the applicable formula under section
716.
`(d) Subsequent Rulemakings-
`(1) IN GENERAL- Not later than December 31, 2019, and every 4 years
thereafter, the Administrator shall promulgate a new final rule described in
subsection (a) in accordance with this section.
`(2) EFFECTIVE DATE- If a new final rule promulgated pursuant to
paragraph (1) changes a level of emission reductions required under the
preceding final rule, the effective date of the new final rule shall be
January 1 of the calendar year that is 5 years after the deadline for
promulgation of the new final rule under paragraph (1).
`SEC. 714. DISTRIBUTION OF ALLOWANCES BETWEEN AUCTIONS AND ALLOCATIONS;
NATURE OF ALLOWANCES.
`(a) Distribution of Allowances Between Auctions and Allocations-
`(1) IN GENERAL- For each calendar year, the total quantity of
allowances to be auctioned and allocated under this subtitle shall be equal
to the annual tonnage limitation for emissions of greenhouse gases from
affected units specified in section 711 for the calendar year.
`(2) DISTRIBUTION- The proportion of allowances to be auctioned pursuant
to section 715 and allocated pursuant to section 716 for each calendar year
beginning in calendar year 2011 shall be as follows:
`Percentages of Allowances To Be Auctioned and Allocated
--------------------------------------------------------------------------
Calendar year Percentage to be auctioned Percentage to be allocated
--------------------------------------------------------------------------
2011 15 85
2012 18 82
2013 21 79
2014 24 76
2015 27 73
2016 30 70
2017 33 67
2018 36 64
2019 39 61
2020 42 58
2021 45 55
2022 48 52
2023 51 49
2024 54 46
2025 57 43
2026 60 40
2027 63 37
2028 66 34
2029 69 41
2030 72 28
2031 75 25
2032 80 20
2033 85 15
2034 90 10
2035 95 5
2036 and thereafter 100 0
--------------------------------------------------------------------------
`(b) Nature of Allowances- An allowance--
`(1) shall not be considered to be a property right; and
`(2) may be terminated or limited by the Administrator.
`(c) No Judicial Review- An auction or allocation of an allowance by the
Administrator shall not be subject to judicial review.
`SEC. 715. AUCTION OF ALLOWANCES.
`(a) In General- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations establishing a
procedure for the auction of the quantity of allowances specified in section
714(a) for each calendar year.
`(b) Deposit of Proceeds- The Administrator shall deposit all proceeds
from auctions conducted under this section in the Fund for use in accordance
with section 717.
`SEC. 716. ALLOCATION OF ALLOWANCES.
`(a) Allocation to New Covered Units-
`(1) ESTABLISHMENT- For each calendar year, the Administrator, in
consultation with the Secretary of Energy, shall, based on projections of
electricity output for new covered units, promulgate regulations
establishing--
`(A) a reserve of allowances to be allocated among new covered units
for the calendar year; and
`(B) the methodology for allocating those allowances among new covered
units.
`(2) LIMITATION- The number of allowances allocated under paragraph (1)
during a calendar year shall be not more than 3 percent of the total number
of allowances allocated among covered units for the calendar year.
`(3) UNUSED ALLOWANCES- For each calendar year, the Administrator shall
reallocate to each covered unit any unused allowances from the new unit
reserve established under paragraph (1) in the proportion that--
`(A) the number of allowances allocated to each covered unit for the
calendar year; bears to
`(B) the number of allowances allocated to all covered units for the
calendar year.
`(b) Allocation to Covered Units That Are Not New Covered Units-
`(1) TIMING OF ALLOCATIONS- Subject to subsection (c), the Administrator
shall allocate allowances among covered units that are not new covered
units--
`(A) not later than December 31, 2007, for calendar year 2011;
and
`(B) not later than December 31 of calendar year 2008 and of each
calendar year thereafter, for each fourth calendar year that begins after
that December 31.
`(A) IN GENERAL- Subject to subsection (c), the Administrator shall
allocate to each covered unit that is not a new covered unit a quantity of
allowances that is equal to the product obtained by multiplying--
`(i) the quantity of allowances available for allocation under this
subsection; and
`(ii) the quotient obtained by dividing--
`(I) the annual average quantity of electricity generated by the
unit (including only incremental nuclear generation for nuclear
generating units) during the most recent 3-calendar year period for
which data is available, updated each calendar year and measured in
megawatt hours; by
`(II) the difference between--
`(aa) the total of the average quantities calculated under subclause
(I) for all covered units; and
`(bb) the quantity of electricity generated by all affected units and
new affected units that, pursuant to subsection (c), do not receive any
allowances.
`(B) QUANTITY TO BE ALLOCATED- For each calendar year, the quantity of
allowances allocated under subparagraph (A) to covered units that are not
new covered units shall be equal to the difference between--
`(i) the annual tonnage limitation for emissions of greenhouse gases
from affected units specified in section 711 for the calendar year, as
modified, if applicable, under section 713; and
`(ii) the quantity of allowances reserved under subsection (a) for
the calendar year.
`(c) Coal-Fired Affected Units and New Affected Units-
`(1) IN GENERAL- Notwithstanding any other provision of this subtitle,
no allowance shall be allocated under this subtitle to a coal-fired affected
unit or a coal-fired new affected unit unless the affected unit or new
affected unit--
`(A) is powered by qualifying advanced clean coal technology, as
defined pursuant to paragraph (2); or
`(B) entered operation before January 1, 2007.
`(2) DEFINITION OF QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY-
`(A) IN GENERAL- Not later than 18 months after the date of enactment
of this title, the Administrator, by regulation, shall define the term
`qualifying advanced clean coal technology' with respect to electric power
generation.
`(B) REQUIREMENT- In promulgating a definition pursuant to
subparagraph (A), the Administrator shall ensure that the term `qualifying
advanced clean coal technology' reflects advances in available technology,
taking into consideration--
`(i) net thermal efficiency;
`(ii) measures to capture and sequester carbon dioxide;
and
`(iii) output-based emission rates for--
`(III) oxides of nitrogen;
`(IV) filterable and condensable particulate matter;
and
`(C) REVIEW AND REVISION-
`(i) IN GENERAL- Not later than July 1, 2009, and each July 1 of
every second year thereafter, the Administrator shall review and, if
appropriate, revise the definition under subparagraph (A) based on
technological advances during the preceding 2 calendar
years.
`(ii) NOTICE AND COMMENT REQUIRED- Subject to clause (iii), after
the initial definition is established under subparagraph (A), no
subsequent review or revision under this subparagraph shall be subject
to the notice and comment provisions of section 307 of this Act or of
section 553 of title 5, United States Code.
`(iii) EFFECT- Nothing in clause (ii) precludes the application of
the notice and comment provisions of section 307 of this Act or of
section 553 of title 5, United States Code, as the Administrator
determines to be practicable.
`SEC. 717. CLIMATE ACTION TRUST FUND.
`(a) Establishment and Administration-
`(1) IN GENERAL- There is established in the general fund of the
Treasury a fund, to be known as the `Climate Action Trust Fund', consisting
of--
`(A) such amounts as are deposited in the Fund under paragraph (2);
and
`(B) any interest earned on investment of amounts in the Fund under
paragraph (4).
`(2) TRANSFERS TO FUND- The Secretary of the Treasury shall deposit in
the Fund amounts equivalent to the proceeds received by the Administrator as
a result of the conduct of auctions of allowances under section 715.
`(3) EXPENDITURES FROM FUND-
`(A) IN GENERAL- Subject to subparagraphs (B) and (C), the
Administrator shall use amounts in the Fund to carry out the programs
described in this section.
`(B) ADMINISTRATIVE EXPENSES- Of amounts in the Fund, there shall be
made available to pay the administrative expenses necessary to carry out
this title, as adjusted for changes beginning on January 1, 2007, in
accordance with the Consumer Price Index for All-Urban Consumers published
by the Department of Labor--
`(i) $90,000,000 for each fiscal year, to the Administrator;
and
`(ii) $30,000,000 for each fiscal year, to the Secretary of
Agriculture.
`(C) PANEL- Of amounts in the Fund, there shall be made available to
pay the expenses of the Panel under section 712 $7,000,000 for each fiscal
year, as adjusted for changes beginning on January 1, 2007, in accordance
with the Consumer Price Index for All-Urban Consumers published by the
Department of Labor.
`(4) INVESTMENT OF AMOUNTS-
`(A) IN GENERAL- The Secretary of Treasury shall invest such portion
of the Fund as is not, in the judgment of the Administrator, required to
meet current withdrawals.
`(B) INTEREST-BEARING OBLIGATIONS- Investments may be made only in
interest-bearing obligations of the United States.
`(C) ACQUISITION OF OBLIGATIONS- For the purpose of investments under
paragraph (1), obligations may be acquired--
`(i) on original issue at the issue price; or
`(ii) by purchase of outstanding obligations at the market
price.
`(D) SALE OF OBLIGATIONS- Any obligation acquired by the Fund may be
sold by the Administrator at the market price.
`(E) RETURN OF PROCEEDS TO FUND- The interest on, and the proceeds
from the sale or redemption of, any obligations held in the Fund shall be
credited to, and form a part of, the Fund.
`(5) REGULATIONS- Not later than 2 years after the date of enactment of
this title, the Administrator, in consultation with the Secretary of Energy,
shall promulgate such regulations as are necessary to administer the Fund in
accordance with this section.
`(1) NO FURTHER APPROPRIATION- The Administrator shall distribute
amounts in the Fund for use in accordance with this section, without further
appropriation.
`(A) IN GENERAL- Not later than 3 years after the date of enactment of
this title, the Administrator, in consultation with the Secretary of
Energy, shall promulgate regulations establishing an innovative low- and
zero-emitting carbon technologies program, a clean coal technologies
program, and an energy efficiency technology program that
include--
`(i) the funding mechanisms that will be available to support the
development and deployment of the technologies addressed by each
program, including low-interest loans, loan guarantees, grants, and
financial awards; and
`(ii) the criteria for the methods by which proposals will be funded
to develop and deploy the technologies.
`(B) REVISION OF CRITERIA- Not later than January 1, 2014, and every 3
years thereafter, the Administrator shall review and, if appropriate,
revise, based on technological advances, the criteria referred to in
subparagraph (A)(ii).
`(C) ADAPTATION ASSISTANCE FOR WORKERS AND COMMUNITIES- Not later than
3 years after the date of enactment of this title, the Administrator, in
consultation with the Secretary of Energy, shall promulgate regulations
governing the distribution of funds pursuant to subsection (g).
`(c) Innovative Low- and Zero-Emitting Carbon Electricity Generation
Technologies Program-
`(1) IN GENERAL- For each calendar year, of amounts remaining in the
Fund after making the expenditures described in subparagraphs (B) and (C) of
subsection (a)(3), the Administrator shall use not more than 35 percent to
support the development and deployment of low- and zero-emitting carbon
electricity generation technologies.
`(2) REGULATIONS- The regulations establishing the innovative low- and
zero-emitting carbon electricity generation technologies program referred to
in subsection (b)(2)(A) shall establish the areas of technology development
that will qualify for funding under that program, including technologies for
the generation of electricity from renewable energy sources.
`(d) Clean Coal Technologies Program-
`(1) IN GENERAL- For each calendar year, of amounts remaining in the
Fund after making the expenditures described in subparagraphs (B) and (C) of
subsection (a)(3), the Administrator shall use not more than 20 percent to
support the development and deployment of clean coal technologies.
`(2) REGULATIONS- The regulations establishing the clean coal
technologies program referred to in subsection (b)(2)(A) shall establish the
criteria for use in defining qualifying clean coal technologies for electric
power generation, while ensuring that those technologies represent an
advance in available technology, taking into consideration net thermal
efficiency and measures to capture and sequester carbon dioxide.
`(e) Energy Efficiency Technology Program-
`(1) IN GENERAL- For each calendar year, of amounts remaining in the
Fund after making the expenditures described in subparagraphs (B) and (C) of
subsection (a)(3), the Administrator shall use not more than 15 percent to
support the development and deployment of technologies for increasing the
efficiency of energy end use in buildings and industry.
`(2) REGULATIONS- The regulations establishing the energy efficiency
program referred to in subsection (b)(2)(A) shall establish the areas of
technology development that will qualify for funding under the energy
efficiency program.
`(f) Federal Funding of Research Into and Development of Energy and
Efficiency Technologies- For each calendar year, the Administrator shall use
not more than 10 percent of the amounts in the Fund to support research into
and development of energy and efficiency technologies.
`(g) Adaptation Assistance for Workers and Communities Negatively Affected
by Climate Change and Greenhouse Gas Regulation- For each calendar year, of
amounts remaining in the Fund after making the expenditures described in
subparagraphs (B) and (C) of subsection (a)(3), the Administrator shall use at
least 10 percent to provide adaptation assistance for workers and
communities--
`(1) to address local or regional impacts of climate change and the
impacts, if any, from greenhouse gas regulation, including by providing
assistance to displaced workers and disproportionately affected communities;
and
`(2) to mitigate impacts of climate change and the impacts, in any, from
greenhouse gas regulation on low-income energy consumers.
`(h) Fish and Wildlife Habitat-
`(1) IN GENERAL- For each calendar year, of amounts remaining in the
Fund after making the expenditures described in subparagraphs (B) and (C) of
subsection (a)(3), the Administrator shall use at least 10 percent to
mitigate the impacts of climate change on fish and wildlife habitat in
accordance with this subsection.
`(2) WILDLIFE RESTORATION FUND-
`(A) IN GENERAL- For each calendar year, the Administrator shall
transfer not less than 70 percent of the amounts made available under
paragraph (1) to the Federal aid to wildlife restoration fund established
under section 3(a)(1) of the Pittman-Robertson Wildlife Restoration Act
(16 U.S.C. 669b(a)(1))--
`(i) to carry out climate change impact mitigation actions pursuant
to comprehensive wildlife conservation strategies; and
`(ii) to provide relevant information, training, monitoring, and
other assistance to develop climate change impact mitigation and
adaptation plans and integrate the plans into State comprehensive
wildlife conservation strategies.
`(B) AVAILABILITY- Amounts transferred to the Federal aid to wildlife
restoration fund under this paragraph shall--
`(i) be available, without further appropriation, for obligation and
expenditure; and
`(ii) remain available until expended.
`(3) PROTECTION OF NATURAL RESOURCES-
`(A) IN GENERAL- For each calendar year, the Administrator, in
consultation with the Secretary of Agriculture, the Secretary of Commerce,
the Chief of Engineers, and State and national wildlife conservation
organizations, shall transfer not more than 30 percent of the funds made
available under paragraph (1) to the Secretary of the Interior for use in
carrying out Federal and State programs and projects--
`(i) to protect natural communities that are most vulnerable to
climate change;
`(ii) to restore and protect natural resources that directly guard
against damages from climate change events; and
`(iii) to restore and protect ecosystem services that are most
vulnerable to climate change.
`(B) ADMINISTRATION- Amounts transferred to the Secretary of the
Interior under this paragraph shall--
`(i) be available, without further appropriation, for obligation and
expenditure;
`(ii) remain available until expended;
`(iii)(I) be obligated not later than 2 years after the date of
transfer; or
`(II) if the amounts are not obligated in accordance with subclause
(I), be transferred to the Federal aid to wildlife restoration fund for
use in accordance with paragraph (2); and
`(iv) supplement, and not supplant, the amount of Federal, State,
and local funds otherwise expended to carry out programs and projects
described in subparagraph (A).
`(C) PROGRAMS AND PROJECTS- Programs and projects for which funds may
be used under this paragraph include--
`(i) Federal programs and projects--
`(I) to identify Federal land and water at greatest risk of being
damaged or depleted by climate change;
`(II) to monitor Federal land and water to allow for early
detection of impacts;
`(III) to develop adaptation strategies to minimize the damage;
and
`(IV) to restore and protect Federal land and water at the
greatest risk of being damaged or depleted by climate
change;
`(ii) Federal programs and projects to identify climate change risks
and develop adaptation strategies for natural grassland, wetlands,
migratory corridors, and other habitats vulnerable to climate change on
private land enrolled in--
`(I) the wetlands reserve program established under subchapter C
of chapter 1 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3837 et seq.);
`(II) the grassland reserve program established under subchapter C
of chapter 2 of subtitle D of title XII of that Act (16 U.S.C. 3838n
et seq.); and
`(III) the wildlife habitat incentive program established under
section 1240N of that Act (16 U.S.C. 3839bb-1);
`(iii) programs and projects under the North American Wetlands
Conservation Act (16 U.S.C. 4401 et seq.), the North American Bird
Conservation Initiative, and the Neotropical Migratory Bird Conservation
Act (16 U.S.C. 6101 et seq.) to protect habitat for migratory birds that
are vulnerable to climate change impacts;
`(iv) programs and projects--
`(I) to identify coastal and marine resources (such as coastal
wetlands, coral reefs, submerged aquatic vegetation, shellfish beds,
and other coastal or marine ecosystems) at the greatest risk of being
damaged by climate change;
`(II) to monitor those resources to allow for early detection of
impacts;
`(III) to develop adaptation strategies;
`(IV) to protect and restore those resources; and
`(V) to integrate climate change adaptation requirements into
State plans developed under the coastal zone management program
established under the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.), the national estuary program established under section
320 of the Federal Water Pollution Control Act (33 U.S.C. 1330), the
Coastal and Estuarine Land Conservation Program established under the
fourth proviso of the matter under the heading `PROCUREMENT,
ACQUISITION, AND CONSTRUCTION (INCLUDING TRANSFERS OF FUNDS)' of title
II of the Departments of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 2002 (16 U.S.C. 1456d), or
other comparable State programs;
`(v) programs and projects to conserve habitat for endangered
species and species of conservation concern that are vulnerable to the
impact of climate change;
`(vi) programs and projects under the Forest Legacy Program
established under section 7 of the Cooperative Forestry Assistance Act
(16 U.S.C. 2103c), to support State efforts to protect environmentally
sensitive forest land through conservation easements to provide refuges
for wildlife;
`(vii) other Federal or State programs and projects identified by
the heads of agencies described in subparagraph (A) as high
priorities--
`(I) to protect natural communities that are most vulnerable to
climate change;
`(II) to restore and protect natural resources that directly guard
against damages from climate change events; and
`(III) to restore and protect ecosystem services that are most
vulnerable to climate change;
`(viii) to address climate change in Federal land use planning and
plan implementation and to integrate climate change adaptation
strategies into--
`(I) comprehensive conservation plans prepared under section 4(e)
of the National Wildlife Refuge System Administration Act of 1966 (16
U.S.C. 668dd(e));
`(II) general management plans for units of the National Park
System;
`(III) resource management plans of the Bureau of Land Management;
and
`(IV) land and resource management plans under the Forest and
Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et
seq.) and the National Forest Management Act of 1976 (16 U.S.C. 1600
et seq.); and
`(ix) projects to promote sharing of information on climate change
wildlife impacts and mitigation strategies across agencies, including
funding efforts to strengthen and restore habitat that improves the
ability of fish and wildlife to adapt successfully to climate change
through the Wildlife Conservation and Restoration Account established by
section 3(a)(2) of the Pittman-Robertson Wildlife Restoration Act (16
U.S.C. 669b(a)(2)).
`SEC. 718. EARLY REDUCTION CREDITS.
`(a) Regulations- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations that provide for
the issuance on a 1-time basis, certification, and use of early reduction
credits for greenhouse gas reduction or sequestration projects carried out
during any of calendar years 2000 through 2010.
`(b) Eligible Projects- A greenhouse gas reduction or sequestration
project shall be eligible for early reduction credits if the project--
`(1) is carried out in the United States;
`(2) meets the standards contained in regulations promulgated by the
Administrator under subsection (a) that the Administrator determines to be
applicable to the project, including consistency with the requirements
of--
`(A) paragraphs (2) through (5) of section 736(a), with respect to
greenhouse gas reduction projects; and
`(B) section 732(a), with respect to sequestration projects;
and
`(A) under section 1605(b) of the Energy Policy Act of 1992 (42 U.S.C.
13385(b)); or
`(B) to a State or regional greenhouse gas registry.
`(1) IN GENERAL- The aggregate quantity of early reduction credits
available for greenhouse gas reduction or sequestration projects for the
period of calendar years 2000 through 2010 shall not exceed 10 percent of
the tonnage limitation for calendar year 2011 for emissions of greenhouse
gases from affected units under section 711.
`(2) NO OTHER EXCEEDANCE OF TONNAGE LIMITATION- No provision of this
subtitle (other than paragraph (1)) or any regulation promulgated under this
subtitle authorizes the issuance or use of a quantity of credits greater
than the annual tonnage limitation for emissions of greenhouse gases from
affected units for a calendar year.
`SEC. 719. RECOGNITION AND USE OF INTERNATIONAL CREDITS.
`(a) Use of International Credits-
`(1) IN GENERAL- Except as provided in this section and section 720, the
owner of each affected unit may satisfy the obligation of the affected unit
under section 722 to surrender a quantity of credits associated with the
greenhouse gas emissions of the affected unit by submitting international
credits representing up to 25 percent of the total annual submission
requirements of the affected unit.
`(2) NEW AFFECTED UNITS- The owner of a new affected unit may satisfy up
to 50 percent of the obligation of the new affected unit under section 722
to surrender a quantity of credits associated with the greenhouse gas
emissions of the new affected unit by submitting international
credits.
`(b) Facility Certification- The owner of an affected unit who submits an
international credit under this section shall certify that the international
credit--
`(1) has not been retired from use in the registry of the applicable
foreign country; and
`(2) satisfies the requirements of subsection (c) or (d).
`(c) International Credits From Countries With Mandatory Greenhouse Gas
Limits- The owner of an affected unit may submit an international credit under
this subsection if--
`(1) the international credit is issued by a foreign country pursuant to
a governmental program that imposes mandatory absolute tonnage limits on
greenhouse gas emissions from the country or 1 or more industry sectors
pursuant to protocols adopted through the UNFCCC process; and
`(2) the Administrator has promulgated regulations, taking into
consideration applicable UNFCCC protocols, approving for use under this
subsection international credits from such categories of countries as the
regulations establish, and the regulations permit the use of international
credits from the foreign country that issued the credit.
`(d) International Credits From Countries Without Mandatory Greenhouse Gas
Limits-
`(1) IN GENERAL- Subject to paragraph (2), the owner of an affected unit
may submit an international credit under this subsection if--
`(A) the international credit is issued by a foreign country that has
not imposed mandatory absolute tonnage limits on greenhouse gas emissions
from the country or 1 or more industry sectors pursuant to protocols
adopted through the UNFCCC process;
`(B) the international credit is issued pursuant to protocols adopted
through the UNFCCC process; and
`(C) the Administrator has promulgated regulations, taking into
consideration applicable UNFCCC protocols, approving for use under this
subsection international credits from such categories of countries as the
regulations establish, and the regulations permit the use of international
credits from the foreign country that issued the credit.
`(2) DECISION ON CONTINUED APPROVAL- Not later than December 31, 2015,
the Administrator shall determine, pursuant to the regulations promulgated
under paragraph (1)(C), whether to continue to approve for use under this
subsection international credits from any country that--
`(A) has not imposed mandatory absolute tonnage limits on greenhouse
gas emissions from the country or 1 or more industry sectors pursuant to
protocols adopted through the UNFCCC process; and
`(B) generates more than 0.5 percent of global greenhouse gas
emissions as of 2010 or as of the most recent year for which data are
available.
`SEC. 720. AVOIDING SIGNIFICANT ECONOMIC HARM.
`(a) In General- Pursuant to the regulations promulgated under this
section, the Administrator may permit affected units--
`(1) to use allowances in a calendar year before the calendar year for
which the allowances were allocated; and
`(2) to increase the use by the affected units of international credits
up to 50 percent of the total annual submission requirements of the affected
units under section 722.
`(1) IN GENERAL- Not later than 3 years after the date of enactment of
this title, the Administrator, in coordination with the Secretary of the
Treasury, shall promulgate regulations requiring the continuous monitoring
of the operation of the carbon market and the effect of that market on the
economy of the United States.
`(2) REQUIREMENTS- The regulations shall--
`(A) establish the criteria for determining whether allowance prices
have reached and sustained a level that is causing or will cause
significant harm to the economy of the United States; and
`(B) take into consideration--
`(i) the obligation of the United States under this subtitle to
stabilize greenhouse gas concentrations in the atmosphere at the safe
climate level; and
`(ii) the costs of the anticipated impacts of climate change in the
United States.
`(3) PREVENTION OF ECONOMIC HARM- If the Administrator determines that
allowance prices have reached and sustained a level that is causing or will
cause significant harm to the economy of the United States, the regulations
shall establish--
`(A) a program under which an affected unit may use allowances in a
calendar year before the calendar year for which the allowances were
allocated, including--
`(i) a requirement that allowances borrowed from the allocation of a
future year reduce the allocation of allowances to the affected unit for
the future year on a 1-to-1 basis;
`(ii) a requirement for payment of interest on borrowed allowances
requiring the submission of additional credits upon repayment of the
allowances equal to the product obtained by multiplying--
`(I) the number of years between the advance use of allowances by
an affected unit under clause (i) and the submission of additional
credits under this clause; and
`(II) the sum obtained by adding--
`(aa) the Federal short-term rate, as defined pursuant to section
1274(d)(1)(C)(i) of the Internal Revenue Code of 1986; and
`(bb) 2 percent; and
`(iii) a limitation that in no event may an affected
unit--
`(I) satisfy more than 10 percent of the obligation of the
affected unit under section 722 to surrender allowances by submitting
allowances in a calendar year before the calendar year for which the
allowances were allocated; and
`(II) use allowances in a calendar year that is more than 5 years
before the calendar year for which the allowances were allocated;
and
`(B) a program under which the owner of an affected unit may satisfy
the obligation of the affected unit under section 722 to surrender
allowances for the calendar year in which the determination is made by
submitting international credits representing up to 50 percent of the
total annual submission requirements of the affected unit.
`SEC. 721. USE AND TRANSFER OF CREDITS.
`(a) Use in Other Greenhouse Gas Allowance Trading Programs-
`(1) IN GENERAL- A credit obtained under this subtitle may be used in
any other greenhouse gas allowance trading program, including a program of 1
or more States or subdivisions of States, that is approved by the
Administrator and an authorized official for the other program for use of
the allowance.
`(2) RECIPROCITY- A credit obtained from another greenhouse gas trading
program, including a program of 1 or more States or subdivisions of States,
that is approved by the Administrator and an authorized official for the
other program may be used in the trading program under this title.
`(b) Allowance Use Before Applicable Calendar Year- Except as provided in
section 720, an allowance auctioned or allocated under this subtitle may not
be used before the calendar year for which the allowance was auctioned or
allocated.
`(1) IN GENERAL- Except as provided in paragraph (2), the transfer of a
credit shall not take effect until receipt and recording by the
Administrator of a written certification of the transfer that is executed by
an authorized official of the person making the transfer.
`(2) SPECIAL RULE FOR ALLOWANCES- Notwithstanding paragraph (1), the
transfer of an allowance auctioned or allocated under this subtitle may take
effect before the calendar year for which the allowance was auctioned or
allocated.
`(d) Banking of Credits- Any affected unit may use a credit obtained under
this subtitle in the calendar year for which the credit was auctioned or
allocated, or in a subsequent calendar year, to demonstrate compliance with
section 722.
`SEC. 722. COMPLIANCE AND ENFORCEMENT.
`(a) In General- For calendar year 2011 and each calendar year thereafter,
the owner of each affected unit shall surrender to the Administrator a
quantity of credits that is equal to the total tons of carbon dioxide or, with
respect to other greenhouse gases, tons in carbon dioxide equivalent,
associated with the combustion by the affected unit of greenhouse gas-emitting
fuels during the calendar year.
`(b) Regulations- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations establishing the
procedures for the surrender of credits.
`(c) Penalty- The owner of an affected unit that emits greenhouse gases
associated with the combustion by the affected unit of a greenhouse
gas-emitting fuel in excess of the number of credits that the owner of the
affected unit holds for use of the affected unit for the calendar year
shall--
`(1) submit to the Administrator 1.3 credits for each metric ton of
excess greenhouse gas emissions of the affected unit; and
`(2) pay an excess emissions penalty equal to the product obtained by
multiplying--
`(A) the number of tons of carbon dioxide, or the carbon dioxide
equivalent of other greenhouse gases, emitted in excess of the total
quantity of credits held by the affected unit; and
`(B)(i) except as provided in clause (ii), $100, as adjusted for
changes beginning on January 1, 2007, in accordance with the Consumer
Price Index for All-Urban Consumers published by the Department of Labor;
or
`(ii) if the average market price for a metric ton of carbon dioxide
equivalent during a calendar year exceeds $60, $200, as adjusted for
changes beginning on January 1, 2007, in accordance with the Consumer
Price Index for All-Urban Consumers published by the Department of
Labor.
`Subtitle B--Offset Credits
`SEC. 731. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR AGRICULTURAL
PRODUCERS.
`(a) Purposes- The purposes of this subtitle are to achieve climate
benefits, reduce overall costs to the United States economy, and enhance
revenue for domestic agricultural producers, foresters, and other landowners
by--
`(1) establishing procedures by which domestic agricultural producers,
foresters, and other landowners can measure and report reductions in
greenhouse gas emissions and increases in sequestration; and
`(2) publishing a handbook of guidance for domestic agricultural
producers, foresters, and other landowners to market emission reductions to
companies.
`(b) Establishment- The Secretary of Agriculture, acting through the Chief
of the Natural Resources Conservation Service, the Chief of the Forest
Service, the Administrator of the Cooperative State Research, Education, and
Extension Service, and land-grant colleges and universities, in consultation
with the Administrator and the heads of other appropriate departments and
agencies, shall establish an outreach initiative to provide information to
agricultural producers, agricultural organizations, foresters, and other
landowners about opportunities under this subtitle to earn new revenue.
`(c) Components- The initiative under this section--
`(1) shall be designed to ensure that, to the maximum extent
practicable, agricultural organizations and individual agricultural
producers, foresters, and other landowners receive detailed practical
information about--
`(A) opportunities to earn new revenue under this subtitle;
`(B) measurement protocols, monitoring, verifying, inventorying,
registering, insuring, and marketing offsets under this title;
`(C) emerging domestic and international markets for energy crops,
allowances, and offsets; and
`(D) local, regional, and national databases and aggregation networks
to facilitate achievement, measurement, registration, and sales of
offsets;
`(A) outreach materials, including the handbook published under
subsection (d)(1), to interested parties;
`(C) technical assistance; and
`(3) may include the creation and development of regional marketing
centers or coordination with existing centers (including centers within the
Natural Resources Conservation Service or the Cooperative State Research,
Education, and Extension Service or at land-grant colleges and
universities).
`(1) IN GENERAL- Not later than 2 years after the date of enactment of
this title, the Secretary of Agriculture, in consultation with the
Administrator and after public input, shall publish a handbook for use by
agricultural producers, agricultural cooperatives, foresters, other
landowners, offset buyers, and other stakeholders that provides easy-to-use
guidance on achieving, reporting, registering, and marketing offsets.
`(2) DISTRIBUTION- The Secretary of Agriculture shall ensure, to the
maximum extent practicable, that the handbook is distributed widely through
land-grant colleges and universities and other appropriate
institutions.
`SEC. 732. OFFSET MEASUREMENT FOR AGRICULTURAL, FORESTRY, WETLANDS, AND
OTHER LAND USE-RELATED SEQUESTRATION PROJECTS.
`(a) In General- Not later than 2 years after the date of enactment of
this title, the Secretary of Agriculture, in consultation with the
Administrator, shall promulgate regulations establishing the requirements
regarding the issuance, certification, and use of offset credits for
greenhouse gas reductions from agricultural, forestry, wetlands, and other
land use-related sequestration projects, including requirements--
`(1) for a region-specific discount factor for business-as-usual
practices for specific types of sequestration projects, in accordance with
subsection (c);
`(2) that ensure that the reductions are real, additional, verifiable,
and enforceable;
`(3) that address leakage;
`(4) that the reductions are not otherwise required by any law
(including a regulation) or other legally binding requirement;
`(5) for the quantification, monitoring, reporting, and verification of
the reductions;
`(6) that ensure that offset credits are limited in duration to the
period of sequestration of greenhouse gases, and rectify any loss of
sequestration other than a loss caused by an error in calculation identified
under this subtitle, by requiring the submission of additional credits of an
equivalent quantity to the lost sequestration; and
`(7) that quantify sequestration flow.
`(b) Eligibility To Create Offset Credits-
`(1) IN GENERAL- A sequestration project that commences operation on or
after January 1, 2011, is eligible to create offset credits under this
subtitle if the sequestration project satisfies the other applicable
requirements of this subtitle.
`(2) EXCEPTION FOR AGRICULTURAL PROJECTS- Notwithstanding paragraph (1),
sequestration flow from an agricultural project that occurs on or after
January 1, 2011, may provide the basis for offset credits under this
subtitle regardless of the date on which the agricultural sequestration
project to which the sequestration flow is attributable commenced, if the
project satisfies the other applicable requirements of this subtitle.
`(c) Discounting for Business-as-Usual Practices-
`(1) IN GENERAL- In order to streamline the availability of offset
credits for agricultural and other land use-related sequestration projects,
the regulations promulgated under subsection (a) shall provide for the
calculation and reporting of region-specific discount factors by the
Secretary of Agriculture--
`(A) to be used by developers of agricultural projects and other land
use-related sequestration projects; and
`(B) to account for business-as-usual practices for specific types of
sequestration projects.
`(2) CALCULATION- Unless otherwise provided in this subtitle, the
region-specific discount factor for business-as-usual practices for
sequestration projects shall be calculated by dividing--
`(A) the difference between--
`(i) the quantity of greenhouse gases sequestered in the region as a
result of the offset practice under this subtitle; and
`(ii) the quantity of greenhouse gases sequestered in the region as
a result of the projected business-as-usual implementation of the
applicable offset practice; by
`(B) the quantity of greenhouse gases sequestered in the region as a
result of the offset practice under this subtitle.
`(A) IN GENERAL- The regulations promulgated under this section shall,
to the maximum extent practicable--
`(i) define geographic regions with reference to land that has
similar agricultural characteristics; and
`(ii) subject to subparagraph (B), define baseline historical
reference periods for each category of sequestration practice, using the
most recent period of sufficient length for which there are reasonably
comprehensive data available.
`(B) EXCEPTION- If the Secretary of Agriculture determines that
entities have increased implementation of the relevant offset practice
during the most recent period in anticipation of legislation granting
credit for the offsets, the regulations described in subparagraph (A)(ii)
may define baseline historical reference periods for each category of
sequestration practice using an earlier period.
`(d) Quantifying Sequestration Flow- The regulations that quantify
sequestration flow shall include--
`(1) a default rate of sequestration flow, regionally specific to the
maximum extent practicable, for each offset practice or combination of
offset practices, that is estimated conservatively to allow for
site-specific variations and data uncertainties;
`(2) a downward adjustment factor for any offset practice or combination
of practices for which, in the judgment of the Secretary of Agriculture,
there are substantial uncertainties in the sequestration flows estimated in
paragraph (1), but still reasonably sufficient data to calculate a default
rate of flow; and
`(3) offset practice- or project-specific measurement, monitoring, and
verification requirements for--
`(A) offset practices or projects for which there are insufficiently
reliable data to calculate a default rate of sequestration flow;
or
`(B) projects for which the project proponent chooses to use
project-specific requirements.
`(e) Use of Native Plant Species in Offset Projects-
`(1) REGULATIONS- Not later than 18 months after the date of enactment
of this title, the Administrator, in consultation with the Secretary of
Agriculture, shall promulgate regulations for selection, use, and storage of
native and nonnative plant materials in the offset projects described in
paragraph (2)--
`(A) to ensure native plant materials are given primary consideration,
in accordance with applicable Department of Agriculture guidance for use
of native plant materials;
`(B) to prohibit the use of Federal- or State-designated noxious
weeds; and
`(C) to prohibit the use of a species listed by a regional or State
invasive plant council within the applicable region or State.
`(2) APPLICABILITY- The regulations under paragraph (1) shall apply to
qualifying offset projects described in sections 733(b)(2), 734(a)(2), and
734(b)(1).
`SEC. 733. CATEGORIES OF AGRICULTURAL OFFSET PRACTICES.
`(a) Regulations- Not later than 2 years after the date of enactment of
this title, the Secretary of Agriculture, in consultation with the
Administrator, shall promulgate regulations establishing the categories of
offset practices that--
`(1) reduce greenhouse gases as a result of agricultural sequestration
projects; and
`(2) are eligible to receive offset credits under this subtitle.
`(b) Offset Practices- Offset practices described in subsection (a) shall
include--
`(1) agricultural sequestration practices, including--
`(A) no-till agriculture;
`(B) conservation tillage (ridge till or minimum till);
`(C) winter cover cropping;
`(D) switching from a cycle of--
`(i) planting wheat or other crops and then fallowing land;
to
`(ii) continuous cropping;
`(E) any other offset practices identified by the Administrator, in
consultation with the Secretary of Agriculture; and
`(F) combinations of any of the offset practices described in
subparagraphs (A) through (E); and
`(2) conversion of cropland to rangeland or grassland.
`SEC. 734. OFFSET CREDITS FROM FOREST MANAGEMENT, GRAZING MANAGEMENT, AND
WETLANDS MANAGEMENT.
`(a) Forest Management Offsets-
`(1) IN GENERAL- Not later than 3 years after the date of enactment of
this title, the Secretary of Agriculture, in consultation with the
Administrator, shall promulgate regulations providing for the issuance of
offset credits for forest management projects that provide durable,
long-term reductions in greenhouse gases as a result of sequestration.
`(2) FOREST MANAGEMENT OFFSETS- Forest management offset projects under
this section may include activities that reduce greenhouse gases as a result
of forest management sequestration projects (including afforestation), other
than avoided forest land conversion as described in section 735.
`(A) IN GENERAL- In accordance with section 732(e), no afforestation
project may involve the planting of invasive species or noxious
weeds.
`(B) EXISTING NATIVE GRASSLAND AND ECOSYSTEMS- No afforestation
project may involve planting trees on existing native grassland or other
existing native non-forested ecosystems that the Secretary of Agriculture
determines should be protected in their existing native
condition.
`(b) Wetlands Management Offsets-
`(1) IN GENERAL- Not later than 3 years after the date of enactment of
this title, the Administrator, in consultation with the Chief of Engineers,
shall promulgate regulations providing for the issuance of offset credits
for wetlands management projects that provide durable, long-term reductions
in greenhouse gases as a result of sequestration.
`(A) IN GENERAL- In accordance with section 732(e), no wetlands
restoration project may involve the planting of invasive species or
noxious weeds.
`(B) NO NEW WETLANDS- No wetlands offset project may be carried out in
an area in which underlying local hydrologic processes will not support a
wetland.
`(c) Grazing Management Offsets-
`(1) IN GENERAL- Not later than 3 years after the date of enactment of
this title, the Secretary of Agriculture, in consultation with the
Administrator, shall promulgate regulations providing for the issuance of
offset credits for grazing management projects that provide durable,
long-term reductions in greenhouse gases as a result of sequestration.
`(2) GRAZING MANAGEMENT OFFSETS- Grazing management offset projects
under this section may include activities that reduce greenhouse gases as a
result of grazing management sequestration projects other than conversion of
cropland to grassland or rangeland under section 733.
`(1) IN GENERAL- For each calendar year, an affected unit may satisfy
not more than 5 percent of the total allowance submission requirements of
the affected unit under section 722 by using forest management offset
credits under this section.
`(2) EXCEPTIONS- The limitation in paragraph (1) does not apply to
grazing management, afforestation, or wetland offset projects.
`SEC. 735. OFFSET CREDITS FROM THE AVOIDED CONVERSION OF FORESTED LAND OR
WETLAND.
`(a) In General- Offset credits for avoided conversion of forested land or
wetland shall be awarded to any State that reduces the conversion below
expected levels for all or a significant portion of the State.
`(b) Regulations- Not later than 3 years after the date of enactment of
this title, the Administrator, in conjunction with the Secretary of
Agriculture, shall promulgate regulations that address the eligibility of
offset practices that avoid the conversion of forested land or wetland to
nonforested land uses or drained or converted wetland to receive offset
credits under this subtitle, including requirements that address--
`(1) the methodology for measuring the avoided conversion of forest land
or wetland, including--
`(A) measurement of presently on-going rates of forest land conversion
or wetland conversion;
`(B) calculation of business-as-usual rates of forest land conversion
or wetland conversion by reference to the historical rate of conversion of
forested land or wetland; and
`(C) comparison of the rates in subparagraph (A) and subparagraph (B);
and
`(2) leakage, including--
`(A) adjustments for leakage using standardized regional leakage
factors for afforestation and wetland restoration; and
`(B) the magnitude of the forested region or wetlands region in a
State in which the rate of conversion of forest land or wetland must be
reduced to ensure that leakage of forest land or wetlands conversion is
minimized.
`(c) Precondition- For an offset to be creditable under this section, the
State must certify that the State has reduced its rate of conversion of forest
land or wetland over a period of 5 or more consecutive years for the entire
State or a significant forested or wetland region in the State.
`(d) Award by States of Offset Credits- States that participate in the
program under this section shall establish transparent and equitable rules by
which offset credits will be awarded to owners of forested land or wetland.
`(e) Authorization of Appropriations- There is authorized to be
appropriated to the Administrator, in consultation with the Secretary of
Agriculture, for use in awarding grants to States to carry out this section
$5,000,000 for each fiscal year.
`SEC. 736. OFFSET CREDITS FROM GREENHOUSE GAS EMISSIONS REDUCTION
PROJECTS.
`(a) In General- Not later than 2 years after the date of enactment of
this title, the Administrator shall promulgate regulations establishing the
requirements regarding the issuance, certification, and use of offset credits
for greenhouse gas emissions reduction offset projects, including
requirements--
`(1) for performance standards for specific types of offset projects,
which represent significant improvements compared to recent practices in the
geographic area, to be reviewed, and updated if the Administrator determines
updating is appropriate, every 5 years;
`(2) that ensure that the reductions are real, additional, verifiable,
enforceable, and permanent;
`(3) that address leakage;
`(4) that the reductions are not otherwise required by any law
(including a regulation) or other legally binding requirement;
`(5) for the quantification, monitoring, reporting, and verification of
the reductions; and
`(6) that specify the duration of offset credits for greenhouse gas
emissions reduction projects under this section.
`(b) Eligibility To Create Offset Credits- Greenhouse gas emissions
reduction offset projects that commence operation on or after January 1, 2007,
are eligible to create offset credits under this subtitle if the projects
satisfy the other applicable requirements of this subtitle.
`(c) Approved Categories of Greenhouse Gas Emissions Reduction Offset
Projects- Greenhouse gas emission reductions from the following types of
operations shall be eligible to create offsets for use under this section:
`(1) Landfill operations.
`(2) Agricultural manure management projects.
`(3) Wastewater treatment facilities.
`(4) Coal mining operations.
`(5) Natural gas transmission and distribution systems.
`(6) Electrical transmission and distribution systems.
`(7) Elimination or reduction in use of chemicals that substitute for
ozone-depleting substances.
`(8) Cement manufacturing.
`(10) Iron and steel production.
`(11) Aluminum production.
`(12) Adipic acid production.
`(13) Nitric acid production.
`(14) Semiconductor manufacturing.
`(15) Magnesium production and processing.
`(16) Fossil fuel combustion at commercial and residential
buildings.
`(d) Creation of Additional Categories of Greenhouse Gas Emissions
Reduction Offset Projects- The Administrator may, by regulation, create
additional categories of greenhouse gas emissions reduction offset projects
for types of projects for which the Administrator determines that compliance
with the regulations promulgated under subsection (a) is feasible.
`(e) Prohibition on Use- Notwithstanding the eligibility of greenhouse gas
emission reduction projects to create offset credits in accordance with
subsection (c) or (d), greenhouse gas emissions reduction offset projects
shall not be eligible to create offset credits for use under this section
beginning on the date on which the reductions are required by law (including
regulations) or other legally binding requirement.
`SEC. 737. BORROWING AT PROGRAM START-UP BASED ON CONTRACTS TO PURCHASE
OFFSET CREDITS.
`(a) In General- During calendar years 2011, 2012, and 2013, an affected
unit may satisfy not more than 5 percent of the allowance submission
requirements of section 722 by submitting to the Administrator contractual
commitments to purchase offset credits that will implement an equivalent
quantity of emission reductions or sequestration not later than December 31,
2015.
`(b) Approval of Qualifying Offset Projects- Offset projects that may be
appropriately carried out under this section shall be approved by the
Administrator in accordance with this subtitle.
`(1) IN GENERAL- If an affected unit uses subsection (a) to comply with
section 722, not later than the deadline in that section for allowance
submissions for calendar year 2015, the affected unit shall submit
additional credits of a quantity equivalent to the sum obtained by
adding--
`(A) the value of credits submitted to comply with credit submission
requirements described in subsection (a); and
`(B) interest calculated in accordance with paragraph (2).
`(2) INTEREST- Interest referred to in paragraph (1)(B) shall be equal
to the product obtained by multiplying--
`(A) the number of years between--
`(i) the use by an affected unit of the method of compliance
described in subsection (a); and
`(ii) the submission by the affected unit of additional credits
under this subsection; and
`(B) the sum obtained by adding--
`(i) the Federal short-term rate, as defined pursuant to section
1274(d)(1)(C)(i) of the Internal Revenue Code of 1986; and
`SEC. 738. REVIEW AND CORRECTION OF ACCOUNTING FOR OFFSET CREDITS.
`(a) Duty To Monitor- The Secretary of Agriculture and the Administrator
shall monitor regularly whether offset credits under the respective
jurisdiction of each agency head under this subtitle are being awarded only
for real and additional sequestration of greenhouse gases and reductions in
greenhouse gas emissions, including--
`(1) the accuracy of default calculations of sequestration flow and
greenhouse gas emission reductions achieved by the use of offset
practices;
`(2) the calculation of region-specific discount factors; and
`(3) the accuracy of leakage calculations.
`(b) Periodic Review- Not later than December 31, 2013, and every 5 years
thereafter, the Secretary of Agriculture and the Administrator shall review
the issuance of offset credits under the respective jurisdiction of each
agency head under this subtitle to determine--
`(1) whether offset credits are being awarded only for real and
additional sequestration of greenhouse gases or reductions in greenhouse gas
emissions, as described in subsection (a);
`(2) the amount of excessive award of any offset credits;
`(3) the volume of offset credits that have been or are expected to be
approved;
`(4) the impact of the offset credits on market prices; and
`(5) the impact of the offset credits on the trajectory of emissions
from affected units.
`(c) Duty To Correct- If the Secretary of Agriculture or the Administrator
determines that offset credits under the respective jurisdictions of the
agency head have been awarded under this subtitle in excess of real and
additional sequestration of greenhouse gases or reductions in emissions of
greenhouse gases, the Secretary of Agriculture or the Administrator shall--
`(1) promptly correct on a prospective basis the sources of the errors,
including correcting leakage factors, region-specific discount factors,
default rates of sequestration flow, and other relevant information for the
offset practices involved; and
`(2) quantify and publicly disclose the quantity of offset credits that
have been awarded in excess of real and additional sequestration or
emissions reductions.
`Subtitle C--National Registry for Credits
`SEC. 741. ESTABLISHMENT AND OPERATION OF NATIONAL REGISTRY.
`(a) In General- Except as provided in subsection (b), not later than July
1 of the year immediately prior to the first calendar year in which an annual
tonnage limitation on the emission of greenhouse gases applies under section
711(b), the Administrator shall promulgate regulations to establish, operate,
and maintain a national registry through which the Administrator shall--
`(1) record allocations of allowances, the issuance of offset credits or
early reduction credits, and the recognition of international credits;
`(2) track transfers of credits;
`(3) retire all credits used for compliance;
`(4) subject to subsection (b), maintain transparent availability of
registry information to the public, including the quarterly reports
submitted under section 742(a);
`(5) prepare an annual assessment of the emission data in the quarterly
reports submitted under section 742(a); and
`(6) take such action as is necessary to maintain the integrity of the
registry, including adjustments to correct for--
`(A) errors or omissions in the reporting of data; and
`(B) the prevention of counterfeiting, double-counting, multiple
registrations, multiple sales, and multiple retirements of
credits.
`(b) Exception to Public Availability of Data-
`(1) IN GENERAL- Subsection (a)(4) shall not apply in any case in which
the Administrator, in consultation with the Secretary of Defense, determines
that publishing or otherwise making available information in accordance with
that paragraph poses a risk to national security.
`(2) STATEMENT OF REASONS- In a case described in paragraph (1), the
Administrator shall publish a description of the determination and the
reasons for the determination.
`SEC. 742. MONITORING AND REPORTING.
`(a) Requirements- Each owner or operator of an affected unit, or to the
extent applicable, the greenhouse gas authorized account representative for
the affected unit, shall--
`(1) comply with the monitoring, recordkeeping, and reporting
requirements of part 75 of title 40, Code of Federal Regulations (or
successor regulations); and
`(2) submit to the Administrator electronic quarterly reports that
describe the greenhouse gas mass emission data, fuel input data, and
electricity output data for the affected unit.
`(b) Biomass Cofiring- Not later than 18 months after the date of
enactment of this title, the Administrator shall promulgate regulations that
provide monitoring, recordkeeping, and reporting requirements for biomass
cofiring at affected units.'.
(b) Conforming Amendments-
(1) FEDERAL ENFORCEMENT- Section 113 of the Clean Air Act (42 U.S.C.
7413) is amended--
(A) in subsection (a)(3), by striking `or title VI,' and inserting
`title VI, or title VII,';
(i) by redesignating paragraphs (1) through (3) as subparagraphs (A)
through (C), respectively, and indenting the subparagraphs
appropriately;
(ii) by striking `The Administrator shall' and inserting the
following:
`(1) IN GENERAL- The Administrator shall';
(iii) in paragraph (1) (as designated by clause (ii)), in the matter
preceding subparagraph (A) (as redesignated by clause (i)), by striking
`or a major stationary source' and inserting `a major stationary source,
or an affected unit under title VII'; and
(iv) in subparagraph (B) (as redesignated by clause (i)), by
striking `or title VI' and inserting `title VI, or title
VII';
(v) in the matter following subparagraph (C) of paragraph (1) (as
designated by clauses (i) and (ii))--
(I) by striking `Any action' and inserting the
following:
`(2) JUDICIAL ENFORCEMENT-
`(A) IN GENERAL- Any action';
(II) by striking `Notice' and inserting the
following:
`(B) NOTICE- Notice'; and
(III) by striking `In the case' and inserting the
following:
`(C) ACTIONS BROUGHT BY ADMINISTRATOR- In the case';
(i) in the first sentence of paragraph (1), by striking `or title VI
(relating to stratospheric ozone control),' and inserting `title VI
(relating to stratospheric ozone control), or title VII (relating to
global warming pollution emission reductions),'; and
(ii) in the first sentence of paragraph (3), by striking `or VI' and
inserting `VI, or VII';
(D) in subsection (d)(1)(B), by striking `or VI' and inserting `VI, or
VII'; and
(E) in subsection (f), in the first sentence, by striking `or VI' and
inserting `VI, or VII'.
(2) 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, any
regulation of solid waste combustion under section 129, or any regulation of
greenhouse gas emissions under title VII, (ii)'.
(3) ADMINISTRATIVE PROCEEDINGS AND JUDICIAL REVIEW- Section 307 of the
Clean Air Act (42 U.S.C. 7607) is amended--
(A) in subsection (a), by striking `, or section 306' and inserting
`section 306, or title VII';
(B) in subsection (b)(1)--
(i) by striking `section 111,,' and inserting `section
111,';
(ii) by striking `section 120,' each place it appears and inserting
`section 120, any action under title VII,'; and
(iii) by striking `112,,' and inserting `112,'; and
(C) in subsection (d)(1)--
(i) by striking subparagraph (S);
(ii) by redesignating the second subparagraph (N) and subparagraphs
(O) through (R) as subparagraphs (O), (P), (Q), (R), and (S),
respectively;
(iii) by redesignating subparagraphs (T) and (U) as subparagraphs
(U) and (V), respectively; and
(iv) by inserting after subparagraph (S) (as redesignated by clause
(ii)) the following:
`(T) the promulgation or revision of any regulation under title
VII,'.
(4) UNAVAILABILITY OF EMISSIONS DATA- Section 412(d) of the Clean Air
Act (42 U.S.C. 7651k(d)) is amended in the first sentence--
(A) by inserting `or title VII' after `under subsection (a)';
and
(B) by inserting `or title VII' after `this title'.
TITLE II--CLIMATE CHANGE RESEARCH INITIATIVES
SEC. 201. RESEARCH GRANTS THROUGH NATIONAL SCIENCE FOUNDATION.
Section 105 of the Global Change Research Act of 1990 (15 U.S.C. 2935) is
amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
`(1) LIST OF PRIORITY RESEARCH AREAS- The Committee shall develop a list
of priority areas for research and development on climate change that are
not being adequately addressed by Federal agencies.
`(2) TRANSMISSION OF LIST- The Director of the Office of Science and
Technology Policy shall submit the list developed under paragraph (1) to the
National Science Foundation.
`(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the National Science Foundation such sums as are necessary
to carry out this subsection, to be made available through the Science and
Technology Policy Institute, for research in the priority areas.'.
SEC. 202. ABRUPT CLIMATE CHANGE RESEARCH.
(a) In General- The Secretary of Commerce, acting through the National
Oceanic and Atmospheric Administration, shall carry out a program of
scientific research on abrupt climate change designed to provide timely
warnings of the potential likelihood, magnitude, and consequences of, and
measures to avoid, abrupt human-induced climate change.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Commerce such sums as are necessary to carry
out this section.
SEC. 203. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.
(a) In General- The Administrator of the Environmental Protection Agency
shall carry out a program to develop, with technical assistance from
appropriate Federal agencies, innovative standards and measurement
technologies to calculate greenhouse gas emissions or reductions for which no
accurate, reliable, low-cost measurement technology exists.
(b) Administration- The program shall include technologies (including
remote sensing technologies) to measure carbon changes and other greenhouse
gas emissions and reductions from agriculture, forestry, wetlands, and other
land use practices.
(c) Authorization of Appropriations- There are authorized to be
appropriated to the Administrator such sums as are necessary to carry out this
section.
SEC. 204. TECHNOLOGY DEVELOPMENT AND DIFFUSION.
(a) In General- The Director of the National Institute of Standards and
Technology, acting through the Manufacturing Extension Partnership program,
may develop a program to promote the use, by small manufacturers, of
technologies and techniques that result in reduced emissions of greenhouse
gases or increased sequestration of greenhouse gases.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Director of the National Institute of Standards and
Technology such sums as are necessary to carry out this section.
SEC. 205. PUBLIC LAND.
(a) In General- Not later than 3 years after the date of enactment of this
Act, the Secretary of Agriculture and the Secretary of the Interior shall
prepare a joint assessment or separate assessments setting forth
recommendations for increased sequestration of greenhouse gases and reduction
of greenhouse gas emissions on public land that is--
(2) managed rangeland or grassland; or
(3) protected land, including national parks and designated wilderness
areas.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Agriculture and the Secretary of the Interior
such sums as are necessary to carry out this section.
SEC. 206. SEA LEVEL RISE FROM POLAR ICE SHEET MELTING.
(a) In General- The Secretary of Commerce, acting through the National
Oceanic and Atmospheric Administration and in cooperation with the
Administrator of the National Aeronautics and Space Administration, shall
carry out a program of scientific research to support modeling and
observations into the potential role of the Greenland, west Antarctic, and
east Antarctic ice sheets in any future increase in sea levels.
(b) Authorization of Appropriations- There are authorized to be
appropriated to the Secretary of Commerce and the Administrator of the
National Aeronautics and Space Administration such sums as are necessary to
carry out this section.
END